Leidos selected for Army National Guard aviation training contract

Rhea-AI Summary

Leidos (LDOS) secures a $13.7 million prime contract for aviation training services with the Army National Guard, aiming to enhance readiness.

Insights

Defense Industry Analyst

The contract awarded to Leidos for aviation training services and operational support represents a strategic enhancement to its portfolio within the defense sector. The value of $13.7 million, while not transformative for a company of Leidos' size, is indicative of the firm's competitive positioning in securing government contracts. This development is a reflection of the company's commitment to expanding its service offerings in the defense and aerospace domain.

For stakeholders, the implications of this contract are twofold. In the short term, it may not significantly alter the financial landscape of Leidos, given its relative scale. However, in the long term, the accumulation of such contracts can contribute to a steady revenue stream and bolster the company's reputation as a reliable service provider, potentially leading to more lucrative opportunities. It's also a testament to Leidos' capabilities in aviation, a sector that demands high levels of expertise and security clearance. This could act as a catalyst for future contracts, both in terms of size and strategic importance.

Military Procurement Expert

From a procurement perspective, the cost-plus-award-fee structure of the contract is noteworthy. This model incentivizes Leidos to meet or exceed performance objectives, as the award fee is contingent upon their performance evaluation by the Army National Guard. Such contracts are common in the defense industry, as they balance risk between the contractor and the government and are often used in contexts where performance cannot be precisely measured in advance.

While the contract itself may not be large enough to impact Leidos' stock in the immediate sense, it's a marker of the company's alignment with current defense expenditure trends. The focus on training and readiness is a priority for the military and Leidos' involvement in this area could signal its potential to tap into the growing market for defense training and simulation, which is becoming increasingly important in a time of budget constraints and a focus on operational efficiency.

RESTON, Va., April 9, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS), a Fortune® 500 innovation company, recently was awarded a new prime contract to perform aviation training services and operations support for the Army National Guard. The cost-plus-award-fee contract has a one-year period of performance and an approximate value of $13.7 million.

"We're pleased to work with the Army National Guard to support aviation training and operations," said Tim Freeman, Leidos senior vice president and airborne systems business area lead. "The National Guard is one of the nation's oldest institutions, always prepared to protect and defend our country. We look forward to leveraging our aviation experience and expertise to further enhance the National Guard's readiness advantage."

"Army National Guard Aviation is excited about this new opportunity to join our highly professional Aviation training force with the experience and professionalism that Leidos brings to the fight," said COL A.C. Schilleci, Army National Guard chief aviation and safety division. "As we begin to shape and transition our training programs to support Large Scale Combat Operations in the multi-domain operational environment, we believe Leidos maintains the capabilities to meet our specific requirements."

Leidos will provide support of aviation institutional training for officers and enlisted personnel. This includes flight and simulation training, classroom instruction and information technology support. The company will also support the One Army School System (OASS) integration and provide Aviation Life Support Equipment (ALSE) maintenance.

About Leidos

Leidos is a Fortune 500® innovation company rapidly addressing the world's most vexing challenges in national security and health. The company's global workforce of 47,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. For more information, visit www.leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 29, 2023, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Contact:	Melissa Dueñas
	(571) 526-6850
	duenasml@leidos.com
	Alyssa Pettus
	(571) 526-6743
	Alyssa.t.pettus@leidos.com
	Brandon VerVelde
	(571) 526-6257
	Brandon.p.vervelde@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What contract did Leidos (LDOS) recently secure?

Leidos (LDOS) recently secured a prime contract to perform aviation training services and operations support for the Army National Guard.

What is the approximate value of the contract awarded to Leidos (LDOS)?

The contract awarded to Leidos (LDOS) has an approximate value of $13.7 million.

Who is the senior vice president and airborne systems business area lead at Leidos (LDOS)?

Tim Freeman is the senior vice president and airborne systems business area lead at Leidos (LDOS).

What is the duration of the contract awarded to Leidos (LDOS)?

The contract awarded to Leidos (LDOS) has a one-year period of performance.

What is the focus of the contract awarded to Leidos (LDOS) with the Army National Guard?

The focus of the contract awarded to Leidos (LDOS) is to provide aviation training services and operations support for the Army National Guard.