National Institutes of Health awards Leidos eRA agile software development contract

Rhea-AI Summary

Leidos (NYSE: LDOS) has been awarded the eRA Agile Software Development Support contract by the National Institutes of Health (NIH), with a maximum value of $326.5 million over five years if all options are exercised. The contract involves providing agile software development and design services to support eRA and other NIH Office of Extramural Research systems.

Leidos will leverage its expertise to deliver a modern, efficient, and secure grants management platform for NIH and various agencies. The contract includes developing and maintaining eRA, NIH's customized enterprise-wide grants management system, which handles over $40 billion annually in research and non-research grants for more than 62,000 institutions worldwide.

Positive

• Awarded a contract with a maximum value of $326.5 million over five years
• Continuing long-term partnership with NIH since 2008
• Opportunity to support the world's largest grants management system
• Involvement in managing over $40 billion annually in research and non-research grants

Negative

• None.

Insights

Financial Analyst

The $326.5 million contract awarded to Leidos by the NIH is a significant win for the company. This five-year agreement provides a stable revenue stream and strengthens Leidos' position in the government technology sector. The contract's focus on modernizing the world's largest grants management system showcases Leidos' expertise in agile software development and AI-assisted secure development. This aligns well with the growing demand for advanced technological solutions in government agencies.

Investors should note that this contract reinforces Leidos' long-standing relationship with NIH, dating back to 2008. Such continuity demonstrates the company's ability to retain high-value clients and secure follow-on contracts. The $40 billion in annual research grants managed through this system underscores the critical nature of the work, potentially leading to future opportunities in related fields. While positive, this contract alone may not significantly impact Leidos' overall financial performance, given the company's $14.4 billion revenue in 2022.

Tech Expert

Leidos' role in maintaining and enhancing the eRA system presents both opportunities and challenges. The system's scale - managing grants for over 62,000 institutions worldwide - requires robust, scalable architecture. Leidos' focus on AI-assisted secure agile development is important for handling this complexity while ensuring data integrity and system security.

The contract's emphasis on continuous modernization aligns with best practices in software development. However, updating a system of this magnitude without disrupting ongoing operations will be a significant technical challenge. Leidos' success in this project could position them as a leader in large-scale, mission-critical government IT systems. The inclusion of multiple agencies beyond NIH in using this system also presents opportunities for Leidos to expand its footprint in federal IT contracts. This project could serve as a showcase for Leidos' capabilities in handling complex, multi-stakeholder software development projects.

RESTON, Va., Aug. 15, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS), a Fortune® 500 innovation leader, was recently awarded the eRA Agile Software Development Support contract by the National Institutes of Health (NIH). Leidos will provide a range of agile software development and design services to support eRA and other NIH Office of Extramural Research systems. The contract has a maximum value of $326.5 million over five years, if all options are exercised.

"As the largest grants management system in the world, eRA requires continuous modernization and maintenance to sustain the work of tens of thousands of researchers and institutions worldwide," said Liz Porter, Leidos Health & Civil Sector President. "Since 2008, Leidos has worked with NIH to enhance its modernization efforts, establishing it as a center of excellence in grants management and agile development across the federal government. We look forward to continuing to advance the agency's mission of improving human health through innovative technology, innovation, and biomedical discoveries."

Leidos will leverage its mission software and AI-assisted secure agile development expertise to continue delivering a modern, efficient, and secure grants management platform for NIH and grantor agencies, applicants, and recipients.

The contract includes developing and maintaining eRA, NIH's customized enterprise-wide grants management system. eRA is an end-to-end electronic system used by applicants and grantees to apply for, evaluate, award, manage, track, and close out more than $40 billion each year in research and non-research grants at more than 62,000 institutions worldwide. This framework for research grant administration works to ensure scientific integrity, public accountability, and effective stewardship for NIH grants as well as the Agency for Healthcare Research and Quality, Centers for Disease Control and Prevention, U.S. Food and Drug Administration, Substance Abuse and Mental Health Services Administration, U.S. Department of Veterans Affairs, and U.S. Department of Commerce.

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 48,000 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:         

Alyssa Pettus
(571) 526-6743
alyssa.t.pettus@leidos.com

Brandon Ver Velde
(571) 526-6257
brandon.p.vervelde@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

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

The NIH eRA contract awarded to Leidos (LDOS) has a maximum value of $326.5 million over five years, if all options are exercised.

What services will Leidos (LDOS) provide under the NIH eRA contract?

Leidos (LDOS) will provide agile software development and design services to support eRA and other NIH Office of Extramural Research systems.

How much in grants does the eRA system manage annually?

The eRA system manages over $40 billion annually in research and non-research grants for more than 62,000 institutions worldwide.

When did Leidos (LDOS) start working with NIH on modernization efforts?

Leidos (LDOS) has been working with NIH on modernization efforts since 2008, as mentioned in the press release.