Naval Sea Systems Command Awards Leidos $291 Million Follow-On Contract

Rhea-AI Summary

Leidos (NYSE: LDOS) has been awarded a follow-on contract worth approximately $291 million by the Navy's Program Executive Office Integrated Warfare Systems Directorate. This cost-plus-fixed-fee contract includes a one-year base period with four one-year options. Leidos will provide various support services, including shipboard modernization and training. The company is committed to enhancing its long-standing partnership with the Navy, focusing on mission-critical modernization initiatives.

Positive

• Award of a $291 million follow-on contract with the Navy, indicating trust and a strong partnership.
• Potential for contract expansion through four additional one-year option periods, ensuring ongoing revenue.

Negative

• None.

RESTON, Va., July 19, 2022 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE® 500 science and technology leader, was recently awarded a follow-on contract to support the Navy's Program Executive Office Integrated Warfare Systems Directorate. The single award, cost-plus-fixed-fee contract holds an approximate value of $291 million. It includes a one-year base period of performance with four additional one-year option periods. Work will be performed worldwide.  

"We are honored to continue our long-standing relationship with PEO IWS," said Will Johnson, Leidos Senior Vice President, Logistics and Mission Support. "This award will enable Leidos to accelerate our support of their critical mission through modernization, domain expertise and innovation."

Through this contract, Leidos will perform a range of support services, including shipboard modernization, curriculum development, training conduct, depot support, technical data, maintenance planning and management.

Headquartered in Washington D.C., the Program Executive Office Integrated Warfare Systems Directorate develops, delivers and sustains operationally dominant combat systems for the U.S. Navy.

About Leidos
Leidos is a Fortune 500® technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil and health markets. Leidos' 43,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $13.7 billion for the fiscal year ended December 31, 2021. 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, further delays in our performance under the DES contract, including due to protests at the United States Court of Federal Claims, costs associated with intervening in and defending against further protests and any delays associated with such protests or any resulting corrective action, loss of the DES contract award, further award delays, including due to protests at the United States Court of Federal Claims, costs associated with defending against protests and any associated delays, loss of the contract award, and the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 31, 2021, 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
Melissa.L.Duenas@leidos.com 

Thomas Doheny
(571) 474-4735
Dohenyt@leidos.com

Jalen Drummond
(571) 992-5046
Jalen.Drummond@leidos.com

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SOURCE Leidos Holdings, Inc.

FAQ

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

Leidos has been awarded a contract valued at approximately $291 million.

What services will Leidos provide under the new Navy contract?

Leidos will provide shipboard modernization, training, and technical support services.

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

The contract includes a one-year base period with four additional one-year options.

Which department awarded the contract to Leidos (LDOS)?

The contract was awarded by the Navy's Program Executive Office Integrated Warfare Systems Directorate.

How does the new contract impact Leidos' revenue?

The new contract is expected to contribute significantly to Leidos' revenue, with the potential for additional work in the future.