NGA awards Leidos $86 million analytics systems management contract

Rhea-AI Summary

Leidos (NYSE:LDOS) has been awarded an $86.4 million contract by the National Geospatial-Intelligence Agency (NGA) for lifecycle management of existing and emerging analytics systems. The single-award, indefinite delivery, indefinite quantity (IDIQ) contract, named Chinook, has a five-year performance period. Leidos will provide software development, systems engineering, integration, and operations and sustainment services for various systems including Commercial-Joint Mapping Tool Kit and Tearline open-source intelligence system. The company will employ DevSecOps practices and Zero Trust cybersecurity methodologies to maintain and enhance these systems, supporting NGA's geospatial intelligence analysts in their mission-critical tasks.

Positive

• Secured a significant $86.4 million contract with NGA
• Five-year performance period provides long-term revenue stability
• Strengthens existing relationship with NGA, a key government client
• Expands Leidos' presence in the geospatial intelligence sector

Negative

• None.

Insights

Financial Analyst

The $86.4 million contract awarded to Leidos by the NGA represents a significant win for the company's National Security Sector. This $86.4 million ceiling value, spread over a five-year period, translates to an average of $17.28 million per year, potentially boosting Leidos' annual revenue. While the impact may be modest relative to Leidos' $14.4 billion revenue in 2022, it strengthens their position in the geospatial intelligence market.

The IDIQ nature of the contract provides flexibility but also uncertainty, as the actual value depends on task orders issued. Investors should monitor the execution of this contract and its contribution to Leidos' backlog and revenue growth in the coming quarters. The contract's focus on emerging analytics systems aligns with the growing importance of data analytics in national security, potentially opening doors for future opportunities in this sector.

Tech Expert

Leidos' involvement in managing critical geospatial intelligence systems showcases their technological prowess in handling complex, mission-critical software. The mention of DevSecOps practices and Zero Trust cybersecurity methodologies indicates Leidos' commitment to modern, secure software development. This approach is important for government contracts, especially in sensitive areas like national security.

The contract's scope, covering systems like the Commercial-Joint Mapping Tool Kit and Advanced Analyst Augmentation Analytical Cloud Enablement System, positions Leidos at the forefront of geospatial analytics innovation. Their role in sustaining and evolving these systems could lead to valuable intellectual property and expertise, potentially applicable to other sectors beyond government contracts. This technological edge could be a key differentiator for Leidos in future contract bids.

RESTON, Va., Aug. 14, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS), a Fortune 500® innovation leader, was recently awarded a contract by the National Geospatial-Intelligence Agency's (NGA) Integrated Program Office for Analysis for lifecycle management of existing and emerging analytics systems. The single award, indefinite delivery, indefinite quantity (IDIQ) contract, referred to as Chinook, has a ceiling value of $86.4 million, if all task orders are exercised over a five-year period of performance.

"Geospatial intelligence analysts use a spectrum of tools and need them to perform to support their missions," said Roy Stevens, Leidos National Security Sector President. "Building on our longstanding relationship with NGA, we are committed to sustaining and evolving these analysis systems for ongoing decision advantage."

Under Chinook, Leidos will provide software development, systems engineering, integration, and operations and sustainment services. The systems supported under this task order include Commercial- Joint Mapping Tool Kit, Target Coordinate Mensuration Validation, Advanced Analyst Augmentation Analytical Cloud Enablement System, and the Tearline open-source intelligence system. Leidos uses DevSecOps software development practices and Zero Trust cybersecurity methodologies to sustain and continuously improve the systems.

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. 

Approved for public release, NGA-U-2024-01531.

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.

Media Contacts:

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

Greg Hellman
(571) 526-7592
greg.hellman@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What is the value of the Chinook contract awarded to Leidos (LDOS) by NGA?

The Chinook contract awarded to Leidos (LDOS) by NGA has a ceiling value of $86.4 million if all task orders are exercised over the five-year period of performance.

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

Under the Chinook contract, Leidos (LDOS) will provide software development, systems engineering, integration, and operations and sustainment services for NGA's existing and emerging analytics systems.

Which systems will Leidos (LDOS) support under the NGA Chinook contract?

Leidos (LDOS) will support systems including Commercial-Joint Mapping Tool Kit, Target Coordinate Mensuration Validation, Advanced Analyst Augmentation Analytical Cloud Enablement System, and the Tearline open-source intelligence system under the NGA Chinook contract.

What methodologies will Leidos (LDOS) use in the NGA Chinook contract?

Leidos (LDOS) will use DevSecOps software development practices and Zero Trust cybersecurity methodologies to sustain and continuously improve the systems under the NGA Chinook contract.