Supplier and Small Business Relationships


Ethics & Corporate Responsibility

Supplier and Small Business Relationships

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Suppliers and Small Business Relationships

We are united with our suppliers and small businesses to make a difference in the world.

GRI™ G4 Indicators reported in this section:

General Standard Disclosures

Specific Standard Disclosures
LA: 14-15

Maintaining strong and committed relationships with approximately 12,000 suppliers, as well as continuing our award-winning small businesses advocacy programs, is essential to our mission of providing outstanding support to our customers.


Our diverse customer base and requirements for services and materials require us to work with suppliers both large and small who can offer capabilities and unique solutions while providing the best value to us and our customers.

Abiding by the highest standards of business ethics is an essential component of all of our supplier relationships. When purchasing direct-charge, non-commercial items or services, Leidos buyers are required to apply Federal Acquisition Regulation (FAR) clauses appropriate to the contract. Supplier compliance is mandated with certain regulations and laws, including clauses that address:

  • Gratuities
  • Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity
  • Price or Fee Adjustment for Illegal or Improper Activity
  • Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009
  • Utilization of Small Business Concerns
  • Notice to the Government of Labor Disputes
  • Equal Opportunity (Only Paragraphs (b)(1) through (c)(11)
  • Combating Trafficking in Persons
  • Hazardous Material Identification and Material Safety Data
  • Contractor Policy to Ban Text Messaging While Driving
  • Conflict Minerals Policy

Leidos is regularly solicited by our customers to complete supplier questionnaires. These questionnaires are part of supply chain sustainability programs that our customers are operating in an effort to improve their own sustainability. By complying, we provide valuable information on our environmental performance, but also a wide range of sustainability areas, including human rights, fair labor practices and health and safety issues.

Supplier Selection

Our supplier selection criteria are based on specific customer requirements, with an emphasis on suppliers that offer strategic and competitive pricing, quality products and services, focus on continuous improvement and commitment to performance in delivery of goods or services.

Our suppliers are reminded of our commitment to conduct business with uncompromising integrity. This commitment is clearly established in the Code of Conduct. Leidos requires suppliers to conduct themselves in a manner consistent with the principles of our Code of Conduct. In addition, we strongly encourage our suppliers to establish proactive and meaningful ethics and compliance programs within their organizations. We want our suppliers to understand, foster, and mirror the ethical conduct we expect from our employees in all business transactions.

Supplier Diversity

Leidos is committed to small businesses that provide affordable and relevant products and services. We continue to work closely with small businesses as part of our ongoing and award-winning mentor-protégé program, which we view as an integral part of our small business development strategy.

In an effort to increase our supplier diversity and better manage and leverage our spend, we have enhanced our Strategic Sourcing program. The goal of the Strategic Sourcing program is to actively manage Leidos’ 3rd party spend, identify and expand supplier segmentation, and strategically source core business expenses. Over the past year, Leidos Strategic Sourcing has placed an emphasis on establishing or re-validating over 4 dozen Enterprise Supplier Pricing Agreements in major commodity areas such as IT hardware, software, communications, freight, parcel, and office supplies. These agreements not only ensure preferred pricing and negotiated terms and conditions, but also ensure the use of fully vetted suppliers with track records of acceptable quality and performance. Through our supplier segmentation efforts, Leidos maintains a vetted number of suppliers that will enable us to quickly and cost effectively source quality products and services. Leidos aims to provide a diverse number of suppliers to compliment our goals of supporting the various categories of small businesses.

Due to the nature of our business, we are not able to restrict our sourcing needs to local suppliers and vendors.

Leidos understands the tremendous drive, experience and unique skills veterans contribute. Our commitment to veteran-owned firms reflects the innovation and value they deliver to our company and our customers. Helping veteran-owned firms succeed and grow also advances our goal of helping veterans transition successfully to the civilian workforce.

Small Businesses

Leidos has a proud history of providing maximum opportunities for small businesses to engage with us as we support our customers in the vital areas of National Security, Health, and Engineering. The commitments we have made to our customers in supporting the Nation's small business program are key to distinguishing us as a small business advocacy leader.

We work closely with all categories of small businesses, including small disadvantaged, women-owned, veteran-owned, service-disabled veteran-owned and historically underutilized business zone (HUBZone) companies, as well as historically black colleges and universities and minority institutions (HBCU/MIs). We continue to exceed the statutory goals for small disadvantaged, women-owned and service-disabled veteran-owned small businesses. As we continue with the forward progress made since our company separated in 2013, we do so while remembering that our success is strengthened by our legacy of commitment to small business engagement.

During government fiscal year 2016, Leidos awarded over $922 million in contracts to small businesses and our Small Business Program currently holds a rating of "Highly Successful" by the Defense Contract Management Agency (DCMA). These statistics illustrate the importance of small businesses to Leidos success, customer success and the dedication of Leidos Small Business Development Program to promoting strategic teaming with a variety of small businesses.

Leidos small business approach has three main areas of focus:

  • Performing proactive marketing and outreach activities through our Small Business Development Program
  • Fostering strategic relationships with small businesses that lead to subcontracting and prime contracting opportunities
  • Providing training and business development assistance to small businesses - particularly minority-, women- and veteran-owned small businesses - to help them acquire the tools to grow and succeed.

Leidos has been recognized for well over a decade for its outstanding efforts and work with small businesses of all categories. Notable recognition in recent years includes well over 30 awards that include prestigious Small Business Administration (SBA) awards such as: the Dwight D. Eisenhower Award and the Frances B. Perkins Award; DoD's Nunn-Perry Awards for outstanding mentor-protégé performance; and NASA's Large Business Prime Contractor of the Year Award by NASA Small Business Programs, Marshall Space Flight Center award. Please see the list below for additional Leidos awards and recognitions.

Award Sponsor Year(s) Recognition
Eisenhower Award Small Business Administration (SBA) 2011, 2007, 2001 Recognition of Leidos' excellence in working with small businesses.
Small Business Partner Small and Emerging Contractors Advisory Forum (SECAF) 2011 Recognizing Leidos as a Small Business Partner of the year over $100 million in revenues.
Nunn-Perry Mentor-Protégé Award Department of Defense (DoD) 2014, 2012, 2011, 2008, 2007*, 2006*, 2004*, 2003, 2002, 2000, 1999, and 1997
*In 2004, 2006 and 2007, Leidos was a multiple award winner recognized for outstanding performance under two separate agreements.
Recognition of Leidos' exemplary performance in mentor/protégé arrangements under DoD program (see past award winners on the DoD Office of Small Business Programs website).
Frances Perkins Vanguard Award Small Business Administration (SBA) 2010, 2004, 2002 Recognition of Leidos' commitment to working with women-owned small businesses.
Mentor-Protégé Team of the Year Award Department of Homeland Security (DHS) 2010 Recognition of Leidos' exemplary performance in mentor-protégé arrangements under the DHS program.
Corporate Achievement Award Department of Veterans Affairs Center for Veteran Enterprise 2008, 2007 Recognition of Leidos' exemplary performance in exceeding subcontracting goals for Service-Disabled Veteran-Owned Businesses.
Best Corporations for Veteran-Owned Businesses Veteran Business Journal 2010, 2008, 2007, 2006, 2005 Recognition of Leidos' exemplary performance in working with veteran and service-disabled veteran-owned small businesses.
Champions of Veterans Enterprise Award National Veteran Small Business Coalition (NVSBC) 2014, 2013, 2012, 2011 Honored 25 companies for exemplary commitment to working with veteran-owned SB’s. Leidos exceeded the 3% mandated subcontracting goal for service-disabled veteran-owned small businesses.
Best Corporations for Veteran-Owned Businesses National Veteran-Owned Business Associations (NaVOBA) 2014, 2012, 2010, 2008, 2007, 2006, 2005 Recognition of Leidos’ commitment in working with veteran-owned small businesses.
Large Business Prime Contractor of the Year NASA Goddard Space Flight Center 2008 Recognition for significant contributions to NASA's small business program.
Large Business Prime Contractor of the Year NASA Marshall Space Flight Center 2012, 2011, 2008 Recognition for significant contributions to NASA's small business program.
White House Initiative for HBCUs Corporate Honoree Department of Education 2007 Recognition of Leidos's exemplary performance in working with HBCUs.
Certificate of Achievement Department of State 2006 Recognition of Leidos' accomplishments of small business goals during Government Fiscal Year 2005.
Certificate of Achievement Department of Justice 2006 Recognition of Leidos' accomplishments of small business goals during Government Fiscal Year 2005.
Distinguished Supplier Diversity Award Department of Commerce 2003 Recognition of Leidos' support of the Minority Business Development Agency's objectives.
Parren J. Mitchell Award for Minority Business Development Minority Business & Professionals Network (MBPN) 2000 Award was presented to George Otchere for leadership in Minority business development in the Nation.

Outreach Activities

Leidos participates in a variety of outreach programs that provide opportunities to introduce to small businesses in every socio-economic category. We host numerous small business events at our facilities to bring in small businesses interested in teaming opportunities as well as specific subcontracting opportunities. These “matchmaking” forums have been extremely successful, with Leidos business developers, program managers, and procurement personnel meeting with small businesses to receive capability briefings and discuss active opportunities.

Similarly, Leidos holds similar events for specific major programs and proposals. We frequently participate in industry and customer small business events that enable small businesses to find out about opportunities with Leidos. Over the years, we have participated in numerous events and forums sponsored by various federal agencies, including the Department of Defense, the SBA, and industry associations such as the National Defense Industrial Associate (NDIA), Armed Forces Electronics Association (AFCEA) and others.

Finally, Leidos hosts numerous small business events at its facilities to bring in small businesses interested in teaming opportunities as well as specific subcontracting opportunities. These matchmaking forums have been extremely successful with Leidos business developers, program managers, and procurement personnel meeting with small businesses to receive capability briefings and discuss active opportunities. Similarly, Leidos holds similar events for specific major programs and proposals.

Mentor-Protégé Program

Leidos was one of the first contractors to be selected for DoD's pilot Mentor-Protégé Program in 1991. Since that time, Leidos formally mentored nearly 100 small businesses and is one of the most active participants in the federal agency program, including maintaining mentor-protégé agreements with agencies such as the Department of Army, Department of Health and Human Services (HHS), and the National Geospatial-Intelligence Agency (NGA). At a minimum, Leidos provides the following to all protégés:

  • Training and Assistance: Training and direct assistance in program management, human resources, contract administration, and finance. Assistance in creating and printing marketing material, development and implementation of marketing strategies, implementation of disciplined bid/no-bid processes, and proposal training.
  • Technology Transfer and Certifications: Transfer of state-of-the art products/service improvement processes that support the customer. Facilitation of training unique to the protégé's needs. Assistance to some protégés in obtaining key technical certifications (e.g., ISO 9000 and SEI-CMMI certification).
  • Business Development: Joint marketing, preferred subcontracting status on current and future Leidos prime contracts, and introduction to new customers and markets.

In addition to formal agreements, Leidos informally mentors many small businesses by providing assistance in the areas of joint marketing, task order response, human resources (HR), technology transfer, and administrative efforts. This approach helps develop our small business teammates while ensuring the highest levels of technical and programmatic performance.

Veteran Owned Small Businesses

Leidos is an active supporter and sponsor of numerous veteran targeted events, which is not surprising considering more than 20% of Leidos' employees are veterans themselves. Leidos maintains a program aimed at enhancing the growth of Veteran-Owned Small Businesses (VOSBs) of all types in the government contracting arena through cooperative efforts with veteran advocacy bodies. Over the past five years, Leidos efforts to expand subcontracting to VOSBs have produced significant growth.