Leidos’ DES contract win, largest in company history, is upheld by the GAO
(RESTON, Va.) June 22, 2022 – Leidos (NYSE: LDOS), a FORTUNE® 500 science and technology leader, announced today that the Defense Enclave Services (DES) contract awarded by the Defense Information Systems Agency (DISA) was upheld by the Government Accountability Office (GAO) after a thorough and disciplined review. The single-award, indefinite delivery, indefinite quantity contract was initially awarded in February 2022 and holds a total estimated value of $11.5 billion if all options are exercised. It includes a four-year base period of performance followed by three two-year option periods.
“We are pleased the Government Accountability Office has affirmed the Defense Information Systems Agency’s award,” said Gerry Fasano, Leidos Defense Group President. “Leidos is deeply committed to DISA’s critical mission, and never stopped preparing for the program’s success. Our robust and continuous preparation has positioned us to start delivering benefits to the user base on or ahead of the current planned schedule, and we look forward to leveraging our decades of technological expertise to support mission success.”
Through the DES contract, Leidos will support DISA’s mission by consolidating enterprise IT services at a global scale and by providing standardized, responsive and cost-effective solutions. The program involves a wide range of IT services for more than 370,000 users spanning 22 Department of Defense (DoD) agencies and field activities with over 500 sites both in the U.S. and abroad. This work will focus on mission value and user experience, while improving cybersecurity, network availability, and reliability for Fourth Estate agencies.
DISA is headquartered at Fort George G. Meade in Maryland and supports joint warfighters, national level leaders, and other mission and coalition partners across the full spectrum of military operations with information sharing capabilities, command and control solutions and global enterprise infrastructure.
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.