Leidos takes out incumbent for $2.9B NASA IT contract

Leidos has taken out an incumbent to win a potential 10-year, $2.9 billion contract for end-user IT services to NASA that include the supply and management of hardware, software, mobile devices and other accessories.

Also known as “NEST,” the NASA End-user Services & Technologies contract is intended to help establish a long-term outsourcing arrangement with a company that can help the agency manage its IT environment and supporting infrastructure.

NASA said Thursday the contract two-year, three-month base period followed by a two-year option, one-year option, and five one-year award term options that would extend the period of performance to May 31, 2029.

NEST is the follow-on to the current Agency Consolidated End-User Services contract known as “ACES” and held by incumbent Perspecta. The company inherited the work from one of three predecessor businesses that merged in June to create what is now Perspecta.

In October of last year, the agency extended ACES for another three years in a move that brings the contract to its full 10-year term. ACES expires on Oct. 31, 2021, according to Deltek data.

NEST contributes about $120 million in annual sales to Perspecta, according to a November report from Cowen & Co.’s Lucy Guo, an equity research analyst specializing in government services.

Perspecta opened for business at around $4.2 billion in revenue when adding up sales from its predecessor businesses: the former DXC Technology U.S. public sector arm, Vencore and KeyPoint Government Solutions.

The NASA Shared Service Center manages NEST as part of its overall responsibility to oversee business activities for all centers in areas such as financial management, human resources, enterprise IT, procurement and business support services.