Leidos keeps $6.5B DISA info grid contract

Leidos clears its second major recompete hurdle in as many weeks by capturing the contract to help DISA run a large global information network.

Leidos has kept its incumbency on a Defense Information Systems Agency contract to manage a key U.S. military global information and telecommunications network.

DISA's Global Solutions Management Operations II contract has a $6.52 billion ceiling value over up to 10 years that include a five-year base period, a pair of two-year options and a final one-year option. The agency received three bids in total for the contract, according to the Defense Department's Tuesday awards digest.

GSM-O II is a recompete of a contract Leidos gained in 2016 through its merger with the former Lockheed Martin IT services business that first won the work in 2012.

"As the incumbent, we look forward to continuing the important work of operating and maintaining the global Defense Information System Network for stakeholders that range from warfighters to government leadership in countries around the world," Leidos said in a statement to WT.

This contract supports the Global Information Grid, a series of interconnected networks and computer systems. GIG essentially functions as the backbone of the military's command and control systems.

Perspecta had filed a pre-award protest against its exclusion from the recompete but withdrew that challenge after the company was notified it was back in. A post-award protest is very possible given the size and scope of the contract.

GSM-O II has been closely watched by analysts given its size and scope amid ongoing consolidation in the government services market, including the creation of Leidos as the market knows it today. Analysts also noted the fact that it was one of two major recompetes Leidos had on the horizon for this year that represented close to 8 percent of its revenue, or 4 for percent each contract.

Late last week, a joint venture with Leidos as a key partner won a potential $4 billion Energy Department contract for restoration services at a former nuclear fuel production site in Washington state.

The joint venture currently working at the Hanford site is 88-percent owned by Leidos with Centerra Group as the other partner. Both companies are also involved in the joint venture that includes Parsons Corp.