Leidos wins $7.9 billion US Army information technology contract

Editor’s note: This article was updated Sept. 20, 2023, to include additional information from Leidos.

WASHINGTON — Leidos will provide the U.S. Army with tens of thousands of pieces of information-technology equipment such as servers and workstations under a contract worth as much as $7.9 billion.

The defense IT specialist announced its win of the Common Hardware Systems 6th Generation contract, or CHS-6, Sept. 19. The indefinite delivery, indefinite quantity deal could run for a decade, if all options are exhausted. No additional partners or suppliers were named.

The CHS-6 arrangement allows for speedy procurement of commercial, off-the-shelf products for the Army and its units, among other organizations. The service is prioritizing computer networking and communication upgrades amid the Department of Defense’s larger connect-everything-everywhere campaign now known as Combined Joint All-Domain Command and Control, or CJADC2.

Leidos plans to employ what it’s calling the Intelligent Logistics Platform to get the job done. Between 75,000 to 100,000 pieces of hardware are acquired via the contract in a typical year.

“Recent events highlighted the devastating effect of supply chain disruptions, making resilience a national priority,” Gerry Fasano, the Leidos Defense Group president, said in a statement. “By combining flexible solutions with artificial intelligence and predictive analytics to increase visibility into operations, we will work to provide a uniquely resilient rapid fulfillment model.”

The Defense Department received three bids for CHS-6, records show. General Dynamics held the prior contract, CHS-5, worth nearly $4 billion.

Leidos earned $9.5 billion in defense-related revenue in 2022, earning it the No. 16 spot on the Defense News “Top 100″ list of the world’s largest defense contractors. It earned a little more than $8 billion in 2021.

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