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Bloomberg Government: Army Extends ITES-2S Contracts Through April 2020

The U.S. Army has informed 15 contractors about two-year extensions for the current set of Information Technology Enterprise Solutions–2 Services contracts, Bloomberg Government reported Thursday.

A justification and approval notice says the Army seeks to prevent a disruption to the military branch’s strategic sourcing efforts as it works to finalize the next iteration.

The $20 billion ITES-2S vehicle was initially due to expire in April 2015 and extended to April of this year, the report noted.

Among the 15 incumbent vendors, General Dynamics (NYSE: GD) has captured $2.5 billion in ITES-2S contract funds since fiscal 2006. Leidos (NYSE: LDOS) and Northrop Grumman (NYSE: NOC) have garnered obligations worth $2.2 billion and $1.9 billion, respectively.

Bloomberg reports the military branch could re-compete task orders worth up to $930 million through April 2020.

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