FAA Awards Leidos Potential $1.7B Contract to Continue Nat’l Airspace System Modernization Support

Leidos (NYSE: LDOS) will continue to help the Federal Aviation Administration integrate and implement National Airspace System modernization programs under a follow-on contract worth potentially $1.76B over 10 years.

The NAS Integration Support Contract IV indefinite-delivery/indefinite-quantity contract has a four-year base period and a pair of three-year options, FAA said in an award notice posted Tuesday.

According to solicitation documents, work includes system upgrade, technology development, planning and implementation support on behalf of designated FAA organizations.

The agency awarded the $1.4B NISC III contract in October 2010 to Lockheed Martin's (NYSE: LMT) former information systems and global solutions unit. Leidos completed its acquisition of the IS&GS business in August 2016.

The NAS enterprise includes the NextGen portfolio focused on modernizing U.S. air transportation management and flight performance reporting.

Last month, Leidos secured a $64M contract to develop the FAA’s Operational Analysis and Reporting System for safety analysis activities. The company also received a potential $292.3M award to help the FAA update airport information display platforms across the U.S. in August.

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