Leidos Wins $7.9B Army CHS-6 IT Equipment Support Contract

Leidos (NYSE: LDOS) will provide the U.S. Army with hardware systems, components, system management platforms and non-personal services under the potential 10-year, $7.9 billion Common Hardware Systems-6th Generation indefinite-delivery/indefinite-quantity contract.

Army Contracting Command at Aberdeen Proving Ground in Maryland received three offers for the CHS-6 procurement program and expects work to run through Aug. 30, 2023, the Department of Defense said Thursday.

The follow-on contract, which includes customizable sustainment strategies and continuous technology updates, is intended to facilitate consolidated procurement of commercial IT products and services in support of the Army, DOD organizations and other federal agencies, according to a solicitation notice published in October 2022.

General Dynamics‘ (NYSE: GD) information technology business was the CHS-5th Generation contractor in the past five years under a $3.9 billion award.

The CHS-6 program has a four-year base term, plus two three-year option periods, and the service branch used the “best value tradeoff” method in the sourcing process.