Leidos Holdings, Inc.LDOS has been awarded a five-year $75 million contract by the Federal Highway Administration (FHWA). Per the deal, Leidos will provide technical support services to the FHWA Office of Operations Research & Development, and the Saxton Transportation Operations Laboratory.
The Saxton Laboratory conducts transportation operation research that enables FHWA to validate and refine new transportation services and technologies before committing to a larger scale of research, development, testing and deployment.
The company will conduct work on the follow-on, indefinite-delivery/indefinite-quantity contract primarily in McLean, VA.
Details of the Deal
Leidos will provide technical and research services related to conventional transportation operations issues, as well as technical assistance and studies. The contract also covers services related to laboratory and field experiments that support the activities and strategies of the FHWA Office of Operations Research & Development. In addition, Leidos will provide technical assistance for the development, designing and integration of systems so as to ensure better communication, enhanced productivity and thus, customer satisfaction.
The company will also offer technical and research services in support of ITS communications, positioning, and mapping technologies. On the whole, Leidos will facilitate advanced research & development activities in the FHWA's efforts to address the ever increasing need for better transportation systems.
LEIDOS HOLDINGS Price
What Keeps Leidos' Order Book Ticking?
Leidos provides science and technology solutions in the fields of national security, engineering and health. The company has an impressive customer list too, which includes names like the U.S. Department of Defense, Department of Homeland Security, Intelligence Community including the National Security Agency, other civil agencies, state and local government agencies, and foreign governments and customers across diverse commercial markets. This makes sure that Leidos has a steady flow of work coming in.
In April, the company won a contract from the Air Force Installation Contracting Agency to provide environmental services for the Air Force Civil Engineer Center ("AFCEC"). The deal has a combined potential value of up to $500 million.
According to Jim Moos, senior vice president and operations manager of Leidos' infrastructure and engineering business, the company has had a long-standing alliance with the U.S. Air Force and it has been offering essential solutions for various missions undertaken by the AFCEC. Such a strong relationship with the Air Force bodes well for the company over the long run.
Leidos currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other favorably placed stocks in the aerospace & defense sector include Engility Holdings, Inc. EGL , Curtiss-Wright Corporation CW and Esterline Technologies Corp. ESL , each carrying the same rank as Leidos.