Leidos Chairman and CEO Roger Krone predicted Tuesday the Energy Department could award a new contract for landlord services at the Hanford Site “within a couple of weeks.”
There had been speculation it would be out this week, Krone said during the company’s quarterly earnings call, responding to a Wall Street analysts’ question on potential bookings.
Leidos-led Mission Support Alliance’s 10-year contract at the Department of Energy nuclear cleanup site in Washington state expired in May. However, the company got a six-month extension through Nov. 25. The business, including the extension, is valued at $4.3 billion. Virginia-based international information technology, engineering, and services specialist Leidos owns MSA with Centerra Group.
The Energy Department issued a request for proposals for the new contract in September 2018. Under the agency’s latest procurement schedule, the potential $6 billion, 10-year contract should be issued by the end of August.
The Hanford Mission Essential Services Contract will cover a wide gamut of responsibilities including land management, firefighting, utilities, cybersecurity and information technology, and management of the HAMMER training center.
A presolicitation industry day in December 2017 attracted representatives from Leidos and other familiar names in the DOE contracting world: Perma-Fix Northwest, Parsons, Huntington Ingalls, Atkins, Jacobs, Navarro, and Veolia.
Leidos spokeswoman Suzzanna Martinez confirmed via email Thursday the company is vying for the business but declined to reveal who it is teaming up with.
Leidos’ overall net income in the second quarter dipped 6% to $136 million, or $0.93 per share, from $144 million ($0.94 per share) a year ago. Adjusted earnings, which exclude various nonoperating costs such as integration and restructuring, gains and losses from business sales, and other tax adjustments, were $1.16 per share versus $1.12 a year ago and a nickel above consensus estimates.
The company’s $2.73 billion in revenue for the quarter was up nearly 8% from $2.53 billion in the prior year.
Leidos now expects full-year adjusted earnings between $4.50 and $4.75 per share, versus the prior outlook of between $4.30 and $4.65.
There has been some industry speculation in recent weeks that DOE is on the brink of issuing the Hanford Central Plateau Cleanup contract, a potential 10-year, $7 billion to $12 billion successor agreement to the current business held by Jacobs subsidiary CH2M Plateau Remediation. CH2M is working under a one-year extension to its original 10-year agreement and is currently set to stay on the job through September. The value of the current CH2M business is about $6 billion.
The Energy Department said in its May procurement update, its latest, the Central Plateau award could be out by the end of this month. Aside from an award valued at less than $5 million for administration of workers’ compensation administration, there have been no Hanford contracts announced by the agency this week.
Weapons Complex Morning Briefing sister publication Defense Daily contributed to this article.
