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’ 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.
Weapons Complex Morning Briefing sister publication Defense Daily contributed to this article.
