Leidos Wins US Navy’s $7.73 billion IT Contract

The United States Navy has awarded Leidos Inc a contract valued $7.73 billion Service Management, Integration and Transport (SMIT) contract that aims to overhaul the Navy’s dated information technology infrastructure.

“Leidos Inc., is awarded an estimated $7.73 billion contract to include all options, if exercised, for the procurement of Department of Navy (DoN) service management, integration and transport used on the Navy Marine Corps Intranet (NMCI), the outside continental US Naval Enterprise Network and the Marine Corps Enterprise Network,” the US Department of Defense said in a statement Wednesday.

Under the contract, Leidos will modernize the Navy-Marine Corps Intranet (NMCI) in use by over 700,000 sailors, Marines and civilians over the next nine months.

This acquisition will provide the DoN with base network services that are currently provided under the Next Generation Enterprise Networks contract such as electronic software delivery, end user core build, endpoint detection, logistics management, network operations, security operations, service desk, transport and virtualization services.

OCONUS Navy Enterprise Network (ONE-Net), Marine Corps Enterprise Network (MCEN) and other legacy networks are covered under the contract, according to a release from the Navy.

The improvements will include migrating the networks from the legacy Microsoft Windows platforms to a more modern Windows-as-a-service model, introduce the use of Office 365 and make the networks compatible with the emerging JEDI cloud computing infrastructure developed for the Department of Defense.

The multi-billion dollar award is part of the Next Generation Enterprise Network Re-Compete (NGEN-R) family of contracts. It follows an October award to HP for end-user hardware (EUHW) like laptops, desktops, tablets and accessories.

“The capabilities and network services acquired through the NGEN-R family of contracts will transform the working environment for Navy and Marine Corps users by providing additional flexibility, enabling cloud capabilities and allowing the DON to operate, maintain and protect critical operational and business platforms,” said Ruth Youngs Lew, program executive officer for Enterprise Information Systems.

Work will be performed across the DoN and is expected to be completed in February 2025. If all options are exercised, work could continue until August 2028, Pentagon said.