DLH Holdings Corp. (NASDAQ:DLHC) saw its stock price jump about 20% after the company disclosed it is one of the prime awardees on a multiple-award indefinite delivery/indefinite quantity (IDIQ) contract to support logistics information technology for U.S. Navy integrated platforms and DevSecOps pipelines. The agreement is managed by Naval Air Systems Command and carries a base term of five years.
The contract - titled Logistics IT Integration and Support Capability Modernization Deployment, and Support - includes a ceiling of $250 million for all awardees combined. As one of multiple primes, DLH will have the opportunity to compete for task orders issued under the IDIQ.
Under the scope of anticipated task orders, DLH will have the chance to apply agile development models and modular architectural approaches intended to support ongoing systems modernization, integration, sustainment, and migration. The range of services described for potential task orders includes design, development, testing and evaluation, training, service desk request fulfillment, deployment, hardware and software configuration, and related activities.
"DLH delivers innovative logistics, engineering, and integration services to safeguard the American warfighter’s ability to out-detect, out-think, and outmaneuver our adversaries," commented Billy Burnett, President of DLH’s National Security Programs Operations Center. "Through this award, DLH will implement mission-driven, interoperable, and cost-effective solutions for our customers as they confront critical system integration challenges."
DLH Holdings is described by the company as a provider of digital transformation and cybersecurity, systems engineering and integration, and science research and development services. The IDIQ award positions the firm to pursue work across logistics IT and DevSecOps pipelines for Navy platforms through competed task orders.
While the IDIQ establishes a vehicle for potential work, the actual revenue DLH may capture will depend on competed task orders released under the contract and any task orders the company ultimately wins.