Leidos Secures $62M Contract to Install, Maintain Navy's Undersea Warfare System

Leidos (NYSE: LDOS) has secured a potential two-year, $61.7 million contract to help the U.S. Navy install and sustain an integrated system designed to detect and engage targets under the sea.

Work covers ship installation, life cycle sustainment and logistics and fleet support services for AN/SQQ-89A(V)15 surface ship undersea warfare systems, the Department of Defense said Friday.

The cost-plus-incentive-fee, cost-plus-fixed-fee, cost-only contract has a base value of $26.9 million and includes foreign military sales to Japan and Australia, which account for 2.6 percent of total contract purchases.

The Navy is buying AN/SQQ-89A(V)15 as part of its multiyear effort to modernize legacy USW systems currently installed on destroyer ships and some cruisers. The open architecture system features a hull-mounted sonar, acoustic intercept receivers and a multifunction toward array, according to the service branch.

Forty-six percent of services will take place in Virginia and the rest in Washington, California, Maine, Mississippi, Florida, Hawaii and Japan.

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