Leidos Wins $875M Contract for Navy Network Support Services

Leidos has been awarded a significant $875 million contract for the second option year of the Next Generation Enterprise Network Service Management Integration and Transport (NGEN SMIT) program, providing critical support to the U.S. Navy and Marine Corps. This contract, which takes effect as of September 15, 2026, is set to strengthen secure connectivity and improve IT operations, catering to the operational needs of over 650,000 personnel and managing more than 425,000 devices distributed across 2,500 global sites. The award highlights the strategic importance placed on maintaining robust network security, resiliency, and modernization within the military's communications infrastructure.

The NGEN SMIT program is a key element of a larger initiative ensuring that military networks remain secure and operationally effective. Established to carry out comprehensive support for networks outside the continental U.S. and maintain the Navy Marine Corps Intranet, this program offers essential operational functionalities such as network operations, electronic software delivery, endpoint detection, logistics management, and other IT transformation tasks. It reflects ongoing efforts to adapt to the changing technological landscape while ensuring that military personnel have reliable access to critical information and communication capabilities.

This contract marks the continuation of Leidos's involvement in the NGEN framework, which originally began with the potential $7.7 billion contract awarded in 2020. The multi-year, multi-site nature of this contract serves as a benchmark for future IT services opportunities within government contracting, especially for companies focusing on network management, cybersecurity, and IT operations, highlighting the myriad opportunities arising from governmental needs for modern IT frameworks.

Leidos has already made significant strides in enhancing the performance of the networks they support. Since assuming responsibility for network operations in 2021, the company has adopted automated solutions for network device patching. This innovation has led to a remarkable 93 percent increase in the speed of patch deliveries to network devices and a 94 percent improvement in enterprise-wide patching efficiency. These measures are critical for addressing vulnerabilities and minimizing potential disruptions, allowing military and civilian personnel to focus on mission execution without concerns over cybersecurity risks.

The importance of this infrastructure and the contracts that sustain it cannot be overstated, especially as military operations increasingly rely on advanced technology and seamless communications. As Steve Hull, President of Leidos Digital, noted, "Military and civilian personnel depend on these networks to communicate, make decisions, and conduct missions. Leidos is working to keep the technology secure, resilient, and ready." This commitment underscores the critical role contractors play in safeguarding military capabilities and ensuring operational readiness.

Overall, the award of the NGEN SMIT contract to Leidos points to a future where contractors with the right expertise and technology can play a substantial role in fulfilling the needs of military operations and government agencies. The expansion of such contracts also suggests a growing recognition from the Navy and Marine Corps on the need for advanced IT solutions to maintain their competitive edge in an increasingly digitized battlefield.

• The awarded contract amounts to $875 million for the second option year of the program.
• It covers secure connectivity and IT operations for over 650,000 naval personnel.
• Leidos manages more than 425,000 network devices at over 2,500 global locations.
• The contract supports the Navy Marine Corps Intranet and the OCONUS Navy Enterprise Network.
• The awarded contract is part of the potential $7.7 billion NGEN-R SMIT initiative established in 2020.
• Leidos achieved significant operational efficiencies with a 93% increase in patch delivery speeds.
• The ongoing modernization efforts indicate strong future opportunities for GovCon vendors in IT and cybersecurity.
• The program emphasizes the need for secure, resilient communications to enhance military operational effectiveness.