Department of Defense Awards Leidos $4.3 Billion Contract

RESTON, VA -- Leidos was awarded a prime contract by the Department of Defense (DoD) to provide an off-the-shelf electronic health record solution, integration activities and deployment across the Military Health System. The contract, known as the Defense Healthcare Management System Modernization (DHMSM) program, is an initiative designed to modernize the military's healthcare system in a meaningful way, enabling patients and clinicians to capture and share health data that can improve the continuity and quality of care for 9.6 million active military, their families, and their beneficiaries.

As the prime contractor, Leidos established a team of proven innovators and industry leaders to form the Leidos Partnership for Defense Health. Cerner (NYSE: CERN), Accenture Federal Services (NYSE: ACN) and Henry Schein, Inc. (NASDAQ: HSIC) form the core team, complemented with a broad range of large and small business teammates, vendors and suppliers who bring proven experience and expertise specific to both the commercial and DoD healthcare markets.

"We are honored to have been selected as the best-value solution for the DHMSM contract," said Leidos Chairman and Chief Executive Officer Roger Krone. "We are committed to the mission and success of the DHMSM program, and are fully prepared to lean forward with the Department of Defense to deliver a best-of-class electronic health records solution for our nation's armed forces, their families and beneficiaries."

"We're privileged to be entrusted with improving the healthcare experience of our service members and their families," said Cerner President Zane Burke. "Our country's heroes deserve a modern, secure and interoperable system for sharing their health information across the military health system and throughout the public sector. We look forward to working with our talented partners and the Department of Defense to make that vision a reality as soon as possible."

"Our team combines expertise in technology, healthcare, systems infrastructure and mission knowledge to help DoD better meet the healthcare needs of military men and women around the world. We are proud to have a role in serving those who have served us," said Jim Traficant, Accenture Managing Director.

"It is a privilege to belong to this important partnership to improve the health and medical readiness of our military," said Kevin Bunker, President, Henry Schein North America Dental Practice Solutions. "At a time when the association between oral health and total health is increasingly clear, and when the seamless sharing of medical and dental records is paramount, Dentrix Enterprise is the ideal interoperable dental management software and Electronic Dental Record for large Community and Federally Qualified Health Centers. We are pleased to join our partners at Leidos, Cerner and Accenture for the ultimate benefit of the armed forces of the United States."

The $4.3 billion indefinite-delivery/indefinite-quantity contract has a two-year initial ordering period, two three-year option periods, and a potential two-year additional term that may be earned through a successful evaluation, bringing the total ordering period to 10 years.

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