LDOS - Perspecta Goes to War Over Lost $7.7 Billion Navy IT Contract
Defense IT company Perspecta (NYSE: PRSP) has filed a formal protest with the Government Accountability Office (GAO) to try to reverse the loss of a contract that accounts for nearly one-fifth of its total revenue.
The U.S. Navy announced on Feb. 5 it had awarded Leidos Holdings (NYSE: LDOS) a $7.73 billion contract to modernize and maintain computer networks for the Navy and Marine Corps. Perspecta was the incumbent on the contract, and its shares dropped by 16% the day after the award was announced.
Perspecta is actually the second contractor to protest the so-called N-GEN award. General Dynamics (NYSE: GD), which also lost out to Leidos, filed a protest last week.