Amid escalating tensions in the Indo-Pacific, Leidos Inc., a leader in U.S. defense contracting, has been awarded a $987 million contract to sustain Taiwan’s F-16 fleet. Spanning a decade, this deal highlights the U.S.’ commitment to bolstering Taiwan’s military capabilities.
Beyond this deal, Leidos continues to make headlines with its contributions to military and civilian advancements, cementing its role as a leader in defense contracting.
Doing business under the banner of “innovative solutions through information technology,” Leidos Holdings is a leading American defence, aviation, information technology, and biomedical research company.
The company has a rich history, having been founded in La Jolla, California, by American scientist and engineer John Robert Beyster in 1969. It was then known as Science Applications Incorporated (SAI) before splitting into two separate entities in 2012.
The split was primarily orchestrated to avoid conflicts of interest between its government and military-aligned contracts as well as to expand its market reach.
The smaller of the two spin-offs retained the name SAIC and original headquarters, while the larger was rebranded as Leidos and relocated to Reston, Virginia. However, Leidos is the legal successor of the original SAIC, which boasts 39,600 employees and $11.17 billion in revenue pre-split.
The transition was mostly completed by 2013.
Leidos managed to achieve $5.06 billion in revenue in its first-year post-structuring. Other significant milestones in the last 10 years include:
The company is ranked 266 on the 2024 Fortune 500, highlighting the scope of its expansion.
Besides its military entanglements, Leidos has continued to secure several big-ticket contracts throughout 2024.
So, it’s no surprise that the company also posted strong financial results for Q3 2024. Leidos reported no less than $4.2 billion in revenue $362 million in net income, and raised full-year guidance to reflect impressive growth of 7% year-over-year.
Leidos Inc. has been awarded a massive $987 million contract to provide sustainment support for Taiwan’s fleet of F-16 fighter jets under the Foreign Military Sales (FMS) program. The contract encompasses firm-fixed-price, cost reimbursement, no-fee, cost-plus-fixed-fee, and indefinite-delivery/indefinite-quantity components.
Administered by the U.S. Air Force Life Cycle Management Center it covers repair and return services, engineering support, and solutions for diminishing manufacturing sources.
The agreement spans a decade, with work primarily conducted in Reston, Virginia, and completion anticipated by May 31, 2034. Taiwan, a critical U.S. ally in the Indo-Pacific region, will benefit from the enhanced readiness and lifespan of its F-16 fleet, a key component of its air defense strategy.
This competitively awarded contract saw two proposals, with Leidos ultimately chosen for its extensive expertise in defense technology and maintenance.
As China intensifies military drills near Taiwan and Taiwanese President William Lai strengthens diplomatic ties with U.S. allies, tensions continue to rise in the Indo-Pacific. The U.S. remains committed to supporting Taiwan’s defense, reflecting its strategic importance as a critical semiconductor supplier and geopolitical ally.
The contract with Leidos is not the move the US has made to bolster Taiwan’s defense readiness. Other notable ones in recent history include:
Leidos’ $987 million contract to support Taiwan’s F-16 fleet underscores the pivotal role it continues to play in global defense strategies. Combined with its impressive financial performance and other recent contract wins, the company continues to lead in innovation and reliability.
As geopolitical challenges mount, Leidos is positioned to drive advancements that strengthen both U.S. and allied defense capabilities worldwide.