Department of Defense Awards Leidos $4.3 Billion Contract » Leidos Partnership for Defense Health

Department of Defense Awards Leidos $4.3 Billion Contract

Partners Leidos, Cerner, Accenture and Henry Schein to Modernize Military Healthcare Systems

(Reston, Va.) August 19, 2015 – Leidos (NYSE: LDOS)  a national security, health and engineering solutions company, 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.

About Leidos

Leidos is a science and technology solutions leader working to address some of the world’s toughest challenges in national security, health and engineering. The Company’s 19,000 employees support vital missions for our government and the commercial sector, develop innovative solutions to drive better outcomes and defend our Nation’s digital and physical infrastructure from ‘new world’ threats. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $5.06 billion for its fiscal year ended January 30, 2015. For more information, visit www.Leidos.com.

About Cerner

Cerner’s health information technologies connect people, information and systems at more than 18,000 facilities worldwide. Recognized for innovation, Cerner solutions assist clinicians in making care decisions and enable organizations to manage the health of populations. The company also offers an integrated clinical and financial system to help health care organizations manage revenue, as well as a wide range of services to support clients’ clinical, financial and operational needs. Cerner’s mission is to contribute to the systemic improvement of health care delivery and the health of communities.  On February 2, 2015, Cerner Corporation acquired substantially all of the assets, and assumed certain liabilities, of the Siemens Health Services business from Siemens AG.  Nasdaq: CERN. For more information about Cerner, visit cerner.com, read our blog at cerner.com/blog, connect with us on Twitter at twitter.com/cerner and on Facebook at facebook.com/cerner.

Certain trademarks, service marks and logos set forth herein are property of Cerner Corporation and/or its subsidiaries. All other non-Cerner marks are the property of their respective owners.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 336,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high- performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

Accenture Federal Services is a wholly owned subsidiary of Accenture LLP, a U.S. company, with offices in Arlington, VA. Accenture’s federal business spans across clients in civilian, defense, intelligence and public safety agencies. Learn more about Accenture’s work with federal agencies.

About Henry Schein, Inc.

Henry Schein, Inc. (NASDAQ:HSIC) is the world’s largest provider of health care products and services to office-based dental, animal health and medical practitioners. The Company also serves dental laboratories, government and institutional health care clinics, and other alternate care sites. A Fortune 500® Company and a member of the S&P 500® and the NASDAQ 100® indexes, Henry Schein employs more than 18,000 Team Schein Members and serves more than one million customers.

The Company offers a comprehensive selection of products and services, including value-added solutions for operating efficient practices and delivering high-quality care. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 100,000 branded products and Henry Schein private-brand products in stock, as well as more than 150,000 additional products available as special-order items. The Company also offers its customers exclusive, innovative technology solutions, including practice management software and e-commerce solutions, as well as a broad range of financial services.

Headquartered in Melville, N.Y., Henry Schein has operations or affiliates in 30 countries. The Company’s sales reached a record $10.4 billion in 2014, and have grown at a compound annual rate of approximately 16 percent since Henry Schein became a public company in 1995. For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein and @HenrySchein on Twitter.

 

Contact:

Melissa Koskovich, (571) 526-6850, Koskovichm@Leidos.com

Jennifer Gephart, (571) 526-6852, Gephartja@Leidos.com