Leidos signs supply chain deal in Australia

Global systems integrator and services company, Leidos, has joined the Australian Government’s Global Supply Chain Program as its newest prime contractor.

Managed by the Centre for Defence Industry Capability (CDIC), the Global Supply Chain Program contracts defence prime companies to identify opportunities for Australian SMEs within their supply chains. The other seven prime contractors involved in the program include: BAE Systems, Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Rheinmetall and Thales.

Announcing the news today, Minister for Defence Industry, Steven Ciobo said the move creates significant opportunities for Australian small-to-medium enterprises (SMEs) to embed themselves in long-term supply chain contracts.

Under the CDIC, eligible Australian SMEs seeking to enter global value chains or to export their products and services are provided with a comprehensive package of defence export advice, export development and promotion, supply chain facilitation and business development.

“The value of the GSC Program extends further than direct opportunities for Australian SMEs to participate,” Minister Ciobo said.

“The flow-on effect to their own domestic supply chains more than doubles the value of any contract awarded in Australia, providing great value to the Australian economy,” he said.

Since 2007, the participating global supply chain contractors have awarded over $1 billion worth of contracts to around 170 Australian defence companies and research institutions.

As a Fortune 500 company involved in the defence, aviation, information technology and biomedical research areas, Leidos focuses on connecting the right companies to help cultivate the right technological solutions for customers. 

Leidos has a presence in more than 25 countries, relying heavily on its contractors to supply components and solutions.The company’s 32,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately US$10.17 billion ($14.17 billion) for the fiscal year ended December 29, 2017.

Leidos recently announced the addition of six new companies, including IBM and Red Hat, to its Leidos Alliance Partner Network – a program leveraging the Leidos supplier base to drive innovation, enhance program performance and build efficiency.

Some of the key attributes Leidos considers when adding new suppliers includes: innovative products, joint independent research and development opportunities, technical roadmap awareness and extensive training opportunities.