Perspecta: NGEN debriefing scheduled for Feb. 24

February 13, 2020 at 9:27 AM

Perspecta says it expects to receive later this month its post-award debriefing on the services portion of the Next Generation Enterprise Network contract, which was awarded to Leidos.

"The NGEN contract currently expires on Sept. 30, 2020, with three one-month options that may be exercised by the U.S. Navy," the company said in a press release yesterday. "Perspecta will receive a post-award debriefing from the agency providing the basis for the selection decision and contract award on Feb. 24, 2020."

At that time, Perspecta added, the company "will assess next steps with respect to the award decision."

The chief executive of Leidos said yesterday he expects a protest of the contract.

Perspecta also disclosed this week it is evaluating the effect of losing the NGEN contract on the value of the business. It has determined "an impairment charge will be required as a result of the U.S. Navy's decision."

"Based on current estimates, the company expects to incur a non-cash, pre-tax impairment charge of approximately $860 million primarily related to goodwill and intangible assets in the fourth quarter of fiscal year 2020," the company added.

Meanwhile, Perspecta said this week sales during its most recent quarter reached $1.1 billion, up almost 5% from the same three-month period a year earlier. The company said quarterly profit totaled $53 million, up 39% from the prior year.

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