DoD Plans to Ax Oracle and Leidos Contract as Part of Cost-Saving Initiative: Report

-

The U.S. Department of Defense intends to terminate a several-year agreement with Leidos Holdings. NYSE: LDOS ) and Oracle ( NYSE: ORCL As part of a cost-cutting initiative, as stated in a report by Bloomberg.

Oracle’s cloud human resources software was chosen to oversee the management of 900,000 civilian personnel at the Pentagon. Meanwhile, Leidos would be responsible for providing services and support for this initiative, as stated in the report. Nonetheless, U.S. Defense Secretary Pete Hegseth released a memorandum on March 20th stating that the project had exceeded its budget and fallen behind schedule.

Hegseth stated, "The software development initiative for the Defense Civilian Human Resources Management System along with related ongoing contracts at the Defense Human Resources Activity is presently six years delayed and has exceeded the allocated budget by over $280 million (780%). It’s projected that another two years will be needed for additional development and testing prior to reaching the initial operational stage. This program aimed to modernize a substantial part of the department's outdated human resources IT infrastructure—a critical objective we must accomplish—but pouring more funds into the DCHRMS project would essentially mean wasting even more taxpayers' dollars."

The department currently has 60 days to create a fresh strategy for tackling this problem.

Leidos plays a significant role in securing government contracts for technology and engineering services both within the U.S. and internationally. Approximately 87% of their income comes from these governmental agreements.

Shares of Oracle and Leidos were down. down 2% and 3.5% , respectively, in early trading sessions on Friday.

Seeking Alpha contacted Oracle and Leidos about the contract.

Further details on Leidos and Oracle

  • Oracle: Sustainable Expansion May Yield Solid Gains
  • Oracle: Keeps Achieving Impressive Expansion Even Without Activating the Stargate Mechanism
  • Oracle Earnings Analysis: Robust Forecasts Amid AGI
  • The Trump administration has been encouraged by various nations and corporations to reconsider the regulations on AI chips, according to a recent report.
  • Microsoft and Salesforce seem most ' resilient' amid potential slowdown in software spending, says Evercore.

Comments

Post a Comment

Popular posts from this blog

Paradise Islands Offer Citizenship for Less Than £36,000

-
Image
Didn't you catch wind of it? For only $105,000, you can purchase citizenship to a tropical island paradise these days. The island country of Nauru located in the Pacific is offering passports to foreign nationals for $105,000 (£81,000) as part of an effort to generate funding for its climate emergency reserve. Soaring sea levels are swiftly eroding Nauru’s coastlines. In reaction, the nation’s leadership is considering a large-scale move inland; however, they are facing difficulties in securing funding for this initiative. Approximately ninety percent of the island's inhabitants will likely have to relocate to elevated areas due to sea levels surrounding Nauru increasing at a rate one point five times quicker than the worldwide average. Many nations provide citizenship in return for significant financial investments or property purchases. However, certain options may stand out specifically to wealthy Britons looking for opportunities. In fact, several stunning t...
Read more

Australian Grand Prix Fences Go Black for Clever Reason

-
Image
The 2025 Australian Grand Prix introduces several modifications to the circuit, primarily focusing on Turn 6 where Mercedes' George Russell had a crash in the previous year. However, the track authorities have implemented an additional alteration. The fencing along the Melbourne street race course has been painted black, particularly in the region of the starting grid. This minor alteration significantly enhances visibility for both spectators with tickets and photographers, despite its subtle nature. The cause stems from how light reflects off the metal. Black paint helps with this by absorbing the light, thus making it simpler to maintain visibility. Formula One tracks have consistently needed to address the visibility and safety of spectators holding tickets. Essential safety features include barrier walls and catch fencing, which protect not only the audience but also racers themselves. Take, for instance, Zhou Guanyu’s accident at Silverstone in 2023; without the p...
Read more

Bill Passes Just Hours Before Deadline, Averts Shutdown and Defeats Filibuster

-
Image
On Friday, senators moved forward with the stopgap funding measure approved by the House as the clock ticks nearer to a potential government closure. With a vote of 62 to 38, the senators decided to move forward with the proposal. Almost all Republicans along with ten Democrats helped override the filibuster. Senate Minority Leader Chuck Schumer from New York Senate Minority Whip Dick Durbin from Illinois, along with Senators Angus King of Maine, Brian Schatz of Hawaii, Catherine Cortez Masto of Nevada, John Fetterman of Pennsylvania, Gary Peters of Michigan, Maggie Hassan of New Hampshire, Kirsten Gillibrand of New York, and Jeanne Shaheen of New Hampshire, voted to advance the bill, going against the majority of their fellow Democrats. The House-passed short-term A spending measure, referred to as a continuing resolution (CR), would maintain funding at FY 2024 levels up until October 1st. Nevertheless, should Congress fail to pass this legislation before 11...
Read more