Telos Corporation (TLS) is experiencing a surge in its stock price after securing a substantial $12.5 billion contract for base infrastructure modernization. This multi-award, Indefinite Delivery, Indefinite Quantity (IDIQ) contract was awarded by the Department of the Air Force (DAF). The project aims to modernize and maintain network infrastructure at all DAF locations, encompassing active duty, Guard, and Reserve bases.
This global undertaking is projected to span over a decade, with a completion date set for August 15, 2034. Notably, multi-year task orders may be issued during the final year of the IDIQ, potentially extending the project beyond 2034.
The contract was awarded through a competitive process involving 47 proposals from 23 companies. Telos’s success in securing this significant contract highlights its expertise and capabilities in network infrastructure modernization.
This win adds to Telos’s growing portfolio of federal contracts. Since 2023, the company has secured positions on several other contract vehicles, including the Defense Manpower Data Center (DMDC) Defense Enterprise HR Applications and Data Services (DEHRADS), the U.S. Army EUROPE Infrastructure Modernization Capabilities Set (Army IMOD CAPSET), the U.S. Marine Corps (USMC) Infrastructure Services, Transport and Communications (ISTC) Base Area Network (BAN), and the FBI Information Technology Supplies and Support Services (IT-SSS) 2nd Generation. These contracts collectively provide Telos access to a $24.5 billion addressable market.
The positive impact of this contract award is evident in TLS share price, which has seen a significant increase of 17.8% to $3.405 at the time of writing. The market’s reaction reflects investor confidence in Telos’s ability to deliver on this large-scale project and capitalize on its growing presence in the federal contracting sector.
