Movers and SHAKERS
DLH Holdings Corp. (DLHC)
Awarded VA-CMOP Logistics
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
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CMOP Award. On Friday, DLH announced its had won the follow-on contract for CMOP medical logistics for the VA. This contract had originally been targeted for small businesses but the VA eventually removed all set-aside tiers and awarded the contract to incumbent DLH. This program processed over 120 million prescriptions in 2020 from seven geographical locations nationwide. We believe Friday's announcement positions the Company to win the remaining CMOP award for pharmacy services still outstanding.
Contract Details. The contract includes a base period of one year, with four one year options. Total value of the contract, assuming all options are exercised is $202 million. The contract value is in-line with the previous contracts, which generated $43.7 million and $39.4 million of revenue in fiscal 2020 and fiscal 2019 for DLH ...
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