Leidos Awarded Three Contracts by LSB Industries, Inc.

Company to Provide Design-Build and Construction Management Services

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Feb 26, 2014, 04:05 ET

RESTON, Va., Feb. 26, 2014 /PRNewswire/ -- Leidos (NYSE: LDOS), a national security, health and engineering solutions company, announced it was awarded three prime contracts by LSB Industries, Inc. to provide construction management services for nitric acid and nitric acid concentrator plants, as well as engineering, procurement, and construction (EPC) services for the outside battery limits required to operate the plants. The latest three awards are a hybrid of lump sum and cost-plus components and are collectively valued at $82.7 million. Work will be performed at the El Dorado Chemical Company in El Dorado, Ark.

Under the contracts, Leidos will provide construction management services for a 360,000 ton-per-year nitric acid plant and a 40,000 ton-per-year nitric acid concentrator plant. These plants require raw materials and utilities to operate, and Leidos will provide full EPC services for the outside battery limits utility support requirements, which include boilers for steam supply and cooling towers for cooling water supply and return. Construction is expected to be completed by mid-2015.

Last fall, Leidos was awarded an initial contract to provide EPC services, managing the design and construction of an ammonia plant and associated facilities at the same location.

LSB Industries, Inc. is a manufacturing, marketing, and engineering company. LSB's principal business activities, through its subsidiaries, are the manufacture and sale of chemical products for agriculture, industrial, mining, quarry, and construction uses, as well as the manufacture and sale of a broad range of heating, ventilation, and air conditioning products, used in commercial, institutional, and residential buildings.

"We look forward to helping LSB expand its nitric acid manufacturing capability," said James R. Moos, Leidos Engineering Solutions Group president. "Applying our expertise on the construction of the three El Dorado plants in addition to our EPC services for the outside battery limits will help LSB serve its markets more quickly and efficiently."

The company, formerly named Science Applications International Corporation, changed its name to Leidos, Inc. on September 27, 2013 in connection with the spin-off of its former technical, engineering and enterprise information technology business, which has assumed the company's former name.

About Leidos

Leidos is a science and technology solutions leader working to address some of the world's toughest challenges in national security, health, and engineering. The Company's 23,000 employees support vital missions for our government and the commercial sector, develop innovative solutions to drive better outcomes, and defend our Nation's digital and physical infrastructure from 'new world' threats. Leidos is headquartered in Reston, Va. and had approximately $6 billion in revenues for fiscal year 2013, on a pro forma basis, following the spin-off of the company's technical, engineering and enterprise IT business on Sept. 27, 2013. For more information, visit www.Leidos.com.

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in Leidos' Annual Report on Form 10-K for the period ended January 31, 2013, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.