All HHS Contracts — June 04, 2026

Leidos won a full-and-open, firm-fixed-price delivery order from CMS for end-user centric IT support, valued at $234.9M with $112M outlayed. This signals competitive strength in civilian IT services but offers limited growth catalyst given the contract's near-completion status.

Leidos bears cost risk under the firm-fixed-price structure, though IT services typically have manageable margins. Any cost overruns on the remaining $122.9M obligation could pressure segment margins.

Leidos' reliance on a single $234.9M CMS contract for HHS revenue creates concentration risk if not replaced by follow-on awards. The contract's 2018-2023 period suggests imminent revenue headwinds.

Leidos' competitive win in a full-and-open competition positions it well for future CMS or HHS IT modernization contracts, especially as healthcare agencies prioritize digital transformation.

The $234.9M Leidos award underscores sustained HHS/CMS investment in end-user IT support, even under full-and-open competition. This reflects stable demand for IT services in healthcare administration.

{"entity"=>"Leidos, Inc.", "reason"=>"The $234.9M CMS contract is near completion, creating a potential revenue gap for Leidos' HHS segment.", "trigger"=>"CMS re-compete announcement or new task order awards for IT support services"}