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All HHS Contracts — June 26, 2026

All HHS Contracts

By Gunpowder Editorial ·

2 total filings analysed

Executive Summary

The two HHS contracts analyzed total $258.1 million, with no defense-related awards. The dominant theme is a single massive, long-term telecom contract awarded to Verizon Federal Inc. worth $250.8 million, but only 6.6% has been outlaid, raising questions about execution and revenue recognition.

A small, sole-source health services contract to Lockheed Martin ($7.4M) highlights a trusted relationship but heavy subcontractor reliance. The highest-conviction signal is the Verizon contract's low outlay, which may indicate budget constraints or shifting priorities within HHS. Key risk includes monitoring Verizon's contract execution and potential re-compete after the 2023 end date.

Materiality, sentiment, and priority are scored by Gunpowder’s analysis pipeline. How we score filings →

Tracking the trend? Catch up on the prior All HHS Contracts digest from June 25, 2026.

Investment Signals (2)

  • Verizon Federal Inc. $250.8M HHS Telecom Contract Shows Minimal Outlay (MEDIUM)

    Only $16.6M (6.6%) of the $250.8M contract has been outlaid, suggesting slow execution or potential underperformance, which could impact revenue expectations for Verizon Federal.

  • Lockheed Martin $7.4M HHS Contract Has Heavy Subcontractor Reliance (MEDIUM)

    60% of the contract value ($4.4M) is subawarded, which may dilute Lockheed Martin's margins and reduce direct revenue from this sole-source engagement.

Risk Flags (2)

  • Execution [HIGH RISK]

    Verizon Federal's $250.8M HHS telecom contract has only 6.6% outlay, indicating potential underperformance or slow spending that could affect revenue recognition.

  • Concentration [MEDIUM RISK]

    Lockheed Martin's $7.4M HHS contract relies on a single subcontractor for 60% of value, creating margin and performance risk.

Opportunities (1)

  • Lockheed Martin's sole-source award for health services suggests a trusted relationship with HHS, potentially leading to follow-on contracts.

Sector Themes (1)

  • HHS awarded a 14-year, $250.8M telecom contract to Verizon Federal, indicating long-term demand for telecom services in civilian agencies.

Watch List (2)

  • 👁

    {"entity"=>"Verizon Federal Inc.", "reason"=>"Large $250.8M HHS contract with minimal outlay (6.6%) suggests execution risk or budget constraints.", "trigger"=>"Contract end date in 2023; monitor for modifications or re-compete announcements"}

  • 👁

    {"entity"=>"Lockheed Martin Corporation", "reason"=>"Small sole-source health services contract with heavy subcontractor reliance may signal margin pressure.", "trigger"=>"Contract expiration in September 2014; monitor for follow-on awards"}

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