All HHS Contracts — July 10, 2026

Leidos secured a cost-plus-fixed-fee delivery order under full-and-open competition, indicating strong positioning in biomedical research services with stable margins. The contract supports NIAID VRC operations, a priority area for pandemic preparedness.

Booz Allen Hamilton won a $73.2M CMS delivery order for Marketplace System Integrator services, with a potential ceiling of $354.4M through 2031, signaling sustained demand for healthcare IT systems integration. The full-and-open competition win suggests competitive advantage over peers.

The labor-hours pricing model means Booz Allen bears cost risk if actual hours exceed estimates, potentially compressing margins. Subawards of $19M (26% of obligation) further reduce direct revenue capture.

Leidos’ $87.1M NIH contract has only $21.6M (25%) outlaid, with a current end date of August 2026. Most revenue is forward-looking and subject to performance milestones and option exercise.

Booz Allen Hamilton’s $73.2M CMS contract is only funded for one year (2026-2027) out of a potential 5-year term. Option exercise depends on CMS budget allocations for FY2027-2031, which are subject to political uncertainty.

JBS International’s $35.2M SAMHSA contract represents a multi-year revenue stream but is concentrated in a single agency (SAMHSA) and a low-tech professional services niche, limiting scalability.

Leidos’ $87.1M NIH NCI win positions the company for follow-on awards in biomedical research, especially as pandemic preparedness remains a bipartisan priority. The cost-plus structure provides stable margins.

Booz Allen Hamilton’s CMS MSI contract has a $354.4M ceiling, offering significant upside if all options are exercised through 2031. This aligns with ongoing healthcare marketplace complexity and IT modernization.

JBS International, a woman-owned business, secured a $35.2M SAMHSA contract under full-and-open competition without set-aside, demonstrating merit-based win capability. Future set-aside opportunities could provide preferential access.

All three contracts are HHS awards, with $160.3M (82% of total) going to Leidos and Booz Allen for health R&D and IT systems integration. This underscores stable, non-discretionary funding for healthcare infrastructure and research services.

Two of three contracts (Leidos $87.1M, JBS $35.2M) use cost-plus pricing, which limits downside risk for contractors. Only Booz Allen’s labor-hours contract carries medium pricing risk.

{"entity"=>"Leidos Holdings, Inc.", "reason"=>"Only 25% of $87.1M NIH contract funded; option exercise by August 2026 is critical for revenue visibility.", "trigger"=>"Option exercise announcement; quarterly revenue recognition in SEC filings"}

{"entity"=>"Booz Allen Hamilton Inc.", "reason"=>"CMS contract has $354.4M ceiling but only $73.2M funded for one year; labor-hours pricing adds execution risk.", "trigger"=>"CMS budget for FY2027-2031; Q2 2026 earnings margin commentary"}

{"entity"=>"JBS International, Inc.", "reason"=>"Concentration in SAMHSA technical assistance; future obligations under $35.2M contract will indicate agency relationship depth.", "trigger"=>"Future SAMHSA obligations; re-compete announcements for state program improvement"}