All HHS Contracts — July 24, 2026

Leidos Biomedical Research won a $173.3 million cost-plus-fixed-fee delivery order from the NIH National Cancer Institute for Phase 1/2 vaccine trials, with $36.8 million already funded. The cost-plus structure shields Leidos from cost overruns, providing stable margins over the six-year performance period through May 2029.

Only $36.8 million of the $173.3 million ceiling is currently funded, meaning future appropriations under NIH budgets or potential Continuing Resolutions could delay or reduce subsequent obligations. This is a civilian contract, so it lacks the budget priority of defense spending.

This single contract represents a material portion of Leidos' health R&D revenue stream. If clinical trial outcomes are negative or NIH shifts priorities, Leidos could face reduced follow-on work or re-compete risk in 2029.

Successful Phase 1/2 vaccine trial outcomes could lead to expanded Phase 3 contracts or follow-on production awards from NIH, potentially multiplying Leidos' revenue from this platform. The full-and-open competition win demonstrates Leidos' competitive edge in health R&D.

The $173.3 million award to Leidos underscores NIH's continued prioritization of next-generation vaccine development, even outside pandemic emergency funding. This contract supports the broader theme of stable, multi-year civilian health R&D spending.

{"entity" => "Leidos Holdings, Inc.", "reason" => "This $173.3M contract provides long-term revenue visibility but only 21% funded to date. Future funding obligations and trial outcomes are key catalysts.", "trigger" => "NIH obligation of additional funding tranches; Phase 1/2 trial results press releases; FY2027 HHS budget approval"}

{"entity" => "NIH National Cancer Institute", "reason" => "As the contracting agency, any shift in NCI's vaccine research priorities or budget cuts could impact Leidos' contract value.", "trigger" => "NCI strategic plan updates; Congressional appropriations for NCI; CR or government shutdown risk"}