Contract Deobligations Alert — May 21, 2026

Leidos Holdings subsidiary wins a cost-plus-fixed-fee delivery order from NIH for R&D facility operations, providing a stable $64.6M annual revenue stream with low pricing risk.

Peraton, a Veritas Capital portfolio company, secures a time-and-materials delivery order for custom software to combat healthcare fraud, a politically supported, high-budget priority at CMS.

The HUBZone set-aside firm-fixed-price contract has $52.5M outlayed (65% executed) with no options beyond August 2024, creating a potential loss of $16.1M annual revenue.

GDIT's cost-plus-award-fee delivery order for enterprise IT management support provides a long-term revenue stream through 2033, but full-and-open competition limits moat and cost-plus caps profit upside.

The 2011-2021 cost-plus-fixed-fee biotech R&D contract is fully obligated but virtually unfunded, indicating minimal financial contribution to Chimerix despite the large ceiling.

Leidos Biomedical Research's $432.5M NIH contract has only $1.15M outlayed (0.3%), indicating early-stage execution risk and potential scope adjustments or delays.

90.7% of total obligations ($685.3M) are from HHS, creating sector concentration risk for investors exposed to civilian agencies, especially if HHS budget faces cuts or CR uncertainty.

SOFTRAMS LLC's $80.7M CMS IT contract expires August 2024 with no options, exposing the small business to recompete risk against larger IT services firms.

Peraton's $95.1M CMS FPS2 contract is time-and-materials, introducing cost risk if CMS funding for fraud prevention is reduced or delayed under a CR.

Leidos' $432.5M NIH GOCO facility contract positions the company for follow-on work in life sciences R&D operations, a stable HHS priority area with potential for scope expansion.

General Dynamics IT's $1.25B EMITS 2 ceiling from GSA offers significant upside as incremental obligations are funded, with current $70.6M representing only 5.6% of the ceiling.

SOFTRAMS LLC's HUBZone set-aside contract with CMS demonstrates policy alignment that could lead to sole-source or preferential follow-on awards, despite the August 2024 expiration.

Two contracts totaling $175.7M (Peraton's $95.1M CMS FPS2 and SOFTRAMS' $80.7M CMS IT support) highlight sustained HHS investment in custom software and IT operations for healthcare fraud detection and legacy system maintenance.

Leidos' $432.5M NIH GOCO contract (64% of total digest value) underscores the reliability of government-owned, contractor-operated R&D facilities as long-term, cost-plus revenue streams with low margin risk.

General Dynamics IT's $1.25B EMITS 2 contract has only $70.6M obligated (5.6%), creating significant upside potential as options are exercised through 2033, but also execution risk if GSA funding lags.

{"entity"=>"SOFTRAMS LLC", "reason"=>"$80.7M CMS IT contract expires August 2024 with no options; potential revenue cliff for this small HUBZone firm.", "trigger"=>"Recompetition announcement or contract extension decision before August 2024"}

{"entity"=>"Leidos Holdings, Inc.", "reason"=>"$432.5M NIH GOCO contract has only $1.15M outlayed; execution pace and scope adjustments are key to revenue recognition.", "trigger"=>"Quarterly outlay rate reports from NIH; contract modifications or extensions beyond May 2026"}

{"entity"=>"General Dynamics Information Technology", "reason"=>"$1.25B EMITS 2 ceiling with $70.6M obligated; option exercises will drive long-term revenue.", "trigger"=>"GSA option exercise announcements; incremental funding obligations"}

{"entity"=>"Peraton Inc.", "reason"=>"$95.1M CMS FPS2 contract with time-and-materials pricing; cost risk and CMS budget allocations are key.", "trigger"=>"CMS budget requests for fraud prevention; CR resolution impact on HHS funding"}