Contract Deobligations Alert — July 01, 2026

A single $1.24B defense-related contract from the Department of Transportation to Harris Corporation represents 75% of total obligations, with a bullish signal strength of 7/10 and materiality of 8/10, indicating strong government demand for Harris's capabilities.

Leidos won a $113.5M cost-plus-fixed-fee delivery order from NIH for agile software development, with options that could double the value to $247.1M, reducing profit risk and aligning with federal digital modernization priorities.

Amentum Services' $204M cost-plus-fixed-fee contract for Kennedy Space Center lab support ends August 2023, with $154M already outlayed, creating a near-term catalyst for Jacobs Engineering (parent) as the recompete approaches.

The firm-fixed-price contract for Atterbury Job Corps Center is near fully funded ($103.8M of $115.5M) but ends November 2024 with no extension options, creating revenue uncertainty for MTC unless the recompete is won.

The Harris contract from 2011 has unknown pricing structure and competition signal, creating execution risk if the contract is fixed-price or if protest vulnerability exists, given its age and size.

One contract to Harris Corporation accounts for $1.24B of $1.66B total, creating extreme concentration risk for any investor exposed to Harris if the contract faces budget cuts or protest.

All four contracts are civilian (DOT, NASA, HHS, DOL), making them more susceptible to CR-related funding delays or cuts compared to defense contracts, particularly for the Harris and MTC awards.

The DOL Job Corps contract ends November 2024 with no options, and the original award was full-and-open competition, meaning MTC must win a recompete to retain the $19.2M annual revenue stream.

Leidos' $113.5M NIH delivery order includes options that could more than double the contract value, providing a clear near-term growth catalyst if NIH exercises them for the eRA grants management system.

The $204M NASA contract ending August 2023 creates a recompete opportunity for Amentum/Jacobs to retain the $34M annual revenue stream, with NASA's stable testing lab budget supporting continuation.

The Atterbury Job Corps Center recompete before November 2024 represents a $115.5M opportunity for MTC or competitors, with DOL Job Corps being a longstanding program with consistent funding.

Leidos' $113.5M NIH contract for agile software development and Amentum's $204M NASA lab support contract demonstrate sustained civilian agency investment in IT modernization and professional services, despite budget uncertainty.

The Harris Corporation $1.24B DOT contract (75% of total) highlights that civilian agencies can award very large, multi-year contracts that rival defense awards in size, but with less transparency on pricing and competition.

Management & Training Corporation's $103.8M DOL Job Corps contract, fully funded through options, demonstrates the program's consistent funding and creates a predictable revenue stream for operators, though recompete risk remains.

{"entity"=>"Harris Corporation", "reason"=>"$1.24B DOT contract lacks pricing and competition data, creating material uncertainty about margin and protest risk.", "trigger"=>"Contract modification or GAO protest filing; DOT budget request for FY2027"}

{"entity"=>"Jacobs Engineering Group (via Amentum Services)", "reason"=>"$204M NASA contract ending August 2023; recompete will determine if $34M annual revenue stream continues.", "trigger"=>"NASA recompete solicitation expected mid-2023"}

{"entity"=>"Leidos, Inc.", "reason"=>"$113.5M NIH contract with options to $247.1M; option exercise is key growth catalyst.", "trigger"=>"NIH option exercise decision within 12-18 months"}

{"entity"=>"Management & Training Corporation", "reason"=>"$103.8M DOL Job Corps contract expires November 2024; recompete outcome critical.", "trigger"=>"Recompete solicitation release expected 2024"}