Contract Deobligations Alert — August 28, 2026

OptumRx, a UnitedHealth subsidiary, secured a $159.2 million firm-fixed-price delivery order from the VA for pharmacy benefit management, covering a four-month period. The full-and-open competition win reinforces UnitedHealth’s market position in federal healthcare.

Lockheed Martin received a $99.8 million cost-plus-fixed-fee contract for Mars Ascent Vehicle R&D, with $96.4 million already outlayed (97% execution). The low-risk pricing structure and high outlay rate indicate stable, predictable revenue.

PAE Aviation, an Amentum subsidiary, received a $201.7 million cost-plus-incentive-fee contract from CBP for aviation maintenance, awarded non-competitively. The sole-source nature signals a strong incumbent position and specialized capability.

IBM’s $580.4 million FEMA delivery order for EADIS software has a negative total outlay ($-23,548), indicating no funds have been disbursed. This raises questions about contract activity or potential termination, despite the large headline value.

Hensel Phelps’ $374.9M firm-fixed-price contract for the Raul Hector Castro Land Port of Entry carries medium pricing risk over a nearly six-year performance period (2026-2032). Cost overruns in construction materials or labor in the Arizona border region could compress margins.

The IBM $580.4M FEMA contract (2008-2016) shows negative outlays, suggesting the contract may be inactive or terminated. This creates a risk of overstated backlog for IBM in federal IT services.

Peraton’s $80.9M CMS Medicare claims processing contract is time-and-materials, exposing it to cost variability. Additionally, CMS modernization initiatives could replace the legacy MCS system, threatening contract longevity beyond 2027.

All six contracts are civilian-agency awards (DHS, GSA, VA, NASA, HHS). No defense-related contracts were recorded, indicating a complete absence of DOD exposure in this period.

PAE/Amentum’s $201.7M sole-source DHS aviation maintenance contract suggests a strong incumbent position. Investors should watch for option exercises that could increase total value to $209.97M and extend the performance period beyond September 2021.

OptumRx’s $159.2M VA PBM delivery order is a short-term win, but additional delivery orders under the same vehicle could extend revenue. The VA’s continued focus on pharmacy benefit management suggests sustained spending.

Lockheed Martin’s $99.8M NASA Mars Ascent Vehicle contract has options that could bring total value to $274.4M. NASA’s Mars Sample Return mission budget updates could trigger option exercises.

Hensel Phelps’ $374.9M GSA border port contract reflects sustained federal investment in border infrastructure. Follow-on awards at the same port post-2032 could provide additional revenue.

Four of six contracts are for IT services or infrastructure construction, totaling over $1.1 billion. DHS (FEMA, CBP), GSA, VA, and CMS all show significant outlays, indicating sustained civilian agency investment.

Lockheed Martin’s $99.8M NASA Mars Ascent Vehicle contract, with 97% outlayed, exemplifies how cost-plus R&D contracts provide low-risk, predictable revenue for large primes. The space science budget remains a durable funding source.

PAE/Amentum’s $201.7M non-competitive DHS aviation maintenance contract highlights the value of specialized capabilities and incumbency in federal aviation sustainment.

{"entity" => "IBM", "reason" => "The $580.4M FEMA contract shows negative outlays, questioning revenue realization. Any modification or termination announcement would materially affect IBM’s federal backlog.", "trigger" => "Contract modification or termination announcement from FEMA"}

{"entity" => "UnitedHealth Group (OptumRx)", "reason" => "The $159.2M VA PBM delivery order is a short-term win. Additional delivery orders or a re-compete for the VA PBM contract would signal sustained revenue.", "trigger" => "Additional VA PBM delivery orders or re-compete announcement"}

{"entity" => "Lockheed Martin", "reason" => "The $99.8M NASA Mars Ascent Vehicle contract has options worth up to $274.4M. Option exercise would confirm program continuity.", "trigger" => "NASA option exercise announcement or Mars Sample Return budget update"}

{"entity" => "Hensel Phelps Construction", "reason" => "The $374.9M GSA border port contract carries medium fixed-price risk. Cost overruns or delays would impact margins.", "trigger" => "GSA outlay data and construction cost indices for Arizona"}