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Mega Contracts Monitor ($100M+) — May 05, 2026

Mega Contracts Monitor ($100M+)

By Gunpowder Editorial ·

1 total filings analysed

Executive Summary

The single mega contract in this period totals $242,713,808 in obligations, entirely civilian with zero defense exposure, centered on IRS IT Strategy and Modernization via a firm fixed price delivery order to FCN, INC. FCN, INC., a woman-owned small business, secured this full and open competition win for Broadcom software licenses and maintenance, with $240,260,396 already outlayed signaling strong execution amid a current performance period ending November 30, 2026. The highest-conviction bullish signal is FCN's rapid progress on this $242M obligation (potential $454M with options), highlighting competitive strength in IT application support. A key risk is high pricing/execution risk inherent to the firm fixed price structure, with investors watching option exercises and outlay progress beyond $240M.

Tracking the trend? Catch up on the prior Mega Contracts Monitor ($100M+) digest from May 04, 2026.

Investment Signals (1)

  • FCN, INC. Wins $242M IRS Broadcom Software Maintenance Delivery Order (MEDIUM)

    FCN, INC. was awarded a $242,713,808 firm fixed price delivery order by IRS IT Strategy and Modernization on December 7, 2022, with $240,260,396 already outlayed, demonstrating rapid execution on a 4-year period ending November 30, 2026 (potential $454M ceiling). This full and open competition victory for a woman-owned small business underscores strength in NAICS 541519 IT services.

Risk Flags (1)

  • Execution [HIGH RISK]

    High pricing risk for FCN, INC. on the $242M firm fixed price IRS delivery order, as rapid $240M outlays to date could pressure margins if costs escalate before November 30, 2026 end date.

Opportunities (1)

  • FCN, INC. has potential for $211,929,179 in additional value via option exercises on the IRS Broadcom software maintenance contract (current $242M obligation, $454M ceiling).

Sector Themes (1)

  • FCN, INC.'s $242M obligation (PSC DA01) for Broadcom licenses highlights IRS prioritization of IT application support, with near-full $240M outlays signaling effective spending in a woman-owned small business win.

Watch List (2)

  • 👁

    {"entity"=>"FCN, INC.", "reason"=>"$242M IRS contract with $240M outlayed and $454M potential; tracks execution on firm fixed price structure.", "trigger"=>"option exercise notifications; outlay progress beyond $240M; current end date (Nov 30, 2026)"}

  • 👁

    {"entity"=>"IT services sector", "reason"=>"Full and open competition win by woman-owned small business FCN, INC. signals IRS IT modernization demand.", "trigger"=>"IRS budget cycle for similar NAICS 541519 awards"}

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