Mega Contracts Monitor ($100M+) — June 24, 2026

Leidos won a full-and-open competition from CMS for a $167M time-and-materials delivery order to host over 300 business applications, with potential value up to $217M through 2027. This signals Leidos' strength in federal health IT services, though the time-and-materials pricing structure introduces moderate risk.

Caltech received a cost-no-fee contract from NASA for the SPHEREx all-sky near-infrared survey satellite, valued at up to $111M over 10 years (2018-2028). As a nonprofit, Caltech generates no profit, limiting direct equity upside, but the award validates its research capabilities.

Leidos' $167M CMS contract is time-and-materials pricing, which carries moderate risk if costs exceed estimates or if CMS exercises options at lower margins.

The Caltech $107.7M NASA contract is cost-no-fee, meaning Caltech bears cost overrun risk without profit. With $93.5M already outlaid by 2023, most funds are disbursed, limiting future revenue visibility.

Leidos' $167M CMS contract demonstrates continued investment by HHS/CMS in IT hosting and support for major healthcare systems, creating potential for follow-on work and recompetes.

NASA's ongoing investment in space-based scientific surveys, evidenced by the $107.7M SPHEREx contract, suggests stable or growing funding for astrophysics missions, benefiting research institutions and their partners.

The $167M Leidos CMS contract underscores ongoing federal investment in modernizing healthcare IT infrastructure, with CMS hosting over 300 business applications.

The $107.7M Caltech SPHEREx contract reflects NASA's commitment to long-term astrophysics missions, with a 10-year performance period through 2028.

{"entity"=>"Leidos, Inc.", "reason"=>"Leidos' $167M CMS contract provides multi-year revenue visibility through 2027, but option exercises and funding pace are key to realizing full value.", "trigger"=>"Option exercise decisions by CMS in 2025-2026; total outlayed amount relative to obligation"}

{"entity"=>"California Institute of Technology", "reason"=>"The $107.7M NASA SPHEREx contract runs through 2028, but most funds are already outlaid; future NASA funding decisions for astrophysics will determine follow-on work.", "trigger"=>"NASA follow-on awards for SPHEREx-related work after 2028; published research outcomes from the mission"}