Contract Deobligations Alert — December 22, 2025

Average 49% outlay ($481M of $977M) across contracts signals strong federal commitment and contractor delivery, with all fully obligated base+options.

$765M (78%) in IT/data, facilities support, and consulting contracts extend to 2026+ with $346M remaining outlays.

Firm-fixed-price (4/5 contracts) exposes contractors to cost overruns on ~$496M remaining outlays amid long periods (to 2029 potential).

Geopolitical exposure in Iraq facilities support amid sustainment phase.

T&M structure and small biz set-aside mismatch invite audits; subawards ($39M total) add dependencies.

~$496M remaining outlays provide near-term revenue visibility through 2026-2027.

$250M+ unexercised options (e.g., Planet $103M, Deloitte $153M) plus extensions to 2027-2029.

80% value ($765M) in IT/data centers, telecom, and consulting underscores sustained demand through 2026+.

Construction ($211M) and Iraq support ($192M) highlight multi-year federal infrastructure spend.

{"entity"=>"Jacobs Engineering (PAE sub)", "reason"=>"$192M Iraq contract with low 20% outlay and $154M remaining amid geopolitics.", "trigger"=>"option exercise to $197M or early termination"}

{"entity"=>"Planet Technologies", "reason"=>"$189M obligated + $103M options; small biz set-aside mismatch on 87% outlay.", "trigger"=>"extension to 2029 or protest resolution"}

{"entity"=>"Eagle Harbor", "reason"=>"$199M data center deal with $111M remaining for 8(a) small disadvantaged biz.", "trigger"=>"outlay acceleration pre-2026 end"}