Federal IT & Cybersecurity Contracts — February 22, 2026

SERCO and Leidos secure $1.17B combined via full/open competition for civilian IT support, with SERCO at $1.05B obligation and Leidos at $136M (potential $173M).

SERCO base+options at $1.07B (+$15M) and Leidos at $173M (+$37M) indicate near-term revenue potential if exercised.

Firm-fixed-price terms expose contractors to full cost overruns without reimbursement.

SERCO contract ends 2023-06-30; Leidos shows -$41K outlays signaling potential delays.

SERCO's 384 subawards totaling $346M create subcontractor dependency.

$51M combined options value exercisable for revenue boost.

Follow-on contracts post-2023/2026 endings in high-demand CMS eligibility and HUD contact centers.

Full/open awards to non-small primes for NAICS 54151X services (systems design, data centers) total $1.17B, with HHS/GSA prioritizing execution-proven contractors.

SERCO's $346M/384 subawards highlight prime reliance on networks for scale.

{"entity"=>"SERCO INC", "reason"=>"Dominant $1B+ exposure with 2023 end-date and subaward dependency.", "trigger"=>"extension award or follow-on RFP"}

{"entity"=>"Leidos, Inc.", "reason"=>"$173M ceiling with stalled outlays (-$41K).", "trigger"=>"outlay >$10M quarterly or options exercise"}

{"entity"=>"Federal IT (NAICS 54151X)", "reason"=>"Concentration in civilian support signals trend.", "trigger"=>">$500M new awards in 90 days"}