All HHS Contracts — February 18, 2026

Four contracts totaling $912M (85% of stream) to Palmetto GBA, Leidos, Softrams, Nimbus for MAC, end-user IT, HPMS, and requirements engineering, with $689M outlayed and multi-year terms to 2029.

$155M awards to Potomac Electric and Incentive Technology (ICF sub) for substation upgrade and CBIIT digital support, fully obligated with $38M outlayed and terms to 2028.

Firm fixed price structure across 4 contracts ($392M) exposes Palmetto GBA, Softrams, Nimbus, Potomac to cost overruns on long-term IT/utilities work.

Unexercised options cap upside at $683M portfolio-wide; Incentive contract ended 2023 with only 50% outlayed, risking deobligation.

$683M in unexercised options across 5 contracts, plus extensions to 2028-2029, building on $777M outlays.

Small/disadvantaged businesses (Softrams, Nimbus) won $147M via set-asides/full competition, signaling access to CMS IT pipelines.

CMS dominates with $912M for admin/IT supporting Medicare Advantage/Part D/HPMS, low-risk cost-plus/FFP structures.

$95M non-competitive utilities upgrade plus $60M CBIIT IT indicates infrastructure push.

{"entity"=>"Palmetto GBA", "reason"=>"Largest award ($616M obligated, $1.3B potential) drives 58% of stream value with $473M outlayed.", "trigger"=>"Option exercises pushing to $1.3B or award fee performance updates"}

{"entity"=>"ICF International (via Incentive sub)", "reason"=>"Post-2023 end date with $30M outlayed vs $60M obligated risks deobligation but offers CBIIT follow-on potential.", "trigger"=>"Deobligation notice or new NCI awards"}

{"entity"=>"CMS Medicare IT small caps (Softrams, Nimbus)", "reason"=>"$147M wins signal scalability for HUBZone/8(a) firms in high-value pipelines.", "trigger"=>"Follow-on HPMS/requirements contracts"}