QTC MEDICAL SERVICES INC: $379M Department of Veterans Affairs Contract
Summary
Leidos Holdings, Inc. ($LDOS) received a $379M delivery order from the Department of Veterans Affairs for medical disability examinations. This contract represents approximately 2.5% of Leidos' annual revenue and reinforces its role as a key VA partner.
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Key Takeaways
- 1.Leidos secures $379M VA contract for medical disability exams.
- 2.The contract represents ~2.5% of Leidos' annual revenue.
- 3.No direct legislative connection in the provided bill signals.
Market Implications
The award underscores the steady demand for VA disability examination services, benefiting Leidos as the prime contractor. While the contract is not transformative for a company of Leidos' size, it provides predictable cash flow and supports the company's health segment. Investors should view this as a positive but routine development for Leidos.
⚡ Government Convergence
Active government convergence in this signal’s sector right now.
Over the last 90 days, 159 separate government actions have converged on VA / Government Health IT. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 117 federal contracts, 21 bills, 19 procurement notices and 2 executive actions — it's the clearest early tell that Washington is committing to va / government health it, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- ContractBOOZ ALLEN HAMILTON INC: $27.5M Department of Veterans Affairs Contract · 2025-01-03
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- ContractHEALTH NET FEDERAL SERVICES, LLC: PROVIDE MANAGED CARE SUPPORT TO THE DEPARTMENT OF DEFENSE TRICARE PROGRAM. CONTRACTOR SHALL ASSIST MILITARY HEALTH SYSTEM IN OPERATING AN IN · 2025-09-03
- ContractOPTUM PUBLIC SECTOR SOLUTIONS, INC.: $1.1B Department of Veterans Affairs Contract · 2025-10-01
- ContractHEALTH NET FEDERAL SERVICES, LLC: IGF::OT::IGF MANAGED CARE SUPPORT SERVICES IN SUPPORT OF THE TRICARE PROGRAM · 2026-03-04
- ContractHUMANA GOVERNMENT BUSINESS INC: TRICARE MANAGED CARE SUPPORT SERVICES CONTRACT, 5TH GENERATION EAST REGION · 2026-03-19
- ContractTRIWEST HEALTHCARE ALLIANCE CORP: TRICARE MANAGED CARE SUPPORT SERVICES CONTRACT, 5TH GENERATION WEST REGION · 2026-03-19
- ContractEVERNORTH FEDERAL SERVICES INC: TRICARE PHARMACY SERVICES · 2026-03-20
- ContractDELL FEDERAL SYSTEMS L.P: $1.1B Department of Veterans Affairs Contract · 2026-08-13
- Executive actionProclamation: Accelerating Access To Veterans' Benefits And Employment Opportunities · 2026-09-08
- Executive actionExecutive Order: Reinvigorating America's Hunting Heritage · 2026-09-17
- ContractDELOITTE CONSULTING LLP: THE ORDER SUPPORTS FINANCIAL MANAGEMENT BUSINESS TRANSFORMATION (FMBT) PROGRAM TO MODERNIZE THE DEPARTMENT OF VETERANS AFFAIRS FINANCIAL AND · 2026-09-18
- ContractIT CONCEPTS, INC.: $397M Department of Veterans Affairs Contract · 2026-09-22
- Procurement noticeTRICARE Medicare Eligible Program Second Generation (TMEP2) · 2026-09-23
Full Analysis
The contract is a delivery order awarded to QTC Medical Services Inc, a subsidiary of Leidos Holdings, Inc., by the Department of Veterans Affairs for FY26 funding of medical disability examinations. This is a continuation of Leidos' long-standing role in providing these exams, which are essential for veterans' benefits processing.
Leidos Holdings, Inc. is the publicly traded parent company. With $15.3B in revenue (FY2025), this $379M contract adds about 2.5% to annual revenue. While not transformative, it is a significant and reliable revenue stream. Leidos' net margin is 1.3%, so the net income impact is approximately $4.9M, though the contract likely has its own margin profile.
No specific bill from the provided list directly authorizes this contract. The funding comes through VA appropriations, which are part of broader veterans' health care legislation. The contract aligns with ongoing support for veterans' disability benefits.
Leidos may subcontract with local healthcare providers and clinics to perform the exams, but specific publicly traded subcontractors are not identified in this award. Potential beneficiaries could include healthcare staffing firms, but without confirmed tickers, the direct impact is focused on Leidos.
Historically, Leidos has held similar VA contracts for disability exams, which provide predictable, recurring revenue and are often renewed. The stock performance of Leidos tends to be stable with such awards, as they are part of the company's core business.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
TRIWEST HEALTHCARE ALLIANCE CORP: $1.2B Department of Veterans Affairs Contract
MULTIPLE RECIPIENTS: $4.0B Department of Health and Human Services Federal Award
LOUSIANA DEPARTMENT OF HEALTH: $16.7B Department of Health and Human Services Grant
GEORGIA DEPARTMENT OF COMMUNITY HEALTH: $14.2B Department of Health and Human Services Grant
MINNESOTA DEPARTMENT OF HUMAN SERVICES: $13.6B Department of Health and Human Services Grant
MINNESOTA DEPARTMENT OF HUMAN SERVICES: $11.3B Department of Health and Human Services Grant
STATE OF RHODE ISLAND DEPARTMENT OF ADMINISTRATION: $2.8B Department of Health and Human Services Grant
DEPARTMENT OF SOCIAL SERVICES CALIFORNIA: $1.5B Department of Health and Human Services Grant
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
Restriction on Entry of Certain Nonimmigrant Workers
This proclamation extends for an additional 12 months the existing restriction on entry of H-1B nonimmigrant workers, which requires a $100,000 payment per petition (with limited exceptions) and is supported by a DHS weighted selection process that prioritizes higher-skilled, higher-paid workers. The action continues to target IT staffing and outsourcing firms that have abused the program, and it maintains the requirement for ongoing rulemakings by DHS and DOL to further reform wage protections and program integrity.
RESTORING AMERICAN SALTWATER ANGLING AND RECREATION
This executive order directs federal agencies (primarily NOAA and the Department of Commerce) to shift fisheries management toward prioritizing recreational fishing over commercial interests by modernizing data collection, replacing outdated mail-in surveys with real-time mobile reporting, and allowing state-collected data to substitute for federal data when error rates are lower. It also mandates reviewing and potentially revising National Standards under the Magnuson-Stevens Act, rescinding regulations that restrict marine access, and launching pilot programs for iconic fisheries like Atlantic striped bass, with the goal of boosting the $1.2 trillion outdoor recreation sector.
Contract Details
Recipient
QTC MEDICAL SERVICES INC
Award Amount
$378,691,285
Awarding Agency
Department of Veterans Affairs
Sub-Agency
Department of Veterans Affairs
Contract Type
DELIVERY ORDER
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