FIVE RIVERS ANALYTICS, LLC: $16.0M Department of Transportation Contract
Summary
The FAA exercised a $16M option year on a technical support services contract with Five Rivers Analytics, a Leidos subsidiary. This is a routine renewal with minimal financial impact on Leidos (LDOS), but it signals continued stability in FAA IT services spending. No major stock catalyst.
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Key Takeaways
- 1.Leidos (LDOS) received a $16M FAA option year renewal for technical support services.
- 2.The contract is financially immaterial to Leidos, representing ~0.1% of annual revenue.
- 3.No related legislation directly drives this award; it is a routine budget execution action.
- 4.The award reinforces Leidos' stable position in FAA IT services but is not a stock catalyst.
Market Implications
This contract is a non-event for the broader market. For Leidos (LDOS), it is a routine renewal that will not move the stock. Investors should view this as a minor positive signal of contract stability within Leidos' Civil segment, but it does not change the investment thesis for the company. No other publicly traded companies are directly impacted.
Full Analysis
The Federal Aviation Administration (FAA) has exercised Option Year II of a delivery order (6973GH-24-D-00040) with Five Rivers Analytics, LLC, valued at $16.0 million for the period May 1, 2026 through April 30, 2027. The contract covers technical support services for the FAA, a core function that ensures the agency's operational systems remain maintained and modernized.
Five Rivers Analytics, LLC is a wholly owned subsidiary of Leidos Holdings, Inc. (NYSE: LDOS). Leidos is a $16B+ annual revenue defense, aviation, and IT services contractor. This $16M option year represents approximately 0.1% of Leidos' annual revenue, making it financially immaterial to the parent company's overall performance. However, it does demonstrate the stickiness of Leidos' relationship with the FAA, a key client for its Civil business unit.
No related bill signals in the provided database directly authorize or appropriate this specific contract. The contract is funded through the FAA's existing operations budget, not through new legislation. The bills listed are largely neutral and unrelated to aviation or transportation technical services, with the exception of HR8607 (Equitable Transit Oriented Development Support Act) which is neutral and low-impact.
Supply chain beneficiaries are difficult to identify at this level of specificity. Leidos likely subcontracts portions of this work to smaller IT and engineering firms, but no specific subcontractors are named in the award. Potential downstream beneficiaries could include small-cap IT services firms like CACI International (CACI) or Booz Allen Hamilton (BAH) if they are used as subcontractors, but this is speculative.
Historically, FAA technical support contracts are multi-year, cost-plus or fixed-price arrangements that provide steady, predictable revenue for prime contractors like Leidos. These contracts rarely move the stock of a large-cap company like LDOS, but they do contribute to the company's backlog and provide a floor for its Civil segment revenue. The pattern is one of incremental, low-volatility growth rather than a transformative catalyst.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Direct award to a subsidiary of a publicly traded parent company; option year exercise on a technical support services contract for the FAA.
Who must act
Department of Transportation / Federal Aviation Administration (FAA) awarded to Five Rivers Analytics, LLC, a subsidiary of Leidos Holdings, Inc.
What happens
$16.0M in obligated funding for a one-year period (FY2026-2027), representing approximately 0.03% of Leidos' annual revenue (~$16B).
Stock impact
Leidos (LDOS) is a large-cap defense and technology services firm. This is a routine option year renewal on an existing contract. While the dollar amount is small relative to Leidos' total revenue, it reinforces the company's entrenched position in FAA technical support services, a stable, recurring revenue stream within its Civil segment.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
LEIDOS, INC.: $318M Department of Homeland Security Contract
CYKOR LLC: $11.2M Department of Veterans Affairs Contract
LMI CONSULTING, LLC: $16.4M Department of Homeland Security Contract
LEIDOS, INC.: $39.7M Department of Homeland Security Contract
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Contract Details
Recipient
FIVE RIVERS ANALYTICS, LLC
Award Amount
$15,965,382
Awarding Agency
Department of Transportation
Sub-Agency
Federal Aviation Administration
Contract Type
DELIVERY ORDER
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