LEIDOS, INC.: $18.5M Department of Homeland Security Contract
Summary
Leidos, Inc. received an $18.5M delivery order from CBP for multi-energy portal systems, reinforcing its role in border security technology. The contract is small relative to Leidos' $15B revenue but signals sustained demand. No directly related legislation was identified, though broader defense and homeland security spending trends support the award.
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Key Takeaways
- 1.Leidos secured an $18.5M CBP contract for multi-energy portal systems, a core border security technology.
- 2.The contract is small (~0.12% of revenue) but signals sustained demand for non-intrusive inspection systems.
- 3.No directly related legislation was identified, but broader defense/homeland security spending trends support the award.
Market Implications
For Leidos (LDOS), this contract is a routine but positive addition to its backlog, reinforcing its leadership in border security technology. The stock may see a modest uptick as investors view it as a sign of continued CBP modernization spending. Supply chain beneficiaries like OSI Systems (OSIS) and L3Harris (LHX) could also see indirect benefits, though the impact is minimal. The contract does not change Leidos' fundamental outlook but supports a bullish sentiment for defense and homeland security contractors.
⚡ Government Convergence
Active government convergence in this signal’s sector right now.
Over the last 90 days, 169 separate government actions have converged on Border / Immigration Enforcement. 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 — 123 federal contracts, 23 procurement notices, 15 bills and 8 executive actions — it's the clearest early tell that Washington is committing to border / immigration enforcement, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- BillMichel O. Maceda Memorial Act · 2024-12-11
- BillA bill to expand the sharing of information with respect to suspected violations of intellectual property rights in trade. · 2025-08-01
- ContractBARNARD SPENCER JOINT VENTURE: $634M Department of Homeland Security Contract · 2025-09-19
- ContractFISHER SAND & GRAVEL CO: $2.8B Department of Homeland Security Contract · 2025-12-17
- ContractSPENCER CONSTRUCTION LLC: $1.1B Department of Homeland Security Contract · 2026-03-18
- ContractBARNARD CONSTRUCTION COMPANY, INCORPORATED: BORDER WALL CONSTRUCTION FOR EL PASO SECTOR - EPT-5 · 2026-04-24
- ContractSOUTHWEST VALLEY CONSTRUCTORS CO: $1.7B Department of Homeland Security Contract · 2026-05-11
- ContractSLS FEDERAL SERVICES LLC: $1.3B Department of Homeland Security Contract · 2026-06-26
- Executive actionProclamation: Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Dairy · 2026-09-08
- Executive actionProclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages · 2026-09-08
- Executive actionProclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the United States with Respect to Motor Vehicles · 2026-09-08
- BillProviding for consideration of the bill (H.R. 4393) to secure the border and reform the immigration laws. · 2026-09-17
- ContractWIDEPOINT INTEGRATED SOLUTIONS CORP: $23.2M Department of Homeland Security Contract · 2026-09-18
- ContractGRANITE CONSTRUCTION COMPANY: $199M Department of Homeland Security Contract · 2026-09-18
Full Analysis
The Department of Homeland Security, through U.S. Customs and Border Protection, awarded Leidos, Inc. an $18.5M delivery order for multi-energy portal systems and services. These systems are used for non-intrusive inspection of cargo and vehicles at ports of entry, a critical capability for border security. Leidos is a publicly traded company (NYSE: LDOS) with approximately $15B in annual revenue, making this contract about 0.12% of revenue — a routine but positive addition to its backlog. The contract runs from April 2026 to April 2027, providing a one-year revenue stream. Leidos' Defense Solutions and Security Products segments benefit directly, as the company is a leading provider of detection and inspection technologies. While no specific bill in the provided list directly authorizes this contract, the broader legislative environment includes several defense and technology bills (e.g., S4342 extending FISA surveillance, SRES716 on China policy) that support continued investment in homeland security technology. Supply chain beneficiaries include smaller-cap companies like OSI Systems (NASDAQ: OSIS) through its Rapiscan subsidiary, which competes in the same portal systems market, and L3Harris Technologies (NYSE: LHX) as a potential subcontractor for sensor integration. Historically, CBP's multi-year procurement cycles for inspection systems have provided steady revenue for Leidos and its peers, with contract values typically ranging from $10M to $50M per order. This award is consistent with that pattern and reinforces Leidos' competitive position.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
RAPISCAN SYSTEMS INC: $15.0M Department of Homeland Security Contract
LEIDOS, INC.: $18.8M Department of Homeland Security Contract
LEIDOS, INC.: $18.8M Department of Homeland Security Contract
To amend the Homeland Security Act of 2002 to direct the Secretary of Homeland Security, acting through the Commissioner of U.S. Customs and Border Protection, to implement large-scale, non-intrusive inspection technology at land ports of entry identified as high risk, and for other purposes.
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
LEIDOS, INC.
Award Amount
$18,480,970
Awarding Agency
Department of Homeland Security
Sub-Agency
U.S. Customs and Border Protection
Contract Type
DELIVERY ORDER
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