LEIDOS, INC.: $318M Department of Homeland Security Contract
Summary
Leidos Holdings ($LDOS) secured a $318M contract from CBP for traveler vetting software, representing ~2.1% of annual revenue. This award reinforces Leidos' position in homeland security IT and provides a multi-year revenue stream.
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Key Takeaways
- 1.Leidos ($LDOS) wins $318M CBP contract for traveler vetting software, ~2.1% of annual revenue.
- 2.Multi-year contract (2024-2027) provides revenue visibility for Leidos' Civil segment.
- 3.No direct legislative connection, but aligns with homeland security spending trends.
Market Implications
Leidos is the primary beneficiary, with the contract boosting its backlog and supporting its Civil segment. The stock may see modest positive sentiment from this award, but given its size relative to $15.3B revenue, the impact is limited. Investors should monitor Leidos' Civil segment performance and future task orders under this BPA. No other public companies are directly impacted, though subcontractors like CACI ($CACI) could see indirect benefits.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 167 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 — 119 federal contracts, 23 procurement notices, 17 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
- ContractBCCG A JOINT VENTURE: $658M Department of Homeland Security Contract · 2026-09-15
- BillProviding for consideration of the bill (H.R. 4393) to secure the border and reform the immigration laws. · 2026-09-17
- BillTo establish a Federal grant program to reimburse certain States for the costs incurred and damage caused by widespread deployment of Federal immigration officials, and for other purposes. · 2026-09-17
Full Analysis
Leidos, Inc., a subsidiary of Leidos Holdings, Inc., has been awarded a $318M BPA Call contract by the U.S. Customs and Border Protection (CBP) for Travelers Processing Vetting Software Task Order 7. This contract runs from September 2024 to May 2027, providing a steady revenue stream over nearly three years. Leidos is a leading provider of technology solutions for defense, intelligence, and civil markets, and this award specifically supports its Civil segment, which focuses on homeland security and border management. The $318M award represents approximately 2.1% of Leidos' FY2025 annual revenue of $15.3B, making it a meaningful but not transformative addition. The company's financial health is solid, with $641M in cash and $13.0B in total assets, allowing it to execute on such contracts without strain. The contract is a task order under an existing BPA, indicating a strong, ongoing relationship with CBP. While no specific legislation is directly tied to this award, the broader trend of increased homeland security spending supports such contracts. Supply chain beneficiaries could include smaller IT and software firms that subcontract with Leidos, such as CACI International ($CACI) or Booz Allen Hamilton ($BAH), though specific subcontractors are not named. Historically, Leidos has seen consistent revenue growth from its Civil segment, and this award aligns with that pattern. The contract is a positive signal for Leidos' backlog and future revenue, but given its size relative to total revenue, the impact is moderate.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
LEIDOS, INC.: $422M Department of Homeland Security Contract
LEIDOS, INC.: $18.8M Department of Homeland Security Contract
LEIDOS, INC.: $39.7M Department of Homeland Security Contract
LEIDOS BIOMEDICAL RESEARCH INC: $342M Department of Health and Human Services Contract
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
$318,445,310
Awarding Agency
Department of Homeland Security
Sub-Agency
U.S. Customs and Border Protection
Contract Type
BPA CALL
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