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Federal IT & Cybersecurity Contracts — October 22, 2026

Federal IT & Cybersecurity Contracts

By Gunpowder Editorial ·

3 total filings analysed

Executive Summary

Three federal IT and cybersecurity contracts totaling $66,862,598 in obligations were reviewed, all civilian (0 of 3 defense-related), spread across HHS/CMS, DHS/USCIS, and HHS/NIH. The dominant theme is civilian health and immigration-related IT services, awarded primarily through small business set-asides and time-and-materials vehicles.

All three signals are rated neutral (average strength 3.0/10, materiality 2-3/10), reflecting modest individual scale and no publicly traded parent identified for any recipient. The highest-materiality award is KYC Advisors LLC's $22,511,725 USCIS DevSecOps order (materiality 3/10), though it is early in performance with only $6,590,471 (about 29%) outlayed. The key watch item is option exercise across all three contracts, since each shows only 27-33% of its potential ceiling currently obligated, meaning most long-term value is contingent on future government action.

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Tracking the trend? Catch up on the prior Federal IT & Cybersecurity Contracts digest from October 21, 2026.

Investment Signals (3)

  • KYC Advisors LLC: $22,511,725 USCIS DevSecOps Award Early in Performance (LOW)
    ▲

    KYC Advisors LLC (Reston, VA) holds a $22,511,725 obligation from USCIS against an $82,909,800 ceiling, with $6,590,471 outlayed to date. The small business total set-aside structure limits competition to eligible small firms, so the award reflects set-aside eligibility rather than a dominant competitive position.

  • DYNANET CORPORATION: $21,278,158 NIH IT Program Support Order (LOW)
    ▲

    DynaNet Corporation (Elkridge, MD) received a time-and-materials NIH delivery order with $21,278,158 obligated against a $64,887,919 ceiling, with $4,134,410 outlayed. Full and open competition with no set-aside means the award depends on execution rather than preferential access.

  • Healthcare Management Solutions, LLC: $23,072,715 CMS Services Delivery Order (LOW)
    ▲

    Healthcare Management Solutions, LLC (Fairmont, WV) received a $23,072,715 CMS time-and-materials order against a $39,936,031 base-plus-options ceiling, with $10,107,638 outlayed (about 44%), the most advanced spend rate in this set. The award is a small business set-aside, so it does not indicate a sole-source or large-prime position.

Risk Flags (3)

  • Execution [MEDIUM RISK]
    ▼

    All three awards are time-and-materials or hybrid pricing, which carries medium pricing risk per the data. Cost overruns or re-pricing could compress margins for KYC Advisors LLC, DynaNet Corporation, and Healthcare Management Solutions, LLC.

  • Budget [MEDIUM RISK]
    ▼

    Available data contains no budget trend information for CMS, USCIS, or NIH IT acquisition, so whether future option funding will be appropriated cannot be determined. Continuing resolution risk applies to civilian agencies whose fiscal year ends September 30.

  • Concentration [LOW RISK]
    ▼

    Each of the three contracts is held by a different small private firm with no identified public parent, so the set has no single-name concentration risk, though all three are small-business set-aside or small-business-favored awards dependent on continued eligibility.

Opportunities (3)

  • ◆

    KYC Advisors LLC's $82,909,800 USCIS ceiling leaves roughly $60 million in potential value unobligated, which would expand the contract if options are exercised and task orders are issued.

  • ◆

    DynaNet Corporation's $64,887,919 NIH ceiling leaves about $43.6 million in unobligated potential value that could be realized through option exercise and additional task orders.

  • ◆

    Three set-aside or small-business-favored awards, including KYC Advisors LLC's total small business set-aside and Healthcare Management Solutions, LLC's 8(a)/SDB designations, point to a continued federal pipeline for small disadvantaged firms in civilian IT services.

Sector Themes (2)

  • ◆

    All three awards are civilian, spanning HHS (CMS and NIH) and DHS (USCIS), with combined obligations of $66,862,598 and no defense-related awards in the set. The work centers on application development, DevSecOps, and computer systems design support.

  • ◆

    Two of three awards are small business total set-asides or small-business-restricted, and the third is full and open without set-aside, showing a pattern of set-aside-favored procurement in these civilian IT awards.

Watch List (4)

  • 👁

    {"entity" => "KYC Advisors LLC", "reason" => "$22,511,725 USCIS obligation with only $6,590,471 (about 29%) outlayed and $60 million+ of ceiling unobligated, indicating a large remaining opportunity and option-exercise dependence.", "trigger" => "Option exercise before 2027-10-31 current end date"}

  • 👁

    {"entity" => "DYNANET CORPORATION", "reason" => "$21,278,158 NIH obligation against a $64,887,919 ceiling with only $4,134,410 (about 19%) outlayed, a relatively low spend rate for a contract running since 2025-09-30.", "trigger" => "Outlay pace and option exercise before 2027-09-29"}

  • 👁

    {"entity" => "Healthcare Management Solutions, LLC", "reason" => "$23,072,715 CMS obligation is the most advanced in outlay terms (about 44%), with a current end of 2027-08-28 that depends on option exercise to reach 2029-08-28.", "trigger" => "CMS option exercise decision ahead of 2027-08-28"}

  • 👁

    {"entity" => "Civilian IT Services Sector (HHS, DHS)", "reason" => "Data contains no budget trend information, so whether HHS and DHS IT spending is rising or falling cannot be determined from these three awards.", "trigger" => "FY2027 appropriations and any continuing resolution passed before October 1, 2026"}

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