Executive Summary
GSA FEDSIM awarded two cost-plus engineering services contracts (NAICS 541330) totaling $809M obligated value to HII Mission Technologies and CACI-Federal, with combined potential of $1.45B including unexercised options. Both target defense missions (NSIN threat countermeasures, DCGS support) through 2026-2029, signaling robust federal demand amid minimal outlays to date. High subawards ($788M combined across 178 recipients) highlight ecosystem leverage but introduce execution risks.
Tracking the trend? Catch up on the prior Federal Professional Services Contracts digest from December 31, 2025.
Investment Signals(1)
- GSA FEDSIM Defense Engineering Awards Total $1.45B Potential(HIGH)▲
Identical structures via full/open competition deliver $809M obligated now, with $638M options for HII ($814M total) and CACI ($638M total).
Risk Flags(2)
- Execution[HIGH RISK]▼
High subcontractor dependency with $788M subawards (97% of HII obligation, 112% of CACI; 178 total recipients) and minimal/negative outlays to date.
- Execution[MEDIUM RISK]▼
Cost-plus award fee exposes primes to government cost oversight and fee discretion; options ($638M unexercised) hinge on evaluations.
Opportunities(2)
- ◆
$638M combined unexercised options (HII $216M, CACI $422M) plus potential extensions to 2027/2029.
- ◆
$788M subawards across 178 firms create tier-2 supplier upside in defense engineering ecosystem.
Sector Themes(1)
- ◆
FEDSIM delivery orders fund NAICS 541330 for NSIN/DCGS missions, with long-duration (to 2029) cost-plus structures.
Watch List(3)
- 👁
{"entity"=>"Huntington Ingalls Industries (HII)", "reason"=>"$814M potential backlog with $547M subs; earliest 2026 end date.", "trigger"=>"option exercise or suboutlay >10% of obligation"}
- 👁
{"entity"=>"CACI International", "reason"=>"$638M potential with longest horizon to 2029; $422M options upside.", "trigger"=>"Warner Robins performance updates or option notices"}
- 👁
{"entity"=>"GSA FEDSIM Pipeline", "reason"=>"Repeat vehicle for high-value defense engineering awards.", "trigger"=>"New NSIN/DCGS-related solicitations"}
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