FY2026's Largest Federal Contracts: Leidos Biomedical Research Obligated $432M
Most federal contracts fall well under the $1 million mark. But when agencies need massive infrastructure overhauls or critical health research, single-award obligations can stretch into the hundreds of millions. In FY2026, the federal government is moving massive capital into aviation systems, biomedical research, and IT modernization.
Bottom line: The largest single federal contracts obligated in FY2026 are dominated by health and aviation, led by a $432.4 million research award to Leidos Biomedical Research and a $370.6 million radar system contract to Indra Air Traffic.
The Biggest Government Contracts in 2026
Federal agencies have already locked in several nine-figure obligations for the current fiscal year. These awards represent the largest single federal contracts in FY2026, spanning defense, health, and transportation.
Health and Aviation Dominate Top Federal Procurement in FY2026
The absolute peak of FY2026 procurement belongs to biomedical research and air traffic control infrastructure.
LEIDOS BIOMEDICAL RESEARCH INC secured the single largest obligation on the board. The Department of Health and Human Services (specifically the National Institutes of Health) obligated $432.4 million to the Maryland-based contractor. This funding targets ongoing COVID-19 case studies and broader research and development in the life sciences.
Aviation infrastructure follows closely behind. The Department of Transportation's Federal Aviation Administration (FAA) awarded $370.6 million to Kansas-based INDRA AIR TRAFFIC, INC.. This massive contract funds a radar system replacement as part of the FAA's next-generation air traffic control system.
The FAA didn't stop there. They also obligated $208.3 million to TEXTRON AVIATION INC to procure modified commercial King Air 360ER aircraft.
IT Modernization and System Integration
Federal agencies are heavily investing in computing infrastructure and system integration in FY2026. The Centers for Medicare and Medicaid Services (CMS) is driving a significant portion of this tech spending.
CMS obligated $174.9 million to QLARANT INTEGRITY SOLUTIONS LLC for computing infrastructure and data processing. This contract supports the Medicare Drug Integrity Contractors (MEDIC) program.
In a parallel effort, CMS awarded $73.2 million to BOOZ ALLEN HAMILTON INC for computer systems design services. This obligation specifically funds the Marketplace System Integrator (MSI) project.
The Social Security Administration also pushed IT funding, obligating $21.0 million to AVAYA FEDERAL SOLUTIONS, INC. This covers Voice Over Internet Protocol (VoIP) phones, hardware, and ongoing software maintenance.
Federal Spending By Industry 2026: The Top NAICS Codes
Looking at aggregate obligations reveals exactly what the government is buying. The FY2026 NAICS federal obligations show a heavy lean toward research, industrial maintenance, and specialized manufacturing.
Here are the top industries receiving major federal obligations in FY2026:
| NAICS Code | Industry Description | Total Obligated | Award Count |
|---|---|---|---|
| 541712 | Research and Development in the Physical, Engineering, and Life Sciences | $139.8M | 285 |
| 811310 | Commercial and Industrial Machinery Repair and Maintenance | $64.6M | 797 |
| 311911 | Roasted Nuts and Peanut Butter Manufacturing | $50.2M | 26 |
| 484230 | Specialized Freight Trucking, Long-Distance | $33.0M | 18 |
| 623220 | Residential Mental Health and Substance Abuse Facilities | $31.3M | 85 |
| 325992 | Photographic Film, Paper, Plate, Chemical Manufacturing | $3.8M | 1,309 |
| 332312 | Fabricated Structural Metal Manufacturing | $2.6M | 26 |
| 459910 | Pet and Pet Supplies Retailers | $440K | 2 |
| 481112 | Scheduled Freight Air Transportation | $164K | 14 |
| 337110 | Wood Kitchen Cabinet and Countertop Manufacturing | $122K | 2 |
Unexpected FY2026 NAICS Federal Obligations
The federal government buys much more than weapons and software. The FY2026 data highlights several unexpected sectors pulling in millions of taxpayer dollars.
- Food production: The government obligated $50.2 million to the Roasted Nuts and Peanut Butter Manufacturing sector across 26 distinct awards.
- Mental health: Residential Mental Health and Substance Abuse Facilities received $31.3 million in federal funding through 85 separate obligations.
- Specialized supplies: Federal agencies spent $3.8 million on Photographic Film and Chemical Manufacturing, spreading the funds across a massive 1,309 individual awards.
- Animal care: Even Pet and Pet Supplies Retailers saw federal action, securing $440,000 in FY2026.
These figures demonstrate the sheer breadth of federal procurement. Every operational need, from industrial machinery repair to basic food supplies, requires a dedicated contract vehicle.
Homeland Security and Logistics Contracts
The Department of Homeland Security (DHS) is actively funding border surveillance, communications, and records management in FY2026.
U.S. Customs and Border Protection obligated $28.7 million to TELEDYNE FLIR DEFENSE, INC. for Enhanced Mobile Surveillance Capabilities. Meanwhile, Immigration and Customs Enforcement (ICE) finalized a $46.1 million closeout contract with TRIBALCO LLC for wireless communications equipment.
On the administrative side, U.S. Citizenship and Immigration Services awarded $28.8 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC. This funds phase four of their enterprise digitization contract, categorized under general warehousing and storage.
Where the Funds Flow: State and Agency Breakdown
Federal spending is highly concentrated by geography. A few states consistently capture the lion's share of mega-contracts due to their proximity to the capital or specialized industrial bases.
Maryland is a dominant force in FY2026 procurement. The state hosts Leidos, Qlarant, Teledyne FLIR, and Tribalco, capturing over $682 million from just those four contracts.
Kansas is the current epicenter for aviation procurement. Both Textron Aviation and Indra Air Traffic operate out of the state, pulling in a combined $578 million in FAA obligations.
Virginia remains a stronghold for consulting and IT services. Contractors like Booz Allen Hamilton and CSRA LLC secured over $123 million for CMS and CDC support contracts.
Quick Takeaways on FY2026 Federal Procurement
The FY2026 federal contracting landscape is defined by massive investments in public health, aviation safety, and digital infrastructure.
- Top Contractor: LEIDOS BIOMEDICAL RESEARCH INC leads the pack with a $432.4 million obligation for NIH research.
- Top Agency Spenders: The Department of Health and Human Services and the Department of Transportation are driving the largest single-award contracts.
- Top Industry: Research and Development is the highest-funded aggregate NAICS code, pulling in $139.8 million across 285 awards.
- High Volume: Photographic Film Manufacturing saw the highest sheer volume of transactions, with 1,309 individual awards totaling $3.8 million.