UCOR LLC's $3.9B Contract Leads FY2026's Largest Federal Awards
Federal agencies obligate billions of dollars every fiscal year, but a handful of mega-contracts heavily skew the averages. Most federal procurement actions fall well under the $1 million mark. In FY2026, single awards are clearing the billion-dollar threshold with ease.
Data from USAspending.gov reveals exactly where these massive obligations are flowing. The largest federal contracts FY2026 has recorded so far are heavily concentrated in environmental remediation, pharmaceutical distribution, and veteran healthcare services.
Bottom line: The single largest federal contract in FY2026 is a $3.9 billion obligation to UCOR LLC from the Department of Energy, while the Department of Veterans Affairs dominates the broader list of mega-awards with multi-billion dollar healthcare obligations.
FY2026's Top Contract: UCOR LLC and Department of Energy
The top spot for FY2026 belongs to UCOR LLC. The Department of Energy obligated $3.9 billion to the company in a massive procurement action.
The funds are designated for 562910 — Remediation Services. The work is anchored in TN, a state that frequently hosts large-scale Department of Energy infrastructure and environmental management projects.
This single award dwarfs typical federal procurement actions. The contract modification includes specific incremental funding actions, pushing the total obligated amount just shy of the $4 billion mark.
Multi-Billion Dollar Awards to McKesson and TriWest Healthcare
McKesson Corporation secured two of the biggest government contracts in 2026. The Department of Veterans Affairs awarded the TX-based company two massive obligations for pharmaceutical prime vendor services.
Here is the thing: securing the pharmaceutical supply chain for the nation's veteran hospitals requires immense upfront capital. The first McKesson contract totals $1.4 billion, beginning in the first quarter of FY2026. A second obligation for $1.06 billion follows in the second quarter of FY2026.
Both awards fall under the 325412 — Pharmaceutical Preparation Manufacturing classification.
TriWest's Insurance Obligations
TriWest Healthcare Alliance Corp also pulled in multi-billion dollar figures. The VA obligated $928.9 million and $819.7 million to the AZ contractor.
These funds are classified under 524114 — Direct Health and Medical Insurance Carriers. TriWest utilizes these obligations to manage community care networks, effectively acting as an insurance bridge between VA facilities and private medical providers.
Department of Veterans Affairs Dominates Large FY2026 Awards
When analyzing the largest federal contracts FY2026 has generated, one agency stands entirely apart. The Department of Veterans Affairs issued eight of the eleven largest single contracts in the public record.
Beyond McKesson and TriWest, the VA heavily funded medical disability examinations and external insurance services. Optum Public Sector Solutions, Inc. received a $1.1 billion obligation early in FY2026, followed by another $526.3 million award a month later. Both of these contracts are anchored in WI.
Physician Services and Disability Exams
The VA also relies heavily on private contractors to process veteran disability claims. Two companies secured massive obligations specifically for medical disability examinations:
- Veterans Evaluation Services, Inc: Secured $566.1 million for physician services.
- OptumServe Health Services, Inc.: Brought in $714.0 million for identical examination services.
Both of these contracts utilize the 621111 — Offices of Physicians (Except Mental Health Specialists) industry code.
Top VA Mega-Contracts in FY2026
The table below breaks down the largest single VA obligations awarded in FY2026.
| Recipient | State | NAICS Industry | Total Obligation |
|---|---|---|---|
| McKesson Corporation | TX | 325412 | $1,406,868,182 |
| Optum Public Sector Solutions, Inc. | WI | 524114 | $1,102,850,655 |
| McKesson Corporation | TX | 325412 | $1,060,268,795 |
| TriWest Healthcare Alliance Corp | AZ | 524114 | $928,900,086 |
| TriWest Healthcare Alliance Corp | AZ | 524114 | $819,701,547 |
| OptumServe Health Services, Inc. | WI | 621111 | $714,081,758 |
| Veterans Evaluation Services, Inc | TX | 621111 | $566,164,541 |
| Optum Public Sector Solutions, Inc. | WI | 524114 | $526,370,096 |
Other Major Contractors and Agencies in FY2026
Outside of energy remediation and veteran healthcare, physical infrastructure and defense technology account for the remaining mega-awards. Spencer Construction LLC secured a massive $1.14 billion contract from the Department of Homeland Security.
This obligation funds border barrier construction. The work falls under the 236220 — Commercial and Institutional Building Construction code.
Raytheon's FAA Radar Contract
The Department of Transportation awarded Raytheon Company $418.3 million for aviation infrastructure. The MA-based defense prime will provide cooperative surveillance radar systems for the Federal Aviation Administration.
The result? The contract procures exactly 130 radar systems. This breaks down to 25 Cooperative Surveillance Radar (CSR) systems and 105 Integrated Non-Cooperative and Cooperative Surveillance Radar systems.
This highly specialized procurement utilizes the 334511 — Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing designation.
Leading Federal Contractors by Total Obligations in FY2026
Single massive contracts only tell part of the story. When aggregating all FY2026 top federal contractors by total obligated dollars, a different leaderboard emerges.
Some companies achieve massive totals through a single award, while others aggregate hundreds of smaller contracts. TriWest Healthcare Alliance Corp leads the aggregate pack with $6.1 billion across 13 distinct contracts. Veterans Evaluation Services, Inc follows with $2.0 billion spread over 10 awards.
But there is a catch. Volume strategies vary wildly among the top recipients.
- High Volume: Stonex Financial LTD accumulated $575.2 million across 236 separate contracts.
- Medium Volume: Booz Allen Hamilton INC amassed $998.9 million through 87 distinct awards.
- Low Volume: Cochrane USA INC reached $641.2 million via a single contract obligation.
Top 10 Contractors by Total FY2026 Obligations
The following table ranks the top contractors by their total aggregate obligations in FY2026, highlighting the difference in contract volume.
| Contractor | State | Contract Count | Total Obligated |
|---|---|---|---|
| TriWest Healthcare Alliance Corp | AZ | 13 | $6,110,850,585 |
| Veterans Evaluation Services, Inc | TX | 10 | $2,087,309,266 |
| Booz Allen Hamilton INC | VA | 87 | $998,974,294 |
| Bollinger Shipyards Lockport, L.L.C. | LA | 2 | $923,143,412 |
| Cochrane USA INC | VA | 1 | $641,277,600 |
| Acquisition Logistics LLC | VA | 1 | $598,444,871 |
| Stonex Financial LTD | N/A | 236 | $575,220,669 |
| QTC Medical Services INC | CA | 8 | $521,497,189 |
| Covenant Aviation Security, LLC | IL | 2 | $480,063,008 |
| The Whiting-Turner Contracting Company | MD | 5 | $352,271,574 |
Quick Takeaways on FY2026 Mega-Contracts
The distribution of the largest federal contracts in FY2026 highlights clear spending priorities across civilian agencies.
- Energy leads single awards: UCOR LLC's $3.9 billion remediation contract is the largest individual procurement action of FY2026.
- VA dominates the top tier: The Department of Veterans Affairs accounts for 8 of the 11 largest single contracts, entirely focused on pharmaceutical and medical services.
- Aggregate totals favor healthcare: TriWest Healthcare Alliance Corp is the top overall recipient with over $6.1 billion in total FY2026 obligations.
- Infrastructure commands billions: DHS and DOT are executing massive physical and technological infrastructure projects, led by Spencer Construction's $1.1 billion border barrier award.