# VBA Prepares Disability Exam Recompete

Leidos reported **$5.5 billion in Q3 2026 net bookings** and a backlog of approximately $49.6 billion, with awards including U.S. Air Force intelligence and surveillance work, TSA screening equipment, and military health IT. The most immediate opportunity for industry is the Veterans Benefits Administration’s disability medical-exam recompete: the final RFP is expected in November 2026, an award decision is anticipated in April–May 2027, and performance is planned to begin July 1, 2027. The draft contemplates IDIQ awards across six service groups, with two to four companies per group and work share weighted toward performance; existing contracts may be extended through the first half of 2027.

- Companies pursuing the VBA work should assess the six service groups and performance-based work-share approach when planning bids and teaming; the final RFP is expected this month.
- The anticipated April–May 2027 decision and July 1, 2027 start provide a planning horizon for staffing and transition, while possible incumbent extensions could affect the timing of work.
- Leidos’s Q3 awards included a **$717 million** Air Force intelligence and surveillance award and a $672 million TSA screening-equipment award, alongside continued military health IT work. These awards indicate active opportunities across defense, transportation security, and federal healthcare, while reported slower procurement decisions may affect award-to-revenue timing.

**Jurisdictions:** federal
**Industries:** Healthcare, Defense & Military
**Topics:** Contracting Vehicles
**Published:** November 04, 2026

### Government Entities
- U.S. Department of Veterans Affairs, Veterans Benefits Administration (VA / VBA)
- U.S. Air Force (USAF)
- Transportation Security Administration (TSA)
- Defense Health Agency (DHA)
- U.S. Cyber Command (USCYBERCOM)

### Vendors
- Leidos (Awardee on federal programs and incumbent and prospective prime bidder for the VBA disability-exam recompete)

### Key Quotes
> Leidos delivered another quarter of strong financial performance, allowing us to enhance our 2026 guidance for the third consecutive quarter.
> — Tom Bell, Chief Executive Officer of Leidos

> Our entire team acted with urgency around cost control, which substantially drove margin and earnings.
> — Chris Cage, Chief Financial Officer of Leidos

### Sources
- [LDOS Q3 deep dive: revenue shortfall and guidance reset as defense and energy accelerate - StockStory](https://stockstory.org/us/stocks/nyse/ldos/news/earnings-call/ldos-q3-deep-dive-revenue-shortfall-and-guidance-reset-as-defense-and-energy-accelerate) - StockStory
- [Earnings call transcript: Leidos tops Q3 2026 EPS forecast but shares fall By Investing.com](https://www.investing.com/news/transcripts/earnings-call-transcript-leidos-tops-q3-2026-eps-forecast-but-shares-fall-93CH-4995566) - Investing.com
- [Leidos stock falls revenue outlook disappoints — TradingView News](https://www.tradingview.com/news/seekingalpha:70a5a9e84094b:0-leidos-stock-falls-revenue-outlook-disappoints) - TradingView