# VA Contractors Face Software Licensing Claims

4DD Holdings has sued Lockheed Martin and Leidos, alleging that Systems Made Simple copied or used its TETRA data platform in federal health-data work. The complaint connects the alleged use to a $624 million VA contract and more than $760 million in other federal contracts. The claims have not been adjudicated, and the reports note no response from the defendants; no new procurement opportunity is identified. For agencies and contractors, the dispute highlights the importance of verifying software rights and managing licensing and subcontractor access across contract performance.

- The allegations concern health-data work for the VA and other federal programs, with the reported contract amounts representing the work tied to the claims—not a finding of wrongdoing.
- Prime contractors and subcontractors should verify that software is properly licensed for the intended government use, document usage rights, and review how subcontractor access and software contributions are tracked.
- Procurement teams can use the dispute as a reason to examine software-rights representations, license terms, and verification processes during proposal development, due diligence, and contract oversight.

**Jurisdictions:** federal
**Industries:** Information Technology, Healthcare
**Topics:** Regulatory Compliance, Digital Infrastructure
**Published:** November 12, 2026

### Government Entities
- U.S. Department of Veterans Affairs (VA)
- U.S. Department of Defense (DoD)
- U.S. District Court
- U.S. Court of Federal Claims

### Vendors
- 4DD Holdings (Plaintiff and owner of the TETRA data platform)
- Lockheed Martin (Government contractor accused of using the platform in connection with a VA contract)
- Leidos (Government contractor accused of benefiting from federal contracts involving the platform)
- Systems Made Simple (SMS) (Subcontractor alleged to have copied or used the TETRA platform)

### Sources
- [Government contractors accused of ripping off software company for over $1 billion  | Courthouse News Service](https://www.courthousenews.com/government-contractors-accused-of-ripping-off-software-company-for-over-1-billion) - Courthouse News
- [The software company, 4DD Holdings, claims government contracting giants Lockheed Martin and Leidos used its full-stack data platform to win health data contracts with the U.S. Department of Veterans Affairs. @joedodson16 

https://t.co/1eNEFOsk9e](https://x.com/CourthouseNews/status/2121016835395178662) - twitter-fed-procurement