TBR’s Business Insights

Partnerships will be integral as vendors across the federal IT market look to quickly demonstrate their value to the new administration. While Maximus has historically been quiet regarding its alliance activity, this could change as the vendor aims to avoid falling behind. For example, Maximus recently announced a partnership with Salesforce to augment its CX as a Service efforts. The Maximus Total Experience Management solution is being augmented with the Agentforce platform to provide clients with AI agents tailored to their needs that use data to adapt to citizens’ needs and simplify interactions.

After years of instability and declining performance, Atos enters 2025 with new leadership, improved liquidity and early signs of commercial momentum, positioning the company for gradual recovery and long-term stabilization.

The disruption that has very suddenly overtaken BAH’s civil business has prompted the firm to craft what Rozanski called a “one-time reset” of its civilian operations, including a 7% reduction in global headcount (about 2,500 employees) in 2Q25 that will disproportionately impact BAH’s civilian operations. The decline in civilian award activity has been so abrupt that BAH has not been able to sufficiently redeploy civilian project staff to DOD, IC or commercial sector programs, despite the firm’s expectations that growth will continue in its DOD and IC units in FY26.

In FY25 Leidos will tout its mission-critical solutions to enhance outcomes quickly, cost-effectively and at scale for federal agencies. Leidos will accelerate efforts to draw closer to its federal clients, emphasizing how they can more effectively utilize the company’s delivery scale and depth of mission expertise to comply with DOGE’s mandates, the overarching IT objectives of the Trump administration and the enduring need to modernize federal technology infrastructures.

GDT is not going to give up on the federal health market or on consulting, but TBR anticipates the vendor will increasingly prioritize defense opportunities in the interim, such as a recently awarded contract worth up to $5.6 billion to manage the DOD’s Mission Partner Environment. The DOD has historically been GDT’s largest client and was responsible for more than 58% of its revenue in 1Q25. While the Trump administration is asking for a 23% reduction in nondefense discretionary funding in its FFY26 budget proposal, it wants to keep the DOD’s discretionary spending roughly on par with the $892.5 billion stopgap for FFY25. GDIT is well positioned to capitalize on the DOD becoming increasingly interested in emerging technologies, given its experience with fixed-price and outcome-based contracting.