Healthcare Opportunities in 2026—What GovCons Should Know
- HHS small business spending remains at peak levels
- HHS is pursuing a variety of IT initiatives in FY 2026, especially in cybersecurity data management, while AI requirements are expected to expand rapidly
- Hear directly from top federal healthcare officials at the 2025 Healthcare Summit on Feb. 12!
Small business spending by the Department of Health and Human Services remains at peak levels, underscoring the agency’s prioritization of small business partnerships and future growth potential, according to Deltek research.
Shadi Shakibai, Deltek senior research manager, said on Tuesday during the company’s Department of HHS Under Trump 2.0: Unlock Contracting Potential for FY 2026 webinar that the market share of contract awards to small businesses rose 26 percent year-over-year from FY 2024 to FY 2025, though awards were concentrated among a limited number of companies. This, she said, indicates that HHS prioritizes vehicles like government-wide acquisition contracts, or GWACs, for services instead of awarding standalone awards.
Be the first to learn of new HHS spending initiatives at the Potomac Officers Club’s 2025 Healthcare Summit on Feb. 12! Get actionable business intelligence from Thomas Engels, Health Resources and Services administrator, during his illuminating keynote address. Secure your seat today!
Who Spends the Most Money at HHS?
HHS subagencies the Centers for Disease Control and Prevention, the National Institutes of Health and the Centers for Medicare and Medicaid Services accounted for 75 percent of all HHS contract obligations in FY 2025, despite an overall spending reduction. IT and professional services represented 41 percent and 35 percent of CMS contract obligations, respectively.
The Indian Health Service increased its spending by 9 percent in FY 2025, fueled by investments in health services, medical and scientific equipment, and IT. IHS requested $8 billion in FY 2026, up 13 percent from its estimated appropriations in FY 2025. HHS’ FY 2026 budget request allocates $191 million at IHS to continue electronic health record modernization. Hear directly from Benjamin Koshy, IHS chief information security officer, at the Potomac Officers Club’s 2025 Healthcare Summit on Feb. 12. Buy your ticket now!
What Are Some HHS Spending Initiatives in FY 2026?
HHS is pursuing a variety of IT initiatives in FY 2026, especially in cybersecurity data management, while AI requirements are expected to expand rapidly through the agency. The FY 2026 budget requests $100 million for departmental cyber activities, including advanced security and data privacy protections to combat growing cyber threats. HHS also requested $130 million to create an office of the chief technology officer.
What Are Some HHS Business Opportunities to Watch?
One HHS opportunity to watch is the HHS One Professional Services Solutions, or HOPSS, award, which Deltek estimates as having a value of $3.6 billion. This is a small-business set aside competition type.
Contractors will provide a range of professional services in support of the HHS mission and strategic plan for functions related to science, technology, engineering and math and business and operational services to support STEM activities. A solicitation is expected in May while Deltek expects an award in April 2027.
Another opportunity to watch is Sentinel 3.0, which will provide IT services to the Food and Drug Administration. Sentinel 3.0, which Deltek expects to have a value of $310 million, has a goal of promoting program efficiency, supporting the anticipated needs of each underlying component, such as the Active Postmarket Risk Identification and Analysis system and ensuring enough flexibility to address emerging safety issues and public health emergencies.
Sentinel 3.0 will be awarded using a tradeoff-type source selection and the FDA expects to use any combination of firm-fixed price, time and materials or labor hour when issuing tax orders under this ID/IQ program. This is a full and open competition. A request for information was published in June, a solicitation was expected in December and an award is anticipated in April.
What Falls Under HHS?
HHS has 17 staff divisions that support the secretary. These include the Office of the Assistant Secretary for Financial Resources, the Office of the Inspector General and the Office of Medicare Hearings and Appeals.
HHS also has 13 operating divisions. These include the Administration for Community Living and the Health Resources and Services Administration in addition to FDA, IHS, NIH, and others.
Category: Articles
