Name: Inside the DHS: FY 2027 Priorities and How to Compete
Uploaded: 2026-11-05T20:30:29.388Z
Duration: 1 h 40 s
Description: Inside the DHS: FY 2027 Priorities and How to Compete

Transcript for "Inside the DHS: FY 2027 Priorities and How to Compete": Hello, everybody, and thank you for joining us today. My name is Alex Gallant. I am a senior marketing manager here at Deltek. And before we begin, I just want to go through a few administrative items. The browser we're using for your best experience would be Google Chrome or Firefox. The audio is gonna be streamed through your computer, so there's no dial up. So please make sure that your volume is turned up. The slides and additional resources are available on the right hand side in the docs tab. You can download them anytime during the presentation. They will also, be emailed to you after the webinar. The recording will also be emailed to you within twenty four hours from the webinar. Should you have any questions, please feel free to put them in the q and a tab during... Anytime during the presentation. At the end of the presentation, we will try to get to as many questions as we can. You are also... If you are a GovWin customer, you also have the ability to ask the question from your customer success manager, and, we can get an answer to you that way. So without further ado, I wanna go ahead and hand this off to both John and Sarah to get the presentation started. Thanks. Thanks, Alex, and welcome to everyone. And hope that this day finds you well. I'd like to introduce myself. My name is John Slye. I'm a senior research analyst here in our federal market analysis area. And I'm joined by my colleague, Sarah Dorough, who's a research analyst with our federal information solutions team. As we go forward, I just will take a look at our agenda that we have before us today. So, in a moment, I'm gonna turn it over to, to Sarah to talk about our DHS contract spending trends that we've seen over the last year or so. And she will, also hit on some major contract opportunities that we see, coming, this year and going forward. And then she'll turn it back over to me, and I'll look at the, FY 2027 budget, in the contracts that we're in and what we might expect, going forward. And then we'll draw some conclusions and, and get to your questions. So without further ado, I'm gonna hand it over to Sarah. Thank you, John Slye. DHS certainly has had an interesting couple of years, so let's just dive right into the spending trends. Fiscal year twenty twenty six was not a typical year for the federal government. We began this year with a forty three day shutdown from October to 11/12/2025. However, despite that, contracting spending increased because many DHS missions continued as essential operations and agencies were able to rapidly obligate new... Newly available multiyear reconciliation funding. For industry, the key takeaway is that DHS was not operating in a constrained environment. Once funding became available, agencies were able to obligate funding rapidly through existing contracting vehicles, task orders, and acquisition programs. This demonstrates that the the operational disruptions did not reduce mission demand. Instead, agencies deferred non mission critical procurement and accelerated it once the funding became available. DHS had a market share of 9.6 in fiscal year twenty twenty six. This means that almost 10% of all reported federal contract dollars across all agencies went to DHS. However, this number is artificially large due to the delay in reported DOD spending. DOD institutes a ninety day delay in reporting its contracting obligations. So we won't know the real market share until January 1. However, we expect it will be significantly higher than fiscal year twenty twenty five, which was only 3.7%. Although final federal wide comparisons remain subject to late department of defense reporting, the scale of DHS growth is unmistakable. DHS reported obligations increased by approximately 42,900,000,000 since fiscal year twenty twenty five and saw an increase of 220% since fiscal year twenty twenty two obligations. So where'd the money go? One of the most important findings from fiscal year twenty twenty six spending data is the concentration of obligations among three agencies, CBP, ICE, and the Coast Guard. Together, these organizations accounted for more than 80% of all contract obligations in fiscal year twenty twenty six compared to approximately 59% in fiscal year twenty twenty five. Departmental management reflects one of the largest nonoperational increases as it saw nearly a 25% increase in spending from approximately 2,800,000,000 to 3,700,000,000. This growth can be attributed to their continued investment in enterprise modernization and and mission support capabilities. While most DHS components experienced growth, FEMA was a notable exception as it saw a decline from approximately 2,900,000,000 to around 1,000,000,000. The key takeaway is that DHS wasn't raising spending evenly across the department. Most of the gross was concentrated in a handful of agencies and mission priorities. So what are the CBP, ICE, and GovWin agencies buying? These three charts show the top three NAICS codes for each industry. Let's start with CBP. CBP spending profile clearly demonstrates that construction was by far the largest industry in fiscal year twenty twenty six. Of the 28,500,000,000 in reported contract spending under NAICS, two three six two two zero commercial and institutional building construction, 25,900,000,000 went to task orders under multiple award IDIQ contracts for the southwest quarter. The IDIQ was awarded on 10/30/2025 to 11 companies from 11 proposals received. No solicitation was publicly issued for this procurement. Instead, the procurement was issued under the DHS October 2025 waiver, which allowed DHS to waive certain laws, regulations, and other legal requirements in order to ensure an expeditious construction and barriers and roads in the vicinity of the international border, which for this contract is along with southern... Southwestern states of California, Arizona, New Mexico, and Texas. If you are a gov one subscriber, you can read more about that opportunity under opportunity ID 200 and 65700 and 87. For the coast guard, shipbuilding was obviously the top industry driven largely by the purchase of 11 Arctic security cutters. They'll be acquired through three separate sole source contracts. No solicitations were publicly issued, and the procurement was also conducted under a waiver. Moving on to ICE, we have more sole source contracts contributing to their largest industries. The biggest expenditure was a sole source contract for detention services at Camp East Montana with a $658,000,000 obligated since the contract was awarded in February 2026. So So here we have all three agencies with significant expenditures acquired through DHS waivers and or sole source awards bypassing traditional procurements. Companies looking to do business with DHS should keep this in mind and monitor executive orders and DHS waivers for signs of future nontraditional acquisitions. Looking at the top industry spending driven by CBP buys, CBP ICE and the US Coast Guard play key roles in implementing the agency's mission throughout fiscal year twenty twenty six, most strikingly seen in CBP's border construction here. The slide further reflects that DHS spending was driven towards mission execution rather than information technology or professional service. However, that border mission extension far beyond... Extended far beyond physical barrier construction as it expanded demands across multiple industries, including environmental services, civil engineering, security infrastructure, and program manage. Because many projects in the leading NAICS industries are expected to span multiple years, contractors should expect opportunity growth to stay concentrated in these areas for the foreseeable future that we know. While NAICS codes represent what contractors are selling to the government, product service codes provide a different lens by illustrating what the government is buying. While PSCs can align with NAICS codes, they offer more granular view. For example, distinguishing types of construction or professional services. Looking at this top 10 list based on fiscal year twenty twenty six contract dollars, both y one p z construction over non building facilities and y one l b construction of highways, roads, streets, bridges, and railroad, which had a 57000% jump in spending for fiscal year twenty twenty six, are the two PSCs used for the southern border IDIQ mentioned earlier. This aligns closely with the DHS increased focus I have been highlighting on the border operations detention capability, maritime modernization, and operational readiness. An additional focus point is that PSC r four zero eight support professional program management support reflects a decrease of 10%. However, that spending has been absorbed by the increase under r seven zero six support management logistics support as work scopes were realigned, which made a slight adjustment to the PSC alignments. PSCs often tell us more about future demands than NAICS codes because they can reflect what agencies are actually trying to accomplish. So as we move forward, we'll look forward to the awarded contract dollars decreased, small business market share was cut in half. All 28 plus billion dollars were awarded under the border wall construction IDIQ mentioned earlier and are reflected in the other than small portion on the left chart. This chart is based on the competition type. So even though 3,500,000,000 of that IDIQ were awarded to small businesses, they received those contracts using full and open competition. The chart on the right shows the breakdown of awarded dollars by key set aside strategies. While companies designated as small business saw a significant growth in contract spending, HUBZone and service disabled veteran owned small businesses saw a small marginal increase. AA and women owned small businesses have continued to decrease over the last two years. Small business set aside dollars increased in fiscal year twenty twenty six, but their share of the market declined as overall DHS spending grew faster. More spending is flowing into larger programs, major construction, fleet modernization, and enterprise wide contracts. That creates opportunities for large businesses to lead major programs. Small businesses may need to rely more on teaming, subcontracting, and getting onto key contract vehicles earlier. Now we'll take a look at the count of unique small business primes that declined in fiscal year twenty twenty five. This slide measures something very different than the previous slide. Rather than looking at competition type, it reflects the actual business types receiving awards in the DHS performance against its small business goals. The headline here is not spending its participation. The small business contractor base is shrinking. Even as DHS spending increased substantially, those awards went to fewer firms, and the number of unique small businesses receiving awards continue to decline across major socioeconomic categories from 2024 to 2025. One factor driving this trend is the continued shift towards large IVIQs and task order based acquisition strategies. Agencies benefit from acquisition efficiency, but the result is that the contract dollars are increasingly concentrated among smaller number of vehicle holders and incumbent contracts. For industry, this creates market where access to the right contract vehicle may just be just as important as technical capability. Companies that are not positioned on key vehicles may find it increasingly difficult to compete as primes. DHS and the small business administration are attempting to address this issue through changes in the fiscal year twenty twenty twenty six part methodology, including greater emphasis on veteran owned small business designations and on economic disadvantage and greater use of competitive acquisitions rather than sole source awards. Agencies may earn bonus points for competing work that was historically awarded as an eight day sole source, with these work not having to remain in the eight day program. Another development industry should watch closely is the SBA's proposed revision to increase small business side standards tied to NAICS quotes. These changes could reshape competitive dynamics across DHS by increasing the number of eligible small business offers in and creating additional pressure for existing small businesses that have faced less competition in the past. The proposal's comment period was open until November '20... November 20 of this month, and the agency has a lot of feedback to review. There is no confirmed date for when changes may take effect. But as we have seen, this administration moves quickly, so that could be in place before the current fiscal year ends. Solicitations issued before then would follow the current rules, and those issued after would follow the new ones. As DHS shifts more spending into large strategic contracts and regulations keep changing, having the right access and connections is becoming more important to success. So now we'll take a look at the two border speaking related opportunities joining the top list of DHS IDIQs. Speaking of large strategic vehicles, this table lists the top five IDIQs used by DHS to acquire goods and services. You need to know where DHS is buying because this will help inform whether you should be pursuing as a prime or sub or if you wanna chase them at all. But this is where DHS is buying. New on this year's list are two border wall construction IDIQs. We've seen this appear on nearly every slide because this is where those DHS dollars are going. Outside of construction, the g a s s... GSA schedule is still a key vehicle for DHS just like it is essential for every other federal agency. GSA covers broad range of product and services comp... Offerings and stand alone contracts migrate to the schedule each year. If you were not on the schedule yet, look at what your business can handle, the buying habits of agencies like d... DHS, and whether you're in a position you can reasonably meet those minimum requirements. OASIS was originally built for professional services but expanded to include o and m and human resources work with the arrival of OASIS plus phase two. Just like GSA schedule, proposals are continually accepted and awards will be made on a rolling basis for these. I know many of you are itching to get to the opportunities portion of this presentation. But before we jump in, I have to announce a general disclaimer for this year's presentation. Many of the opportunities I have selected this year have been buzzing with activity. In fact I have highlighted a couple of requirements that received updates almost immediately after the slide was posted yesterday. As a result, those requirements in their slides will not reflect the most recent information available. However, the way I see it, live updates are better than no updates, so we're gonna roll it. That said, I highly encourage interested in nurse to follow along closely to the first three opportunities I will be jumping into. So first, we'll take a look at ISA's requirement for outcome based rapid business integration and technology delivery, IDIQ, Orbit. This is located under opportunity ID 243861. This opportunity was updated yesterday to announce that additional virtual industry events will be held at 10AM Eastern Standard Time on 11/18/2026. The additional event was scheduled due to technical difficulties that prevented the access during the first industry day they held on October 29. The event will be held for all registered virtual attendees and will feature a playback of the industry day recording. Meeting link will be provided via email to the registered virtual attendees. If you were registered to attend this event, you have likely already received an email with the new meeting link. I received my own on Tuesday, November 3 this week. According to the invite, the team's link is scheduled to be open at 09:30AM to allow participants time to join and ensure that there are no technical difficulties. However, the virtual session will begin promptly at 10AM. I highly recommend using that extra time to make sure your connection is working properly. The Orbit solicitation is anticipated to be released on or about 04/01/2027 with a projected award of quarter four fiscal year twenty twenty seven. The solicitation is expected to result in a multiple award IDIQ. However, the number of awards expected remains unknown at this time. The period of performance will be from the award through September 2032. The structure of that performance, whether it be based in options, has not been announced yet. Outcome based rapid business integration and technology orbit is the future of a previous requirement that was known as scalable ways to initiate flexible tasks or SWIFT. ICE implemented SWIFT IDIQ to successfully establish a foundation for rapid and tech... Task initiation. However, in this new iteration, ICE is moving away from the platform specific tasking to orbit, a model focused on continuous assembly, integration, and improvement of technical capabilities across ICE environment. While we do have SWIFT listed as incumbent contracts for Orbit, they provide more of a historical view because the future work scope is shifting focus. The contracting office has not announced an anticipated value for for orbit. We are currently estimating a potential value around the current ceiling value of the swift at about 1,090,000,000. The combined obligations of the eight swift incumbents is approximately 315,000,000. With the spending leverage of swift and with the changes to the requirement scope, the potential value of this production is highly subject to change. We continue with live updates on the next opportunity. Tactical communications and technical investigative comprehensive solutions tactics. Yesterday, the contracting office issued a draft RFP along with questions and answers for tactics, which is being tracked under opportunity ID 215495. This draft RFP was provided for planning purposes only while DHS awaits the necessary approvals before releasing the final RFP. The contracting office is not currently accepting any new questions or comments on this requirement as of this time. A projected solicitation release date was not made available with this notice, but the draft RFP projects that work will begin on 04/20/2027. Based on this, we have moved our projected timeline up with a potential solicitation now projected in late quarter one to early quarter two. This procurement will be a partial small business set aside under NAICS code 300 and 34200 and 20, radio and television broadcasting and wireless communications equipment manufacturer. 30 awards are expected under this multiple award IDIQ. Task orders will be awarded as firm fixed price or time and materials. According to the draft issued yesterday, the total aggregated value of all orders under contracts awarded under this solicitation shall not exceed approximately 3,490,000,000. We have aligned the report's projected award timeline with the 04/20/2027 contract start date. The period of performance will consist of a one year base plus four one year options through 04/19/2032. The tactic scope falls under two technical categories. Technical category one includes equipment, an array of items such as cameras, modems, antennas, associated components. Technical category two, services include a spread of fixed and portable video evidence collection, specialized software, labor, and engineering services. The equipment and services list avail... Is available in the opportunity report is not all inclusive as the RFI notes that the equipment and services may be prepared as part of or in support of several tactical communications and technical investigative requirements for offers. And, let's see. A separate RFI and draft were also recently released for this effort specifically for technical category one equipment. This was issued on 10/28/2026 with responses also collected yesterday. Notes, tactics announced by the DHS management director in January 2026. This is the new face of what was taccom and tech ops three, which I presented on last year. While initially recorded as a follow on, the contracting office has more recently identified this requirement as new. We continue to identify tacom and tech ops as incumbents as their work scope will be consolidated into tactics. I highly recommend GovWin's department subscribers who are interested in orbit and or tactics to mark the opportunity reports to receive updates. These requirements are reaching the active procurement stage of the procurement cycle, and I expect to see more frequent activity in the coming months. So now we're gonna keep the update train rolling. We are moving on to a brand new requirement that is titled CISUS Strategic Cyber Tools Buying. The acronym is obviously no better than saying the title as it is SCTBS. A market assessment discussion notice was issued for SCTBS opportunity ID 200 and 66800 and 45. This was issued to Alliance three vendors yesterday. Interested vendors were invited to participate in one on one market assessment discussions or mad discussions scheduled for November 16 through 11/18/2026. Registration responses for this RFI are due by 11AM eastern standard on 11/09/2026. The Sysdig strategic cyber tools buying is a plant to be procured cybersecurity tools and advisory services, supporting a large scale procurement and license tracking of cyber software products and tools. The contractor shall support CISA with strategic and transactional procurement support, enterprise license management, and direct materials purchasing. CISA categorized this support of SCTB SCBTS into the function categories identified here. The descriptions are broad. The future support may be provided in task or subtasks that will cross multiple function areas zone. Flexibility and agility are expected as support will fluctuate throughout the duration of the performance. The FASaaS opportunities dashboard forecast a potential solicitation in quarter three fiscal year twenty twenty seven. The government currently estimates this to be valued at approximately 600,000,000 annually with an estimated contract life cycle range of at least 6,000,000,000. Regarding the anticipated NAICS code, this requirement is an active research, and the mad announcement issued yesterday does not designate a specific NAICS. The September 2026 RFI identified five four one five one nine other computer related services, while the FASaaS opportunities dashboard identifies the NAICS as five four one five one two, computer systems design services. As the FAS AAS is the current forecast page and is expected to receive future updates as the acquisition strategy develops, we have aligned the opportunity report with the NAICS five four one five one two at this time. Much of the acquisition strategy for SCTBS remains unknown at this time. This report is subject to change as the market research phase continues and as the government further develops the requirement scope. However, this is a great time to jump in into early procurement monitoring and participate in active market research driving the acquisition strategy development. So we will move along to our next... Onto our next one. This is the IT opportunity for border enforcement applications for government leading edge IT or BEAGLE program. This program provides efficient and effective delivery of IT related program management services and technical solutions. The work scope includes application administration, asset management, project and human resource management, as well as many other IT and professional services. A RFI for border enforcement applications for government leading edge, Beagle, was issued on May 2026 and closed on June 2026. However, the APFS announcement has not been posted today, and so far, the contracting office has not provided further insight into the planned acquisition strategy at this time. The current bridge task order is held by CACI International Inc. It has a 12 extension executed as of September 2026 and is currently set to expire in September 2027. Pending a formal forecast, we currently project a potential solicitation release in early q three fiscal year twenty twenty seven with an award in late q four. This timeline is based on the incumbent procurement timeline of about four to five months from solicitation issuance to the award. This is expected to be a single award procurement based on historical performance. The incumbent task order period of performance included a base year and four one year options. We are projecting that a follow on may have a similar status. The estimated value currently reflected is approximately 1,900,000,000 based upon the incumbent contract held by CACI. Both the incumbent and the bridge task order have publicly reported subcontract spending with 30 identified subs under the incumbent and 27 identified subcontracts under the bridge. The $6.9669300000 in subcontract spending under the bridge task order represents approximately 10% of its total value. And for the incumbent contract, we had 258,900,000 in subcontract obligations represented, which accounted for about 31% of the incumbent's prime spending. This is a great opportunity for companies looking to subcontract or possibly team on portions of this work scope. Next, we will go ahead and take a look at the CISA stakeholder engagement and analytics support requirement. This is currently tracked under two five one zero four nine. The requirement provides a strategic relations division with comprehensive support and design, development, implement, and sustain enterprise by stakeholder engagement, data management, and analytic capabilities. The scope integrates stakeholder engagement, advanced analytics, and data governance to create a unified data driven approach to managing relationships with federal, state, and local tribal territorial partners, as well as key stakeholders. A solicitation is forecasted via eight a stars three around 04/15/2027. The APFS projection of the value is regulated between 20 to 50,000,000. However, we estimated at the lower end of the government provided scale because the incumbent held by Chivo Consulting is valued about 24,000,000. A firm fixed price task order award is projected for quarter four twenty twenty seven with performance through 09/29/2029. The most recent update was issued on 10/29/2026 to change the primary points of contact to doctor Sarah Taylor and Greg Slye. Another available effort out of CISA is the facilities management support requirement which provides CISA with building management, space planning, and management and design of construction efforts. This one can be located under 254053. This is forecasted to be a women owned small business set aside via Oasis. A solicitation is expected to be available on or around 12/04/2026 with an award projection for quarter two fiscal year twenty twenty seven. The award is expected to be a firm fixed price task order and will have performance through 03/24/2032. The incumbent task order is held by Brown Construction Services and has a value of approximately 19,400,000. APFS estimates between 20 and 50, and that's similar to the last requirement we projected at the lower end of the scale. Next, we're gonna take a look at a Coast Guard Academy IT support services requirement. We reach our last highlighted opportunity, which is the US Coast Guard Academy IT support services, op ID 200 and 51500 and 87. This effort includes providing the academy with technical support, network administration, training, and other IT support services. The solicitation is expected on or about 01/28/2027 as a service disabled veteran owned small business set aside via VETS two. This effort will also be a firm fixed price task order with period of performance through 04/29/2032. The incumbent task order is held by Technology Corporation and has a value of approximately 18,800,000. APFS estimates follow on to be 10 to 20. We project the value around 20. There will... Were three reported subcontract awards under the incumbent, which accounted for approximately 40% of the prime spending at about $9,700,000. Building on the small business trends I discussed earlier, I wanted to highlight opportunities that span a range of areas and appeal to the diverse audience here today. Now I will turn it back over to John to provide a deeper insight into the DHS outlook. Thank you, Sarah. A lot to digest. And as a reminder, if you haven't already noticed, you can download the slides, copy of the slides, and they will be included also emailed out in the presentation when we get an email within twenty four hours. So, thank you so much. There is a lot there. We'd love to, move forward here as... Let's start, looking toward the 2027 budget. And before we kinda get to the details, let's talk about our, just some defining some terms. So in the, in the overall budget process, of course, you know, the president submits his budget to congress, and congress actually legislates and appropriates the dollars that come. So, so when the when congress or when the president submits his discretionary budget, it's still, it's a a budget plan. It's a desired of priorities and such, but it takes congress to actually put together the real money. So congress will then, take that discretionary budget and mark it up, and have conversations up and down, Pennsylvania Avenue, and they will put together a, an appropriations package. Now that package includes complete discretionary funding, for the department, which includes personnel and associated expenses. So that portion is not contract or addressable. What we're interested in is what that portion of the budget or the appropriation is that's actually gonna, be spent on contracted goods and services. So we're ultimately interested in where we see the contract obligations going, and, we saw some of that data early on, in Sarah Dorough's part of the presentation. So as we go forward, we're just... We're really trying to drive toward contractor addressability. So let's look at a a little bit of a pattern we see here with the DHS budget. If you've been if you've been paying any attention at all, you probably have know that the DHS budget and appropriations process has been really at the front line of political debates over the last several cycles. So it's been quite an interesting, interesting thing to keep keep track of. So what you're seeing here is a ten year, a ten year chart of both, discretionary budget as well as the... In the darker blue and then, the contracted spend, in the in the pink. And so, so we get a little bit of historical perspective on here. Now historically, DHS has followed kind of a three year budget cycle. They would have, like, a year or two years of growth and then a rebaselining year where they would trim some things back, and then restart that process, but it would it would continue in a in a stair step pattern, of increases. Well, around 2017, the beginning of this, this current ten year cycle, that really changed, and we we... COVID really, put us on a track for, eventually put us on a track for for breaking the cycle altogether. So in 2027, we got, 2017, excuse me, we got rid of the of the baselining year, and we just saw it, you know, step up two, then step up two, then step up two. And then COVID broke that pattern as well in 2020. So it really has, has has... We've... Just like the budget processes the last couple of years, we're not seeing much in the way of a pattern, a predictability pattern when it comes to budgets, and that plays into how it affects the contracted contracted world as well. So generally speaking, the contracted portion has, has followed, the the discretionary budget as it increases. We see, a greater contract spend, generally speaking. And so that's... And that makes sense because it's the more money they they have there, the more money they're gonna spend, on on contracts. So, but when we look at the... When we look at... We get into the 2025, 2026 time frame, couple things here. As you'll recall, for... In 2025, DHS requested actually six... Requested $61,000,000,000, but then received from Congress, $66,000,000,000 in appropriations. So it's not uncommon for Congress to say, no. You know, we're gonna... We wanna give additional money toward toward priorities that we agree with at the department, and they also tweak within their legislative language what those priorities can be. And that that has, implications for where we are and where we're going, in the in the... In this fiscal year. In in FY 2026, DHS requested $63,700,000,000, which would have been a reduction for... From twenty twenty five's request, but, but they were anticipating additional money in that in the first reconciliation bill in in in 2025, the one big beautiful bill act. And we're gonna talk a little bit about that, some more. But, they were already anticipating, receiving additional money in 2026, when they when they submitted that budget. Now the 2027 budget request, coming in at $63,000,000,000, so on par with, the request, or what was received in 2026, did... But that doesn't include some of the multiyear funding that we're gonna talk about when we get into the reconciliation bills. So, so right now, we're looking... This is the discretionary budget in the blue. And Under normal circumstances, we might expect to see a trimming in in in 2027 of $63,000,000,000. We... Let's switch over to talk about contracted spending. Again, it it generally follows, the patterns of of of budget increases. But before 2017, just some history, it's... It hovered in the 13 to $14,000,000,000 range contracted from year to year, you know, with a little bit of fluctuation. But since 2017, it has continued an upward trend. The dotted line you see, there is, that's about 42% or $25,000,000,000. That's the the five year average contracted spending from 2021 through 2025. And the reason I didn't include 2026, which we just finished, is, probably because we're still seeing dollars be reported and accounted for. And as you probably have already gathered from Sarah Dorough's, spending slides, 2026 is an anomaly year, from what we've seen in the past. But that 42% or $25,000,000,000 of the last five years, that's still several percentage points higher than the ten year average. So we continue to see, you the really point here is the contracted spending, continues to grow. It's grown 79% since 2017 and has grown 20% since... Just since 2020. So it's just it's just since COVID, we've seen DHS contract spending grow by 20%. Now in 2026, the one big beautiful bill after the the the the rec... The first reconciliation bill, it's easier to say, included an additional $191,000,000,000 in multiyear funding for DHS. That was, you know, effectively off budget, if you will. And that money was available until authorized through 2029, so multiyear money. But for most accounting, what we see from the treasury department and some other analysis, the vast majority of that money was spent in, spent in 2025 and 2026. So that $10,191,000,000,000 dollars is why... Is is a good portion of why you see that $75,000,000,000 in contracted spend in 2026. And it went to support, obviously, not just personnel operations, which are not contract regressable, but all the operations and support in the, in the building and the platforms, etcetera, that go along to support that operations. And we talk about, twenty twenty seven, contracting. You could see that it's it's just at $29,000,000,000 here for an estimate. That's a conservative estimate based on the twenty twenty five percentage since 2026 was such an anomaly. I did not feel, responsible to say, oh, we're just gonna take the twenty twenty six and keep it rolling. But roughly about 40, you know, 45 to 46% of of budget in 2025 went to contracting for that year, and I applied that to the twenty twenty twenty seven budget request. But... So, you know, we we still would expect to see, even once the the political landscape, settles, we still expect to see, you know, consistent demand for contracted support to meet the mission priorities that they that they've got even if we don't see another record year, if you will, like we saw in 2026. So that's that $29,000,000,000 is a is a is a conservative estimate, and I expect it will probably be, more than that. So let's look at the let's look at the 2027 budget. So like I said, we were at $63,000,000,000, in in request, which would have been a slight trimming, you know, 3% trimming, below the, the $65,000,000,000 in... At the f y twenty six CR level, and, and about 5% below what the final $66,000,000,000 that congress provided. But, so in here, because we don't see how, the off budget reconciliation bills play into the budget. In fact, the White House released their their, 2027 budget before the 2026 final bills for spending were passed in congress. If you've been paying attention in in 2026, in the f y twenty twenty six budget cycle, it was piecemeal and it was a political football, and and and it was, they had... In in congress, the the the majority in congress had to get creative in how they want... On how they funded the funded the department. So let's just talk about what we know from the budget, what the priorities are. So you see the top five DHS components, and these five components account for nearly 85% of DHS's total budget, in 2027. And CBP alone accounts for 30%, within their... Within the within the written budget. So CBP is down, roughly 6% compared to the budget, what they estimated on budget, in 2026. Not a surprise because we have multiyear funding that goes on the, you know, kinda on the... In the other, other bucket that they were playing with. The coast guard... US coast guard is up $2,000,000,000, from from '26, while ICE is flat and TSA and and and FEMA are both also trimmed in in the budget. But the real the real story here is where we see some of the, some of the, some of the priorities, that we see that are that are contractor addressable, because this is where we still see significant spending in those areas. So for CBP, you know, with the budget priorities included counter narcotics technology, air and marine fleet recapitalization, commercial environment modernization, radiation monitoring, all areas of both platforms and technologies, that, will, will require contracted support. At the coast guard, there is, you know, $14,100,000,000 to implement the force design 2028 modernization initiative, and to invest in Arctic infrastructure, unmanned systems, offshore, patrol cutters, etcetera. It also adds a 100... About $527,000,000 to... For, two GPS follow on satellites. So clearly some contractor responsibility there. We get into, ICE. You know, they requested $10,000,000,000 for ICE, to support immigration enforcement operations, and expand their legal advisory network, operations there. And then for TSA, there's an investments, $6,100,000,000 at TSA. Technology priorities there include checkpoint screening technology, biometric credentialing and authentication, and e gates. And the budget also expands their private screening partnerships and worse workforce, rightsizing. So you've seen that across the government, a lot of workforce, so called rightsizing, and the... And and adjusting where the for... The workforce falls. So those are some of the priorities that we see in the discretionary budget. How that translates into contractor addressability. So, of the $63,000,000,000, you know, on the left, is is when we do a, an account by account level analysis of DHS discretionary budget. We identify the areas of contractor addressability. So, of course, the the the obvious anomaly there, there's your twenty twenty six anomaly. This and this this includes both discretionary and mandatory or reconciliation funding that was included in the budget, accounts. So, obviously, there's your twenty twenty six anomaly, for all of the influx based on the, one big beautiful bill, reconciliation, etcetera. So looking at the 2025 level, we see we see it coming in roughly, you know, in immediate addressability about about $52,000,000,000. Now granted, that's obviously compared to 2026 and all that went into that. That's a significant reduction. But the $52,000,000,000, if you compare it to to, 2025, which itself was an increase over previous years, you're still looking at... You know, on a conservative perspective, you're still looking at a significant contract opportunity, landscape there. And, again, because of the limited visibility into the apportionments of these reconciliation funds, a lot of times we don't see where that money is going until it gets reported in contracts. So, that's some of the limitations of the data that's available from, from the government. So if we took that twenty twenty seven and how that breaks out into specific areas on the pie on the right, again, you know, recognizing that the, you know, that that the percentage changes or amounts changes are are based on a twenty twenty six level. So, there's a certain degree of of discounting that goes with with those amounts. But, you know, management support services, management and admin support services account for about 40% of the total contractor addressability, DHS, with the next three categories, making up another 40%. And then with AEC and others, others includes consumables, medical services, communications, and r and d, filling out filling out the pie there. But the top four, the top four areas, account for 80% of the contractor addressability at, at DHS. So... And this is, you know, what we see in in FY 2027. We we, once we get the smoothing, taken out of FY 2026 and we see additional funds, that get apportioned in 2027, we see likely growth in all of these five, really the five main categories, and some some variability within the other categories among those among those areas. So we've talked quite a bit about where we have seen, you know, what the impact of this... Of these multiyear funds under reconciliation. Let's let's let's talk a little bit about that in more detail. So, again, you know, and quick history, back in 2025, congress passed the one big beautiful bill act with a $191,000,000,000 in funding, that started partway through f y twenty twenty five and got large... You know, a huge amount of that, again, obviously spent in 2026. It's unclear how much of that $1.91 is is remaining that gets rolled into, that could be spent now in 2027, but it is authorized into 2029. But in addition to that, when we got into the 2026 budget cycle, we had, you'll recall that there was quite a bit of, you know, debate about how we fund immigration, and, border security. So, so congress parsed it out in on on... In April 2026, all the non immigration enforcement components of DHS were funded with $66,000,000,000, and that's the $66,000,000,000 you saw, in that... In the in the ten year budget chart. Then a few months later in June, congress passed the Secure America Act is under under a reconciliation... A budget reconciliation mechanism, process, and, that provided another almost, almost $70,000,000,000 in additional funding, multiyear funding, again, available through 2029, that specifically were for, CBP and ICE, and then some additional another 5,000,000,000 in that is a $5,000,000,000 for, additional funding for the the DHS office of the secretary. So, this multiyear funding is is, you know, has just been around since, you know, mid, calendar 2026 and, you know, getting close to the the final quarters of twenty twenty of f y twenty six. So this money is is available and is being apportioned and used now, and we're starting to see that money, you know, come out in in contract obligation reporting. So, you know, even with the limited visibility we see we see for 2026... Or excuse me, 2027, we see how it could be a $135,000,000,000 in potential discretionary and mandatory spending at DHS, a significant chunk of that, not all of it, is, could be contractor addressable. So the question is, of course, is, you know, now with the changes in in, going on in congress after the midterms, the... We're watching to see where... What congress does and whether to decide whether they wanna... The new majority wants to claw any of this money back or put limitations on how it's spent. Congress can congress can give and congress can take away. So the... This part, we're just gonna have to we're gonna have to, wait and see. But that's where the money is right now, and that money is authorized, so authorized to spend. So let's, draw down in some time we got left here real quickly into IT. And, I'm not gonna spend a lot of time. You got the slides, and you can read the details, about where the priorities are. But, you know, you'll you'll see that at least with the top line, the $11,700,000,000 in request for 2027 is a is a 9% increase, from the estimated level in 2026. And that's just on the budget. That doesn't include the... Some of the embedded technologies that might be in some of the, reconciliation funding and and those kinds of things. And so people that have done business with DHS know well that you can have a lot of embedded IT, that are... That doesn't get run through the OCIO's office or an agency's, CIO's office. So with that, I think I would like to move over to some conclusions so that we can, we can get on and talk about some... Take some questions. And before that, though, I wanna pop up here. If you would, actually, I wanna go to conclusions first. We have a survey coming, so, real quick. I'll just start here real quick and say, okay. The budget remains uncertain. We're watching congress. They're they're currently in in continuing resolution until, December 11, which is in... Still in this lame duck, as they say, lame duck, session of congress between now and in January when the new congress and and leadership are sworn in. So, congress has to make a decision on whether they're gonna, refund, keep funding into the new fiscal year, whether there's gonna be another shutdown, all that political, dynamics are still in play, as we get into December. But notice that CBP and I still have multiyear funding that they have have been provided. So, so there's that. And then, of course, I'll just, you know, highlight again. IT priorities with the percentage increase is leveraging AI for... And advanced technology for all the all the, the border and protection and, and cybersecurity as well as, as r and d efforts to to protect against AI in terms of cybersecurity and and infrastructure resilience. I think I'll turn this rest over to Sarah for her for her conclusions. Yeah. I'm I'm gonna cut mine short and just say that while we don't know yet what can be scaled back after recent elections for the foreseeable future, the areas to watch include border technology, cybersecurity, US coast guard recapitalization, and workforce support, infrastructure, and IT modernization. Companies interested in doing business with DHS but not necessarily positioned to prime on these large scale IDIQs should investigate possible supporting roles through the ancillary requirements included on the test as well as key government wide vehicles like GSA schedules and OASIS plus. Great. Thanks. Alright. So I'm starting... We're gonna look at some questions here. But before we get to there, I just wanna... If you would like to speak with someone to, possibly do a demo, free trial, no obligation. We'll just let you, respond to that. And I'll invite folks to put in questions if they have any. A lot to digest. And, again, you will receive the slides and a recording. There is one question here about referencing workforce development. Yeah. So in the areas of workforce development, so if you've noticed, you know, there's been a lot of, re... Rejiggering, from the White House across, really, not just DHS, but a lot of agencies around so called rightsizing, over the last couple of years. And we've seen, you know, in any pendulum, we've seen a pendulum swing. And so we're seeing some rehiring. We're seeing some, attempts to outsource some of those, some of the type capabilities. It's affected both, operational as well as contracting, contracting, shops. So that, in some cases, has slowed down some, acquisitions. But as, as Sarah has noted, just very recently, we're seeing that some things speed up very quickly. So, it really... I think it's... As far as the workforce development, sides, you know, cybersecurity, workforce development has been a long standing, a long standing driver. And then areas of operations around border security and and and, maritime security and those kinds of things are areas where I... We've we've seen some contracted support that needs that needs to take place there, and then AI skills, development, technology skills in those areas. I don't know if, Sarah, if you see any questions that you wanna pick up on. There is a question here on, will we see another, push for, you know, another reconciliation bill or another quote bit... You know, one big beautiful bill next year? You know, that's like predicting the weather. It has been... It it seems like it has been this congress, under the Republican leadership that has used the reconciliation process, to, to push things forward when there were significant political pushback. Right, wrong, or indifferent. And it's it's, once that, once that path has been blazed, it's... It does not, you know, it does not prevent, the the opposing team, if you will, to say, hey. That was a good idea. We'd like to do this. It really comes down to how... What what priorities they're gonna fund. It's less about necessarily about the, about the process, but more about which which way the the, which priorities wanna get funded. So, and, of course, the president does have the veto ability, and Congress has the ability to override a veto. So, that's... It's really tough to say where that will go. Alright, John. Sorry. My mute wasn't working. I. found one for a Polaris update regarding small businesses. I pull up the opportunity reports. I don't see anything new since October 16 on this. There has been no public update regarding that. The latest one says that the US court federal claims on 09/10/2026 says that there was a decision issued for the latest protest. So nothing new on that. I'm trying to read through some more. Somebody's asking about Firstsource. Let's see. Not seeing anything new there either. I'm not seeing anything else. Yeah. This is what... There's a couple of these, like, first source may be part of the, you know, the the impacts of of overworked, you know, shutdowns, you know, in 2025 and then delays in 2026, and now we're in CR world. So a lot of these things get pushed, when when there is there is, you know, workforce stoppages and those kinds of things that go along with them. Yeah. Especially when they still have some time on the contracts. Yep. Yeah. It doesn't it doesn't require them to, to move it forward and so expeditiously. So alrighty. Well, I appreciate everyone's questions. And at this point, I'm gonna turn it back over to Alex. Alright. Thank you, John and Sarah. Before we officially conclude, I just wanna remind everyone that you will get a copy of the slides and and the recording of this session in an email within twenty four hours of today's, end. And, I just wanna thank everyone for joining us, and please visit deltek.com for more upcoming Deltek events. Thank you.