Kyndryl to enable mission-critical technology modernization for U.S. government agencies

Kyndryl (KD) has been awarded a 10-year NASPO ValuePoint Cloud and Software Solutions contract (ID: LS5006) to support U.S. public agencies with technology modernization.

Rhea-AI Summary

Kyndryl (KD) has been awarded a 10-year NASPO ValuePoint Cloud and Software Solutions contract (ID: LS5006) to support U.S. public agencies with technology modernization.

The agreement gives state agencies, higher education, counties, municipalities and other eligible entities nationwide easier access to Kyndryl cloud, software and modernization services under a streamlined purchasing framework with consistent terms and conditions. Covered services span SaaS, IaaS, PaaS and on-premises environments, including legacy mainframe support, constituent-facing system upgrades, re-entry and social services case-management improvements, and optimized contact centers. Agencies can also use Kyndryl Consult and the Kyndryl Bridge AI-powered platform under this contract.

Positive

• 10-year NASPO ValuePoint contract expands access to Kyndryl services for U.S. public agencies
• Contract covers SaaS, IaaS, PaaS and on-premises IT environments
• Framework offers streamlined procurement with consistent terms and state-specific addendums
• Agencies can access Kyndryl Consult and Kyndryl Bridge under the contract

Negative

• None.

News Explained

The 10-year award creates access to potential public-sector work, but the release discloses no contract value or guaranteed agency purchases, so it does not establish a measurable revenue commitment.

Market Context

KD's prior close was down 2.43% on September 15, before the contract announcement; four of five list...

Analysis

KD's prior close was down 2.43% on September 15, before the contract announcement; four of five listed peers were positive, providing a mixed pre-headline backdrop for the 10-year public-sector award.

Key Figures

Contract term: 10 years

Contract term

10 years

NASPO ValuePoint Cloud and Software Solutions contract

Key Terms

saas, iaas, paas, mainframe-as-a-service

4 terms

saas technical

"software as a service (SaaS), infrastructure as a service"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

iaas technical

"infrastructure as a service (IaaS), platform as a service"

Infrastructure as a Service (IaaS) is a cloud computing model that lets companies rent computing resources—like servers, storage, and network capacity—on demand instead of owning hardware. For investors, IaaS matters because it enables faster scaling, lower upfront costs, and predictable operating expenses for businesses, which can boost growth potential and margins; think of it as paying to use a utility grid rather than building your own power plant.

paas technical

"platform as a service (PaaS) and on-premises environments"

Platform as a Service (PaaS) is a cloud offering that provides developers with ready-made tools, computing power, and hosting so they can build, test, and run software without buying or managing the underlying servers and software stack. For investors, PaaS matters because it can drive predictable subscription revenue, lower customer costs of adoption, and scale rapidly — think of renting a fully equipped kitchen that lets chefs open more restaurants faster without building each kitchen from scratch.

mainframe-as-a-service technical

"Support mainframe environments or mainframe-as-a-service models"

A cloud-based offering that delivers traditional mainframe computing power, software, and management as a rented, pay-as-you-go service rather than requiring a company to own and run the physical mainframe. Think of it like renting a specially equipped, high-capacity server from a utility provider who handles hardware, updates, security, and operations. It matters to investors because it can change a company’s capital and operating costs, affect scalability and reliability of critical systems, and influence how quickly firms modernize legacy workloads.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10-year NASPO ValuePoint® contract helps public agencies nationwide upgrade essential technology and deliver better digital services to residents

NEW YORK, Sept. 16, 2026 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced it has been awarded a 10-year NASPO ValuePoint Cloud and Software Solutions contract (ID: LS5006), providing state agencies, higher education, counties, municipalities and other public entities across the United States with easier access to cloud, software and modernization services that support their long-term transformation goals.

State and local government agencies are under increasing pressure to modernize legacy technology, improve digital services, strengthen resiliency, and meet evolving constituent expectations while navigating complex procurement requirements. Participating states can leverage the NASPO ValuePoint contract for easier access to Kyndryl services and a streamlined purchasing framework with consistent terms and conditions and the flexibility to address state-specific requirements through participating addendums.

"State and local agencies need technology partners that understand both mission-critical systems and the realities of public-sector procurement," said Anita Mikus, VP and Managing Director of U.S. State and Local Government, Kyndryl U.S. "The NASPO ValuePoint contract helps agencies move more efficiently from planning to implementation, reducing procurement complexity so they can focus on modernizing critical systems, strengthening resiliency and delivering better services to residents."

The contract expands the scope of Kyndryl services available to participating agencies across software as a service (SaaS), infrastructure as a service (IaaS), platform as a service (PaaS) and on-premises environments. Agencies can leverage this contract for services such as:

• Modernizing mission-critical legacy systems: Support mainframe environments or mainframe-as-a-service models for core systems that process benefits, taxes, licensing or public safety workloads, helping improve resiliency while reducing the burden of managing end-of-service infrastructure.
• Improving high-volume constituent services: Agency-based solutions including modernization of systems behind driver's licenses, vehicle registration or appointment scheduling to improve reliability, reduce delays and make digital services easier for residents to use.
• Supporting re-entry and social services programs: Improve the databases and case management systems used to connect individuals with services, helping case workers access more accurate information and efficiently coordinate support.
• Optimizing contact centers and self-service: Contact center-as-a-service capabilities to analyze why residents are calling, identify repeat questions and automate common requests so issues are resolved faster and fewer calls need to reach a live agent.

Kyndryl Consult can help agencies assess modernization priorities, develop transformation roadmaps, determine migration readiness and implementation planning using a combination of AI workflows and deep domain expertise underpinned by the Kyndryl Agentic AI Framework. In addition, Kyndryl Bridge, Kyndryl's AI-powered, open integration platform, supports the integration, observation and orchestration of IT environments to provide actionable insights that help organizations run and transform their IT estates.

Agencies interested in learning more can visit the NASPO ValuePoint supplier page or book a consultation with Kyndryl.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl Press Contact
press@kyndryl.com

About NASPO
NASPO® is a non–profit association dedicated to advancing public procurement through leadership, excellence, and integrity. It is made up of the directors of the central purchasing offices in each of the 50 states, the District of Columbia, and the territories of the United States. NASPO is an organization that helps its members achieve success as public procurement leaders through the promotion of best practices, education, professional development, research, and innovative procurement strategies. Learn more at www.naspo.org.

About NASPO ValuePoint
NASPO ValuePoint® is the cooperative purchasing division of the National Association of State Procurement Officials (NASPO), facilitating cooperative public procurement solicitations using a Lead State Model®. NASPO aggregates the demand of all 50 states, the District of Columbia, the US territories, their political subdivisions, and other eligible entities, spurring best value, innovation, and competition in the marketplace. NASPO ValuePoint delivers high-value, reliable, and competitively sourced cooperative contracts - offering public entities outstanding prices, favorable terms and conditions, and value-added services. Learn more at www.naspovaluepoint.org.

NASPO®, NASPO ValuePoint®, their logos, and Lead State Model® are trademarks of the National Association of State Procurement Officials.

 

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SOURCE Kyndryl

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Which public entities can use Kyndryl’s NASPO ValuePoint contract?

Eligible participants include state agencies, higher education institutions, counties, municipalities and other public entities across the United States that participate in NASPO ValuePoint cooperative purchasing.

What types of modernization projects can agencies pursue through this contract?

Agencies can use the contract for projects such as modernizing mission-critical legacy systems (including mainframe and mainframe-as-a-service), improving high-volume constituent services like driver’s license and vehicle registration systems, enhancing re-entry and social services case-management platforms, and optimizing contact centers and self-service using contact center-as-a-service capabilities.

How can agencies learn more or engage with Kyndryl under this agreement?

Agencies can visit the NASPO ValuePoint supplier page for details on the contract or book a consultation with Kyndryl to discuss their modernization needs.