Telos Corporation Awarded $13.7 Million Contract to Modernize Cyber Risk Management for U.S. Department of Health and Human Services

The award also covers cybersecurity services, enterprise integration, training and data migration.

Rhea-AI Summary

Telos (TLS) won a $13.7 million contract to modernize cybersecurity risk and compliance processes for the U.S. Department of Health and Human Services.

Under the 18-month task order, Telos will deploy its Xacta 360, Xacta.io and Xacta.ai software for HHS security offices. The full Xacta suite is authorized at the FedRAMP Class D (High) impact level.

Positive

• $13.7 million HHS contract awarded for an 18-month task order

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• None.

Key Figures

Contract award: $13.7 million Task order duration: 18 months

Contract award

$13.7 million

HHS cyber risk management modernization

Task order duration

18 months

Deployment of the Xacta suite for HHS

Key Terms

fedramp, grc, authority to operate, saas

4 terms

fedramp regulatory

"full FedRAMP Class D (High)-authorized Xacta suite"

FedRAMP (Federal Risk and Authorization Management Program) is a U.S. government initiative that sets security standards for cloud computing services used by federal agencies. It ensures that these online platforms protect sensitive information, similar to how a security system safeguards a building. For investors, FedRAMP indicates that a cloud service meets strict security requirements, which can influence its reliability and trustworthiness in handling data.

grc technical

"cyber governance, risk and compliance (GRC)"

GRC stands for Governance, Risk, and Compliance, a coordinated approach companies use to set rules, spot and manage threats, and follow laws and industry standards. Think of it as a company's operating manual and early-warning system—like household rules, smoke detectors, and a neighborhood code—that helps protect the business from legal fines, operational surprises, and reputational harm, which in turn reduces investor uncertainty and potential losses.

authority to operate regulatory

"Authority to Operate (ATO) processes"

A formal, documented approval from a regulator or designated authorizing official that allows a system, product, facility, or operation to run after tests and compliance checks show risks are managed to an acceptable level. It’s like a license or safety check that certifies operations meet required rules and controls; for investors, it signals reduced regulatory uncertainty and permission to begin or continue revenue-generating activities under oversight.

saas technical

"Xacta’s SaaS capabilities in environments"

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.

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

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HHS selects full FedRAMP Class D (High)-authorized Xacta suite to modernize enterprise cyber GRC and Authority to Operate processes.

ASHBURN, Va., Sept. 28, 2026 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world’s most security-conscious organizations, today announced a $13.7 million contract award from the U.S. Department of Health and Human Services (HHS) to modernize cyber governance, risk and compliance (GRC) and Authority to Operate (ATO) processes across the HHS enterprise.

Under the 18-month task order, Telos will deploy its full FedRAMP Class D (High)-authorized Xacta^® suite – Xacta 360™, Xacta.io™ and Xacta.ai™ – for the HHS Office of the Chief Information Officer (OCIO), Office of Information Security (OIS). The award also includes cybersecurity services, enterprise integration, training and data migration services to support implementation and adoption.

Together, the integrated Xacta capabilities will provide HHS with a comprehensive platform to modernize and automate cybersecurity risk and compliance activities. Xacta 360 will streamline security authorization workflows, control assessments, compliance documentation and continuous monitoring; Xacta.io will integrate data from security tools across the enterprise to improve visibility into cyber risk and security posture; and Xacta.ai will apply AI-powered analysis and automation to reduce manual effort, accelerate compliance activities and generate actionable risk and compliance insights.

“Deploying the full Xacta suite across the HHS enterprise demonstrates the scale and breadth of what our cyber GRC platform can deliver for large, complex federal organizations,” said John B. Wood, chairman and chief executive officer, Telos. “This award reflects the need for an integrated approach to cyber risk management that brings automation, enterprise security data and AI together in a secure cloud environment.”

The full Xacta platform is authorized at the FedRAMP Class D (High) impact level, the program’s highest security baseline. This authorization enables federal agencies to deploy Xacta’s SaaS capabilities in environments that handle sensitive unclassified information through a standardized, government-wide approach to cloud security assessment and authorization.

Learn more about Xacta at www.telos.com/offerings/xacta.

About Telos Corporation
Telos Corporation (NASDAQ: TLS) empowers and protects the world’s most security-conscious organizations with efficient, adaptable, and secure solutions that safeguard people, systems, and information. We deliver advanced capabilities across cyber governance, risk, and compliance (GRC) with Xacta^®; identity and biometric solutions; secure networks and communications; and TSA PreCheck^® enrollment services. Serving the U.S. federal government, regulated industries, and global enterprises, Telos helps customers stay ahead of evolving threats, accelerate compliance, and achieve mission success. Driven by purpose and guided by our core values, we build trusted partnerships, deliver superior solutions, and help create a more secure, interconnected world. Learn more at https://www.telos.com/.

Forward-Looking Statements
This press release contains forward-looking statements which are made under the safe harbor provisions of the federal securities laws. These statements are based on the Company’s management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to them. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in the Company’s filings and reports with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent and future filings and reports by the Company, copies of which are available at https://investors.telos.com and on the SEC’s website at www.sec.gov.

Although the Company bases these forward-looking statements on assumptions that its management believes are reasonable when made, the Company cautions the reader that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and liquidity, solution and contract performance, and industry developments, may differ materially from statements made in or suggested by the forward-looking statements contained in this release. Given these risks, uncertainties and other factors, many of which are beyond its control, the Company cautions the reader not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date of such statement and, except as required by law, the Company undertakes no obligation to update any forward-looking statement publicly, or to revise any forward-looking statement to reflect events or developments occurring after the date of the statement, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

Media: media@telos.com
Investors: InvestorRelations@telos.com

FAQ

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

How much is Telos's HHS contract, and how long is the task order?

Telos received a $13.7 million contract award from HHS under an 18-month task order.

What services are included in Telos's HHS award beyond the Xacta software?

The award includes cybersecurity services, enterprise integration, training and data migration to support implementation and adoption.