Leidos and Altaris Form Joint Venture to Enhance Security Screening Solutions

Leidos, a key player in federal contracting and technology solutions, has recently formed a joint venture with investment firm Altaris, branded as Analogic. This joint endeavor combines their expertise in security screening technology, engineering, and manufacturing, specifically aimed at the airport, border, and critical infrastructure markets. While the creation of this joint venture itself does not represent a direct procurement award, it sets the stage for Leidos’s ongoing involvement in significant federal contracting opportunities, particularly with agencies like the Transportation Security Administration (TSA) and U.S. Customs and Border Protection (CBP).

Notably, the newly established Analogic venture comes in the context of the Department of Homeland Security's (DHS) continuous efforts to integrate advanced technologies into security operations. With the current climate emphasizing the need for secure travel and commerce, Analogic is positioned to provide cutting-edge screening solutions that will meet the evolving demands of security protocols worldwide. Leidos CEO Tom Bell noted that this joint venture equips them to respond efficiently to the dynamic security needs depicted in their NorthStar 2030 strategy.

The joint venture’s operations will capitalize on Leidos’s established infrastructure and workforce as about 1,500 employees have transitioned from its Security Enterprise Solutions business to Analogic. This strategic move incorporates approximately $625 million in projected revenue for 2026, emphasizing the venture's scale and potential impact within the security screening sector. Furthermore, with a focus on detection and imaging technologies, Analogic is expected to leverage advancements in 3D imaging and artificial intelligence to enhance the effectiveness of security screening processes. This integration reflects broader trends in procurement, where agencies are increasingly seeking technology-driven solutions to improve operational efficiencies.

Currently, Leidos is actively pursuing substantial opportunities that could further amplify its operational footprint. The TSA has announced a potential award of $672.5 million for checkpoint screening equipment which will serve various government sites, indicating a robust demand for advanced security equipment in response to national safety imperatives. Additionally, CBP has introduced a potential contract worth $270 million for medium-energy mobile systems designed for non-intrusive inspection. Collectively, these opportunities underscore the ongoing investments by the federal government in improving security capabilities across multiple layers of travel and infrastructure.

For suppliers and contractors specializing in screening equipment and related technologies, the formation of Analogic signals a notable shift in the competitive landscape. As challenges evolve around security at airports and borders, those in the procurement space should consider how this joint venture might influence partnership opportunities and competitive positioning. It will be crucial for businesses to align their product offerings and capabilities with the specific needs articulated in upcoming solicitations and required equipment deployments.

Given the anticipated growth in security screening contracts, interested vendors should actively seek to monitor agency communications and prepare for potential solicitations in the near future, ensuring they are well-positioned to contribute to this expanding market.

• Leidos and Altaris's joint venture, Analogic, combines security screening technology and engineering.
• Opportunities from TSA for up to $672.5 million in checkpoint screening contracts exist.
• CBP is looking at $270 million for non-intrusive inspection operations involving medium-energy mobile systems.
• The Analogic venture includes around 1,500 employees transferring from Leidos.
• Competition in the security screening market may evolve with the formation of the Analogic brand.
• Businesses should align capabilities with anticipated federal needs in the security space as contracts emerge.