ASRC FEDERAL CYBER, LLC: $12.6M Department of Justice Contract
Summary
This $12.6M contract to ASRC Federal Cyber, LLC for Delta Code Support at the DEA is a routine, but consistent, revenue stream for its parent company, Science Applications International Corporation (SAIC). While not transformative, it reinforces SAIC's position in federal IT services.
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Key Takeaways
- 1.ASRC Federal Cyber, LLC (SAIC subsidiary) secures $12.6M DEA contract.
- 2.Contract represents a small but steady revenue stream for SAIC, reinforcing its federal IT presence.
- 3.No direct legislative drivers identified from the provided bill signals, indicating routine operational funding.
Market Implications
For SAIC ($SAIC) investors, this contract is a positive signal of continued operational stability and recurring revenue, but it is unlikely to cause significant stock movement due to its relatively small size compared to SAIC's overall revenue. The government services sector, in which SAIC operates, typically sees steady, predictable growth. Investors should monitor SAIC's overall contract backlog and pipeline for more substantial catalysts. Potential downstream beneficiaries like Microsoft ($MSFT) or cybersecurity firms ($PANW, $CRWD) would see negligible impact from a contract of this scale, as their involvement would be as product suppliers rather than primary service providers.
Full Analysis
ASRC Federal Cyber, LLC, a subsidiary of Science Applications International Corporation (SAIC), has been awarded a $12.6 million delivery order by the Department of Justice's Drug Enforcement Administration (DEA) for Delta Code Support. This contract covers a period of performance from September 28, 2024, to March 27, 2026, indicating ongoing demand for specialized IT and cyber support within federal law enforcement agencies.
Science Applications International Corporation (SAIC), trading under the ticker $SAIC, is the direct beneficiary of this award. With an annual revenue of approximately $7.4 billion (FY2023), this $12.6 million contract represents roughly 0.17% of SAIC's annual revenue. While not a major catalyst on its own, it signifies continued trust in SAIC's capabilities and contributes to its consistent revenue base in the government services sector.
There are no direct legislative signals from the provided list that specifically authorize or directly impact this particular contract for 'Delta Code Support' for the DEA. The listed bills pertain to healthcare, finance, education, infrastructure, and environmental services, none of which directly correlate with federal law enforcement IT support. This suggests the contract is part of ongoing operational budgets and existing agency mandates rather than new, specific legislative initiatives.
Potential supply chain beneficiaries for this type of IT support contract could include software vendors like Microsoft ($MSFT) for operating systems and development tools, or cybersecurity firms such as Palo Alto Networks ($PANW) or CrowdStrike ($CRWD) if their solutions are integrated into the 'Delta Code Support' framework. These companies often provide the underlying technologies that larger integrators like SAIC deploy and manage. Historically, SAIC's stock performance tends to be stable, with incremental gains following a consistent stream of federal contract wins, rather than dramatic spikes from single awards of this size.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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OPTUM PUBLIC SECTOR SOLUTIONS, INC.: $641M Department of Veterans Affairs Contract
HII MISSION TECHNOLOGIES CORP: $579M General Services Administration Contract
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SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $557M General Services Administration Contract
HII MISSION TECHNOLOGIES CORP: $579M General Services Administration Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
National Security Presidential Memorandum/NSPM-12
This memorandum rescinds previous national security directives and re-establishes the Committee on National Security Systems (CNSS) to enforce baseline cybersecurity standards across all National Security Systems (NSS) operated by the Department of War, Intelligence Community, and Federal Civilian Executive Branch agencies. It creates binding directives and complementary standards that must meet or exceed NIST guidelines, empowers the NSA Director as the National Manager to issue emergency directives and cryptography requirements, and holds agency heads accountable through government-wide oversight.
National Security Presidential Memorandum/NSPM-11
This memorandum directs the national security enterprise (including the Department of War, intelligence agencies, and others) to accelerate the adoption, adaptation, and assurance of AI technologies for military and intelligence missions. It mandates updates to DOD Directive 3000.09 on autonomous weapons within 90 days, requires termination of contracts with companies that repeatedly violate policy (e.g., by enabling adversary control or embedding bias), and emphasizes supply chain resilience and multi-vendor sourcing to avoid single-vendor dependencies.
Strengthening Customs Enforcement
This executive order directs the Secretary of Homeland Security to revise customs enforcement regulations within 180 days, requiring importers of record (IORs) to maintain minimum tangible domestic assets or bonding, disclose ownership and business affiliations, and maintain good standing with CBP. It prohibits foreign IORs from filing informal entries for low-value articles and imposes additional bonding and CTPAT validation requirements for foreign IORs on formal entries, aiming to enhance compliance and revenue collection.
Contract Details
Recipient
ASRC FEDERAL CYBER, LLC
Award Amount
$12,615,130
Awarding Agency
Department of Justice
Sub-Agency
Drug Enforcement Administration
Contract Type
DELIVERY ORDER
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