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
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $208M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $20.0M Department of Transportation Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $40.8M Department of Transportation Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Declaring a National Emergency to Secure the United States Bulk-Power System
This executive order declares a national emergency to restrict foreign-produced bulk-power system electric equipment that poses national security risks, prohibiting new transactions involving equipment from covered foreign entities and allowing the Secretary of Energy to impose conditions on existing equipment. It directs the Secretary of Energy, in coordination with multiple agencies, to identify, mitigate, and potentially replace risky equipment, and establishes a pre-qualification list for approved vendors.
The National Space Transportation Policy
This memorandum directs multiple agencies to expand and modernize U.S. space launch and reentry infrastructure to support over 1,000 launches annually by 2030, expedite permitting and environmental reviews, develop new federal reentry sites, and strengthen the space transportation industrial base. It mandates range scheduling transparency, spectrum reliability, and workforce development, with specific reports and plans due within 90 to 240 days.
Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States
This proclamation imposes a 100% ad valorem tariff on imports of unmanned aircraft systems (UAS) over 25 kg, those with thermal imagers, docking stations, and certain components, and a 25% tariff on UAS under 25 kg and other components, citing national security under Section 232 of the Trade Expansion Act. It also authorizes the Department of Commerce to establish an onshoring program offering preferential tariff treatment for companies that build new U.S. manufacturing facilities for UAS and components.
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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