SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $196M Department of State Contract
Summary
SAIC wins a $196 million interim delivery order from the Department of State for engineering, operations and maintenance, and cybersecurity support for core data networks. This contract represents approximately 1.5% of SAIC's annual revenue, providing a moderate but steady boost to its IT services backlog.
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Key Takeaways
- 1.SAIC secures a $196 million State Department IT contract, adding ~1.5% to annual revenue.
- 2.The contract covers engineering, O&M, and cybersecurity for core networks, reinforcing SAIC's federal IT position.
- 3.No direct legislative catalyst; the award is a routine interim delivery order under existing appropriations.
Market Implications
SAIC's stock may see modest positive movement on the contract news, but given the size relative to revenue, it is unlikely to drive significant revaluation. The contract reinforces SAIC's position in government IT, a stable and recurring revenue source. Investors should monitor the company's overall backlog and future awards from civilian agencies for broader trends.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 71 separate government actions have converged on Cybersecurity / Zero Trust. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 30 bills, 26 federal contracts, 13 procurement notices and 2 executive actions — it's the clearest early tell that Washington is committing to cybersecurity / zero trust, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- ContractDELOITTE & TOUCHE LLP: $66.8M Department of Veterans Affairs Contract · 2024-08-26
- BillHealth Care Providers Safety Act of 2025 · 2025-01-22
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- BillRemote Access Security Act · 2026-01-13
- ContractLOCKHEED MARTIN CORPORATION: IGF::OT::IGF AFSOC ACTS AWARD OF CONTRACT FOR CLS, ENGINEERING, INSTRUCTION, CYBERSECURITY, DMO · 2026-03-20
- ContractCACI, INC. - FEDERAL: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP A DEFEND A OPTION EXERCISE AND TRANSFER FROM PIID 47QFCA18F0050 · 2026-04-07
- Procurement noticeIntegrated Defensive Cyberspace System (IDCS) Secure Platform Architecture for Real-Time Threat Analysis and Network Defense (SPARTAN) · 2026-05-11
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES · 2026-05-26
- Executive actionExecutive Order: Promoting Advanced Artificial Intelligence Innovation and Security · 2026-06-02
- Executive actionPresidential Memorandum: National Security Presidential Memorandum/NSPM-12 · 2026-06-12
- ContractCGI FEDERAL INC.: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP C DEFEND C · 2026-07-07
- Procurement noticeSources Sought C5ISRT NEXT GENERATION CYBERSECURITY AND INFORMATION ASSURANCE · 2026-08-11
- ContractSALIENSE CONSULTING LLC: CYBERSECURITY AND PRIVACY SUPPORT AND SERVICES · 2026-08-11
- ContractBOOZ ALLEN HAMILTON INC: $172M Department of Veterans Affairs Contract · 2026-08-12
Full Analysis
Science Applications International Corporation (SAIC) has been awarded a $196 million interim delivery order by the Department of State to provide primary engineering, tier II and III operations and maintenance, and cybersecurity support for the department's core data networks and services, including command-and-control messaging, email, mobile, and remote access. The contract runs from May 2025 to February 2027, covering roughly 21 months. SAIC is a publicly traded IT and defense services company with $7.4 billion in annual revenue (FY2026). This award annualizes to about $112 million, or 1.5% of revenue—a meaningful but not transformative addition. The contract reinforces SAIC's established relationship with the State Department and its expertise in secure network operations. No direct legislative connection is evident from the provided bill signals; the contract appears to be a routine renewal under existing appropriations. Supply chain beneficiaries are not specified, but smaller IT subcontractors specializing in cybersecurity or network infrastructure could see downstream benefits. Historically, multi-year IT services contracts for federal agencies provide stable, recurring revenue for primes like SAIC, supporting consistent cash flows and backlog growth without dramatic stock price swings.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
FERMI FORWARD DISCOVERY GROUP, LLC: $2.4B Department of Energy Contract
DELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract
FERMI FORWARD DISCOVERY GROUP, LLC: $2.4B Department of Energy Contract
FERMI FORWARD DISCOVERY GROUP, LLC: $2.5B Department of Energy Contract
Proclamation: Adjusting Imports of Polysilicon and its Derivatives into the United States
CITY UNIVERSITY OF NEW YORK, THE: $621M Department of Education Federal Award
EXECUTIVE OFFICE STATE OF OHIO: $842M Department of the Treasury Federal Award
STATE OF NEW YORK: $773M Department of the Treasury Federal Award
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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.
Expanding Capabilities to Combat Transnational Cyber-Enabled Crime
This memorandum establishes a government program, managed by the National Coordination Center (NCC), that authorizes private companies to conduct cyber surveillance and operations against foreign cyber-enabled transnational criminal organizations under federal oversight. It directs the Department of Justice and Department of Homeland Security to co-execute the program, requiring vetted companies to enter contracts with the government and potentially post a $1 million bond, with implementation guidance to be developed within 60 days.
Adjusting Imports of Polysilicon and its Derivatives into the United States
This proclamation invokes Section 232 of the Trade Expansion Act to impose a minimum import price (MIP) program on polysilicon and its derivatives, a 15% ad valorem tariff on polysilicon derivatives, and directs the Secretary of Commerce to offer incentives for domestic production. It aims to protect and revive the U.S. polysilicon industry by restricting imports that threaten national security, particularly for semiconductor and solar supply chains.
Contract Details
Recipient
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$195,894,193
Awarding Agency
Department of State
Sub-Agency
Department of State
Contract Type
DELIVERY ORDER
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