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
Active government convergence in this signal’s sector right now.
Over the last 90 days, 428 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 — 315 procurement notices, 85 federal contracts, 20 bills, 3 news, 3 executive actions and 2 patents — 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
- Procurement noticeCloud-Based Internet Isolation (CBII) Service · 2024-10-30
- Procurement noticeCommercial VoIP Services · 2024-11-04
- Procurement noticeMaintenance and Repair - Area Maintenance Support Activity (AMSA) - Sacramento, CA · 2024-11-05
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- Procurement noticeGenAI Request for Information-Results Update · 2025-05-27
- Procurement noticeDJ01--Zero Trust Application Realtime Protection (ZARP) (VA-25-00093376) · 2025-09-16
- Procurement noticeAzimuth Gearbox Assembly Requirement Documents · 2025-12-29
- Procurement noticeUSACE Critical Infrastructure Cybersecurity Modular SCIF · 2026-03-31
- 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
- Procurement noticeINTEGRATED TEST LABORATORY (ITL) SUPPORT · 2026-07-14
- Executive actionProclamation: Adjusting Imports of Wind Turbines and Their Parts and Components into the United States · 2026-10-22
- Procurement notice711th HPW Mission Support Services MAC IDIQ · 2026-10-23
- Procurement noticeREQUEST FOR INFORMATION (RFI) FOR GROUP 1 AND GROUP 2 UNMANNED AIRCRAFT SYSTEM (UAS) TRAINING, MISSION PLANNING, MISSION REHEARSAL, SIMULATION, AND QUALIFICATION MANAGEMENT SYSTEMS · 2026-10-23
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
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $172M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $279M General Services Administration Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Adjusting Imports of Wind Turbines and Their Parts and Components into the United States
This proclamation initiates negotiations to adjust imports of wind turbines and their components under Section 232, citing national security concerns including cybersecurity vulnerabilities, radar interference, and grid reliability. It does not immediately impose tariffs but sets the stage for potential trade restrictions, and notes that certain wind turbine components made of aluminum, steel, or copper are already subject to existing tariffs.
Advancing Women's Health to Improve Outcomes in All Phases of Life
This executive order establishes a Women's Health Division within the NIH to coordinate and accelerate research on understudied women's health conditions, and creates a White House Women's Health Task Force to drive policy reforms and translation of research into clinical practice across federal agencies. It directs specific agencies to prioritize research, data collection, and translation into prevention, diagnosis, and treatment, with a focus on all life stages from infancy through aging.
Streamlining Access to Government Services Through America.gov
The executive order directs the General Services Administration to create America.gov, a unified digital portal for federal services, integrating Login.gov for authentication and requiring agencies to expose their digital services via APIs. It also mandates the use of AI (referred to as 'super intelligence') with transparency safeguards, while preserving existing service channels and excluding tax and defense/intelligence services.
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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