SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $557M General Services Administration Contract
Summary
SAIC received a $557M delivery order from GSA for system software lifecycle engineering, a major contract that represents ~7.5% of its annual revenue, signaling strong demand for federal IT modernization and software lifecycle services.
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Key Takeaways
- 1.SAIC wins $557M GSA contract for software lifecycle engineering, representing 7.5% of annual revenue.
- 2.Contract runs 2025-2027, providing multi-year revenue visibility and backlog growth.
- 3.Related DHS appropriations bill (HR9310) signals continued federal technology spending.
- 4.SAIC's operating income grew 48% YoY, showing margin expansion from similar contracts.
Market Implications
This contract is a direct, high-impact win for SAIC, adding $557M to its backlog. Investors should expect SAIC to report increased revenue and operating income in subsequent quarters, as the contract is a pure-play IT services award. The contract's size relative to SAIC's revenue (7.5%) is transformative, and the multi-year period reduces execution risk. SAIC's stock may see positive momentum from this award, especially given its improving margin profile.
Full Analysis
The General Services Administration (GSA) awarded Science Applications International Corp (SAIC) a $557M delivery order under the System Software Lifecycle Engineering (SSLE) program. This contract is for software lifecycle engineering services, covering design, development, testing, and maintenance of federal systems. SAIC, a $7.4B revenue company (FY2026), is the direct recipient, making this a high-impact award. The contract period runs from March 2025 to September 2027, providing multi-year revenue visibility. Related legislation includes HR9310 (Department of Homeland Security Appropriations Act, 2027, bullish, impact 7/10) and HRES1366 (Taiwan democratic support, neutral, impact 2/10), which signal continued defense and technology spending. SAIC's financials show strong operating income growth from $501M (FY2025) to $741M (FY2026), indicating improving margins. This contract is a pure-play IT services win, with no major subcontractors identified, but smaller IT service firms like CACI International ($CACI) and Booz Allen Hamilton ($BAH) may see indirect benefits from increased federal software spending. Historically, similar GSA IT contracts have led to sustained revenue growth for SAIC, with stock performance tied to backlog growth and margin expansion.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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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
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$557,228,649
Awarding Agency
General Services Administration
Sub-Agency
Federal Acquisition Service
Contract Type
DELIVERY ORDER
Related Bills