SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $582M General Services Administration Contract
Summary
SAIC won a $582M delivery order from the GSA for system software lifecycle engineering, adding ~$233M in annual revenue to a $7.4B top line. The contract is supported by legislative tailwinds from the ASCEND Act and Remote Access Security Act, reinforcing SAIC's position in federal IT modernization.
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Key Takeaways
- 1.SAIC secured a $582M GSA contract for software lifecycle engineering, adding ~$233M annual revenue.
- 2.The contract is supported by the ASCEND Act and Remote Access Security Act, signaling legislative backing for technology and defense spending.
- 3.At ~3% of annual revenue, the contract is meaningful but not transformative for SAIC.
- 4.Potential subcontractors like CACI and Booz Allen Hamilton may benefit indirectly.
Market Implications
SAIC's stock should see improved sentiment due to the contract's size and legislative support. The award enhances revenue visibility and may lead to upward revisions in earnings estimates. Competitors like CACI and Booz Allen Hamilton may also see sector-wide interest as defense IT spending gains momentum. However, the contract is not transformative for SAIC's overall business, so the impact is moderate.
Full Analysis
The General Services Administration awarded Science Applications International Corporation (SAIC) a $582M delivery order for system software lifecycle engineering services. The contract runs from March 2025 to September 2027, covering software development, maintenance, and lifecycle support for federal systems. SAIC is the direct recipient, a publicly traded company (SAIC) with $7.4B in FY2026 revenue. The annualized revenue impact is approximately $233M, or 3.1% of revenue, which is a meaningful boost to the company's software services segment. The award aligns with the ASCEND Act (HR2600) and the Remote Access Security Act (HR2683), both bullish bills that prioritize technology and defense spending. While no specific subcontractors are named, typical suppliers in this space include IT services firms like CACI (CACI) and Booz Allen Hamilton (BAH), which could see downstream demand. Historically, defense IT contractors like SAIC benefit from multi-year contracts that provide stable revenue and margin expansion, especially when tied to legislative priorities. This contract strengthens SAIC's backlog and competitive position in the federal software lifecycle market.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
ASCEND Act
Remote Access Security Act
RAUMA MARINE CONSTRUCTIONS OY: $1.1B Department of Homeland Security Contract
SPENCER CONSTRUCTION LLC: $1.1B Department of Homeland Security Contract
PANTEXAS DETERRENCE, LLC: $3.5B Department of Energy Contract
FERMI FORWARD DISCOVERY GROUP, LLC: $2.4B Department of Energy Contract
FISHER SAND & GRAVEL CO: $2.8B Department of Homeland Security Contract
SOUTHWEST VALLEY CONSTRUCTORS CO: $1.7B Department of Homeland Security 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
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$582,202,207
Awarding Agency
General Services Administration
Sub-Agency
Federal Acquisition Service
Contract Type
DELIVERY ORDER
Related Bills
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