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.
See which stocks are affected
Key takeaways, market implications, full AI analysis, and connected signals are available to HillSignal members.
Already have an account? Log in
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
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $607M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $641M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $610M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $680M General Services Administration Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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.
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
Restriction on Entry of Certain Nonimmigrant Workers
This proclamation extends for an additional 12 months the existing restriction on entry of H-1B nonimmigrant workers, which requires a $100,000 payment per petition (with limited exceptions) and is supported by a DHS weighted selection process that prioritizes higher-skilled, higher-paid workers. The action continues to target IT staffing and outsourcing firms that have abused the program, and it maintains the requirement for ongoing rulemakings by DHS and DOL to further reform wage protections and program integrity.
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
Free — no credit card
Get the next market-moving signal before the news does
HillSignal scores every Congressional bill, federal contract, and insider filing for market impact and emails you the high-conviction ones — free, no credit card.
Weekly digest — the congressional activity that actually moved markets that week, in plain English. Free, one email.
Free forever plan · No credit card · Unsubscribe in one click
Want the live terminal too? Create a free account →