SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $607M General Services Administration Contract
Summary
SAIC wins a $607M delivery order from GSA for system software lifecycle engineering, adding ~$243M in annual revenue (~3.3% of FY2026 revenue). This is a meaningful but not transformative contract for the pure-play government IT contractor.
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Key Takeaways
- 1.SAIC secures $607M delivery order for system software lifecycle engineering from GSA.
- 2.Contract adds ~$243M annual revenue, representing ~3.3% of FY2026 revenue.
- 3.No direct legislative connection; award reflects routine federal IT procurement.
Market Implications
The contract is positive for SAIC, adding ~$243M in annual revenue visibility. However, given the modest size relative to total revenue, the stock impact is likely moderate. SAIC's valuation may see a slight uptick as the market prices in improved backlog stability. No direct implications for other tickers unless subcontractors are named.
Full Analysis
The General Services Administration awarded Science Applications International Corporation (SAIC) a $607M delivery order for System Software Lifecycle Engineering (SSLE). The contract runs from March 2025 to September 2027, covering software development, maintenance, and lifecycle support for federal systems. SAIC is the direct recipient and publicly traded under .
SAIC reported FY2026 revenue of $7.4B, down from $7.7B in FY2025. The $607M award, spread over ~2.5 years, equates to roughly $242.8M annually, or 3.3% of current revenue. While not a game-changer, it provides a stable revenue stream and bolsters SAIC's backlog in a competitive federal IT market.
No specific legislation directly authorizes this contract. The related bill signals provided (e.g., S5189 on defense standards, S5194 on courthouses) are not connected to software lifecycle engineering or GSA IT services. Thus, this award appears driven by routine agency procurement rather than a legislative catalyst.
Downstream, SAIC may subcontract portions of the work to smaller IT services firms, but no specific subcontractors are identified in the award. Potential beneficiaries could include companies like CACI International ($CACI) or Booz Allen Hamilton ($BAH) if they partner, but this is speculative.
Historically, multi-year IT services contracts for federal agencies provide steady revenue visibility for contractors like SAIC. Similar awards have supported stable stock performance, though the impact is typically gradual rather than a sharp catalyst.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $610M General Services Administration Contract
CACI, INC. - FEDERAL: $478M Department of Homeland Security Contract
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
$607,154,309
Awarding Agency
General Services Administration
Sub-Agency
Federal Acquisition Service
Contract Type
DELIVERY ORDER
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