SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $19.2M Department of Transportation Contract
Summary
This $19.2 million contract for Traffic Flow Management System support is a routine, yet significant, award for Science Applications International Corporation ($SAIC), reinforcing its role in critical FAA infrastructure. While not transformative, it provides steady revenue and maintains $SAIC's position in a specialized government IT sector.
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Key Takeaways
- 1.SAIC maintains its critical role in FAA air traffic management with this $19.2M contract.
- 2.The contract represents a steady, albeit small, revenue stream for SAIC, approximately 0.26% of annual revenue.
- 3.No direct legislative backing from the provided bill signals, indicating it's part of routine operational funding.
- 4.Potential downstream beneficiaries include aerospace and defense component suppliers like Lockheed Martin ($LMT) and Raytheon Technologies ($RTX).
Market Implications
For $SAIC, this contract reinforces its position as a reliable government contractor, contributing to its stable revenue base. While the revenue impact is modest at 0.26% of annual revenue, it signals continued demand for SAIC's specialized services. Investors should view this as a positive indicator of operational consistency rather than a growth catalyst. The lack of direct legislative connection suggests this is a standard operational award, not tied to new, large-scale government spending initiatives that could significantly boost the sector. The broader aerospace and defense IT sector, including potential suppliers like $LMT and $RTX, benefits from the continued investment in critical infrastructure.
Full Analysis
Science Applications International Corporation ($SAIC) has been awarded a $19.2 million delivery order by the Department of Transportation's Federal Aviation Administration (FAA). This contract is for the continued support of the Traffic Flow Management System (TFMS) and Flow Management Data and Services (FMDS) program, running from January 4, 2024, to May 15, 2026. This award signifies the FAA's ongoing reliance on SAIC for essential air traffic management systems.
SAIC, a publicly traded company with the ticker $SAIC, reported annual revenues of approximately $7.4 billion in its most recent fiscal year. This $19.2 million contract represents approximately 0.26% of SAIC's annual revenue. While not a major catalyst, it is a consistent revenue stream that contributes to the company's backlog and demonstrates its continued expertise in government IT and systems integration. SAIC is a prime contractor in various government sectors, and these types of awards are fundamental to its business model.
There are no direct legislative bill signals from the provided list that specifically authorize or directly fund the Traffic Flow Management System (TFMS) or Flow Management Data and Services (FMDS) program. The listed bills primarily focus on healthcare, finance, education, infrastructure, and environmental services, with no direct connection to FAA air traffic control systems. Therefore, this contract appears to be part of ongoing operational spending rather than a direct result of new legislative initiatives.
Potential supply chain beneficiaries for a contract of this nature could include companies providing specialized software components, hardware, or consulting services. For instance, companies like Lockheed Martin ($LMT) or Raytheon Technologies ($RTX) (through its Collins Aerospace unit) often supply critical components or systems for large-scale aerospace and defense IT projects. Smaller, specialized software firms that develop specific modules for air traffic control systems could also benefit, though identifying specific private entities is beyond the scope of this analysis. Historically, SAIC's stock performance has shown stability with consistent government contract wins, with minor upticks on larger, more strategic awards. Routine support contracts like this tend to reinforce investor confidence in steady earnings rather than driving significant short-term price movements.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
Making appropriations for national security, Department of State, and related programs for the fiscal year ending September 30, 2027, and for other purposes.
No Aid for Ghost Students Act of 2026
FOX-ESA JV LLC: $37.0M Department of Veterans Affairs Contract
KPB SERVICES LLC: $29.9M Department of Homeland Security Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract
BUST FENTANYL Act
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $40.8M Department of Transportation Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $20.8M Department of Transportation Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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.
Presidential Determination Pursuant to Section 101 of the Defense Production Act of 1950, as Amended, on Recoverable Critical Minerals and Materials
This memorandum invokes the Defense Production Act (DPA) Section 101 to declare that recoverable critical minerals and materials (such as black mass, end-of-life rare-earth magnets, and scrap) are essential to national defense and that the U.S. cannot meet defense needs without disrupting civilian markets. It directs the Secretary of Commerce to issue regulations and take actions—including priority contracts and supply-chain interventions—to rapidly expand domestic recovery and processing of these materials, while explicitly excluding copper scrap already covered by a separate proclamation.
Further Strengthening Actions Taken to Adjust Imports of Aluminum into the United States
This proclamation modifies the Section 232 tariff regime on aluminum imports by authorizing the Secretary of Commerce to establish a program that incentivizes new U.S. investment in primary aluminum production. Companies with approved onshoring plans can import primary aluminum at half the standard Section 232 duty rate, up to the anticipated annual output of their new or expanded facilities, with construction required to start by January 20, 2029. The action aims to boost domestic primary aluminum supply for national security and defense industrial base needs.
Contract Details
Recipient
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$19,202,744
Awarding Agency
Department of Transportation
Sub-Agency
Federal Aviation Administration
Contract Type
DELIVERY ORDER
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