SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $40.8M Department of Transportation Contract
Summary
SAIC has secured a $40.8 million contract from the FAA for Terminal Flight Data Manager (TFDM) program support, representing a modest but consistent revenue stream for the company. This award reinforces SAIC's role in critical aviation infrastructure projects.
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Key Takeaways
- 1.SAIC ($SAIC) secures a $40.8M contract for FAA's TFDM program support.
- 2.The contract represents approximately 0.55% of SAIC's annual revenue, indicating consistent business rather than a major catalyst.
- 3.No direct legislative connection from the provided bill signals; likely part of ongoing FAA modernization efforts.
Market Implications
For SAIC ($SAIC) investors, this contract signifies continued stability in its government services segment. While not a massive revenue driver, it reinforces the company's position as a reliable partner for critical federal IT and aviation infrastructure projects. The consistent flow of such awards contributes to SAIC's predictable revenue streams and dividend stability, making it an attractive option for long-term, value-oriented investors. No immediate significant stock movement is anticipated solely from this award, but it underpins the company's foundational business.
Full Analysis
Science Applications International Corporation (SAIC) has been awarded a Delivery Order worth $40.8 million by the Department of Transportation's Federal Aviation Administration (FAA). This contract, spanning from January 12, 2024, to May 15, 2026, is for continued support of the Terminal Flight Data Manager (TFDM) program, which is vital for modernizing air traffic control operations.
SAIC, trading under the ticker $SAIC, reported annual revenues of approximately $7.4 billion in its most recent fiscal year. This $40.8 million contract represents approximately 0.55% of SAIC's annual revenue, making it a routine, yet significant, piece of business that contributes to their consistent revenue base rather than a transformative event. SAIC has a long history of providing IT and technical services to federal agencies, and this award aligns perfectly with their core competencies in government contracting.
There are no direct legislative signals from the provided list that specifically authorize or directly fund the FAA's TFDM program. The listed bills primarily focus on healthcare, finance, education, and various infrastructure and environmental projects, none of which directly relate to aviation modernization or air traffic control systems. Therefore, this contract appears to be part of ongoing, budgeted FAA operational and modernization expenditures rather than a direct result of new, specific legislation.
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 $MSFT (Microsoft) or $ORCL (Oracle) could provide underlying software platforms or database solutions. Additionally, smaller, specialized technology firms focused on aviation software or systems integration might act as subcontractors, though specific names are not publicly available for this award. Historically, SAIC's stock performance tends to be stable with consistent government contract awards, showing gradual growth rather than sharp spikes from individual contracts of this size.
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.
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SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract
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SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $20.8M Department of Transportation Contract
OLH TECHNICAL SERVICES, LLC: $12.2M Department of Justice Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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.
Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
This executive order restricts waivers for foreign-sourced critical materials in defense contracts, effective January 1, 2027, and mandates that defense contractors map their supply chains from raw materials to end products, vet subcontractors for risks, and prohibit covered materials from unreliable foreign suppliers. It directs the Secretary of War to enforce strict compliance, including requiring mitigation plans for any non-compliant materials and establishing penalties for fraud or willful noncompliance.
Contract Details
Recipient
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$40,761,764
Awarding Agency
Department of Transportation
Sub-Agency
Federal Aviation Administration
Contract Type
DELIVERY ORDER
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