SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $610M General Services Administration Contract
Summary
Science Applications International Corp ($SAIC) has been awarded a $610M delivery order by the GSA for system software lifecycle engineering. This contract represents roughly 8.2% of SAIC's annual revenue, providing a substantial and multi-year revenue boost. The award aligns with legislative tailwinds from the COST Act, which emphasizes cost efficiency in federal IT.
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Key Takeaways
- 1.SAIC wins $610M GSA contract for software lifecycle engineering, representing 8.2% of annual revenue.
- 2.The contract aligns with the COST Act (S4130), which supports cost-efficient federal IT programs.
- 3.Multi-year award provides revenue visibility through 2027, boosting SAIC's backlog and earnings potential.
Market Implications
This contract is a clear positive for $SAIC, providing a multi-year revenue stream that will enhance earnings visibility. The stock may see upward momentum as the market prices in the backlog growth. Competitors like $CACI and $BAH may also benefit from related subcontracting opportunities, but SAIC is the primary beneficiary. The broader federal IT services sector could see increased investor interest given legislative support from the COST Act.
Full Analysis
- The General Services Administration awarded Science Applications International Corporation a $610M delivery order for System Software Lifecycle Engineering (SSLE) services, with a performance period from March 2025 to September 2027. This is a substantial contract for software lifecycle support across federal systems. 2) SAIC, the publicly traded parent company ($SAIC), is the direct recipient. With FY2026 revenue of $7.4B, this $610M contract represents approximately 8.2% of annual revenue, making it a meaningful catalyst. SAIC's operating income of $741M and EPS of $8.88 indicate strong profitability, and this contract will further enhance earnings. 3) The contract is connected to the COST Act (S4130), which aims to improve cost and schedule performance in federal technology programs, directly supporting the lifecycle engineering focus. Additionally, the FORK Act (S5184) and other agriculture bills may indirectly drive demand for IT modernization, but the primary legislative driver is the COST Act. 4) Key subcontractors and suppliers that may benefit include smaller IT services firms like CACI International ($CACI) and Booz Allen Hamilton ($BAH), which often partner on large federal IT contracts. These companies could see downstream demand for specialized software engineering support. 5) Historically, large multi-year IT services contracts from the GSA provide stable revenue streams for defense and technology contractors. SAIC has a track record of winning such awards, and this contract reinforces its position in the federal IT market. Investors should monitor SAIC's backlog growth and margin expansion from this award.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Direct award of a delivery order for system software lifecycle engineering services.
Who must act
General Services Administration (GSA) to Science Applications International Corp (SAIC).
What happens
$610M added to SAIC's backlog, representing approximately 8.2% of its FY2026 annual revenue of $7.4B.
Stock impact
This contract is a significant addition to SAIC's revenue stream, directly boosting its top line in the software lifecycle engineering segment, which is a core part of its business. The multi-year period provides revenue visibility through 2027.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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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.
RESTORING AMERICAN SALTWATER ANGLING AND RECREATION
This executive order directs federal agencies (primarily NOAA and the Department of Commerce) to shift fisheries management toward prioritizing recreational fishing over commercial interests by modernizing data collection, replacing outdated mail-in surveys with real-time mobile reporting, and allowing state-collected data to substitute for federal data when error rates are lower. It also mandates reviewing and potentially revising National Standards under the Magnuson-Stevens Act, rescinding regulations that restrict marine access, and launching pilot programs for iconic fisheries like Atlantic striped bass, with the goal of boosting the $1.2 trillion outdoor recreation sector.
Contract Details
Recipient
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$609,513,507
Awarding Agency
General Services Administration
Sub-Agency
Federal Acquisition Service
Contract Type
DELIVERY ORDER
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