contract_award•Awarded Friday, January 12, 2024• Tracked Wednesday, March 18, 2026Analyzed

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $20.8M Department of Transportation Contract

Neutral

Impact4/10

Science Applications International ($SAIC)Aerospace & Defense Technology Government Services

Summary

This $20.8 million contract to Science Applications International Corporation ($SAIC) from the FAA provides ongoing support for legacy radar systems, representing a routine but consistent revenue stream for the company.

Key Takeaways

1.SAIC secures a $20.8M contract for FAA radar system support, reinforcing its role in critical infrastructure.
2.The contract represents a small but stable revenue contribution (0.28%) to SAIC's annual revenue.
3.No direct legislative backing was identified, indicating funding from existing FAA operational budgets.
4.The award highlights SAIC's consistent presence in government IT and technical services.

Market Implications

This contract provides a stable, albeit small, revenue stream for Science Applications International Corporation ($SAIC), contributing to its overall financial predictability. Investors in $SAIC should view this as a routine operational win that helps maintain the company's baseline performance rather than a significant growth catalyst. The lack of direct legislative ties means this contract is likely part of ongoing, budgeted expenditures, reducing its potential for market-moving news.

Full Analysis

Science Applications International Corporation ($SAIC) has been awarded a $20.8 million delivery order by the Department of Transportation's Federal Aviation Administration (FAA). This contract is for "NON-COOPERATIVE & INTEGRATED RADAR SYSTEMS SUPPORT LEGACY SURVEILLANCE PROGRAMS (AJM-41)" and spans from January 12, 2024, to May 15, 2026. This award signifies continued federal investment in maintaining critical air traffic control infrastructure. SAIC (NYSE: $SAIC) reported annual revenues of approximately $7.4 billion for fiscal year 2023. This $20.8 million contract represents approximately 0.28% of SAIC's annual revenue. While not a transformative award, it contributes to the company's consistent revenue base and reinforces its position as a key service provider to the FAA. SAIC is a publicly traded company, and this contract directly benefits its shareholders. There are no direct legislative bill signals provided that specifically authorize or fund this particular FAA radar systems support contract. The provided bill signals are largely unrelated to aerospace, defense, or air traffic control infrastructure. This suggests the funding for this contract likely comes from existing FAA appropriations for operations and maintenance, rather than new, specific legislative initiatives. Potential supply chain beneficiaries for radar systems support could include companies providing specialized electronic components, software, or maintenance services. For example, companies like TransDigm Group Incorporated ($TDG) could supply various aerospace components, while smaller, specialized technology firms might provide specific radar parts or software solutions. However, given the nature of legacy systems support, many components might be proprietary or sourced from a limited pool of specialized vendors. Historically, SAIC's stock performance has shown stability with consistent government contract awards. While individual contracts of this size do not typically cause significant stock price movements, a steady stream of such awards contributes to investor confidence in the company's long-term revenue visibility and operational stability. SAIC's business model relies on a broad portfolio of government contracts, making individual awards less impactful than for companies with fewer, larger contracts.