SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract
Summary
SAIC secured a $311M delivery order from the Department of State for core data network and cybersecurity support, representing ~2.4% of annual revenue. This award strengthens SAIC's government IT services backlog and aligns with legislative focus on data center infrastructure. The contract is a moderate positive catalyst for SAIC.
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Key Takeaways
- 1.SAIC's $311M State Department contract adds ~2.4% to annual revenue, reinforcing its government IT services backlog.
- 2.The award aligns with legislative tailwinds for data center transparency and community assistance, supporting sector momentum.
- 3.Investors should monitor SAIC's execution and potential follow-on contracts from this delivery order.
Market Implications
For SAIC, this contract provides a clear revenue boost and validates its competitive position in government IT and cybersecurity. The stock may see modest positive sentiment as the award adds to backlog visibility. Broader sector implications include continued government spending on network modernization and cybersecurity, benefiting peers like $LDOS and $BAH, though this specific award is SAIC's alone. The legislative backdrop (data center bills) suggests sustained demand for IT infrastructure services.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 84 separate government actions have converged on AI Compute / Datacenter Power. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 28 procurement notices, 27 bills, 23 federal contracts, 3 SEC filings and 3 patents — it's the clearest early tell that Washington is committing to ai compute / datacenter power, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- Procurement noticeC1DA--VISN 21 - EHRM Infrastructure Upgrade - Menlo Park Division (VA-25-00009556) · 2024-10-11
- Procurement notice6140--Data Center UPS replacement Installation 640-25-1-5503-0001 | 36C261-24-AP-5705 | MPD B334 · 2024-10-11
- Procurement noticeAFRL-RVKY-2025-SHREC · 2025-01-23
- Procurement noticeHACS Maintenance and Repair of Carrier Equipment at Scofield Barracks Hawaii · 2025-05-12
- Procurement noticeZ2DA--519-23-908 EHRM Tier 2 Data Center Construction - Big Springs · 2025-10-14
- Procurement noticeIndustry Day: Brand-New Air Traffic Control Tower (ATCT) and Terminal Radar Approach Control/Base Building (A11 TRACON) at the Ted Stevens Anchorage International Airport in Anchorage Alaska · 2025-12-09
- ContractCLARK/SMOOT/CONSIGLI, A JOINT VENTURE: IGF::OT::IGF PRE-CONSTRUCTION SERVICES, NATIONAL AIR&SPACE MUSEUM REVITALIZATION · 2026-03-17
- ContractACCENTURE FEDERAL SERVICES LLC: DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF · 2026-09-08
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC · 2026-09-17
- ContractPERATON ENTERPRISE SOLUTIONS LLC: IGF::OT::IGF: FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLIC · 2026-09-29
- BillData Center Transparency Act of 2026 · 2026-09-30
- ContractCA, INC.: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED E · 2026-09-30
- ContractDELL FEDERAL SYSTEMS L.P: DATA CENTER VIRTUAL INFRASTRUCTURE (DCVI) DELL SERVER REFRESHMENT HARDWARE FROM THE AGENCY SERVER HARDWARE IDIQ CONTRACT NO. 28321322D000600 · 2026-10-02
- ContractSCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract · 2026-10-05
This signal is one of the converging government actions below.
Over the last 90 days, 402 separate government actions have converged on Cybersecurity / Zero Trust. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 313 procurement notices, 57 federal contracts, 26 bills, 3 news, 2 executive actions and 1 patents — it's the clearest early tell that Washington is committing to cybersecurity / zero trust, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- Procurement noticeVoice Over Internet Protocol (VoIP) Analysis Solution · 2024-10-15
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- Procurement noticeUSFK AQ SOFA Invited Contractor Program (ICP) Online Request Portal · 2025-05-05
- Procurement noticeMilitary Sealift Command (MSC) Cybersecurity Support Services (CSS) · 2025-08-19
- Procurement noticeGround Based Radar Digitization (GBRD) · 2025-12-01
- ContractLOCKHEED MARTIN CORPORATION: IGF::OT::IGF AFSOC ACTS AWARD OF CONTRACT FOR CLS, ENGINEERING, INSTRUCTION, CYBERSECURITY, DMO · 2026-03-20
- ContractCACI, INC. - FEDERAL: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP A DEFEND A OPTION EXERCISE AND TRANSFER FROM PIID 47QFCA18F0050 · 2026-04-07
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES · 2026-05-26
- Executive actionExecutive Order: Promoting Advanced Artificial Intelligence Innovation and Security · 2026-06-02
- Executive actionPresidential Memorandum: National Security Presidential Memorandum/NSPM-12 · 2026-06-12
- ContractBOOZ ALLEN HAMILTON INC: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP B DEFEND B · 2026-08-31
- BillTo establish in the Cybersecurity and Infrastructure Security Agency of the Department of Homeland Security a task force on artificial intelligence, and for other purposes. · 2026-10-06
- Procurement notice59--CONNECTOR ASSY · 2026-10-06
- Procurement noticeMATRIX,SWITCH · 2026-10-06
Full Analysis
Science Applications International Corporation (SAIC) received a $311M delivery order from the Department of State to provide primary engineering, tier II and III operations and maintenance, and cybersecurity support for the department's core data networks and services, including command-and-control messaging, email, mobile, and remote access. The contract runs from May 2025 to February 2027, approximately 1.75 years. SAIC is the direct recipient and a publicly traded company (NYSE: ) with FY2026 revenue of $7.4B. The annualized revenue impact is roughly $177.7M, or 2.4% of revenue—meaningful but not transformative. SAIC's government IT services and cybersecurity segments are the primary beneficiaries, and this award reinforces its relationship with the State Department. While no specific authorization bill directly funds this contract, related legislative signals such as the Data Center Transparency Act (S5640) and the Data Center Community Assistance Program bill (S5645) indicate growing congressional interest in data center and network infrastructure, which supports sustained spending in this area. Supply chain beneficiaries are not explicitly identified, but SAIC may subcontract to specialized cybersecurity firms; however, the primary impact is on SAIC itself. Historically, multi-year government IT contracts provide stable revenue streams and often lead to follow-on awards, supporting long-term growth for defense and technology contractors.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $196M Department of State Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $279M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $327M General Services Administration Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Streamlining Access to Government Services Through America.gov
The executive order directs the General Services Administration to create America.gov, a unified digital portal for federal services, integrating Login.gov for authentication and requiring agencies to expose their digital services via APIs. It also mandates the use of AI (referred to as 'super intelligence') with transparency safeguards, while preserving existing service channels and excluding tax and defense/intelligence services.
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
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.
Contract Details
Recipient
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
Award Amount
$311,203,305
Awarding Agency
Department of State
Sub-Agency
Department of State
Contract Type
DELIVERY ORDER
Related Bills
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