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
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SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $20.8M Department of Transportation Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $72.0M Department of Transportation Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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.
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
$40,761,764
Awarding Agency
Department of Transportation
Sub-Agency
Federal Aviation Administration
Contract Type
DELIVERY ORDER
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