SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $607M General Services Administration Contract
Summary
SAIC wins a $607M delivery order from GSA for system software lifecycle engineering, adding ~$243M in annual revenue (~3.3% of FY2026 revenue). This is a meaningful but not transformative contract for the pure-play government IT contractor.
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Key Takeaways
- 1.SAIC secures $607M delivery order for system software lifecycle engineering from GSA.
- 2.Contract adds ~$243M annual revenue, representing ~3.3% of FY2026 revenue.
- 3.No direct legislative connection; award reflects routine federal IT procurement.
Market Implications
The contract is positive for SAIC, adding ~$243M in annual revenue visibility. However, given the modest size relative to total revenue, the stock impact is likely moderate. SAIC's valuation may see a slight uptick as the market prices in improved backlog stability. No direct implications for other tickers unless subcontractors are named.
Full Analysis
The General Services Administration awarded Science Applications International Corporation (SAIC) a $607M delivery order for System Software Lifecycle Engineering (SSLE). The contract runs from March 2025 to September 2027, covering software development, maintenance, and lifecycle support for federal systems. SAIC is the direct recipient and publicly traded under .
SAIC reported FY2026 revenue of $7.4B, down from $7.7B in FY2025. The $607M award, spread over ~2.5 years, equates to roughly $242.8M annually, or 3.3% of current revenue. While not a game-changer, it provides a stable revenue stream and bolsters SAIC's backlog in a competitive federal IT market.
No specific legislation directly authorizes this contract. The related bill signals provided (e.g., S5189 on defense standards, S5194 on courthouses) are not connected to software lifecycle engineering or GSA IT services. Thus, this award appears driven by routine agency procurement rather than a legislative catalyst.
Downstream, SAIC may subcontract portions of the work to smaller IT services firms, but no specific subcontractors are identified in the award. Potential beneficiaries could include companies like CACI International ($CACI) or Booz Allen Hamilton ($BAH) if they partner, but this is speculative.
Historically, multi-year IT services contracts for federal agencies provide steady revenue visibility for contractors like SAIC. Similar awards have supported stable stock performance, though the impact is typically gradual rather than a sharp catalyst.
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
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
$607,154,309
Awarding Agency
General Services Administration
Sub-Agency
Federal Acquisition Service
Contract Type
DELIVERY ORDER
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