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Science Applications International Corporation, Inc recently secured a prime contract from LSB Industries, Inc (LXU - Snapshot Report) for approximately $118 million to provide engineering, procurement, and construction (EPC) services to construct an ammonia plant at an LSB subsidiary’s site in El Dorado, Arkansas.

LSB manufactures and sells chemical products for agriculture, industrial, mining, quarry, and construction sectors. It also manufactures and sells a broad range of heating, ventilation, and air conditioning products that are used in commercial, institutional, and residential buildings. The EPC services provided by SAI will facilitate LSB to serve the markets in an efficient manner.

The contract entails SAI to provide EPC services including foundations, structural steel, electrical, and instrumentation; cost control and scheduling, and quality control of the ammonia plant. The overall project construction and design of the ammonia plant will be done by SAI. The plant will provide feedstock for other units at the facility with excess production used to supply an ammonia pipeline.

SAI has a large pipeline of new projects and continues to win deals at regular intervals. The contract wins are key catalysts that are likely to augment the company’s revenues.

Since its inception in 1969, SAI has utilized its vast domain knowledge to solve critical problems of the country in areas such as national security, energy and the environment, critical infrastructure, and health. Headquartered in McLean, Va., the company presently has an employee strength of approximately 40,000, serving customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets.

SAI currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth considering now are Booz Allen Hamilton Holding Corporation (BAH - Snapshot Report), carrying a Zacks Rank #1 ( Strong Buy), and ICF International Inc (ICFI), carrying a Zacks Rank #2 (Buy).


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