Science Applications International Corporation , or SAIC Inc (as better known) recently secured a $100 million prime contract from the Defense Threat Reduction Agency (DTRA). According to the indefinite-delivery/indefinite-quantity (ID/IQ) contract, SAIC will provide integrated logistics services including procurement, shipping, warehousing, international travel support, and program support for worldwide Cooperative Threat Reduction (CTR) operations.
DTRA is the U.S. Department of Defense's (DoD) official Combat Support Agency for countering weapons of mass destruction (WMD). It addresses the entire range of chemical, biological, radiological, nuclear, and high-yield explosive threats. With a talented team of skilled professionals, SAIC is likely to better to support DTRA in its critical international mission.
SAIC 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.
Recently, SAIC secured a prime contract from LSB Industries, Inc for approximately $118 million to provide engineering, procurement, and construction (EPC) services to construct ammonia plant at an LSB subsidiary’s site in El Dorado, Arkansas.
Since its inception in 1969, SAIC 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. In the last reported quarter, revenues of SAIC dropped to $2.47 billion from $2.83 billion in the year-ago period. The decrease was due to ramp down of certain contracts, drawdown of overseas U.S. military forces and reduction of the U.S. Government budget.
SAIC currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering now include Booz Allen Hamilton Holding Corporation (BAH - Free Report) with Zacks Rank #1 (Strong Buy) and Providence Service Corp (PRSC - Free Report) , both carrying a Zacks Rank #2 (Buy).