Back to top

Image: Bigstock

Science Applications (SAIC) Secures U.S. Air Force Deal Worth $90M

Read MoreHide Full Article

Science Applications International Corp. (SAIC - Free Report) recently received a single-award, $90-million contract from the U.S. Air Force Life Cycle and Management Center, Force Protection Division. Per the deal, the company will help the U.S. Department of Defense to modernize and strengthen defense against sophisticated threats like small unmanned aircraft system (sUAS) threats.

The contract comes with a performance period of one year and options to extend for another year, three times.

Notably, Science Applications’ technology innovation like integrated logistics support and sustainment services will help it make the deal successful.

Michael LaRouche, president of the National Security and Space sector of Science Applications, says, “SAIC’s past performance with the Army for more than nine years demonstrates our ability to provide the Combatant Commands with a full range of support and sustainment services for modernization of counter-sUAS that will help contain this growing tactical threat. We are incredibly proud and honored to continue this important work.”

Continued Flow of Contracts

Science Applications is benefiting from the continued flow of high-value contracts. A record level of awards reflects its disciplined business-development actions, consistent operational excellence and high customer satisfaction. Notably, as of Apr 30, 2021, the company’s total contract backlog was $24 billion.

Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues.

Earlier this month, Science Applications received a five-year, $126-million, single-award task order from the Department of Defense Information Analysis Center to provide research and development (R&D) support to the U.S. Army Combat Capabilities Development Command (DEVCOM) Ground Vehicle Systems Center (GVSC).

Again, last month, the company received a major single-award defense contract with an estimated ceiling value of approximately $200 million, to provide laboratory operations and support to the Defense Intelligence Agency.

Moreover, in April, the company received a contract worth $3.6 billion from the U.S. Army to continue supporting the U.S. Army Combat Capabilities DEVCOM Aviation & Missile Center, Software, Simulation, Systems Engineering and Integration (S3I) Directorate.

Intensifying Competition

Competition from CACI International (CACI - Free Report) in the IT services space is steady. CACI continues to win high-value contracts and received contracts worth $1.6 billion during its third-quarter fiscal 2021.

In the IT services industry, Science Applications also competes with International Business Machines (IBM - Free Report) and Accenture (ACN - Free Report) , which are among the top IT service providers in the world.

Nonetheless, we believe that the company is comfortably positioned in this space, given its back-to-back contract wins, which are supporting the business perennially.

Science Applications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>