Technical services provider SAIC, Inc. recently procured a contract worth $228 million from Sandia National Laboratories to provide information technology (IT) services to the Department of Energy (DoE). Sandia National Laboratories is operated and managed by Sandia Corporation, a wholly-owned subsidiary of Lockheed Martin Corporation (LMT - Free Report) .
The indefinite-delivery/indefinite-quantity (IDIQ) contract entails SAIC, Inc. to provide mission-specific IT research, development, and back-up support while maintaining high-quality performance and central hosting computing, desktop services and cybersecurity. SAIC, Inc. has a long-standing relationship with Sandia, and the current contract further builds on this business tie.
SAIC, Inc. expects to leverage its experience in managing big data for the U.S. Government to provide the requisite support for Sandia by delivering science and critical technology support to solve national security issues. The company will offer its services at Sandia's headquarters in Albuquerque, New Mexico, or at its second principal laboratory in Livermore, CA.
Since its inception in 1969, SAIC, Inc. has utilized its deep domain knowledge to solve critically important 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 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.
SAIC, Inc. registered annual revenues of approximately $11.2 billion for the fiscal year ended Jan 31, 2013, representing 5.7% year-over-year growth. With continuous inflow of contracts from various government institutions, the company expects to have a steady revenue stream in the future as well. The current Zacks Consensus Estimate for the first quarter and fiscal year are pegged at 30 cents and $1.25, respectively.
Other players in the industry worth mentioning include Corrections Corporation of America (CXW - Free Report) and Engility Holdings, Inc. (EGL - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). SAIC, Inc. currently has a Zacks Rank #4 (Sell).