Yahoo Finance Science Applications Secures U.S. Navy Contract Worth $49.5M
Science Applications SAIC recently received a single-award, cost-plus-fixed-fee contract worth $49.5 million from the U.S. Navy to continue supporting the Royal Saudi Naval Forces with its mission engineering capabilities. The award carries a five-year performance period and the work will be carried in the Kingdom of Saudi Arabia.
Per the deal, Science Applications will keep providing its support services for control, command, computers, communications, and intelligence, surveillance and reconnaissance (C4ISR) upgrade and refurbishment.
Science Applications noted that the deal forms part of the U.S. Navy’s SeaPort-NxG contract, under which it needed to use its expertise in design and integration, engineering, integrated product support and sustainment capabilities on critical networks. “These networks fulfill the Naval Information Warfare Systems Command's requirement for Program Executive Office C4I International Integration Program Office (PMW 740) Royal Saudi Naval Forces (RSNF) In-Kingdom of Saudi Arabia (KSA) Support Services,” according to the defense contractor’s press release.
Contract Wins Fuel Growth
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 Jul 31, 2020, the company’s total contract backlog was $19.4 billion.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues. Although the government generally has a lengthy approval process, the projects keep earning money for several years after their approvals.
Notably, Science Applications has been reportedly awarded $2.8 billion in national security contracts for fiscal 2020. Earlier this month, the company received a contract worth $878 million from the U.S. General Services Administration. Under the contract, it will provide professional services to advance technology for Multi-Domain Command and Control (MDC2) capabilities.
Besides, last month, the company received multiple defense contracts worth $342 million. Since the beginning of third-quarter fiscal 2021, Science Applications has won multiple contracts worth $3.26 billion.
Bright Prospects Amid Competition
Competition from CACI International CACI in the IT services space is steady. CACI continues to win high-value contracts and received contracts worth $789million during its first-quarter fiscal 2021.
In the IT services industry, Science Applications also competes with IBM IBM and Accenture ACN, which are among the top IT service providers in the world.
Nonetheless, we believe 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.
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