SAIC Awarded $80 Million U.S. Navy Contract for Heavyweight Torpedo Tests Sets
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Insights
The award of an $80.5 million task order to Science Applications International Corp. (SAIC) by the U.S. Navy signifies a substantial investment in the enhancement of the Navy's heavyweight torpedo capabilities. This task order for the MK 710 Torpedo System Test Sets (TSTS) is pivotal for ensuring the reliability and operational readiness of the MK 48 heavyweight torpedoes, which are a critical component of the Navy's submarine warfare arsenal.
From a defense industry perspective, this contract not only solidifies SAIC's position as a key player in the heavyweight torpedo domain but also indicates the ongoing commitment of the U.S. government to maintain and improve its underwater defense systems. The focus on testing and validation underscores the strategic emphasis on quality assurance and the minimization of risks associated with torpedo failure, which could have dire operational consequences.
For stakeholders, the long-term implications include potential follow-on orders and sustained revenue for SAIC, given the lifecycle support typically required for such defense systems. Furthermore, the contract could lead to enhancements in torpedo technology and contribute to maintaining the competitive edge of the U.S. Navy in underwater combat scenarios.
An $80.5 million contract award to SAIC from the U.S. Navy is a significant financial event that may influence the company's stock performance positively. It represents a secure revenue stream over the five-year span of the contract, providing financial stability and potentially improving future earnings forecasts. It is also indicative of the trust that the U.S. Navy has in SAIC, potentially opening doors for future contracts.
Investors should note that contracts of this nature often involve stringent milestones and deliverables, which could impact SAIC's cash flow and operating expenses. The company's ability to manage these factors efficiently will be critical to realizing the full financial benefits of the contract. Additionally, the specialized nature of the contract suggests that SAIC has a competitive advantage in this niche, which could deter new entrants and reduce competitive pressures.
The MK 710 TSTS is an advanced technological system designed to ensure the functional integrity of the MK 48 heavyweight torpedoes. The MK 48 is a key asset for the U.S. Navy's submarine force and the deployment of the MK 710 TSTS represents a significant enhancement of the Navy's testing and validation capabilities. By providing a means to rigorously assess the operational status of these torpedoes, the Navy can prevent potential failures and ensure that its submarine fleet is equipped with reliable and effective weaponry.
This contract also reflects the ongoing modernization efforts within the military, where high-quality training and tactics development are increasingly supported by sophisticated testing equipment. The integration of the MK 710 TSTS into the Navy's arsenal may lead to improved performance metrics for the torpedoes, which are essential for the effectiveness of the Navy's strategic deterrence and defense operations.
Company will provide MK 710 Torpedo System Test Sets to validate the operational status of torpedoes
“SAIC looks forward to expanding our support to the Navy’s heavyweight torpedo program,” said Barbara Supplee, executive vice president, Navy Business Group at SAIC. “This award further demonstrates the trust and confidence the Navy has placed on SAIC and our exceptional workforce’s heavyweight torpedo expertise.”
Under the five-year contract, SAIC will provide MK 710 TSTS which will be used to test and validate the integrity and operational status of warshot MK 48 heavyweight torpedoes prior to delivery to the Navy. The testing and validation of exercise torpedoes supports the training, tactics development and certification of torpedo upgrades for Navy.
SAIC is a leader in supporting the Navy’s heavyweight torpedo program providing MK 48 heavyweight torpedo Afterbody Tailcone and fuel tanks for warshot and exercise torpedoes for Naval Sea Systems Command (NAVSEA). In support of the Naval Undersea Warfare Center (NUWC) Division Newport, SAIC also handles testing and data collection for MK 48 heavyweight torpedoes, and MK 54 lightweight torpedoes.
To learn more about SAIC’s support of Navy torpedo testing and delivery, visit SAIC.com.
About SAIC
SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective and efficient solutions that are critical to achieving our customers' missions. We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. SAIC is an Equal Opportunity Employer, fostering a culture of diversity, equity and inclusion, which is core to our values and important to attract and retain exceptional talent. Headquartered in
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208412883/en/
Thais Hanson
703.676.8215 | thais.c.hanson@saic.com
Source: Science Applications International Corp.
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