SAIC Awarded New $170.9 Million Contract from the State of Texas for Managed IT Security Services

Rhea-AI Summary

SAIC (NASDAQ: SAIC) has secured a new $170.9 million contract from the State of Texas' Department of Information Resources (DIR) to provide cybersecurity services for state agency networks. The company will deliver security operations services, including maintenance and deployment of security tools, environment monitoring, risk management, and compliance oversight.

This contract expands SAIC's growing partnership with state and local governments, adding to their existing IT and cybersecurity services portfolio with clients in Virginia, Colorado, and California. As the prime contractor, SAIC will focus on implementing cutting-edge technologies to enhance service delivery and address emerging threats.

Positive

• Secured new $170.9 million contract with State of Texas
• Expands presence in state government cybersecurity sector
• Prime contractor position on the contract
• Builds upon existing state-level contracts in Virginia, Colorado, and California

Negative

• None.

Insights

Financial Analyst

The $170.9 million contract with Texas DIR represents a significant win for SAIC, strengthening its position in the state and local government cybersecurity market. This contract adds to SAIC's existing portfolio of state government clients including Virginia, Colorado and California, demonstrating successful market penetration in this sector. The deal will provide stable, recurring revenue through managed security services, which typically offer higher margins compared to traditional IT services. As the prime contractor, SAIC maintains full control over service delivery and profit potential. This contract win supports SAIC's strategic focus on high-value cybersecurity services and helps diversify its revenue base beyond federal contracts.

Tech Expert

The contract scope encompasses comprehensive security operations services, including critical components like security tool deployment, environment monitoring and risk management. This positions SAIC to deliver advanced cybersecurity solutions at scale across Texas state agencies. The emphasis on compliance with state, federal and industry regulations indicates a complex service delivery requirement that leverages SAIC's expertise in regulatory frameworks. The mention of "cutting-edge technologies" suggests potential implementation of AI-driven security tools, automated threat detection and advanced analytics - areas where SAIC has demonstrated capabilities. This contract reinforces SAIC's competitive advantage in delivering enterprise-scale cybersecurity solutions.

RESTON, Va., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC), has been awarded a new contract from the State of Texas’ Department of Information Resources (DIR) to provide robust cybersecurity services in protection of state agency networks. The contract has a projected value of $170.9 million.

This award builds upon SAIC’s growing partnership and support of state and local governments. In addition to the State of Texas, SAIC also delivers high-end IT and cybersecurity services to clients in the Commonwealth of Virginia, State of Colorado, and State of California.

"We are excited to support our clients’ cybersecurity services by applying cutting-edge technologies to enhance the speed of delivery and stay ahead of emerging threats," said Srini Attili, executive vice president of the Civilian Business Group at SAIC. "This award expands our cybersecurity work in Texas, and is a result of our employees' expertise, investment in innovation and commitment to integrating solutions that will deliver superior service for the Texas government and its citizens."

Under this contract, SAIC will provide security operations services to assist DIR customers in maintaining and deploying security tools; monitoring and managing the overall security environments; assessing, managing, and mitigating risks; and meeting the compliance requirements of the state, federal or industry regulations.

SAIC is the prime contractor on the contract.

About SAIC
SAIC is a premier Fortune 500® technology integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

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 Reston, Virginia, SAIC has annual revenues of approximately $7.4 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

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.

Media Contact:
Kelly Golden
717.919.7975 | kelly.golden@saic.com

FAQ

What is the value of SAIC's new Texas cybersecurity contract?

SAIC's new contract with the State of Texas' Department of Information Resources has a projected value of $170.9 million.

What services will SAIC provide under the Texas DIR contract?

SAIC will provide security operations services, including security tool maintenance and deployment, environment monitoring, risk management, and compliance oversight for state agency networks.

Which other states does SAIC provide IT and cybersecurity services to?

SAIC provides IT and cybersecurity services to the Commonwealth of Virginia, State of Colorado, and State of California.

Is SAIC the prime contractor for the Texas DIR cybersecurity contract?

Yes, SAIC is confirmed as the prime contractor for the Texas DIR cybersecurity contract.