SAIC Awarded New $229 Million Contract for DoD IT Modernization

Rhea-AI Summary

Science Applications International Corp. (NASDAQ: SAIC) has secured a new $229 million contract from the U.S. Department of Defense for the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program. The contract focuses on providing critical IT solutions to advance the defense capabilities of NORAD and U.S. Northern Command.

SAIC will leverage its recent success in NORAD command and control modernization through the ABMS Cloud Based Command and Control program to enhance NORAD's Enterprise IT capability. The company will deploy skilled professionals and solutions in various areas, including IT service management, network modernization, automation of existing IT systems, cloud migration, and cybersecurity.

Positive

• Secured a new $229 million contract from the U.S. Department of Defense
• Expanding presence in critical defense IT solutions sector
• Leveraging previous success to enhance NORAD's Enterprise IT capability
• Diversifying service offerings in IT management, network modernization, and cybersecurity

Negative

• None.

Insights

Financial Analyst

The $229 million contract awarded to SAIC represents a significant win for the company's defense sector business. This deal will likely have a positive impact on SAIC's revenue stream and bolster its position in the competitive defense IT market. The contract's focus on modernization and innovation aligns well with current trends in defense spending, potentially opening doors for future opportunities.

Investors should note that this contract could contribute to steady revenue growth over its duration, enhancing SAIC's financial stability. However, it's important to consider that large defense contracts often come with stringent performance requirements and potential cost overruns. The success of this project could significantly influence SAIC's reputation and future contract wins in the defense sector.

Tech Expert

SAIC's commitment to delivering a highly-resilient, highly-available IT network for NORAD and USNORTHCOM is technologically significant. The focus on IT service management, network modernization and automation indicates a comprehensive approach to upgrading critical defense infrastructure. The mention of cloud migration is particularly noteworthy, as it suggests a shift towards more flexible and scalable solutions for command and control systems.

The integration of cybersecurity in this modernization effort is crucial, given the sensitive nature of defense operations. SAIC's experience with the ABMS Cloud Based Command and Control program could provide valuable insights and potentially accelerate the implementation of advanced IT capabilities for NORAD's Enterprise IT.

Company will advance IT solutions for NORAD and U.S. Northern Command

RESTON, Va., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a new $229 million contract by the U.S. Department of Defense to provide vital IT solutions under the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program.

"NORAD and USNORTHCOM defend America and its people,” said Vinnie DiFronzo, executive vice president for Air Force and Combatant Commands at SAIC. “SAIC is committed to delivering a highly-resilient, highly-available IT network for these warfighters who have a no-fail mission. We will leverage our recent NORAD command and control modernization success through the ABMS Cloud Based Command and Control program to accelerate NORAD’s Enterprise IT capability.”

SAIC will drive modernization, innovation and efficiency for the NITES program, deploying skilled professionals and solutions in IT service management, network modernization, automation of existing IT systems, cloud migration and cybersecurity.

To learn more about SAIC’s work with the DoD and Combatant Commands, please visit SAIC.com/defense.

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: 

Jake Weyant
571.232.4058 | jacob.weyant@saic.com

FAQ

What is the value of SAIC's new contract with the Department of Defense?

SAIC has been awarded a new $229 million contract by the U.S. Department of Defense for the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program.

What services will SAIC provide under the NITES program?

SAIC will provide IT solutions including IT service management, network modernization, automation of existing IT systems, cloud migration, and cybersecurity for NORAD and U.S. Northern Command.

How will SAIC leverage its previous experience for this new contract?

SAIC will leverage its recent success in NORAD command and control modernization through the ABMS Cloud Based Command and Control program to accelerate NORAD's Enterprise IT capability.

When was the SAIC contract for DoD IT modernization announced?

The contract was announced on September 18, 2024, according to the press release.