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SAIC Wins $3.6 Billion U.S. Army Contract for Engineering Services Supporting Hardware-in-the-Loop and Modeling & Simulation Development

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The U.S. Army awarded Science Applications International Corp. (SAIC) a contract valued at $3.6 billion for engineering services related to hardware-in-the-loop (HWIL) and simulation development. This eight-year contract, potentially extendable by six months, allows SAIC to support the development and testing of embedded systems. This marks SAIC's fourth major award for the Army's S3I Directorate, contributing to a total of over $8.1 billion in contracts in the past year. The work will primarily take place in Huntsville, Alabama.

Positive
  • Award of a $3.6 billion contract enhances revenue stability.
  • Total contract value from the S3I Directorate exceeds $8.1 billion in the past year.
  • Significant local economic impact through job creation in Huntsville.
Negative
  • None.

The U.S. Army awarded Science Applications International Corp. (NYSE: SAIC) a $3.6 billion contract to continue providing engineering services supporting hardware-in-the-loop (HWIL) and modeling & simulation development for the U.S. Army Combat Capabilities Development Command, Aviation & Missile Center (DEVCOM AvMC), Software, Simulation, Systems Engineering and Integration (S3I) Directorate.

The potential eight-year contract, with a possible six-month extension, enables SAIC to continue providing engineering services supporting the full life cycle for AvMC HWIL techniques for development and testing of embedded systems, as well as for force protection, trainers, and virtual, interactive and multimedia systems. These products include systems, subsystems, components and software versions and hardware configurations that meet a measurable and testable set of requirements.

“SAIC’s proven past performance, qualifications, and our total solution, including our own research and development offerings, immersive technology, digital modernization, and our renowned mission engineering and systems integration solutions, were instrumental in winning this work,” said Bob Genter, SAIC president of the Defense & Civilian Sector. “We are honored to have been selected and look forward to our continued support to the S3I Directorate and the Army AvMC.”

Work under this contract will be performed primarily in Huntsville, Alabama, and was under the General Services Administration’s One Acquisition Solution for Integrated Services (OASIS) professional services contract, which is managed by the Army Contracting Command - Redstone Arsenal. This contract is the fourth significant award to support the S3I Directorate for SAIC, totaling more than $8.1 billion. During the past year, SAIC won a $2.9 billion contract for software development and maintenance services, an $830 million contract for aviation systems engineering services, and an $800 million contract for modeling & simulation systems engineering support services.

The Army DEVCOM AvMC, S3I Directorate develops and delivers responsive aviation, missile and calibration materiel readiness in order to optimize joint warfighter capabilities at the point of need. With hardware-in-the-loop and modeling & simulation, SAIC engineers are able to cost-effectively test aircraft components such as electronic control units and line-replaceable units, running these components through complex scenarios.

“As a premier employer within Huntsville, we are privileged to continue our decades of support locally through our work with the Army. With this latest contract award, we have won four major S3I Directorate and DEVCOM AvMCs programs, ensuring that SAIC, along with our many teammates and small business partners, continues to grow and invigorate the local economy,” said Gabe Camarillo, senior vice president, Army Business Unit. “We look forward to working with our teammates in extending our support to Army aviation modernization in the Huntsville area for years to come.”

SAIC will lead a team of companies for this contract, including a network of subcontractors and small businesses, primarily based in Huntsville.

“Our small business allies bring a wide array of unique core competencies and specialties areas, such as systems engineering and integration, software development, testing and life cycle support, avionics architecture, embedded diagnostics, gaming software, mission command software and aviation and missile systems domain expertise,” said Rita Brooks, director of SAIC’s Small Business Program. “SAIC and our teammates – of all sizes – employ thousands of full-time professionals in Huntsville and we are proud of our growing footprint.”

About SAIC

SAIC® is a premier Fortune 500® technology integrator driving our nation’s digital transformation. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes secure high-end solutions in engineering, IT modernization, 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 more than 26,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.1 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.

FAQ

What is the value of the contract awarded to SAIC by the U.S. Army?

The contract awarded to SAIC is valued at $3.6 billion.

How long is the contract period for SAIC's new contract with the U.S. Army?

The contract period is eight years, with a potential six-month extension.

What services will SAIC provide under this U.S. Army contract?

SAIC will provide engineering services for hardware-in-the-loop and modeling & simulation development.

How much has SAIC won from the S3I Directorate in total contracts recently?

SAIC has won over $8.1 billion in contracts from the S3I Directorate in the past year.

Where will the work under the new SAIC contract primarily be performed?

Work will primarily be performed in Huntsville, Alabama.

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