U.S. Navy Awards SAIC $1.1 Billion Torpedo Production Contract

Rhea-AI Summary

SAIC has secured a significant $1.1 billion contract from the U.S. Navy for the production, assembly, testing, and delivery of MK 48 MOD 7 Torpedo Afterbody Tailcones and MK29 Mod 0 Warshot Fuel Tanks. This contract builds on previous collaborations dating back to September 2016, reflecting SAIC's extensive experience with Navy torpedo systems. The new contract includes the integration of over 500 components into each tailcone, enhancing the Navy's operational capabilities.

Positive

• Awarded a $1.1 billion contract with U.S. Navy.
• Continues long-standing partnership with the Navy since 2016.
• Experience in producing vital components for military applications.

Negative

• None.

Company will produce torpedo Afterbody Tailcones and Fuel Tanks

RESTON, Va.--(BUSINESS WIRE)-- Science Applications International Corp. (NYSE: SAIC) has been awarded a $1.1 billion contract to produce, assemble, test and deliver the U.S. Navy’s MK 48 MOD 7 Torpedo Afterbody Tailcones (AB/TC) and MK29 Mod 0 Warshot Fuel Tanks. The AB/TC is the section of the torpedo containing propulsion and navigations systems, with 26 major sub-assemblies requiring the integration of greater than 500 pieces and parts in each.

“SAIC is proud of our expanded work on integration, production, assembly, test and delivery contracts that support the MK 48 heavyweight torpedo system for the U.S. Navy,” said Bob Genter, president of SAIC’s Defense and Civilian Sector. “We are confident that our proven performance on the MK 48 will continue to provide the Navy with the sea-dominance weapon it requires.”

SAIC has extensive history in supporting the Navy’s torpedo systems. This award builds on a previous contract from September 2016, which initiated production restart of the Afterbody Tailcone for the MK 48 Heavyweight Torpedo. In October 2020, SAIC was awarded a U.S. Navy contract for mission engineering and integration support to produce, test and deliver MK 29 Warshot and MK 28 Exercise Torpedo Fuel Tanks for the Naval Undersea Warfare Center Division Keyport. Additionally, in May 2020, the U.S. Navy awarded SAIC a contract for testing and data collection of MK 48 Heavyweight Torpedoes, and MK 54 and MK 46 Lightweight Torpedoes in support of the Naval Undersea Warfare Center Division Newport.

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 more than 26,500 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 pro forma 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211206005222/en/

Media Contact:

Brad Bass

240.418.0168 | publicrelations@saic.com

Source: Science Applications International Corp.

FAQ

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

The contract awarded to SAIC by the U.S. Navy is valued at $1.1 billion.

What will SAIC produce under the new Navy contract?

SAIC will produce MK 48 MOD 7 Torpedo Afterbody Tailcones and MK29 Mod 0 Warshot Fuel Tanks.

When did SAIC start working with the U.S. Navy on torpedo systems?

SAIC began its work with the U.S. Navy on torpedo systems in September 2016.

How many components are involved in the production of each torpedo tailcone?

Each torpedo tailcone involves the integration of over 500 components.

What is the purpose of the MK 48 MOD 7 Torpedo Afterbody Tailcone?

The MK 48 MOD 7 Torpedo Afterbody Tailcone contains propulsion and navigation systems for the torpedo.