U.S. Navy Awards SAIC Three Contracts for Engineering Services

Rhea-AI Summary

Science Applications International Corp. (NASDAQ: SAIC) has been awarded three contracts worth $58.2M to support the U.S. Navy's Airborne Electronic Attack (AEA) programs. The contracts cover the JATO Program, International Program, and EA-18G Program. SAIC will provide technical services including jammer technique development, test and evaluation engineering, and threat analysis for the JATO contract. For the International contract, SAIC will maintain AEA simulations and support Foreign Military Sales. The EA-18G contract involves engineering services for both U.S. Navy and FMS configurations. These contracts demonstrate SAIC's commitment to delivering mission-critical solutions to the Naval Air Warfare Center Weapons Division at Point Mugu, California.

Positive

• Secured three contracts worth $58.2M with the U.S. Navy
• Expanded services in Airborne Electronic Attack programs
• Strengthened position in Electronic Warfare systems optimization
• Enhanced support for Foreign Military Sales in Electronic Attack products

Negative

• None.

Insights

Defense Technology Analyst

The $58.2M contracts awarded to SAIC for supporting the U.S. Navy's electronic warfare programs are a significant win for the company. These contracts highlight SAIC's strong position in the defense technology sector, particularly in electronic warfare and jamming systems. The focus on optimizing jamming techniques and enhancing the effectiveness of EW platforms underscores the increasing importance of electronic warfare in modern military operations.

The contracts' scope, covering technique development, testing and international support, suggests a long-term engagement that could lead to further opportunities in this critical defense area. For investors, this represents a stable revenue stream and potential for growth as electronic warfare capabilities continue to be a priority for the U.S. military and its allies. The international aspect of the contracts also opens doors for expanded foreign military sales, which could be a significant growth driver for SAIC in the coming years.

Financial Analyst

The $58.2M contract value is a positive development for SAIC, bolstering its order backlog and providing revenue visibility. While the exact impact on SAIC's financials isn't specified, these contracts likely contribute to a steady revenue stream over their duration. Given SAIC's $7.7B revenue in FY2023, this set of contracts represents a small but meaningful addition to their defense sector portfolio.

Investors should note the potential for margin expansion in these specialized services, as electronic warfare expertise typically commands premium rates. The international component of the contracts also presents opportunities for cross-selling and upselling additional services to foreign military customers. This diversification of revenue sources across domestic and international markets could help mitigate risks associated with potential fluctuations in U.S. defense spending.

Military Strategy Expert

These contracts reflect the U.S. Navy's ongoing commitment to maintaining technological superiority in electronic warfare, important for modern naval operations. The focus on the EA-18G Growler, a key electronic attack aircraft, indicates the continued relevance of airborne electronic attack capabilities in the military's strategic planning.

The emphasis on interoperability testing and threat analysis suggests a proactive approach to addressing evolving electronic threats. This is particularly important given the rapid advancements in adversary capabilities. The international program support also highlights the growing importance of allied cooperation in electronic warfare, potentially leading to more standardized and effective multinational operations. For SAIC, this positions the company as a key player in shaping future electronic warfare strategies, both domestically and internationally.

Contracts to support work at Naval Air Warfare Center Weapons Division, Point Mugu, Calif.

RESTON, Va.--(BUSINESS WIRE)-- Science Applications International Corp. (NASDAQ: SAIC) has been awarded three contracts worth $58.2M to support the Airborne Electronic Attack (AEA) Integrated Product Team (IPT) Jammer Technique Optimization (JATO) Program, the International Program, and the AEA IPT EA-18G Program.

“These three contracts are a testament to SAIC’s reputation of delivering mission-critical solutions and dedicated support to the Naval Air Warfare Center Weapons Division, Point Mugu,” said Barbara Supplee, executive vice president, Navy Business Group at SAIC. “This work goes beyond technical services. We are contributing to the sustainment of engineering services as well as airborne jammer optimization and effectiveness data collection and reporting for the Navy.”

Under the JATO contract, SAIC will deliver a wide range of technical services including jammer technique development, test and evaluation engineering, interoperability testing and analysis, threat analysis, tactics development, mission data development and production and Fleet liaison activities. This work will play a crucial role in optimizing jamming techniques, enhancing the effectiveness of Electronic Warfare (EW) platforms and systems and ensuring the readiness of the EA-18G aircraft and other EW assets.

Under the AEA IPT International contract, SAIC will continue to provide support to the international service project by performing maintenance of existing AEA simulations and development of tools and new simulations. SAIC will also perform the engineering, technical and policy support services for the international program teams, supporting Foreign Military Sales (FMS), Cooperative Development and other relationship programs for the Electronic Attack (EA) and Electronic Warfare products.

Additional support to AEA IPT includes engineering services for the development and sustainment efforts of both the United States Navy (USN) and Foreign Military Sales (FMS) configurations of the EA-18G. Engineering services will include cooperative and collaborative engineering support to other laboratories and will include general management, engineering support, product support and systems engineering, integration, and test for the EA-18G team.

To learn more, visit SAIC.com

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240815074269/en/

Media Contact:

Gregory Hicks

619.961.0075 | Gregory.L.Hicks@saic.com

Source: Science Applications International Corp.

FAQ

What is the total value of the three contracts awarded to SAIC (NASDAQ: SAIC) by the U.S. Navy?

The total value of the three contracts awarded to SAIC by the U.S. Navy is $58.2 million.

What specific programs will SAIC support under these new contracts?

SAIC will support the Jammer Technique Optimization (JATO) Program, the International Program, and the AEA IPT EA-18G Program for the U.S. Navy's Airborne Electronic Attack (AEA) Integrated Product Team.

What services will SAIC provide for the JATO contract?

For the JATO contract, SAIC will provide technical services including jammer technique development, test and evaluation engineering, interoperability testing, threat analysis, tactics development, and mission data development.

How will SAIC support the International Program contract?

SAIC will maintain existing AEA simulations, develop new tools and simulations, and provide engineering, technical, and policy support for international program teams, supporting Foreign Military Sales and other international relationships.