Following on the heels of CACI International's (NYSE: CACI ) announcement that it won a $140 million contract to modernize information systems at the U.S. Pension Benefit Guaranty Corporation (PBGC) last month, similar-sounding company SAIC (NYSE: SAI ) revealed Wednesday that, as a matter of fact, it won that same contract, too. What's more, SAIC's win is quite a bit more significant than CACI's.
According to a press release issued yesterday, SAIC has been awarded a place in the same "multiple award, indefinite delivery/indefinite quantity" (IDIQ) contract "to provide information technology (IT) and operations support services" to the PBGC that CACI won.
Like the CACI contract, SAIC can now bid on task orders under a one-year base period for performance, with the possibility of making further bids if the base period is extended by one or more of four possible one-year extension "options."
Unlike CACI, SAIC has already landed one of the big "task orders" under the IDIQ contract -- an order that should be worth $74 million to SAIC over five years, assuming all options are exercised. In winning the task order, SAIC has effectively eaten up more than half of the $140 million total ceiling value of the overarching IDIQ contract that both CACI and SAIC are participating in.
Result: After falling with the rest of the market in regular Wednesday trading, SAIC shares rallied 0.5% after hours, rising as high as $13.62.