Science Applications International Corp (NYSE: SAI) -- better known as just "SAIC" -- snagged one of the larger awards out of the 21 contracts that the Department of Defense awarded Thursday.
Valued at "a maximum" of $145.8 million, this award extends through July 28, 2014, a prime vendor contract hiring SAIC to organize maintenance, repair, and operations work for Army, Navy, Air Force, Marine Corps, and federal civilian agencies located in the South Central Zone 2 Region of the U.S. and, in particular, in New Jersey. SAIC originally won this contract, now extended into next year, back in July 2006.
The award, characterized as "firm-fixed-price," but for "indefinite-delivery/indefinite-quantity," can be best understood as an umbrella contract, under which SAIC will receive orders from time to time, and fulfill them as they are received. Hence, while the contract may be worth up to $145.8 million, it may also be worth less than that.
