On Thursday, the U.S. Department of Defense announced that it is awarding Science Applications International Corp. (NYSE:SAI) a $222.5 million contract to provide "systems engineering, integration, testing, large-scale fabrication, non-developmental item procurement, interim repair and maintenance services and training" to the U.S. Navy's Space and Naval Warfare Systems Center.
Only $25,000 of the contract's funds will be "obligated" at the time of award. The balance will be paid out as services are required over the course of an initial one-year contract expiring in January 2014. The Pentagon's award includes options for renewal on additional one-year terms which could as much as triple the ultimate value of the award to as much as $667.4 million. Work will be performed in Charleston, S.C., and Norfolk, Va.
In the same press release, the Department of Defense announced $57 million in additional contracts for SAIC for work in Kuwait and Afghanistan.
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