Defense contractors SAIC (NYSE: SAI) and CACI (NYSE:CACI) today both announced their participation in a five-year Defense Department contract valued at up to $899 million. The contract has several prime contractors.
The contract, originally announced by DoD on Dec. 21, is routed through the U.S. Space and Naval Warfare Systems Center Atlantic, and aims, according to SAIC, to "provide production, installation and in-services support for command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance (C5ISR) capabilities for subsurface and surface platforms."
The first year of the contract is worth $179.9 million to the team of contractors that will be bidding to fulfill task orders, which in addition to SAIC and CACI includes major defense contractors Computer Sciences (NYSE:CSC), BAE Systems, and L-3 Technologies (NYSE:LLL), and also AMSEC of Virginia Beach, Va.; Serco of Reston, Va., and Scientific Research Corp. of Atlanta, Ga. However, the contract is up for as many as four subsequent one-year extensions that, if fulfilled in full, bring the total contract value to $899 million.