Science Applications International Corporation -- the defense contractor better known as SAIC (UNKNOWN:SAI.DL) -- is expanding its role in the growing market for robotic warplanes.
On Thursday, SAIC announced that it has won a subcontract from privately held Battlespace Flight Services, which helps the military operate and maintain its fleet of Reaper and Predator drones. Under this award, SAIC will, on BFS's behalf, assist the U.S. Air Combat Command, the Air National Guard, and other major command and combatant command customers in operating and maintaining their drones. Additionally, SAIC will perform similar services for unarmed Global Hawk drones.
The contract, a single-award, indefinite-delivery/indefinite-quantity subcontract, runs for one year as its base term, but may be renewed as many as five times thereafter -- four one-year extensions, and a single, terminal six-month extension. If all options are, in fact, exercised, SAIC stands to reap as much as $95 million in revenues from the contract.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.