The Department of Defense awarded two contracts to Science Applications International Corp -- better known as SAIC (NYSE:SAI) Thursday. Combined, the contracts suggest just under $63 million in incremental revenue for the company.
The smaller of the two awards, for $22.7 million, came in the form of an indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, multiple award contract to support special projects and electronic submarine systems for the U.S. Navy's Space and Naval Warfare Systems Center Pacific, San Diego. SAIC won one of two contracts on offer, and will now be able to bid for work up to the maximum amount stated -- or even a bit more. According to DoD, the base contract may be extended by up to two one-year option periods. If both options are exercised, the contract value could rise as high as $38.2 million, and run through May 2018. Otherwise, work will wind down in May 2016.
The larger award, for $40.2 million, is also an IDIQ contract, also cost-plus-fixed-fee, and also covers multiple (four, to be precise) awardees. Here, SAIC has won the right to bid for work supporting the Office of the Secretary of Defense, Defense Readiness Support System. This contract also has a three-year base period, and also includes two one-year options. If exercised, these option years would bring the potential value of this contract to $68.2 million, and extend work through June 26, 2018.
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