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.
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.