SAIC To Enhance Business Operations for Under Secretary of Defense for Research and Engineering
Science Applications International Corp. (SAIC) has secured a $96 million contract from the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) to modernize business operations. SAIC will collaborate with OUSD(R&E) to enhance data management, knowledge management, and strategic planning, aiming to improve operational efficiency and support the mission effectively.
The announcement of a $96 million contract awarded to Science Applications International Corp. (SAIC) by the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) represents a significant investment in defense technology and business operation modernization. This contract indicates a commitment by the Department of Defense (DoD) to enhance its technological capabilities and streamline operations, which is essential in maintaining a competitive edge in national defense.
From an industry perspective, contracts of this magnitude are indicative of the federal government's reliance on private contractors like SAIC to provide specialized services. This reliance often translates into stable revenue streams for such companies. The focus on data management, knowledge management and strategic planning capabilities aligns with the broader industry trend towards digital transformation and data-driven decision-making within the defense sector.
For stakeholders, such as investors and industry partners, this contract could signal potential for growth and stability in SAIC's business, possibly affecting the company's stock performance positively. However, the actual impact would depend on SAIC's execution of the contract and the resulting operational efficiencies gained by OUSD(R&E).
SAIC's $96 million contract award can be expected to have ripple effects across the defense sector, influencing both direct competitors and ancillary businesses. The emphasis on modernizing business operations through enhanced data management and knowledge management capabilities is a trend that is increasingly being adopted across various sectors, not just defense. Companies that can effectively implement these technologies may experience improved operational efficiencies, reduced costs and potentially increased market share due to enhanced competitive advantage.
It is also important to note that government contracts like this often require strict adherence to regulatory standards and can come with high expectations for performance and accountability. The ability of SAIC to meet these expectations can influence future contract awards and partnerships, which in turn could impact investor confidence and market perceptions of SAIC's operational competence and financial health.
The financial implications of a $96 million contract for SAIC are multifaceted. In the short term, the contract will likely contribute positively to SAIC's revenue and earnings, which could be reflected in upcoming financial statements. For long-term implications, the contract may improve the company's backlog, which is an indicator of future revenue and is closely monitored by investors as a measure of a company's health and growth prospects.
Considering the size of the contract relative to SAIC's total revenue, which was approximately $7.4 billion in the fiscal year 2021, the contract represents a substantial addition, albeit not a transformative one. However, the contract's strategic importance lies in its potential to solidify SAIC's position as a key player in defense technology and business operations modernization, which could lead to additional contracts and expansion in this domain.
03/07/2024 - 08:05 AM
$96 million
RESTON, Va. --(BUSINESS WIRE)--
Science Applications International Corp. (NYSE: SAIC ) today announced it has been awarded a $96 million
“The Under Secretary of Defense for Research and Engineering delivers crucial technology capabilities to warfighters,” said Vinnie DiFronzo, executive vice president, Air Force and Combatant Command Business Group at SAIC. “OUSD(R&E) is a critical and longtime SAIC customer, and this award builds on our ongoing delivery of powerful solutions and key expertise to advance our support of their mission.”
Through this contract, SAIC will partner with OUSD(R&E) BusOps to modernize its policies and procedures through SAIC’s data management, knowledge management and strategic planning capabilities. Enhancements will include an increase in data reuse and the reduction of internal organizational operational delivery times.
To learn more about SAIC’s work in digital modernization visit www.saic.com/defense .
About SAIC
SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective and efficient solutions that are critical to achieving our customers' missions.
We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. SAIC is an Equal Opportunity Employer, fostering a culture of diversity, equity and inclusion, which is core to our values and important to attract and retain exceptional talent. Headquartered in Reston, Virginia , SAIC has annual revenues of approximately $6.9 billion saic.com . For ongoing news, please visit our newsroom .
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov . Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307106880/en/
Media Contact:
thais.c.hanson@saic.com
Source: Science Applications International Corp.
What is the contract amount awarded to SAIC by OUSD(R&E)?
SAIC has been awarded a $96 million contract by the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)).
Who is the executive vice president of Air Force and Combatant Command Business Group at SAIC?
Vinnie DiFronzo is the executive vice president of Air Force and Combatant Command Business Group at SAIC.
What are the key capabilities SAIC will provide to OUSD(R&E) through this contract?
SAIC will offer data management, knowledge management, and strategic planning capabilities to OUSD(R&E) to modernize its business operations.
What are the main objectives of the contract between SAIC and OUSD(R&E)?
The contract aims to enhance data reuse, reduce internal organizational operational delivery times, and modernize policies and procedures of OUSD(R&E BusOps.
How will SAIC support OUSD(R&E) in advancing their mission through this contract?
SAIC will deliver powerful solutions and key expertise to support the mission of OUSD(R&E by modernizing business operations and enhancing operational efficiency.
