U.S. Navy Awards SAIC $242M Contract to Operate, Maintain and Upgrade Propulsion Test Facility

Rhea-AI Summary

Science Applications International Corp (NASDAQ: SAIC) was awarded a $242 million contract by the Naval Undersea Warfare Center Division, Newport on Nov. 24, 2025 to operate, maintain and modernize the Propulsion Test Facility (PTF).

The 5-year, follow-on award supports testing and production for Mk 48 and Mk 54 torpedoes, unmanned underwater vehicles, submarine sensors, torpedo test equipment, prototyping, systems integration and digital engineering across the NUWCDIVNPT PTF Complex.

The contract emphasizes sustaining the Navy’s Deep Depth Test Facility and next-generation torpedo test-set production for domestic and foreign military sales, and highlights SAIC’s engineering, technical and logistics capabilities in undersea weapons support.

Positive

• $242 million contract award
• 5-year follow-on contract term
• Covers testing and support for Mk 48 and Mk 54 torpedoes
• Includes prototyping, systems integration and digital engineering

Negative

• None.

Insights

Defense Contracts Analyst

Five‑year, $242 million follow‑on contract secures SAIC work on Navy undersea propulsion testing and upgrades.

SAIC will operate, maintain and modernize the Naval Undersea Warfare Center Propulsion Test Facility under a five-year follow‑on award worth $242 million. The scope covers testing and production support for the MK 48 and MK 54 torpedoes, unmanned underwater vehicles, sensors, torpedo test equipment, prototyping, systems integration and digital engineering.

Contract value and duration create clear revenue visibility tied to a defined government program. Execution depends on continued performance, meeting Navy technical requirements, and delivery of next‑generation torpedo test sets for domestic and FMS maintenance facilities. Any material schedule slips or performance shortfalls could affect future renewals.

Watch near‑term contract milestones: completion of modernization tasks and delivery of next‑generation test sets over the five-year period. Track statements about performance, scope changes, and awarded task orders for signs of expansion or contraction of workload.

Contract enables essential operations of Navy’s premiere undersea weapon facility, including testing & production of Mk 48, Mk 45, UUV, sensors and more

RESTON, Va., Nov. 24, 2025 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a $242 million contract by the Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT) to enable the continued operation, maintenance and modernization of the Propulsion Test Facility (PTF), in support of the Undersea Warfare (USW) Weapons, Vehicles and Defensive Systems Department.

The U.S. Navy’s award of this 5-year, follow-on contract underscores their trust in SAIC’s engineering, technical and logistics experts to sustain, modernize and optimize the PTF’s complex mission environment. This includes multiple specialized testing facilities for torpedo components, submarine systems and propulsion technologies, such as the Deep Depth Test Facility, the Navy’s only land-based testing system capable of evaluating an Mk 48 torpedo afterbody throughout its entire operational envelope.

“Supporting the Propulsion Test Facility and the Navy’s torpedo enterprise as a mission integrator has given SAIC the opportunity to deliver innovation directly where our customers need it most—from Mk 48 production to advanced test-equipment design and other critical programs across NUWC Division Newport. For more than a decade, we’ve partnered closely with the PTF to help it grow and modernize, strengthening our own capabilities to better serve the Navy,” said Barbara Supplee, SAIC executive vice president of the Navy Business Group. “This new contract allows us to further support our customers through next-generation torpedo test-set production for domestic and FMS maintenance facilities. Our success reflects SAIC’s customer-driven, technology-forward mission integration approach to solving the Navy’s toughest challenges and the strength of our engineering, technical, and logistics teams. We’re committed to helping the U.S. Navy sustain the world’s most advanced undersea weapons advantage.”

Under the contract, SAIC will provide testing, Torpedo Test Equipment and Engineering and Technical services in the operation, maintenance and upgrading of facilities that comprise the NUWCDIVNPT PTF Complex in support of the MK 48 Heavyweight Torpedo, MK 54 Lightweight Torpedo, Undersea Targets and Sensors, Unmanned Underwater Vehicles and Submarine Sensors and Equipment. The company will deliver engineering and technical services, including prototyping, systems integration and digital engineering to ensure the PTF remains capable of supporting emerging Navy research and development needs.

About SAIC 
SAIC® is a premier Fortune 500 mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Forward-Looking Statements 
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. 

Media Contact: 
Greg Hicks 
619.961.0075 | Gregory.L.Hicks@saic.com

FAQ

What is the value and term of the SAIC contract announced Nov. 24, 2025 (SAIC)?

The U.S. Navy awarded SAIC a $242 million contract with a 5-year term.

What capabilities will SAIC support under the $242M NUWCDIVNPT Propulsion Test Facility contract?

SAIC will operate, maintain and upgrade PTF facilities supporting Mk 48 and Mk 54 torpedoes, UUVs, submarine sensors, test equipment, prototyping and systems integration.

When was the SAIC PTF contract award announced and which Navy organization issued it?

The award was announced on Nov. 24, 2025 by the Naval Undersea Warfare Center Division, Newport.

Does the SAIC contract include modernization or digital engineering work for NUWCDIVNPT PTF?

Yes. The contract explicitly includes modernization, prototyping, systems integration and digital engineering for the PTF.

Which SAIC business areas are highlighted in the PTF award (SAIC)?

The announcement highlights SAIC’s engineering, technical and logistics teams and their role as a mission integrator for undersea weapons support.

Will the SAIC contract support foreign military sales (FMS) related to torpedo test-set production?

The company said the contract supports next-generation torpedo test-set production for domestic and FMS maintenance facilities.