SAIC Wins (a Chance at) $335 Million Army Contract
Science Applications International Corporation has won the right to participate in a U.S. Army "prime contract" worth a potential $315 million, the company announced Thursday.
As one of several recipients of a multiple-award indefinite-delivery/indefinite-quantity (IDIQ) contract, SAIC has the right to bid upon contracts put up by the Army to provide "maintenance and services for Access Control Point (ACP), electronic and physical security systems, Utility Monitoring and Control Systems (UMCS), and other electronic systems" at the Army's Engineering and Support Center Huntsville. This contract runs for one year initially, with the possibility of four one-year additional "options" periods following. If all options are exercised, the total value of the contract -- spread out among the 10 companies that won participation in the prime contract -- could reach the headline figure of $315 million.
The Army facility, which goes by the acronym "CEHNC," supports ballistic missile defense, installation support, ordnance and explosives, engineering, and chemical demilitarization programs, as well as the Environmental and Munitions Center of Expertise.
Despite the win -- or perhaps in acknowledgement of its limited value, being contingent on winning future contracts, and having to compete with nine other companies to win them -- SAIC shares declined 1.1% in Thursday trading, closing at $12.29.
The article SAIC Wins (a Chance at) $335 Million Army Contract originally appeared on Fool.com.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.