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Federal Government Deals Boost SAIC

Zacks Equity Research

Science Applications International Corporation (SAIC) recently got a boost in its key dealings with the U.S. federal government through the renewal of one of its services certification and a million-dollar project from the Navy.

The company announced the renewal of its Security System Integration Services (:SSIS) certification and designation under the Support Anti-terrorism by Fostering Effective Technologies (:SAFETY) Act of 2002, by the U.S. Department of Homeland Security (DHS). It was also awarded a $33 million task order by the Naval Surface Warfare Center to provide technical, engineering and program management support services to the Quality and Systems Engineering Assurance division.

The SSIS Technology

SSIS, a qualified anti-terrorism technology, is employed by federal, state and local governments, port authorities and airports. This technology provides extensive surveillance and situational responsiveness to reduce terrorist threats from improvised explosives, sabotage of high-value assets or critical infrastructure such as air or seaports, ship channels, harbors, nuclear or chemical plants, tunnels, freeways, bridges or ferries.

In order to detect and combat such acts of terrorism, SAIC designs and installs leading-edge security systems that can be integrated into an existing setup. These security systems may include surveillance, access control, detection of intrusion, network communications, infrastructure and power subsystems as well as command and control faculties. SAIC has an expertise in network-centric technologies and is proficient in tailoring its systems architecture to cater to individual needs.

SAIC thus provides security services in an extensive range of disciplines, including infrastructure protection, vulnerability assessment and emergency response. This certification under the SAFETY Act ensures that the risk of liability does not dissuade prospective manufacturers or sellers of anti-terrorism technologies from developing and commercializing technologies that could safeguard lives and property.
The Task Order

The Naval Surface Warfare Center, Crane Division (NSWC Crane), awarded a cost-plus-incentive-fee task order to SAIC. The task order consists of a one-year period of performance and can be extended to up to two years through the exercise of two one-year options. The contract is worth $33 million subject to the exercise of all options. The task order was granted under the SeaPort-e contracting vehicle and the work will mostly be executed in NSWC Crane, Ind. and Cape Canaveral, Fla.

NSWC Crane, a shore command of the U.S. Navy, works to mobilize the power of technology for the warfighter, focusing on full lifecycle support in three mission-focus areas: special missions, strategic missions and electronic warfare/information operations. Per the task order, SAIC will administer engineering and systems integration services including investigation and studies, rapid prototyping, technical documentation, field engineering, rapid delivery support and other related functions. The company will also provide specialized engineering and technical support services to NSWC Crane on numerous mission-critical programs for the Navy.

In October last year, SAIC segregated its engineering, technical and enterprise IT services business in order to eliminate government organizational conflict of interests. The split-off resulted in a new $6 billion technology company known as Leidos Holdings, Inc. (LDOS).

Post sequestration, SAIC appears streamlined and focused on harnessing its rich domain knowledge and client relationships to facilitate the delivery of systems engineering and integration services for comprehensive government and commercial projects.

The company provides technical, engineering and enterprise information technology (IT) services in the U.S., with its government segment serving the U.S. federal, state and local government agencies as well as foreign governments.

SAIC currently holds a Zacks Rank #3 (Hold). Other stocks in the industry that look promising and are worth a look include Acxiom Corporation (ACXM) and Fair Isaac Corporation (FICO), both carrying a Zacks Rank #2 (Buy).

Read the Full Research Report on FICO
Read the Full Research Report on ACXM
Read the Full Research Report on SAIC
Read the Full Research Report on LDOS

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