SAIC scores $950M DLA win

Science Applications International Corp. expects to see some revenue headwinds for the ongoing second half of its current fiscal year due to market-wide issues and others unique to them, but now has one major win that could help with that uncertainty.

The Defense Department said in its Friday awards digest that SAIC won a potential seven-year, $950 million contract with the Defense Logistics Agency to supply materials such as brushes, paints, sealers and adhesives.

Those products are classified under DLA’s “Federal Supply Group 80” and will go to the Army, Navy, Marine Corps and Air Force. Details about this particular contract to SAIC are sparse, but WT has been told this is a brand new requirement with no incumbent.

SAIC has a substantial book of business both with DLA and on the supply chain front in addition to the core technology integration work. Late last year, SAIC won a potential $990.3 million recompete to keep its role as lead supply chain manager and integrator for DLA’s main tire delivery program.

Of course, this new win could be protested like many others that SAIC cannot tout too much quite yet. During SAIC’s second quarter earnings call Thursday, company executives estimated they have about $1 billion in awards currently held up somewhere in the protest process.

The company is waiting the outcome of a second try by the Air Force at an award on a $655 million satellite ground station contract originally won in January, which was pulled back after a successful Peraton protest.

SAIC is also seeing what effects a short-term continuing resolution may have on contracts with agencies that may hold off on starting them in the event appropriations are not passed before Oct. 1, which would put a drag on revenue the company can book against its backlog.

The DLA contract awarded to SAIC on Friday has a three-year base period with a pair of two-year options that would extend work to Sept. 5, 2022. SAIC was one of three bidders.