Science Applications International Corp. SAIC recently secured a contract worth approximately $425 million from the Federal Aviation Administration (FAA) to provide all training and program support services under the FAA Controller Training Contract (CTC). This contract is a result of the expected replacement of almost 6,000 air traffic controllers due for retirement. SAIC will be providing training services in Oklahoma City, Washington D.C. and air traffic control sites across the country.
The single-award indefinite-delivery/indefinite-quantity (ID/IQ) contract has a 3-year initial term for delivering the services and two one-year options, with a maximum contract ceiling of $727 million. As per the contract, SAIC will offer support services to the FAA Academy and Air Traffic Control (ATC) facilities, which include program management support; classroom training; simulation and laboratory training; monitoring of student progress; training development, maintenance and revision; air traffic training program support; administrative support; and innovation support.
Moving forward, SAIC’s revenues are expected to get a huge boost from the current contract. The company has a huge pipeline of new projects and continues to win deals at regular intervals. These contracts are key growth catalysts for the company.
SAIC provides technical, engineering and enterprise 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. Since its inception in 1969, SAIC has utilized its domain knowledge to solve critically important problems of the country in areas such as national security, energy and the environment, critical infrastructure, and health.
SAIC currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering now include CoStar Group Inc CSGP and IMS Health Holdings, Inc. IMS, both carrying a Zacks Rank #1 (Strong Buy), and Barracuda Networks, Inc. CUDA, which carries a Zacks Rank #2 (Buy).
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