Back to news

March 20, 2020 | International, Land, C4ISR

SAIC wins $950 Million defense logistics agency FSG-80 contract

Reston, Va. March, 19, 2020 -- (BUSINESS WIRE)-- Science Applications International Corp. (NYSE: SAIC) won the Federal Supply Group - 80 Tailored Logistics Support Program contract from the Defense Logistics Agency. The single-award, indefinite-delivery, indefinite-quantity contract has a ceiling value of $950 million.

“We're proud to extend our partnership with the DLA in supporting our warfighters around the world,” said Jim Scanlon, executive vice president and general manager of SAIC's Defense Systems Group. “We're looking forward to bringing our expertise and technical solutions, such as our Integrated Logistics Toolkit and hazardous materials management, to bear to help improve service delivery to the Department of Defense.”

On this contract, SAIC will take over supply chain management for the FSG 80 commodity, which includes paints; preservation and sealing compounds; and adhesives. Many of these items have short shelf lives and require temperature-controlled storage. The company will provide services including, but not limited to, procurement, demand planning, inventory and distribution management, shelf-life management, and direct delivery of the commodity to more than 5,000 DOD locations.

SAIC's Integrated Logistics Tool kit is a suite of open-source software applications that optimizes performance on large, supply chain management programs. It automates collection of requirements, forecasting demand, and inventory and delivery management and optimization. The toolkit can also identify qualified sources of supply and generate customized reports. It was developed based on business processes and best-in-class methodologies obtained by SAIC's more than 30 years' experience in supply chain management.

The contract has a three-year base period of performance with two, two-year options.

About SAIC

SAIC® is a premier technology integrator solving our nation's most complex modernization and readiness challenges. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes high-end solutions in engineering, IT, and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective, and efficient solutions.

We are 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has pro forma annual revenues of approximately $7.1 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200319005042/en/

Lauren Presti
703-676-8982
lauren.a.presti@saic.com
Source: Science Applications International Corp.

View source version on SAIC: https://investors.saic.com/press-releases/press-release-details/2020/SAIC-Wins-950-Million-Defense-Logistics-Agency-FSG-80-Contract/default.aspx

On the same subject

  • £85M contract to boost Type-23 capabilities

    July 5, 2019 | International, Naval

    £85M contract to boost Type-23 capabilities

    The Ministry of Defence has signed an £85 million contract with Rolls-Royce to maintain the engines of the Royal Navy's Type-23 frigate fleet. The contract includes a comprehensive support package to Spey gas turbines, including the overhaul of engines, provision of spares, as well as engineering and safety support. Updates to the turbines are vital as they boost propulsion in the Type-23 Frigates. They are also key pieces of equipment for Anti-Submarine Warfare. The world-beating Type-23 frigate is able to carry out a wide variety of operations, from securing the UK's vital maritime trade routes East of the Suez Canal to safeguarding British interests in the South Atlantic. Defence Minister Stuart Andrew announced the contract at HMNB Devonport where he saw Thursday War training which prepares the Royal Navy for war-fighting, humanitarian relief and emergency situations through a variety of drills and exercises. Defence Minister Stuart Andrew said: This £85m contract demonstrates the UK's commitment to modernisation through the maintenance of our formidable Type-23s. This work continues the British tradition of supporting our closest allies and solidifying our global position as world-leaders in advanced maritime technology and development. The contract will see Rolls-Royce overhaul thirty Type-23 engines from the UK and NATO partners Belgium, Portugal and the Netherlands. The contract is expected to deliver a £35 million increase in savings to the MOD over the next eight years, by incentivising Rolls-Royce to improve repair schemes, minimise unnecessary work and procure spares at a lower cost. This will result in shorter, less expensive overhauls. Rolls-Royce will project manage the support contract, while the main overhaul and repair work will be carried out by RWG based in Aberdeen, supporting up to 25 UK jobs across both companies. Scotland benefits from MOD expenditure of £300 per person each year and a huge investment in local industry and commerce of £1.6 billion. UK Defence also supports over 10,000 industry jobs in Scotland and the nation is renowned for building the world's finest warships including the UK's new aircraft carriers and the Royal Navy's state-of-the-art Type-26 frigates. Defence Equipment and Support Chief of Materiel Ships Vice Admiral Chris Gardner said: The Type 23 frigate is central to Royal Navy operations around the world and keeping it at the forefront of operations is critical. This contract will ensure Rolls-Royce continues to innovate through improving repair schemes, minimising unnecessary work and procuring spares cheaper. This will result in shorter, less expensive overhauls, which is good news for the Royal Navy and good news for the tax payer. Matt Nadin, Director Naval Fleet Services at Rolls-Royce said: This vital support contract builds upon our Rolls-Royce target to achieve and sustain increased Spey engine availability to the Royal Navy and their NATO partners, The Netherlands, Belgium and Portugal. This contract highlights our successful collaboration with the UK Ministry of Defence to provide the technical support and repair activities required to not only keep these engines in-service with the Royal Navy and their NATO partners, but also to deliver increased value for money. https://www.gov.uk/government/news/85m-contract-to-boost-type-23-capabilities

  • The US Air Force Is Adding Algorithms to Predict When Planes Will Break

    May 16, 2018 | International, Aerospace

    The US Air Force Is Adding Algorithms to Predict When Planes Will Break

    The airlines already use predictive maintenance technology. Now the service's materiel chief says it's a “must-do for us.” The U.S. Air Force has started to use algorithms to predict when its aircraft will break, part of an effort to minimize the time and money they consume in the repair shop. The use of predictive analytics has been blazed by airlines, which monitor their fleets' parts in an effort to replace broken components just before — and crucially, not after — they break. “I believe it is a must-do for us,” said Gen. Ellen Pawlikowski, the head of Air Force Materiel Command, the arm of the Air Force that oversees the maintenance of its planes. She spoke Tuesday at a Defense Writers Group breakfast in Washington. “We see this as a huge benefit.” If the Air Force could reduce the risk of unexpected breakage — and the attendant need to fly replacement parts and repair crews around the globe — it could reduce costs and boost mission effectiveness. It could also increase the usefulness of the current fleet by reducing the number of aircraft that need to be be held in reserve as backups. It starts with gathering data, such as the temperature of engine parts or the stresses on the airframe. “We are trying to leverage what we already get off of airplanes, as opposed to trying to go in and put instruments in places,” Pawlikowski said. “It turns out there's quite a bit that's there, but it may not be a direct measurement. In order to measure the temperature in this one particular spot, I'm getting information somewhere else.” Artificial intelligence and machine learning can then determine patterns. The general said the Air Force has been learning a lot from Delta, the world's second-largest commercial airline. “Delta has demonstrated the effectiveness of predictive maintenance in dramatically reducing the number of delays to flights due to maintenance,” she said. Over the past three years, Air Mobility Command — the arm of the Air Force that oversees all of its large cargo planes and aerial refueling tankers — has been organizing the data it collects on some of its planes. It has started using the predictive maintenance technology on its massive C-5 airlifters. The Air Force is also using the technology on the B-1 bomber. “The B-1 is an airplane that we actually bought with a whole bunch of data that we weren't using,” Pawlikowski said. “We started to take that data in and start to analyze it....We're very excited about this because we see huge potential to improve aircraft availability and drive down the cost.” She said she “was impressed when I saw some of the data that they were showing me.” The Air Force Lifecycle Management Center, which reports to Pawlikowski, has been funding these trials “by finding the loose change in the seat cushions,” she said. “As we have now shown some things ... we're seeing more and more interest in it and we're looking at increasing the investment in that to bring it further,” Pawlikowski said of the predictive maintenance. Last September, Gen. Carlton “Dewey” Everhart, head of Air Mobility Command, stressed his desire to use predictive maintenance, but warned it would cost money to get the datafrom the companies that make the planes. “In some cases, we'll be working this collaboratively with our industry partners,” Pawlikowski said Tuesday. “In other cases, we'll be doing it completely organically.” Air Mobility Command is also using predictive maintenance technology on the C-130J airlifter. The latest version of the venerable Lockheed Martin cargo plane — the J model — collects reams of data as it flies. In April, the Lockheed announced it was teaming with analytics firm SAS to crunch that data. “Everything we've been doing up to a certain point has been looking in the rear-view mirror with the data,” said Lockheed's Duane Szalwinski, a senior manager with his company's sustainment organization who specializes in analytics. “We're going to be able to look forward.” Lockheed is working on a six-month demonstration for Air Mobility Command; officials hope to be able to predict when certain parts will break before a flight. “If we're able to do that, it kind of changes the game in how you maintain and operate a fleet,” Szalwinski said. The data will give military planners a wealth of information about their aircraft that could help determine the best aircraft to deploy. “All those things you now know you have insights as to what you will need at the next flight, so you act accordingly,” he said. “Once we prove that we understand the probability of failure of these parts ... all things then become possible,” Szalwinski said. “Now it's not a matter of if, it's a matter of when. And if you know when, you can start acting accordingly. It would be a gamechanger in the way you manage a fleet.” Lockheed also wants to use the predictive maintenance tech on the F-35 Joint Strike Fighter. “The beauty of this is that the toolsets that we're developing, the models, how we clean the data, how we build the models, how we build the algorithms, all of that is not unique to a platform,” Szalwinski said. Still, instituting predictive maintenance practices fleet-wide is not going to happen overnight, particularly as since it will take time to understand the data, Pawlikowski said. Using this technology will require a cultural shift among maintenance crews because they'll be replacing parts before they actually fail, Pawlikowski said. “One of the big benefits is the reduction in the amount of time the airmen on the flightline spends troubleshooting a broken part” because “we will take them off before they break,” she said. https://www.defenseone.com/business/2018/05/us-air-force-adding-algorithms-predict-when-planes-will-break/148234/

  • Contract Awards by US Department of Defense - November 9, 2020

    November 10, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 9, 2020

    AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $657,200,000 undefinitized contract action modification (P00025) to contract FA8634-18-C-2701 for the F-15Q Qatar program. The contract modification provides a comprehensive sparing program and contractor logistics support for the sustainment of the F-15QA aircraft. Logistical support for training devices and administrative costs are also included in this modification. Work will be performed in Al-Udeid Air Base, Qatar. Foreign Military Sales funds in the amount of $55,700,000 are being obligated at the time of award. Total cumulative face value of the contract is $8,040,659,061. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Lockheed Martin Space, Sunnyvale, California, has been awarded a $258,311,000 firm-fixed-price contract for Evolved Strategic Satellite Communication (ESS) contract. This contract will develop a prototype payload and conclude in a hardware and software in-the-loop, end-to-end demonstration. Work will be performed in Denver, Colorado, and is expected to be completed June 2025. This contract is the result of a sole-source acquisition. Fiscal 2020 research, development, test and evaluation funds in the amount of $29,447,172 are being obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity (FA8808-21-C-0015). Raytheon Integrated Defense Solutions, Tewksbury, Massachusetts, has been awarded a $77,639,897 fixed-price, incentive-firm contract with firm-fixed-price, cost-plus-fixed-fee, cost-reimbursable and time and material contract line item numbers for the Qatar Air Operations Center (AOC) upgrade. The contract is to upgrade the AOC and alternate AOC (AAOC), which includes the procurement of hardware and software, engineering services, installation, integration, and testing of AOC and AAOC components, end-user training, spares and help desk support outside the continental U.S. Work will be performed in Tewksbury, Massachusetts; and Al Udeid Air Base, Qatar, and is expected to be completed March 31, 2025. This award is the result of a directed sole-source acquisition. Foreign Military Sales funds in the amount of $77,639,897 are obligated at the time of award. Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8730-21-C-0005). Raytheon Co., Fort Wayne, Indiana, has been awarded a $33,899,323 cost-plus-fixed-fee contract to the Airborne Warning and Control System (AWACS) Combat Identification (CID) Alpha Phase One effort. This contract upgrades the current AWACS System to meet evolving threat capabilities and to address diminishing manufacturing sources material shortages issues with the currently fielded AWACS System. Work will be performed at Raytheon in Fort Wayne, Indiana, and is expected to be completed May 2022. This award is the result of a sole-source acquisition. Fiscal 2020 research, development, test and evaluation funds have been obligated in the amount of $4,864,480 prior to definitization. Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8730-20-C-0016). Space Exploration Technologies Corp., Hawthorne, California, has been awarded $29,643,567 in firm-fixed-price task orders under the National Security Space Launch Phase 2 contract. These task orders provide early integration studies and fleet surveillance for non-national security space missions. Work will be performed in Hawthorne, California; Vandenberg Air Force Base, California; and Cape Canaveral Air Force Station, Florida, and is expected to be completed by Aug. 19, 2021. Fiscal 2020 missile procurement funds in the amount of $7,307,274; and fiscal 2020 space procurement funds in the amount of $22,336,293 will be obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity (FA8811-21-F-0002). NAVY General Dynamics NASSCO-Norfolk, Norfolk, Virginia, is awarded a $138,545,759, firm-fixed-price contract for the execution of the USS New York (LPD 21) fiscal 2021 docking selected restricted availability (DSRA). This availability will include a combination of maintenance, modernization and repair of the USS New York (LPD 21). This is a Chief of Naval Operations scheduled DSRA. The purpose is to maintain, modernize, and repair the USS New York (LPD 21). This is a “long-term” docking availability and was solicited on a coast-wide (East and Gulf coasts) basis without limiting the place of performance to the vessel's homeport. NASSCO will provide the facilities and human resources capable of completing, coordinating, and integrating multiple areas of ship maintenance, repair, and modernization for USS New York (LPD 21). This contract includes options which, if exercised, would bring the cumulative value of this contract to $161,341,858. Work will be performed in Norfolk, Virginia, and is expected to be completed by June 2022. Fiscal 2021 operation and maintenance (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $138,545,759 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured using full and open competition via the Federal Business Opportunities website; two competitive proposals were received in response to Solicitation No. N00024-20-R-4417. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-21-C-4417). Three Wire Systems LLC, Falls Church, Virginia, is awarded a multiple-award, firm-fixed-price Department of Defense Enterprise Software Initiative (ESI) blanket purchase agreement (BPA) in accordance with the firms' General Services Administration (GSA) Federal Supply Schedule contract GS-35F-0300T. The estimated overall value of this BPA is $74,500,000. DOD ESI is a joint DOD project to streamline the acquisition process and provide information technology (IT) products and selected services that are compliant with applicable standards and represent the best value for DOD. Under ESI, the DOD leverages aggregate buying power to establish enterprise agreements with IT manufacturers and resellers for high demand, commercial off-the-shelf IT products and services. This awardee will join the rest of the fiscal 2018 multiple awardees Carahsoft (Reston, Virginia); Immix (McLean, Virginia); and Alamo City Engineering Services (San Antonio, Texas), to provide commercially available Forescout brand-name software licenses, proprietary appliances, and maintenance support to the DOD, intelligence community, and Coast Guard. The products offered through this BPA will meet functional requirements and capabilities in the following categories: Forescout Integration Modules, CounterAct, Forescout Training and Solution Support, and ActiveCare Support Services. The ordering period will be from Nov. 9, 2020, to Dec. 20, 2022. This BPA is issued under DOD ESI in accordance with the policy and guidelines in the Defense Federal Acquisition Regulation Supplement, Section 208.74. This BPA will not obligate funds at the time of award. Funds will be obligated via delivery orders using operation and maintenance (DOD) funds. Requirements will be competed among the awardees in accordance with Federal Acquisition Regulation 8.403-3(c)(2), and the successful contractor will receive firm fixed-price orders. This BPA was competitively procured via the GSA E-Buy web site among 679 vendors. One offer was received and one was selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-21-A-0030). ESG Aerosystems Inc., Starke, Florida, is awarded a $64,773,941 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to develop a curriculum and facilitate training for P-3 aircrew positions including copilots, patrol plane commander, instructor pilot, flight engineer, instructor flight engineer, and flight currency training in support of Naval Education and Training Security Assistance Field Activity's applicable field units and other program offices and stakeholders. The contract includes a five-year ordering period with no options and is expected to be completed by November 2025. Work will be performed in Starke, Florida (80%); and Jacksonville, Florida (20%). This effort is 100% funded by Federal Republic of Germany funds under the Foreign Military Sales program. Funds in the amount of $2,500 will be obligated to fund the contract's minimum amount and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement in accordance with Federal Acquisition Regulation (FAR) 5.202(a)(3) with one offer received under authority of FAR 6.302-4. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity (N00189-21-D-Z007). AERMOR LLC,* Virginia Beach, Virginia, is awarded $44,913,739 for a firm-fixed-price indefinite-delivery/indefinite-quantity contract to provide test and evaluation support services for Commander, Operational Test & Evaluation Force Surface Warfare Division. The contract will include a 60-month base ordering period with an additional six-month ordering period option pursuant of Federal Acquisition Regulation 52.217-8 - option to extend services, which if exercised, will bring the total ceiling value to $49,901,968. The base ordering period is expected to be completed by November 2025. If the option is exercised, the ordering period will be completed by May 2026. All work will be performed in Norfolk, Virginia. Fiscal 2020 research, development, test, and evaluation (Navy) funds in the amount of $2,500 will be obligated to fund the contract's minimum amount and funds will expire at the end of the current fiscal year. Individual task orders will be subsequently funded with appropriate fiscal year appropriations at the time of their issuance. This contract was competitively procured with the solicitation posted on beta.SAM.gov as a service-disabled veteran-owned small business set-aside, with four offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Norfolk, Virginia, is the contracting activity (N00189-21-D-G001). L-3 Technologies Inc., Salt Lake City, Utah, is awarded a $10,364,080 modification (P00024) to a previously awarded firm-fixed-price contract (N00019-18-C-1030). This modification exercises options to procure six AN/SRQ-4 kits and associated components for the MH-60 Common Data Link system for Foreign Military Sales (FMS) customers. Work will be performed in Salt Lake City, Utah, and is expected to be completed in December 2022. FMS funds in the amount of $9,560,101 will be obligated at time of award, none of which will expire at the end of the fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. William Marsh Rice University, Houston, Texas, is awarded an 18-month contract option valued at $9,776,246 under an existing cost-reimbursement contract (N66001-19-C-4020) for development of a high resolution neural interface that does not require surgery. The Next-Generation Non-Surgical Neurotechnology program seeks to broaden applicability of neural interfaces to facilitate multi-tasking at the speed of thought and interface with smart decision aids to achieve a neural link capable of high spatial and temporal resolution currently only possible using surgically implanted devices. Exercise of this option increases the overall value of this contract to $13,805,336. Work will be performed at the contractor's facilities in Houston, Texas (29%); Waco, Texas (33%); New York, New York (20%); New Haven, Connecticut (15%); and Durham, North Carolina (3%). The period of performance is from Nov. 9, 2020, through May 31, 2022. Fiscal 2021 research, development, test and evaluation (Navy) funding in the amount of $2,888,123 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via a Defense Advanced Research Projects Agency broad agency announcement solicitation published on the beta.SAM.gov website. Nineteen proposals were received and six were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-19-C-4020). Barnhart-Reese Construction Inc.,* San Diego, California, is awarded a firm-fixed-price task order (N6247321F4085) at $8,061,699 under a multiple award construction contract for design-build repair/renovation of Mess Hall Building 2403 at Marine Corps Base Camp Pendleton. The task order also contains two planned modifications which, if exercised, would increase the cumulative task order value to $8,120,128. The scope of work includes replacement of plumbing systems and floor finishes, reconfiguring kitchen and serving spaces to align with current serving methodologies, removing wasted storage and office areas, relocating portable refrigerated reefers to the interior of the existing facility, replacing broken heating, ventilation and air conditioning, and cooling condensers in the food preparation areas, and removing disused built-ins. The planned modifications, if issued, provide for furniture, fixtures, and equipment and audio/visual. Work will be performed in Oceanside, California, and is expected to be completed by November 2021. Fiscal 2021 operation and maintenance (Navy) contract funds in the amount of $8,061,699 are obligated on this award and will not expire at the end of the current fiscal year. Five proposals were received for this task order. Naval Facilities Engineering Systems Command Southwest, San Diego, California, is the contracting activity (N62473-17-D-4629). L-3 Electron Devices Inc., Torrance, California, is awarded a $7,860,000 for a firm-fixed-price delivery order (N00383-21-F-NR00) under a previously awarded basic ordering agreement (N00383-18-G-NR01) for the repair of the guided traveling wave tube in support of the F/A-18 aircraft. All work will be performed in Torrance, California and is expected to be completed by February 2021. Fiscal 2021 working capital (Navy) funds in the full amount of $7,860,000 will be obligated at the time of award and funds will not expire at the end of the current fiscal year. One company was solicited for this sole-source requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2410227/source/GovDelivery/

All news