SAIC Continues into Next Phase of Assault Amphibious Vehicle Survivability Upgrade
Company Awarded Contract by U.S. Marine Corps
Public Company Information:
The United States Marine Corps (USMC) Program Executive Officer – Land Systems (PEO-LS) exercised options under a prime contract awarded to Science Applications International Corporation (NYSE: SAIC) to perform initial upgrades to 10 Assault Amphibious Vehicle (AAV) prototypes. Following this, additional options, if exercised, will lead to developmental testing and low rate initial production (LRIP) delivering 52 vehicles for operational test and evaluation and to USMC units.
This single-award, firm fixed-price contract builds upon SAIC's previously announced initial contract value of $16 million for the engineering phase of the contract. This contract value has been increased by $53 million in options exercised, bringing the total contract value to$69 million. The total contract value, if all options are exercised, is approximately $194 million over five years. The work will be performed primarily in Charleston, South Carolina.
Under the contract, SAIC will upgrade AAVs to provide improved protection while gaining back land and water mobility that improves the AAV's ability to fight. Upgrades include armor, engine rebuild to improve horsepower and torque, replace aging transmission, upgrade suspension components, install new water jets, install blast-resistant seats, and upgrade vehicle control, instrumentation and driver interface systems.
"This significant win demonstrates SAIC's ingenuity to meet the demands of our customers and to serve the mission interests of the USMC," said Tom Watson, senior vice president and general manager of the Navy and Marine Corps Customer Group. "SAIC is honored to have the opportunity to support the USMC on this highly important program to ensure the safety and amphibious mission success of our nation's Marines."
SAIC is a leading technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets. SAIC's deep domain knowledge and customer relationships enable the delivery of systems engineering and integration offerings for large, complex government and commercial projects. SAIC's approximately 13,000 employees serve customers in the U.S. federal government, state/local, and global commercial markets, specializing in providing a broad range of higher-end, differentiated technical capabilities. Headquartered in McLean, Virginia, SAIC has annual revenues of about $4 billion. For more information, visit http://www.saic.com/. For ongoing news, please visit our newsroom.
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.