William Blair says General Dynamics took away $922M contract from SAIC

William Blair says the firm’s government tech contract tracker indicates that General Dynamics IT recently won a $922M, 5-year award to provide IT services to U.S. Central Command, whose operations reside in the Middle East. The contract award continues General Dynamics’ recent bookings momentum, the analyst tells investors in a research note. The firm says the Centcom award is a takeaway from SAIC (SAIC). The Centcom contract loss represented about 1% of annual revenue for SAIC, which also faces potential contract churn from not making the initial down-select for the NASA consolidated applications and platform services $1.3B indefinite delivery indefinite quantity, which could result in the loss of its NASA EAST contract that also generates about 1% of revenue, says Blair. The firm keeps an Outperform rating on General Dynamics and Market Perform rating on SAIC.