SAIC Wins Potential $383M Navy Contract for MK 48 Torpedo Components

Science Applications International Corp. (NYSE: SAIC) has won a potential four-year, $383.1 million contract to produce MK 48 Mod 7 heavyweight torpedo components for the U.S. Navy.

The Naval Sea Systems Command awarded the firm-fixed-price, cost-plus-fixed-fee contract through a competitive procurement process with two proposals received, the Defense Department said Thursday.

The fixed-price-incentive contract has a base value of $31 million and covers tailcone sections, spares, production support material, test equipment, hardware repair and engineering services in support of the service branch™s war shot inventory.

SAIC will perform work in Indiana, Massachusetts and Rhode Island through January 2020.

The military branch will obligate $27 million from weapons procurement funds for fiscal 2016 at the time of award, according to DoD.

The MK 48 heavyweight torpedo works as an anti-submarine and anti-surface warfare weapon for all classes of submarines and is designed to operate at a depth of more than 1, 200 feet for up to 32.2 miles per hour.

The MK 48 Mod 7 Common Broadband Advanced Sonar System torpedo entered initial operational capability in 2006 and works to perform countermeasure operations in both littoral and deep waters.

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