BigBear.ai shares surge 50% on FAA contract award

BigBear.ai stock surged over 50% in after-hours trading following the company's announcement of its role as a subcontractor to Concept Solutions, LLC in a substantial Federal Aviation Administration (FAA) contract.

The contract, known as the Information Technology Innovative Procurement Strategic Sourcing (ITIPSS), is a multiple-award Indefinite Delivery/Indefinite Quantity (IDIQ) agreement with a collective ceiling of $2.4 billion over a span of ten years.

It is designed to furnish the FAA with a comprehensive array of IT capabilities, solutions, and cutting-edge technologies, focusing on state-of-the-art IT-related service solutions.

ITIPSS is pivotal for acquiring non-National Airspace System (non-NAS) IT services, which are integral to the operations of IT resource management, financial management, and security within the FAA.

Under the leadership of Concept Solutions, a team of 12 subcontractors will be assembled to assist the Office of Information Technology (AIT) in meeting its strategic IT objectives. This collaboration aims to deliver wide-ranging, multidisciplinary IT-related services, thereby contributing to the FAA’s mission centered on aviation safety and excellence.

BigBear.ai's role in this partnership is to provide nationwide information systems management support, focusing on administrative, financial, and security programs.

The company's contributions are expected to elevate operational and facility management capabilities, as well as to help evolve existing programs and implement innovative solutions that align with the FAA’s strategic goals, including future technology modernization initiatives.

Robert Wedertz, Senior Vice President of Federal at BigBear.ai, highlighted the company's commitment to the FAA and Concept Solutions team, stating, “Through this contract, BigBear.ai brings to FAA and the Concept Solutions team a long-term sustainment partner, far beyond initial implementation of off-the-shelf technology.”

He emphasized BigBear.ai's established track record in supporting U.S. Government operations, its ability to swiftly modernize bespoke solutions, and its dedication to deep integration and embedded support as key factors that set the company apart in the federal market.

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Source: Investing.com