BigBear.ai Holdings Inc BBAI Shares rose sharply in after-hours trading on Tuesday after the company announced it had won the contract as a subcontractor to Concept Solutions.

What you should know: Concept Solutions was one of 14 companies awarded an Information Technology Innovative Procurement Strategic Sourcing (ITIPSS) contract from the Federal Aviation Administration (FAA). The multiple award allows the FAA to acquire a wide range of IT capabilities, solutions and new technologies.

Concept Solutions will lead a team of subcontractors supporting the contract. BigBear.ai said it will work with the company to manage information systems, provide support for various programs, help advance existing programs and implement innovative solutions that align with the FAA’s strategic goals. The contract has a combined cap of $2.4 billion and runs for 10 years.

Check this out: Keysight Technologies shares rise after Q3 results: EPS and revenue beat expectations

“With this contract, BigBear.ai brings the FAA and the Concept Solutions team a long-term support partner that goes well beyond the initial implementation of standard technology,” said Robert WedertzSenior Vice President, Federal at BigBear.ai.

“Our proven history of supporting the U.S. government has enabled us to quickly modernize countless customized solutions, enable deep integration, and provide embedded support. These core aspects of BigBear.ai partnerships set us apart in the federal space and we feel privileged to be part of this team.”

BigBear.ai is a provider of AI-powered decision-making solutions for national security, digital identity and supply chain management.

BBAI price promotion: According to Benzinga Pro, BigBear.ai shares rose 28.57% to $1.71 in after-hours trading at the time of publication on Tuesday.

This illustration was created using artificial intelligence via Midjourney.