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Science Applications International Corporation (SAIC) is a FORTUNE 500 scientific, engineering and technology applications company headquartered in the United Statesmarker with numerous federal, state, and private sector clients. It works extensively with the United States Department of Defensemarker, the United States Department of Homeland Securitymarker, and the United States Intelligence Community, including the National Security Agencymarker, as well as other U.S. Government civil agencies and selected commercial markets.

In fiscal year 2003, SAIC did over $2.6 billion in business with the United States Department of Defensemarker, making it the ninth largest defense contractor in the United States. Other large contracts include their contract for information technology for the 2004 Olympics in Greecemarker and from 2001 to 2005, SAIC was the primary contractor for the FBImarker's unsuccessful Virtual Case File project. SAIC relocated its corporate headquarters to their existing facilities in the Tysons Cornermarker area of McLean, Virginiamarker in September 2009.

History

SAIC was founded by Dr. J. Robert "Bob" Beyster in 1969 in La Jolla, Californiamarker, as Science Applications Incorporated. As of 2009, SAIC employed 45,000 employees in 150 cities worldwide and reported $10.07 billion in revenue for its fiscal year ended January 31, 2009, making it number 285 on the Fortune 500 list.

On November 3, 2003, Kenneth C. Dahlberg was named the CEO of SAIC, ending Beyster's 30+ years of leadership. In May 2005, under the new CEO, the company changed its external tagline from An Employee-Owned Company to From Science to Solutions, retaining the former for internal communications.

The company has had as part of its management, and on its Board of Directors, many well known ex-government personnel including Melvin Laird, Secretary of Defense in the Nixon administration; William Perry, Secretary of Defense for Bill Clinton; John M. Deutch, President Clinton's CIA Director; Admiral Bobby Ray Inman who served in various capacities in the NSA and CIA for the Ford, Carter and Reagan administrations; and David Kay who led the search for weapons of mass destruction for the U.N. following the 1991 Gulf War and for the Bush Administration following the 2003 Iraq invasion.

Initial public offering

SAIC conducted an initial public offering of common stock on October 13, 2006. The IPO raised US$1.7 billion. After the proposed IPO, existing employee-owners would retain between 80% and 90% of the new company, meaning that the employee ownership would be substantially preserved.

On September 27, 2006, during a special meeting of stockholders, employee-owners voted by a margin of 86% to proceed with the IPO. The initial stock price is estimated at $13–15 per share, with a public offering of 75 million shares. If the underwriters, Bear Stearns and Morgan Stanley, exercise overallotment options, an additional 11.25 million shares will be offered. The company also plans to pay a special dividend to existing stockholders, upon completion of the IPO, of $1.6 billion to $2.4 billion.

Operations

The Defense Intelligence Agency (DIA) transitioned a Remote Viewing Program to SAIC in 1991 and it was renamed Stargate Project.

In January 1999, new SAIC consultant Steven Hatfill and his collaborator, SAIC vice president Joseph Soukup, commissioned William C. Patrick (a retired leading figure in the old U.S. bioweapons program) to report on the possibilities of terrorist anthrax mailings in the United States. (There had been a spate of hoax anthrax mailings in the previous two years.) Barbara Hatch Rosenberg said that the report was commissioned "under a CIA contract to SAIC". However, SAIC said Hatfill and Soukup commissioned it internally—there was no outside client.

Patrick produced his 28-page report in February 1999. Some subsequently saw it as a "blueprint" for the 2001 anthrax attacks. The report suggested the maximum amount of anthrax powder—2.5 grams—that could be put in an envelope without producing a suspicious bulge. This was just a little more than the actual amounts—2 grams each—in the letters sent to Senators Tom Daschle and Patrick Leahy. But the report also suggested that a terrorist might produce a spore concentration of 50 billion spores per gram. This was only one-twentieth of the actual concentration—1 trillion spores per gram—in the letters sent to the senators.

In 2002, SAIC was chosen by the NSAmarker to produce a technology demonstration platform for the agency's Trailblazer program in a contract worth $280 million. Trailblazer is a "Digital Network Intelligence" system, intended to analyze data carried on computer networks. Project participants included Boeing, Computer Sciences Corporation, and Booz Allen Hamilton. SAIC had also participated in the concept definition phase of Trailblazer, beginning March 2001. According to science news site PhysOrg.com, Trailblazer was a continuation of the earlier ThinThread program. In 2005 NSA director Michael Hayden told a Senate hearing that the Trailblazer program was several hundred million dollars over budget and years behind schedule.

Subsidiaries

  • bd Systems
  • Bechtel SAIC Company, LLC, a joint venture between SAIC and Bechtel
  • Benham, a subsidiary of SAIC and its subsidiaries
  • Danet
  • Eagan, McAllister Associates, Inc a wholly owned subsidiary of SAIC under the C4I business unit.
  • Hicks & Associates
  • SAIC-Frederick, Inc.
  • SAIC International Subsidiaries
  • SAIC Venture Capital Corporation
  • Varec
  • Applied Marine Technology Corporation, A SAIC Operation
  • EAI Corporation, a wholly owned subsidiary


SAIC and ScottishPower Form Joint Venture

May 8, 2000 - Science Applications International Corporation (SAIC), through its wholly owned United Kingdom subsidiary SAIC Ltd., and ScottishPower's Information Systems Division announced the formation of a joint venture (JV) between the two organizations.

The JV company, called CALANAIS, was 50 percent owned by ScottishPower and 50 percent owned by SAIC Ltd. The new company exploited the growing demand for information technology (IT) expertise in the rapidly changing global utilities sector.While continuing to focus on providing IT services to ScottishPower, the JV sought to develop external IT service business with customers within the multi-service utility sector. CALANAIS, exploiting the combined strengths of both companies, also marketed expertise in business change and Internet-enabling strategies aimed specifically at the utility sector.Initially based in Glasgow, Scotland and Chester, England, CALANAIS employed approximately 600 people, mainly drawn from existing ScottishPower staff who transferred to work in the new enterprise.

Calanais announces brand transition to parent company SAIC

On August 29, 2002, SAIC announced that Calanais, a wholly-owned subsidiary, will trade and market under the global SAIC brand. The existing Calanais brand and logo were phased out through a planned transition period. The Calanais entity became recognised as SAIC's utilities group.

East Kilbride, Peel Park office

The group, now employs around 1500 people in the UK, 450 of whom are at its Scottish headquarters in East Kilbridemarker.

Its East Kilbride facility currently acts as a centre of excellence serving the UK utilities sector and as the call centre base responsible for handling all UK clients.

India presence

SAIC has development centers in Delhimarker and Bangalore, Indiamarker. Scicom Technologies Noida was acquired by SAIC in September 2007.

Former subsidiaries

AMSEC LLC, a business partnership between SAIC and Northrop Grumman subsidiary Newport News Shipbuildingmarker divested on July 13, 2007. Network Solutions was acquired by SAIC in 1995, and subsequently was acquired by VeriSign, Inc. for $21 billion.

FBI allegations

In June 2001 the Federal Bureau of Investigationmarker (FBI) paid SAIC $122 million to create a virtual case file system (VCF) software to speed up the sharing of information among agents. But the FBI abandoned VCF when it failed to function adequately. Robert Mueller, FBI Director, testified to a congressional committee, "When SAIC delivered the first product in December 2003 we immediately identified a number of deficiencies – 17 at the outset. That soon cascaded to 50 or more and ultimately to 400 problems with that software ... We were indeed disappointed."

SAIC executive vice president Arnold L. Punaro claimed that the company had "fully conformed to the contract we have and gave the taxpayers real value for their money." He blamed the FBI for the initial problems, saying the agency had a parade of program managers and demanded too many design changes. During 15 months that SAIC worked on the program, 19 different government managers were involved and 36 contract modifications were ordered, he said.

"There were an average of 1.3 changes every day from the FBI, for a total of 399 changes during the period," Punaro said.

References

  1. SAIC Moves Corporate Headquarters to McLean, Virginia
  2. Dr. J. Robert Beyster with Peter Economy, The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company, John Wiley & Sons (2007) p.xiii
  3. William J Broad, "Terror Anthrax Linked to Type Made by U.S.", New York Times, 3 December 2001; Barbara Hatch Rosenberg (director of the Federation of American Scientists' biochem weapons working group), " Analysis of the Anthrax Attacks" (copy); Guy Gugliotta and Dan Eggen, " Biological Warfare Experts Questioned in Anthrax Probe", Washington Post, June 28, 2002 (UCLA copy); Brian Ross, " Blueprint for Anthrax Attack", ABC News online, 27 June 2002; Marilyn W Thompson, " The Pursuit of Steven Hatfill", Washington Post, 14 September 2003, p.W06.)


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