PDF version of this report
You must have Adobe Acrobat reader to view, save, or print PDF files. The
reader is available for free
download.

SAIC
Company Profile

by Faulkner Staff

Copyright 2022, Faulkner Information Services. All
Rights Reserved.

Docid: 00011482

Publication Date: 2203

Report Type: VENDOR

Preview

Science Applications International Corporation (SAIC) is a leading government
services contractor with more than 26,000 employees (2022) and a presence
throughout the US as well as in Germany, Belgium, Bahrain, and Guam. The firm – which was founded in 1969 and split from Leidos in 2013 –
offers coverage across key areas such as Mission Support, Information
Technology, Platforms, Logistics, and Innovation Factory. In 2019, SAIC acquired
engineering and logistics services company Engility for $2.5 billion to expand
its workforce and operations. This report looks at SAIC’s operations in greater
detail.

Report Contents:

• Fast Facts
• Related Reports
• Profile
• Strategy
• Product Lines
• Activity

Fast Facts

[return to top of this report]

Name: SAIC
Headquarters
12010 Sunset Hills Road
Reston, VA 20190
Phone: (703) 676-4300
Toll-Free: (800) 430-7629
Web: https://www.saic.com/
Type of Vendor: Commercial and Federal Products and
Services Provider
Founded: 1969
Service Areas: Global
Number of Employees: 26,000 (2022)
Stock Symbol: SAIC (NYSE)

---

Profile

[return to top of this report]

Science Applications International Corporation, or SAIC, has a global reach
that includes 26,000 employees (2022) and operations in Europe and the Middle
East. The
company is a leading
contractor and IT outsourcer for the US government, especially the
Department of Defense. Founded in 1969 as a scientific and technology
research and development firm, SAIC split in 2013 into two publicly traded
companies, with one company (SAIC) focused on IT services and the other
(Leidos) pursuing national security, health, and technology engineering
contracts. The move was designed to allow SAIC to regain competitiveness
while reducing conflicts of interest. In 2019, SAIC purchased Engility
Holdings for $2.5 billion, giving the company a highly skilled workforce.

History & Milestone Events

SAIC traces its roots to 1969, when Dr. J. Robert Beyster and a small
group of scientists founded Science Applications Inc. The following
timeline charts SAIC’s evolution into a Fortune 500 company:

• 1969 – Science Applications Inc. (SAI) founded in La
  Jolla, California, by Robert Beyster.
• 1970 – SAI established an office in Washington, DC,
  looking to win government contracts.
• 1974 – SAI established SAI Comsystems Corp. to
  provide software development and engineering services for both
  government and industry. The company also founds Bull, a subsidiary
  designed to provide brokerage of SAI stock to shareholders.
• 1978 – JRB Architects, a subsidiary of the company,
  was created to offer planning, design, financial, construction, and
  operational management of health-related facilities and laboratories.
• 1979 – Company reaches $100 million in sales. The
  company also separated its energy and environmental activities into
  separate entities: the Energy Technology and Engineering Group and the
  Environmental Science and Technology Group.
• 1980 – SAI restructured, becoming a subsidiary of
  Science Applications International Corporation (SAIC), the new holding
  company.
• 1984 – SAIC acquired Carl T. Jones Associates, an
  engineering service company specializing in communication and
  electronics.
• 1988 – SAIC acquired American Systems Engineering
  Corp. (AMSEC).
• 1992 – SAIC acquired Logistic System Architects,
  expanding the company’s defense logistics support line, including
  automation, information systems, training, test and evaluation, and
  simulation.
• 1996 – Company acquired Network Solutions, Inc., a
  company that registers Internet domain names.
• 1997 – SAIC acquired Bellcore, the research lab of
  the regional Bells, which was renamed Telcordia Technologies.
• 1998 – Formed a joint venture with Rolls-Royce to
  service the aerospace, energy, and defense industries. Company also
  launched an IPO, the first for a SAIC subsidiary, by offering
  approximately 3.8 million shares of Class A Common Stock of NSI.
• 1999 – SAIC acquired the Information Services unit
  of Boeing and Broadway & Seymour’s financial services customer
  relationship management business. Company also acquired the call center
  software operations of Elite Information Group. NSI, in which SAIC at
  the time owned an approximately 23 percent stake, announced a merger
  agreement with VeriSign, becoming a wholly-owned subsidiary of VeriSign.
• 2000 – Formed AMSEC LLC, which combined SAIC’s
  wholly-owned subsidiary AMSEC Corporation with certain business units of
  Newport News Shipbuilding to provide a range of logistics, life-cycle,
  and fleet services to submarines, aircraft carriers, and other ships.
  Company also purchased the assets and operations of the Automotive
  Network eXchange, also known as the Advanced Network eXchange, from its
  Automotive Industry Action Group.
• 2001 – SAIC signed a variety of large contracts,
  including an outsourcing agreement with BP to manage its North American
  application and hosting services and a $3 billion deal to provide
  support, along with Bechtel Group, for the US Department of Energy’s
  civilian radioactive waste management program. Company also formed the
  wholly-owned subsidiary, SAIC Venture Capital Corporation, which looks
  to identify and invest in emerging technologies.
• 2003 – Beyster retired from SAIC’s CEO position.
  Kenneth Dahlberg replaces Beyster in the CEO position. Company also
  acquired Atlantic Coast Telesys; Exploranium; and Jullien Enterprises.
• 2004 – Beyster retired from the company’s chairman
  position, with Dahlberg stepping in to take over the position as well.
  SAIC also purchased Trios Associates and Aquidneck Management
  Associates.
• 2005 – SAIC sold its Telcordia Technologies
  operating units to Providence Equity Partners and Warburg Pincus for
  $1.35 billion. Company also reported plans to move from an
  employee-owned organization to a publicly-held enterprise via an IPO.
• 2006 – SAIC completed its IPO, raising about $1
  billion USD by selling about 86 million common shares. The firm also
  declared a dividend of $15.00 USD per share of its class A common stock
  and $300.00 per share of its class B common stock to its employee
  stock-holders, a $2.45 billion offering completed before the IPO was
  finalized. SAIC acquired Applied Marine Technology, AETC, Varec, bd
  Systems, Applied Ordnance Technology, Cornerstone Industry, and
  GeoViz.com.
• 2007 – SAIC and Northrop Grumman restructured their
  joint AMSEC military contracting business. By the year’s end, SAIC
  divested its AMSEC interest completely. SAIC acquired Benham Investment
  Holdings, an engineering and life-cycle technology firm, as well as
  Scicom Technologies.
• 2008 – SAIC acquired Icon Systems and SM Consulting.
• 2009 – Relocated headquarters from San Diego to
  McLean, Virginia to be closer to Washington clients.
• 2010 – Completed a variety of acquisitions, including
  SET for counter-improvised explosive device technology and Reveal
  Imaging Technologies, a threat detection products and services company
  that gives SAIC control of Reveal’s TSA approved Explosive Detection
  Systems. Opened a Cyber Innovation Center in Columbia, Maryland.
• 2012 – John P. Jumper succeeded Walter P. Havenstein
  as chief executive officer on March 1, 2012. Announced plans to split
  into two independent, publicly-traded companies.
• 2013 – SAIC separated in September to form two
  entities, with one company (SAIC) focused on IT services and the other
  (Leidos) pursuing national security, health, and engineering contracts.
  Both remain publicly traded.
• 2014 – SAIC’s new CEO Tony Moraco announced that
  after having spun off from the parent company, the company restructured
  its management team, recognizing the functions of information
  technology, communications, and corporate development as direct reports
  to the CEO.
• 2015 – SAIC pursued its first acquisition since the
  2013 split by purchasing Scitor, an intelligence community provider of
  national security services, for $790 million USD in cash.
• 2016 – SAIC was awarded a $485 million USD
  Enterprise Applications Service Technologies (EAST) 2 contract to
  provide services to operate the NASA Enterprise Applications Competency
  Center (NEACC) located at Marshall Space Flight Center in Huntsville,
  Alabama.
• 2017 – SAIC relocated its headquarters from McLean to
  Reston, VA.
• 2018 – The Navy awarded SAIC a $597 million contract for
  the production and delivery of integrated Command, Control, Communications,
  Computers, Intelligence, Surveillance, and Reconnaissance systems and
  networks.
• 2019 – SAIC and Engility Holdings, a technology company
  delivering services to the defense, federal civilian, intelligence, and
  space industries, agreed to merge and stockholders from both companies
  approved the transaction. The deal cost SAIC $2.5 billion. Upon the closing
  of the acquisition, Donna Morea will serve as chair of the merged company’s
  board of directors. Nazzic Keene will take the helm as CEO upon Tony
  Moraco’s retirement in July.
• 2020 – Names
  Prabu Natarajan as CFO, among other executive appointments … With
  Accenture, is awarded a position on a $950 million US Air Force contract for
  its Advanced Battle Management System … Signs a potential $982 million
  contract with the US Naval Sea Systems Command to provide products and
  services within its Unmanned Surface Family of Systems.
• 2021 – Appoints new SVPs of Space Business Unit (David
  Ray), AI (Michael Scruggs), Government Affairs (John
  Bonsell), Naval Business Unit (Josh Jackson), and Business Development for
  the Defense and Civilian Sector (Ravi
  Dankanikote).
• 2022 – Announces the appointment of Jon Rucker as senior vice
  president of the Army Business Unit, responsible for leading strategy, business development,
  and program delivery of approximately $1.2 billion annually in solutions and services to a
  wide range of U.S. Army customers … partners with the Yale School of Nursing to fund research
  and provide recommendations to improve access to resources such as vaccines to underserved communities.

Strategy

[return to top of this report]

SAIC provides technical, engineering, and enterprise IT services, primarily
to US government agencies in the defense, intelligence, federal civilian, space,
and health services sectors. Offerings include:

• Mission Support
• Information Technology
• Platforms
• Logistics
• Innovation Factory

Strengths

SAIC draws on almost five decades of experience with scientific research,
technology development, and fulfilling government contracts to meet
current needs for homeland security and military outsourcing. Competitive
strengths include:

• Enduring customer relationships and mission orientation.
• Full-lifecycle offerings
• Scale and contract base
• Technical processionals and experienced management
• Repeated methodologies and certified processes

The 2019 acquisition of Engility has also been beneficial for SAIC, which
used it to approximately double its business in the space and intelligence
agency sectors. SAIC also holds a key, ongoing, $5 billion contract with the
Navy.

Weaknesses

SAIC frequently faces restrictions due to the nature of its business, as most
high-level government contracts require a certain degree of certification and
security. Logistics such as workforce nationality, security clearances,
approvals, and other inherent conditions play a part in the company’s ability to
effectively operate. Should SAIC fail to meet expectations, it stands to lose
out on any number of multi-million-dollar contracts.

Outlook

According to CEO, Nazzic Keene, SAIC’s decision to take "strategic,
organizational, and leadership steps" that are "foundational to the long-term
success of SAIC" have allowed the company to make "great progress in the
execution of our strategy."

Reflecting in particular on the expected impact of COVID-19 on its
operations, SAIC expects $250 million less in revenue and $35 million in
adjusted earnings. This guidance also assumes "continued program impact" from
coronavirus through the end of fiscal 2021, as well as the extending of Section
3610 of the CARES Act. SAIC projects revenues of $7.1-$7.15 billion, and
per-share earnings of $5.95-$6.05.

Product Lines

[return to top of this report]

SAIC offers communications and military hardware, analytic software, and
services for the defense, public, and private sectors. Table 1 outlines
the company’s products and services.

Major Competitors

• Accenture: https://www.accenture.com/ 
  BAE Systems: https://www.baesystems.com/ 
  Boeing: http://www.boeing.com/
• Booz Allen Hamilton: https://www.boozallen.com/ 
  General Dynamics: https://www.gd.com/
• HPE: https://www.hpe.com/ 
  IBM Services: https://www.ibm.com/services/
• L3 Technologies: https://www.l3t.com/ 
  Lockheed Martin: https://www.lockheedmartin.com/
• Northrop Grumman: http://www.northropgrumman.com/
• Raytheon: https://www.raytheon.com/
• Unisys: https://www.unisys.com/

Activity

[return to top of this report]

Mergers, Acquisitions, and Divestitures

Science Applications International Corp. (SAIC) completed its
acquisition of Halfaker and Associates for $250 million in
cash. The acquisition will grow the company’s digital transformation portfolio while expanding its ability
to support the government’s healthcare mission. Halfaker and Associates brings to SAIC a proven ability to
create, modernize, integrate, and secure mission-critical systems for federal government customers as well
as a strong culture of service rooted in the desire to make a difference in the lives of its community and
veterans.

(07/02/2021)

Products and Services

SAIC announced the launch of Rugged Apps, which provides government customers with highly secure versions of commercial mobile
applications and software scanning services for apps. Rugged Apps fortifies mobile applications by ensuring they are
National Information Assurance Partnership (NIAP) compliant and shields against constantly evolving cyber threats.
Avenza Maps Pro is the first app available for use through the Rugged Apps offering. This mobile mapping app is designed
for individuals, organizations, governments and academic institutions across the globe that have a need for advanced
geographic information capabilities in the field.

(12/16/2021)

Science Applications International Corp. (SAIC)
has unveiled CloudScend, a cohesive solution of integrated platform automation tools,
security protocols and processes to help federal agencies plan for and accelerate the migration of large-scale workloads
to the cloud and innovate further once they’re there. CloudScend leverages SAIC’s deep experience in helping government
organizations obtain the benefits of the cloud to determine the best way to prioritize the migration of strategic workloads.
The comprehensive framework enables agencies to map requirements to mission needs and achieve a clear view of their path to
the cloud with detailed insights and a proven methodology. CloudScend incorporates a wide range of security controls and
automated processes, so agencies can seamlessly migrate systems and applications while monitoring the health of code and team
performance at every step.

(07/14/2021)

Alliances and Joint Ventures

SAIC has
partnered with Yale School of Nursing to fund research and provide recommendations to improve access to resources such as vaccines
during a national response to a crisis. "The findings and recommendations from this study will help inform local, state and federal
decision makers on the barriers that still exist in rural and disadvantaged communities in the midst of a national response and how best
to address these barriers," stated Bob Genter, president, Defense and Civilian Sector at SAIC. Commissioned by SAIC in February 2021
and completed in December 2021, the study focused on Black, Hispanic, and immigrant communities during COVID-19. For Black communities the
strategies identified to encourage vaccine usage largely converged into three categories: a) addressing mistrust, b) combating misinformation,
and c) improving access to COVID-19 vaccines. In Hispanic communities, successful intervention occurs through the mobilization of local community
leaders and improving access to information in one’s native language. For immigrant populations, the response must address general concern about
threats to their residency status that could be triggered by engaging with healthcare systems.

(02/25/2022)

Science Applications International Corp. (SAIC) has been awarded prime contract positions
on the General Services Administration (GSA) ASTRO multiple-award, indefinite-delivery, indefinite-quantity family of contracts.
Managed by GSA’s Federal Systems Integration and Management Center (FEDSIM) office, SAIC is one of only six companies awarded all
10 contracts. The award of the GSA ASTRO contracts is an innovative and strategic addition to SAIC’s existing portfolio of contract
vehicles accessible to customers across the federal government. Under this potential 10-year, new-business family of contracts, the
awards provide contract access for Department of Defense and federal civilian customers to SAIC’s technical expertise and experience
in providing a broad array of services to support manned, unmanned and optionally manned systems, robotics and platforms. GSA ASTRO
has no defined ceiling value and is a family of 10 separate contracts, or pools, each representing a different scope of work. The pools
include data operations, mission operations, aviation, ground, space, maritime, development/systems integration, research, support
and training.

(01/04/2022)

SAIC has been awarded a $1.1 billion contract to produce, assemble, test
and deliver the U.S. Navy’s MK 48 MOD 7 Torpedo Afterbody Tailcones (AB/TC) and MK29 Mod 0 Warshot Fuel Tanks. Under the contract SAIC
will provide all necessary facilities, resources and management necessary to meet the contract’s integration, production, test and delivery
requirements. The AB/TC is the section of the torpedo containing propulsion and navigations systems, with 26 major sub-assemblies requiring
the integration of greater than 500 pieces and parts in each.

(12/06/2021)

Science Applications International Corp. (SAIC) won a contract to compete for task orders worth up to $93 million supporting Tactical Integrated
Threat/Target Training Systems (TTS) for the US Navy’s Adaptive Combat Environment Systems group at Naval Air Station, China Lake,
California. Under the five-year, indefinite-delivery/indefinite-quantity contract, SAIC will compete with other selected vendors to provide
research and development, engineering, integration, testing, cybersecurity, upgrades and sustainment for numerous tactical threat systems to
help improve Navy aircrew effectiveness and survivability. The Navy expects to complete work on this cost-plus-fixed-fee, firm-fixed-price
contract in September 2026. TTS support includes range data collection and specialized instrumentation for systems under test, data at the edge
computing and transfer, and data sorting and analytics in support of system performance analysis. Additional work includes sustainment of unique
electronic warfare-centric range capabilities and movement into new technology for the next generation of systems’ performance validation and
verification.

(11/04/2021)

The US Navy awarded Science Applications
International Corp. (SAIC) an
$85 million single-award, cost-plus-fixed-fee contract to continue to provide software engineering, cloud migration,
DevSecOps, and cyber support to the Joint Expeditionary Command and Control (JEXC2) family of systems. Under the five-year
contract, SAIC will support the Naval Surface Warfare Center Panama City Division (NSWC PCD) to design, deliver, and sustain
a complex portfolio of JEXC2 systems and capabilities. SAIC’s Agile software development lifecycle and innovative cloud
solutions enable NSWC PCD to achieve JEXC2 long-term goals such as Joint All-Domain Command and Control (JADC2) integration
and delivery of the Tactical Shore Platform architecture, critical to Multi-Domain Operations. JEXC2 development leverages
the capabilities of existing command and control systems, advanced concept technology demonstrations, and other advanced
technology projects. JEXC2 systems consists of various command, control, communications, computers, and intelligence (C4I)
subsystems and networks with accompanying infrastructure and communications equipment.

(07/27/2021)

SAIC won a contract
with the US Air Force Life Cycle and Management
Center, Force Protection Division, to help the US Department of Defense Combatant Commands mitigate small
unmanned aircraft systems (sUAS) threats and protect US forces. Under the contract, SAIC will provide a
broad range of integrated logistics support and sustainment services necessary to modernize defenses against
the rapidly evolving threat of sUAS in the US, host nations, and global contingency locations. The single-award
contract has a one-year base period of performance with three one-year options, and is worth up to $90 million.

(06/29/2021)

Personnel and Organizational

John Rucker has been appointed SAIC‘s Senior Vice President
of the Army Business Unit, responsible for leading strategy, business development, and program delivery of approximately $1.2
billion annually in solutions and services to a wide range of US Army customers. In his new role, Rucker reports to Bob Genter,
president of SAIC’s Defense and Civilian Sector. Prior to joining SAIC, Rucker held the position of Senior Vice President of the
Command, Control, Communications, and Intelligence (C3I) Group at CACI. Before that he spent 20 years in various technical, program
management and executive leadership positions at Lockheed Martin.

(01/13/2022)

SAIC has hired Kevin Brown has joined the
company as Chief Information Security Officer (CISO). Brown will lead the company’s cybersecurity strategy and oversee
critical cybersecurity areas including incident response, disaster recovery, awareness, business resilience, monitoring,
remediation, threat intelligence and information governance. Brown will report to Nathan Rogers, SAIC’s Chief Information
Officer. Brown has served in cybersecurity-related leadership positions for decades, most recently as Vice President and
CISO at Boston Scientific, a manufacturer of medical devices. In that role, he was responsible for many aspects of the
company’s cybersecurity posture, including developing its cyber strategy, maintaining a security operations center and
overseeing threat management.

(09/23/2021)

Science Applications International Corp. (SAIC) announced the
formation of a Strategic Advisory Board of experienced leaders who will bring comprehensive expertise
from both industry and the public sector and provide advice and guidance to facilitate growth and innovation
at the firm. The first three members of the board are David Norquist, former Department of Defense (DoD) deputy
secretary and comptroller; Ellen Lord, former DoD undersecretary for acquisition and sustainment; and Dana Deasy,
former DoD chief information officer. All three also bring industry experience, with Norquist having served as a
partner with Kearney & Company, Lord formerly serving as the president and CEO of Textron Systems Corp., and Deasy
having served as the CIO of JPMorgan Chase. The Strategic Advisory Board will advise company leaders on customer
priorities, acquisition policy, potential disruptions in the environment, as well as possible new growth areas. In
the future, the company may also invite other prominent thought leaders with experience in different sectors, such as
health care and energy.

(07/13/2021)

SAIC appointed two new senior vice presidents
of Human Resources (HR) and a new corporate controller. Heather Wilson has been named
Senior
Vice President of HR, serving as the HR business partner to SAIC’s Defense & Civilian Sector.
The company also appointed Peter Kidd as its new Senior Vice President of Total Rewards, overseeing SAIC’s Total Rewards strategy that includes compensation, benefits, rewards, incentives, and recognition
programs aligned with the company’s overarching strategy. In addition, SAIC announced the appointment of
Ben Wanjara as Corporate Controller.

(07/09/2021)

SAIC announced that Stephen Ambrose will join the firm
in the newly created role of chief climate scientist. In this position, Ambrose will lead SAIC’s
climate program to provide government and industry customers solutions to address some of the most
challenging problems facing society. Ambrose brings more than 40 years of experience working in science
and technology at the National Oceanic and Atmospheric Administration (NOAA), NASA, the Environmental
Protection Agency (EPA), the Department of the Interior, and the private sector where he shaped and led
efforts to apply technology and analytics to government missions regarding climate-related challenges.
His experience will guide SAIC’s efforts to support government customers as they advance solutions to
deal with the impacts of climate on land, air, sea, wildlife, and civilizations around the world. He
will also promote solutions for measuring and addressing climate challenges, leveraging SAIC solutions
and capabilities in data science, modeling, artificial intelligence, machine learning, and analytics.

(07/01/2021)

SAIC announced the
appointment
of Milford W. McGuirt, retired managing partner of KPMG’s Atlanta office,
to the company’s board of directors, effective July 1, 2021. McGuirt will
serve on the board’s Audit Committee as well as the Nominating and Corporate
Governance Committee.

(06/29/2021)

SAIC appointed Garth
Graham to its Board of Directors, effective immediately. Graham
is the Director and Global Head of Healthcare and Public Health
Partnerships at YouTube,
as well as a former US Deputy Assistant Secretary of Health at
the Department of Health and Human Services.

(03/15/2021)

Science Applications International Corp. (SAIC) appointed David Ray as
SVP, Space Business Unit. Ray will report to President, National
Security and Space Sector, Michael LaRouche. The executive
formerly served with the National Reconnaissance Office, NASA,
and the US Space Force, and served as President, Government
and Defense with Flir
Systems. He is also a former exec with Raytheon.

(03/09/2021)
Science Applications International Corp. (SAIC) appointed David Ray as
SVP, Space Business Unit. Ray will report to President, National
Security and Space Sector, Michael LaRouche. The executive
formerly served with the National Reconnaissance Office, NASA,
and the US Space Force, and served as President, Government
and Defense with Flir
Systems. He is also a former exec with Raytheon.

(03/09/2021)

Financials

SAIC logged a 2.1 percent
year-over-year increase in revenues for the fiscal 2022 third quarter ended
October 29, 2021. Revenues for the quarter increased $80 million compared to
the same period in the prior year primarily due to ramp up on new and existing
contracts and the acquisition of Halfaker. Operating income as a percentage of
revenues of 6.0 percent, decreased from 6.1 percent in the comparable prior year
period primarily due to lower employee benefit costs in the prior year period and
higher acquisition and integration costs in the current period.

(12/06/2020)

SAIC announced results for the second quarter
ended July 30, 2021. Revenues for the quarter increased $72 million, or 4.1 percent,
compared to the same period in the prior year quarter primarily due to ramp up on new
and existing contracts and net favorable changes in contract estimates. The company
estimates the second quarter program impact from the COVID-19 pandemic to be approximately
$36 million, primarily driven by reduced volume in the supply chain business. Operating
income as a percentage of revenues of 7.2 percent, increased from 5.7 percent in the comparable
prior year period.

(09/02/2021)

 

[return to top of this report]