SAIC Awarded Contract by the U.S. Navy Program Executive Office of Command, Control, Communications, Computers and Intelligence (C4I) — Press Release
Filed under: Business Line, Companies, Contract Awards, Events, IT, Press Releases, SAIC, development program
SAIC Awarded Contract by the U.S. Navy Program Executive Office of Command, Control, Communications, Computers and Intelligence (C4I)
Company to Help Engineer, Integrate and Test C4I Technology Solutions
MCLEAN, Va., March 10 /PRNewswire-FirstCall/ — Science Applications International Corporation (SAIC) (NYSE:SAI) today announced it has been awarded a prime contract by the U.S. Navy’s Program Executive Office (PEO) of Command, Control, Communications, Computers and Intelligence (C4I) to develop Department of Defense command and control (C2) software, as well as modification and enhancement of existing C2 systems. The multiple award, indefinite-delivery/indefinite-quantity contract, has a three-year base period of performance, two one-year options and a ceiling value of more than $625 million for SAIC. Work will be performed primarily at PEO C4I’s headquarters in San Diego, Calif.
PEO C4I provides integrated communication and information technology systems, delivering end-to-end connectivity and enabling decision superiority to ensure mission success of U.S. naval forces. It acquires, fields, and supports C4I systems that extend across Navy, joint, and coalition platforms. This includes managing acquisition programs and projects that cover all C4I disciplines: applications, networks, communications, intelligence and surveillance, and reconnaissance systems for afloat platforms and shore commands. Under the contract, SAIC will provide support in areas including software engineering, design, development, integration and modification, as well as test and evaluation. SAIC will also provide integrated logistics support, and configuration and program management services as required.
“We look forward to helping PEO C4I identify effective and affordable solutions to emerging C2 (command and control) requirements, and assisting them as they continue to acquire, integrate and deliver C4I technology to the naval warfighter operating on afloat platforms, at shore commands, or in a joint service environment,” said Peter Dube, SAIC senior vice president and business unit general manager.
About SAIC
SAIC is a FORTUNE 500® scientific, engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.1 billion for its fiscal year ended January 31, 2009. For more information, visit www.saic.com. SAIC: From Science to Solutions®
Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC’s Annual Report on Form 10-K for the period ended January 31, 2009, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
U.S. Government To Invest In Biomass Fuel Production
Filed under: Business Line, Companies, Contract Awards, Events, Military Aviation, S&T, SAIC, Services, development program, logistics, production program
The U.S. Government’s Energy Department awarded SAIC a contract to provide engineering and support services for a biomass ethanol refinery. The total value of the contract could be $21 million if all options are exercised.
The U.S. Government and military are investing in developing different ways to make gasoline out of plant matter. Ethanol is already common but this program is to look at other biomass feedstocks as well as the traditional corn. The U.S. Air Force and DARPA are researching into using algae to make carbon based fuel.
SAIC DEMONSTRATES COMMON DRIVER TRAINER AND TACTICAL PLATFORM LIFECYCLE MANAGEMENT AT AUSA WINTER SYMPOSIUM & EXPOSITION
SAIC DEMONSTRATES COMMON DRIVER TRAINER AND TACTICAL PLATFORM LIFECYCLE MANAGEMENT AT AUSA WINTER SYMPOSIUM & EXPOSITIONFebruary 22, 2010
Company to Demonstrate CounterBomber® System that Helps Detect Suicide Bombers
(ORLANDO) -- Science Applications International Corporation (SAIC) [NYSE: SAI] today announced it is demonstrating its comprehensive, tactical vehicle platform lifecycle management system, the Common Driver Trainer (CDT) product line, and the CounterBomber® system at the 2010 AUSA Winter Symposium & Exposition, Feb. 24-26 at the Broward County Convention Center in Fort Lauderdale, Fla.
At AUSA, SAIC is unveiling the new CDT variant for the M1Abrams Main Battle Tank during a brief ceremony on Feb.24 at 3 p.m. at Booth 2335. The tank virtual simulator is available for test drives on Feb.24-26. The CDT Stryker and MRAP (Mine Resistant Ambush Protected) vehicle cab variants will also be on display.
In addition, SAIC is demonstrating its comprehensive Tactical Platform Lifecycle Management system for tactical vehicle fleets at five interactive process stations–integration, data management, fielding management, sustainment management, and simulation and training. SAIC developed the system for the Department of Defense’s MRAP vehicle procurement program. SAIC is also demonstrating the CounterBomber system that integrates radar and video to provide the first-ever system capable of automatically detecting suicide bombers at safe distances.
“SAIC’s simulation and tactical platform management products offer critical support for next generation training solutions, complex logistics integration, and detection systems,” said Joe DeFrancisco, SAIC senior vice president. “Our virtual simulation product line and Comprehensive Tactical Platform Lifecycle Management system illustrate our ability to integrate advanced capabilities into strategic, turnkey, customized solutions to meet the challenges of supporting today’s warfighters and theater operations.”
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SAIC Awarded $12 Million Delivery Order to Develop U.S. Army Aviation Crew Member Simulators — Press Release
Filed under: Business Line, Companies, Events, IT, Press Releases, SAIC, logistics, training
Company to Design and Develop First Integrated Helicopter Crew Member Simulators
MCLEAN, Va. and SAN DIEGO, Feb. 11 /PRNewswire-FirstCall/ — Science Applications International Corporation (SAIC) (NYSE:SAI) today announced that it was awarded a delivery order by the U.S. Army’s Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) to develop the first integrated crew member simulators for CH-47 and UH-60 helicopters under the Non-rated Crew Member Manned Module (NCM3) program. The NCM3 simulators will integrate with the Army’s Aviation Combined Arms Tactical Trainer (AVCATT) simulators. The contract has a 28 month base period of performance, a single option for a second variant, and a total value of more than $12 million if the option is exercised. Work will be performed primarily in Orlando, Fla. The delivery order was awarded under the second STRI (simulation, training and instrumentation) Omnibus Contract (STOC II).
PEO STRI’s NCM3 program provides a collective training system to meet aviation crew member training requirements. The NCM3 is a transportable, multi-station, virtual simulation device designed to support individual, crew and collective training. Under the delivery order, SAIC will design, develop, integrate, test, deliver and maintain two mobile variants equipped with helicopter crew member simulator modules to support gunnery and crew coordination training.
“While prototype crew member simulators have been available, the cost-effective development of full-production integrated simulators for helicopter crew members is a first, enabling non-rated crew members to train on critical, coordinated tasks like gunnery, sling load and hoist operations with pilots,” said Beverly Seay, SAIC senior vice president and business unit general manager. “This delivery order expands our virtual simulation product line in aviation training, and enables us to help PEO STRI ensure that America’s warfighters receive the best training possible.”
About SAIC
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.1 billion for its fiscal year ended January 31, 2009. For more information, visit www.saic.com. SAIC: From Science to Solutions®
Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC’s Annual Report on Form 10-K for the period ended January 31, 2009, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
Contact: Melissa Koskovich Laura Luke
(703) 676-6762 (703) 676-6533
Melissa.l.koskovich@saic.com laura.luke@saic.com
SAIC Awarded $12 Million Delivery Order to Develop U.S. Army Aviation Crew Member Simulators
SAIC Awarded $12 Million Delivery Order to Develop U.S. Army Aviation Crew Member SimulatorsFebruary 11, 2010
Company to Design and Develop First Integrated Helicopter Crew Member Simulators
MCLEAN, Va. and SAN DIEGO, -- Science Applications International Corporation (SAIC) (NYSE: SAI) today announced that it was awarded a delivery order by the U.S. Army's Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) to develop the first integrated crew member simulators for CH-47 and UH-60 helicopters under the Non-rated Crew Member Manned Module (NCM3) program. The NCM3 simulators will integrate with the Army's Aviation Combined Arms Tactical Trainer (AVCATT) simulators. The contract has a 28 month base period of performance, a single option for a second variant, and a total value of more than $12 million if the option is exercised. Work will be performed primarily in Orlando, Fla. The delivery order was awarded under the second STRI (simulation, training and instrumentation) Omnibus Contract (STOC II).
PEO STRI's NCM3 program provides a collective training system to meet aviation crew member training requirements. The NCM3 is a transportable, multi-station, virtual simulation device designed to support individual, crew and collective training. Under the delivery order, SAIC will design, develop, integrate, test, deliver and maintain two mobile variants equipped with helicopter crew member simulator modules to support gunnery and crew coordination training.
"While prototype crew member simulators have been available, the cost-effective development of full-production integrated simulators for helicopter crew members is a first, enabling non-rated crew members to train on critical, coordinated tasks like gunnery, sling load and hoist operations with pilots," said Beverly Seay, SAIC senior vice president and business unit general manager. "This delivery order expands our virtual simulation product line in aviation training, and enables us to help PEO STRI ensure that America's warfighters receive the best training possible."
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U.S. Army Moves Out on Future Combat Systems (FCS) Replacement
Filed under: Boeing, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Federal Budget Process, Restructuring, SAIC, Services, U.S. Army, development program
One of the major budget decisions of the Obama Administration was to end the U.S. Army’s Future Combat Systems (FCS) program. This overarching system-of-systems was to provide new vehicles, weapons, unmanned vehicles and data links to provide a rapid, hard hitting replacement for the heavy armored force built around the M1 tank and the M2 Bradley fighting vehicles. The FCS had seen major growth in cost and schedule and it’s requirements pre-dated operations in Iraq and Afghanistan. The administration decided to end the program. Boeing (BA) and SAIC (SAIC) were the prime contractors on it.
To replace FCS the Army stood up a Brigade Modernization Program that would take parts of the old program and also begin development of new requirements and vehicles. With the passage of the 2010 defense budget last week the Army took the first step by awarding Boeing a contract for initialization of Increment 1 of the new program. This contract is to provide the soldier on the ground enhanced surveillance, reconnaissance and intelligence capabilities. Increment 1 will include some unmanned ground and air vehicles as well as sensors and a network to integrate them.
Further increments of the program will see further investment in new vehicles and weapons designed to the new requirements.
U.S. National Guard Bureau Awards SAIC Construction Management Contract
Filed under: Air National Guard, Business Line, Companies, Contract Awards, Events, IT, SAIC, Services, logistics
The U.S. National Guard Bureau (NGB) coordinates and manages resources for the fifty states and territories National Guard forces. This includes the Army and Air Force Guard units. The states provide a great deal of funding for operations but the Federal Department of Defense helps buy equipment and training for the forces. The NGB helps manage this equipment as well as numerous facilities across the United States.
SAIC was awarded a contract to provide construction support for the NGB. The two year base contract could last five years and be worth up to $95 million. This contract is a renewal of an earlier one the company had.
SAIC’s Benham subsidiary primary job under the contract is to manage architectural design and engineering services for structures, roads and airfields. The structures involved include hangers, maintenance, munitions and supply shops as well as infrastructure on the bases such as fire and police stations, mess halls and medical buildings.
Reflecting Change In Focus SAIC Moving Headquarters To Northern Virginia
Filed under: Business Line, California, Companies, Congress, Events, IT, Restructuring, SAIC, SETA, States, Virginia, logistics
One of the top ten defense contractors, SAIC, is moving its corporate headquarters from San Diego, CA to outside Washington, DC to Fairfax, VA. The company obviously has a large presence outside Washington, DC where many of its contracts are executed. The move to Fairfax, VA is not completely unexpected and the company is using the excuse of the better business climate in that state to support the move.
The company will still stay in California as it has many customers there not least the Navy’s SPAWAR in San Diego. The cost to California will be several hundred of the company’s highest paid employees who will now be moving to Virginia and spending their earnings and paying taxes there. The cost of living even in Northern Virginia will be much less for their employees just in housing and income taxes alone.
The move also comes at a time when the Washington, DC area is going to experience solid growth in the Federal Government work force due to some of the initiatives of the Obama Administration. Having their leadership in the DC area will facilitate business development and cultivating relationships with politicians and bureaucrats alike.
SAIC Wins IED SETA Contract
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, S&T, SAIC, SETA, Services, development program
The United States Department of Defense awarded a Scientific, Engineering, Technical and Analytical (SETA) support contract for the Joint Improvised Explosive Device Defeat Organization (JIEDDO) to SAIC. The contract is for five years and has a ceiling amount of over $400 million. SETA support will cover all aspects of program management and engineering efforts by the organization.
The IED has proved to be the major threat to U.S. forces in Iraq and Afghanistan for the last five years or so inflicting a significant number of casualties. The DoD has set up and run a variety of organizations to coordinate the efforts to defeat them. At one point there was a joint program office and now this organization. All different types of defenses have been looked at and the most visible is the MRAP.
MRAP are passive defenses using armor to defeat the mines and blast weapons. Active defenses have been jammers to prevent the command detonators as well as different detection systems. The U.S. has poured a great deal of money into this effort and this contract reflects that. There is of course no guarantee that all of the contract will be awarded to fill the ceiling.
Orbital Earnings Take A Hit
Filed under: Boeing, Business Line, Companies, Department of Defense, Earnings, Events, Federal Budget Process, IT, Military Aviation, Orbital Systems, S&T, SAIC, Satellites, Services, development program, logistics, missile defense, production program, space
Due to some restructuring of its work due to the Obama Administration’s efforts to reorient defense spending Orbital Sciences Corporation reported a downturn in revenue and operating income in its most recent quarterly results. The company saw a missile defense contract ended and some delays in satellite work leading it to reduce its estimates for the full year.
Of the major defense companies reporting so far results have been mixed. Some have seen better quarters then others. The effects of the major changes planned by Obama and Secretary of Defense Gates may take some months to have effect. The large programs they have ended will still be paying termination costs to the companies as they figure out what fees are needed and what work will be paid for. There are also chances that new contracts will be awarded in the next year or so.
Several programs will be continued in another form it may take two or three years for the next iteration to start. The Army’s Future Combat System (FCS) contract with Boeing and SAIC ended but the technology and work has been inserted into a new program. The contracts for the new program have not been fully awarded, so Boeing and SAIC may end of with revenue from that effort. In the end despite the cancellation the companies may not end up losing much revenue.
FCS Cancellation Fallout
Filed under: Boeing, Business Line, Companies, Congress, Events, Federal Budget Process, IT, Restructuring, SAIC, Services, U.S. Army, development program, logistics, production program
The cancellation of the current Future Combat Systems (FCS) development contract was one of the cornerstones of the Obama Administrations 2010 defense budget. The program of new vehicles, unmanned aerial and ground systems, and the data links connecting them was estimated at over $160 billion. The Army still has a requirement for a upgrade to their combat brigades currently using the Eighties produced M1/M2 vehicles and the Styker Interim system. As such a new program was set up to replace FCS almost immediately after the contract with Boeing and SAIC was canceled.
Now the Army is concerned that the money planned for in the budget may not be available for this new program. At a minimum some of it will be needed to pay the termination fees related to the various contracts ended prematurely. They were ended at the convenience of the government so the contractors are entitled to payment for whatever work they had done and what it takes to close out the contracts. If the money doesn’t remain in the FCS line then the Army will be forced to fund it from other programs.
Congress in their mark up of the 2010 budget cut most of the money budgeted for this as they felt there were sufficient current funds to cover this. This may be a little too much penny save pound foolish. The Army knows fairly well what is needed and probably budgeted appropriately. The cost to other parts of the Army including the new modernization program may be quite high.
DARPA Money Flows to Large Contractors
Filed under: Business Line, Companies, Contract Awards, DARPA, Events, IT, Northrop Grumman Corp., SAIC, Services, development program
One would expect an organization like the Defense Advanced Research Projects Agency (DARPA) to be funding small companies that possess breakthrough ideas and technologies. Often it does as it looks to provide seed money to jump start ideas that can then go on to be fully developed and produced. The Agency just announced major contract awards to two of the largest defense contractors in the U.S. Northrop Grumman and SAIC each will work on developing tetrahertz frequency amplifiers. Northrop actually received two contracts. Total value of these awards are $57 million.
There are some things that the large contractors have already done a lot of work in or possess the necessary facilities. These contracts are for an incremental development in a known technology — microchip integration. Moving forward to the higher frequencies that are required for advanced transmitters and receivers will require this kind of development.
The Small Business Innovative Research (SBIR) program provides funding to a variety of companies each year to look at developing advanced concepts or technologies that DoD requires. This fund is generated through a portion of all R&D funding and will continue despite DARPA’s efforts to fund other efforts.
SAIC Revenue Reaches Milestone
Filed under: Business Line, Companies, Earnings, Events, IT, S&T, SAIC, SETA, logistics
Fox Business reports that SAIC reached an annual revenue of over $10 billion when it reported its Fiscal Year 2009 results. SAIC is one of the top ten defense contractors and primarily provides engineering and consulting services to the Pentagon. Last year it generated an operating income of $776 million which is a growth of 15% over 2008. The company also provided strong guidance for 2010 due to a backlog of almost $17 billion in contracts.
Army Pushes Back on FCS
Filed under: Boeing, Business Line, Companies, Congress, Events, Federal Budget Process, GAO, SAIC, Services, U.S. Army, development program, production program
Due to its complexity, cost and risk the Future Combat System (FCS) program is required to have an annual report to Congress submitted by the GAO. This was done recently. The FCS is the largest and probably most complex program under development right now by the U.S. military. It is being managed and integrated by Boeing and SAIC. The GAO continues its negative view of FCS and the Temple Daily Telegram reports that the Army acquisition folks countered that with calls to reporters. FCS is a system of systems which will used wheeled armored vehicles, unmanned ground and aerial vehicles all linked by a variety of data links and systems. Its goal is to increase the speed, accuracy and response of the Army. Parts of it have been developed and deployed where they can in Afghanistan and Iraq. The current Stryker vehicle units are the interim step from the M1/M2 based units to the FCS. As it is the largest program in the Army consuming a few billion dollars a year and has risk it is obviously the place that Congress and the Obama administration is looking for cuts. Until the FY10 budget is released there will be this back-and-forth between the Army and other parts of the government as that service tries to preserve as much of the program as they can.
National Cancer Institue contracts for basic research
Filed under: Contract Awards, S&T, SAIC, development program, medicine
The National Cancer Institute contracted with SAIC to run the Federal Funded Research and Development Center (FFRDC) in Frederick, MD. The 3 year contract will allow SAIC to conduct basic research on cancer and HIV cures and treatments. While SAIC is known primarily for supporting the US military they have been doing this work for over 10 years.
See the press release at IT News Online.
It takes money to spend money
Filed under: Contract Awards, Department of Defense, SAIC, logistics
The Defense Finance and Accounting Service (DFAS) is the organization within DoD that actually pays the bills. Eventually every contract action will lead to DFAS sending money to the company doing the work. SAIC has won a contract to build software to train the DFAS employees on policies and regulations. See a story here.
SAIC does well on Iraq and Afghanistan
SAIC reported that their first quarter profits were up 25% over last year. See a story here. The company chose to highlight there contracts providing support to the various MRAPs deployed to Afghanistan and Iraq as part of the reason results were so good. Of interest is that the CEO, Mr. Dahlberg, complained of the fact that they cannot generate commercial growth to their satisfaction. This is often true of various large defense contractors. If there are significant decreases in the US defense budget in the future these companies may find it hard to sustain growth and profitability.
SAIC wins NBC defense contract
Filed under: Contract Awards, SAIC, SMDC, U.S. Army, logistics
The US Army’s Space and Missile Defense Command (SMDC) awarded SAIC a one year plus four option years contract to provide NBC defense for US military bases. See an article here. If the full contract is executed it could be worth up to $500 M. Since 9/11 the US has greatly increased the ability of their bases to respond to chemical and nuclear attacks.
SAIC wins Navy SETA contract
SAIC won a contract with Naval Surface Warfare Center (NSWC) Crane to provide SETA services. See the article here. It is a two year base contract with three option years. They received about $30 M for now, with the possibility if all options are exercised of getting $240 M in work. These kind of omnibus service contracts have become more common and are used to allow various program and project offices to buy the services the need.
Boeing led team begins work on JDRADM
Filed under: Boeing, Contract Awards, Military Aviation, SAIC, U.S. Air Force, development program
The Joint Dual Role Air Dominance Missile (JDRADM) is a development program by the US Air Force for the next generation air launched system that will be able to attack ground and air targets. According to this story, a Boeing led team has won the contract to develop fuzing and seeker technology as part of the program. It is only a $5.2 M contract but it will most likely lead to more work and ultimately production if the system successfully develops. For more on the JDRADM see this.
Some Analysis of SAIC’s Common Stock
As a recent GAO report highlighted the Department of Defense invests a great deal in Science, Engineering, Technical and Analysis (SETA) contracts. These contracts, and contractors, are most known as working with the military acquisition offices to provide necessary support. There are also SETA contracts with IT, testing, engineering, safety and pretty much any area that the DoD and Services are involved in. It is a large business employing thousands.
Boeing expands JLTV team
Boeing added SAIC and Ford to the team they have established to bid on the development contract for the JLTV. See an article here. The JLTV will replace the HUMVEE and other light tactical vehicles. Read more
Army gives SAIC contract for technical support
Filed under: Contract Awards, SAIC, SETA, U.S. Army, logistics
SAIC is one of the top ten defense contractors and provides engineering and technical services, not hardware. This press release discusses a $98 M contract from the Army to provide technical and analytical support to the US Army Medical Research and Material Command. This is a good example of such a contract. Most of the large military acquisition and support commands have these type of contracts. There are literally hundreds of companies large and small that provide that kind of work.
NASA Program Delayed Two Years Due to Conflict of Interest
This story from the AP on 21 December details how a NASA probe to Mars will be delayed two years due to a conflict between one of the two contractors proposing and the persons involved in the selection process. NASA has not released any details on who, or what, caused the conflict. This means the whole review and award process has to restart. Because Mars is only close to Earth every two years or so, the whole program is delayed from 2011 to 2013. To further add to the issue, SAIC was banned from participating in bidding on the contract as it’s personnel are involved in the review process. See MSNBC for the complete story.
SAIC Hires Two New Senior Security Executives
On 20 December, it was announced that SAIC hired two new executives who will be responsible for developing their homeland and cyber security businesses. Retired US Army Lieutenant General Joe DeFrancisco and former US Customs and Immigration Agency official Bill Carroll are to utilize their experience to “to provide awareness of our U.S. Army and Homeland Security customer priorities, trends, concerns and opportunities,” according to SAIC. The full story from UPI is here. Unlike other large defense corporations in the United States, SAIC provides science, analytical and engineering services rather then developing and producing hardware.



