SAIC Awarded Contract By Sandia National Laboratories — Press Release

Company to Provide Mission Information Technology Computing Services in Support of the Department of Energy

MCLEAN, Va., April 8, 2013 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) announced it was awarded a prime contract by Sandia National Laboratories to provide mission computing and information technology (IT) services in support of the Department of Energy (DoE). The single award, indefinite-delivery/indefinite-quantity (IDIQ) contract has five-year base period of performance, one two-year option, and a total contract value of approximately $228 million, if the option is exercised. Work will be performed primarily in Albuquerque, N.M. and Livermore, Calif.

Sandia National Laboratories mainly supports the DoE’s National Nuclear Security Administration by delivering science and technology support to solve national security issues. SAIC was awarded one of three contracts that consolidate IT services for Sandia. Under the contract, SAIC will provide mission-specific IT research, development, and integration of capabilities while maintaining high-performance and central hosting computing, desktop services and cybersecurity.

“SAIC will work closely with Sandia to streamline and integrate their IT services,” said Dan Harris, senior vice president and business unit general manager. “We have been providing services to Sandia for more than 30 years and we look forward to continuing our support of their mission.”

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 40,000 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 approximately $11.2 billion for its fiscal year ended January 31, 2013. 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, 2013, 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.

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Raytheon’s 5th generation hull mounted sonar to enable anti-submarine, undersea warfare — Press Release

Applies underwater sensing expertise to DARPA’s unmanned vessel program

TEWKSBURY, Mass., March 12, 2013 /PRNewswire/ — Raytheon Company (NYSE: RTN) was awarded a sub-contract from Science Applications International Corporation (SAIC) to deliver its first 5th generation medium frequency hull mounted sonar system as part of the Defense Advanced Research Projects Agency (DARPA) Anti-Submarine Warfare Continuous Trail Unmanned Vessel (ACTUV) program.

According to the U.S. Navy, 43 nations operate more than 600 submarines; the steady increase in undersea vessels makes tracking a challenge. Raytheon’s Modular Scalable Sonar System (MS3) will integrate into SAIC’s prototype trimaran vessel as the primary search and detection sonar. The system is designed to provide search, detection, passive-threat filtering, localization and tracking capabilities without requiring human operation.

MS3 enables anti-submarine warfare (ASW) and undersea warfare with capabilities such as active and passive search, torpedo detection and alertment, and small object avoidance. Data from multiple sonars may be fed to a central command and control node, providing a common operating picture as part of the ASW mission. By integrating a host of capabilities in a single sonar system, Raytheon delivers an affordable solution that addresses critical naval challenges.

“Historically, manned sonars were central to anti-submarine warfare missions. However, the growing number of submarines traversing the world’s oceans makes this model unsustainable,” said Joe Biondi, vice president of Advanced Technology for Raytheon’s Integrated Defense Systems business. “By leveraging Raytheon’s heritage in developing undersea sensors, MS3 can be configured to provide the capabilities required for ASW in an autonomous environment.”

About Raytheon

Raytheon Company, with 2012 sales of $24 billion and 68,000 employees worldwide, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 91 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @raytheon.

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Ground Combat Vehicle Decision to be Delayed

3286900481_fe603c77a6_mIt is being reported that the Army has decided to delay the Ground Combat Vehicle (GCV) six months. This is being done most likely in response to the current budgetary situation with the potential sequestration cuts.

The Defense Department has done a good job awarding current contract options this past few months to get things on contract to limit the effects of sequestration on existing work. Unfortunately new contracts will be affected as there may not be as much money available to award later this year. GCV may be in that situation. Delaying it several months should get you into Fiscal Year 2014 with a better handle on what money you have and allow the budget to prioritize funding.

Sequestration may force across the board cuts in all defense appropriations and limit the ability of new, large contracts to be awarded for the remainder of this Fiscal Year.

Two teams of contractors were awarded development contracts by the Army for the M2 Bradley replacement in 2011. One of those designs will be selected to go into Engineering, Manufacturing & Development (EMD) and ultimately into full production. This may still be several years into the future. These were to General Dynamics (GD) and to a team of BAE Systems and Northrop Grumman (NOC). The bid by the 2 prime contractors on the cancelled Future Combat System (FCS) the last attempt to build a Bradley replacement, Boeing (BA) and SAIC (SAIC), was not accepted.

Photo from UNC -CFC-USFK’s flickr photostream.

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SAIC Awarded $433 Million Task Order By U.S. General Services Administration — Press Release

November 20, 2012 by · Comment
Filed under: Business Line, Companies, Events, IT, logistics, Press Releases, SAIC 

Company to Provide Enterprise Information Technology Services in Support of the U.S. Central Command

MCLEAN, Va., Nov. 20, 2012 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has been awarded a prime contract by the U.S. General Services Administration (GSA) to provide enterprise information technology (IT) support to the U.S. Central Command’s (USCENTCOM) Directorate of Command, Control, Communications and Computers. The cost-plus award-fee (CPAF) task order has a one-year base period of performance, four one-year options, and a total contract value of $433 million, if all options are exercised. Work will be performed primarily in Tampa, Fla. The task order was awarded under the GSA Alliant Government-wide Acquisition Contract by the Federal Systems Integration and Management Center (FEDSIM).

USCENTCOM promotes cooperation among nations, responds to crises, deters or defeats state and non-state aggression, and supports development and reconstruction to establish the conditions for regional security, stability and prosperity. Under the task order, SAIC will provide IT services, including command, control, communications, and computer (C4) systems support, theater network operations, engineering, cybersecurity, programs and architectures, and resource management.

“We are pleased to have the opportunity to continue providing our quality services and expertise to USCENTCOM,” said Dan Harris, SAIC senior vice president and business unit general manager. “We look forward to using our technical knowledge and unique communications and managerial capabilities to provide warfighters the C4 support they need to achieve mission success.”

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 40,000 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 approximately $10.6 billion for its fiscal year ended January 31, 2012. For more information, visit http://www.saic.com/. SAIC: From Science to Solutions®
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SAIC (SAI) Wins Contract to Support Japanese Mine Warfare Efforts

EH101 operated by the Italian Navy.

SAIC (SAI) has been awarded a contract by the Japanese Maritime Self-Defense Force (JMSDF) to provide software system to aid in sea mine clearance operations. The JSMDF contract did not have a value reported but is related to the purchase of the Mine Warfare and Environmental Decision Aids Library(MEDAL) system along with training support.

The JMSDF operates Augusta westland AW101 helicopters for this mission. The varient they use is referred to as the MCH-101.

MEDAL provides a system to design mine clearance missions as well as evaluation and training support. It contains data on water depth, bottom characteristics, current as well as seawater physical properties. A discussion of MEDAL may be found in this paper from the Commission on Geosciences, Environment and Resources.

The Japanese has equipped their MCH-101 with a set of sensors to support mine warfare including side scan sonar, laser detection and acoustic minesweepers. Under the agreement with AW the aircraft are assembled in Japan and major components are manufactured there. Japan as a maritime nation does face a mine warfare threat as demonstrated by the U.S. in 1944-1945 with an aerial mining program.

Photo courtesy of Jerry Gunner’s flickr photostream.

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SAIC Awarded $152 Million Task Order By U.S. Army Aviation and Missile Life Cycle Management Command (AMCOM) — Press Release

October 19, 2012 by · Comment
Filed under: Business Line, Companies, Events, IT, logistics, Press Releases, SAIC 

Company to Provide Information Technology Support Services to AMCOM and Tenants of Redstone Arsenal

MCLEAN, Va., Oct. 18, 2012 /PRNewswire/ — Science Applications International Corporation (SAIC) [NYSE: SAI] announced today it was awarded a task order by the U.S. Army Aviation and Missile Life Cycle Management Command (AMCOM) to provide information technology (IT) support services to AMCOM and tenants at Redstone Arsenal. The task order has a thirty seven month period of performance and a total contract value of approximately $152 million. The task order was awarded under the Information Technology Enterprise Solutions-2 contract vehicle. Work will be performed primarily in Huntsville, Ala.

AMCOM provides and sustains world-class aviation and missile systems to the joint warfighter, supporting national security and defense strategies today and in the future. Under the contract, SAIC will provide IT support services, including: enterprise design, integration, and consolidation; IT education and training; IT program and project management; systems operations and maintenance; network support; and embedded information systems security and information assurance. Work will include systems analysis, systems design, systems development, application/systems administration, programming, software development, IT operations, and configuration management and communications.

“We look forward to providing AMCOM with life-cycle information technology support services and efficient support process to ensure mission success,” said Glenn San Giacomo, 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 40,000 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 approximately $10.6 billion for its fiscal year ended January 31, 2012. For more information, visit http://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, 2012, 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.

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SAIC Awarded Contract by Naval Health Research Center — Press Release

October 15, 2012 by · Comment
Filed under: Business Line, Companies, IT, logistics, medicine, SAIC 

Company to Provide Research and Development Support Services to the Warfighter Performance Department

MCLEAN, Va., Oct. 15, 2012 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) announced today it was awarded a prime contract by the Naval Health Research Center (NHRC) to provide research and development support services to the NHRC Warfighter Performance department. The single-award cost-plus fixed-fee (CPFF) contract has a one-year base period of performance, four one-year options and a total contract value of approximately $24 million, if all options are exercised. Work will be performed primarily in San Diego, Calif.

The NHRC Warfighter Performance department conducts research related to the measurement, maintenance, restoration, enhancement, and modeling of human performance in military operational environments. Under the contract, SAIC will provide research and development support services specifically in aspects of human performance, physiology and psychology investigative studies that involve planning, coordinating, designing, and executing experimental protocols that meet with the overall mission of the research objectives. Work will include the study and development of new strategies for enhancing human performance, including: load carriage impact on injury and performance; thermoregulation as it relates to prevention of heat illness and return to duty from a heat injury; exposure to cold temperature and cold water operations; operations performed at altitude; surveillance markers of Traumatic Brain Injury (TBI) relative to biomechanics and cognitive function; definition of patterns of resiliency to physical and psychological injury; enhance training strategies to improve post deployment behavioral health outcomes; and establish return-to-duty criteria for wounded service members.

“We are pleased to continue supporting the Naval Health Research Center and providing the scientific and technical expertise to help ensure our military personnel are ready for duty, and can perform at the highest levels – both physically and psychologically,” said Steve Comber, 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 40,000 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 approximately $10.6 billion for its fiscal year ended January 31, 2012. For more information, visit http://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, 2012, 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.

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SAIC’s Break Up to Add Value — Seeking Alpha

Here is an exclusive article I wrote for Seeking Alpha discussing the plan to breakup SAIC (SAI).

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SAIC Expands Healthcare IT Business Line – Seeking Alpha

Here is an article I wrote for Seeking Alpha about SIAC’s recent acquisition of a healthcare IT business.

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SAIC To Acquire maxIT Healthcare — Press Release

Company Adds Leading Healthcare IT Consulting Firm To Health Solutions Business, Bolstering Growth Plans In Commercial Healthcare Market

MCLEAN, Va., July 17, 2012 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has entered into a definitive agreement to acquire maxIT Healthcare Holdings, Inc., a leading healthcare IT (Information Technology) consulting firm based in Westfield, Ind.

maxIT Healthcare, the largest private independent healthcare IT consulting company in North America, provides a comprehensive range of healthcare IT services and solutions primarily to commercial hospital groups and other medical delivery organizations. These include IT strategy and planning, electronic health record (EHR) implementation and optimization, and management consulting across a broad range of activities such as accountable care transformation, revenue cycle improvement, and support in meeting the U.S. Government’s meaningful use requirements necessary to obtain incentive payments from the government in connection with implementing EHR capability.

maxIT Healthcare has an extensive commercial customer base and has served more than 600 hospitals, hospital groups, physician practices and accountable care organizations (ACOs) in the U.S. and Canada. The company’s established expertise and knowledge within commercial hospitals and ambulatory clinics, as well as its exceptional reputation, will be combined with SAIC’s Vitalize Consulting Solutions (VCS) team, which SAIC acquired in 2011, bringing together some of the best consultants in the commercial healthcare industry. This combination creates the nation’s largest commercial consulting practice in EHR implementation and optimization services and enables the combined operations to better serve healthcare providers by helping them achieve their universal objectives – reduced healthcare costs, effective use of data to make more informed decisions, and improved patient care.

The combination of maxIT Healthcare with VCS also strengthens SAIC’s capabilities to provide EHR implementation and integration services to its strong base of Federal healthcare customers as they increasingly migrate toward the incorporation of commercial off the shelf (COTS) EHR applications. As both commercial and Federal healthcare providers begin to fully extract value from their EHR solutions, SAIC is well positioned to leverage its service offerings in systems integration and interoperability, health sciences and advanced data analytics to assist providers in realizing the promise of personalization in delivering value based healthcare.

As a result of the acquisition, approximately 1,300 employees from maxIT Healthcare will join SAIC’s Health Solutions Business Unit (HSBU), led by Steve Comber. HSBU is a part of the Health, Energy and Civil Solutions Group, led by SAIC Group President Joe Craver.

“The maxIT Healthcare team brings significant capabilities and talent to SAIC, as well as an outstanding reputation with its customers for providing the highest level of service,” said Craver. “Combined with our acquisition of VCS, this deal enhances SAIC’s capabilities to address the nation’s challenge of rising healthcare costs, access to quality care, and the need to improve patient outcomes.”

“The combined strengths of maxIT, SAIC and VCS will be a significant differentiator in the healthcare IT market. We look forward to continued growth as part of the SAIC team, while maintaining flexibility to meet the ever-changing needs of the healthcare market,” said Mike Sweeney, president and CEO of maxIT Healthcare.

Parker Hinshaw, maxIT Healthcare founder, added, “We share so much already with the SAIC team – high ethical values and culture, financially sound business practices, and most importantly, our passion for making a significant difference in one of the most important industries in the world, healthcare.”

The acquisition is expected to close in August 2012, subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. At closing, SAIC will pay approximately $473 million, subject to adjustment, from cash on hand to acquire maxIT Healthcare. In addition, SAIC expects to pay up to $20 million to maxIT Healthcare shareholders after receipt of certain tax refunds following closing.
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Lockheed Martin (LMT) Wins GIG Contracts, SAIC (SAIC) Protests

The U.S. Department of Defense operates the Global Information Grid (GIG) as a way to link its various communications and sensor systems together to ensure that information is processed and distributed as necessary. Most of the different systems the Services buy interface with the GIG one way or another either through radios, data links or networks. The goal of the GIG is to get the right information to the right person in order to support decision making and actions.

The GIG is managed by DoD and relies on a large contract to carry out these functions. Recently Lockheed Martin (LMT) was awarded this contract. It has an initial value of about $1.9 billion but the potential to grow to $4.6 billion if all options are exercised over its seven year life. The contract is an Indefinite Delivery/Indefinite Quantity (ID/IQ) type which means that the government places orders for products as needed. Normally ID/IQ contracts do not necessarily guarantee any work will be done but it can be expected with the size and importance of this contract Lockheed will get a great deal of orders from it.

SAIC (SAIC) was the losing bidder and they have moved to protest the award to Lockheed. SAIC is the incumbent for the contract and the loss of a contract this size is an issue for the company especially considering the potential budgetary issues facing the Defense Department next year.

If budget cuts do materialize and companies see much less contracts protests based on history will only increase. The different defense contractors will be fighting over a smaller pool of work so competition will be even more contentious. Normally protests have to be resolved in 100 days and contracts are placed on hold while this is being done. This means that SAIC will keep their current contract until the protest is over. Potential results could be a new competition, a reaffirmation of Lockheed or on rare cases a decision to award the contract to the protester.

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McLane Team Awarded Contract by U.S. Army — Press Release

TEMPLE, Texas, April 23, 2012 /PRNewswire/ — McLane Advanced Technologies (MAT) announced today that as the subcontractor to SAIC, the company was recently awarded a contract by the Software Engineering Center (SEC-Lee) for Property Book Unit Supply Enhanced (PBUSE). PBUSE is the Army’s web-based, state-of-the-art, property accountability system. The team will provide professional and technical services to include sustainment support, software development for product enhancements, help desk support, fielding, and training.

“We are excited that we are part of the SAIC Team on this contract and look forward to working with SAIC and SEC-Lee in this important endeavor,” said James Chambers, Executive Vice President for MAT. “SAIC and MAT have worked together for several years and this collaboration fortifies the relationship. We are especially honored to continue our support to the Soldier by assisting materiel readiness for the US Army through both SAMS-E and PBUSE.”

SAIC was awarded the PBUSE contract in February 2012 and subsequently awarded a sub-contract to MAT in February 2012. MAT’s period of performance is for two years and includes a number of PBUSE IT specialties to meet the customer’s requirements.

About McLane Advanced Technologies
McLane Advanced Technologies is a global logistics and technology solutions company built upon a bedrock of over 100 years of global supply chain, warehouse, distribution, and technology experience. Utilizing our rich history, we have grown into a recognized technology leader in the Distribution and Defense industries. For more information, please visit our website at www.mclaneat.com or call 254-771-6429.

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 & environment, health, and cybersecurity. The company’s approximately 41,000 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 approximately $10.6 billion for its fiscal year ended January 31, 2012. For more information, visit http://www.saic.com/. SAIC: From Science to Solutions®

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Insourcing, Outsourcing: SAIC Wins OSD Support Contract

As the debate about eliminating contractor jobs in the Defense Department and insourcing those positions continues the Defense Department and Services continue to award support contracts. SAIC (SAI) the latest contractor to benefit by winning a large award to support the Assistant Secretary of Defense for Nuclear, Chemical and Biological Defense (OASD(NCB)).

The contract has one base year and four options years and could be worth up to $95 million if all options are exercised. SAIC, one of the largest defense contractors in the U.S., will provide professional, technical, analytical and executive services through the contract.

The OASD(NCB)’s office is chartered with “Drive the capability to prevent, protect against, and respond to weapons of mass destruction threats” and provide “A world safe from nuclear, chemical, and biological threats” as part of the Office of Secretary of Defense. Under it are offices for Chemical and Biological Defense, the Defense Threat Reduction Agency, Nuclear Matters and Threat Reduction and Arms Control. The current office was created in 2011.

As with all such offices throughout DoD and the different Services and Agencies they still rely on contractor support in different areas. These include direct office and mission support. The goal of insourcing was to reduce these positions by making sure that any “inherently government work” was being done by a civil servant and not a contractor. There have been disputes among the government, unions and contractors as what jobs should be insourced and how much work is being taken away from private industry. There have also been arguments about who is cheaper, civil servants or contractors, and various politicians weighing in on both sides.

The fact that these types of contracts are still being awarded is a good sign for the industry and SAIC especially. SAIC is one of the larger defense contractors with projected revenues of $10 billion or more in 2012 and it does this primarily by providing services rather then manufacturing large, defense systems. As the Defense Department reduces contracts and positions it might hit SAIC hard although they have shown the ability to win some major contracts.

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NAVISTAR DEFENSE, INDIGEN ARMOR AND SAIC TEAM FOR SOCOM GROUND MOBILITY VEHICLE PROGRAM — Press Release

NAVISTAR DEFENSE, INDIGEN ARMOR AND SAIC TEAM FOR SOCOM GROUND MOBILITY VEHICLE PROGRAM

Lisle, Ill. (February 8, 2012) Navistar Defense, LLC, Indigen Armor and SAIC today announced they will team for the upcoming U.S. Special Operations Command (SOCOM) Ground Mobility Vehicle 1.1 (GMV 1.1) program.

The GMV 1.1 program requires a highly mobile, roll-off mission-ready platform that is transportable on a CH-47 helicopter. To support Special Operations (Specops) missions, each vehicle will be integrated with a full government furnished Command, Control, Communications,
Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) suite.

“We are eager to team with Indigen Armor and SAIC to provide U.S. Special Operations forces with an off-road truck that possesses unprecedented mobility and is designed to be an affordable solution throughout its lifecycle,” said Archie Massicotte, president of Navistar Defense. “Navistar brings world-class truck and engine integration capabilities to the table and with our partners we will be able to provide quick-to-market products to support the needs of Special Operators.”

“As a company founded by special operations personnel to design vehicles for special operations personnel, Indigen Armor is excited to add to the subject matter expertise of Navistar and SAIC to provide the finest solution for SOCOM’s GMV 1.1 requirement,” said John Choate, president of Indigen Armor and former Navy SEAL. “This team establishes a robust alliance that combines proven expertise in meeting Specops mobility requirements, automotive design and manufacturing, C4ISR integration, logistics support and contract management.”

Under the teaming agreements, Navistar will serve as the prime contractor for the GMV 1.1 program. Navistar and Indigen Armor will combine their automotive and Special Operations expertise with SAIC’s skill in C4ISR technologies and its ability to field and provide integrated logistics support.

“This team understands SOCOM’s mission requirements and has worked well together supporting them in recent years,” said Glenn San Giacomo, SAIC senior vice president and business unit general manager. “These experiences will help us as we design, field and sustain an exceptional vehicle that has full life-cycle efficiencies designed in from the start.”

The program currently calls for the production of about 200 units per year for up to five years.  A request for proposals is expected in late February 2012, with production awards expected in early January 2014.

About Navistar

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco® RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.

About Indigen Armor

Indigen Armor was conceived by special operations personnel while serving in a volatile combat zone in 2004.  Acquired by J.F. Lehman & Company private equity firm in 2009, the company continues to be run by military veterans with extensive Special Operations backgrounds that focus on the design and development of Specops mobility platforms.  The company has a growing staff of professionals housed in a 267,000 square foot, state-of-the-art prototyping and manufacturing facility. For more information, visit www.indigenarmor.com.

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 & environment, health, and cybersecurity. The company’s approximately 41,000 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 approximately $11 billion for its fiscal year ended January 31, 2011. For more information, visit http://www.saic.com. SAIC: From Science to Solutions®.

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SAIC to Support Homeland Security Move

Just like the Department of Defense has gone through with its several Base Realignment and Closure (BRAC) rounds the Department of Homeland Security (DHS) is also moving. This time after a decade in existence to a new, permanent headquarters in the Washington D.C. area. Currently the DHS is in several different buildings scattered around the capital. The DHS move to the two new complexes of buildings will take several months, involve 22 agencies and requires millions of dollars in support.

SAIC (SAIC) has been able to earn a sub-contract from the prime supporting the move, General Dynamics (GD), worth over $90 million. This would be if all seven option years are exercised. The contract will help in establishing the necessary IT infrastructure for the complex.

The BRAC moves allowed niche contractors to gain a great deal of business in construction, IT support and physically accounting for and moving equipment. GD and SAIC will be doing the same for the DHS.

GD total contract has a value that could reach almost $900 million.

The SAIC IT contract also has the potential to lead to bigger and better contracts providing IT and other support after the move is complete and the DHS settled in it’s new headquarters.

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SAIC Qualifies for MDA Contract but Has Tough Road Ahead

The Missile Defense Agency (MDA) announced that SAIC (SAIC) was one of the companies who qualified for a recent Indefinite Delivery / Indefinite Quantity (ID/IQ) science and technical service support contract. This is a five year contract and the Agency expects to award close to $300 million in tasks under it.

By qualifying it gives the right to SAIC to bid on any tasks issued under the contract against the other four companies. As with all ID/IQ contracts the government does not guarantee that any work will be awarded and that all qualifiers will receive it. Depending on the task and its requirements, though, one of the companies is probably more qualified then the others and has a better chance of winning it.

This type of work has been SAIC’s bread-and-butter for years. It is one of the largest defense contractors in terms of annual contract awards. In 2010 it was ranked fifth with over $5 billion in awards by Washington Technology. It has also branched out teaming with Boeing (BA) on the lead of the Army’s formerly new vehicle program now cancelled Future Combat System (FCS).

It also teamed with Boeing on the Army’s replacement program, the Ground Combat Vehicle (GCV), but was not awarded a contract. The two companies have since protested that decision. If the protest is upheld and a contract is awarded to them that would potentially be billions worth of business in developing, building and supporting the new armored vehicle.

In the last quarter SAIC saw a decline of about six percent in revenues and called the results “disappointing”. The company blamed the lack of new contracts as well as the overall situation with the defense industry at this time. Cuts to the defense budget may seriously affect the traditional business areas of SAIC.

Like all other defense contractors they are looking at new and different markets such as health care to provide offsets to these potential cuts. SAIC is supporting non-traditional energy production which has potential in the future as the world turns away from coal and oil based energy sources.

This also may be a blip as the company does win some new work and contracts. Overall though it should be expected that as the market declines with cuts in spending and the return of troops from Afghanistan and Iraq that more quarters like this may be in the future. The defense industry may be flat and have to become more creative. As such stock prices and valuations also may be flat or decline.

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Reports SAIC and Boeing Protest Recent GCV Contract Awards

Less then two weeks ago the U.S. Army awarded two contracts for the next phase of development for their new Ground Combat Vehicle (GCV) system. This will be a replacement for the current M2 Bradley Infantry Fighting Vehicle (IFV) family of vehicles originally developed in the Eighties. GCV is also the program created after the Army cancelled the Future Combat System (FCS) family of vehicles which was going to replace the M1 Abrams / M2 in service.

Teams led by General Dynamics (GD) and BAE Systems (BAE:LSE) were selected to begin production of prototype vehicles in order to have a contest between them to see who would go on to final Engineering, Manufacturing, & Development (EMD) and then into full scale production. Each team received a contract worth a little over $400 million for this phase.

The GCV program could ultimately be worth billions over the next thirty years through production, sustainment and modification and is now one of the largest new programs the U.S. Defense Department is considering.

It is now being reported that SAIC and Boeing are protesting the decision to not award them one of the contracts. They are supposedly claiming that the Army did not apply their evaluation criteria correctly and possibly had a bias against the proposed solution as it utilizes a German vehicle as it basis.

The Government Accountability Office (GAO) will consider the protest and usually rules within 100 days. While the protest is being decided the Army must stop work on the awarded contracts. The GAO may find that the protest is unsubstantiated or uphold it. In that case the Army may have to review its source selection process, conduct a new contest or even release a new Request for Proposals (RFP) and start over.

Based on the last time the U.S. defense industry faced cuts in the Nineties more protests may be expected as the available contractors fight over fewer contractors. Each contract becomes more important and it can be expected that there will be more pressure to win them. The number of large programs, too, is going to decline as the U.S. invests less in new systems and focuses on production of existing ones.

The lead contractors on FCS, Boeing (BA) and SAIC (SAIC), also submitted a proposal but were not selected.

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SAIC Winning Contracts for Physical Security

The United States military and government needs to protect a variety of sites in Afghanistan in Iraq. These include embassy facilities, administrative sites, airbases, forward posts as well as resupply points. They have heavily invested in physical security systems including traditional items such as fortifications, x-ray systems for vehicles, as well as more high tech surveillance systems. One company that has a foothold in that market is defense contractor SAIC (SAI).

SAIC has recently been awarded multiple contracts dealing with security both to provide it and to develop new systems and methods. These have not only been for use in overseas locations but also in the United States as the U.S. has also worked on enhancing the security of their facilities here.

Earlier this week the Army gave SAIC a contract modification to continue to provide maintenance and sustainment of vehicle and cargo inspection equipment. This is worth about $44 million and work will take place not only in the U.S. but also Afghanistan and Iraq.

The Army also awarded under an existing contract a modification to purchase two complete “outpost surveillance and force protection systems”. This is an $8 million contract and no locations of the installation sites were provided.

The Air Force also purchased physical security system from SAIC. This will be installed at Tinker Air Force Base in Oklahoma. SAIC is part of that service’s Electronic Systems Center’s Force Protection Security System (FPS2) contract. Under the award SAIC will also provide one years logistical support for the system.

Finally, a SAIC subsidiary, Science, Engineering and Technology Corporation (SET), a contract to purchase a portable system that could detect “suicide bombers” at a distance. That contract is worth over $48 million. The system detects potential bombers and then uses radar to analyze the target looking for returns that might indicate explosives. Over 40 of the systems have already been deployed.

The United States spends a great deal of money on protecting its personnel and assets. SAIC has obviously found work in that market sector. As long as the U.S. is involved overseas and there is a terrorist threat in the U.S. this kind of work will exist and funding will be available for these efforts. SAIC will continue to benefit from that.

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SAIC Awarded $53 Million Contract to Support the TRICARE® Military Health System — Press Release

SAIC Awarded $53 Million Contract to Support the TRICARE® Military Health System

Company to Provide Information Technology Services and Electronic Health Record Systems Support

MCLEAN, Va., May 19, 2011 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) announced today it was awarded a prime contract by the Department of Defense to provide information technology (IT) services and electronic health record systems support to the TRICARE® Management Activity Military Health System (MHS). The contract has a one-year base period of performance, three one-year options, and a total value of $53 million if all options are exercised. Work will be performed in Falls Church, Va. and San Diego, Calif.

MHS manages the TRICARE® health care program for more than nine million active duty, National Guard and Reserve, retired service members, their families and beneficiaries. Under the contract, SAIC will provide IT services as required, to improve the current electronic health record (EHR) by addressing existing technical and functional EHR challenges. The services include the necessary fixes to the legacy EHR systems and architecture so that the EHR capability will be more reliable, stable, user friendly and perform with adequate speed. The contract also provides for the new capabilities that need to be implemented in support of the Captain James A. Lovell Federal Health Care Center in North Chicago.

“SAIC is pleased to continue providing critical support to assist MHS in enhancing the agency’s health care information management system,” said Steve Comber, SAIC senior vice president and business unit general manager. “We look forward to modernizing the current suite of EHR applications, and helping sustain clinical systems that support the highest quality of care-giving to our military men and women and their family members.”

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 43,000 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 $11.1 billion for its fiscal year ended January 31, 2011. For more information, visit www.saic.com. SAIC: From Science to Solutions®
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SAIC Awarded $90 Million Task Order by the Defense Information Systems Agency (DISA)

SAIC Awarded $90 Million Task Order by the Defense Information Systems Agency (DISA)

Company to Provide Technical and Operations Support to the Defense Enterprise Computing Center (DECC) in Montgomery, Ala.

MCLEAN, Va., May 5, 2011 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has been awarded a task order by the Defense Information Systems Agency (DISA) to provide technical and operations support to the Defense Enterprise Computing Center (DECC) in Montgomery, Ala. The task order has a one-year base period of performance, four one-year options and a total value of more than $90 million, if all options are exercised. The task order was awarded under the DISA ENCORE II indefinite delivery/indefinite quantity contract.

DECC Montgomery, as part of DISA’s Computing Services Directorate, provides world-class processing capability, systems management, communications and storage in support of Department of Defense services, agencies, and combatant commands. Under the task order, SAIC will help sustain the production, development, and testing of DISA systems in the agency’s complex IT environment, which supports 1,250,000 users worldwide. SAIC will also provide services in areas including service operations; technical support; information assurance; facilities; and support for the Armed Forces Health Longitudinal Technology Application (AHLTA).

“SAIC has been working with DISA for 17 years, and we are pleased to expand our relationship by providing quality computing support to DECC Montgomery,” said Glenn San Giacomo, SAIC senior vice president and business unit general manager. “We look forward to applying our IT service management framework expertise, and helping meet DECC’s technology and customer requirements.”

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 43,000 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 $11.1 billion for its fiscal year ended January 31, 2011. For more information, visit www.saic.com. SAIC: From Science to Solutions®
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U.S. General Services Administration Awards SAIC $208 Million Task for U.S. Department of Agriculture Support — Press Release

U.S. General Services Administration Awards SAIC $208 Million Task for U.S. Department of Agriculture Support

Company to Provide Mission Support Information Technology Services

PR Newswire

MCLEAN, Va., March 8, 2011

MCLEAN, Va., March 8, 2011 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it was awarded a prime task to provide mission support information technology (IT) services in support of the U.S. Department of Agriculture (USDA) Risk Management Agency (RMA). The task order, competitively awarded under the GSA Alliant contract by the U.S. General Services Administration Federal Systems Integration and Management Center (FEDSIM), has a one year base period of performance, four one-year options and a total value of $208 million if all options are exercised. Work will be performed primarily in Kansas City, Mo. and Washington, D.C.

The USDA RMA helps producers manage their business risks through market-based risk management solutions. Under the task order, SAIC will provide mission support IT services including: program and project management support; critical infrastructure support; information assurance; end-user support; enterprise architecture; capitol planning and investment control; configuration and change management; and applications maintenance and development.

“SAIC has demonstrated sound technology advancements to the USDA in support of American agricultural producers for more than a decade,” said John Thomas, SAIC senior vice president and business unit general manager. “We look forward to continuing to work with the USDA RMA to promote, support and regulate sound risk management solutions to ensure the nation’s security and preserve the economic stability of America’s agricultural producers.”

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 43,000 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 $10.8 billion for its fiscal year ended January 31, 2010. For more information, visit www.saic.com. SAIC: From Science to Solutions®
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Boeing’s FCS Spin-offs Faces Struggles

The U.S. Army’s Future Combat System (FCS) was to be their next family of battlefield vehicles as well as different communication and data link systems supported by unmanned ground and aerial vehicles. It would ultimately replace the current M1/M2 heavy armored team in use since the Eighties. The program was led by a team of Boeing (BA) and SAIC (SAIC).

When the new Obama administration came in in 2008 one of its defense reforms led by Secretary of Defense Robert Gates was to cancel the program. This was due to cost and schedule issues and the fact that the requirements did not reflect the current combat conditions in Iraq and Afghanistan. While the main program was canceled some of its components were continued including Boeing’s Network Integration Kit.

This system is a data link used to connect vehicles within the brigade to aid them in monitoring the tactical situation. One of the key parts of FCS was to use advanced communications and C4ISR systems to improve battlefield knowledge and the Kit was a component of that.

Unfortunately the Defense Department has released results of recent testing of the Kit and it has not performed as well as they hoped. Although to be fair to Boeing and the Project Office the testing is early in the program and finding out issues like this is why testing is done.

The systems tested cost on average close to $1 million a vehicle kit and each brigade is supposed to get 81 of them. The price goal is less then half that. The testing will be part of the consideration of the Pentagon’s Defense Acquisition Board (DAB) as it meets to consider continuing the program.

Boeing is continuing development of the NIK and is currently building systems to equip one brigade. The Army is deciding whether to begin production of the two more sets for another two brigades.

In the current budgetary situation where the Pentagon is being squeezed to reduce funding programs that are having cost, schedule or performance issues may be easy targets to get cut. At the same time as with the EFV there remains requirements for these programs and ending this attempt may just be one step on to starting up another one.

If the NIK is canceled then the Army and Boeing will have little left to show for all of the time, effort and money spend on FCS.

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Army Releases New GCV RFP

One of the first reforms that the Obama Administration did with defense spending was to cancel the Army’s Future Combat Systems (FCS). This was a series of different programs developing new ground vehicles, unmanned vehicles and data links to replace the current M1 Abrams Tank / M2 Bradley IFV heavy armor team that entered service in the 1980’s. The FCS was suffering from cost and schedule issues and the basic requirements had been defined in the Nineties and were considered not representative of the current fighting in Iraq and Afghanistan.

The Army does though need to build new vehicles to replace these aging systems so different programs were started. The M2 replacement is the Ground Combat Vehicle (GCV) and a RFP was released two years ago with industry proposals being received this past Summer. Different teams of contractors submitted proposals and as had been done successfully with the new HUMVEE replacement, Joint Light Tactical Vehicle (JLTV), and the MRAP ATV the Army was going to award multiple contracts to develop systems and have a drive off to reach a down select.

Unfortunately due to the armor and protection requirements the proposed vehicles were all large and very heavy. The cost was also extreme. This led the Army to end the program activity at that time while they rethought requirements. Originally the new RFP was to have been released in October but was not.

Yesterday the Army did release their new request to support the development part of the program. Again they plan to award multiple contracts for development of different vehicles and this phase is valued at about $1.3 billion.

It will be interesting to see if any of the former teams submit proposals this time but the fact that several different teams including big companies such as Boeing (BA), Northrop Grumman (NOC) and BAE Systems (BAE:LSE) proposed last time probably means they will again.

The new proposal is based around Fixed Price Incentive Fee (FFPIF) contracts for the development which is an attempt by the Pentagon to control cost. This though makes development risky for the contractors as they must absorb costs beyond a certain point and that is why Fixed Price contracts are not traditionally used for development.

The Army is hoping that the proposed systems will be based on existing technology and this will aid in keeping the costs down. Whether there are systems right now that meet the maneuverability and protection requirements in the day of the IED threat as well as advanced direct fire weapons remains to be seen. That is why the originally proposed vehicles were so large and heavy.

The program is one of the major acquisitions coming down the pipe so it will be attractive to companies due to its size and total value. If the Army executes a plan to buy almost two thousand of the systems then it would have a value of close to $20 billion not taking into account sustainment and modification programs over the expected thirty year life of the system.

It will be a challenging program for the winner.

Photo from the UNC-CFC-USFK Flickr photostream.

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Aerojet Technology Successfully Flight Tested to Replace Dual Purpose Conventional Munition Submunitions — Press Release

Aerojet Technology Successfully Flight Tested to Replace Dual Purpose Conventional Munition Submunitions

SACRAMENTO, Calif., Oct. 19 /PRNewswire-FirstCall/ — Aerojet, a GenCorp (NYSE: GY) company, recently demonstrated its alternative warhead technologies in a tactical missile flight environment. The successful demonstrations were conducted to test Aerojet’s solution to eliminate unexploded ordnance (UXO) on the U.S. Army’s Guided Multiple Launch Rocket System (GMLRS). The three-mission, missile-launched warhead tests were the first live-fire, missile-delivered performance tests conducted by the U.S. Army at White Sands Missile Range in New Mexico for the GMLRS Alternative Warhead Program (AWP).

Each flight-tested warhead employed a high-reliability inventory fuze to virtually eliminate the chance of leaving unexploded ordnance, a key U.S. Army requirement. The GMLRS AWP program will ultimately field a new warhead replacing the submunitions in the GMLRS Dual Purpose Improved Conventional Munition (DPICM) warhead. The U.S. and other governments have agreed to ban these submunition warheads which may leave dangerous unexploded ordnance.

The flight tests were the culmination of an intense 11-month development in which Aerojet’s new technology was validated to deliver its effectiveness while surviving all missile launch and flight conditions. Next summer, the U.S. Army plans to select the production alternative warhead supplier after evaluating these test results together with program and manufacturing cost proposals.

Vice President and Deputy to the President, Dick Bregard, said, “This new technology offers unprecedented precision in controlling the warhead’s lethal effects, and represents a cost-effective method to take full advantage of the GMLRS missiles’ precision-guidance capabilities. Thus, warfighters can engage and neutralize targets using fewer missiles while reducing the possibility of collateral damage and UXO on the battlefield.”

Aerojet’s technology is based on a partnership among multiple sites. The program management, design and engineering analysis was performed at the company’s Sacramento corporate headquarters with Aerojet Ordnance Tennessee contributing advanced materials and component technologies. Aerojet’s Vernon, Calif. manufacturing facility provided the GMLRS aeroshells, and Aerojet’s modern, low-cost load assembly and pack facility in Camden, Ark. performed the explosive casting and assembly.

Aerojet is a world-recognized aerospace and defense leader principally serving the missile and space propulsion, defense and armaments markets. GenCorp is a leading technology-based manufacturer of aerospace and defense products and systems with a real estate segment that includes activities related to the entitlement, sale, and leasing of the company’s excess real estate assets. Additional information about Aerojet and GenCorp can be obtained by visiting the companies’ Web sites at http://www.Aerojet.com and http://www.GenCorp.com.

SOURCE Aerojet

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SAIC Awarded Contract by Space and Naval Warfare (SPAWAR) Systems Center Atlantic — Press Release

October 19, 2010 by · Comment
Filed under: Business Line, Companies, Events, Press Releases, SAIC, SETA 

SAIC Awarded Contract by Space and Naval Warfare (SPAWAR) Systems Center Atlantic

Company to Provide Engineering and Technical Support Services

PR Newswire

MCLEAN, Va., Oct. 19

MCLEAN, Va., Oct. 19 /PRNewswire/ — Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has been awarded a new prime contract by the Space and Naval Warfare (SPAWAR) Systems Center Atlantic to provide command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) engineering and software integration support services. The multiple award, indefinite-delivery/indefinite-quantity contract has a one-year base period of performance, four one-year options, and a total ceiling value of not more than $49 million for all awardees, if all options are exercised. Work will be performed primarily in Charleston, S.C. and Lexington Park, Md.

SPAWAR Systems Center Atlantic rapidly delivers and supports solutions that enable information dominance for Naval, Joint, National and Coalition Warfighters. Under the contract, SAIC will provide engineering, systems integration, and technical support services as required in support of various C4ISR requirements, programs and projects for U.S. Navy, Marine Corps, and other C4ISR systems. Additionally, SAIC may provide interface systems development, product enhancement, test and evaluation, and life cycle management support. SAIC is one of four companies eligible to compete for future task orders under the contract.

“This contract provides SAIC the opportunity to provide SPAWAR with a wide range of expertise in support of their critical mission,” said Jim Thigpen, SAIC senior vice president and acting business unit general manager. “We look forward to supporting them as they continue to design, develop and field state-of-the-art C4ISR capabilities for our warfighters.”

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 $10.8 billion for its fiscal year ended January 31, 2010. For more information, visit www.saic.com. SAIC: From Science to Solutions®

SOURCE SAIC

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