A
s a i c . c o m
SAIC 2003 Annual Report
SAIC’s employees are
dedicated to delivering
best-value services and
solutions by innovative
applications of science
and technology.
A
s a i c . c o m
1
S A I C D I S C R I M I N A T O R S
• One of the largest professional IT services firms in the world.
• World-class provider of IT and telecommunications software,
engineering, and consulting.
• Leading provider of scientific research. Performs hundreds of
millions of dollars in R&D each year.
• Global delivery capabilities with offices in about 20 countries
on six continents.
• Employee ownership promotes workforce stability, financial
stability, and higher performance.
TABLE OF CONTENTS
2 Message to Stockholders
5 Homeland Security
13 Solutions for Government
and Commercial Enterprises
Ke y Ve r t i c a l M a r k e t s
26 Telecommunications
30 Energy
34 National Security
40 Space
42 Logistics
44 Health Care and Biomedical
Research
46 Environment
48 Criminal Justice
50 SAIC’s Family of Companies
52 Employee Ownership
54 Team SAIC
56 Board of Directors
T e c h n i c a l D i v e r s i t y Is Our Strength
Our clients have done a remarkable job of working through adversity over the last two
years. We are proud of the myriad ways we have supported them during these difficult
times.
We were able to do so because of our extraordinary technical diversity. The key SAIC
differentiator in any marketplace – government or commercial – is the breadth of science
and technology we understand and use.
Our strength and staying power are due to our diversity, not just in technology but also
in our people. SAIC employee owners work in almost every technical discipline, on
almost every continent.
SAIC staff are medical doctors, petroleum engineers, oceanographers, computer
programmers, management consultants, defense analysts, and much more.
Together, we develop world-class solutions to support our clients in the United States
and around the world. At SAIC, we have the program management skills and processes,
the tools and technology, and the people and ownership culture to make a difference.
1
S A I C D I S C R I M I N A T O R S
• One of the largest professional IT services firms in the world.
• World-class provider of IT and telecommunications software,
engineering, and consulting.
• Leading provider of scientific research. Performs hundreds of
millions of dollars in R&D each year.
• Global delivery capabilities with offices in about 20 countries
on six continents.
• Employee ownership promotes workforce stability, financial
stability, and higher performance.
TABLE OF CONTENTS
2 Message to Stockholders
5 Homeland Security
13 Solutions for Government
and Commercial Enterprises
Ke y Ve r t i c a l M a r k e t s
26 Telecommunications
30 Energy
34 National Security
40 Space
42 Logistics
44 Health Care and Biomedical
Research
46 Environment
48 Criminal Justice
50 SAIC’s Family of Companies
52 Employee Ownership
54 Team SAIC
56 Board of Directors
T e c h n i c a l D i v e r s i t y Is Our Strength
Our clients have done a remarkable job of working through adversity over the last two
years. We are proud of the myriad ways we have supported them during these difficult
times.
We were able to do so because of our extraordinary technical diversity. The key SAIC
differentiator in any marketplace – government or commercial – is the breadth of science
and technology we understand and use.
Our strength and staying power are due to our diversity, not just in technology but also
in our people. SAIC employee owners work in almost every technical discipline, on
almost every continent.
SAIC staff are medical doctors, petroleum engineers, oceanographers, computer
programmers, management consultants, defense analysts, and much more.
Together, we develop world-class solutions to support our clients in the United States
and around the world. At SAIC, we have the program management skills and processes,
the tools and technology, and the people and ownership culture to make a difference.
2
3
M e s
s a g e
t o
S t o c k h o l d e r s
SAIC held its course during this past year’s politi-
cal and economic turbulence. Our company
remained strong professionally and financially, and
delivered steady performance to customers and
stockholders. Achieving those results, despite the
market turmoil, was a significant accomplish-
ment.
I want to again thank SAIC employees for their
dedication and professionalism during these diffi-
cult times and for taking care of our customers
around the world, many of whom are experiencing
upheaval and uncertainty.
There is probably no time in the history of our
company when our customers have depended so
much on our services and expected so much from
us.
In some cases, lives depend on the health care,
communications, and military systems we develop
and integrate. In other cases, companies depend
on our systems and expertise for their business
success and survival.
We are proud of the support we have given our
customers worldwide. In particular, we are proud
and honored to support those who are on the front
lines of homeland security and the war in Iraq –
U.S. servicemen and women, first responders, the
U.S. intelligence community, and employees of
the new Department of Homeland Security.
And we are proud of our reputation for
responsible, high-quality service delivery as well as
for meeting our performance targets. Good
reputations – like good companies – do not just
happen; they are the result of sustained perfor-
mance and commitment. Year in and year out, for
34 years, our clients have seen us deliver on our
promises and conduct our business honestly and
ethically.
Our customers appreciate our commitment
and reward us by the reputation we enjoy and the
high renewal rates on recompeted contracts. In
the face of increased competition, our client
renewal rate remained high – 87% of our
customers, or more than four out of five, awarded
us recompetes.
Our Performance in Fiscal Year 2003
Despite a difficult commercial business environ-
ment, our revenues from continuing operations
grew 2% to $5.9 billion. Revenue from our regu-
lated segment, primarily from federal government
customers, increased by 12%. We saw even more
dramatic growth in our business for certain key
customers – such as the U.S. Air Force, DARPA,
NASA, the Customs Service, and the Depart-
ments of Justice, Transportation, and Education.
The growth in government business helped offset
revenue declines from our commercial telecom-
munications and energy IT outsourcing customers
as those markets continued under pressure, par-
ticularly telecommunications.
Our segment operating income – which gener-
ally represents the income from our operating
groups and is a good measure of how we’re per-
forming as a company – was $507 million, an
increase of 18%. These profits were generated by
good contract performance, and by cost reduc-
tions and increased efficiencies. This trend was
best reflected at our telecommunications sub-
sidiary, Telcordia Technologies, which maintained
good profitability even as its revenues declined
25%.
Those revenue and segment operating income
numbers exclude the performance of INTESA,
our joint venture company in Venezuela. Because
of the political and economic situation in
Venezuela, INTESA suspended its operations in
December 2002, and those operations are not
expected to resume. Consequently, INTESA has
been classified as a discontinued operation in our
financial statements.
Net income for FY2003 was $246 million, up
from $19 million in FY2002. This large increase
was driven by improved operating performance, as
well as by significantly reduced net losses on
marketable securities and other investments.
As we head into FY2004, SAIC’s balance sheet
and liquidity position remain strong. Even after
significant stock repurchases, we ended FY2003
with about $2.2 billion in cash, cash equivalents,
FORTUNE names SAIC #2 Most Admired Company in
Computer & Data Services Industry
“…despite the corporate governance scandals that have done so
much to tarnish the reputation of business, there are companies
to admire. And when times are not so good, it is a good time to
celebrate those that get it right.”
FORTUNE magazine, February 25, 2003
2
3
M e s
s a g e
t o
S t o c k h o l d e r s
SAIC held its course during this past year’s politi-
cal and economic turbulence. Our company
remained strong professionally and financially, and
delivered steady performance to customers and
stockholders. Achieving those results, despite the
market turmoil, was a significant accomplish-
ment.
I want to again thank SAIC employees for their
dedication and professionalism during these diffi-
cult times and for taking care of our customers
around the world, many of whom are experiencing
upheaval and uncertainty.
There is probably no time in the history of our
company when our customers have depended so
much on our services and expected so much from
us.
In some cases, lives depend on the health care,
communications, and military systems we develop
and integrate. In other cases, companies depend
on our systems and expertise for their business
success and survival.
We are proud of the support we have given our
customers worldwide. In particular, we are proud
and honored to support those who are on the front
lines of homeland security and the war in Iraq –
U.S. servicemen and women, first responders, the
U.S. intelligence community, and employees of
the new Department of Homeland Security.
And we are proud of our reputation for
responsible, high-quality service delivery as well as
for meeting our performance targets. Good
reputations – like good companies – do not just
happen; they are the result of sustained perfor-
mance and commitment. Year in and year out, for
34 years, our clients have seen us deliver on our
promises and conduct our business honestly and
ethically.
Our customers appreciate our commitment
and reward us by the reputation we enjoy and the
high renewal rates on recompeted contracts. In
the face of increased competition, our client
renewal rate remained high – 87% of our
customers, or more than four out of five, awarded
us recompetes.
Our Performance in Fiscal Year 2003
Despite a difficult commercial business environ-
ment, our revenues from continuing operations
grew 2% to $5.9 billion. Revenue from our regu-
lated segment, primarily from federal government
customers, increased by 12%. We saw even more
dramatic growth in our business for certain key
customers – such as the U.S. Air Force, DARPA,
NASA, the Customs Service, and the Depart-
ments of Justice, Transportation, and Education.
The growth in government business helped offset
revenue declines from our commercial telecom-
munications and energy IT outsourcing customers
as those markets continued under pressure, par-
ticularly telecommunications.
Our segment operating income – which gener-
ally represents the income from our operating
groups and is a good measure of how we’re per-
forming as a company – was $507 million, an
increase of 18%. These profits were generated by
good contract performance, and by cost reduc-
tions and increased efficiencies. This trend was
best reflected at our telecommunications sub-
sidiary, Telcordia Technologies, which maintained
good profitability even as its revenues declined
25%.
Those revenue and segment operating income
numbers exclude the performance of INTESA,
our joint venture company in Venezuela. Because
of the political and economic situation in
Venezuela, INTESA suspended its operations in
December 2002, and those operations are not
expected to resume. Consequently, INTESA has
been classified as a discontinued operation in our
financial statements.
Net income for FY2003 was $246 million, up
from $19 million in FY2002. This large increase
was driven by improved operating performance, as
well as by significantly reduced net losses on
marketable securities and other investments.
As we head into FY2004, SAIC’s balance sheet
and liquidity position remain strong. Even after
significant stock repurchases, we ended FY2003
with about $2.2 billion in cash, cash equivalents,
FORTUNE names SAIC #2 Most Admired Company in
Computer & Data Services Industry
“…despite the corporate governance scandals that have done so
much to tarnish the reputation of business, there are companies
to admire. And when times are not so good, it is a good time to
celebrate those that get it right.”
FORTUNE magazine, February 25, 2003
4
and short-term investments in marketable securi-
ties. Major sources of cash during FY2003 were
cash generated by our operations, proceeds from
liquidation of our remaining investments in
VeriSign and Amdocs, and funds received from
our $800-million bond placement. Our strong bal-
ance sheet gives us great flexibility to grow our
business.
Going forward, we remain cautious about near-
term recovery in our commercial markets. We are
optimistic about our opportunities to be of service
to our government customers and about our long-
term outlook overall.
Employee Ownership
In business, the choice of strategy at the begin-
ning often lays the foundation for future success.
At SAIC, our strategy of employee ownership laid
the foundation for much of our success. The same
reasons we chose employee ownership at the
beginning hold true today. It motivates our
employees to perform higher quality work for our
customers and creates a more stable company.
We should never underestimate the impact
that each of us, as employee owners, can have on
the success and well-being of our employee team-
mates and SAIC as a whole.
As a private company owned by its highly
skilled current and former employees, SAIC has
the luxury of being able to concentrate on long-
term goals and doing what it does best – helping
customers solve complex technical problems of
national and international importance.
Looking to the Future
In early FY2004, I presented to our Board of
Directors a plan for the smooth and orderly
transition of the CEO and Chairman of the Board
positions. The plan provides for both an orderly
transition and continuity and stability through my
ongoing role as CEO and Chairman of the Board.
I will serve as CEO through the earlier of February
1, 2004 or when my successor has been elected by
the SAIC Board of Directors. My current term on
the Board expires in July 2004, and I will remain
Chairman until a new Chairman is selected by the
Board. I believe this plan is in the best interests for
our long-term success.
We all know SAIC has been making important
contributions for 34 years. I am confident that the
company’s future will be as bright as its past.
J.R. Beyster, Chairman of the Board, President,
and Chief Executive Officer
Revenues Millions
Segment Operating Income
Millions
Revenues and Segment
Operating Income exclude
activity from our discontinued
INTESA operation.
2003 $5,902.7
2002 $5,771.0
2001 $5,605.0
$5,000
$4,000
$3,000
$2,000
$1,000
2003 $507.1
2002 $430.9
2001 $393.8
$400
$300
$200
$100
5
Homeland Security
*
The FY02
number
includes net
losses from
investment
activities and
business unit
sales of $300.1
after taxes
Net Income Millions
$2000
2003 $246.3
2002 $18.9
2001 $2,059
Net gains from
investment activities
and sales of business
units and subsidiary
common stock
$1000
$0
’94
*
’03
$8
Diluted Earnings per Share
2003 $1.21
2002 $0.08
2001 $8.11
Net gains from
investment activities
and sales of business
units and subsidiary
common stock
$6
$4
$2
$0
’94
*
’03
Stockholder’s Equity Millions
$3,000
2003 $2,007.0
2002 $2,523.8
2001 $3,344.2
$2,000
$1,000
*
The FY02
number
includes net
losses from
investment
activities and
business unit
sales of $1.31
after taxes
$0
’94
’03
$0
’94
’03
$0
’94
’03
4
and short-term investments in marketable securi-
ties. Major sources of cash during FY2003 were
cash generated by our operations, proceeds from
liquidation of our remaining investments in
VeriSign and Amdocs, and funds received from
our $800-million bond placement. Our strong bal-
ance sheet gives us great flexibility to grow our
business.
Going forward, we remain cautious about near-
term recovery in our commercial markets. We are
optimistic about our opportunities to be of service
to our government customers and about our long-
term outlook overall.
Employee Ownership
In business, the choice of strategy at the begin-
ning often lays the foundation for future success.
At SAIC, our strategy of employee ownership laid
the foundation for much of our success. The same
reasons we chose employee ownership at the
beginning hold true today. It motivates our
employees to perform higher quality work for our
customers and creates a more stable company.
We should never underestimate the impact
that each of us, as employee owners, can have on
the success and well-being of our employee team-
mates and SAIC as a whole.
As a private company owned by its highly
skilled current and former employees, SAIC has
the luxury of being able to concentrate on long-
term goals and doing what it does best – helping
customers solve complex technical problems of
national and international importance.
Looking to the Future
In early FY2004, I presented to our Board of
Directors a plan for the smooth and orderly
transition of the CEO and Chairman of the Board
positions. The plan provides for both an orderly
transition and continuity and stability through my
ongoing role as CEO and Chairman of the Board.
I will serve as CEO through the earlier of February
1, 2004 or when my successor has been elected by
the SAIC Board of Directors. My current term on
the Board expires in July 2004, and I will remain
Chairman until a new Chairman is selected by the
Board. I believe this plan is in the best interests for
our long-term success.
We all know SAIC has been making important
contributions for 34 years. I am confident that the
company’s future will be as bright as its past.
J.R. Beyster, Chairman of the Board, President,
and Chief Executive Officer
Revenues Millions
Segment Operating Income
Millions
Revenues and Segment
Operating Income exclude
activity from our discontinued
INTESA operation.
2003 $5,902.7
2002 $5,771.0
2001 $5,605.0
$5,000
$4,000
$3,000
$2,000
$1,000
2003 $507.1
2002 $430.9
2001 $393.8
$400
$300
$200
$100
5
Homeland Security
*
The FY02
number
includes net
losses from
investment
activities and
business unit
sales of $300.1
after taxes
Net Income Millions
$2000
2003 $246.3
2002 $18.9
2001 $2,059
Net gains from
investment activities
and sales of business
units and subsidiary
common stock
$1000
$0
’94
*
’03
$8
Diluted Earnings per Share
2003 $1.21
2002 $0.08
2001 $8.11
Net gains from
investment activities
and sales of business
units and subsidiary
common stock
$6
$4
$2
$0
’94
*
’03
Stockholder’s Equity Millions
$3,000
2003 $2,007.0
2002 $2,523.8
2001 $3,344.2
$2,000
$1,000
*
The FY02
number
includes net
losses from
investment
activities and
business unit
sales of $1.31
after taxes
$0
’94
’03
$0
’94
’03
$0
’94
’03
6
7
A simulated terrorist attack on a train carrying dangerous chemicals creates many challenges for
emergency workers in Iowa. The scene at left shows a small part of the large, complex training exercise
and our advanced simulation system that helped make it realistic.
training experts worked closely with our software engineers to design a first-of-its-kind
system funded by the National Guard Bureau. Our interactive simulation-based training
system has helped local emergency responders from Utah to West Virginia to Iowa
prepare for possible terrorist attacks involving weapons of mass destruction. More than
3,000 additional communities expect to benefit from the training system.
To help enhance security at the 2002 Winter Olympics in Utah, SAIC worked with
state and local agencies and their federal counterparts to develop the nation’s first state
homeland security program, which was widely praised by the U.S. Attorney General and
other top officials. We supported every facet of public safety from planning to operations,
including design and implementation of the Olympic Coordination Center, a chemical
and biological protection system, and a statewide system for interagency information
sharing.
For the Florida Department of Law Enforcement, SAIC compiled antiterrorism
security best practices and procedures for over 65 categories of state and local govern-
ment facilities and for private critical infrastructure facilities and special event venues.
To enhance emergency wireless communications among authorized users in law
enforcement and government, SAIC and its Telcordia subsidiary are helping modernize
the national wireless communications infrastructure. Our efforts prepare agencies to
“SAIC is making an important contribution to community
readiness and homeland security in the Automated Exercise &
Assessment System. It is visionary and groundbreaking.”
Dan Donohue, Special Assistant to the Chief, National Guard Bureau
A
H o m e l a n d S e c u r i t y
nationally recognized leader in public safety and homeland security,
SAIC draws on thousands of experienced staff members in disciplines ranging from
vulnerability assessment to infrastructure protection to emergency response. We have
extensive experience with the component agencies of the new Department of Homeland
Security (DHS), and have worked hand in hand with our agency customers to meet their
important training, technical, and strategic requirements. Our success in integrating
many different agency systems and networks is a key reason why we were chosen (shortly
after year-end) to integrate the data network connecting all 22 agencies of the new DHS.
Emergency Preparedness and Response. Following the September 11th attacks,
realistic training for first responders became more essential than ever. However, time-
efficient and cost-effective exercise tools to accomplish such training did not exist. SAIC
6
7
A simulated terrorist attack on a train carrying dangerous chemicals creates many challenges for
emergency workers in Iowa. The scene at left shows a small part of the large, complex training exercise
and our advanced simulation system that helped make it realistic.
training experts worked closely with our software engineers to design a first-of-its-kind
system funded by the National Guard Bureau. Our interactive simulation-based training
system has helped local emergency responders from Utah to West Virginia to Iowa
prepare for possible terrorist attacks involving weapons of mass destruction. More than
3,000 additional communities expect to benefit from the training system.
To help enhance security at the 2002 Winter Olympics in Utah, SAIC worked with
state and local agencies and their federal counterparts to develop the nation’s first state
homeland security program, which was widely praised by the U.S. Attorney General and
other top officials. We supported every facet of public safety from planning to operations,
including design and implementation of the Olympic Coordination Center, a chemical
and biological protection system, and a statewide system for interagency information
sharing.
For the Florida Department of Law Enforcement, SAIC compiled antiterrorism
security best practices and procedures for over 65 categories of state and local govern-
ment facilities and for private critical infrastructure facilities and special event venues.
To enhance emergency wireless communications among authorized users in law
enforcement and government, SAIC and its Telcordia subsidiary are helping modernize
the national wireless communications infrastructure. Our efforts prepare agencies to
“SAIC is making an important contribution to community
readiness and homeland security in the Automated Exercise &
Assessment System. It is visionary and groundbreaking.”
Dan Donohue, Special Assistant to the Chief, National Guard Bureau
A
H o m e l a n d S e c u r i t y
nationally recognized leader in public safety and homeland security,
SAIC draws on thousands of experienced staff members in disciplines ranging from
vulnerability assessment to infrastructure protection to emergency response. We have
extensive experience with the component agencies of the new Department of Homeland
Security (DHS), and have worked hand in hand with our agency customers to meet their
important training, technical, and strategic requirements. Our success in integrating
many different agency systems and networks is a key reason why we were chosen (shortly
after year-end) to integrate the data network connecting all 22 agencies of the new DHS.
Emergency Preparedness and Response. Following the September 11th attacks,
realistic training for first responders became more essential than ever. However, time-
efficient and cost-effective exercise tools to accomplish such training did not exist. SAIC
8
9
upgrade their non-interoperable land mobile radio communications to a digital, fully
interoperable system. The state of California called on us to help create its new public
safety network for Enhanced 9-1-1 services. And the wireless industry relies on Telcordia
to help ensure calls from authorized users and government leaders receive priority calling
during emergencies.
Securing Borders and Transportation. Deployed at ports and borders across North
America, Europe, the Middle East, and the Far East, our Vehicle and Cargo Inspection
System (VACIS™) has become an important part of the homeland defense infrastructure.
An extremely low radiation, non-intrusive inspection system, VACIS produces radio-
graphic images of cargo containers and vehicles in less than a minute. By merging VACIS
with our other systems and technologies, we created an integrated security architecture
that offers port security a seamless network capable of quickly and accurately inspecting
several million containers coming into the U.S. every year.
We assisted the Metropolitan Washington Airport Authority in assessing security
threats and improving protection for the airports serving the nation’s capital – Dulles
International and Ronald Reagan National. As part of this work, we are prioritizing
options to improve access control systems, employee credentialing, and protection of air
intake systems against biological and chemical attacks.
When terrorists attempted to shoot down a commercial airliner last year using
shoulder-fired missiles, government and industry scrambled to develop protective
measures. SAIC rapidly developed a countermeasure to thwart the capability of infrared
missiles to find or track targets. Within three weeks, our “Dome of Light” solution
progressed from a concept to a contract with the Defense Advanced Research Projects
Agency (DARPA).
Responding to Nuclear, Biological, and Chemical Threats. SAIC is on the leading
edge in helping industry and government defend against threats from weapons of mass
destruction. To enable earlier detection of chemical and biological attacks in urban areas,
we are helping the Defense Threat Reduction Agency (DARPA) develop and integrate a
prototype sensor and surveillance system. On a DARPA project, we are helping develop
a fast, accurate biosensor that combines advanced genomic and signal processing
techniques to identify known, newly emergent, and bioengineered pathogens, including
viruses, bacteria, fungi, and protozoa.
For the Centers for Disease Control and Prevention, we are developing applications
to help field investigators and epidemiologists better record, analyze, and report
bioterrorism events.
The lead federal agency for medical and public health preparedness and response as
well as multiple states asked SAIC to improve their responses to bioterrorism. For the
U.S. Department of Health and Human Services, we assessed options to enhance the
links between clinicians, state and local emergency responders, and emergency
Our systems help protect and improve productivity at some of the world’s busiest ports, including
Los Angeles (right), Montreal, and Dover. One SAIC system reads identification numbers of containers
and vehicles while our VACIS™system allows operators to quickly scan and verifycargo inside containers.
H o m e
l
a
n
d
S e
c
u
r
i
t
y
managers. We also helped Arizona and Kansas analyze bioterrorism vulnerabilities and
develop response plans, and helped Massachusetts emergency planners prepare for and
respond to incidents involving hazardous materials.
In support of emergency operations in Colorado and Alabama, SAIC worked with the
U.S. Army to successfully field two mobile treatment and disposal systems designed to
safely destroy chemical warfare materiel. In comparison to previous disposal practices,
these mobile systems are designed to provide full containment, and provide maximum
protection for workers and the environment.
With teaming partners Scott Aviation and Avon Rubber and Plastics, SAIC
successfully completed the first phase in the development of the next generation of Joint
Service nuclear, biological, and chemical protective masks.
Used by the FBI, U.S. Postal Service, U.S. Secret Service, and other customers, our
RTR-4® portable digital X-ray system enables quick searches for weapons and other
dangerous contraband in areas too difficult or time-consuming to search by hand.
8
9
upgrade their non-interoperable land mobile radio communications to a digital, fully
interoperable system. The state of California called on us to help create its new public
safety network for Enhanced 9-1-1 services. And the wireless industry relies on Telcordia
to help ensure calls from authorized users and government leaders receive priority calling
during emergencies.
Securing Borders and Transportation. Deployed at ports and borders across North
America, Europe, the Middle East, and the Far East, our Vehicle and Cargo Inspection
System (VACIS™) has become an important part of the homeland defense infrastructure.
An extremely low radiation, non-intrusive inspection system, VACIS produces radio-
graphic images of cargo containers and vehicles in less than a minute. By merging VACIS
with our other systems and technologies, we created an integrated security architecture
that offers port security a seamless network capable of quickly and accurately inspecting
several million containers coming into the U.S. every year.
We assisted the Metropolitan Washington Airport Authority in assessing security
threats and improving protection for the airports serving the nation’s capital – Dulles
International and Ronald Reagan National. As part of this work, we are prioritizing
options to improve access control systems, employee credentialing, and protection of air
intake systems against biological and chemical attacks.
When terrorists attempted to shoot down a commercial airliner last year using
shoulder-fired missiles, government and industry scrambled to develop protective
measures. SAIC rapidly developed a countermeasure to thwart the capability of infrared
missiles to find or track targets. Within three weeks, our “Dome of Light” solution
progressed from a concept to a contract with the Defense Advanced Research Projects
Agency (DARPA).
Responding to Nuclear, Biological, and Chemical Threats. SAIC is on the leading
edge in helping industry and government defend against threats from weapons of mass
destruction. To enable earlier detection of chemical and biological attacks in urban areas,
we are helping the Defense Threat Reduction Agency (DARPA) develop and integrate a
prototype sensor and surveillance system. On a DARPA project, we are helping develop
a fast, accurate biosensor that combines advanced genomic and signal processing
techniques to identify known, newly emergent, and bioengineered pathogens, including
viruses, bacteria, fungi, and protozoa.
For the Centers for Disease Control and Prevention, we are developing applications
to help field investigators and epidemiologists better record, analyze, and report
bioterrorism events.
The lead federal agency for medical and public health preparedness and response as
well as multiple states asked SAIC to improve their responses to bioterrorism. For the
U.S. Department of Health and Human Services, we assessed options to enhance the
links between clinicians, state and local emergency responders, and emergency
Our systems help protect and improve productivity at some of the world’s busiest ports, including
Los Angeles (right), Montreal, and Dover. One SAIC system reads identification numbers of containers
and vehicles while our VACIS™system allows operators to quickly scan and verifycargo inside containers.
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managers. We also helped Arizona and Kansas analyze bioterrorism vulnerabilities and
develop response plans, and helped Massachusetts emergency planners prepare for and
respond to incidents involving hazardous materials.
In support of emergency operations in Colorado and Alabama, SAIC worked with the
U.S. Army to successfully field two mobile treatment and disposal systems designed to
safely destroy chemical warfare materiel. In comparison to previous disposal practices,
these mobile systems are designed to provide full containment, and provide maximum
protection for workers and the environment.
With teaming partners Scott Aviation and Avon Rubber and Plastics, SAIC
successfully completed the first phase in the development of the next generation of Joint
Service nuclear, biological, and chemical protective masks.
Used by the FBI, U.S. Postal Service, U.S. Secret Service, and other customers, our
RTR-4® portable digital X-ray system enables quick searches for weapons and other
dangerous contraband in areas too difficult or time-consuming to search by hand.
10
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Our versatile, remotely operated harbor security vehicle has supported Department of Defense
force protection missions, mine countermeasures, and covert operations demonstrations worldwide.
such as extracting heartbeat and facial features to identify humans at a distance. We also
improve and deploy the latest proven biometrics technologies using fingerprint scans.
SAIC helps safeguard the information assets of government agencies such as the
Environmental Protection Agency, the Federal Emergency Management Agency, the
U.S. Department of Agriculture (USDA), and the Veterans Administration (VA). For
example, we act as information security architect for both the USDA and VA. In addition,
we help ensure that computer security incidents within both agencies are quickly dealt
with and have minimal impact on the availability and integrity of agency services.
Our thorough understanding of cybersecurity also helps the U.S. Department of
Defense safeguard critical military infrastructure. SAIC is the leader in the number of
awarded tasks on the Defense Information Systems Agency I-Assure contract. Our tasks
have included integrating public key infrastructure, analyzing security policy for NATO
and the coalition on the war on terrorism, and supporting the combatant commanders by
engineering and installing cross-domain security solutions, assessing information
assurance readiness, and providing network operations and security capability.
Our Common Criteria Testing Laboratory enables the U.S. government to trust the
security of commercial products used by the government’s IT infrastructure. The Micro-
soft® Windows 2000 Server operating system successfully completed the lab’s rigorous
testing, and other operating systems, servers, and network products are being tested.
“For nearly six years, SAIC has provided highly skilled network
security support to the Space and Naval Warfare Systems
Command System Center San Diego and its 20,000+ device
wide-area networks. Well done to this great team of security
professionals!”
Ron Broersma, SPAWAR Network Security Manager
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Protecting Infrastructure and Securing Cyberspace. Protecting information and
infrastructure has never been a higher priority than it is today. We have outstanding
experience in securing information networks, protecting physical facilities, and helping
ensure business continuity.
We help municipalities and federal customers identify terrorism threats, and assess
risks to critical water infrastructure and drinking supplies. For the U.S. Bureau of
Reclamation, we help protect 252 dam sites and major hydropower generation plants
across the western U.S., including Hoover, Grand Coulee, and Glen Canyon dams.
To improve the overall security posture of an important government facility – the
SPAWAR System Center in San Diego – we strengthened network and data security, and
analyzed physical security threats and vulnerabilities.
Emerging biometrics technologies promise to provide better access control for facili-
ties. For DARPA, we are pioneering and fusing next generation biometric technologies,
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Our versatile, remotely operated harbor security vehicle has supported Department of Defense
force protection missions, mine countermeasures, and covert operations demonstrations worldwide.
such as extracting heartbeat and facial features to identify humans at a distance. We also
improve and deploy the latest proven biometrics technologies using fingerprint scans.
SAIC helps safeguard the information assets of government agencies such as the
Environmental Protection Agency, the Federal Emergency Management Agency, the
U.S. Department of Agriculture (USDA), and the Veterans Administration (VA). For
example, we act as information security architect for both the USDA and VA. In addition,
we help ensure that computer security incidents within both agencies are quickly dealt
with and have minimal impact on the availability and integrity of agency services.
Our thorough understanding of cybersecurity also helps the U.S. Department of
Defense safeguard critical military infrastructure. SAIC is the leader in the number of
awarded tasks on the Defense Information Systems Agency I-Assure contract. Our tasks
have included integrating public key infrastructure, analyzing security policy for NATO
and the coalition on the war on terrorism, and supporting the combatant commanders by
engineering and installing cross-domain security solutions, assessing information
assurance readiness, and providing network operations and security capability.
Our Common Criteria Testing Laboratory enables the U.S. government to trust the
security of commercial products used by the government’s IT infrastructure. The Micro-
soft® Windows 2000 Server operating system successfully completed the lab’s rigorous
testing, and other operating systems, servers, and network products are being tested.
“For nearly six years, SAIC has provided highly skilled network
security support to the Space and Naval Warfare Systems
Command System Center San Diego and its 20,000+ device
wide-area networks. Well done to this great team of security
professionals!”
Ron Broersma, SPAWAR Network Security Manager
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Protecting Infrastructure and Securing Cyberspace. Protecting information and
infrastructure has never been a higher priority than it is today. We have outstanding
experience in securing information networks, protecting physical facilities, and helping
ensure business continuity.
We help municipalities and federal customers identify terrorism threats, and assess
risks to critical water infrastructure and drinking supplies. For the U.S. Bureau of
Reclamation, we help protect 252 dam sites and major hydropower generation plants
across the western U.S., including Hoover, Grand Coulee, and Glen Canyon dams.
To improve the overall security posture of an important government facility – the
SPAWAR System Center in San Diego – we strengthened network and data security, and
analyzed physical security threats and vulnerabilities.
Emerging biometrics technologies promise to provide better access control for facili-
ties. For DARPA, we are pioneering and fusing next generation biometric technologies,
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In the event of a terrorist attack at Super Bowl XXXVII in San Diego, emergency responders were
prepared to react quickly with the help of a powerful disaster analysis system called the Consequences
Assessment Tool Set (CATS), a technology developed by SAIC for the Defense Threat Reduction Agency.
Commercial enterprises rely on our managed services to raise their security levels. For
a major insurance provider, our center monitors client networks to identify unauthorized
activity and help respond to intrusions. Our disaster recovery and business continuity
consulting services are used by clients such as Connexion by Boeing, which provides
high-speed Internet access to aircraft in flight.
Rounding out our worldwide delivery of information security services, SAIC works
with Infosec Corp., a majority-owned subsidiary of Mitsubishi Corporation, to provide
security services for customers in Japan.
Solutions for Government and Commercial Enterprises
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In the event of a terrorist attack at Super Bowl XXXVII in San Diego, emergency responders were
prepared to react quickly with the help of a powerful disaster analysis system called the Consequences
Assessment Tool Set (CATS), a technology developed by SAIC for the Defense Threat Reduction Agency.
Commercial enterprises rely on our managed services to raise their security levels. For
a major insurance provider, our center monitors client networks to identify unauthorized
activity and help respond to intrusions. Our disaster recovery and business continuity
consulting services are used by clients such as Connexion by Boeing, which provides
high-speed Internet access to aircraft in flight.
Rounding out our worldwide delivery of information security services, SAIC works
with Infosec Corp., a majority-owned subsidiary of Mitsubishi Corporation, to provide
security services for customers in Japan.
Solutions for Government and Commercial Enterprises
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E n t e r p r i s e
I n t e g r a t i o n
Top Systems Integrator for Federal Government
Ranked #1 Systems Integrator by Government Executive
One of America’s Most Admired Companies
Ranked #2 Most Admired in the Computer and Data Services Industry by FORTUNE
Whether our clients are trying to improve everyday productivity or manage a crisis, they
need better access to the right information and expertise. Our systems and networks
allow decision makers and enterprises to communicate, collaborate, and respond more
quickly and efficiently.
We have a reputation for delivering innovative system and network solutions, for
succeeding with the tough integration challenges, and for doing more with less.
Those were some of the reasons we were chosen to tackle one of the most complex
and important integration projects in the nation: creating the data network linking all the
components of the new Department of Homeland Security (DHS).
Shortly after the fiscal year ended, our staff began integrating the network backbone
linking all 22 agencies of the new department and their diverse information systems. At
the same time, we are building in features and technologies to provide strong network
security.
SAIC is currently integrating the network backbone linking all 22
agencies of the new Department of Homeland Security. The network
must be secure and robust enough to support the wide-ranging needs
of the many organizations folded into the new department.
On this contract, we are once again proving our ability to stand up a secure, complex
network quickly and to solve difficult hardware, software, and data integration
challenges. Our business-driven enterprise architecture will help provide that the
deployed IT applications and network resources deliver the right information to the right
person at the right time – an essential requirement for the new department to meet its
mission of securing the homeland.
Our ability to deliver end-to-end enterprise architectures comes from our world-class
experience in both IT and telecommunications. We have unparalleled expertise in all
aspects of IT and network strategy, design, integration, and operations.
We offer clients the full spectrum of IT, telecom, and interconnection solutions
including Internet telephony, Web collaboration, multichannel customer care, high-
speed data to better serve mobile workers and remote locations, and emerging interfaces
such as speech recognition and text-to-speech conversion.
Even more important, we offer clients our strong commitment to vendor
independence and to delivering the best-value solutions to meet their individual needs.
We work with a large number of suppliers, ranging from technology startups to the
leading hardware, software, telecom service provider, and IT service firms.
Best practices and experienced staff are also key to our success in integrating systems,
developing and reengineering software, and managing complex IT projects. In the past
few years, SAIC has made significant investments to ensure that staff across the
14
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E n t e r p r i s e
I n t e g r a t i o n
Top Systems Integrator for Federal Government
Ranked #1 Systems Integrator by Government Executive
One of America’s Most Admired Companies
Ranked #2 Most Admired in the Computer and Data Services Industry by FORTUNE
Whether our clients are trying to improve everyday productivity or manage a crisis, they
need better access to the right information and expertise. Our systems and networks
allow decision makers and enterprises to communicate, collaborate, and respond more
quickly and efficiently.
We have a reputation for delivering innovative system and network solutions, for
succeeding with the tough integration challenges, and for doing more with less.
Those were some of the reasons we were chosen to tackle one of the most complex
and important integration projects in the nation: creating the data network linking all the
components of the new Department of Homeland Security (DHS).
Shortly after the fiscal year ended, our staff began integrating the network backbone
linking all 22 agencies of the new department and their diverse information systems. At
the same time, we are building in features and technologies to provide strong network
security.
SAIC is currently integrating the network backbone linking all 22
agencies of the new Department of Homeland Security. The network
must be secure and robust enough to support the wide-ranging needs
of the many organizations folded into the new department.
On this contract, we are once again proving our ability to stand up a secure, complex
network quickly and to solve difficult hardware, software, and data integration
challenges. Our business-driven enterprise architecture will help provide that the
deployed IT applications and network resources deliver the right information to the right
person at the right time – an essential requirement for the new department to meet its
mission of securing the homeland.
Our ability to deliver end-to-end enterprise architectures comes from our world-class
experience in both IT and telecommunications. We have unparalleled expertise in all
aspects of IT and network strategy, design, integration, and operations.
We offer clients the full spectrum of IT, telecom, and interconnection solutions
including Internet telephony, Web collaboration, multichannel customer care, high-
speed data to better serve mobile workers and remote locations, and emerging interfaces
such as speech recognition and text-to-speech conversion.
Even more important, we offer clients our strong commitment to vendor
independence and to delivering the best-value solutions to meet their individual needs.
We work with a large number of suppliers, ranging from technology startups to the
leading hardware, software, telecom service provider, and IT service firms.
Best practices and experienced staff are also key to our success in integrating systems,
developing and reengineering software, and managing complex IT projects. In the past
few years, SAIC has made significant investments to ensure that staff across the
16
17
We enabled the U.S. Marine Corps to better predict manpower and
skill needs by integrating 34 disparate legacy systems into a single
2-terabyte data warehouse. Direct access to integrated data shortens
decision-cycles from weeks to minutes. This enables more precise
planning and has saved the Marine Corps $150 million.
E n t e r p r
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I n t e g r a t i o n
corporation have the knowledge and expertise to manage, develop, and deliver proven,
repeatable, best practice solutions to clients.
For example, our clients can choose the right level of software development maturity
– as measured by the Software Engineering Institute’s Capability Maturity Model® – to
meet their performance needs and budgets. SAIC and its Telcordia subsidiary have about
3,000 software engineers in organizations rated at SEI CMM Level 5, and nearly 6,000
more in organizations rated at either Level 4, 3, or 2.
The benefits our clients receive from high-quality, well-structured software are clear:
lower maintenance and upgrade costs now and in the future. Our commitment to proven
processes and high-quality, low-cost software has made us the top software contractor for
the U.S. Environmental Protection Agency, the Army Aviation and Missile Command,
and the regional Bell operating companies.
Because of its demonstrated experience and success, SAIC has been officially
certified by the Software Engineering Institute to help other organizations transition to
the Institute’s new CMMI standard.
Data Mining and Warehousing. The ability to manage and analyze data across
disparate standards, databases, and infrastructures has become a top priority for
businesses and government agencies. While we understand which existing Web services
to use for simpler projects, we also have the ability to create new solutions for more
complex projects, such as cleansing and integrating extremely large amounts of legacy
multimedia, video, or graphic data.
For the National Cancer Institute, we integrated several disparate genomic and
biomedical databases into a multi-terabyte data warehouse, and developed data mining
tools that allow researchers to do easy Web-based searches across multiple scientific
disciplines. Our work enables researchers to create and manage knowledge faster and to
better analyze the differences between normal and cancerous tissue. Our work may also
help speed drug discovery.
We developed latent semantic indexing (LSI) software that enables conceptual
searches. It can understand what you are searching for – and retrieve it – even if you do
not use precise search words. In addition, LSI can retrieve information simultaneously
in eight different languages, including Arabic, Korean, and Russian. It may be the only
cross-lingual system that does not require documents or queries to be translated.
We also provide a highly scalable text database and search system – TeraText™
Database System – that can search billions of XML documents in seconds and allows
our customers to more easily manage multi-terabyte text collections. While many other
systems require time-consuming off-line indexing, TeraText’s real-time indexing and
storage features enable thousands of users to retrieve and share information in real time.
16
17
We enabled the U.S. Marine Corps to better predict manpower and
skill needs by integrating 34 disparate legacy systems into a single
2-terabyte data warehouse. Direct access to integrated data shortens
decision-cycles from weeks to minutes. This enables more precise
planning and has saved the Marine Corps $150 million.
E n t e r p r
i s e
I n t e g r a t i o n
corporation have the knowledge and expertise to manage, develop, and deliver proven,
repeatable, best practice solutions to clients.
For example, our clients can choose the right level of software development maturity
– as measured by the Software Engineering Institute’s Capability Maturity Model® – to
meet their performance needs and budgets. SAIC and its Telcordia subsidiary have about
3,000 software engineers in organizations rated at SEI CMM Level 5, and nearly 6,000
more in organizations rated at either Level 4, 3, or 2.
The benefits our clients receive from high-quality, well-structured software are clear:
lower maintenance and upgrade costs now and in the future. Our commitment to proven
processes and high-quality, low-cost software has made us the top software contractor for
the U.S. Environmental Protection Agency, the Army Aviation and Missile Command,
and the regional Bell operating companies.
Because of its demonstrated experience and success, SAIC has been officially
certified by the Software Engineering Institute to help other organizations transition to
the Institute’s new CMMI standard.
Data Mining and Warehousing. The ability to manage and analyze data across
disparate standards, databases, and infrastructures has become a top priority for
businesses and government agencies. While we understand which existing Web services
to use for simpler projects, we also have the ability to create new solutions for more
complex projects, such as cleansing and integrating extremely large amounts of legacy
multimedia, video, or graphic data.
For the National Cancer Institute, we integrated several disparate genomic and
biomedical databases into a multi-terabyte data warehouse, and developed data mining
tools that allow researchers to do easy Web-based searches across multiple scientific
disciplines. Our work enables researchers to create and manage knowledge faster and to
better analyze the differences between normal and cancerous tissue. Our work may also
help speed drug discovery.
We developed latent semantic indexing (LSI) software that enables conceptual
searches. It can understand what you are searching for – and retrieve it – even if you do
not use precise search words. In addition, LSI can retrieve information simultaneously
in eight different languages, including Arabic, Korean, and Russian. It may be the only
cross-lingual system that does not require documents or queries to be translated.
We also provide a highly scalable text database and search system – TeraText™
Database System – that can search billions of XML documents in seconds and allows
our customers to more easily manage multi-terabyte text collections. While many other
systems require time-consuming off-line indexing, TeraText’s real-time indexing and
storage features enable thousands of users to retrieve and share information in real time.
18
19
S t r a t e g i c M a n a g e m e nt Consulting
Technology can be a key driver of competitive advantage, but to realize its potential, tech-
nology investment and resources must be managed strategically. For decades, SAIC has
quietly helped clients make smart technology decisions. At the same time, we helped
them make the operational, organizational, and business process changes needed to fully
benefit from those technology decisions.
We helped some of the world’s largest oil and pharmaceutical companies achieve
higher business value and better economies of scale from their information technology
assets. BP used our expertise to rationalize and integrate diverse IT resources for its
acquisitions of Amoco, ARCO, and Castrol in 1999 and 2000.
Two major biopharmaceutical companies have relied on our expertise to help ration-
alize and integrate the IT assets and intellectual property gained from important acqui-
sitions. For example, in the Bristol-Myers Squibb acquisition of DuPont Pharmaceuticals
in 2001, we helped align IT resources to better support strategic business goals.
On the government side, our consultants helped integrate the U.S. Information
Agency into the State Department and set up the new J8 organization as part of the new
Northern Command. For both, we developed organizational models, business processes,
and priorities to promote high levels of alignment and mission performance. SAIC also
Our Telcordia Technologies subsidiary helps service providers
successfully implement major change initiatives in multiple ways.
Telcordia consultants help providers better understand and respond to
regulatory changes, create more competitive pricing and product
strategies, and design network and operations solutions that support
their business strategies.
assists the Air Force in transforming and streamlining its human resources processes.
Increased productivity is essential to the utility, chemical, and oil industry clients of
our SAIC Consulting practice. SAIC Consulting currently is helping Shell, Chevron-
Texaco, and BP implement new processes, technologies, and cultural changes designed
to measurably increase oil field production and life cycles. Last fiscal year, SAIC
Consulting strengthened its management consulting capabilities with the acquisition of
the former Arthur Andersen’s North American Oil and Gas Consulting Practice. The
former Andersen practice continues to perform its well-known annual benchmarking to
evaluate the performance and effectiveness of capital expenditures for North American
oil companies. Using their expertise in organizational transformation, business process
optimization, supply chain management, and technology utilization, consultants have
made recommendations resulting in significant savings in labor and non-labor costs.
SAIC also brought together government and commercial consultants in a global
knowledge management consultancy to dramatically improve clients’ operational per-
formance. The benefits from our previous knowledge management projects continue to
add up. Two major oil companies have now documented cost savings of hundreds of mil-
lions of dollars thanks to our world-class knowledge management practices.
18
19
S t r a t e g i c M a n a g e m e nt Consulting
Technology can be a key driver of competitive advantage, but to realize its potential, tech-
nology investment and resources must be managed strategically. For decades, SAIC has
quietly helped clients make smart technology decisions. At the same time, we helped
them make the operational, organizational, and business process changes needed to fully
benefit from those technology decisions.
We helped some of the world’s largest oil and pharmaceutical companies achieve
higher business value and better economies of scale from their information technology
assets. BP used our expertise to rationalize and integrate diverse IT resources for its
acquisitions of Amoco, ARCO, and Castrol in 1999 and 2000.
Two major biopharmaceutical companies have relied on our expertise to help ration-
alize and integrate the IT assets and intellectual property gained from important acqui-
sitions. For example, in the Bristol-Myers Squibb acquisition of DuPont Pharmaceuticals
in 2001, we helped align IT resources to better support strategic business goals.
On the government side, our consultants helped integrate the U.S. Information
Agency into the State Department and set up the new J8 organization as part of the new
Northern Command. For both, we developed organizational models, business processes,
and priorities to promote high levels of alignment and mission performance. SAIC also
Our Telcordia Technologies subsidiary helps service providers
successfully implement major change initiatives in multiple ways.
Telcordia consultants help providers better understand and respond to
regulatory changes, create more competitive pricing and product
strategies, and design network and operations solutions that support
their business strategies.
assists the Air Force in transforming and streamlining its human resources processes.
Increased productivity is essential to the utility, chemical, and oil industry clients of
our SAIC Consulting practice. SAIC Consulting currently is helping Shell, Chevron-
Texaco, and BP implement new processes, technologies, and cultural changes designed
to measurably increase oil field production and life cycles. Last fiscal year, SAIC
Consulting strengthened its management consulting capabilities with the acquisition of
the former Arthur Andersen’s North American Oil and Gas Consulting Practice. The
former Andersen practice continues to perform its well-known annual benchmarking to
evaluate the performance and effectiveness of capital expenditures for North American
oil companies. Using their expertise in organizational transformation, business process
optimization, supply chain management, and technology utilization, consultants have
made recommendations resulting in significant savings in labor and non-labor costs.
SAIC also brought together government and commercial consultants in a global
knowledge management consultancy to dramatically improve clients’ operational per-
formance. The benefits from our previous knowledge management projects continue to
add up. Two major oil companies have now documented cost savings of hundreds of mil-
lions of dollars thanks to our world-class knowledge management practices.
20
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Always seeking to deliver more timely services, SAIC’s North
American Integrated Service Management Center improves productivity
and IT systems availability for its customers. Global remote monitoring
of Department of Defense health care information systems greatly
improved system availability. The center also improved data collection
accuracy and problem resolution processes for Regal Entertainment
Group, the largest U.S. theater chain, and Bristol-Myers Squibb, one of
the world’s leaders in pharmaceuticals and health care products.
ery with the economies of scale offered by our ISMCs in North America and Europe. For
example, our European ISMC is migrating applications to add functionality and reduce
support costs for ScottishPower, one of the largest utilities in the United Kingdom. Our
North American ISMC improved cost efficiencies and IT asset tracking for the U.S.
Department of Energy, and at the same time, improved computer performance by per-
forming critical desktop scans, reducing IT cycle times up to 25%.
With our unique dual expertise in IT and telecommunications, we understand how to
support our clients’ business goals by optimizing and adding efficiencies to their com-
munications systems. The full-service IT outsourcing we provide for Calpine Corpora-
tion, a leading North American power company, includes desktop service and support for
2,600 desktops as well as monitoring network routers and switches, and providing voice,
video, and teleconferencing services for 126 locations throughout the United States.
SAIC builds business value on a strong technical foundation. We are integrating all IT
service lines and providing software management to help reduce cost and enhance busi-
ness performance for Alyeska Pipeline Service Company. We help clients such as phar-
maceutical giant Bristol-Myers Squibb achieve strategic alignment with an array of IT
services, including unique, industry- and company-specific help desk support.
Acknowledged as a leader in distributed computing and help desk services, SAIC
manages 100,000 desktops and thousands of applications and servers worldwide, and
provides an additional 35,000 users with help desk services.
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“If you have complex technology challenges, consider SAIC.”
Yankee Group
SAIC goes the extra mile to deliver solutions with real business value to its outsourcing
clients. We use a unique service aggregator model that combines SAIC’s vendor neutral-
ity and flexible business models with expertise in IT and business processes. Our model
not only enables us to deliver solutions that reduce costs and optimize IT and commu-
nications assets, it also allows us to forge strong working relationships with our clients.
For example, after three years of outsourcing service, Entergy’s high level of customer
satisfaction with SAIC has been verified by independent, third-party surveys. IT staff
retention has improved significantly, reducing the attrition rate to below 10%. Service has
also benefited. The dedicated Integrated Service Management CenterSM (ISMC) that
serves Entergy improved customer service response time by 33%.
Our service aggregator model calls for going the distance to find the best solution for
each customer. To create a highly cost-effective solution to support BP North America’s
applications portfolio, we blend onshore and offshore support. SAIC provides business
and industry expertise and a rapid on-site response capability in North America, while
teams in India provide world-class technology and applications support.
For many of our clients, the best outsourcing solution couples improved service deliv-
20
21
Always seeking to deliver more timely services, SAIC’s North
American Integrated Service Management Center improves productivity
and IT systems availability for its customers. Global remote monitoring
of Department of Defense health care information systems greatly
improved system availability. The center also improved data collection
accuracy and problem resolution processes for Regal Entertainment
Group, the largest U.S. theater chain, and Bristol-Myers Squibb, one of
the world’s leaders in pharmaceuticals and health care products.
ery with the economies of scale offered by our ISMCs in North America and Europe. For
example, our European ISMC is migrating applications to add functionality and reduce
support costs for ScottishPower, one of the largest utilities in the United Kingdom. Our
North American ISMC improved cost efficiencies and IT asset tracking for the U.S.
Department of Energy, and at the same time, improved computer performance by per-
forming critical desktop scans, reducing IT cycle times up to 25%.
With our unique dual expertise in IT and telecommunications, we understand how to
support our clients’ business goals by optimizing and adding efficiencies to their com-
munications systems. The full-service IT outsourcing we provide for Calpine Corpora-
tion, a leading North American power company, includes desktop service and support for
2,600 desktops as well as monitoring network routers and switches, and providing voice,
video, and teleconferencing services for 126 locations throughout the United States.
SAIC builds business value on a strong technical foundation. We are integrating all IT
service lines and providing software management to help reduce cost and enhance busi-
ness performance for Alyeska Pipeline Service Company. We help clients such as phar-
maceutical giant Bristol-Myers Squibb achieve strategic alignment with an array of IT
services, including unique, industry- and company-specific help desk support.
Acknowledged as a leader in distributed computing and help desk services, SAIC
manages 100,000 desktops and thousands of applications and servers worldwide, and
provides an additional 35,000 users with help desk services.
O
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t
s
o
u
r
c
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“If you have complex technology challenges, consider SAIC.”
Yankee Group
SAIC goes the extra mile to deliver solutions with real business value to its outsourcing
clients. We use a unique service aggregator model that combines SAIC’s vendor neutral-
ity and flexible business models with expertise in IT and business processes. Our model
not only enables us to deliver solutions that reduce costs and optimize IT and commu-
nications assets, it also allows us to forge strong working relationships with our clients.
For example, after three years of outsourcing service, Entergy’s high level of customer
satisfaction with SAIC has been verified by independent, third-party surveys. IT staff
retention has improved significantly, reducing the attrition rate to below 10%. Service has
also benefited. The dedicated Integrated Service Management CenterSM (ISMC) that
serves Entergy improved customer service response time by 33%.
Our service aggregator model calls for going the distance to find the best solution for
each customer. To create a highly cost-effective solution to support BP North America’s
applications portfolio, we blend onshore and offshore support. SAIC provides business
and industry expertise and a rapid on-site response capability in North America, while
teams in India provide world-class technology and applications support.
For many of our clients, the best outsourcing solution couples improved service deliv-
22
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Lauded as one of the top e-government initiatives in the U.S.,
DisasterHelp.gov consolidates federal and other disaster programs
under a single Web portal. Spearheaded by the Federal Emergency
Management Agency and created by SAIC, the one-stop portal connects
citizens and first responders to services and resources from 26
agencies.
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In today’s complex IT environment, it takes an experienced integrator to enable clients
to realize the promise of the Internet. SAIC has the real-world experience to help clients
leverage the Internet and successfully integrate and streamline operations across enter-
prises and supply chains.
Our experience encompasses all areas essential to e-business and e-government
success: from transactional systems and collaborative portals to large-scale private
networks, from availability management and bandwidth optimization to cybersecurity.
We draw on this wealth of experience to help clients better understand and evaluate
competing applications, platforms, standards, and service providers, and to develop
solutions that are attuned to clients’ business needs.
We helped Rolls-Royce enhance its business model by creating a portal that allows
airlines to monitor the health and condition of their Rolls-Royce aircraft engines on the
ground and in the air, in real time. The portal also provides predictions of future engine
service needs to help airlines better plan fleet maintenance to save costs and prevent
service disruption. Our Data Systems & Solutions joint venture integrated and operates
the portal, linking remote sensors and sophisticated monitoring and predictive systems.
In the U.S. Army, up-to-date personnel records are essential for deployment as well
as promotions. SAIC currently supports the program management office for the Army
Personnel Electronic Records Management System (PERMS). The Web-based system
we developed for the Army National Guard has been identified as the template archi-
tecture for a new PERMS. The National Guard system will be deployed throughout all
50 states and the four U.S. trust territories.
Improved collaboration and customer focus resulted when SAIC undertook important
e-government initiatives highlighted by the Bush administration. For the Federal
Emergency Management Agency (FEMA), we created and
launched the
DisasterHelp.gov portal for the public and the first responder community. The portal gives
more than 4 million first responders – firefighters, police officers, and emergency med-
ical workers – a one-stop site to collaborate, share best practices, and access information
and services across FEMA and 26 other agencies.
This work is part of a larger FEMA initiative to convert to an Internet infrastructure.
SAIC is helping plan and implement the enterprise architecture to create “e-FEMA.”
In another groundbreaking initiative for the Bush administration, SAIC provides inte-
gration support to the GeoSpatial One-Stop portal. Because geospatial data has been cre-
ated by all levels of government in different formats, it has been difficult to access
among, and sometimes within, agencies. SAIC also hosts the initial version of the portal,
which is built on OpenGIS standards-based technology. When complete, the portal will
allow federal, state, and local agencies to access geospatial datasets for emergency
response and other uses, regardless of the format in which those datasets were created.
22
23
Lauded as one of the top e-government initiatives in the U.S.,
DisasterHelp.gov consolidates federal and other disaster programs
under a single Web portal. Spearheaded by the Federal Emergency
Management Agency and created by SAIC, the one-stop portal connects
citizens and first responders to services and resources from 26
agencies.
-
S
e
o
l
u
t
i
o n s
In today’s complex IT environment, it takes an experienced integrator to enable clients
to realize the promise of the Internet. SAIC has the real-world experience to help clients
leverage the Internet and successfully integrate and streamline operations across enter-
prises and supply chains.
Our experience encompasses all areas essential to e-business and e-government
success: from transactional systems and collaborative portals to large-scale private
networks, from availability management and bandwidth optimization to cybersecurity.
We draw on this wealth of experience to help clients better understand and evaluate
competing applications, platforms, standards, and service providers, and to develop
solutions that are attuned to clients’ business needs.
We helped Rolls-Royce enhance its business model by creating a portal that allows
airlines to monitor the health and condition of their Rolls-Royce aircraft engines on the
ground and in the air, in real time. The portal also provides predictions of future engine
service needs to help airlines better plan fleet maintenance to save costs and prevent
service disruption. Our Data Systems & Solutions joint venture integrated and operates
the portal, linking remote sensors and sophisticated monitoring and predictive systems.
In the U.S. Army, up-to-date personnel records are essential for deployment as well
as promotions. SAIC currently supports the program management office for the Army
Personnel Electronic Records Management System (PERMS). The Web-based system
we developed for the Army National Guard has been identified as the template archi-
tecture for a new PERMS. The National Guard system will be deployed throughout all
50 states and the four U.S. trust territories.
Improved collaboration and customer focus resulted when SAIC undertook important
e-government initiatives highlighted by the Bush administration. For the Federal
Emergency Management Agency (FEMA), we created and
launched the
DisasterHelp.gov portal for the public and the first responder community. The portal gives
more than 4 million first responders – firefighters, police officers, and emergency med-
ical workers – a one-stop site to collaborate, share best practices, and access information
and services across FEMA and 26 other agencies.
This work is part of a larger FEMA initiative to convert to an Internet infrastructure.
SAIC is helping plan and implement the enterprise architecture to create “e-FEMA.”
In another groundbreaking initiative for the Bush administration, SAIC provides inte-
gration support to the GeoSpatial One-Stop portal. Because geospatial data has been cre-
ated by all levels of government in different formats, it has been difficult to access
among, and sometimes within, agencies. SAIC also hosts the initial version of the portal,
which is built on OpenGIS standards-based technology. When complete, the portal will
allow federal, state, and local agencies to access geospatial datasets for emergency
response and other uses, regardless of the format in which those datasets were created.
24
25
Solutions for Key Vertical Markets
e
-
S
o
l
u
t
i
o
n
s
We created an impressive Internet infrastructure when we integrated the ANX®
Network, the only multi-provider private network operating worldwide. Now owned and
managed by our ANXeBusiness Corporation subsidiary, the network serves more than
1,400 companies, including nearly 90% of the Tier 1 suppliers to the North American
automotive industry. The ANX Network recently linked with the JNX private network to
better serve the automotive industry in the Asia-Pacific region.
We worked on a wide range of other Internet initiatives, including e-commerce con-
sulting to Alabama Power, Alyeska Pipeline, and the City of San Antonio, Texas.
To help ease the burden on America’s farmers, SAIC worked with the U.S.
Department of Agriculture and Synergetics, Inc. to build a prototype portal that allows
conservation contracts to be created, approved, and certified online. The team used a
rapid application development approach and Web-based collaboration tools to quickly
create the Program Contracts System (Protracts) portal.
(Above) A prototype portal gives U.S. Department of Agriculture employees the ability to create
conservation contracts online and in the field. Created with key technical support from SAIC, the portal
can customize geospatial, program, and cost information from farm to farm.
24
25
Solutions for Key Vertical Markets
e
-
S
o
l
u
t
i
o
n
s
We created an impressive Internet infrastructure when we integrated the ANX®
Network, the only multi-provider private network operating worldwide. Now owned and
managed by our ANXeBusiness Corporation subsidiary, the network serves more than
1,400 companies, including nearly 90% of the Tier 1 suppliers to the North American
automotive industry. The ANX Network recently linked with the JNX private network to
better serve the automotive industry in the Asia-Pacific region.
We worked on a wide range of other Internet initiatives, including e-commerce con-
sulting to Alabama Power, Alyeska Pipeline, and the City of San Antonio, Texas.
To help ease the burden on America’s farmers, SAIC worked with the U.S.
Department of Agriculture and Synergetics, Inc. to build a prototype portal that allows
conservation contracts to be created, approved, and certified online. The team used a
rapid application development approach and Web-based collaboration tools to quickly
create the Program Contracts System (Protracts) portal.
(Above) A prototype portal gives U.S. Department of Agriculture employees the ability to create
conservation contracts online and in the field. Created with key technical support from SAIC, the portal
can customize geospatial, program, and cost information from farm to farm.
26
27
I
n the complex and dynamic telecommunications environment, SAIC and its Telcordia
Technologies subsidiary have unique credentials to help customers meet their business
objectives. The breadth and depth of our expertise spans the technology spectrum, from
traditional voice and fixed services, to data, optical, satellite, Internet Protocol (IP), and
wireless. We know how to optimize complex combinations of technologies and services,
such as multimedia wireless IP networks.
We have unmatched experience in integrating different kinds of provider networks
with each other and with enterprise networks. We excel at helping new networks live up
to their potential and existing networks deliver new levels of performance, service,
security, and profitability.
Together, SAIC and Telcordia offer world-class capabilities in telecommunications
systems, software, and integration; the commitment to understand our customers’ busi-
ness, operational, and network challenges; and the promise to deliver creative solutions
designed to meet our customers’ needs.
Wireless. From Wi-Fi “hotspots” for high-speed wireless Internet to the latest
developments in third-generation (3G) and GPRS networks, our experts are on the
cutting edge of new wireless technologies, standards, and service management models.
Both Nokia and Toshiba Corp. turned to Telcordia to help develop software for new
3G offerings. Collaborative research by Telcordia and Toshiba is helping maximize
quality of service and security for always-on 3G wireless Internet services. Telcordia
intelligent network platforms – incorporated into Nokia’s mCreate® architecture – help
telecom providers offer their customers higher-profit services, such as prepaid data
roaming, to 3G mobile networks.
The same Telcordia intelligent network platform helped the United Kingdom’s leading
mobile operator and a dynamic U.S. newcomer create and launch new growth- and
profit-oriented services. With the Telcordia platform as the foundation, Orange UK
became the first network to offer advanced data services – such as mobile e-mail,
Internet access, alerts, and photo messaging – over GPRS to “pay as you go” customers.
Robust satellite communications are essential for global enterprises such as Halliburton. We
integrated and dramatically increased the performance of Halliburton’s worldwide, high-speed data,
voice, and video network, and currently manage network operations.
T e l e c o m m u n i c a t i o n s
Virgin Mobile USA – a joint venture between Virgin Group and Sprint – took
advantage of the same Telcordia technology to support voice and data capabilities as well
as help customers quickly set up their cellular accounts and manage their balances.
Telcordia and SAIC staff explore ways to help providers leverage Wi-Fi hotspots for
future 3G deployments. Special Wi-Fi testbeds at our facilities in San Diego and near
Washington, D.C., evaluate emerging 802.11 standards and new ways to secure 802.11
communications for providers and enterprises. High-speed data transfers from our
802.11 deployments have enabled better field monitoring of a major BP natural gas field,
a Ford®experimental vehicle, and simulated combat on the U.S. Army’s top training range.
26
27
I
n the complex and dynamic telecommunications environment, SAIC and its Telcordia
Technologies subsidiary have unique credentials to help customers meet their business
objectives. The breadth and depth of our expertise spans the technology spectrum, from
traditional voice and fixed services, to data, optical, satellite, Internet Protocol (IP), and
wireless. We know how to optimize complex combinations of technologies and services,
such as multimedia wireless IP networks.
We have unmatched experience in integrating different kinds of provider networks
with each other and with enterprise networks. We excel at helping new networks live up
to their potential and existing networks deliver new levels of performance, service,
security, and profitability.
Together, SAIC and Telcordia offer world-class capabilities in telecommunications
systems, software, and integration; the commitment to understand our customers’ busi-
ness, operational, and network challenges; and the promise to deliver creative solutions
designed to meet our customers’ needs.
Wireless. From Wi-Fi “hotspots” for high-speed wireless Internet to the latest
developments in third-generation (3G) and GPRS networks, our experts are on the
cutting edge of new wireless technologies, standards, and service management models.
Both Nokia and Toshiba Corp. turned to Telcordia to help develop software for new
3G offerings. Collaborative research by Telcordia and Toshiba is helping maximize
quality of service and security for always-on 3G wireless Internet services. Telcordia
intelligent network platforms – incorporated into Nokia’s mCreate® architecture – help
telecom providers offer their customers higher-profit services, such as prepaid data
roaming, to 3G mobile networks.
The same Telcordia intelligent network platform helped the United Kingdom’s leading
mobile operator and a dynamic U.S. newcomer create and launch new growth- and
profit-oriented services. With the Telcordia platform as the foundation, Orange UK
became the first network to offer advanced data services – such as mobile e-mail,
Internet access, alerts, and photo messaging – over GPRS to “pay as you go” customers.
Robust satellite communications are essential for global enterprises such as Halliburton. We
integrated and dramatically increased the performance of Halliburton’s worldwide, high-speed data,
voice, and video network, and currently manage network operations.
T e l e c o m m u n i c a t i o n s
Virgin Mobile USA – a joint venture between Virgin Group and Sprint – took
advantage of the same Telcordia technology to support voice and data capabilities as well
as help customers quickly set up their cellular accounts and manage their balances.
Telcordia and SAIC staff explore ways to help providers leverage Wi-Fi hotspots for
future 3G deployments. Special Wi-Fi testbeds at our facilities in San Diego and near
Washington, D.C., evaluate emerging 802.11 standards and new ways to secure 802.11
communications for providers and enterprises. High-speed data transfers from our
802.11 deployments have enabled better field monitoring of a major BP natural gas field,
a Ford®experimental vehicle, and simulated combat on the U.S. Army’s top training range.
28
29
New Generation Systems and Services. Telcordia, the leading provider of
operations support systems (OSSs) for the telecom industry, introduced a new solution
to manage the complexities of Internet Protocol (IP) networks with converged voice and
data services. Telcordia® Managed IP Solutions allow providers to accurately and easily
reconfigure the network core and edges, to optimize bandwidth and resource utilization,
and to resolve traffic flow problems and network faults before they impact service. These
solutions also enable enterprise customers to self-provision virtual private networks and
monitor Service Level Agreements (SLAs). Telcordia Managed IP Solutions were quickly
adopted for trials by a major incumbent carrier.
When PT. Telekomunikasi Indonesia and network integrator Syspol Co., LTD
launched their new hybrid fiber coaxial cable network supplying television, Internet
telephone, and high-speed Internet data service in 2002, the network relied on the
Telcordia® Call Agent as the central component of its Internet telephone solution. PT.
Telekom and Syspol chose the Call Agent software to provide carrier-grade Class 5
switching for the voice-over-IP service without the need for a traditional hardware
switch.
Telecom providers are realizing a new revenue opportunity by hosting call center
services for enterprises. A new solution created by Telcordia, Microsoft, and CosmoCom
allows service providers to quickly deploy a hosted contact center platform over existing
network infrastructures. The new platform allows service providers to offer enhanced
services – such as interactive voice response, Web collaboration, real-time reporting, and
live multichannel IP sessions – over many different types of networks.
Telcordia is also working on multiple initiatives that utilize third-party products to help
service providers capitalize on new, more profitable services. Telcordia staff ported key
OSSs to operate on IBM eServer™ pSeries™ hardware. This combination provides robust
hardware with renowned Telcordia reliability and OSS scalability.
In addition, the Telcordia® Open Services Gateway – which enables cutting-edge
services such as click-to-dial and replenishment of prepaid balances via automated teller
machines – now supports the Java™ programming language, CORBA® architecture, and
XML language.
New providers and enterprises seeking to avoid infrastructure costs have turned to
SAIC to host operations and business support systems. Our RapidApps™ center hosts
services for subscriber billing, service activation, service assurance, and automated
workflow. SAIC also provides customer care and billing outsourcing for one of the largest
counties in the United States.
A joint research project between Telcordia and Toshiba America Research, Inc. integrates Internet
and wireless technology to develop third-generation (3G) wireless systems that will give users access
to voice, data, and multimedia services anywhere, anytime.
T e
l
e
c
o m m u
n
i
c
a
t
i
o n s
Emerging Bluetooth™ and 802.11 wireless technologies and voice-recognition tech-
nologies form the basis for a new automotive navigation platform integrated by SAIC.
The platform delivers turn-by-turn driving directions and real-time traffic information via
the driver’s Personal Digital Assistant (PDA) or Bluetooth-enabled cell phone.
Telcordia and SAIC help telecom providers maximize return on investment in many
ways. When we integrated a large fleet management system with advanced wireless and
positioning technologies, we significantly exceeded BellSouth’s goals for productivity and
payback. Even more important for BellSouth, the system saved lives. It brought fast help
when field technicians faced medical emergencies and criminal acts.
28
29
New Generation Systems and Services. Telcordia, the leading provider of
operations support systems (OSSs) for the telecom industry, introduced a new solution
to manage the complexities of Internet Protocol (IP) networks with converged voice and
data services. Telcordia® Managed IP Solutions allow providers to accurately and easily
reconfigure the network core and edges, to optimize bandwidth and resource utilization,
and to resolve traffic flow problems and network faults before they impact service. These
solutions also enable enterprise customers to self-provision virtual private networks and
monitor Service Level Agreements (SLAs). Telcordia Managed IP Solutions were quickly
adopted for trials by a major incumbent carrier.
When PT. Telekomunikasi Indonesia and network integrator Syspol Co., LTD
launched their new hybrid fiber coaxial cable network supplying television, Internet
telephone, and high-speed Internet data service in 2002, the network relied on the
Telcordia® Call Agent as the central component of its Internet telephone solution. PT.
Telekom and Syspol chose the Call Agent software to provide carrier-grade Class 5
switching for the voice-over-IP service without the need for a traditional hardware
switch.
Telecom providers are realizing a new revenue opportunity by hosting call center
services for enterprises. A new solution created by Telcordia, Microsoft, and CosmoCom
allows service providers to quickly deploy a hosted contact center platform over existing
network infrastructures. The new platform allows service providers to offer enhanced
services – such as interactive voice response, Web collaboration, real-time reporting, and
live multichannel IP sessions – over many different types of networks.
Telcordia is also working on multiple initiatives that utilize third-party products to help
service providers capitalize on new, more profitable services. Telcordia staff ported key
OSSs to operate on IBM eServer™ pSeries™ hardware. This combination provides robust
hardware with renowned Telcordia reliability and OSS scalability.
In addition, the Telcordia® Open Services Gateway – which enables cutting-edge
services such as click-to-dial and replenishment of prepaid balances via automated teller
machines – now supports the Java™ programming language, CORBA® architecture, and
XML language.
New providers and enterprises seeking to avoid infrastructure costs have turned to
SAIC to host operations and business support systems. Our RapidApps™ center hosts
services for subscriber billing, service activation, service assurance, and automated
workflow. SAIC also provides customer care and billing outsourcing for one of the largest
counties in the United States.
A joint research project between Telcordia and Toshiba America Research, Inc. integrates Internet
and wireless technology to develop third-generation (3G) wireless systems that will give users access
to voice, data, and multimedia services anywhere, anytime.
T e
l
e
c
o m m u
n
i
c
a
t
i
o n s
Emerging Bluetooth™ and 802.11 wireless technologies and voice-recognition tech-
nologies form the basis for a new automotive navigation platform integrated by SAIC.
The platform delivers turn-by-turn driving directions and real-time traffic information via
the driver’s Personal Digital Assistant (PDA) or Bluetooth-enabled cell phone.
Telcordia and SAIC help telecom providers maximize return on investment in many
ways. When we integrated a large fleet management system with advanced wireless and
positioning technologies, we significantly exceeded BellSouth’s goals for productivity and
payback. Even more important for BellSouth, the system saved lives. It brought fast help
when field technicians faced medical emergencies and criminal acts.
30
31
Supervisory control and data acquisition (SCADA) systems monitor and control hydrocarbon
production. SAIC maintains, analyzes, and troubleshoots these systems for clients such as BP. We are
exploring ways to better protect SCADA systems from cyber attack through our R&D efforts.
millions of barrels of oil safely across 800 miles of Alaska. We manage network and back-
office services, and serve as the single point of contact for help desk and desktop services
companywide. Our professionals also help manage and upgrade applications critical to
Alyeska’s operations.
In addition, we formed an alliance with Edinburgh Petroleum Services to implement
an intelligent system that helps oil and gas customers increase production revenues and
reduce the “lifting costs” to take oil and gas out of the ground. The system monitors large
producing fields, and automates daily production engineering tasks such as data
management, optimization, and surveillance – including adjustment of reservoir flow.
To help BP lower lifting costs and improve efficiency in its U.S. upstream operations,
BP turned to SAIC for IT outsourcing. We now stand as the single-point provider for IT
services to BP’s upstream business units in the continental U.S. Our Houston staff
provides data management, applications support, and Web development.
We previously integrated a high-speed broadband satellite network that helps
Halliburton’s clients receive test drilling data more efficiently, and are integrating a
similar network for a major oil company. The network will deliver accounting data from
remote locations faster so that invoices are issued more quickly, improving cash flow.
“SAIC has demonstrated flexibility in responding to the changes
in Entergy’s business in the dynamic energy and utilities sector.
Their willingness to work closely with Entergy to help us
achieve our business objectives during turbulent times has been
both a difficult challenge and a distinguishing characteristic.”
Ray Johnson, Vice President and CIO, Entergy
D
E
n
e
r
g
y
espite unprecedented volatility and change in the energy industry, energy
continues to drive world economic growth and development. To help foster this progress,
we integrate solutions that enable our customers to reduce costs, streamline operations,
and operate more effectively.
Oil and Gas. Our deep industry experience, gained from helping oil and gas customers
innovate for nearly 30 years, enables our customers to maximize efficiencies and profits,
and better manage change. Whether they seek innovative outsourcing solutions or more
efficient ways to pull oil from the ground or communicate with remote employees, our
customers know that we can meet their needs.
For example, SAIC developed a new, more flexible IT outsourcing model to help
Alyeska Pipeline Service Company reduce costs and focus on its core business of moving
30
31
Supervisory control and data acquisition (SCADA) systems monitor and control hydrocarbon
production. SAIC maintains, analyzes, and troubleshoots these systems for clients such as BP. We are
exploring ways to better protect SCADA systems from cyber attack through our R&D efforts.
millions of barrels of oil safely across 800 miles of Alaska. We manage network and back-
office services, and serve as the single point of contact for help desk and desktop services
companywide. Our professionals also help manage and upgrade applications critical to
Alyeska’s operations.
In addition, we formed an alliance with Edinburgh Petroleum Services to implement
an intelligent system that helps oil and gas customers increase production revenues and
reduce the “lifting costs” to take oil and gas out of the ground. The system monitors large
producing fields, and automates daily production engineering tasks such as data
management, optimization, and surveillance – including adjustment of reservoir flow.
To help BP lower lifting costs and improve efficiency in its U.S. upstream operations,
BP turned to SAIC for IT outsourcing. We now stand as the single-point provider for IT
services to BP’s upstream business units in the continental U.S. Our Houston staff
provides data management, applications support, and Web development.
We previously integrated a high-speed broadband satellite network that helps
Halliburton’s clients receive test drilling data more efficiently, and are integrating a
similar network for a major oil company. The network will deliver accounting data from
remote locations faster so that invoices are issued more quickly, improving cash flow.
“SAIC has demonstrated flexibility in responding to the changes
in Entergy’s business in the dynamic energy and utilities sector.
Their willingness to work closely with Entergy to help us
achieve our business objectives during turbulent times has been
both a difficult challenge and a distinguishing characteristic.”
Ray Johnson, Vice President and CIO, Entergy
D
E
n
e
r
g
y
espite unprecedented volatility and change in the energy industry, energy
continues to drive world economic growth and development. To help foster this progress,
we integrate solutions that enable our customers to reduce costs, streamline operations,
and operate more effectively.
Oil and Gas. Our deep industry experience, gained from helping oil and gas customers
innovate for nearly 30 years, enables our customers to maximize efficiencies and profits,
and better manage change. Whether they seek innovative outsourcing solutions or more
efficient ways to pull oil from the ground or communicate with remote employees, our
customers know that we can meet their needs.
For example, SAIC developed a new, more flexible IT outsourcing model to help
Alyeska Pipeline Service Company reduce costs and focus on its core business of moving
32
33
SAIC Consultancy. By drawing on our deep scientific experience and innovative
business solutions, SAIC Consulting helps clients such as BP, Shell, and ChevronTexaco
manage digital oil field initiatives and business challenges such as integrating mergers,
optimizing business processes, and organizational transformation. Our expertise in
creating oil recovery technologies, such as virtual control rooms and advanced reservoir
simulations, can help generate increases in oil field production and lifetime.
Last fiscal year, SAIC Consulting acquired Arthur Andersen’s North American Oil and
Gas practice. Our new consultants continue to perform their well-known benchmarking
of major and mid-tier oil companies to measure the efficiency of general and
administrative cost structures, and they recently initiated a benchmarking study to
address operating costs and capital expenditures.
Knowledge Management. Our knowledge management solutions help clients world-
wide save millions of dollars by improving business processes and enhancing
productivity. For example, our knowledge experts worked with Unocal to improve
electrical submersible pump operations in Alaska, artificial lift processes in Thailand, and
the design and delivery of well completions in the Gulf of Mexico and Indonesia. We also
helped Amerada Hess complete two successful knowledge management projects for
production wells in Algeria and high-pressure/high-temperature wells in Norway. To date,
the projects have increased performance and saved several million dollars.
Utilities. For more than three decades, we have helped some of the world’s largest
energy companies improve service, efficiency, and business continuity.
When two hurricanes ripped through Entergy’s service territory in 10 days, we helped
manage IT operations as Entergy restored power to the affected homes and businesses.
To sustain Entergy’s business operations during the storms, our “ride-out” teams
monitored IT infrastructure on site while backup teams stood ready to restore critical
systems from a remote site. Our failure planning scenarios and up-to-date contingency
plans paid off as we kept IT systems functioning during both hurricanes.
In addition, we helped Entergy rapidly integrate the information systems and
infrastructure of the Vermont Yankee nuclear power plant. This was the fourth nuclear
plant acquired by Entergy and successfully integrated by our IT team in the past three
years. According to an independent analyst, SAIC’s IT service delivery to Entergy scored
in the top 2% of companies surveyed for end-user satisfaction, and Entergy spent $37
million less than its peers for comparable IT services.
To gain higher-quality services and control costs, an important new client chose us for
IT outsourcing and infrastructure support services: Calpine Corporation, the leading
independent power producer in the U.S. We provide Calpine with infrastructure support
services, including help desk, desktop, and network services. We continued to provide
business consulting and wide-ranging IT services to support ScottishPower in its delivery
of service to seven million homes and businesses across the U.K. and western U.S.
For Entergy’s River Bend Nuclear Station, we provide strategic infrastructure planning, support more
than 850 desktops, and provide IT support during refueling outages.
E
n
e
r
g
y
By acquiring the nuclear part of Schneider Electric’s business, our Data Systems &
Solutions joint venture has 200 experts in Grenoble, France, who can provide our
nuclear clients with the latest digital reactor instrumentation and controls technology.
Public Energy. Whether customers seek to conserve fossil energy, purchase energy
more efficiently, or protect critical infrastructure, we can help. We assess physical and
cyber risks to power plants, energy pipelines, water utilities, and Department of Energy
nuclear facilities. DOE also uses our research to assess hydrogen programs that could
establish a hydrogen infrastructure and help industry commercialize fuel cell vehicles.
An SAIC-led study for Tennessee Valley Authority resulted in the launch of the Power
System Optimization Project. PSOP will provide the real-time generation, transmission,
and customer data required to operate TVA’s power system more reliably and efficiently.
PSOP includes the development of enhanced applications, data displays, and analysis
tools to support these improvements. We also work with the Wisconsin and New York
state energy offices to implement energy efficiency programs for state and local agencies
and commercial and industrial clients. And for the State University of New York, we eval-
uate Internet-based metering technologies and cost management data on energy usage.
32
33
SAIC Consultancy. By drawing on our deep scientific experience and innovative
business solutions, SAIC Consulting helps clients such as BP, Shell, and ChevronTexaco
manage digital oil field initiatives and business challenges such as integrating mergers,
optimizing business processes, and organizational transformation. Our expertise in
creating oil recovery technologies, such as virtual control rooms and advanced reservoir
simulations, can help generate increases in oil field production and lifetime.
Last fiscal year, SAIC Consulting acquired Arthur Andersen’s North American Oil and
Gas practice. Our new consultants continue to perform their well-known benchmarking
of major and mid-tier oil companies to measure the efficiency of general and
administrative cost structures, and they recently initiated a benchmarking study to
address operating costs and capital expenditures.
Knowledge Management. Our knowledge management solutions help clients world-
wide save millions of dollars by improving business processes and enhancing
productivity. For example, our knowledge experts worked with Unocal to improve
electrical submersible pump operations in Alaska, artificial lift processes in Thailand, and
the design and delivery of well completions in the Gulf of Mexico and Indonesia. We also
helped Amerada Hess complete two successful knowledge management projects for
production wells in Algeria and high-pressure/high-temperature wells in Norway. To date,
the projects have increased performance and saved several million dollars.
Utilities. For more than three decades, we have helped some of the world’s largest
energy companies improve service, efficiency, and business continuity.
When two hurricanes ripped through Entergy’s service territory in 10 days, we helped
manage IT operations as Entergy restored power to the affected homes and businesses.
To sustain Entergy’s business operations during the storms, our “ride-out” teams
monitored IT infrastructure on site while backup teams stood ready to restore critical
systems from a remote site. Our failure planning scenarios and up-to-date contingency
plans paid off as we kept IT systems functioning during both hurricanes.
In addition, we helped Entergy rapidly integrate the information systems and
infrastructure of the Vermont Yankee nuclear power plant. This was the fourth nuclear
plant acquired by Entergy and successfully integrated by our IT team in the past three
years. According to an independent analyst, SAIC’s IT service delivery to Entergy scored
in the top 2% of companies surveyed for end-user satisfaction, and Entergy spent $37
million less than its peers for comparable IT services.
To gain higher-quality services and control costs, an important new client chose us for
IT outsourcing and infrastructure support services: Calpine Corporation, the leading
independent power producer in the U.S. We provide Calpine with infrastructure support
services, including help desk, desktop, and network services. We continued to provide
business consulting and wide-ranging IT services to support ScottishPower in its delivery
of service to seven million homes and businesses across the U.K. and western U.S.
For Entergy’s River Bend Nuclear Station, we provide strategic infrastructure planning, support more
than 850 desktops, and provide IT support during refueling outages.
E
n
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y
By acquiring the nuclear part of Schneider Electric’s business, our Data Systems &
Solutions joint venture has 200 experts in Grenoble, France, who can provide our
nuclear clients with the latest digital reactor instrumentation and controls technology.
Public Energy. Whether customers seek to conserve fossil energy, purchase energy
more efficiently, or protect critical infrastructure, we can help. We assess physical and
cyber risks to power plants, energy pipelines, water utilities, and Department of Energy
nuclear facilities. DOE also uses our research to assess hydrogen programs that could
establish a hydrogen infrastructure and help industry commercialize fuel cell vehicles.
An SAIC-led study for Tennessee Valley Authority resulted in the launch of the Power
System Optimization Project. PSOP will provide the real-time generation, transmission,
and customer data required to operate TVA’s power system more reliably and efficiently.
PSOP includes the development of enhanced applications, data displays, and analysis
tools to support these improvements. We also work with the Wisconsin and New York
state energy offices to implement energy efficiency programs for state and local agencies
and commercial and industrial clients. And for the State University of New York, we eval-
uate Internet-based metering technologies and cost management data on energy usage.
34
35
Unmanned ground vehicles require advanced perception systems to identify and navigate around
a variety of off-road obstacles. Our RAPTOR testbed vehicle, which uses active and passive sensors
and intelligent navigation software, is helping to develop an autonomous mobility architecture for the
Future Combat Systems program.
Research and Development. Responding to rapidly evolving security threats requires
innovative research to better protect our forces in the field. To support the near-term
requirements of combatant commanders, we are providing systems engineering,
integration, software engineering, and training for a Chemical Combat Assessment
System (CCAS) for the Defense Threat Reduction Agency. CCAS is a kit that can be
field-installed onto the U.S. Air Force Predator MQ-1 unmanned aerial vehicle to provide
post-strike chemical bomb damage assessment. It provides both standoff and remote
detection, identification, tracking, and characterization of post-strike chemical plumes.
To help speed development of a ballistic missile defense system, we are providing
wide-ranging support to the Missile Defense Agency (MDA). For example, we are
supporting the Near-Field Infrared Experiment, which will collect data to help verify
performance of the kill vehicle and tracking sensors for boost and ascent phase
engagements, and provide the foundation for developing the Ballistic Missile Defense
System Interceptors Program.
To help the Army transform to a lighter, smarter, more lethal force, SAIC and Boeing
work together as the lead integrators on the Future Combat Systems (FCS) program. We
are evaluating network-centric concepts and technologies – and conducting
“(SAIC staff) and the DDE (Direct Dissemination Element)
System helped to bring the Global Hawk System’s impressive
capabilities to bear in Operation Enduring Freedom in a timely,
effective, and efficient manner with great success.”
Brigadier General John F. Kimmons, Director of Intelligence, U.S. Central Command
A
N a t i o n a l
S e c u r i t y
fter playing an important role in national security for more than 34 years,
SAIC today is helping the United States and its allies fight the first war of the 21st
century. From military bases worldwide to the headquarters of the Unified Commands
and throughout the intelligence community, our information technology expertise,
systems integration skills, digital communications systems, and intelligence solutions
support military forces in the global war on terrorism. In Iraq, we provided around-the-
clock operational support for Tomahawk cruise missile launches. We also trained Navy
dolphins to detect and mark mine locations, supported training missions for Predator
unmanned aerial vehicles, and are helping create a free Iraqi media.
Looking to the future, we are helping the U.S. Department of Defense and military
services achieve their transformation goals, such as developing future combat systems,
enhancing joint warfare capabilities, and implementing network-centric strategies.
34
35
Unmanned ground vehicles require advanced perception systems to identify and navigate around
a variety of off-road obstacles. Our RAPTOR testbed vehicle, which uses active and passive sensors
and intelligent navigation software, is helping to develop an autonomous mobility architecture for the
Future Combat Systems program.
Research and Development. Responding to rapidly evolving security threats requires
innovative research to better protect our forces in the field. To support the near-term
requirements of combatant commanders, we are providing systems engineering,
integration, software engineering, and training for a Chemical Combat Assessment
System (CCAS) for the Defense Threat Reduction Agency. CCAS is a kit that can be
field-installed onto the U.S. Air Force Predator MQ-1 unmanned aerial vehicle to provide
post-strike chemical bomb damage assessment. It provides both standoff and remote
detection, identification, tracking, and characterization of post-strike chemical plumes.
To help speed development of a ballistic missile defense system, we are providing
wide-ranging support to the Missile Defense Agency (MDA). For example, we are
supporting the Near-Field Infrared Experiment, which will collect data to help verify
performance of the kill vehicle and tracking sensors for boost and ascent phase
engagements, and provide the foundation for developing the Ballistic Missile Defense
System Interceptors Program.
To help the Army transform to a lighter, smarter, more lethal force, SAIC and Boeing
work together as the lead integrators on the Future Combat Systems (FCS) program. We
are evaluating network-centric concepts and technologies – and conducting
“(SAIC staff) and the DDE (Direct Dissemination Element)
System helped to bring the Global Hawk System’s impressive
capabilities to bear in Operation Enduring Freedom in a timely,
effective, and efficient manner with great success.”
Brigadier General John F. Kimmons, Director of Intelligence, U.S. Central Command
A
N a t i o n a l
S e c u r i t y
fter playing an important role in national security for more than 34 years,
SAIC today is helping the United States and its allies fight the first war of the 21st
century. From military bases worldwide to the headquarters of the Unified Commands
and throughout the intelligence community, our information technology expertise,
systems integration skills, digital communications systems, and intelligence solutions
support military forces in the global war on terrorism. In Iraq, we provided around-the-
clock operational support for Tomahawk cruise missile launches. We also trained Navy
dolphins to detect and mark mine locations, supported training missions for Predator
unmanned aerial vehicles, and are helping create a free Iraqi media.
Looking to the future, we are helping the U.S. Department of Defense and military
services achieve their transformation goals, such as developing future combat systems,
enhancing joint warfare capabilities, and implementing network-centric strategies.
36
37
demonstrations – to develop an architecture that will link sensor, command and control,
and shooter networks to allow simultaneous sharing of information across the
battlespace. FCS will feature lighter-but-more-lethal combat vehicles, unmanned aerial
vehicles, and robots designed to reduce risks to our soldiers.
Intelligence Solutions. Effective national security begins with reliable intelligence,
followed by sound decision making and efficient implementation. Working from remote
overseas locations, SAIC staff and our Direct Dissemination Element (DDE) system
assisted on 50 combat missions flown by the Global Hawk unmanned aerial vehicle.
Lasting more than 1,000 flight hours, these missions provided 15,000 “actionable
intelligence” images that proved invaluable for identifying and tracking potential enemy
targets in Afghanistan. Integrated into the U.S. Central Command’s intelligence,
surveillance and reconnaissance architecture, the DDE system provides imagery, textual,
and graphical data to designated recipients in the forward area and in the United States.
Intelligence analysts worldwide and deployed U.S. troops in areas like Afghanistan
and Iraq can better identify approximately 2,700 items of military equipment in real time
using a Web-based tool we developed with 20,000 reference images. On this and many
other projects, we help the National Imagery and Mapping Agency provide intelligence
support to the Unified Commands responding to international security threats.
Advances in latent semantic indexing (LSI) text processing technology developed by
Telcordia and SAIC are enabling the intelligence community to better prioritize foreign-
language material for analysis and translation. Recent work also has led to breakthroughs
in sharing of information and in automatic detection of possible uses of aliases. As part
of these efforts, SAIC recently extended the cross-lingual capabilities of LSI to include
Farsi, Korean, and Japanese.
To help the U.S. better process signals intelligence, SAIC is helping the National
Security Agency (NSA) modernize its signals intelligence systems. SAIC will provide and
integrate scalable, robust technologies to implement a state-of-the-art mission infrastruc-
ture to help keep NSA on the leading edge of communications and data processing.
Information Systems/Networks. The Army continues to improve readiness by using
SAIC systems for decision support and mobilization. We conceived and developed the
premier analytical tool used by Army leaders and staff to assess unit readiness levels,
personnel shortfalls, and equipment availability and cost. As part of this tool, we created
one of the largest data warehousing sites on the Internet as well as advanced algorithms
to run “what if” scenarios on force structures.
To improve readiness for Army National Guard and Reserve units, SAIC developed,
integrated, and is fielding one of the largest DoD information systems ever built – an
automated mobilization system. As part of this effort, we helped the Pennsylvania Army
National Guard reduce mobilization time for a mechanized infantry division and provid-
ed videoconferencing to deployed soldiers to connect their home stations and families.
We are helping DoD develop low-cost, unmanned aerial vehicles like the Loitering Electronic
Warfare Killer, which can be deployed from tactical aircraft for a variety of warfighting missions.
N a
t
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o
n
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S
e
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r
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t
y
For the Space and Naval Warfare Systems Command, we are developing and
implementing emerging technologies for navigation sensors and air and shipboard
command and control. For example, we are developing enhancements to evolve Global
Positioning System (GPS) signal architectures and identify and evaluate critical GPS
navigation warfare technologies, such as GPS jammer detection/location systems.
To help support warfighters in the Pacific theater, SAIC is integrating and operating
Pacific Command information technology systems and networks in Hawaii, Korea, and
Japan. As part of this effort, we are providing architecture engineering and software
development support for a single integrated theater infrastructure.
To improve combat readiness of ships, our AMSEC LLC joint venture is helping the
U.S. Navy deploy enabling technologies and install advanced electronic systems that
reduce workload requirements and allow crews to focus on warfighting and training.
For the U.S. Northern Command, SAIC is providing enterprise network management
support for the standup of the new homeland defense command.
36
37
demonstrations – to develop an architecture that will link sensor, command and control,
and shooter networks to allow simultaneous sharing of information across the
battlespace. FCS will feature lighter-but-more-lethal combat vehicles, unmanned aerial
vehicles, and robots designed to reduce risks to our soldiers.
Intelligence Solutions. Effective national security begins with reliable intelligence,
followed by sound decision making and efficient implementation. Working from remote
overseas locations, SAIC staff and our Direct Dissemination Element (DDE) system
assisted on 50 combat missions flown by the Global Hawk unmanned aerial vehicle.
Lasting more than 1,000 flight hours, these missions provided 15,000 “actionable
intelligence” images that proved invaluable for identifying and tracking potential enemy
targets in Afghanistan. Integrated into the U.S. Central Command’s intelligence,
surveillance and reconnaissance architecture, the DDE system provides imagery, textual,
and graphical data to designated recipients in the forward area and in the United States.
Intelligence analysts worldwide and deployed U.S. troops in areas like Afghanistan
and Iraq can better identify approximately 2,700 items of military equipment in real time
using a Web-based tool we developed with 20,000 reference images. On this and many
other projects, we help the National Imagery and Mapping Agency provide intelligence
support to the Unified Commands responding to international security threats.
Advances in latent semantic indexing (LSI) text processing technology developed by
Telcordia and SAIC are enabling the intelligence community to better prioritize foreign-
language material for analysis and translation. Recent work also has led to breakthroughs
in sharing of information and in automatic detection of possible uses of aliases. As part
of these efforts, SAIC recently extended the cross-lingual capabilities of LSI to include
Farsi, Korean, and Japanese.
To help the U.S. better process signals intelligence, SAIC is helping the National
Security Agency (NSA) modernize its signals intelligence systems. SAIC will provide and
integrate scalable, robust technologies to implement a state-of-the-art mission infrastruc-
ture to help keep NSA on the leading edge of communications and data processing.
Information Systems/Networks. The Army continues to improve readiness by using
SAIC systems for decision support and mobilization. We conceived and developed the
premier analytical tool used by Army leaders and staff to assess unit readiness levels,
personnel shortfalls, and equipment availability and cost. As part of this tool, we created
one of the largest data warehousing sites on the Internet as well as advanced algorithms
to run “what if” scenarios on force structures.
To improve readiness for Army National Guard and Reserve units, SAIC developed,
integrated, and is fielding one of the largest DoD information systems ever built – an
automated mobilization system. As part of this effort, we helped the Pennsylvania Army
National Guard reduce mobilization time for a mechanized infantry division and provid-
ed videoconferencing to deployed soldiers to connect their home stations and families.
We are helping DoD develop low-cost, unmanned aerial vehicles like the Loitering Electronic
Warfare Killer, which can be deployed from tactical aircraft for a variety of warfighting missions.
N a
t
i
o
n
a
l
S
e
c
u
r
i
t
y
For the Space and Naval Warfare Systems Command, we are developing and
implementing emerging technologies for navigation sensors and air and shipboard
command and control. For example, we are developing enhancements to evolve Global
Positioning System (GPS) signal architectures and identify and evaluate critical GPS
navigation warfare technologies, such as GPS jammer detection/location systems.
To help support warfighters in the Pacific theater, SAIC is integrating and operating
Pacific Command information technology systems and networks in Hawaii, Korea, and
Japan. As part of this effort, we are providing architecture engineering and software
development support for a single integrated theater infrastructure.
To improve combat readiness of ships, our AMSEC LLC joint venture is helping the
U.S. Navy deploy enabling technologies and install advanced electronic systems that
reduce workload requirements and allow crews to focus on warfighting and training.
For the U.S. Northern Command, SAIC is providing enterprise network management
support for the standup of the new homeland defense command.
38
39
In support of the missile defense program, SAIC analysts and engineers help military personnel
conduct wargames and battle training exercises at the Joint National Integration Center in Colorado
Springs, Colorado.
Under the Nunn-Lugar Cooperative Threat Reduction Program, SAIC arms control
experts, engineers, and management specialists directly contributed to the denucleariza-
tion of Ukraine and Kazakhstan, and helped reduce the number of nuclear warheads and
delivery systems to a small fraction of Cold War levels.
Modeling, Simulation, and Training. We define and develop emerging technologies
and systems for the next generation of mission planning, combat simulation, and train-
ing capabilities. For the Army’s Future Combat Systems program, we will deliver the con-
verged live, virtual, and constructive simulation environment needed by Army and joint
service elements to realize the goal of “train as you fight, fight as you train, anywhere,
anytime.” SAIC is also developing and integrating a new constructive simulation system
that will support advanced concepts experimentation, research, and training for Army,
Marine Corps, and international customers, enabling commanders to respond faster and
more effectively to changing tactical conditions and evolving doctrine.
We are leading next generation communications and tactical engagement systems for
live training at the Army National Training Center (NTC), under an FY 2004 contract.
Currently, we are implementing a digital wireless system to enhance NTC voice
communications, as well as provide GPS and weapons events data to the NTC
operations center.
“The (SAIC Army Flow Model) team’s ability to develop
analytical tools, identify emerging requirements, and work in
high-risk and constrained timelines has proven a true asset to
the Army.”
Daniel Egbert, Deputy Director, Force Integration and Management, Department of the Army
N a
t
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Policy Support and Analysis. SAIC’s advanced research and analysis capabilities help
the United States and its allies respond to complex and changing national security issues.
For the U.S. Joint Forces Command, our analysts played a key part in designing,
executing, and examining the results of Millennium Challenge 2002, the nation’s largest-
ever joint experiment. As part of the efforts to transform the U.S. military and improve
interoperability, the experiment combined live field forces and computer simulations at
several locations across the U.S. to evaluate future warfighting concepts.
Under the Warfighter Analysis & Integration contract, we help the Army and DoD
better analyze and integrate battlefield systems as well as leverage modeling, simulation,
wargaming, and sensor technologies to evaluate worldwide threats. This includes theater
ballistic missile proliferation in the Third World. As part of this work we also assist in
developing a better ability to strike deeply at mobile and dispersed targets.
38
39
In support of the missile defense program, SAIC analysts and engineers help military personnel
conduct wargames and battle training exercises at the Joint National Integration Center in Colorado
Springs, Colorado.
Under the Nunn-Lugar Cooperative Threat Reduction Program, SAIC arms control
experts, engineers, and management specialists directly contributed to the denucleariza-
tion of Ukraine and Kazakhstan, and helped reduce the number of nuclear warheads and
delivery systems to a small fraction of Cold War levels.
Modeling, Simulation, and Training. We define and develop emerging technologies
and systems for the next generation of mission planning, combat simulation, and train-
ing capabilities. For the Army’s Future Combat Systems program, we will deliver the con-
verged live, virtual, and constructive simulation environment needed by Army and joint
service elements to realize the goal of “train as you fight, fight as you train, anywhere,
anytime.” SAIC is also developing and integrating a new constructive simulation system
that will support advanced concepts experimentation, research, and training for Army,
Marine Corps, and international customers, enabling commanders to respond faster and
more effectively to changing tactical conditions and evolving doctrine.
We are leading next generation communications and tactical engagement systems for
live training at the Army National Training Center (NTC), under an FY 2004 contract.
Currently, we are implementing a digital wireless system to enhance NTC voice
communications, as well as provide GPS and weapons events data to the NTC
operations center.
“The (SAIC Army Flow Model) team’s ability to develop
analytical tools, identify emerging requirements, and work in
high-risk and constrained timelines has proven a true asset to
the Army.”
Daniel Egbert, Deputy Director, Force Integration and Management, Department of the Army
N a
t
i
o
n
a
l
S
e
c
u
r
i
t
y
Policy Support and Analysis. SAIC’s advanced research and analysis capabilities help
the United States and its allies respond to complex and changing national security issues.
For the U.S. Joint Forces Command, our analysts played a key part in designing,
executing, and examining the results of Millennium Challenge 2002, the nation’s largest-
ever joint experiment. As part of the efforts to transform the U.S. military and improve
interoperability, the experiment combined live field forces and computer simulations at
several locations across the U.S. to evaluate future warfighting concepts.
Under the Warfighter Analysis & Integration contract, we help the Army and DoD
better analyze and integrate battlefield systems as well as leverage modeling, simulation,
wargaming, and sensor technologies to evaluate worldwide threats. This includes theater
ballistic missile proliferation in the Third World. As part of this work we also assist in
developing a better ability to strike deeply at mobile and dispersed targets.
40
41
To study a wide array of environmental issues such as land use and global change, researchers
worldwide rely on millions of satellite images and aerial photographs from a data center that SAIC
operates for the U.S. Geological Survey.
For NASA’s Marshall Space Flight Center, SAIC engineers are performing technology
assessments and trade studies for the Next Generation Launch Technology Program.
This involves modeling and simulation to analyze advanced launch vehicle and in-space
propulsion system concepts for prioritizing next-generation aerospace investments.
For NASA’s Johnson Space Center, we provide safety, reliability, and quality assurance
support as NASA assembles the International Space Station. We also provide
engineering support for Space Shuttle upgrades and for defining the new Orbital Space
Plane program.
At Cape Canaveral, we support U.S. Air Force space launch programs with systems
engineering, logistics, safety analysis, and communications for the 45th Space Wing.
We play a central role in the critically important Global Positioning System (GPS)
program as part of our work for the Air Force Joint Program Office. We make important
contributions to sustainment activities for the current generation of GPS and to advance-
ments for GPS III, such as enhanced anti-jam capability, signal design (M-Code), and
furthering civil community user equipment simulation, development, and testing.
For the Space and Missile Systems Center, we provide systems engineering and
program management support for the Space Based Radar. We also participate in concept
studies for the Transformational Communications System, a next-generation wideband
system that could dramatically increase bandwidth by using lasers instead of radio
frequencies to communicate.
“SAIC puts a high value on their employee-owners and this
caring was evident in improved morale and performance
throughout the DSP Team, a direct result of the people-first
emphasis of SAIC.”
Dudley B. Killam, Colonel, USAF, Defense Support Program Director
I
S
p
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c
e
n support of the U.S. Geological Survey’s Earth Resources Observation Systems Data
Center, SAIC provides scientific, engineering, and operational technical services to
operate the world’s leading center for land data archiving, distribution, and research.
Ingesting approximately 2 terabytes of data per day, the center now contains over 13
million satellite images and aerial photographs. We are developing new technologies to
stay ahead of the explosive growth in requirements for this kind of data.
As part of a project that might one day influence such issues as global warming and
ecosystem change, we model earth systems and the effects of civilization on those
systems in support of NASA’s Goddard Space Flight Center. We work with NASA’s
Langley Research Center to develop the latest active remote-sensing technology. We
provide engineering and phenomenology extraction skills for a Langley project that will
put a LIDAR in earth orbit to detect and identify aerosols in the atmosphere.
40
41
To study a wide array of environmental issues such as land use and global change, researchers
worldwide rely on millions of satellite images and aerial photographs from a data center that SAIC
operates for the U.S. Geological Survey.
For NASA’s Marshall Space Flight Center, SAIC engineers are performing technology
assessments and trade studies for the Next Generation Launch Technology Program.
This involves modeling and simulation to analyze advanced launch vehicle and in-space
propulsion system concepts for prioritizing next-generation aerospace investments.
For NASA’s Johnson Space Center, we provide safety, reliability, and quality assurance
support as NASA assembles the International Space Station. We also provide
engineering support for Space Shuttle upgrades and for defining the new Orbital Space
Plane program.
At Cape Canaveral, we support U.S. Air Force space launch programs with systems
engineering, logistics, safety analysis, and communications for the 45th Space Wing.
We play a central role in the critically important Global Positioning System (GPS)
program as part of our work for the Air Force Joint Program Office. We make important
contributions to sustainment activities for the current generation of GPS and to advance-
ments for GPS III, such as enhanced anti-jam capability, signal design (M-Code), and
furthering civil community user equipment simulation, development, and testing.
For the Space and Missile Systems Center, we provide systems engineering and
program management support for the Space Based Radar. We also participate in concept
studies for the Transformational Communications System, a next-generation wideband
system that could dramatically increase bandwidth by using lasers instead of radio
frequencies to communicate.
“SAIC puts a high value on their employee-owners and this
caring was evident in improved morale and performance
throughout the DSP Team, a direct result of the people-first
emphasis of SAIC.”
Dudley B. Killam, Colonel, USAF, Defense Support Program Director
I
S
p
a
c
e
n support of the U.S. Geological Survey’s Earth Resources Observation Systems Data
Center, SAIC provides scientific, engineering, and operational technical services to
operate the world’s leading center for land data archiving, distribution, and research.
Ingesting approximately 2 terabytes of data per day, the center now contains over 13
million satellite images and aerial photographs. We are developing new technologies to
stay ahead of the explosive growth in requirements for this kind of data.
As part of a project that might one day influence such issues as global warming and
ecosystem change, we model earth systems and the effects of civilization on those
systems in support of NASA’s Goddard Space Flight Center. We work with NASA’s
Langley Research Center to develop the latest active remote-sensing technology. We
provide engineering and phenomenology extraction skills for a Langley project that will
put a LIDAR in earth orbit to detect and identify aerosols in the atmosphere.
42
43
D
uring conflict situations, SAIC engineers and technicians rapidly deploy into
the field with military personnel.
Deployed with Navy aircraft carrier battle groups and amphibious readiness groups,
our technicians assist Navy personnel in properly packaging damaged repairables for
return to depots, resulting in reduced repair pipeline times, increased spares availability,
and enhanced fleet readiness.
Technical professionals from our AMSEC LLC joint venture use their in-depth
knowledge to help maintenance technicians find the data and support they need to keep
shipboard systems operating at maximum readiness and efficiency. AMSEC engineers
and technicians are also present in many major home ports for the U.S. Navy, continuing
their 20-year tradition of first-class in-service engineering for the Navy fleet.
We help Air Force Logistics Center staff respond to the accelerated operational tempo,
and improve the front-line readiness of combat weapon systems through services such as
aircraft modifications, sustainment support, and sustaining engineering. Our IT systems
help Air Force staff anticipate and more quickly obtain both weapon system parts and
sustainment services. Over the last year, we provided bench stock spare parts for the Air
Force at an unprecedented 99.85% fill-rate, helping the Air Force get weapon systems to
the warfighter more quickly and at a lower cost. We also improve the reliability and
maintainability of weapon systems, such as a targeting system that enables aircraft to fly
at low altitudes, at night, and in challenging weather conditions, to attack ground targets.
Upon activation of Operation Enduring Freedom, our engineers reacted quickly to
help a customer at the Oklahoma City Air Logistics Center successfully conduct an
accelerated test program for a new penetrator variant of the Conventional Air Launched
Cruise Missile.
We explore new technologies and concepts for the next generation of command and
control systems for joint operational logistics. Our work supports the Defense Advanced
Research Projects Agency, the Joint Forces Command, and the U.S. Transportation
Command. For the latter, we are helping implement a collaborative logistics control
system to optimize the rapid deployment and use of air and sealift assets.
Onboard the aircraft carrier USS John F. Kennedy, our AMSEC technicians instruct crewmembers on
maintaining the critical components of an aircraft deck edge elevator. With AMSEC’s assistance, the
Navy has dramatically increased the reliability of aircraft carrier deck edge and weapons elevators.
L
o
g
i
s
t
i
c
s
Last year saw two important wins from Naval Surface Warfare Centers. For Crane
NSWC in Indiana, we reengineer and improve the performance of Army and Navy
weapons and ammunitions. For NSWC Philadelphia, AMSEC develops technologies to
reduce the effort to operate and maintain ship systems and free up sailors for warfighting.
A key player in military transformation, SAIC is helping the Department of Defense
design a future logistics strategic framework and integrate those transformational
strategies into operational activities. The goal is to design military systems from the
ground up to be resource-efficient, easily deployable, and logistically intelligent. Through
emerging autonomics and prognostics technologies, the systems will be able to
communicate when and how they should be maintained and supported.
42
43
D
uring conflict situations, SAIC engineers and technicians rapidly deploy into
the field with military personnel.
Deployed with Navy aircraft carrier battle groups and amphibious readiness groups,
our technicians assist Navy personnel in properly packaging damaged repairables for
return to depots, resulting in reduced repair pipeline times, increased spares availability,
and enhanced fleet readiness.
Technical professionals from our AMSEC LLC joint venture use their in-depth
knowledge to help maintenance technicians find the data and support they need to keep
shipboard systems operating at maximum readiness and efficiency. AMSEC engineers
and technicians are also present in many major home ports for the U.S. Navy, continuing
their 20-year tradition of first-class in-service engineering for the Navy fleet.
We help Air Force Logistics Center staff respond to the accelerated operational tempo,
and improve the front-line readiness of combat weapon systems through services such as
aircraft modifications, sustainment support, and sustaining engineering. Our IT systems
help Air Force staff anticipate and more quickly obtain both weapon system parts and
sustainment services. Over the last year, we provided bench stock spare parts for the Air
Force at an unprecedented 99.85% fill-rate, helping the Air Force get weapon systems to
the warfighter more quickly and at a lower cost. We also improve the reliability and
maintainability of weapon systems, such as a targeting system that enables aircraft to fly
at low altitudes, at night, and in challenging weather conditions, to attack ground targets.
Upon activation of Operation Enduring Freedom, our engineers reacted quickly to
help a customer at the Oklahoma City Air Logistics Center successfully conduct an
accelerated test program for a new penetrator variant of the Conventional Air Launched
Cruise Missile.
We explore new technologies and concepts for the next generation of command and
control systems for joint operational logistics. Our work supports the Defense Advanced
Research Projects Agency, the Joint Forces Command, and the U.S. Transportation
Command. For the latter, we are helping implement a collaborative logistics control
system to optimize the rapid deployment and use of air and sealift assets.
Onboard the aircraft carrier USS John F. Kennedy, our AMSEC technicians instruct crewmembers on
maintaining the critical components of an aircraft deck edge elevator. With AMSEC’s assistance, the
Navy has dramatically increased the reliability of aircraft carrier deck edge and weapons elevators.
L
o
g
i
s
t
i
c
s
Last year saw two important wins from Naval Surface Warfare Centers. For Crane
NSWC in Indiana, we reengineer and improve the performance of Army and Navy
weapons and ammunitions. For NSWC Philadelphia, AMSEC develops technologies to
reduce the effort to operate and maintain ship systems and free up sailors for warfighting.
A key player in military transformation, SAIC is helping the Department of Defense
design a future logistics strategic framework and integrate those transformational
strategies into operational activities. The goal is to design military systems from the
ground up to be resource-efficient, easily deployable, and logistically intelligent. Through
emerging autonomics and prognostics technologies, the systems will be able to
communicate when and how they should be maintained and supported.
44
45
A
t SAIC, we make important contributions to the development of vaccines
and therapeutic drugs for some of the most serious worldwide diseases, such as AIDS,
malaria, anthrax, and different cancers. Our outstanding experience in both biomedical
research and information technology gives us the insights to clearly understand and
support complex biomedical research and development.
Our technical experts support exciting research into proteomics – analyzing and
recognizing protein patterns – and the clinical trials of new diagnostics based on this
research, for example, a new test to detect early stage ovarian cancer.
These are some of the many vital research areas we support at the National Cancer
Institute at Frederick, a federally funded research and development center. Our staff also
manages all infrastructure support for this world-renowned facility and operates its high-
performance computing center.
We provide critical support to some of the world’s largest pharmaceutical companies
on projects that lie at the heart of their R&D value chains. Our IT services and software
applications enhance research productivity throughout the drug development life cycle.
For example, we develop innovative solutions to better manage, access, and analyze the
enormous amounts of data required for drug discovery and development.
Cited for their dedication, courage, and responsiveness, SAIC professionals work
alongside U.S. military medical staff during conflicts and terrorist incidents. Our IT pro-
fessionals at the Pentagon’s on-site health clinic assisted medical staff in every way they
could during the September 11, 2001, terrorist attacks. SAIC IT staff served onboard the
USNS Comfort hospital ship, which docked off New York City to provide support to first
responders following the World Trade Center attack. For the Afghanistan conflict, our
staff set up and operated the IT and communications infrastructure for the field hospi-
tal that provides medical care to detainees at the U.S. base in Guantanamo Bay, Cuba.
During the Iraqi conflict, SAIC staff onboard the USNS Comfort managed the hospital
information technology system and provided a wide variety of other support as the ship’s
medical staff treated wounded American and Allied soldiers and Iraqi combatants.
We also help the Department of Defense Military Health System protect the health
and well-being of military personnel and their families in many other ways. To address
Our medical doctors and scientists assist in important discoveries in the AIDS Vaccine Program
(right) and the HIV Drug Resistance Program at the world’s premier AIDS research facility – the
National Cancer Institute at Frederick.
Health Care and Biomedical Research
the challenges of substance abuse, our medical professionals provide intervention,
treatment, and education services to U.S. military dependents in seven countries. The
TRICARE Online Web portal, developed by SAIC, makes health care information
accessible to more than 8.2 million military beneficiaries worldwide. Patients and
providers use the portal to schedule appointments and order prescriptions. Providers also
use it to rapidly exchange information and improve coordination and responsiveness.
Since 1997, we have helped government providers and more than 30 major commer-
cial providers meet Health Insurance Portability and Accountability Act (HIPAA) stan-
dards. For example, 70 hospitals in the Ascension Health system can use the Web tool
kit we helped develop to conduct vulnerability assessments and meet HIPAA guidelines.
44
45
A
t SAIC, we make important contributions to the development of vaccines
and therapeutic drugs for some of the most serious worldwide diseases, such as AIDS,
malaria, anthrax, and different cancers. Our outstanding experience in both biomedical
research and information technology gives us the insights to clearly understand and
support complex biomedical research and development.
Our technical experts support exciting research into proteomics – analyzing and
recognizing protein patterns – and the clinical trials of new diagnostics based on this
research, for example, a new test to detect early stage ovarian cancer.
These are some of the many vital research areas we support at the National Cancer
Institute at Frederick, a federally funded research and development center. Our staff also
manages all infrastructure support for this world-renowned facility and operates its high-
performance computing center.
We provide critical support to some of the world’s largest pharmaceutical companies
on projects that lie at the heart of their R&D value chains. Our IT services and software
applications enhance research productivity throughout the drug development life cycle.
For example, we develop innovative solutions to better manage, access, and analyze the
enormous amounts of data required for drug discovery and development.
Cited for their dedication, courage, and responsiveness, SAIC professionals work
alongside U.S. military medical staff during conflicts and terrorist incidents. Our IT pro-
fessionals at the Pentagon’s on-site health clinic assisted medical staff in every way they
could during the September 11, 2001, terrorist attacks. SAIC IT staff served onboard the
USNS Comfort hospital ship, which docked off New York City to provide support to first
responders following the World Trade Center attack. For the Afghanistan conflict, our
staff set up and operated the IT and communications infrastructure for the field hospi-
tal that provides medical care to detainees at the U.S. base in Guantanamo Bay, Cuba.
During the Iraqi conflict, SAIC staff onboard the USNS Comfort managed the hospital
information technology system and provided a wide variety of other support as the ship’s
medical staff treated wounded American and Allied soldiers and Iraqi combatants.
We also help the Department of Defense Military Health System protect the health
and well-being of military personnel and their families in many other ways. To address
Our medical doctors and scientists assist in important discoveries in the AIDS Vaccine Program
(right) and the HIV Drug Resistance Program at the world’s premier AIDS research facility – the
National Cancer Institute at Frederick.
Health Care and Biomedical Research
the challenges of substance abuse, our medical professionals provide intervention,
treatment, and education services to U.S. military dependents in seven countries. The
TRICARE Online Web portal, developed by SAIC, makes health care information
accessible to more than 8.2 million military beneficiaries worldwide. Patients and
providers use the portal to schedule appointments and order prescriptions. Providers also
use it to rapidly exchange information and improve coordination and responsiveness.
Since 1997, we have helped government providers and more than 30 major commer-
cial providers meet Health Insurance Portability and Accountability Act (HIPAA) stan-
dards. For example, 70 hospitals in the Ascension Health system can use the Web tool
kit we helped develop to conduct vulnerability assessments and meet HIPAA guidelines.
46
47
Helping to restore over 6,000 acres and 20 river miles in southeast Tennessee damaged by 150
years of copper mining and sulfuric acid manufacturing, we are working with the U.S. Environmental
Protection Agency and Army Corps of Engineers in the Copper Basin and the downstream Ocoee River.
project management support to reduce the footprint of soils with high levels of radio-
logical contaminants at Savannah River, allowing future industrial land use.
A leader in offering environmental services that dovetail with U.S. defense programs,
SAIC developed the nation’s first range sustainment plan for the U.S. Air Force at Eglin
Air Force Base. Our innovative approaches have become a model for integrating mission
planning and environment stewardship across the Air Force. For the Air Force Center for
Environmental Excellence, SAIC’s environmental expertise currently supports more than
50 locations, and will expand to fuel facilities and force protection.
SAIC is helping the U.S. Navy proactively manage its training ranges in order to
sustain high levels of combat readiness. We are developing the implementation manual
and are prototype-testing the tools to be used in the Range Sustainability Environmental
Program Assessments. SAIC is monitoring compliance and developing 3-D operational
range site models to assist range managers in assessing potential risks of release of
training residue through the analysis of land use, ecological and cultural resources, and
operational information. For another key Navy project, SAIC is preparing a complex
Environmental Impact Statement for the West Coast basing of the MV-22 (the Osprey).
Using systems integration and site management tools such as SAIC SmartSite®, we
help reduce remediation costs and optimize performance for clients such as the Army
Corps of Engineers, Harley Davidson, and the U.S. Environmental Protection Agency.
“Throughout the development of the Range Sustainability
Environmental Program Assessment manual, SAIC has been
very responsive to the Navy’s needs. They have shown us they
can develop sound engineering solutions for unique situations.”
Kelli A. Ackiewicz, Naval Facilities Engineering Command Headquarters
F
E n v
i
r o n m e n t
or decades, SAIC has been a leader in providing innovative environmental and
engineering services to a wide range of government and commercial clients.
Our technical skill, innovation, and outstanding safety record led ChevronTexaco to
select SAIC as its primary national contractor for environmental engineering consulting
services. We support activities at refineries, retail outlets, terminals, and other sites.
To better manage the quality of one of our nation’s environmental treasures, Lake
Tahoe, the Tahoe Regional Planning Agency asked SAIC’s watershed management
experts to design and develop a comprehensive integrated information management
system. This system will integrate environmental information and data in one centralized
location, to allow public agencies and private organizations interested in Lake Tahoe
watershed management to access, interpret, and search for environmental information.
For an innovative U.S. Department of Energy project, we are providing technical and
46
47
Helping to restore over 6,000 acres and 20 river miles in southeast Tennessee damaged by 150
years of copper mining and sulfuric acid manufacturing, we are working with the U.S. Environmental
Protection Agency and Army Corps of Engineers in the Copper Basin and the downstream Ocoee River.
project management support to reduce the footprint of soils with high levels of radio-
logical contaminants at Savannah River, allowing future industrial land use.
A leader in offering environmental services that dovetail with U.S. defense programs,
SAIC developed the nation’s first range sustainment plan for the U.S. Air Force at Eglin
Air Force Base. Our innovative approaches have become a model for integrating mission
planning and environment stewardship across the Air Force. For the Air Force Center for
Environmental Excellence, SAIC’s environmental expertise currently supports more than
50 locations, and will expand to fuel facilities and force protection.
SAIC is helping the U.S. Navy proactively manage its training ranges in order to
sustain high levels of combat readiness. We are developing the implementation manual
and are prototype-testing the tools to be used in the Range Sustainability Environmental
Program Assessments. SAIC is monitoring compliance and developing 3-D operational
range site models to assist range managers in assessing potential risks of release of
training residue through the analysis of land use, ecological and cultural resources, and
operational information. For another key Navy project, SAIC is preparing a complex
Environmental Impact Statement for the West Coast basing of the MV-22 (the Osprey).
Using systems integration and site management tools such as SAIC SmartSite®, we
help reduce remediation costs and optimize performance for clients such as the Army
Corps of Engineers, Harley Davidson, and the U.S. Environmental Protection Agency.
“Throughout the development of the Range Sustainability
Environmental Program Assessment manual, SAIC has been
very responsive to the Navy’s needs. They have shown us they
can develop sound engineering solutions for unique situations.”
Kelli A. Ackiewicz, Naval Facilities Engineering Command Headquarters
F
E n v
i
r o n m e n t
or decades, SAIC has been a leader in providing innovative environmental and
engineering services to a wide range of government and commercial clients.
Our technical skill, innovation, and outstanding safety record led ChevronTexaco to
select SAIC as its primary national contractor for environmental engineering consulting
services. We support activities at refineries, retail outlets, terminals, and other sites.
To better manage the quality of one of our nation’s environmental treasures, Lake
Tahoe, the Tahoe Regional Planning Agency asked SAIC’s watershed management
experts to design and develop a comprehensive integrated information management
system. This system will integrate environmental information and data in one centralized
location, to allow public agencies and private organizations interested in Lake Tahoe
watershed management to access, interpret, and search for environmental information.
For an innovative U.S. Department of Energy project, we are providing technical and
48
49
For the New York City Police Department, an enhanced access control system uses SAIC “smart
cards” – cutting-edge biometrics identification badges at police headquarters.
Nationally and internationally, SAIC provides tools to aid in identifying criminals and
thwarting criminal activities. The Combined DNA Index System (CODIS), now
installed in 17 nations and being used by Interpol, supports the use of information
obtained from DNA samples in criminal investigations. Laboratories using this FBI
system rely on SAIC-developed CODIS software and our software upgrades and high-
level support. CODIS recently hit a major milestone: more than one million searchable
DNA profiles on record in the National DNA Index System Database.
The United States Customs Service has used our Vehicle and Cargo Inspection
System (VACIS™) equipment to interdict large quantities of illegal material. VACIS will
now be used by the United States Capitol Police Department, the Taiwan National
Police, and agencies in other nations to deter illegal activities at national borders. SAIC
maintains and supports VACIS units throughout the world.
Throughout the United States, SAIC helps criminal justice agencies gain faster, more
secure access to essential information. On the national level, we are developing a new
investigative system to help the FBI track data on potential terrorism suspects more
quickly, efficiently, and securely. In Alaska, we are helping to redesign and implement a
new statewide criminal justice information system. SAIC also provides engineering and
analysis support for the FBI’s mission to implement the Communications Assistance for
Law Enforcement Act, working closely with U.S. law enforcement agencies and the
telecommunications industry in the fight against crime and terrorism.
“Numerous victims of crime across the nation are able to bring
closure to a terrible experience with the help of CODIS. The
success of the CODIS program would not be possible without
the commitment of the SAIC staff… Your efforts are very much
appreciated by the forensic laboratories across the nation.”
Sindey Schueler, Kansas Bureau of Investigation
I
C r i m i n a l
J u s t i c e
n the face of heightened threats to local as well as national security, SAIC supports
the role of criminal justice as it reaches beyond traditional technologies and jurisdictions.
On the forefront of security technology, SAIC developed a biometrics identification card
that stores specific patterns tied to the wearer’s unique physical information. We are
producing 56,000 of these “smart ID badges” for sworn and non-sworn members of the
New York City Police Department.
Our services for law enforcement include security systems and training for agencies
such as the Drug Enforcement Administration. We also assist the Department of
Treasury’s Bureau of Alcohol, Tobacco and Firearms in conducting crisis readiness
instruction for its 23 field divisions. Working with the National Guard Bureau, we
developed an advanced simulation system to help local law enforcement and other
emergency responders nationwide prepare to respond to terrorist attacks.
48
49
For the New York City Police Department, an enhanced access control system uses SAIC “smart
cards” – cutting-edge biometrics identification badges at police headquarters.
Nationally and internationally, SAIC provides tools to aid in identifying criminals and
thwarting criminal activities. The Combined DNA Index System (CODIS), now
installed in 17 nations and being used by Interpol, supports the use of information
obtained from DNA samples in criminal investigations. Laboratories using this FBI
system rely on SAIC-developed CODIS software and our software upgrades and high-
level support. CODIS recently hit a major milestone: more than one million searchable
DNA profiles on record in the National DNA Index System Database.
The United States Customs Service has used our Vehicle and Cargo Inspection
System (VACIS™) equipment to interdict large quantities of illegal material. VACIS will
now be used by the United States Capitol Police Department, the Taiwan National
Police, and agencies in other nations to deter illegal activities at national borders. SAIC
maintains and supports VACIS units throughout the world.
Throughout the United States, SAIC helps criminal justice agencies gain faster, more
secure access to essential information. On the national level, we are developing a new
investigative system to help the FBI track data on potential terrorism suspects more
quickly, efficiently, and securely. In Alaska, we are helping to redesign and implement a
new statewide criminal justice information system. SAIC also provides engineering and
analysis support for the FBI’s mission to implement the Communications Assistance for
Law Enforcement Act, working closely with U.S. law enforcement agencies and the
telecommunications industry in the fight against crime and terrorism.
“Numerous victims of crime across the nation are able to bring
closure to a terrible experience with the help of CODIS. The
success of the CODIS program would not be possible without
the commitment of the SAIC staff… Your efforts are very much
appreciated by the forensic laboratories across the nation.”
Sindey Schueler, Kansas Bureau of Investigation
I
C r i m i n a l
J u s t i c e
n the face of heightened threats to local as well as national security, SAIC supports
the role of criminal justice as it reaches beyond traditional technologies and jurisdictions.
On the forefront of security technology, SAIC developed a biometrics identification card
that stores specific patterns tied to the wearer’s unique physical information. We are
producing 56,000 of these “smart ID badges” for sworn and non-sworn members of the
New York City Police Department.
Our services for law enforcement include security systems and training for agencies
such as the Drug Enforcement Administration. We also assist the Department of
Treasury’s Bureau of Alcohol, Tobacco and Firearms in conducting crisis readiness
instruction for its 23 field divisions. Working with the National Guard Bureau, we
developed an advanced simulation system to help local law enforcement and other
emergency responders nationwide prepare to respond to terrorist attacks.
50
51
Companies in the SAIC family work together to deliver superior results, meet or exceed
client expectations, and build long-term business relationships. Employee ownership is
the key engine that disseminates this shared commitment to our customers throughout
the SAIC family of companies.
Our integrated network of companies includes subsidiaries, joint ventures, and
alliance companies. Our SAIC Venture Capital Corporation (VCC) subsidiary makes
minority investments in alliance companies with important emerging technologies such
as networking infrastructure, nanotechnology, bioinformatics, wireless systems and
software, enterprise software, and security solutions.
S A I C S U B S I D I A R I E S
Telcordia Technologies. Serving many of the world’s leading service providers, our
Telcordia subsidiary is one of the world’s largest telecommunications software and
consulting companies, and the leading provider of operational software for the
telecommunications industry.
SAIC Frederick. Our SAIC Frederick subsidiary operates the National Cancer Institute’s
leading center for cancer and AIDS research. In addition, our SAIC Frederick subsidiary
operates and manages the Advanced Biomedical Computing Center (ABCC), the world’s
only supercomputer devoted exclusively to biomedical research.
ANXeBusiness Corp. ANXeBusiness, our 80% owned subsidiary, offers complete extranet
services and a global, secure network for business-to-business communications
worldwide. Mitsubishi Corporation owns a minority interest in ANXeBusiness, and it
teams with SAIC and ANXeBusiness to offer intranet and extranet services in the Asia-
Pacific marketplace.
S A I C J O I N T V E N T U R E S
Bechtel SAIC Company, LLC. Bechtel and SAIC combined their expertise to meet the
unique challenges involved in research and possible development of the nation’s first
high-level radioactive waste repository.
AMSEC LLC. AMSEC LLC is a joint venture between SAIC and Newport News
Shipbuilding, now part of Northrop Grumman. Serving the U.S. Navy, Coast Guard, and
other maritime customers, AMSEC LLC crews provide technical support for virtually
every shipboard system.
Data Systems & Solutions. A joint venture between SAIC and Rolls-Royce, Data Systems
& Solutions provides enterprise asset management, predictive maintenance, and process
optimization to clients in many industries.
S A I C ’ s F a m i l y o f C o m p a n i e s
50
51
Companies in the SAIC family work together to deliver superior results, meet or exceed
client expectations, and build long-term business relationships. Employee ownership is
the key engine that disseminates this shared commitment to our customers throughout
the SAIC family of companies.
Our integrated network of companies includes subsidiaries, joint ventures, and
alliance companies. Our SAIC Venture Capital Corporation (VCC) subsidiary makes
minority investments in alliance companies with important emerging technologies such
as networking infrastructure, nanotechnology, bioinformatics, wireless systems and
software, enterprise software, and security solutions.
S A I C S U B S I D I A R I E S
Telcordia Technologies. Serving many of the world’s leading service providers, our
Telcordia subsidiary is one of the world’s largest telecommunications software and
consulting companies, and the leading provider of operational software for the
telecommunications industry.
SAIC Frederick. Our SAIC Frederick subsidiary operates the National Cancer Institute’s
leading center for cancer and AIDS research. In addition, our SAIC Frederick subsidiary
operates and manages the Advanced Biomedical Computing Center (ABCC), the world’s
only supercomputer devoted exclusively to biomedical research.
ANXeBusiness Corp. ANXeBusiness, our 80% owned subsidiary, offers complete extranet
services and a global, secure network for business-to-business communications
worldwide. Mitsubishi Corporation owns a minority interest in ANXeBusiness, and it
teams with SAIC and ANXeBusiness to offer intranet and extranet services in the Asia-
Pacific marketplace.
S A I C J O I N T V E N T U R E S
Bechtel SAIC Company, LLC. Bechtel and SAIC combined their expertise to meet the
unique challenges involved in research and possible development of the nation’s first
high-level radioactive waste repository.
AMSEC LLC. AMSEC LLC is a joint venture between SAIC and Newport News
Shipbuilding, now part of Northrop Grumman. Serving the U.S. Navy, Coast Guard, and
other maritime customers, AMSEC LLC crews provide technical support for virtually
every shipboard system.
Data Systems & Solutions. A joint venture between SAIC and Rolls-Royce, Data Systems
& Solutions provides enterprise asset management, predictive maintenance, and process
optimization to clients in many industries.
S A I C ’ s F a m i l y o f C o m p a n i e s
52
53
“Employee ownership has given us the flexibility
to react to our customers’ needs in ways other
companies cannot.”
Dr. J. Robert Beyster, Chief Executive Officer of SAIC
E m p l o y e e O w n e r s h i p
At SAIC, employee ownership gives us the freedom and flexibility not offered by most
other companies. This means the flexibility to work on virtually any technical problem
for our customers, and the freedom to create and innovate. “I firmly believe that the
secret of SAIC’s success has been our employee-owners and their commitment to solving
complex, technical problems for our customers,” says CEO Dr. Beyster.
Besides empowering our workers, employee ownership facilitates a decentralized
management structure that offers our customers the best attributes of both small and
large businesses. This includes extreme attention to the customer, combined with
financial strength and staying power.
We work hard to satisfy our customers’ desires because our performance-based awards
encourage us to achieve outstanding results. These awards include stock options for
achieving specific performance goals, employee stock purchases matched with stock
options, and annual bonuses of stock and stock options.
Since 1969, these incentives have motivated us to help our customers succeed. As our
business grows and we achieve financial success, it is our employee shareholders who
benefit. That’s how we’ve continued to grow in a very competitive environment to
become the largest employee-owned research and engineering company in the U.S.
In addition, SAIC’s strong operational performance helped stabilize SAIC’s stock
price during the slumping stock market of the last few years. In fact, over the past five
annualized fiscal years, SAIC’s stock price has averaged 23.9% annual growth.
To encourage all employees to become owners, the company provides employees with
many ways to acquire stock. Besides performance-based stock incentives and direct
purchases, employees gain ownership through the company’s retirement plans. SAIC
retirement plans, current employees, directors, and their families own approximately
83% of our stock.
SAIC stock is not traded on a national securities exchange; however, buyers and
sellers can trade stock in a quarterly internal market operated by our subsidiary Bull, Inc.
To strengthen our internal stock system, we expedited the trade process to minimize
the chance of a future repricing, incentivized employees to use more efficient online
trading, and upgraded the stock system software. Because employee ownership is so
important to the company, we continually seek out new ways to make it better.
52
53
“Employee ownership has given us the flexibility
to react to our customers’ needs in ways other
companies cannot.”
Dr. J. Robert Beyster, Chief Executive Officer of SAIC
E m p l o y e e O w n e r s h i p
At SAIC, employee ownership gives us the freedom and flexibility not offered by most
other companies. This means the flexibility to work on virtually any technical problem
for our customers, and the freedom to create and innovate. “I firmly believe that the
secret of SAIC’s success has been our employee-owners and their commitment to solving
complex, technical problems for our customers,” says CEO Dr. Beyster.
Besides empowering our workers, employee ownership facilitates a decentralized
management structure that offers our customers the best attributes of both small and
large businesses. This includes extreme attention to the customer, combined with
financial strength and staying power.
We work hard to satisfy our customers’ desires because our performance-based awards
encourage us to achieve outstanding results. These awards include stock options for
achieving specific performance goals, employee stock purchases matched with stock
options, and annual bonuses of stock and stock options.
Since 1969, these incentives have motivated us to help our customers succeed. As our
business grows and we achieve financial success, it is our employee shareholders who
benefit. That’s how we’ve continued to grow in a very competitive environment to
become the largest employee-owned research and engineering company in the U.S.
In addition, SAIC’s strong operational performance helped stabilize SAIC’s stock
price during the slumping stock market of the last few years. In fact, over the past five
annualized fiscal years, SAIC’s stock price has averaged 23.9% annual growth.
To encourage all employees to become owners, the company provides employees with
many ways to acquire stock. Besides performance-based stock incentives and direct
purchases, employees gain ownership through the company’s retirement plans. SAIC
retirement plans, current employees, directors, and their families own approximately
83% of our stock.
SAIC stock is not traded on a national securities exchange; however, buyers and
sellers can trade stock in a quarterly internal market operated by our subsidiary Bull, Inc.
To strengthen our internal stock system, we expedited the trade process to minimize
the chance of a future repricing, incentivized employees to use more efficient online
trading, and upgraded the stock system software. Because employee ownership is so
important to the company, we continually seek out new ways to make it better.
54
55
Occupational Category
73%
Professional Technical
14%
Managerial
Professional Administrative 13%
Academic Degree Level
7%
Ph.D.
37%
Master’s Degree
56%
Bachelor’s Degree
Degree holders represent 74% of the professional
staff. (These figures do not include off-line
subsidiaries or foreign entities.)
Years of Industry Experience
More than 10 years
5-10 years
Less than 5 years
77%
15%
8%
Academic Degree Discipline
48%
Sciences
19%
Engineering
Business/Economics/Law 20%
13%
Humanities
Other benefits include comprehensive leave, holidays, tuition reimbursement, and
accident and business travel insurance.
In fiscal year 2003, SAIC contributed more than $522 million to these benefit plans.
Retirement Plans. SAIC retirement plans help employees finance their retirement.
Eligible employees can take advantage of our Profit Sharing Retirement Plan, our
Employee Stock Retirement Plan, and our 401(k) Plan (called CODA) that has a
company-matching contribution.
During the year, the company contributed about $94 million to these plans. At the end
of calendar year 2002, overall plan assets were approximately $3.6 billion. (These
numbers include only SAIC Retirement Plans.)
Employees invest their retirement assets in SAIC stock and mutual funds. The funds
offer a spectrum of investment vehicles, and provide individual control over investment
alternatives.
As of December 31, 2002, 58.7% of the SAIC Retirement Plans were invested in
SAIC common stock. (This represented approximately 39.3% of the total outstanding
shares of SAIC common stock. Including Telcordia and AMSEC 401(k) plans, the
retirement plans held 43.2% of the total outstanding shares of SAIC common stock.)
T
e
a
m
S
A
I C
At SAIC, our training, education, and professional development programs play a vital role
in helping employees develop, maintain and extend technical, leadership, and profes-
sional skills needed to perform better for our customers.
In addition to onsite advanced degree and certificate university programs held at key
locations, all employees can participate in our e-learning program, which provides
certifications and 800 of the most in-demand business, leadership, and IT courses. We
also keep employees on the cutting edge by offering courses in geographic information
systems, imagery science and exploitation, and Web development.
Because of these diverse, exciting opportunities, we attract people from many fields
and allow them to excel. This training and professional development is one reason our
retention rate is so high. Another reason is that our employees get opportunities that few
employers offer – the chance to contribute to important efforts to defeat terrorism, find
better energy solutions, protect the environment, and improve health care.
Employee Benefits. SAIC provides its employees with benefit choices designed to suit
their needs, and the needs of their families and eligible domestic partners.
Employees may choose between SAIC self-insured medical plans and health
maintenance organizations at most locations. The company also offers eligible employees
programs for dental insurance, life insurance, and disability coverage.
54
55
Occupational Category
73%
Professional Technical
14%
Managerial
Professional Administrative 13%
Academic Degree Level
7%
Ph.D.
37%
Master’s Degree
56%
Bachelor’s Degree
Degree holders represent 74% of the professional
staff. (These figures do not include off-line
subsidiaries or foreign entities.)
Years of Industry Experience
More than 10 years
5-10 years
Less than 5 years
77%
15%
8%
Academic Degree Discipline
48%
Sciences
19%
Engineering
Business/Economics/Law 20%
13%
Humanities
Other benefits include comprehensive leave, holidays, tuition reimbursement, and
accident and business travel insurance.
In fiscal year 2003, SAIC contributed more than $522 million to these benefit plans.
Retirement Plans. SAIC retirement plans help employees finance their retirement.
Eligible employees can take advantage of our Profit Sharing Retirement Plan, our
Employee Stock Retirement Plan, and our 401(k) Plan (called CODA) that has a
company-matching contribution.
During the year, the company contributed about $94 million to these plans. At the end
of calendar year 2002, overall plan assets were approximately $3.6 billion. (These
numbers include only SAIC Retirement Plans.)
Employees invest their retirement assets in SAIC stock and mutual funds. The funds
offer a spectrum of investment vehicles, and provide individual control over investment
alternatives.
As of December 31, 2002, 58.7% of the SAIC Retirement Plans were invested in
SAIC common stock. (This represented approximately 39.3% of the total outstanding
shares of SAIC common stock. Including Telcordia and AMSEC 401(k) plans, the
retirement plans held 43.2% of the total outstanding shares of SAIC common stock.)
T
e
a
m
S
A
I C
At SAIC, our training, education, and professional development programs play a vital role
in helping employees develop, maintain and extend technical, leadership, and profes-
sional skills needed to perform better for our customers.
In addition to onsite advanced degree and certificate university programs held at key
locations, all employees can participate in our e-learning program, which provides
certifications and 800 of the most in-demand business, leadership, and IT courses. We
also keep employees on the cutting edge by offering courses in geographic information
systems, imagery science and exploitation, and Web development.
Because of these diverse, exciting opportunities, we attract people from many fields
and allow them to excel. This training and professional development is one reason our
retention rate is so high. Another reason is that our employees get opportunities that few
employers offer – the chance to contribute to important efforts to defeat terrorism, find
better energy solutions, protect the environment, and improve health care.
Employee Benefits. SAIC provides its employees with benefit choices designed to suit
their needs, and the needs of their families and eligible domestic partners.
Employees may choose between SAIC self-insured medical plans and health
maintenance organizations at most locations. The company also offers eligible employees
programs for dental insurance, life insurance, and disability coverage.
56
d
r
a
o
B
D i
r e c t o r s
o
f
J.R. Beyster
Chairman of the Board, President, and
Chief Executive Officer, SAIC
D.P. Andrews
Corporate Executive Vice President, SAIC
W.H. Demisch
Financial Consultant
M.J. Desch
Chief Executive Officer, Telcordia
Technologies
W.A. Downing
General, U.S. Army (Ret.)
D.H. Foley
Executive Vice President, SAIC
J.E. Glancy
Executive Vice President, SAIC
B.R. Inman
Admiral, U.S. Navy (Ret.)
A.K. Jones
University Professor, Computer Sciences,
University of Virginia
H.M.J. Kraemer, Jr.
Chairman, President and Chief Executive
Officer, Baxter International, Inc.
C.B. Malone
President, Financial & Management
Consulting Inc.
S.D. Rockwood
Executive Vice President, SAIC
E.J. Sanderson, Jr.
Retired Oracle Corporation Executive
R. Snyderman
Executive Dean of the School of Medicine,
President and CEO, Duke University
Health System
M.E. Trout, M.D.
Chairman of the Board, Cytyc Corporation
R.I. Walker
Corporate Executive Vice President, SAIC
J.P. Walkush
Executive Vice President, SAIC
J.H. Warner, Jr.
Corporate Executive Vice President, SAIC
J.A. Welch
General, U.S. Air Force (Ret.)
A.T. Young
Executive Vice President, Lockheed
Martin Corp. (Ret.)
S t r a t e g i c L o c a t i o n s
U n i t e d S t a t e s
SAIC has employees in 49 states and the
District of Columbia. The largest
concentrations of employees are in San
Diego, the greater Washington, D.C.
area, the greater Hampton Roads area of
Virginia, and northern New Jersey.
I n t e r n a t i o n a l
SAIC has employees in 20 countries,
including:
Europe: Belgium, Bosnia, Czech
Republic, England, France, Germany,
Ireland, Scotland, Italy, Spain
North America: Canada, Cuba
Middle East: Egypt, Saudi Arabia, Turkey
South America: Colombia
Pacific Rim: Guam, Japan, South Korea
I n d e p e n d e n t A u d i t o r s
Deloitte & Touche LLP, San Diego, California
Produced by: SAIC Communications
Project Director: Nola Smith
Art Director: Dave Poehlman
Principal Photographer: Wilson North
Principal Writers: Bruce Hasley, Greg Pankauski, Nola Smith
Associate Writer: Rozlyn Reece
Associate: Susan Harrington
Printer: Neyenesch Printers
©2003 Science Applications International Corporation. All rights reserved.
Printed on recycled paper.
Statements in this Annual Report other than historical data and
information may constitute forward-looking statements that involve
risks and uncertainties. A number of factors could cause actual
results, performance, or achievements 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 the Company’s Annual
Report on Form 10-K for the fiscal year ended January 31, 2003, and
in such other filings that the Company 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.
56
d
r
a
o
B
D i
r e c t o r s
o
f
J.R. Beyster
Chairman of the Board, President, and
Chief Executive Officer, SAIC
D.P. Andrews
Corporate Executive Vice President, SAIC
W.H. Demisch
Financial Consultant
M.J. Desch
Chief Executive Officer, Telcordia
Technologies
W.A. Downing
General, U.S. Army (Ret.)
D.H. Foley
Executive Vice President, SAIC
J.E. Glancy
Executive Vice President, SAIC
B.R. Inman
Admiral, U.S. Navy (Ret.)
A.K. Jones
University Professor, Computer Sciences,
University of Virginia
H.M.J. Kraemer, Jr.
Chairman, President and Chief Executive
Officer, Baxter International, Inc.
C.B. Malone
President, Financial & Management
Consulting Inc.
S.D. Rockwood
Executive Vice President, SAIC
E.J. Sanderson, Jr.
Retired Oracle Corporation Executive
R. Snyderman
Executive Dean of the School of Medicine,
President and CEO, Duke University
Health System
M.E. Trout, M.D.
Chairman of the Board, Cytyc Corporation
R.I. Walker
Corporate Executive Vice President, SAIC
J.P. Walkush
Executive Vice President, SAIC
J.H. Warner, Jr.
Corporate Executive Vice President, SAIC
J.A. Welch
General, U.S. Air Force (Ret.)
A.T. Young
Executive Vice President, Lockheed
Martin Corp. (Ret.)
S t r a t e g i c L o c a t i o n s
U n i t e d S t a t e s
SAIC has employees in 49 states and the
District of Columbia. The largest
concentrations of employees are in San
Diego, the greater Washington, D.C.
area, the greater Hampton Roads area of
Virginia, and northern New Jersey.
I n t e r n a t i o n a l
SAIC has employees in 20 countries,
including:
Europe: Belgium, Bosnia, Czech
Republic, England, France, Germany,
Ireland, Scotland, Italy, Spain
North America: Canada, Cuba
Middle East: Egypt, Saudi Arabia, Turkey
South America: Colombia
Pacific Rim: Guam, Japan, South Korea
I n d e p e n d e n t A u d i t o r s
Deloitte & Touche LLP, San Diego, California
Produced by: SAIC Communications
Project Director: Nola Smith
Art Director: Dave Poehlman
Principal Photographer: Wilson North
Principal Writers: Bruce Hasley, Greg Pankauski, Nola Smith
Associate Writer: Rozlyn Reece
Associate: Susan Harrington
Printer: Neyenesch Printers
©2003 Science Applications International Corporation. All rights reserved.
Printed on recycled paper.
Statements in this Annual Report other than historical data and
information may constitute forward-looking statements that involve
risks and uncertainties. A number of factors could cause actual
results, performance, or achievements 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 the Company’s Annual
Report on Form 10-K for the fiscal year ended January 31, 2003, and
in such other filings that the Company 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.
A
s a i c . c o m
SAIC 2003 Annual Report
SAIC’s employees are
dedicated to delivering
best-value services and
solutions by innovative
applications of science
and technology.
A
s a i c . c o m