SAIC Inc.
Annual Report 2011

Plain-text annual report

Fiscal Year 2011 Annual Report integrated SolutionS reSultS SAIC provides mission-oriented solutions for national security, Our technical strengths and integrated solutions help our energy, health, and critical infrastructure for governments customers to better perform their primary missions while and major enterprises in the U.S. and allied nations. Our reducing costs, streamlining operations, and operating solutions integrate technologies with domain and mission more effectively. knowledge to support our customers’ entire life cycle. Company overview SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowl- edge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 43,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. We remain committed to the ethical performance and integrity that has marked SAIC since its founding in 1969. C4ISR SAIC provides support and services for com- mand, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) systems worldwide. We help collect and disseminate information that provides the common operational or tactical picture through our C4 offerings. Our ISR solutions and mission support help our customers tackle the toughest global ISR challenges. Logistics, Readiness & Sustainment SAIC delivers a wide range of logistics and product support solutions to enhance the readiness and operational capability of U.S. military personnel and their weapons and sup- port systems. Our tailored solutions in logistics systems and technology, logistics integration, and supply chain management are helping meet the dynamic needs of the warfighter. Energy SAIC is a leader in addressing global energy needs, concern for the natural environment, and advancing the infrastructure we rely on for our modern way of life. We provide innovative, integrated solutions that strengthen our cus- tomers’ enterprises and help them thrive in an increasingly complex world. Health We apply our expertise in standards and infor- matics to enable the secure exchange of clini- cal data across local, regional and national information infrastructures to improve health outcomes. Our technology experts help facili- tate the use of electronic health records to improve patient care, conduct biomedical research, and help customers turn data into meaningful information. Cybersecurity SAIC’s long-term cybersecurity and intelli- gence expertise focuses on solutions that enhance today’s security and mission capa- bility, while proactively building solutions to help equip enterprises for tomorrow’s threats. Working closely with our customers, our cyber- security experts help protect the integrity of communica tions, financial, energy, health, and defense systems. >> Dear Fellow Stockholders, I am pleased to report SAIC finished fiscal year 2011 (FY11) with strong performance on the key financial metrics of operating margin, earnings per share growth, and new business awards. These results demonstrate the strength and agility of our company in a challenging market environment. Our performance and success is based upon our employees’ continued dedication to solving our customers’ most critical problems, with timely and cost effective solutions, underlying consis- tently strong program execution. Another Solid Performance Our revenues for FY11 totaled $11.1 billion, an increase of 2 percent over FY10. Operating income was $958 million (8.6 percent of revenue), up 10 percent from $867 million (8.0 percent of revenue) in the prior fiscal year. Diluted earnings per share from continuing opera- tions for the year were $1.51, up 22 percent from $1.24 in FY10. Cash flow from continuing operations was $737 million, up 19 percent from $620 million in the prior fiscal year. Implementing Our Enterprise Strategy We continued to make progress in implementing our enterprise strategy, which we believe will continue to help us deliver solid financial performance even in challenging market conditions. Our strategy to drive organic growth is focused on: • Delivering high performance in all aspects of our business • Deploying incremental business resources to higher growth areas • Delivering strong cash flow and deploying it to further increase shareholder value Delivering high performance in all aspects of our busi- ness means flawless execution on contracts for our customers, leveraging our differentiators across the company, expanding our operational efficiency for additional process improvement opportunities, and monetizing our real estate portfolio. Deploying incremental business resources to higher growth areas of our market means that we will focus a greater proportion of our business development, internal research and development, and mergers and acquisitions efforts toward pursuing opportunities in intelligence, surveillance and reconnaissance; logistics, readiness and sustainment; cybersecurity; health infor- mation technology (IT); and energy. By zeroing in on these growth areas, and by integrating the outstanding talent and technology we have across our company into offerings for these areas, we can grow faster than the market. Aggressive cross-selling and development of integrated offerings is expected to expand our market share and drive internal growth. Our efforts to implement this strategy were rewarded this fiscal year with significant contract awards in cybersecurity, logistics and energy. For example, we won two contracts to design and build geothermal power plants in Nevada and our pipeline for similar energy projects increased during the fiscal year. Expanding our cybersecurity capabilities, we opened a Cyber Innovation Center in Columbia, Md., that better enables us to help government and commercial enterprises prepare for, protect against, and respond to a wide array of cybersecurity threats. We believe the Interstate-95 corridor in Maryland will become a major technology center. As a result of the significant new business opportunities in this region we have developed a Maryland/I-95 strategy that includes cybersecurity but also focuses on a much broader set of large opportunities with the Department of Defense. By combining our enterprisewide capabilities with our existing strategic university alliance and community relations efforts, SAIC is creating a major presence in this key region of the country. 2 / 3 New Business Highlights Our focus on winning larger opportunities continues to yield good results. We won 26 opportunities valued at more than $100 million each in FY11. The combined value of these $100 million-plus wins in FY11 was $2.3 billion higher than it was in FY10. Our largest win was a 10-year, $2.5 billion single award task order from the U.S. Department of State to engineer, design, secure, operate and maintain its critical enterprisewide IT network infrastructure in support of the Bureau of Information Resource Management. The bureau pro- vides IT infrastructure, systems and services in support of the department’s foreign policy missions. We also continued to win significant work with new and long-term customers, helping us secure our business base, expand our current work, and build new business. Highlights of our FY11 contract awards include: • A five-year, $351 million follow-on task order awarded by the Naval Surface Warfare Center— Crane Division to provide technical and engi- neering services to support sensor and weapon development and integration for air, surface and unmanned platforms • Two task orders totaling $233 million by the U.S. Department of Homeland Security to provide a range of IT services and support to the U.S. Citizenship and Immigration Services • A major 10-year contract by the Department of Defense to support cybersecurity analytical requirements • The NASA Information Technology Infrastructure Integration Program East contract, which has a potential value of $321 million over five years. This is a follow-on effort for enterprise applications work performed by SAIC under the Unified NASA Information Technology Services contract, on which SAIC has been the prime contractor since January 2004 “Ourperformanceandsuccess isbaseduponouremployees’ continueddedicationtosolving ourcustomers’mostcritical problems,withtimelyandcost effectivesolutions,underlying consistentlystrongprogram execution.” Walt Havenstein Chief Executive Officer FISCALYEAR2011HIgHLIgHTS • Completed42ndyearofsustainedgrowth • Increasedinvestmentsinstrategicgrowthmarkets • Reachedrevenuesof$11.1billion • Rankedoneofthe“World’sMostAdmiredCompanies” • Won26$100million-pluscontracts • OpenedCyberInnovationCenterinMaryland • Awarded$2.5billiontaskorderbyU.S. • ExpandedsupportofSTEMeducationinitiatives DepartmentofState Integrated BusIness PlannIng Process SAIC has created an enterprise strategy, acting as an integrated whole, taking a bigger view of our markets and capabilities and showing the way for growth for the entire enterprise. the aPProach This approach takes an enterprise view, shifts resources to focus on high-growth areas and emphasizes cross-selling to make sure our customers are aware of relevant capabilities from across the company. the results SAIC is an integrated, market-driven enterprise, capable of leveraging our capabilities to become greater than the sum of its parts. We combine technologies and domain knowledge to deliver solutions that support our customers’ entire life cycles. • A five-year, $21 million blanket purchase agree- ment to provide independent engineering services to support the Department of Energy’s Biomass Program • A four and one-half year, $128 million contract to provide centralized materiel management control and distribution services to help the U.S. Army Sustainment Command ensure readiness and accelerate logistics support to commanders and troops in the field • A 21-month, $26 million task order to provide comprehensive IT infrastructure support services to Walter Reed Army Medical Center, the largest Department of Defense military hospital • A 30-month, $13 million contract from the City of Lakeland, Fla., to lead its new Smart Grid Initiative program We continued to grow our pipeline of opportunities, submitted proposals, and backlog with each increas- ing at double-digit rates during this fiscal year. We believe this reflects our success in anticipating and reacting to a changing market environment. Strategic Acquisitions We continue an active and disciplined mergers and acquisitions program to identify strategic properties. During FY11, we acquired Reveal Imaging Technologies, Inc., a leading threat detection products and services company. Reveal supports the efforts of the U.S. Transportation Security Administration (TSA) and other customers in the airport and transportation safety industries as a supplier of inspection systems that assist in screening checked baggage for explosives. The acquisition enhances our homeland security solutions portfolio, adding TSA-approved baggage screening systems to existing capabilities, which include our successful VACIS® cargo inspection systems. 4 / 5 “ We continued to invest in strategic growth markets through emphasis on excellent account management, cross-selling, differentiated offerings, enterprise solutions, and a focus on winning larger, more complex pursuits.” We also acquired human language technology and intellectual property assets from AppTek Partners and its affiliates. As part of the deal, SAIC acquired a com- plete suite of products for text and speech processing, including machine translation, knowledge management and automated speech recognition tools for more than 30 languages. The acquired technology and assets will help further establish SAIC as a leader in delivering language services to the intelligence, defense and law enforcement communities. Corporate Responsibility A key component of corporate responsibility is in help- ing to build the future workforce. Science, technology, engineering, and math, or STEM, education and build- ing expertise in STEM are the keys to America’s future competitiveness, and to creating the workforce of tal- ented, prepared people that SAIC needs for the future. SAIC is a committed sponsor of the country’s preemi- nent STEM program: the FIRST® Robotics Competition. I am proud of SAIC’s sponsorship, but I’m even more proud of our employees who volunteer in a variety of ways to support students in each of the FIRST leagues, as well as other STEM-related initiatives such as Project Lead the Way®. In FY11, we also continued our ongoing support of our military veterans through organizations such as the Paralyzed Veterans of America and the Wounded Warrior Project, as well as numerous charitable organizations. Ethics and Integrity Ethics and integrity have been at the forefront of SAIC’s culture since its founding in 1969. Our reputation for upholding the highest standards of personal integrity and business conduct has served us well and is essen- tial to our continued success in the marketplace. I am pleased that SAIC was named once again to FORTUNE’s list of the world’s five most admired compa- nies in the IT services industry. The list identified com- panies with the strongest reputations, based on feedback from executives, directors, and financial analysts. We also once again received the prestigious U.S. Department of Defense Nunn-Perry Award for mentor- protégé excellence. The award recognizes outstanding efforts to form mentor-protégé teams, enhancing the ability of mentored organizations, particularly small businesses, to increase their participation in government contracts and serve as engines for economic growth. An Integrated, Market-Driven Enterprise With a strong pipeline of opportunities and a more focused business portfolio, our team is energized to enter a new fiscal year. Our company’s founder, Dr. Bob Beyster, had a favorite poster that hung over his desk and read: “None of us is as smart as all of us.” Those words guided Dr. Beyster during his long, suc- cessful tenure at SAIC, and they continue to guide us today as we evolve to an integrated, market-driven enter- prise whose whole is greater than the sum of its parts. Walt Havenstein Chief Executive Officer 12000 10000 8000 6000 4000 2000 0 600 500 400 300 200 100 0 1.6 1.2 0.8 0.4 0.0 1000 800 600 400 200 0 800 700 600 500 400 300 200 100 0 Fiscal Year 2011 Financial Highlights Revenues in millions $11,117 $10,846 $10,070 $8,926 $8,060 Operating Income in millions $958 $867 $776 $673 $572 ‘07 ‘08 ‘09 ‘10 ‘11 ‘07 ‘08 ‘09 ‘10 ‘11 In Fiscal Year 2011 we delivered a solid and balanced financial performance. This is a testament to our 42 years of sustained growth and the demonstrated confidence we have earned from customers worldwide. Income From Continuing Operations in millions $569 Diluted Earnings Per Share From Continuing Operations $1.51 $500 $447 $390 $365 $1.24 $1.08 $1.00 $0.92 Cash Flow From Continuing Operations in millions $737 $693 $620 $583 $346 ‘07 ‘08 ‘09 ‘10 ‘11 ‘07 ‘08 ‘09 ‘10 ‘11 ‘07 ‘08 ‘09 ‘10 ‘11 Fiscal years end January 31 6 / 7 >> Leading the way deborah alderson President, Defense Joseph craver III President, Health, Energy stu shea President, Intelligence, Surveillance larry cox General Manager, Cyber and Solutions Group and Civil Solutions Group and Reconnaissance Group Information Solutions Business Unit >> Culture and Inclusion At SAIC, we believe diversity of thought and an inclusive environment drive innovation and creativity and create a competitive advantage in the marketplace. Our commitment to diversity and inclusion is tied to our core values, business objectives, and strategic goals. It helps us to attract and retain talented, engaged employees who are committed to maintaining our culture of high ethical standards, integrity, operational excellence, and customer satisfaction. > Standing, left to right: KatIe Bull Training Coordinator davId herBst Geographic Information Systems Specialist hIlary aralIs Statistical Data Analyst saBIne Bendenoun Sustainability Project Manager PatrIcK nelson Senior Business Development Manager Seated, left to right: larry Magday Deputy Division Manager henry hernandez Vice President, Diversity and Inclusion 8 / 9 C4ISR 10 / 11 urvesh shah System Integration Manager Mary allen Deputy Program Manager JacquelIne hurley Program Manager > Integrated Picture of Battlespace Gives Warfighters an Edge SAIC is a mission capability integrator that helps give warfighters an integrated picture of the battlespace, and ensures combatant commanders gain greater efficiency and effectiveness in deploying U.S. forces around the globe at any time. We do this by providing support and services for command, control, communications, comput- ers, intelligence, surveillance, and reconnaissance (C4ISR) systems worldwide. We help collect and disseminate information that provides the common operational or tactical picture through our C4 offerings. Our information assurance services support the secure exchange of digital, voice, and video data by C4ISR systems to appropriate levels of command—getting warfighters the right information at the right place and time. SAIC has strong credentials and a long history developing and deploying ISR solutions. Quick reaction capabilities (QRC) in airborne, maritime, and space-based solutions are enhanced by processing, exploitation, and dissemination technologies; and worldwide mission support helps our customers in the intelligence community and the Department of Defense (DoD) tackle the toughest global ISR challenges. Providing C4I Support for U.S. Central Command From Tampa, Fla., to Afghanistan, SAIC provides C4I support for the entire U.S. Central Command (CENTCOM) organization. This includes development of a new forward headquarters in Qatar and architecture and infrastructure support throughout the CENTCOM area of responsibility. On and off the battlefield, we assist CENTCOM with its Our CustOmers InClude: Department of Defense Intelligence Community Department of Homeland Security Department of Justice Department of State goal of achieving full interoperability of C4I systems among U.S., allied, and coalition forces. Our services include planning, program management, integration, operation, and maintenance of headquarters and joint theater-level communications and computer networks. Working with CENTCOM teams throughout Afghanistan— from the smallest forward operating bases to the four-star headquarters—we are assisting in the design, develop- ment, repair, and maintenance of hardware, software, systems, and networks for both U.S. and NATO forces. Supporting Quick Reaction Airborne ISR SAIC continues to enhance its position as a leading QRC integrator for DoD in aircraft integration, sensors, and ground station development, and processing supporting operational DoD programs in theater, while our deployed sensors flew nearly 10,000 hours last year supporting the warfighter in Iraq and Afghanistan. Our systems are leading the battle against the threats in improvised explosive devices (IED). Providing Full Motion Video Exploitation The Air Force Distributed Common Ground System (AF DCGS) is the service’s premier globally networked ISR weapon system. DCGS produces intelligence infor- mation collected by the U-2, RQ-4 Global Hawk, MQ-9 Reaper and MQ-1 Predator. Approximately 700 gigabytes of information flow through the system daily. SAIC sup- ports the AF DCGS video processing capability by providing technical services that support the system’s ability to process, view, and exploit full motion video provided by UAVs and other sensor platforms. Providing Actionable Geospatial Intelligence SAIC personnel provide key support for an important National Geospatial-Intelligence Agency project. Through their work, geospatial imagery collected by Predator, U2, and Global Hawk aerial assets was made available to a wide range of defense and intelligence users. The SAIC team received a Meritorious Unit Citation from the intelligence community for “extraordi- nary effort and exceptional teamwork” on this project. Enhancing Operational Intelligence A new tool has helped military personnel identify builders of improvised explosive devices, potentially saving the lives of civilians and soldiers alike. SAIC played a key role in developing the portable Biometric Automated Toolset (BAT). The BAT system is used by soldiers on patrol and base security personnel to access finger- print, iris, and facial scans for border control. SAIC provided operational support for the deployed system in Iraq and Afghanistan. Also enhancing SAIC’s ISR capabilities is our CounterBomber® product, which is capable of automati- cally detecting human-borne suicide bombers at ranges beyond the blast radius of the bomb. CounterBomber is currently deployed in theater and is credited with saving lives. Expanding Language Services Capabilities SAIC’s language professionals can seamlessly integrate with intelligence services such as all-source analysis, reporting, writing, and debriefing. With linguistic expertise in more than 70 languages and dialects, SAIC’s capa- bilities range from translation and interpretation to immersive training services and deployment readiness for the intelligence and defense communities. During the fiscal year, SAIC acquired technology, intel- lectual property, and related assets from three firms that 12 / 13 develop human language technologies: AppTek Partners, LLC; Applications Technology, Inc.; and MediaMind, LLC. SAIC now has a complete suite of products for text and speech (voice) processing, including machine transla- tion, knowledge management, and automated speech recognition tools for more than 30 languages. Federal government and commercial customers use these tools to automatically translate and transcribe large volumes of data and significantly reduce the time needed to edit and finalize translated output. Helping Transform the Defense Information System Network As the backbone worldwide communications network for DoD, the Defense Information System Network provides a wide range of information services to DoD users, including voice telephony, formal messaging, data networking, and video. As part of a major technology refreshment effort, we helped replace more than 200 end-of-life routers for the unclassified and classified IP network across the continental U.S., Europe, Pacific, and Southwest Asia theaters of operation. In addition, we helped the Defense Information Systems Agency develop the target architecture to identify the new platform and required backbone changes to meet current service delivery requirements and support the vision of an Everything-over-IP architecture to enable communications across all forces and locations. We also coordinated the transition of thousands of customer circuits to the new platform by helping to ensure that interfaces, cabling, cryptographic devices, and keying material were available end-to-end. Supporting the Missile Defense Agency Working with the Missile Defense Agency, SAIC supports an integral part of the Ballistic Missile Defense System, the Ground-based Midcourse Defense (GMD) element, which gives combatant commanders the capability to engage and destroy limited intermediate- and long- range ballistic threats to the United States. All ground systems components communicate through the GMD communications network, a secure data and voice communications system using both SATCOM and fiber optic cabling for long-haul communications. SAIC pro- vides a wide range of project management, operations, engineering, and information assurance support in leading the day-to-day monitoring and management of long-haul communications transport circuits. CaseStudy>>COMMERCIALLY-HOSTEDInFRAREDPAYLOAD InpartnershipwiththeU.S.AirForceSpaceandMissileSystemsCenter,SESWorldskies,U.S.governmentSolutions, andOrbitalSciencesCorporation,SAICcompletedthefirstCommercially-HostedInfraredPayload(CHIRP)Integrated SensorFunctionalTest. Developedanddeliveredinlessthantwoyears,CHIRPutilizesatelescopethatcanviewaquarteroftheEarthfrom geosynchronousorbit,andiscapableofhighframe-rateimaginginfourspecificspectralbands.Thelarge-formatfocal planearraysaccommodateawide-field-of-viewinfraredstaringsystem,andatthesametimereducecostandcomplexity. Theongoingsuccessofthisprogramdemonstratesthatavarietyofgovernmentmissionscanbeservedbyspecial purposepayloadshostedoncommercialspacecraftenablingSAIC’sAirForcecustomertofieldrequiredcapabilityin arapid-responsefashion. logIStICS, Re adIneSS & SuStaInment 14 / 15 cherrIe John Associate Buyer sergey BychKov Technical Support Specialist yvonne JosePh Deputy Program Manager > Tailored Solutions to Support Warfighters SAIC provides a wide range of logistics and product support solutions to enhance the readiness and operational capability of U.S. military personnel and their weapons and support systems. Our tailored solutions in logistics systems and technology, logistics integration, and supply chain management are helping meet the dynamic needs of the warfighter. We provide logisticians with an enterprisewide view of the logistics chain, from procurement to fulfillment. Our logistics, readiness, and sustainment solutions are helping customers across the Department of Defense as well as federal agencies and the commercial market. Our CustOmers InClude: Department of Defense Supporting the Army Sustainment Command • Defense Logistics Agency To help ensure that our soldiers have what they need, • Army • Navy • Marines • Air Force Commercial customers when and where they need it, SAIC is helping the Army Sustainment Command (ASC) enhance readiness and accelerate logistics support to commanders and troops in the field. SAIC provides centralized materiel management control and distribution services to the ASC, which serves as the Army’s logistics integrator for contingency and sustainment support of American fighting forces. Providing Supply Chain Services for Army Depots Under a contract awarded by the Defense Logistics Agency, SAIC supports the Anniston Army Depot in Alabama, the Red River Army Depot in Texas, and U.S. military customers around the world. SAIC provides supply chain management of industrial hardware and management support for aircraft electro-optics, as repair parts required for the repair of military vehicles, as well as supporting aircraft with ancillary equipment, well as other services, including collaborative demand self-protection systems, and armament systems. forecasting, parts acquisition, storage, delivery, inventory management, quality assurance, data management, field-based customer support, and order processing and fulfillment. Enhancing Military Training Our simulation technologies are providing soldiers with critical training prior to deployment to Iraq and Afghanistan. SAIC’s Common Driver Trainer (CDT) Supporting the Army’s 1st Theater received the 2010 National Training Systems Association Sustainment Command Modeling & Simulation Award for delivering simulation SAIC also provides logistics services in support of 1st technologies in support of the CDT Mine Resistant Theater Sustainment Command activities throughout Ambush Protected (MRAP) family of vehicles. SAIC has the U.S. Central Command area of responsibility. SAIC developed MRAP-All Terrain Vehicle (M-ATV) dash supports munitions storage and resupply efforts by panels to fit into the existing MRAP vehicle cabin, built operating ammunition supply point and theater storage by SAIC. The M-ATV is the fifth variant in SAIC’s CDT area activities. These activities include storage, product line, which includes the CDT Tank Variant. accountability, and distribution of ammunition stocks. SAIC delivered 16 tank variants to Fort Benning, Ga., Helping Establish Fiber Optic Network in 2010 to support tank driver training. in Afghanistan In addition, SAIC has introduced a new variant, the SAIC was contracted to engineer, install, integrate, and CDT Crew Compartment (CDT C2) virtual simulator. The operate Defense Information Systems Service Delivery CDT C2 is one of the first two-crew-member simulators Nodes in Afghanistan. The nodes provide a fiber optic that enables coordinated training between the vehicle network for increased bandwidth and improved driver and the operator of an articulating arm that connectivity for U.S. forces within Afghanistan and can detect, interrogate, and detonate improvised Southwest Asia. SAIC managed the complete logistics explosive devices. support as well as providing project management, installation, and engineering services. We continue to deliver onsite field support with technicians at these sites. Transforming Virtual Training Synthetic Environment Core (SE Core) is the U.S. Army’s Common Virtual Environment initiative to link virtual Expanding Support of Navy Aircraft Systems training simulation devices into an integrated and SAIC increased its support of Navy aircraft systems interoperable training system. Since 2005, the SAIC as a result of four SeaPort-e task orders awarded by the team has provided architecture analysis, development, Naval Surface Warfare Center—Crane. We are providing and technical and management support for the SE engineering, logistics, fabrication, and program Core Architecture & Integration Program under the Army’s 16 / 17 Program Executive Office for Simulation, Training and Reserve sites, helping reduce the amount of servers Instrumentation. SAIC’s team developed the Virtual and hardware required and optimizing efficiency. Simulation Architecture for the Common Virtual Environment, linking system and non-system virtual simulations into an integrated, interoperable training capability. The SE Core program has transformed traditional virtual training by representing and delivering today’s dynamic, changing operations environment in contemporary warfighter training. Receiving Recognition from DLA In 2010, the Defense Logistics Agency (DLA) honored SAIC for outstanding readiness support and recognized the company with its Business Alliance Award as well as a Bronze Land and Maritime Recognition for Excellence Award for superior quality and delivery performance on multiple logistics programs. For supply chain management Improving Military Readiness services provided on DLA’s Tires Privatization Initiative, SAIC supports the Advanced Information Technology SAIC was recognized for its contributions to the winning Systems program, a key automation integrator, sustaining of a second Bronze award presented to the prime and implementing technological capabilities as the contractor, Michelin North America. Army National Guard and Army Reserve transform into an operational force. These efforts are bringing training to the soldiers through mobile systems and online capabilities. In addition, a mobilization and soldier readiness software solution supports the National Guard Bureau’s deployment manning process, preparing soldiers and units for mobilization. SAIC integrated virtual platform technology at 54 Guard and four Army In addition, SAIC helped the DLA reach major milestones on its POLChem program, which supplies packaged petroleum, oils, lubricants (POLs), and chemical (Chems) products for U.S. military customers around the world. The program received superior customer assessments in 2010 as a result of achieving an overall quality rating of 99.58 percent. CaseStudy>>COUnTERRADIOCOnTROLLEDIMPROvISEDExPLOSIvEDEvICEELECTROnIC WARFARE(CREW )PROgRAM vitaltoprotectingMarinesincombatoperations,CREWsystemsarevehicle-mountedandman-packable,multiband radiofrequencyjammersdesignedtoblockenemyuseofselectradiofrequenciesandpreventtheremotedetonation ofimprovisedexplosivedevices.AsproductsupportintegratorfortheU.S.MarinesCorpsCREWprogram,SAICis responsiblefortheinstallation,logistics,andmaintenanceforCREWsystemssupportingcombatoperationsinAfghanistan. CREWsystemsremainanever-evolvingdefensivetool—changingasrequiredtoprotectourforcesagainstavery adaptiveenemy.Tohelpenhancethiseffort,SAICcreatedtheCREWManagementToolset,anenterprisesolution thatsupportsreal-timeinformationsharingandsynchronizesteamcollaborationandcommunicationacrossthe program.Thetoolsetalsoenables“in-the-field”datacollectionandtransactionprocessingtosupportusersworking inremotelocations. eneRgy 18 / 19 MIchelle rossI Senior Project Manager evIs couPPIs Vice President, Environmental Services erIn harrIs Online Marketing and Web Site Specialist > Integrated Solutions Strengthen the Enterprise SAIC is a leader in addressing global energy needs, concern for the natural environment, and advancing the infrastructure we rely on for our modern way of life. We provide innovative, integrated solutions that strengthen our customers’ enterprises and help them thrive in an increasingly complex world. In FY11, the company consolidated extensive energy, environment, and infrastructure capabilities within its wholly owned subsidiary, SAIC Energy, Environment & Infrastructure, LLC. Services include helping utility, financial, government, industrial, and municipal customers manage multipart challenges related to smart grid, energy effi- ciency, facilities design-build, climate change, capital program management, water, solid waste, and renewable resources. Developing Smart Grid Solutions SAIC is helping utilities across the country transition to smart grid systems designed to deliver power in an effi- cient, reliable, cost-effective, and eco-friendly way. For example, SAIC leads a new smart grid initiative program for the city of Lakeland, Fla. As Florida’s third-largest public power utility, Lakeland Electric provides electricity to more than 120,000 customers and is one of the first utilities in the country to pioneer a 100 percent rollout smart grid initiative. SAIC is responsible for the manage- ment, implementation, and integration of advanced meter- ing systems and is also providing process improvement Our CustOmers InClude: 3M Ameren Boral Bricks Chevron City of Lakeland, Fla. Department of Defense Department of Energy Environmental Protection Agency Holly Corporation Sacramento Municipal Utility District State of Hawaii Walmart services, incorporating a service oriented architecture, Excellence award for the design and construction of and installing metering infrastructures as well as a cus- the Dr Pepper-Snapple Soft Drink Production & tomer-facing Web portal. Lakeland expects the pro- Distribution Center in Victorville, Calif. SAIC completed gram to help improve operational efficiency, optimize the 900,000 square foot bottling facility on time and capital investments to minimize energy prices, and under budget. facilitate time-of-use pricing to give consumers more control over their energy bills. SAIC provided full architectural and engineering services for the design of a new cancer center on the campus Advanced metering infrastructure (AMI)—a key compo- of the University of Oklahoma Health Sciences Center in nent of smart grid technology—enables utility operators Oklahoma City, Okla. The project included master and consumers to better manage energy use. For the planning of the selected site and the design of a new city of Leesburg, Fla., SAIC identified and estimated a seven-story, outpatient facility, ambulatory cancer treat- variety of operational benefits of AMI in each of the utility’s ment center and parking garage. primary functional areas, including administration, field operations, office operations, revenue, and meter read- ing. The largest utilities in the state of Vermont are working with SAIC to support a collaborative AMI project. SAIC is helping to evaluate and recommend smart grid technologies, communication systems, and providing regulatory support for the utilities. In addition, the Maryland Energy Administration retained SAIC to prepare expert testimony that analyzed the costs and benefits of implementing a smart grid program, which aims to save taxpayer money, reduce stress on the state’s energy Promoting Energy Efficiency and Renewable Power Since March 2009, SAIC has successfully performed energy and water audits for 29 Air Force bases, covering 63.1 million square feet in more than 1,300 buildings across a wide spectrum of missions and functions. SAIC identified hundreds of energy and water conservation measures and used them to develop projects for each base. The effort will help the Air Force build a capital investment strategy for energy savings and renewable power. markets, and improve the environment. SAIC is also SAIC is leading an effort for the National Renewable helping the Sacramento Municipal Utility District deploy Energy Laboratory, funded by the Department of Energy, its Smart Meters Project. Designing Energy Efficient Buildings SAIC designs and builds energy efficient facilities for a wide range of customers. In FY11, SAIC won the Design-Build Institute of America 2010 National to help develop international standards for emerging marine and hydrokinetic technologies, which seek to generate renewable electricity from the nation’s oceans and free-flowing rivers and streams. SAIC serves as Head of Delegation for the U.S. in this 14-nation effort. 20 / 21 In addition, SAIC is helping state and city governments U.S. Army base ordered closed under the BRAC Act. develop and implement energy assurance plans As part of this effort, SAIC helped the Army search designed to increase energy resiliency by addressing for potential discarded military munitions resting in the a broad range of energy portfolios, including electric, water for generations. natural gas, propane, liquefied natural gas, and petro- leum distillates. Conserving Vital Resources As lead consultant on California’s Bay Delta Conservation Supporting Department of Defense Initiatives Plan, SAIC is helping the state plan for the continued SAIC worked with the Air Mobility Command (AMC) at delivery of water to 23 million residents and 3 million Scott Air Force Base to complete an environmental acres of farmland and provide for the recovery of impact statement (EIS) to base a family of remotely endangered Delta fish species. The Sacramento-San piloted aircraft (RPA) at Grand Forks Air Force Base in Joaquin Delta is a vital link in the state’s water system, North Dakota as directed by the Base Realignment and spanning five counties in northern California at the con- Closure (BRAC) law. The EIS was led by AMC and fluence of the Sacramento and San Joaquin rivers. included multiple major commands within the Air Force and the Army National Guard. The 119th Wing of the Air National Guard will train with and operate the Predator MQ-1 RPA and the Air Combat Command will operate the Global Hawk RQ-4 RPA out of Grand Forks. SAIC also supports ongoing investigation and environ- mental cleanup efforts at Fort Monroe, Va., a historic SAIC is also assisting the Environmental Protection Agency’s Climate Change Division in developing the Internet-based reporting system used by regulated facilities to submit annual Greenhouse Gas data required by the Mandatory Reporting of Greenhouse Gases Rule. CaseStudy>>gEOTHERMALPOWERPL AnTDESIgn-bUILDSUPPORT geothermalenergyisarenewablesourceofelectricityandiskeytoachievingU.S.sustainabilitygoals.Itisaclean, environmentallyfriendly,sustainablemethodofelectricalpowergeneration.InFY11,SAICwontwocontractstodesign andbuildgeothermalpowerplantsinnevada.ForTerragenSierraHoldings,LLC—arenewableenergycompany focusedongeothermal,windandsolargeneration—wearedesigningandbuildinganewbinarygeothermalpower plantwithanameplatecapacityof6.2megawatts. ForUSgnevadaLLC,awhollyownedsubsidiaryofU.S.geothermalInc.,aleadingrenewableenergycompany, SAICisprovidingengineering,procurement,andconstructionservicesforphaseoneoftheSanEmidioproject— relocationandreplacementofanexistinggeothermalpowerplantinnorthwestnevada. He altH 22 / 23 Bruno nardone Vice President, Healthcare Transformation taKIsha schulterBrandt Health and Human Services Account Manager Mervyn santos Division Manager > Increased Efficiencies Help Improve Care Our CustOmers InClude: Department of Agriculture Department of Defense SAIC is helping government and commercial customers improve the quality of healthcare, while increasing efficiencies and lowering cost. We apply our expertise in standards and infor- matics to enable the secure exchange of clinical data across local, regional, and national information infrastructures to improve • Army Medical Research and health outcomes. Materiel Command • Military Health System • Naval Health Research Center Department of Health and Human Services Our technology experts help facilitate the use of electronic health records to improve patient care and public health, con- duct biomedical research to support global health initiatives, and provide customers with health data analytics solutions • Centers for Disease Control and that turn data into meaningful information. SAIC creates appli- Prevention cations and platforms that integrate health and biomedical • Health Resources and Services data from disparate sources to enable secure data sharing Administration • National Institutes of Health –Centers for Scientific Review – Electronic Research Administration – National Cancer Institute – National Heart, Lung, and Blood Institute – National Institute of Allergy and Infectious Diseases • Substance Abuse and Mental Health Services Administration Department of Veterans Affairs • Veterans Benefits Administration • Veterans Health Administration and analysis to improve decision-making, while protecting patient privacy. Helping the Military Health System Deliver Better Care SAIC is helping the Department of Defense’s Military Health System (MHS) deliver better care to more than 9 million ser- vice members and their families by supporting DoD’s elec- tronic health record system at 59 hospitals and 364 health clinics around the world. In FY11, we continued to support col- laboration and interoperability initiatives for electronic health records between DoD and the Department of Veterans Affairs at the James A. Lovell Federal Health Care Center in Illinois. In addition, we continue to provide systems monitoring and man- agement services to help assure the availability and reliability of MHS applications on its global network infrastructure. Providing Family Support and Counseling Services Supporting the National Institutes of Health (NIH) Since 1987, SAIC has delivered substance abuse and coun- SAIC is helping the NIH’s National Institute of Allergy and seling services to dependents of service members stationed Infectious Diseases Division of Microbiology and Infectious outside of the United States to foster mission readiness and Diseases (DMID) save lives by providing regulatory expertise quality of life support. In FY11, DoD awarded SAIC a blanket and technical support for clinical research programs. For purchase agreement to continue managing the program. the last two years, SAIC has managed several processes Our virtual world technology is also being used to support warfighters and their families. In FY11, the U.S. Air Force awarded SAIC contracts to pilot the feasibility of providing virtual family support and mental healthcare for deployed personnel to help mitigate the familial, societal, and that enabled DMID to submit the first sets of H1N1 Original Investigational New Drug Applications to the Food and Drug Administration, which included several unique proto- cols designed for clinical trials for pediatric, adult, and elderly populations. emotional effects of war. SAIC is providing its On-Line Assisting Health Information Exchange Interactive Virtual World Environment (OLIVE) software SAIC is using its health information technology (IT) and platform, hosting services, hardware, technology training, systems integration expertise with Inland Northwest Health and customized services. Conducting Research to Assist Wounded Warriors For the Naval Health Research Center (NHRC), SAIC is sup- porting human performance physiology and psychological studies by planning, coordinating, designing, and executing experimental protocols. The goal is to develop surveillance markers of traumatic brain injury and establish return-to-duty criteria for wounded service members. SAIC and NHRC Services (INHS), an innovative health information exchange based in Spokane, Wash., to leverage electronic health records to help public health authorities identify and track outbreaks of potentially catastrophic epidemics, such as H1N1 influenza. SAIC, in conjunction with the University of Washington’s Center for Public Health Informatics, has connected INHS hospital customers to public health departments over the last two years. conduct research using the Computer Assisted Rehabilitation This year, SAIC and INHS teamed to win a new contract with Environment system—one of only three virtual reality systems the Social Security Administration to share electronic health within DoD that is used to accelerate rehabilitation research. information to help speed decision-making on disability claims. 24 / 25 Supporting the Centers for Disease Control and Prevention (CDC) that domestic and imported meat, poultry, and egg prod- ucts are safe, wholesome, and properly labeled. SAIC is SAIC is helping the CDC to support the exchange of lab supporting FSIS in identifying food products associated data in the identification and reporting of disease condi- with food borne illnesses and developing a computerized tions. Under a contract awarded in FY11, we are developing approach for tracking food safety performance at meat and a standards-based architecture to continue progress toward poultry slaughter and processing facilities throughout the full interoperability among public health laboratories and United States. between public health laboratories and healthcare provid- ers. The goal of this high-profile effort within the CDC is to develop the infrastructure to support laboratory electronic test orders and test results between public health partners. Supporting the National Cancer Institute (NCI) The Laboratory of Proteomics and Analytical Technologies, which our wholly owned subsidiary SAIC-Frederick oper- ates for NCI, has identified a biomarker for kidney cancer As a respected provider of timely, scientifically based, that can be detected in a blood sample. This is a first step and trusted health information and data, CDC relies toward finding a renal cancer biomarker that can be seen on large IT systems for information collection, storage, in a simple blood test and alert doctors to the disease at and exchange. SAIC won a contract in FY11 to provide its earliest stage, when treatment is most effective. SAIC- technical services to help the agency modernize its Frederick is also assisting NCI in developing the next gen- information management systems. eration of treatments designed to match the molecular Helping to Improve Food Safety The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) is responsible for ensuring characteristics of individual tumors, which are unique from patient to patient. CaseStudy>>bIOPHARMACEUTICALDEvELOPMEnTPROgRAM ThenationalCancerInstitute’sbiopharmaceuticalDevelopmentProgram(bDP),operatedbySAIC-Frederick,developsdrugsfor furtherresearchandtestinginhumanclinicaltrials,takingonprojectsthatfocusonnewtargetsinveryearlydevelopment,often priortoanycommercialinterest.TheprogrammanufacturedthedrugforaphaseIIIclinicaltrialthatshowedasignificantimprove- mentinoutcomeamongchildrenwithhigh-riskpediatricneuroblastoma,themostcommonchildhoodcancer.Theexperimental treatmentstimulatestheimmunesystemtoattackcancercells.ThebDPhasalsodevelopedandproducedprototype,clinical-grade drugsformetastaticmelanoma;metastatickidneycancer;lymphoma;acutemyeloidleukemia;TypeIdiabetes;andcancersof thecolon,neckandbreast. CybeRSeCuRIt y 26 / 27 Bruce Jones Program Manager Jo Jo Ito Business Analyst JIM Patterson Vice President, CloudShield U.S. Sales > Sustained Innovation, Research Addresses Cyber Threats Our CustOmers InClude: Commercial Customers Department of Defense Department of Homeland Security Department of the Treasury Intelligence Community International Customers NASA SAIC’s long-term cyber and intelligence expertise focuses on solutions that enhance today’s security and mission capability, while proactively building solutions to help equip enterprises for tomorrow’s threats. Working closely with our customers, our cyber experts help protect the integrity of communications, financial, energy, health, and defense systems. SAIC understands that the dynamic nature of cyber requires sustained research, innovation, and training as well as increased public-private sector partnership. Investing in Innovation and Collaboration Taking a hands-on approach to tackling cyber challenges, we opened a new Cyber Innovation Center (CIC) in Columbia, Md. This facility better enables us to help government and commercial enterprises prepare for, protect against, and respond to a wide array of cyberse- curity threats. The CIC includes a technical solutions lab and secured infrastructure intended to help SAIC develop and deliver comprehensive cyber-risk management programs to identify and neutralize cyber attacks, integrate and manage information security services to protect mission-critical data, and perform certification and accreditation testing of information technology systems. Supporting Key Cyber Programs During the year, SAIC won several contracts focused on intelligence analysis and cyber programs for critical infrastructure, government and intelligence community customers. For example, SAIC cyber experts are supporting the day-to-day operations of the Defense-wide Information Assurance Program, including compliance, computer network defense, and workforce improvement. The program provides for the availability, integrity, authentica- tion, confidentiality, non-repudiation, and rapid restitution of information and information systems that are essential elements of the Defense Information Infrastructure. SAIC has a long history of providing support to research, development, and test and evaluation activities. Under a contract awarded by the Department of Defense (DoD), Defense Technical Information Center, we are providing technical services to help secure mission critical data and strengthen sharing capabilities at DoD components and other government agencies. The services we provide under this contract will support these important efforts in the defense community, and help meet an expanding need to integrate, share and secure data used to meet national security objectives. We are also providing cyber research and development support for an important U.S. ally. Working with the Australian government, our scientists and engineers are developing technologies aimed at forensic analysis of digital media, real-time characterization of data flows in carrier grade circuits, and data mining systems. Delivering Expertise to the U.S. National Cyber security Strategy SAIC cyber professionals are assisting with the national strategy on cybersecurity. SAIC personnel provide cyber- oriented services across the intelligence community on policy, cyber intelligence, counterintelligence, processes, strategies, and coordination of cyber activities. The Comprehensive National Cybersecurity Initiative is the largest sustained cybersecurity initiative in the U.S. government to date. The initiative touches on every major department and agency involved in cybersecurity with a significant portion focused outside of the intelli- gence community. As such, this initiative will be transi- tioned out of the intelligence community to The White House. SAIC personnel are integrally involved as port- folio managers, advisors, and consultants on this national effort and will continue support during and after the transition. Providing Cyber Investigations and Digital Forensics Support Continuing our long history of expertise in cyber inves- tigations and digital forensics, we are providing cyber incident investigations and forensics support to a num- ber of commercial and government organizations around the world. Additionally, SAIC invested further in its digital forensics capability by establishing a dedicated laboratory focused on mobile media and devices due to the increased threat trend in this market. 28 / 29 Achieving Recognition for Cyber Capabilities During the fiscal year, a number of SAIC cybersecurity programs received national recognition. For example, SAIC received the Air Force Association’s highest honor in the field of aerospace education—the Hoyt S. Vandenberg Award, which honors outstanding achieve- ments of men and women throughout the Air Force, government, academia and aerospace industry. SAIC shared the award with the University of Texas at San Antonio for its founding partnership, and Northrop Grumman for its presenting sponsorship of CyberPatriot, the national high school cyber defense competition designed to excite, educate and motivate the next gen- eration of cyber defenders, and other science, technol- ogy, engineering, and mathematics graduates. The CyberPatriot competition is powered by SAIC’s patent-pending CyberNEXS cybersecurity trainer. CyberNEXS provides a live cyber environment in which students have to maintain critical services while responding to real-world hacker attacks. SAIC’s CyberNEXS team also received an award for the success it has had with the San Diego Mayor’s Cyber Cup, a cybersecurity competition designed for high school students that provides a virtual training and competition environment with live, real-time scenarios to fight cyber attacks. SAIC also was honored for CyberProtect, a web-based training exercise simulation for risk management and network defense. It enables individuals to play one-on- one against the computer’s artificial intelligence in an exercise intended to increase familiarity with information assurance concepts and terminology. CyberProtect recently won the silver medal Brandon Hall Award in the “Best Learning Game” category. In the commercial market, SAIC received the Best-in- Class Award at the 2010 Archer Governance, Risk and Compliance Summit. SAIC built the operational secu- rity management system on the Archer SmartSuite Framework to automate and manage processes around inventory, incidents, change requests, shift logs, online standard operating procedures, project management and custom signatures, as well as integrate third-party technologies to eliminate data duplication and centrally report on security events. CaseStudy>>CLOUDSHIELDnET WORkSECURIT YSOLUTIOnS Fiscalyear2011provedtobeasuccessfulyearforSAICanditswhollyownedsubsidiaryCloudShieldTechnologies, Inc.,aleadingcybersecurityandnetworkinfrastructuresolutionsprovider.Forexample,CloudShieldinstalledhard- wareandsoftwareforamajorEuropeanproviderofwirelessandbroadbandservicestoseveralmillioncustomers.The deployedsolutionconsistedofproductsandservicesaimedatimprovingthetelecommunicationscompany’soverall defensivenetworkpostureandgainingbackperformanceinthefaceofmaliciousattacksthatcanconsumeinexcess of80percentofthebandwidth.Additionally,CloudShieldcontinuedexpansioninSouthAmerica,deployingnetwork trafficmanagementandsecurityfunctionsincludingDnSdefenseforalargetelecommunicationsoperatorinbrazil. Also,CloudShieldlaunchedanewapplication,CloudSentry®,whichcombinesthepowerofactivethreatintelligence onitsprovencybersecurityplatformtoenableeffectivedefensesagainsttoday’smostsophisticatednetworkattackers. CloudSentryisdesignedtoprotectthemissioncriticalinfrastructureoftieronetelecommunicationscompanies, Internetserviceproviders,andnationalgovernments.Itprovidescarrier-classconvergedthreatsolutionsaddressing cybersecurityconcernssuchasbotnets,malware,phishing,andspam. >> Corporate Responsibility SAIC’scommitmenttomaking significantandlastingimprove- mentsinourcommunitiesand theenvironmentiscentraltoour viewofcorporateresponsibility andareflectionofthetalented professionalswhoworkhere. Above, from left: Through our sponsorship of FIRST robotics competitions and other activities, we are helping inspire young people to enter science, technology, engineering, and mathematics fields; SAIC joined with the WIMSA Foundation to honor SAIC women veterans who are inspiring young women to pursue STEM- related careers. Inset: Our commitment to veterans includes support of Paralyzed Veterans of America (PVA) events, such as the National Wheelchair Games. 30 / 31 Inspiring Young People Toward a Career in Engi neering In FY11, SAIC expanded its enterprisewide program to help inspire and engage students in the pursuit of sci- ence, technology, engineering, and mathematics (STEM) education by increasing its support of Project Lead The Way (PLTW®), FIRST® (For Inspiration and Recognition of Science and Technology), and other organizations working in the STEM arena. PLTW partners with middle schools and high schools to prepare students for the jobs of the 21st century by engaging them in a hands-on, project-based curricu- lum that emphasizes innovation and critical thinking. SAIC helped PLTW implement initiatives to enhance engineering curricula at high schools in Alabama, Florida, Kentucky, and Virginia. An increasing number of SAIC employees also supported FIRST, which works to inspire students from kindergarten through high school to be science and technology leaders, by men- toring students participating in robotics competitions across the country. Our continued support to the Women in Military Service for America (WIMSA) Memorial included a donation to the WIMSA Foundation’s new initiative to inspire more young women to pursue STEM-related careers. To further strengthen our science and technology ties with universities across the nation, SAIC launched a number of new initiatives in FY11 as part of its Strategic University Alliances program. For example, we teamed with the University of Maryland to promote education, research, and technology development in cybersecu- rity. We also expanded our support to the University of Alabama in Huntsville business school to further academic programs in enterprise resource planning, and launched a new alliance with the University of Southern California’s Viterbi School of Engineering. Support for Our Veterans Dedicated to serving the interests of veterans, SAIC works with military transition centers, military associa- tions and veteran organizations to identify and hire candidates who have served in the military. We also team with the Wounded Warrior Project, an organiza- tion that assists severely injured service members with career training. Today, nearly 25 percent of SAIC’s workforce comprises military veterans—approximately 10,000 people. SAIC is also a strong supporter of the Paralyzed Veterans of America (PVA), which works to help find care, benefits and jobs for veterans with spinal cord injuries or diseases. SAIC’s contribution to the PVA included support of the National Veterans Wheelchair Games, the world’s largest annual wheelchair sports competition, and the Paralyzed Veterans Golf Open. Our employees serve on the boards of several organiza- tions that make a difference to the lives of our service- men and servicewomen every day, including the Special Operations Warrior Foundation, Tragedy Assistance Program for Survivors, and several USO chapters. Environmental Stewardship SAIC takes practical and innovative steps to minimize the environmental impact of our facilities by, among other things, incor porating sustainable designs into our building construction and promoting composting and recycling at our facilities. As a result, we received recognition from Newsweek as one of the greenest big companies in America for the second straight year. This list rates companies based on their environmental impact, green policies and performance, and reputation. For the third consecutive year, SAIC sponsored the band O.A.R. (Of a Revolution) on its 2010 Green Dream Tour, which aims to educate fans about environmental responsibility through recycling. SAIC employee volun- teers helped collect more than 21,000 pounds of recy- clables during the tour—nearly three times the amount collected the previous year. These activities represent only a portion of SAIC’s actions in the area of corporate responsibility. For the complete story, please refer to our latest corpo- rate responsibility report on www.saic.com/about/ corporate-responsibility/. >> Directors Walter P. Havenstein Chief Executive Officer A. Thomas Young Chair of the Board Former Executive Vice President, Lockheed Martin Corp. France A. Córdova President, Purdue University Jere A. Drummond Former Vice Chairman, BellSouth Corp. Thomas F. Frist, III Principal, Frist Capital L.L.C. John J. Hamre CEO and President, Center for Strategic & International Studies Miriam E. John Former Vice President, Sandia National Laboratories Anita K. Jones University Professor Emerita, Computer Sciences, University of Virginia John P. Jumper General, United States Air Force (Ret.) Harry M.J. Kraemer, Jr. Former Chairman, President and Chief Executive Officer, Baxter International, Inc. Lawrence C. Nussdorf President and Chief Operating Officer, Clark Enterprises, Inc. Edward J. Sanderson, Jr. Former Oracle Corporation Executive Louis A. Simpson Former President and CEO of Capital Operations, GEICO Corp. 32 >> Stockholder Information SAIC on the Internet Information on SAIC’s services and capabilities can be found at the SAIC home page on the Internet (www.saic.com). Financial results, corporate news releases, and other SAIC information also can be found at this Internet address. Independent Registered Public Accounting Firm Deloitte & Touche LLP San Diego, Calif. Corporate Headquarters 1710 SAIC Drive McLean, VA 22102 703-676-4300 Stock Listing SAIC, Inc. is traded on the New York Stock Exchange under the symbol SAI. Stockholder Services Questions concerning accounts for registered stockholders and other stock matters—including name or address changes, stock transfers, option exercises, or other services— should be directed to SAIC’s stock plan administer and transfer agent: Stockholder Relations Questions from stockholders, analysts, and others can be directed to: Paul E. Levi Senior Vice President, Investor Relations SAIC 1710 SAIC Drive McLean, VA 22102 Telephone: 703-676-2283 Email: Paul.E.Levi@saic.com Annual Report and Form 10-K The SAIC 2011 Annual Report and Form 10-K are available from the SAIC Web site at www.saic.com. An Adobe Acrobat Portable Document Format (PDF) can be downloaded BNY Mellon Shareowner Services from this location. U.S. Telephone: 866-400-SAIC International Telephone: 201-680-6625 www.bnymellon.com/shareowner Produced by SAIC Communications 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 our actual results, performance, or achievements or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2011, 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. The SAIC logo and VACIS are either registered trademarks or trademarks of Science Applications International Corporation in the United States and/or other countries. CloudSentry is either a registered trademark or trademark of CloudShield Technologies, Inc., in the U.S. and/or other countries; CounterBomber is either a registered trademark or trademark of Science, Engineering and Technology Associates Corporation in the U.S. and/or other countries; FIRST is either a registered trademark or trademark of the United States Foundation for Inspiration and Recognition of Science and Technology in the U.S. and/or other countries; Project Lead The Way and PLTW are either registered trademarks or trademarks of Project Lead The Way, Inc. in the U.S. and/or other countries. Photo Credits: Page 16 far left photo courtesy of U.S. Army; page 31 small photo courtesy of Paralyzed Veterans of America. © 2011 Science Applications International Corporation. All rights reserved. Printed on recycled paper. 1710 SAIC Drive McLean, VA 22102 703.676.4300 www.saic.com 

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