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saic annual reports 2005

  1. 1. 2OO5 Fiscal Year Annual Report ™ FROM SCIENCE TO SOLUTIONS
  2. 2. |1 SAIC DELIVERS REAL INNOVATION REAL INDEPENDENCE In a world where all three are increasingly rare, SAIC deliv- REAL VALUE ers the genuine article. The result: better solutions for our customers. Real innovation often occurs at the intersection of differ- ent disciplines, such as information technology and biol- ogy. At SAIC, we have a rich diversity of scientific, engineer- ing, and IT experts who excel at cross-disciplinary problem solving. Thanks to their creativity and innovation, we have a well-deserved reputation for solving some of our custom- ers’ most difficult and complex problems. And a reputation for delivering genuinely significant – and useful – results. True platform independence means we can choose the best technologies and integration strategies to meet our customers’ needs. We have access to a wealth of software, hardware, and technology options. More importantly, we have the experience and knowledge to help customers make better choices on how to leverage new and existing technologies and resolve technology concerns. Real value is our promise to our customers. SAIC organi- zations stay close to their customers, help them anticipate new requirements in a changing world, and respond with speed and agility. And our organizations create highly mo- T A B L E O F C O N T E N T S Message to Stockholders 2 tivated employees who feel an ownership for the company Solutions for Government and Commercial Customers 5 and its results. Systems Engineering and Integration 6 Research and Development 10 These are just some of the reasons SAIC is a world-class Defense Transformation 14 Logistics and Product Support 18 information technology company and a world-class science Intelligence Solutions 22 Homeland Security 26 and engineering company. But the most important reason: Commercial Services 32 Employee Ownership Culture 36 We deliver the best solutions for our customers. Team SAIC 38 Board of Directors 40
  3. 3. 2| |3 SAIC 2005 ANNUAL REPORT execute and innovate, and perform and deliver. many opportunities for growth in this arena. We believe this is the best way to thank our cus- tomers for their business and support. Our changing business portfolio Because of our customers’ confidence in SAIC, Our business and technology portfolio must our company revenues were $7.2 billion in Fiscal reflect changing business realities. Shortly after Year 2005, a 23% increase for the company as a fiscal year end, we completed the sale of our whole. Operating income rose 24%. Telcordia Technologies subsidiary to Providence We set records in total contract awards and in Equity Partners and Warburg Pincus. The sale funded contract backlog. But the most dramatic – which has a pre-tax value of approximately move occurred in our cash flow from operating $1.35 billion in cash – strengthens SAIC’s balance activities, which jumped 61%. Cash flow is the sheet and provides funds to pursue other lifeblood of our company, generating free cash to strategic initiatives. Since Telcordia has now been make strategic acquisitions and investments to classified as a discontinued operation, the SAIC fuel our growth and create long-term value. revenue, operating income, and cash flow results I cited earlier do not include Telcordia’s financial Extraordinary growth in government business results. The key driver for our growth was outstanding Telcordia’s market – the commercial telecom performance in our government business, led by space – has suffered a number of setbacks in Duane Andrews, who was recently promoted to recent years. I’m delighted we found two firms Chief Operating Officer. Achieving this extraor- that understand Telcordia’s market space and CEO Ken Dahlberg (right) and COO Duane Andrews (left) dinary growth meant capturing market share strong potential; this improves Telcordia’s prob- from determined competitors in an environment ability of success within a consolidating industry. where many government budgets were flat or While the commercial telecom market nearly so. Last year, you heard me say we were struggled, SAIC’s telecom work for government creating a more streamlined organization with customers grew dramatically. Our government sharper customer and market focus. These out- telecom business now generates hundreds of standing results speak for themselves. millions of dollars in annual revenues. Our work Four of the five operating groups turned in involves advanced optical networks and satellite stellar performances. Mark Hughes’ systems and communications, management of converged net- network group, Carl Albero’s naval engineering works, and high-level security. MESSAGE STOCKHOLDERS TO group, and George Singley’s transformation and We remain committed to the commercial logistics group grew 37%, 30%, and 21%, respec- space and see many new opportunities emerg- tively. Don Foley’s intelligence and research group ing. For example, we are well positioned to help SAIC delivered superb results in both technical of their lives. Some of the most admirable are the grew 32%, becoming the largest in the com- the “super majors” in the oil industry transition and financial performance this past year. I want SAIC employees working in unstable regions of pany. Don accepted a new position as our Chief next-generation digital oil field technology from to thank the two groups responsible for our suc- the world, such as Iraq and Afghanistan, in order Engineering & Technology Officer, and in FY06, his successful pilots to full-scale deployment. Already, cess – our customers and our employees. to protect our freedom. organization divided into two new groups, now we are helping Shell, ChevronTexaco, and BP Our customers face some of the most difficult Most of all, we at SAIC are honored by our cus- led by Trey Smith and Larry Prior. develop and deploy the technologies needed to and mission-critical challenges in the United tomers’ trust and confidence in our experience, Larry Peck’s enterprise infrastructure group make the next generation oilfield a reality. States and even the world. At SAIC, it is our privi- ability, and integrity. I could talk about our strong also delivered market-beating growth and won lege to help meet those challenges. The high- ethics program, and the fact that SAIC has been one of SAIC’s most important contracts – the U.S. Discipline and entrepreneurship – the keys to caliber work that our men and women perform a member of the Defense Industry Initiative on Army’s Guardian Installation Protection Program. our future every day makes real contributions to the security Business Ethics and Conduct since its formation Most of our growth came from the national We are now working to build a stronger SAIC, bet- and defense of our nation, and to cancer research, in 1987. But the bottom line is how we execute security arena, where we continued to find new ter able to win and execute larger systems inte- education, environmental cleanup, robotics, space for our customers. SAIC executes approximately opportunities and win market share. gration contracts. At the same time, we continue exploration, and countless other areas. 9,000 contracts annually, and last fiscal year we Our work with civil agencies also showed solid to strengthen the parts of our culture that made I am especially proud of the SAIC employees had a 95% win rate on recompete contracts. growth and strong potential. As those agencies SAIC a multibillion-dollar engine of growth in who have made service to country a central part We earn our customers’ trust each time we upgrade their IT infrastructures, we expect to see professional services and smaller contracts.
  4. 4. 4| |5 SAIC 2005 ANNUAL REPORT To do so, our culture is embracing both disci- experiences. Our future success depends on it. pline and entrepreneurship. The latter has always To do so, we strengthened initiatives to grow been in great supply in SAIC. We introduced moreEarningsper Share leaders, improveNetIncome diversity, and Diluted Earnings per Share Net Income Diluted Earnings per Share Diluted Net Income future workforce Millions Millions Millions of the former when we launched new strategic expand training opportunities. We also strength- $8$8 2005 $409 2005 $409 2005 $2.18 $8 2005 $2.18 $2,000 2005 $409 $2,000 2005 $2.18 our capabilities in pivotal jobs such as “pro- campaigns in what, we believe, will be our most ened $2,000 2004 $351 2004 $351 2004 $1.86 2004 $1.86 2004 $351 2004 $1.86 important growth areas. The experience and 2003 $1.28 manager” and “systems engineer.”$259 gram 2003 $259 2003 2003 $1.28 2003 $259 2003 $1.28 insights of our Directors and top managers $6 were Net gains from And we still believe our employee Netgains from ownership Net gains from Net gains from Netgains from gains from $6 Net $6 investment activities investment activities investment activities investment activities investment activities investment activities crucial in creating these campaigns, which will and sales ofofbusiness is one of the keys to motivate theof business culture and sales best and sales ofof business and sales business and sales business and sales of business $1,500 $1,500 $1,500 units and subsidiary units and subsidiary units and subsidiary units and subsidiary units and subsidiary units and subsidiary guide our efforts to capture future key contracts. common stock brightest to perform at top levels forstock and our common stock common stock common common stock common stock Our FY06 operating plan is tightly integrated customers. That’s why we continue to seek ways $4$4 $4 * All years presented with our**haveyears presented All years presented All new strategic campaigns and our stra- to strengthen this important part of our heritage been restated have been restated have been restated totoshow Telcordia show Telcordia to show Telcordia $1,000 $1,000 tegic imperatives asas technology development, Technologies, Inc. for – and our future. $1,000 Technologies, Inc. Technologies, Inc. as discontinued discontinued $2$2 discontinued $2 acquisitions, and improvements to our informa- operation operation operation tion technology infrastructure. $0 $0 $0 $0 $0 $0 ’01 ’05 ’01 ’05 ’01 ’05 ’01 ’05 Employee diversity and empowerment ’01 ’05 ’01 ’05 Going forward, we must hire, retain and grow the KEN DAHLBERG best and brightest from diverse backgrounds and CEO, President, and Chairman of the Board Revenues Operating Income Stockholders’ Equity Revenues Operating Income Stockholders’ Equity Revenues Operating Income Stockholders’ Equity Millions Millions Millions Millions Millions Millions Millions Millions Millions our group m anagement tea m: $500 $500 $500 $7,000 2005 $7,187 2005 $488 2005 $2,351 $7,000 2005 $7,187 2005 $488 2005 $2,351 $7,000 2005 $7,187 2005 $488 2005 $2,351 2004 $5,833 2004 $395 2004 $2,203 2004 $5,833 2004 $395 2004 $2,203 2004 $5,833 2004 $395 2004 $2,203 $3,000 $3,000 2003 $4,835 2003 $311 2003 $2,020 2003 $4,835 2003 $311 2003 $2,020 $3,000 2003 $4,835 2003 $311 2003 $2,020 $6,000 $6,000 $6,000 Group Presidents from left to right: $400 $400 $400 $5,000 $5,000 George Singley III, Trey Smith III, Mark Hughes III, $5,000 $300 $300 $300 $2,000 $2,000 Larry Peck, Carl Albero, and Lawrence Prior III $2,000 $4,000 $4,000 $4,000 $3,000 $3,000 $3,000 $200 $200 $200 $1,000 $1,000 $2,000 $1,000 $2,000 $2,000 $100 $100 $100 $1,000 $1,000 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 ’05 ’05 ’05 ’05 ’05 ’05 ’01 ’01 ’01 ’01 ’01 ’01 ’05 ’05 ’05 ’01 ’01 ’01 Diluted Earnings per Share Diluted Earnings per Share Net Income Net Income Millions Millions $8 $8 2005 2005 $409 $409 2005 2005 $2.18 $2.18 $2,000 $2,000 2004 2004 $351 $351 2004 2004 $1.86 $1.86 All years 2003 2003 $259 $259 2003 2003 $1.28 $1.28 presented have Net gainsNet gains from from Net gainsNet gains from from SOLUTIONS GOVERNMENT $6 $6 for been restated investment activities activities investment investment activities activities investment and salesand sales of business of business and salesand sales of business of business to show $1,500 $1,500 units andunits and subsidiary subsidiary units andunits and subsidiary subsidiary common common stock stock common common stock stock Telcordia COMMERCIAL CUSTOMERS and $4 $4 Technologies, * have been restated restated * have been All years presented All years presented Inc. as a to show TelcordiaTelcordia to show $1,000 $1,000 Technologies, Inc. as Inc. as discontinued Technologies, discontinued discontinued $2 $2 operation operation operation $0 $0 $0 $0 ’01 ’01 ’05 ’05 ’01 ’01 ’05 ’05
  5. 5. 6| |7 SAIC 2005 ANNUAL REPORT SYSTEMS ENGINEERING INTEGRATION AND How much IT security is enough? architecture and data network linking 22 agencies encompassing 180,000 employees. How much more value could you We did so on an incredibly accelerated schedule and won praise from then DHS CIO extract from your data systems Steve Cooper for our work. We are currently developing the ground- if they were compatible? How breaking architecture for a networked “system of systems” for the U.S. Army’s Future do you know if it’s the right time Combat Systems program. The Boeing-SAIC team is the Lead Systems Integrator for to innovate? How can you build this program. This enormously complex undertaking requires a system that is open more stability and reliability into and flexible to accommodate future needs while simultaneously employing the state an already complex and unwieldy of the art today. Since 2003, Boeing and SAIC have developed a common operating infrastructure when operational environment, launched an integration lab, and delivered a virtual framework and requirements and technologies integrated simulations – all while keeping the program on cost and on schedule. keep changing? At SAIC, we help The Joint Project Manager Guardian chose SAIC as Lead Systems Integrator for the customers answer tough questions Installation Protection Program that started last fiscal year. To help protect DoD installa- like these every day. tions, we are integrating chemical, biological, radiological, and nuclear protection systems Even more important, we deliver proven at up to 200 DoD installations worldwide. performance time and again on some of Installation protection is provided through the U.S. Government’s most complex and an integrated family of systems focused on important systems. continuity of the military mission. That’s why SAIC consistently ranks among But the best evidence for our expertise the top federal systems integrators year and commitment in integrating major after year. It’s also why customers choose systems comes from our longest-term SAIC for some of the most difficult systems customers. The Royal Saudi Naval Forces has integration tasks imaginable. worked with SAIC for more than a quarter After the Department of Homeland century. As part of our support to the Saudi Security opened its doors in 2003, we Navy, we integrated the first operational integrated its first-ever enterprise command and control system in the Persian SAIC Security Operations Centers, such as this one (above), deliver threat intelligence and managed security services to government and commercial clients worldwide. Our high cus- tomer retention rate testifies to the strength of this capability.
  6. 6. 8| |9 SAIC 2005 ANNUAL REPORT FORTUNE magazine has ranked SAIC among America’s “Most Gulf region. Years later, the Gulf War began be repeatable and a higher level of customer and our system dramatically and successfully satisfaction. Admired Computer and Data Service Companies” for three scaled up and expanded its operations. When These were also some of the scoring consecutive years. Riyadh came under fire, SAIC personnel chose criteria when results were announced for to stay in country and support the system’s the U.S. Government’s Top 5 Quality Software operations. After hostilities ceased, Saudi Projects. Simulation software developed by authorities were lavish in their praise. SAIC for the U.S. Army was named a winner Our support continues today with major – for the second year in a row. new contracts to upgrade this large-scale C4I That software was developed by our system – and its communications networks SAIC Orlando organization, which has been – at the main naval headquarters in Riyadh, externally assessed at the highest level of at Western Fleet headquarters on the Red software and systems engineering maturity, integration Sea, and at Eastern Fleet headquarters on the CMMI® Maturity Level 5, as defined by the Persian Gulf. Software Engineering Institute of Carnegie Mellon University. Enterprise services integration. Large To achieve their success, our Orlando staff enterprises face increasingly tough combined high-quality CMMI® processes challenges to integrate and share massive with fast, flexible techniques derived from amounts of data from far flung and disparate extreme programming (XP), and spiral databases and legacy systems. development methods. They also facilitated One of the world’s largest enterprises collaboration across a government-industry and – the U.S. Department of Defense – has Integrated Product Team with a Web-based, enlisted SAIC’s help. collaborative, integrated development engineering A new SAIC laboratory evaluates existing environment. This winning combination is and emerging Web service technologies and now recommended by CrossTalk, the Journal service-oriented architectures to determine of Defense Software Engineering, in its tips for whether they have the “industrial strength” success. to become enterprisewide DoD solutions. All these elements were key to creating As impressive as this is, our new Enter- “a scalable, flexible, extensible, composable prise Services Integration & Interoperability architecture that is technically the best Laboratory is more than a technology proving simulation architecture I have seen in several ground. It also provides a wide range of tools years of working under the hood in military systems to help DoD application developers build simulations,” said Army Project Manager Lt. “new” capabilities from legacy systems and Col. John Surdu, who was quoted in CrossTalk. data. Tools ranging from Web-service adap- SAIC has organizations dedicated to tors and inference engines to ontological and this high level of software and systems semantic models help developers expose and engineering quality across the company. extract data and the business rules embed- Six SAIC organizations – encompassing ded within legacy systems. Other tools test 6,000 professionals – are rated at CMMI® for interoperability, deployability, scalability, Maturity Level 5. Ten SAIC organizations have and maintainability. achieved Level 3 maturity and eight have achieved Level 2 maturity. Our staff also help Software development. For customers, the government and commercial organizations benefits of higher software maturity ratings learn CMMI® methodology and they appraise are clear: greater assurance that complex other organizations for CMMI® compliance. (Above) SAIC’s Integrated Services Management Centers in North America, Europe and Asia help en- software programs will be on time, within Year after year, our staff have shown their terprises achieve both short- and long-term strategic goals regardless of their size. Operating under budget, and perform as expected. Add to that commitment to bring the benefits of high industry standard certifications for our signature IT services, we support global clients in such diverse greater assurance that project successes will software maturity ratings to our customers. industries as: healthcare, energy, utilities, academia, entertainment, and telecommunications.
  7. 7. 10 | | 11 SAIC 2005 ANNUAL REPORT RESEAR CH DE VELOPMENT AND (Below left) Understanding how cancer forms from normal cells requires knowledge about the molecular path- ways in individual cells while they are in their normal environment. At the National Cancer Institute’s Confocal Microscopy Facility, SAIC researchers use living 3D tissue culture models to understand the molecular mechanisms that govern cells’ organization, their movement, how they invade within the body and mutate into cancer cells. As one of the largest science and with the National Institute of Allergy and Infectious Diseases, NCI, and the U.S. Army to technology organizations in the produce and test a promising recombinant protective antigen vaccine. We also help de- United States, SAIC conducts velop vaccines to combat other devastating diseases such as malaria and HIV. leading-edge research and devel- To accelerate translational cancer re- search, the NCI’s new cancer Biomedical opment from outer space to the Informatics Grid (caBIG) is helping with cross- disciplinary sharing of research between ocean depths. Our scientists and more than 600 cancer researchers from over 50 different cancer centers. SAIC is develop- engineers move the state of the ing important grid-based middleware, appli- cations, and security for this groundbreaking art forward in cancer and AIDS initiative. research, advanced signal process- Space technology. For decades, SAIC has con- ducted and supported leading-edge research ing, and modeling and simulation. for space exploration and global climate change. For the U.S. Geological Survey, we operate the EROS Data Center – the world’s Biopharmaceutical and medical research. largest collection of remotely sensed data for For the National Cancer Institute (NCI), we customers studying a variety of environmen- operate NCI-Frederick, one of the world’s tal issues such as land use and global change. premier cancer and AIDS research facilities. We develop and manage multiple database There we support a wide range of research architectures that are critical to the center’s areas, including development of nanotech- mission to make dynamic data products nology applications for the diagnosis, preven- readily accessible to customers worldwide. tion, and treatment of cancer. We also play a leading role in NASA’s hu- We work with NCI researchers to develop man spaceflight program, providing safety, nanoscale devices (less than 100 nanometers reliability, and quality assurance for the In- in size) that can deliver cancer therapeutic ternational Space Station, and helping NASA agents and anticancer vaccines at the cellular return the Space Shuttle to flight status. level. Smaller than a living cell, these tiny When the Cassini mission’s Huygens drug delivery devices will likely be able to probe descended through the atmosphere target only malignant cells, sparing healthy of Titan, Saturn’s largest moon, and began cells and reducing the side effects of today’s transmitting data and striking images of its cancer treatments. frozen surface, SAIC engineers and scientists To help expedite development of a next- could take pride in the historic event. We generation anthrax vaccine, we are working
  8. 8. 12 | | 13 SAIC 2005 ANNUAL REPORT have supported this international research Modeling and simulation. SAIC pioneered mission since 1988. Among other things, we state-of-the-art technologies including dis- (Right) To better understand oceanic factors in global climate worked on the environmental and launch tributed simulation for training and distrib- change, we help NASA process, display, and analyze ocean-color safety analyses required because of the uted test and evaluation. Today, our expertise data gathered by satellites. Subtle changes in ocean color signify radioisotope-fueled devices that provide ranges from traditional areas, such as train- various types and quantities of marine phytoplankton (micro- electrical power and heat for Cassini. ing and analysis simulation, to emerging scopic marine plants), the knowledge of which has both scientific areas, such as simulation-based acquisition. and practical applications. Advanced signal processing. SAIC technolo- Currently, we lead the development of gists work on the frontiers of advanced signal DoD’s architecture and middleware for seam- and image processing. Over the years, we lessly integrating live-virtual-constructive pioneered breakthroughs in signal detection simulation for experimentation, training, and direction finding to protect submarines, test and evaluation, and acquisition. In addi- and automatically analyze synthetic aperture tion, we are the leaders in technology devel- radar images. Our engineers even devel- opment for entity-based simulation, simula- oped a new field of statistical detection and tion interconnection, and next-generation estimation theory, contributing to adaptive entity-based Computer Generated Forces. DEVELOPMENT Wiener filter theory and its application to radar and communications. Advanced robotics. With the military seeking We have been recognized for advancing to integrate unmanned systems into future the state of the art in adaptive processing forces, the DARPA Grand Challenge races pro- algorithms that use multiple degrees of vide a demanding environment to develop freedom to detect weak signals in complex and test new autonomous ground vehicles. environments. For example, we work on the During the 2004 race, the Sandstorm leading edge of space-time adaptive process- robotic vehicle, developed by Carnegie Mellon ing to detect weak radar echoes from ground University and SAIC, traveled much farther and targets in the presence of large radar noise than its competitors – successfully maneu- (motion-induced spread-Doppler clutter). vering across 12 kilometers of desert terrain RESEARCH Our work benefits the next generation of at an average speed of 36 kilometers per hour airborne surveillance radar systems. and a top speed of 56 km/hour. A leader in underwater signal processing The mapping and route planning soft- for three decades, SAIC provides critical ware we developed for Sandstorm has research and analysis to help the U.S. Navy provided valuable insights that could be used better detect hostile submarines and better for geospatial intelligence requirements for protect friendly submarines. With the rise in future military robotic systems. regional conflicts and asymmetrical threats, the emphasis has shifted from open-ocean Other innovative solutions. From advanced detection to shallow water near coastlines. radar systems to nonimaging optics, In these waters, acoustic interference our technology solutions are viewed as generated by surface ships and complex important tools for national security, bottom interacting acoustic propagation homeland defense, and the global war on pose new challenges. Our new algorithms terrorism. enable towed sonar arrays to better detect SAIC developed an advanced system that and track ships even as the sub towing the uses commercial HDTV broadcast signals sonar array maneuvers. We are also exploring to detect and track airborne and ground new acoustic signal processing algorithms moving vehicles. Currently deployed as a and advanced underwater acoustic pilot program, the system is being evaluated (Above) Micro satellites in low earth orbit over a combat zone could provide better reconnaissance for future tactical opera- communications using off-board sensors and as a potential “gap-filler” for airspace and tions. For the Air Force Research Laboratory’s experimental micro satellite program, we are developing a high-resolution unmanned vehicles. maritime surveillance. earth-observing system that includes a telescope and focal planes covering one panchromatic and three visible bands.
  9. 9. 14 | | 15 SAIC 2005 ANNUAL REPORT SAIC 2005 ANNUAL REPORT DEFENSE TR ANSFORM ATION Providing a full range of more realistic and effective training for Future Combat Systems, our OneSAF system is integrated with the Common Architecture Desktop/Embedded Trainer crew station (below) and a soldier wearing a virtual simulator called DAGGERS during a simulated tactical exercise (right). By putting new strategic thinking able success and has moved from concept and design phase to systems design, develop- into action, SAIC helps the U.S. mil- ment, and demonstration. Today, more than two years into execution, the program has itary and its allies transform the passed numerous reviews and is on cost and on schedule. way they will fight future wars. Capitalizing on these successes, the Army restructured the program to accelerate pro- To help ensure our soldiers are curement of FCS capabilities. This restructure includes a means for spiraling FCS capabili- better equipped, protected, and ties into the current force as early as 2008. Getting warfighters the right information trained, we assist our customers in at the right place and time requires a world- wide network with enormous bandwidth. developing new technologies for The new Global Information Grid envisioned by DoD benefits from important SAIC con- the future, and spiraling advanced tributions throughout its architecture. For example, SAIC helps lead integration of the technologies into the current force. network’s cornerstone – the Global Informa- tion Grid-Bandwidth Expansion (GIG-BE) program. GIG-BE is bringing an optical mesh Network-centric operations. As a leader network with 10-gigabyte-per-second con- in the emerging area of network-centric nectivity to about 100 DoD bases, posts and operations, we are helping the military stations. Moreover, GIG-BE achieved initial achieve a powerful competitive edge through operating capability in only 20 months. advanced networked capabilities, shared situ- To exploit the bandwidth capabilities pro- ational awareness, improved collaborative vided by GIG-BE, SAIC is supporting the DoD planning, and enhanced speed and agility. Net-Centric Enterprise Service (NCES) initia- Our work benefits transformational deci- tive. NCES will provide the software services sions at the highest levels of the Defense framework to enable information sharing Department and what may be the most and collaboration by future command and ambitious and far-reaching program for net- control, business, and intelligence systems. work-centric operations in the U.S. military SAIC’s team is providing systems architecture, services – the Army Future Combat Systems technical integration, and technology deploy- (FCS) program. As the Lead Systems Integra- ment support to DISA as the agency pilots tor for FCS, the Boeing-SAIC team is working capabilities to Defense Computer Centers. to speed delivery of crucial network-centric And the lead joint military command and capabilities to the current force. control system that will operate over the GIG The FCS program has met with remark-
  10. 10. 16 | | 17 SAIC 2005 ANNUAL REPORT “SAIC’s competitive strategy of knowing their customers, anticipating their needs, and (the Global Command and Control System- Simulation software developed by SAIC prom- Joint) was also previously integrated by SAIC. ises to be the new “gold standard” in both suggesting innovative solutions has made them one of the most trusted and influential All of this gives SAIC absolutely unmatched areas: training and software design. Designed high-level systems integrator’s in the C4ISR community.” expertise in command and control and net- for the U.S. Army, this OneSAF simulation work-centric technologies. software has been chosen as the simulation 2004 Frost & Sullivan Competitive Strategy Leadership Award presented to SAIC engine for the Army Future Combat Systems, New operational concepts for new threats. named one of the Top U.S. Government Transformation requires continuous in- Software Projects, and adapted by the Marine novation. As a pioneer in the Revolution in Corps for use in their Combined Arms Staff Military Affairs, SAIC has been instrumental in Trainer. developing much of the conceptual founda- OneSAF’s flexible architecture can meet tion for DoD’s approach to transformation. For the full spectrum of simulation needs, from example, we helped develop, test, and refine developing new operational concepts and such capstone concepts as dominant maneu- engineering research to mission planning and ver and long-range precision strike. after-action training reviews. SAIC is at the heart of defense transforma- TRANSFORMATION tion at U.S. Joint Forces Command, the “trans- Technology transformation. We develop formation laboratory” for the U.S. military, and leading-edge technologies to solve complex at NATO’s Allied Command Transformation. problems facing our forces. For example, Our analysts develop future warfighting con- we are exploring solutions to better pro- cepts, such as Effects Based Operations and tect combat vehicles from rocket-propelled Operational Net Assessments, which require grenades and other threats. Working with the a rich systemic understanding of opponents Army Research Laboratory, we successfully and operational environments. Many of these demonstrated an electromagnetic (EM) armor concepts are being implemented today. For system to protect a combat vehicle’s flank. example, our support to joint urban opera- EM armor and electric weapons require tions includes concept modeling and analysis large amounts of pulsed electric power. At with the Joint Semi-Automated Forces simula- the same time, future combat vehicles must DEFENSE tion system, resulting in better understanding be lighter weight, more mobile, and more of urban operations in Iraq and Afghanistan. fuel-efficient. Hybrid electric power systems For the Joint National Training Capability, promise to meet all these requirements once SAIC is helping develop a persistent, global major technical challenges are overcome. We network of live, virtual, and constructive are working to overcome these technical chal- simulation components that serves as a lenges at a systems integration laboratory we seamless training environment to joint and helped build and operate for the Army. service forces. This key transformation initia- Lighter, more efficient power is also the tive and others are supported from SAIC’s new goal for radios, computers, and hand-held GPS facility in Suffolk, Virginia, where the Joint units, and for our DARPA-funded research in System of Systems Collaborative Environment nanocomposite photovoltaic technology. Laboratory serves as a portal to the network. Our analysts also identify and develop new Base realignment. Our wide-ranging environ- intelligence and C4ISR technologies for joint mental services support the transformation forces. and realignment of DoD missions, facilities, and systems. We support property remedia- Training for the future. Transformational tion through full-service environmental reme- (Above) Soldiers in combat could soon have important new advantages thanks to two unique SAIC concepts. By riding this systems of systems rely on well-trained forces diation contracts with the Army. And we pro- all-terrain vehicle to a combat zone, a soldier would be able to flip a switch, convert the vehicle to robot mode, and tele- and well-designed software, both of which vide environmental assessment, analysis, and operate the vehicle as it conducts unmanned missions in dangerous areas. In order to engage quickly and accurately during need to perform successfully when called up. compliance support to the Air Force and Navy. close combat at night, the night vision goggles import an aligned view from a separate infrared sight on the weapon.
  11. 11. 18 | | 19 SAIC 2005 ANNUAL REPORT SAIC 2005 ANNUAL REPORT LOGISTICS PRODUCT SUPPORT AND (Below) Our Radio Frequency Identification (RFID) solutions help streamline the movement of materials by improving asset visibility, tracking, and accuracy. At the Fleet and Industrial Supply Center Norfolk, SAIC implemented one of DoD’s first fully integrated passive RFID in- stallations. The system provides real-time visibility for more than 150,000 tagged pieces of material flowing through the terminal annually. During Operation Iraqi Freedom, New ways to “sense and respond” to troop needs. As light-armored vehicles, troop car- U.S. warfighters had the technol- riers, and combat-equipped Humvees raced toward Baghdad, they sometimes outran ogy edge but their rapid advances fuel supplies. We are working to make fuel shortages a thing of the past by developing occasionally outran logistics new concepts and solutions in “sense and respond” logistics. support. To keep up with “light- For the U.S. Army Logistics Transformation Agency, we are implementing sensors on ning-fast” military operations, 5,000-gallon fuel tankers and the 10,000-gal- lon fuel storage “bladders” and integrating logisticians need some of the same those sensors into a prototype “sense and respond” system. A key feature of the system technology advances that SAIC has is our adaptive agents (actually sophisti- cated software codes) that review sensor delivered to the warfighters: data, compare it with data from command and control systems and other sources, and better intelligence sensors, com- decide what supplies should be ordered and when. In other words, we’re designing the munications networks, and ana- system to receive near real-time information on where the battle is going (from command lytics. At the same time, military and control system data), and respond to supply needs “on the fly” as battlefield condi- logisticians need the best supply tions change. Today’s system responds to fuel needs, but tomorrow’s system potentially chain solutions from the commer- could better meet the ammunition needs of troops in the heat of battle. cial sector: demand forecasting, In the field, not the depot. While our “sense total asset visibility, and just-in- and respond” system is still experimental, our intelligent agent technology has proven time inventory. At SAIC, we are de- its success on major Integrated Prime Vendor programs for the Defense Logistics Agency livering on all of these and more, (DLA). We use this technology to supply more than 127,000 items – ranging from bench as part of our commitment to give stock to aircraft subassemblies and engine and landing gear components – to the Air logisticians the technical edge. Force depots and mechanics that maintain