1. 2OO5
Fiscal Year
Annual Report
saic.com
™
FROM SCIENCE TO SOLUTIONS
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. 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| |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. 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. 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. 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. 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. 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. 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. 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