Growth of the Company: FY 2010

Fiscal Year 2010

Walter P. Havenstein became SAIC chief executive officer on September 21, 2009, when Ken Dahlberg, following the company's mandatory retirement policy for executive officers, stepped down as SAIC CEO. Havenstein had been president and CEO of BAE Systems, Inc. On September 24, 2009, SAIC designated McLean, Va., its headquarters, replacing San Diego, and relocating the corporate executive leadership team closer to SAIC's federal government customers.

During its 40th year in business, SAIC continued strong, balanced growth. Highlights of SAIC's fiscal year (FY) 2010 contract wins include contracts to:

• Provide logistics planning, management, and analytical support and operational readiness services for mine-resistant ambush-protected (MRAP) vehicles for the U.S. U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command to support the Joint Program Office, Mine Resistant Ambush Protected Vehicle.
• Provide modeling, simulation, and analytically based warfare analysis support to the Office of the Chief of Naval Operations' (OPNAV) Assessment Division (N81) of the Space and Naval Warfare Systems Command.
• Continue providing information technology (IT) services to the National Aeronautics and Space Administration (NASA) and services supporting NASA's wide area network, IT security, digital television, and Integrated Enterprise Management Program.
• Support immigration and customs enforcement and help maintain applications in areas such as intelligence, international affairs, and investigations for the U.S. Department of Homeland Security.
• Provide engineering support services to the Naval Sea Systems Command program Executive Office for Integrated Warfare Systems.
• Help ensure quality of care by providing engineering, logistics, and sustainment support to the Armed Forces Health Longitudinal Technology Application/Composite Health Care System.
• Support operations and user maintenance for tactical biometrics systems for the U.S. Army Communications and Electronics Command, under a subcontract to Sensor Technologies Incorporated.
• Provide training support to the Center for Domestic Preparedness under a contract from the Department of Homeland Security.
• Help Hawaii residents and businesses become more energy efficient as Program Administrator for the Hawaii Energy Efficiency Program, contracted by the Hawaii Public Utilities Commission.
• Provide SAIC Tsunami Buoy systems to act as the basis of the tsunami warning system network in the South China Sea for the People's Republic of China State Oceanographic Agency and replacing the current NOAA Deep-ocean Assessment and Reporting Tsunamis buoy system in the Bay of Bengal for the Office of the Permanent Secretary, Ministry of Information and Communication Technology, Government of the Kingdom of Thailand, with STB systems.
• Continue providing comprehensive IT support services to Entergy Corporation, an integrated energy company engaged primarily in electric power production and retail distribution operations.

In FY 2010, SAIC acquired R.W. Beck Group, Inc., a leading provider of business and technical consulting services in engineering, energy and infrastructure. The acquisition included Beck Disaster Recovery (BDR), Inc., one of the nation's premier emergency management consultancies.

SAIC also acquired Atlan, Inc., and Spectrum San Diego. Atlan, Inc., a cybersecurity product testing firm, is a leading provider of Federal Information Processing Standard (FIPS) 140-2 and 201 validations. Spectrum San Diego is a high-technology security firm specializing in ultra-low-dose X-ray scanning systems such as CarScan, which scans cars and vans in the normal flow of traffic at vehicle checkpoints.

SAIC's small business strategy yielded a record level of small business utilization for Government Fiscal Year 2009 (GFY 09), which ended in September 2009. During GFY 09, SAIC awarded approximately $2 billion in subcontracts to small businesses, reflecting a 21 percent increase from the previous year. This included approximately $727 million awarded to women- and minority-owned firms, and more than $335 million awarded to veteran-owned businesses, significantly exceeding the government's statutory goals for these businesses and for service disabled veteran-owned businesses. SAIC also received the Defense Contract Management Agency's top rating for its commitment to using small businesses as subcontractors and suppliers.

SAIC initiatives supported future scientists and engineers. SAIC launched an enterprise-wide, long-term program to help inspire, engage and educate students in K-12 science, technology, engineering, and mathematics (STEM) education. To help kick off this nationwide effort, the company formed strategic relationships with two leading non-profit organizations with demonstrated results in the STEM arena. FIRST® (For Inspiration and Recognition of Science and Technology) received a $600,000 sponsorship, and Project Lead The Way, Inc., received a $400,000 sponsorship from the company.

Related Information: SAIC Announces Financial Results for Fourth Quarter and Fiscal Year 2010.