Growth of the Company: FY 2012

Fiscal Year 2012

During a year of challenging market conditions, SAIC remained financially strong, well positioned for future growth, and committed to the ethics and integrity that have been at the forefront of the company's culture since its founding in 1969.

Highlights of SAIC's fiscal year (FY) 2012 contract wins include contracts to:

• Provide the Defense Logistics Agency Tire Successor Initiative with supply chain management, including forecasting, procurement, inventory management, and worldwide distribution of military aircraft and ground tires directly to U.S. Armed Services and Foreign Military Sales customers.
• Provide preclinical services to the National Institute of Allergy and Infectious Diseases, part of the National Institutes of Health, for the development of biopharmaceutical products for infectious diseases.
• Provide a broad range of IT services to the U.S. Department of Veterans Affairs under the Transformation Twenty-One Total Technology program.
• Deliver science, system architecture, and engineering services in support of cyberspace operations to the U.S. Space and Naval Warfare Systems Center Pacific.
• Provide managerial and technical expertise, including local area network management at all National Aeronautics and Space Administration (NASA) centers.
• Provide mission support IT services, including program management, critical infrastructure, enterprise architecture, and information assurance services, to the U.S. Department of Agriculture Risk Management Agency.
• Provide a full range of IT support services, including large-scale systems integration and the modification and maintenance of current systems, to the U.S. Department of Justice.
• Deliver an integrated enterprise remote identity proofing and multi-factor authentication cloud services solution, designed to securely enable more than 35 million U.S. citizens access to the State and Federal Health Insurance Exchange, to the Centers for Medicare & Medicaid Services.
• Provide engineering, procurement and construction services for the Plainfield Renewable Energy biomass project in Connecticut, designed to generate clean energy to power the equivalent of 37,000 homes.
• Provide analysis, combat planning and training, information technology sustainment and operations support for the Joint Improvised Explosive Device Defeat Organization Counter-IED Operations/Intelligence Integration Center.

During FY2012, SAIC acquired Vitalize Consulting Solutions, Inc., a leading provider of clinical, business, and IT services for healthcare enterprises. The acquisition expands SAIC's health solutions portfolio—in both federal and commercial markets—to help customers better address electronic health record implementation.

The company also acquired the transmission and distribution engineering capabilities of Patrick Energy Services, a provider of performance-based transmission and distribution power system solutions, enhancing SAIC's energy and smart grid services portfolio.

On the divestiture side, SAIC sold to Wipro Limited operations that primarily focused on providing specialized IT services to international oil and gas companies, as well as a few related international subsidiaries. The sale of these operations enables SAIC to better focus on strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where the company has successfully built business through organic growth and acquisitions.

During government fiscal year 2010, SAIC subcontracted more than $2.2 billon in work to small businesses. The company received the 2011 Dwight D. Eisenhower Award for Excellence from the Small Business Administration, given in recognition of exemplary commitment to using small businesses as subcontractors and suppliers. SAIC received the award in the research and development category. This was the third time SAIC has won this award. Honoring SAIC's fostering of small businesses, the company also received the U.S. Department of Defense Nunn-Perry Award for mentor-protégé excellence. It was the thirteenth time SAIC has received a Nunn-Perry Award.

During FY12, SAIC awarded over $460 million in subcontracts to veteran-owned businesses, with over half that amount going to service-disabled veteran-owned businesses. For SAIC's outstanding dedication to working with veteran-owned small businesses, it was awarded the Champions of Veterans Enterprise Award by the National Veteran Small Business Coalition. SAIC's long history of hiring well-qualified military veterans and its policies regarding Reserve/Guard members called to active duty were also acknowledged when the company was ranked No. 24 among the Top 100 Military Friendly Employers™ by G.I. Jobs magazine.

This year the company reinforced its commitment to sustainable business practices by announcing a goal to reduce operational greenhouse gas emissions 25 percent (from 2010 levels) by 2020. SAIC will utilize in-house engineers who specialize in tackling energy challenges to help meet the new goal, and to identify and implement additional cost-effective energy efficiency projects across the enterprise. SAIC's dedication to environmental responsibility was recognized in Newsweek's annual Green Rankings of the top 500 greenest U.S. companies. SAIC ranked No. 44, rising from No. 192 in 2010.

SAIC also entered into an agreement with McAfee, the world's largest dedicated security technology company. Together, SAIC and McAfee agreed to provide a new combination of cybersecurity solutions to meet the sophisticated threats faced by large, complex enterprises around the world. Part of the agreement was to couple McAfee industry-leading security products with SAIC's CloudShield® security products, such as CS-4000. Introduced in FY12, CS-4000 is a next-generation, trusted network security platform that is used to better protect critical infrastructure and subscriber data privacy.

To further promote cybersecurity, SAIC and the University of Maryland, Baltimore County (UMBC) held the inaugural Maryland Cyber Challenge and Conference, a statewide cyber competition and conference designed to attract more students and young professionals to pursue careers in cybersecurity. Founders of the event include SAIC, UMBC, the National Cyber Security Alliance, the Maryland Department of Business and Economic Development, and the Tech Council of Maryland.

SAIC continued to support a number of exciting initiatives that inspire students to get involved in science, technology, engineering and mathematics (STEM) careers. In FY12 the company provided financial support to leading STEM organizations and more SAIC volunteers than ever before worked with student teams in robotics competitions and other events around the country.