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Restructure gains SAIC additional assets for DOD
By Shelia Watson
Staff Writer
In July, when Science Applications International Corp. completed the restructure of AMSEC LLC, it walked away from the restructuring deal with the aviation, combat systems and strike-force integration services that had been under AMSEC, which included former subsidiary Eagan, McAllister Associates Inc.
SAIC provides engineering, systems integration, technical and scientific services and solutions to all branches of the military, the U.S. Department of Defense, the U.S. Department of Homeland Security and other federal government agencies as well as to select commercial markets.
EMA has performed command, control, communications, computers, intelligence, surveillance and reconnaissance, information technology and naval aviation support services.
Both SAIC and EMA maintain offices in Charleston.
Ron Zollars, a spokesman for SAIC, said the acquisition of EMA will have no effect on the work force based in Charleston.
As a wholly owned subsidiary of SAIC, EMA will retain its name and offices in the area and will be a part of SAIC’s Defense Solutions Group.
The restructuring also gave SAIC control of AMSEC’s former Strike Force System and Integration/Planning Consultants Inc. organization, which provides support to several Navy customers in the areas of combat systems, integration, training and engineering.
“We now move to the future focusing on our expertise in systems engineering and integration, command, control and communications and enterprise solutions,” Deborah Alderson, president of SAIC’s Defense Solutions Group, said in a statement.
During fiscal year 2007, the company received recognition for its work by the U.S. Department of Justice and won several large federal government contracts, including awards from the National Aeronautics and Space Administration, the North Atlantic Treaty Organization’s Active Layered Theater Ballistic Missile Defense and the U.S. Joint Forces Command’s Joint Fires Integration and Interoperability Team.
The Charleston offices of both SAIC and EMA have been successful in gaining awards and contracts for DOD-based work.
Just as the restructuring was taking place in July, EMA won an indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, performance-based contract from the Space and Naval Warfare Systems Center in Charleston.
The lucrative contract has a one-year term base, with four one-year options and a total value of more than $91 million if all options are exercised. Through the contract, EMA will provide SPAWAR with advanced technology services, with the work performed in Charleston and Norfolk.
A few months earlier, SAIC had won a task order from SPAWAR, which had SAIC providing support to the Navy Enterprise Resource Planning Program Office. The order has a one-year base term with two one-year option periods and a total value of about $22 million if all options are exercised.
In that same month, SAIC was awarded a contract from the South Carolina Research Authority to provide a full range of IT engineering, technical and program support services to streamline the contracting relationship between SCRA and SAIC.
The multiple-award, indefinite-delivery/ indefinite-quantity contract has a one-year base term with two one-year options for an estimated value of $21 million if all options are exercised.
Last October, SAIC announced the closing of its initial public offering of 86.25 million shares of common stock. With more than 44,000 employees in more than 150 cities worldwide, SAIC had annual revenues of $8.3 billion for its last fiscal year, which ended Jan. 31, 2007, representing an annual growth rate of 7%.
Operating income for the year was $585 million, 7.1% of revenue, up 19% from $490 million in FY06.
“The growth initiatives and margin expansion plans we described during our recent initial public offering are beginning to show results,” said Ken Dahlberg, SAIC chairman and CEO.
SAIC’s acquisitions during the year included another company with a Charleston office, Applied Marine Technology Inc., which provides expertise to the warfare and intelligence communities, including the Department of Homeland Security. AMTI joined SAIC’s
Operational Intelligence Solutions Business Unit.
Besides the awards earned by the Charleston locations, SAIC’s new bookings include several NATO, DHS and DOD contracts, all of which totaled $9.2 billion for FY07.
“In fiscal year 2007, our core business showed improved profitability and excellent cash flow,” said Mark Sopp, SAIC’s CFO.
“Looking forward, we are focused on internal growth initiatives, continued operating margin expansion and deploying cash flow and other capital wisely to strengthen our company and increase its value.”
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