Science Applications International Corporation (SAIC) is an American company operating in the defense and government sectors, whose exact mission remains shrouded in secrecy. Founded in 1969 by J. Robert Beyster, SAIC has become a sprawling entity in the United States national security landscape.
The Split: In September 2013, SAIC made a major split, creating a unit worth $4 billion while changing the name of the parent company to Leidos. This decision was largely driven by conflict of interest provisions in the Federal Acquisition Regulation, which limited SAIC's ability to bid on certain contracts due to existing contracts.
Strategic Acquisitions: SAIC has pursued a strategy of strategic acquisitions to expand its footprint in intelligence and government services. In May 2015, the company acquired Scitor Holdings, Inc. for $790 million, strengthening its presence in classified contracting and security capabilities. Scitor was previously owned by Leonard Green & Partners, LP, a private equity firm.
In September 2018, SAIC announced the acquisition of Engility, a major competitor in the government services contracting sector in the United States, for a combined $2.5 billion. This merger took place in January 2019. Additionally, in February 2020, SAIC announced the acquisition of UNISYS US Federal, a government services contracting company, for a combined $1.2 billion US.
Operational Structure: SAIC has adopted a matrix operating model, where different service lines collaborate to serve a given contract. This structure allows it to provide a complete range of solutions to its government clients.
Key People: Deborah Lee James, who chaired SAIC's Technology and Engineering Sector, was appointed Secretary of the United States Air Force in December 2013 by President Barack Obama, bringing highlights the links between the SAIC and the American government.
Location: The company has moved many of its operations to Virginia since 2006, shortly after going public. About 16,000 of its 45,000 employees worldwide are currently in the Washington area.
Revenue: In 2018, SAIC recorded an impressive revenue of US$2.8 billion.
Conclusion: SAIC remains an enigmatic company with a significant presence in the national security and government sector in the United States. Its activities, exact mission, and ties to the U.S. government raise interesting questions about the nature of its operations and influence. OMSAC will continue to monitor this company and other key security and defense players to ensure transparency and integrity of government operations.
President Dwight D. Eisenhower's speech on January 17, 1961, where he warned American citizens of the dangers of the "military-industrial complex," remains a historic moment that marked the collective conscience of the United States. In this speech, Eisenhower, who himself had a long military career as an Army general and had served as president for two terms, highlighted concerns about the rise of what he described as the "complex military-industrial."
He warned of the implications of the growth of this alliance between the military sector and the defense industry. Eisenhower expressed concerns that the military-industrial complex could exert undue influence over foreign and military policy, potentially leading to excessive spending on arms and an escalation of conflict.
President Eisenhower emphasized that although military research and development is essential to national security, it is crucial to maintain a balance between defense capabilities and economic interests. He encouraged citizens to remain vigilant and closely monitor the activities of the military-industrial complex to preserve the democratic values and principles on which the United States was founded.
This speech sparked significant debates about the role of the defense industry in American politics and has continued to influence discussions of foreign policy and national security in the United States.
OMSAC Integrity & Investigation Department