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Leidos, formerly known as Science Applications International Corporation (SAIC), is an American defense,
aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot a ...
,
information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of Data (computing), data . and information. IT forms part of information and communications technology (ICT). An information te ...
(Lockheed Martin IS&GS), and biomedical research company headquartered in Reston, Virginia, that provides scientific, engineering,
systems integration System integration is defined in engineering as the process of bringing together the component sub-systems into one system (an aggregation of subsystems cooperating so that the system is able to deliver the overarching functionality) and ensuring ...
, and technical services. Leidos merged with Lockheed Martin's IT sector, Information Systems & Global Solutions, in August 2016 to create the defense industry’s largest IT services provider. The Leidos-Lockheed Martin merger is one of the biggest transactions thus far in the consolidation of a defense sector. Leidos works extensively with the
United States Department of Defense The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government directly related to national sec ...
, the
United States Department of Homeland Security The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-terr ...
, and the
United States Intelligence Community United may refer to: Places * United, Pennsylvania, an unincorporated community * United, West Virginia, an unincorporated community Arts and entertainment Films * ''United'' (2003 film), a Norwegian film * ''United'' (2011 film), a BBC Two f ...
, including the NSA, as well as other U.S. government civil agencies and selected commercial markets.


History


As SAIC

The company was founded by J. Robert "Bob" Beyster in 1969 in the
La Jolla La Jolla ( , ) is a hilly, seaside neighborhood within the city of San Diego, California, United States, occupying of curving coastline along the Pacific Ocean. The population reported in the 2010 census was 46,781. La Jolla is surrounded on ...
neighborhood of
San Diego San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the eighth most populous city in the United State ...
,
California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
, as Science Applications Incorporated (SAI).Dr. J. Robert Beyster with
Peter Economy Peter Economy is an American author, editor, and ghostwriter. Early life Economy, the son of a U.S. Air Force officer, was born at Hamilton Air Force Base, California. Writing Economy is the author of over 75 books. He writes about leadershi ...
, ''The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company'', John Wiley & Sons (2007) p.xiii
Beyster, a former scientist for the Westinghouse Atomic Power Division and
Los Alamos National Laboratory Los Alamos National Laboratory (often shortened as Los Alamos and LANL) is one of the sixteen research and development laboratories of the United States Department of Energy (DOE), located a short distance northwest of Santa Fe, New Mexico, ...
, who became the chairman of the Accelerator Physics Department of
General Atomics General Atomics is an American energy and defense corporation headquartered in San Diego, California, specializing in research and technology development. This includes physics research in support of nuclear fission and nuclear fusion energy. Th ...
in 1957, raised the money to start SAI by selling stock he had received from General Atomics, combined with funds raised from the early employees who bought stock in the young enterprise. Initially the company's focus was on projects for the U.S. government related to nuclear power and weapons effects study programs. The company was renamed
Science Applications International Corporation Science Applications International Corporation (SAIC), Inc. is an American technology company headquartered in Reston, Virginia that provides government services and information technology support. History The original SAIC was created in 19 ...
(SAIC) as it expanded its operations. Major projects during Beyster's tenure included work on
radiation therapy Radiation therapy or radiotherapy, often abbreviated RT, RTx, or XRT, is a therapy using ionizing radiation, generally provided as part of cancer treatment to control or kill malignant cells and normally delivered by a linear accelerator. Radi ...
for the Los Alamos National Laboratory; technical support and management assistance to the development of the cruise missile in the 1970s; the cleanups of the Three Mile Island Nuclear Generating Station after its major
accident An accident is an unintended, normally unwanted event that was not directly caused by humans. The term ''accident'' implies that nobody should be blamed, but the event may have been caused by unrecognized or unaddressed risks. Most researche ...
, and of the contaminated community of
Love Canal Love Canal is a neighborhood in Niagara Falls, New York, United States, infamous as the location of a landfill that became the site of an enormous environmental disaster in the 1970s. Decades of dumping toxic chemicals harmed the health of hun ...
; design and performance evaluation of the Stars & Stripes 87, the winning ship for the
1987 America's Cup The 1987 America's Cup was the twenty-sixth challenge for the America's Cup. The American challenger ''Stars & Stripes 87'', sailed by Dennis Conner, beat the Australian defender ''Kookaburra III'', sailed by Iain Murray, in a four-race sweep ...
; and the design of the first luggage inspection machine to pass new
Federal Aviation Administration The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic ...
tests following the terrorist bombing of Pan American flight 103 over Lockerbie, Scotland. Contrary to traditional business models, Beyster originally designed SAIC as an employee-owned company. This shared ownership was accompanied by shared responsibility and freedom in business development, and allowed SAIC to attract and retain highly educated and motivated employees that helped the company to grow and diversify. After Beyster's retirement in 2003, SAIC conducted an
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
of
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Comm ...
on October 17, 2006.SAIC - News & Media - "SAIC, Inc. Announces Closing of Initial Public Offering"
. Investors.saic.com. Retrieved on August 17, 2013.
The offering of 86,250,000 shares of common stock was priced at $15.00 per share. The underwriters,
Bear Stearns The Bear Stearns Companies, Inc. was a New York-based global investment bank, securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession, and was subsequently sold to JPMorgan Chase. The comp ...
and
Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
, exercised overallotment options, resulting in 11.25 million shares. The IPO raised US$1.245B. Even then, employee shares retained a privileged status, having ten times the voting power per share over common stock. In September 2009 SAIC relocated its corporate headquarters to their existing facilities in
Tysons Corner Tysons, also known as Tysons Corner, is a census-designated place (CDP) in Fairfax County, Virginia, United States, developed from the corner of Chain Bridge Road ( SR 123) and the Leesburg Pike ( SR 7). Located in Northern Virginia between the c ...
in
unincorporated Unincorporated may refer to: * Unincorporated area, land not governed by a local municipality * Unincorporated entity, a type of organization * Unincorporated territories of the United States, territories under U.S. jurisdiction, to which Congress ...
Fairfax County Fairfax County, officially the County of Fairfax, is a County (United States), county in the Commonwealth (U.S. state), Commonwealth of Virginia. It is part of Northern Virginia and borders both the city of Alexandria, Virginia, Alexandria and ...
,
Virginia Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
, near McLean. In 2012 SAIC was ordered to pay $550 million to the
City of New York New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
for
overbilling Overbilling (sometimes spelled as over-billing) is the practice of charging more than is legally or ethically acceptable on an invoice or bill. Overview Contractors and professionals Overbilling in the medical industry can occur when doctors seek ...
the city over a period of seven years on the CityTime contract. In 2014 Gerard Denault, SAIC's CityTime program manager, and his government contact were sentenced to 20 years in prison for fraud and bribery related to that contract.


As Leidos

In August 2012, SAIC announced its plans to split into two publicly traded companies. The company spun off about a third of its business, forming an approximately $4 billion-per-year service company focused on government services, including systems engineering, technical assistance, financial analysis, and program office support. The remaining part became a $7 billion-per-year IT company specializing in technology for the national security, health, and engineering sectors. The smaller company was led by Tony Moraco, who beforehand was leading SAIC's ''Intelligence, Surveillance and Reconnaissance'' group, and the bigger one was led by John P. Jumper. The split has allowed both companies to pursue more business, which it could not pursue as a single company which would have resulted in
conflicts of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple wikt:interest#Noun, interests, finance, financial or otherwise, and serving one interest could involve working against another. Typically, t ...
. In February 2013, it was announced that the smaller spin-off company would get the name "Science Applications International Corporation" and stay in the current headquarters, while the larger company would change its name to ''Leidos'', (created by clipping the word ''kaleidoscope'') and would move its headquarters to Reston, Virginia. The split was structured in a way that SAIC changed its name to Leidos, then spun off the new SAIC as a separate publicly traded company. However, Leidos is the legal successor of the original SAIC and retains SAIC's pre-2013 stock price and corporate filing history. On September 27, 2013, SAIC changed its name to ''Leidos'' and spun off a new and independent $4 billion government services and
information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of Data (computing), data . and information. IT forms part of information and communications technology (ICT). An information te ...
company which retained the
Science Applications International Corporation Science Applications International Corporation (SAIC), Inc. is an American technology company headquartered in Reston, Virginia that provides government services and information technology support. History The original SAIC was created in 19 ...
name; Leidos is the direct successor to the original SAIC. Before the split, Leidos employed 39,600 employees and reported $11.17 billion in revenue and $525 million net income for its fiscal year ended January 31, 2013, making it number 240 on the Fortune 500 list. In 2014, Leidos reported US$5.06 billion in revenue. In August 2016, the deal to merge with the entirety of Lockheed Martin's Information Systems & Global Solutions (IS&GS) business came to a close, more than doubling the size of Leidos and its portfolio, and positioning the company as the global defense industry's largest enterprise in the federal technology sector. As of February 2019, the company has 32,000 employees. In 2018, Leidos reported US$10.19 billion in revenue. It ranked 311 on the 2019 Fortune 500 list. In January 2020, Leidos purchased defense contractor
Dynetics Dynetics is an American applied science and information technology company headquartered in Huntsville, Alabama. Its primary customers are the United States Department of Defense (DoD), the United States Intelligence Community, and National Ae ...
for approximately $1.65 billion. In May 2020 it purchased the Security Detection and Automation Systems division of
L3Harris L3Harris Technologies (L3Harris) is an American technology company, defense contractor, and information technology services provider that produces C6ISR systems and products, wireless equipment, tactical radios, avionics and electronic systems, ...
(notable for providing the detection screeners that all airport travelers pass through when flying).


Structure

Leidos has four central divisions: Civil, Health, Advanced Solutions, and Defense & Intelligence. The Civil Division focuses on integrating aviation systems, securing transportation measures, modernizing IT infrastructure, and engineering energy efficiently. The Health Division focuses on optimizing medical enterprises, securing private medical data, and improving collection and data entry methods. The Advanced Solutions Division is centered around data analysis, integrating advanced defense and intelligence systems, and increasing surveillance and reconnaissance efficiency. The Defense & Intelligence Division focuses on providing air service systems, geospatial analysis, cybersecurity, intelligence analysis, and supporting operations efforts.


Management

*CEO: Roger Krone After more than 30 years of Beyster's leadership, Kenneth C. Dahlberg was named the CEO of SAIC in November 2003. In May 2005, the company changed its external tagline from ''An Employee-Owned Company'' to ''From Science to Solutions''. The third CEO was Walt Havenstein, who pushed for tighter integration of the company's historically autonomous divisions, which led to lower profit and revenue. The strategy was reversed by the fourth CEO, retired Air Force general John P. Jumper, appointed in 2012. On July 1, 2014, Leidos announced that Roger Krone would become its CEO on July 14, 2014. As of 2019, Krone is the Chairman and CEO of Leidos.


Headquarters

In January 2018, Leidos announced it would move within Reston, VA, a quarter mile from 11951 Freedom Drive to 1750 Presidents Street. The new building was completed in early 2020.


Operations

The
Defense Intelligence Agency The Defense Intelligence Agency (DIA) is an intelligence agency and combat support agency of the United States Department of Defense, specializing in defense and military intelligence. A component of the Department of Defense (DoD) and the ...
(DIA) transitioned a Remote Viewing Program to SAIC in 1991 which was renamed
Stargate Project Stargate Project was a secret U.S. Army unit established in 1978 at Fort Meade, Maryland, by the Defense Intelligence Agency (DIA) and SRI International (a California contractor) to investigate the potential for psychic phenomena in military and ...
. In March 2001, SAIC defined the concept for the NSA Trailblazer Project. In 2002, NSA contracted SAIC for $280 million to produce a "technology demonstration platform" for the agency's project, a " Digital Network Intelligence" system to analyze data carried on computer networks. Other project participants included
Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and p ...
, Computer Sciences Corporation, and
Booz Allen Hamilton Booz Allen Hamilton Holding Corporation (informally Booz Allen) is the parent of Booz Allen Hamilton Inc., an American management and information technology consulting firm, headquartered in McLean, Virginia, in Greater Washington, D.C., with 8 ...
. According to science news site
PhysOrg.com Phys.org is an online science, research and technology news aggregator offering briefs from press releases and reports from news agencies (a form of journalism sometimes pejoratively called churnalism). The website also produces its own science ...
, Trailblazer was a continuation of the earlier ThinThread program. In 2005, NSA director Michael Hayden told a Senate hearing that the Trailblazer program was several hundred million dollars over budget and years behind schedule. In fiscal year 2003, SAIC did more than $2.6 billion in business with the
United States Department of Defense The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government directly related to national sec ...
, making it the ninth-largest defense contractor in the United States. Other large contracts included a bid for
information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of Data (computing), data . and information. IT forms part of information and communications technology (ICT). An information te ...
for the 2004 Olympics in Greece. From 2001 to 2005, SAIC was the primary contractor for the
FBI The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, t ...
's unsuccessful
Virtual Case File Virtual Case File (or VCF) was a software application developed by the United States Federal Bureau of Investigation (FBI) between 2000 and 2005. The project was officially abandoned in April 2005, while still in development stage and cost the fe ...
project. During fiscal year 2012 (latest figure available), SAIC had more than doubled its business with the DoD to $5,988,489,000, and was the 4th-largest defense contractor on the annual list of the top 100. Leidos ranked 292 on the 2017 Fortune 500 list.


Subsidiaries

*'' Dynetics, Inc.'', a wholly owned subsidiary of Leidos since Jan 2020. *''Leidos Biomedical Research, Inc.'', formerly ''SAIC - Frederick'', a wholly owned subsidiary of Leidos manages
Frederick National Laboratory The Frederick National Laboratory for Cancer Research (FNLCR) is a United States federally funded research and development center (FFRDC) supported by the National Cancer Institute and managed by the private contractor Leidos Biomedical Research. ...
for
Cancer Research Cancer research is research into cancer to identify causes and develop strategies for prevention, diagnosis, treatment, and cure. Cancer research ranges from epidemiology, molecular bioscience to the performance of clinical trials to evaluate and ...
. *''
Gibbs & Cox Gibbs & Cox is an American naval architecture firm that specializes in designing surface warships. Founded in 1922 in New York City, Gibbs & Cox is now headquartered in Arlington, Virginia. The firm has offices in New York City; Washington, D.C ...
'', a wholly owned subsidiary of Leidos since May 7, 2021. *''MEDPROTECT, LLC'' supports US government health-payer organizations *''Reveal'', develops dual-energy
X-ray computed tomography An X-ray, or, much less commonly, X-radiation, is a penetrating form of high-energy electromagnetic radiation. Most X-rays have a wavelength ranging from 10 picometers to 10 nanometers, corresponding to frequencies in the range 30  ...
systems for explosives-detection at airports and similar facilities *''CloudShield Technologies'' a wholly owned subsidiary, specializing in cyber-security *''Varec, Inc.'', liquid petroleum asset management company *''Leidos Health'' *''Leidos Canada'', formerly SAIC Canada, wholly owned subsidiary, works with Canadian government. *''Leidos Australia'' (Leidos Pty Ltd), wholly owned subsidiary, specializing in document technologies and cyber-security. Produces TeraText software. *''Leidos UK'' (Leidos Innovations UK Ltd, Leidos Europe Ltd, Leidos Supply Ltd & Leidos Ltd), wholly owned subsidiary, specializing in managed IT Services, developing of bespoke products. Produces, supports & maintains the Chroma Airport Suite, also responsible for the MOD's Supply Chain. *''Leidos Engineering'', LLC, formerly ''SAIC Energy, Environment & Infrastructure LLC'', assembles the legacy of engineering capabilities of ''Benham Investment Holdings'', LLC, R. W. Beck Group, Inc., and ''Patrick Energy Services''. *''QTC Management, Inc.'', acquired by merging with Lockheed Martin IS&GS. *''Systems Made Simple (SMS)'', acquired by merging with Lockheed Martin IS&GS.


Former subsidiaries

AMSEC LLC, a business partnership between SAIC and
Northrop Grumman Northrop Grumman Corporation is an American multinational aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military techn ...
subsidiary Newport News Shipbuilding divested on July 13, 2007. Network Solutions was acquired by SAIC in 1995, and subsequently was acquired by
VeriSign Verisign Inc. is an American company based in Reston, Virginia, United States that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers, the authoritative registry for the , , and gene ...
, Inc. for $21 billion.''Leidos Cyber, Inc.'', formerly Lockheed Martin Industrial Defender, acquired by merging with Lockheed Martin IS&GS, was sold to Capgemini in 2018.


Controversies


As SAIC

Then-SAIC had as part of its management and on its board of directors, many well-known ex-government personnel including
Melvin Laird Melvin Robert Laird Jr. (September 1, 1922 – November 16, 2016) was an American politician, writer and statesman. He was a U.S. congressman from Wisconsin from 1953 to 1969 before serving as Secretary of Defense from 1969 to 1973 under Presi ...
, Secretary of Defense in the Nixon administration; William Perry, Secretary of Defense for Bill Clinton; John M. Deutch, Director of Central Intelligence under President Clinton; Admiral Bobby Ray Inman who served in various capacities in the
National Security Agency The National Security Agency (NSA) is a national-level intelligence agency of the United States Department of Defense, under the authority of the Director of National Intelligence (DNI). The NSA is responsible for global monitoring, collect ...
(NSA) and
Central Intelligence Agency The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian foreign intelligence service of the federal government of the United States, officially tasked with gathering, processing, ...
(CIA) for the Ford, Carter and Reagan administrations; and David Kay who led the search for weapons of mass destruction after the 1991
Gulf War The Gulf War was a 1990–1991 armed campaign waged by a Coalition of the Gulf War, 35-country military coalition in response to the Iraqi invasion of Kuwait. Spearheaded by the United States, the coalition's efforts against Ba'athist Iraq, ...
and served under the Bush administration after the
2003 invasion of Iraq The 2003 invasion of Iraq was a United States-led invasion of the Republic of Iraq and the first stage of the Iraq War. The invasion phase began on 19 March 2003 (air) and 20 March 2003 (ground) and lasted just over one month, including 26 ...
. In 2022, 30 out of 38 Leidos Inc. lobbyists previously held government jobs. In June 2001, the
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
(FBI) paid SAIC million to create a
Virtual Case File Virtual Case File (or VCF) was a software application developed by the United States Federal Bureau of Investigation (FBI) between 2000 and 2005. The project was officially abandoned in April 2005, while still in development stage and cost the fe ...
(VCF) software system to speed up the sharing of information among agents. But the FBI abandoned VCF when it failed to function adequately. Robert Mueller, FBI Director, testified to a congressional committee, "When SAIC delivered the first product in December 2003 we immediately identified a number of deficiencies – 17 at the outset. That soon cascaded to 50 or more and ultimately to 400 problems with that software ... We were indeed disappointed." In 2005, then-SAIC executive vice president Arnold L. Punaro claimed that the company had "fully conformed to the contract we have and gave the taxpayers real value for their money." He blamed the FBI for the initial problems, saying the agency had a parade of program managers and demanded too many design changes. He stated that during 15 months that SAIC worked on the program, 19 different government managers were involved and 36 contract modifications were ordered. "There were an average of 1.3 changes every day from the FBI, for a total of 399 changes during the period," Punaro said. In 2011–2012, then-SAIC was among the 8 top contributors to federal candidates, parties, and outside groups with during the 2011–2012 election cycle according to information from the Federal Election Commission. The top candidate recipient was Barack Obama.


As Leidos

In a heavily redacted report dated January 3, 2018, the Inspector General for the Department of Defense determined that a supervisor at Leidos made “inappropriate sexual and racial comments to” a female contractor, and that when she complained of a hostile work environment, Leidos retaliated by excluding her from further work on an additional contract. The report found that Leidos's claim that the contract employee “exhibited poor performance throughout her employment" lacked supporting evidence. It recommended that U.S. Secretary of Defense
Jim Mattis James Norman Mattis (born September 8, 1950) is a retired United States Marine Corps four-star general who served as the 26th US secretary of defense from 2017 to 2019. During his 44 years in the Marine Corps, he commanded forces in the Persia ...
“consider appropriate action against Leidos” such as “compensatory damages, including back pay, employee benefits and other terms and conditions of employment” that the contractor would have received under the additional contract. In 2018, Leidos donated to the Senate campaign of Cindy Hyde-Smith. However, after a video was released showing Hyde-Smith speaking fondly of participating in "public hangings", Leidos said the company would never have made the donation if it had known about the comment. During Hyde-Smith's 2020 re-election bid, Leidos again donated to her.


See also

*
Top 100 Contractors of the U.S. federal government The Top 100 Contractors Report is a list developed annually by the U.S. General Services Administration as part of its tracking of U.S. federal government procurement, of the "Top 100" contractors in the United States. In fiscal year 2005, the f ...


References


Further reading

*


External links

* {{Authority control Defense companies of the United States Companies listed on the New York Stock Exchange Engineering companies of the United States American companies established in 1969 Consulting firms established in 1969 Technology companies established in 1969 1969 establishments in California Companies based in Reston, Virginia Information technology consulting firms of the United States International information technology consulting firms 2006 initial public offerings