SAIC - Profile of an Ocean Tech Expo
Exhibitor (from March Marine Technology Reporter)
MTR SAIC offers a broad range of products and services to the global subsea market. In a paragraph, can you deliver what you believe to be the core strength of SAIC in this sector?
Dr. Peter Mikhalevsky SAIC is a FORTUNE 500 scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world. SAIC provides solutions for complex ocean science and engineering challenges. Our scientific depth, technological innovation, and systems integration expertise helps our customers to better understand ocean processes, protect vital marine resources, and harnesses new sources of clean, renewable energy.
MTR Please identify the 2 or 3 sectors within the Subsea niche that are core to your offering.
PM Ocean observation sensors and systems which contribute to military and civil organizations, commercial enterprises and academia, as well as full spectrum marine operations services – buoys, cabled seabed systems, and diving services. - Hydrographic survey services including software development, maritime operations and data analysis. - High-fidelity acoustic modeling, simulation and analysis -synthetic environment (acoustic/radar/visual/electronic surveillance measures) generation, massive parallel processing, and full-scale undersea warfare trainers and training services.
MTR Looking at SAIC as a whole, how does the subsea business rank?
PM SAIC has always considered the world’s oceans and their impact on the Earth’s population from climate to commerce to be extremely important. This has positioned SAIC to develop technology and scientific solutions that are now being used on the frontline of climate change, weather prediction, and maritime domain security. Our ocean experts and scientists are involved with the design of new scientific applications and prototypes that have the potential to answer many of the challenges confronting the world. Our energy and environmental engineering solutions provide energy efficiency, renewable energy options and pollution prevention to the oil and gas industry, utilities, energy service companies and the government.
MTR How has the global economic downturn affected your business?
PM SAIC has performed extremely well over the past decade and has continued to grow during the most recent economic challenges. Our customers are investing in our technologies because of our proven track record producing effective scientific solutions for hard problems. Revenues for the fiscal year that ended January 31, 2009, were $10.07 billion, up 13 percent from $8.93 billion in fiscal year 2008. Full-year operating income was $776 million (7.7 percent of revenue), up 15 percent from $673 million (7.5 percent of revenue) in fiscal year 2008. SAIC generates approximately 93 percent of its business through federal, state and local government contracts. The remaining seven percent is comprised of commercial contracts.
MTR What is your business projection for 2010 and beyond?
PM Science and technology, refreshed and refocused as the market demands, will continue to provide the foundation of SAIC’s business. Company-wide capabilities in core technology areas underpin multiple markets. The current government administration appears to be committed to increasing investment in the maritime arena, viewing the oceans as critical to many fundamental economic and security issues.
MTR What are the primary drivers for your business?
PM Some of the key drivers in the maritime arena include the impact of natural disasters such as the December 2004 Asian Tsunami and major weather events like hurricanes Katrina and Rita. Finding and managing the necessary resources to support an increasing world population and to drive modern economies make the oceans an increasingly critical resource for food, energy and raw materials, fisheries and aquaculture to address problems such as the worldwide Blue Fin Tuna shortage. There is an immediate and pressing need for better ocean and atmospheric data in order to better understand, predict and mitigate the effects of global climate change. With more than 90% of the world’s international commerce moving across the oceans, protection of merchant shipping from pirates and other hazards require effective solutions to minimize the financial impact to the companies and the consumer.
MTR How are you investing (facilities, technology, people) today?
PM To ensure we remain competitive in the years ahead, we are investing in our science and technology capabilities, internal research and development, and in our people, in areas such as management training, employee engagement, and career development. Internally, SAIC is well prepared for change, having made the transition from a decentralized set of businesses to a company that collaborates and innovates to successfully operate in changing environments. We continue to put people first, to meet our customers’ requirements for their mission success. The rebalancing of power among nations and the fundamental restructuring of the world’s economic system, the continued threat of terrorism and the instability of ungoverned spaces, the unknown affects of climate change and an increasingly precarious balance between energy supply and demand all serve to make the current world a highly uncertain and dangerous place. SAIC is focusing attention on early Tsunami warning systems using minute-by-minute data from SAIC’s Tsunami Buoys. With earlier warning, thousands of lives might have been saved in the 2004 Asian Tsunami. In addition to the Tsunami Buoys, we continue to grow our hydrographic survey capabilities as more government agencies and commercial entities need accurate data to better navigate the world’s oceans. It is this prevalent need for data and information that supports our work in NOAA’s National Data Buoy Center. This information impacts every facet of weather prediction and modeling – the very essence of which affects the nation’s citizenry every day. These issues also create opportunities for companies prepared to help the U.S. government, its allies, and private sector organizations solve the world’s most difficult problems.
MTR What do you feel are the company’s top three technological contributions to the subsea market?
PM The SAIC Tsunami Buoy, our hydrographic survey operations and our support to the government for the National Data Buoy Center are amongst the top contributions SAIC makes today in the subsea arena. Our SAIC Tsunami Buoy (STB) system is an enhanced version of the DART (Deep Ocean Assessment and Reporting of Tsunamis) buoy currently being used by NOAA. SAIC Tsunami Buoy systems are now operating to detect tsunamis in Australia, Thailand, and the People’s Republic of China. Supporting NOAA directly, SAIC conducts significant hydrographic survey operations developing the data and information to better chart our nation’s and the world’s oceans and waterways. Immediately after Hurricane Katrina, SAIC was directly involved in mapping the entry channels into New Orleans enabling one of the first reliable access routes to the devastated city. At the National Data Buoy Center, SAIC supports operations and maintenance of the nation’s fleet of weather buoys and applies IOOS recommended standards to real-time data for enhanced data accessibility. The IOOS™ ties together disconnected data from academia, industry, scientific, and government systems. The compilation reduces duplicative efforts and provides a more usable, accurate, and comprehensive understanding of our seas and coast regions.
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MTR SAIC offers a broad range of products and services to the global subsea market. In a paragraph, can you deliver what you believe to be the core strength of SAIC in this sector?
Dr. Peter Mikhalevsky SAIC is a FORTUNE 500 scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world. SAIC provides solutions for complex ocean science and engineering challenges. Our scientific depth, technological innovation, and systems integration expertise helps our customers to better understand ocean processes, protect vital marine resources, and harnesses new sources of clean, renewable energy.
MTR Please identify the 2 or 3 sectors within the Subsea niche that are core to your offering.
PM Ocean observation sensors and systems which contribute to military and civil organizations, commercial enterprises and academia, as well as full spectrum marine operations services – buoys, cabled seabed systems, and diving services. - Hydrographic survey services including software development, maritime operations and data analysis. - High-fidelity acoustic modeling, simulation and analysis -synthetic environment (acoustic/radar/visual/electronic surveillance measures) generation, massive parallel processing, and full-scale undersea warfare trainers and training services.
MTR Looking at SAIC as a whole, how does the subsea business rank?
PM SAIC has always considered the world’s oceans and their impact on the Earth’s population from climate to commerce to be extremely important. This has positioned SAIC to develop technology and scientific solutions that are now being used on the frontline of climate change, weather prediction, and maritime domain security. Our ocean experts and scientists are involved with the design of new scientific applications and prototypes that have the potential to answer many of the challenges confronting the world. Our energy and environmental engineering solutions provide energy efficiency, renewable energy options and pollution prevention to the oil and gas industry, utilities, energy service companies and the government.
MTR How has the global economic downturn affected your business?
PM SAIC has performed extremely well over the past decade and has continued to grow during the most recent economic challenges. Our customers are investing in our technologies because of our proven track record producing effective scientific solutions for hard problems. Revenues for the fiscal year that ended January 31, 2009, were $10.07 billion, up 13 percent from $8.93 billion in fiscal year 2008. Full-year operating income was $776 million (7.7 percent of revenue), up 15 percent from $673 million (7.5 percent of revenue) in fiscal year 2008. SAIC generates approximately 93 percent of its business through federal, state and local government contracts. The remaining seven percent is comprised of commercial contracts.
MTR What is your business projection for 2010 and beyond?
PM Science and technology, refreshed and refocused as the market demands, will continue to provide the foundation of SAIC’s business. Company-wide capabilities in core technology areas underpin multiple markets. The current government administration appears to be committed to increasing investment in the maritime arena, viewing the oceans as critical to many fundamental economic and security issues.
MTR What are the primary drivers for your business?
PM Some of the key drivers in the maritime arena include the impact of natural disasters such as the December 2004 Asian Tsunami and major weather events like hurricanes Katrina and Rita. Finding and managing the necessary resources to support an increasing world population and to drive modern economies make the oceans an increasingly critical resource for food, energy and raw materials, fisheries and aquaculture to address problems such as the worldwide Blue Fin Tuna shortage. There is an immediate and pressing need for better ocean and atmospheric data in order to better understand, predict and mitigate the effects of global climate change. With more than 90% of the world’s international commerce moving across the oceans, protection of merchant shipping from pirates and other hazards require effective solutions to minimize the financial impact to the companies and the consumer.
MTR How are you investing (facilities, technology, people) today?
PM To ensure we remain competitive in the years ahead, we are investing in our science and technology capabilities, internal research and development, and in our people, in areas such as management training, employee engagement, and career development. Internally, SAIC is well prepared for change, having made the transition from a decentralized set of businesses to a company that collaborates and innovates to successfully operate in changing environments. We continue to put people first, to meet our customers’ requirements for their mission success. The rebalancing of power among nations and the fundamental restructuring of the world’s economic system, the continued threat of terrorism and the instability of ungoverned spaces, the unknown affects of climate change and an increasingly precarious balance between energy supply and demand all serve to make the current world a highly uncertain and dangerous place. SAIC is focusing attention on early Tsunami warning systems using minute-by-minute data from SAIC’s Tsunami Buoys. With earlier warning, thousands of lives might have been saved in the 2004 Asian Tsunami. In addition to the Tsunami Buoys, we continue to grow our hydrographic survey capabilities as more government agencies and commercial entities need accurate data to better navigate the world’s oceans. It is this prevalent need for data and information that supports our work in NOAA’s National Data Buoy Center. This information impacts every facet of weather prediction and modeling – the very essence of which affects the nation’s citizenry every day. These issues also create opportunities for companies prepared to help the U.S. government, its allies, and private sector organizations solve the world’s most difficult problems.
MTR What do you feel are the company’s top three technological contributions to the subsea market?
PM The SAIC Tsunami Buoy, our hydrographic survey operations and our support to the government for the National Data Buoy Center are amongst the top contributions SAIC makes today in the subsea arena. Our SAIC Tsunami Buoy (STB) system is an enhanced version of the DART (Deep Ocean Assessment and Reporting of Tsunamis) buoy currently being used by NOAA. SAIC Tsunami Buoy systems are now operating to detect tsunamis in Australia, Thailand, and the People’s Republic of China. Supporting NOAA directly, SAIC conducts significant hydrographic survey operations developing the data and information to better chart our nation’s and the world’s oceans and waterways. Immediately after Hurricane Katrina, SAIC was directly involved in mapping the entry channels into New Orleans enabling one of the first reliable access routes to the devastated city. At the National Data Buoy Center, SAIC supports operations and maintenance of the nation’s fleet of weather buoys and applies IOOS recommended standards to real-time data for enhanced data accessibility. The IOOS™ ties together disconnected data from academia, industry, scientific, and government systems. The compilation reduces duplicative efforts and provides a more usable, accurate, and comprehensive understanding of our seas and coast regions.
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