ldos industry national security health and engineering predecessor science applications incorporated sai science applications international corporation saic founded june 1969 ; 47 years ago 1969 06 la jolla san diego california u.s. mclean virginia u.s. founder j. robert bob beyster headquarters reston virginia u.s. key people roger krone ceo revenue us 5.09 billion 1 2015 operating income us 298 million 1 2015 net income us 254 million 1 2015 total assets us 656 million 2015 1 2015 total equity us 1.04 billion 1 2015 number of employees 33 000 2 website leidos.com footnotes references 3 4 5 6 headquarters at reston town center . leidos a joint spin off of science applications international corporation saic 7 is an american defense company headquartered in reston virginia that provides scientific engineering systems integration and technical services . leidos works extensively with the united states department of defense 4th largest dod contractor fy2012 the united states department of homeland security and the united states intelligence community including the nsa as well as other u.s. government civil agencies and selected commercial markets . on september 27 2013 saic changed its name to leidos and spun off a new and independent 4 billion government services and information technology company which retains the name science applications international corporation with leidos being the primary successor to the original saic . 3 4 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 7 making it number 240 8 on the fortune 500 list . in 2014 leidos reported us 5.06 billion in revenue . 4 in 2015 leidos reported us 5.09 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 technical solutions sector . 9 as of august 2016 the company currently has 33 000 employees . 5 10 contents 1 history 2 management 3 operations 4 subsidiaries 4.1 former subsidiaries 5 controversies 5.1 revolving door 5.2 campaign contributions 5.3 fbi allegations 6 see also 7 references 8 further reading 9 external links history edit company logo 2010 the company was founded by j. robert bob beyster in 1969 in the la jolla neighborhood of san diego california as science applications incorporated sai . 11 12 saic conducted an initial public offering of common stock on october 17 2006 . 13 the offering of 86 250 000 shares of common stock was priced at 15.00 per share . the underwriters bear stearns and morgan stanley exercised overallotment options resulting in 11.25 million shares . the ipo raised us 1.245 b. 13 in september 2009 saic relocated its corporate headquarters to their existing facilities in tysons corner in unincorporated fairfax county virginia near mclean . 14 in 2012 saic was ordered to pay 550 million to the city of new york for overbilling the city over a period of seven years on the citytime contract . 15 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 . 16 in august 2012 saic announced its plans to split into two publicly traded companies . 17 18 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 . 19 the split has allowed both companies to pursue more business which it could not pursue as a single company due to conflicts of interest . 20 in february 2013 it was announced that the smaller spin off company would get the name science applications international corporation and would stay in the current headquarters while the larger company would change its name to leidos 21 created by clipping the word kaleidoscope and would move its headquarters to reston . 22 management edit 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 . 23 on july 1 2014 leidos announced that roger krone will become its ceo on july 14 2014 . 24 operations edit the defense intelligence agency dia transitioned a remote viewing program to saic in 1991 which was renamed stargate project . 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 clarification needed for the agency s project a digital network intelligence system to analyze data carried on computer networks . other project participants included boeing computer sciences corporation and booz allen hamilton . 25 according to science news site physorg.com trailblazer was a continuation of the earlier thinthread program . 26 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 . 27 in fiscal year 2003 saic did over 2.6 billion in business with the united states department of defense making it the ninth largest defense contractor in the united states . other large contracts included a bid for information technology for the 2004 olympics in greece 28 from 2001 to 2005 saic was the primary contractor for the fbi s unsuccessful virtual case file project . 29 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 . 30 subsidiaries edit leidos biomedical research inc. formerly saic frederick a wholly owned subsidiary of leidos manages frederick national laboratory for cancer research . 31 medprotect llc supports us government health payer organizations 31 reveal develops dual energy x ray computed tomography systems for explosives detection at airports and similar facilities 32 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 . 31 leidos australia leidos pty ltd wholly owned subsidiary specializing in document technologies and cyber security . 31 produces teratext software . 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. 33 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 . leidos cyber inc. formerly lockheed martin industry defender acquired by merging with lockheed martin is & gs . former subsidiaries edit amsec llc a business partnership between saic and northrop grumman subsidiary newport news shipbuilding divested on july 13 2007 . citation needed network solutions was acquired by saic in 1995 34 and subsequently was acquired by verisign inc. for 21 billion . 35 controversies edit revolving door edit the company has had as part of its management and on its board of directors many well known ex government personnel including melvin laird secretary of defense in the nixon administration ; william perry secretary of defense for bill clinton ; john m. deutch president clinton s cia director ; admiral bobby ray inman who served in various capacities in the nsa and 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 and served under the bush administration after the 2003 iraq invasion . in 2012 26 out of 35 saic inc. lobbyists previously held government jobs . 36 37 campaign contributions edit saic is among the 8 top contributors to federal candidates parties and outside groups with 1 209 611 during the 2011 2012 election cycle according to information from the federal election commission . the top candidate recipient was barack obama . 38 fbi allegations edit in june 2001 the fbi paid saic 122 million to create a virtual case file 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 . this quote needs a citation 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 . 39 there were an average of 1.3 changes every day from the fbi for a total of 399 changes during the period punaro said . 40 see also edit cia top 100 us federal contractors references edit a b c d e leidos investor relations news release . february 18 2016 . leidos solutions for national security health and engineering . retrieved september 25 2014 . a b aitoro jill r. september 27 2013 . what to expect from leidos and saic when they start trading sept. 30 . washington business journal . retrieved september 29 2013 . a b c aitoro jill r. september 27 2013 . exclusive john jumper explains why the leidos saic split had to happen . washington business journal . retrieved september 26 2013 . a b www.leidos.com . retrieved september 29 2013 . saic inc. s board of directors approves spin off of its services business . september 9 2013 . retrieved september 29 2013 . a b science applications international corporation . fiscal year 2013 annual report on form 10 k pdf . retrieved august 9 2013 . saic . industry rankings . retrieved august 9 2013 . leidos deal closes spawning vast solutions enterprise . retrieved 23 august 2016 . macmillan jeffrey 27 march 2014 . leidos coo stuart shea resigns as company s revenues continue to slide . washington post . retrieved 14 may 2014 . dr. j. robert beyster with peter economy the saic solution how we built an 8 billion employee owned technology company john wiley & sons 2007 p.xiii glass jon w. april 3 2007 . saic creator s book touts employee ownership . the virginian pilot . retrieved 27 november 2014 . beyster 82 retired as saic s chairman in july 2004 . a nuclear physicist by training and a self described evangelist for employee owned companies beyster said he wrote the book to provide entrepreneurs and business executives a model . he wrote it with peter economy an author or co author of several business