Science Applications International Corp.

10260 Campus Point Dr.

Year founded: 1969

Industry: Information Technology

Post 200 Category: Top Companies Headquartered Outside Region

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Auditor: Deloitte & Touche LLP

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Chairman and CEO: Kenneth C. Dahlberg

EVP and COO : Duane Andrews

Employees: 42636

Local employees: 15814

Description: The nation's largest employee-owned research and engineering firm, Science Applications International Corp. provides a wide array of products and services to the government, including helping to develop the next generation of combat vehicles.

Developments: After 35 years under the direction of company founder J. Robert Beyster, SAIC last year adjusted to new leadership for the first time. Beyster stepped aside as chairman in July, ceding the title to former General Dynamics executive Kenneth C. Dahlberg, who had become SAIC's chief executive in November 2003. Dahlberg initiated a reorganization intended to streamline SAIC's decentralized structure by creating larger but fewer units. SAIC had traditionally operated as a federation, with units exercising considerable autonomy and in some cases competing against each other for the same contract. Dahlberg said the switch to a more centralized structure was designed to make it easier for large customers to deal with the company and to give SAIC the chance to grow rapidly. Dahlberg has set a goal of doubling the company's value within three to five years, and he made progress toward that mark last year as SAIC's revenue shot up on the government's rising demand for services related to the war on terror. SAIC already employs about 16,000 people in the Washington area, and it vowed in November to create several thousand more jobs in Virginia over the next few years, most in the Washington suburbs. The company also made some purchases in 2004. Among its local acquisitions: Hanover-based Atlantic Coast Telesys, which did signals-processing work for defense and intelligence agencies; Lanham-based Trios Associates Inc., which created surveillance and communications systems for the government; and Fairfax-based Presearch Inc., which specialized in naval systems engineering. SAIC shed a holdover from the tech boom, selling a telecommunications software subsidiary, Telcordia Technologies, for $1.35 billion. Even as SAIC made a play for more government work, it came under scrutiny for its handling of several contracts. A television network the company helped establish in Iraq was derided by critics as little more than a propaganda machine for the U.S.-led Coalition Provisional Authority. Early in 2005, SAIC also took a beating from FBI Director Robert S. Mueller, who blamed the company for a foundering $170 million effort to create a virtual case file system the agency could use to track would-be terrorists. And a break-in at company headquarters resulted in the theft of computers containing personal financial information of tens of thousands of past and present employees. Among those who received notices from the company that they would need to be on guard against identity theft were former directors of the CIA and former secretaries of defense.