SAIC to leverage Boeing fed work

Science Applications International Corp. has been busy buying up small technology companies at the rate of more than one per month since January, but it had not shopped in the federal marketplace until this month, when it announced plans to buy Boeing Information Services Inc. SAIC's purchase of Bo

Science Applications International Corp. has been busy buying up small technology companies at the rate of more than one per month since January, but it had not shopped in the federal marketplace until this month, when it announced plans to buy Boeing Information Services Inc.

SAIC's purchase of Boeing IS, whose revenue comes almost exclusively from federal contracts, is SAIC's seventh acquisition since the beginning of 1999. SAIC, the largest privately held federal systems integrator, will pay an undisclosed amount of cash for the subsidiary of Boeing Co.

"We believe the two groups together bring a critical mass of people," said Duane Andrews, corporate executive vice president of SAIC. "We are going to leverage that to go after a lot more outsourcing."

Boeing IS has sharpened its systems integration and network management skills in developing the Army's Reserve Component Automation System (RCAS) of 50,000 workstations at 5,000 sites across the country, according to SAIC. In May, the Health Care Financing Administration selected Boeing IS as one of 12 companies to help the agency stop Medicare waste and fraud under a five-year contract.

In the purchase, SAIC picks up 1,200 employees, 70 percent of whom are engineers or technicians, and projected revenue of $300 million in fiscal 1999, most of it coming from Defense Department and NASA contracts. That includes all the computing support for NASA's headquarters, ranging from developing system solutions to providing their networks and desktop services, said William Delaney, president of Boeing IS.

Boeing IS also has major service contracts with the Defense Information Systems Agency, NASA's Goddard Space Flight Center, Kennedy Space Center and Stennis Space Center, and the Navy's China Lake, Calif., research facility.

SAIC has teamed with Boeing IS as a substitute on RCAS and on the Defense Information Systems Network Defense Support Services-Global pact to support the deployment of a worldwide Asynchronous Transfer Mode network. Each of those contracts is worth more than $1 billion.

Boeing IS holds some excellent contracts, said John Allen, vice president of Quarterdeck Investment Partners Inc. "The issue is," he said, "can they sustain the business they acquire as it comes up for recompete?"

Allen said SAIC, which has funded its shopping spree with the proceeds of taking Network Solutions Inc. public in the fall of 1997, has a history of buying entrepreneurial companies and making sure they are not subsumed. Not many companies that are major players in the federal IT marketplace have had much success sustaining the entrepreneurial spirit after buying up smaller companies, Allen said.

Boeing IS was formed in 1994, evolving from a computer services group that had existed within Boeing since the 1970s. But the Seattle-based aircraft builder, looking to focus on its core competencies, decided late last year to shop Boeing IS around, Delaney said. SAIC heard that Boeing wanted to sell its subsidiary in January and responded immediately, Andrews said.

Delaney said Boeing IS customers will receive the same support once the group is taken over by SAIC. He also noted that the top eight managers of Boeing IS will transfer to SAIC as part of the transaction. No layoffs are planned, Delaney and Andrews said. If the deal receives the blessing of federal regulators as expected next month, Boeing IS will become a sector of SAIC, and Delaney will manage it.

McBride buys former Cordant

Another consolidation in the federal systems integrator market was announced this month. McBride and Associates Inc., a private company based in Albuquerque, N.M., bought Marconi Enterprise Solutions Inc., a subsidiary of Marconi North America and the British electronic and telecommunications conglomerate General Electric Co. PLC, for an undisclosed amount.

Marconi Enterprise Solutions was formed through the 1998 acquisition of Tracor Enterprise Solutions, which had acquired Cordant Inc. in 1996.

"We think they are a good fit. They have strengths where we needed them, and we bring strengths where they need them," said a McBride official, who asked not to be identified.

Terms of the deal were not disclosed, but the official said there would be no layoffs among the 60 employees now with Marconi Enterprise Solutions or the McBride employees.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.