Mark Sopp , SAIC chief financial officer commented, "Our core business continues to execute well, not only in winning and executing important work but also collecting and efficiently deploying our cash on acquisitions and share repurchases. Despite the non-recurring charges we took in the second quarter, we still expect to attain our fiscal year 2009 operating margin improvement goal of 20-30 basis points through strong labor growth and utilization coupled with higher border and port security product deliveries expected in the second half of the year."
New Business Awards
Net new business bookings totaled
Large, competitive definite delivery contracts received during the quarter include:
-- Program Executive Office for Enterprise Information Systems ( PEO EIS )
Support for the Army National Guard. SAIC received a five-year,
-- Naval Surface Warfare Center (NSWC) Support Services. Under a
-- U.S. Army Corps of Engineers Design-Build Projects. SAIC was awarded
contracts by the U.S. Army Corps of Engineers to design, engineer, and
construct an advanced metal finishing facility and a ground support equipment
facility at Robins Air Force Base (AFB), Georgia and a consolidated fuel,
overhaul, repair, and test facility at Tinker AFB, Oklahoma with a combined
contract value of more than
-- Defense Advanced Research Projects Agency (DARPA) Deep Green Program.
SAIC will support DARPA's Deep Green Program under a three-year,
-- Dubai Customs VACIS(R) IP6500 Purchase. Dubai Customs purchased five VACIS(R) IP6500 integrated cargo scanning systems for the port of Jebel Ali. The VACIS IP6500 combines high-penetration X-ray scanning, American National Standards Institute (ANSI)-compliant spectroscopic radiation detection and automated container identification in a self-contained portal requiring no additional shielding structure or exclusion zone. The system can handle more than 150 trucks per-hour, provide detailed cargo images through more than a foot of steel, and specifically identify hazardous nuclear materials, minimizing the need for costly secondary cargo inspections.
In addition, SAIC also won several indefinite delivery/indefinite quantity (IDIQ) contracts that are not included in the bookings total. The most notable IDIQ awards during the quarter were:
-- Defense Information Systems Agency (DISA) Encore II. SAIC will deliver
a broad range of information technology (IT) services and solutions to help
DISA transform the Department of Defense to a network-centric environment that
improves situational awareness by enhancing how the military services share
information. Under the multiple-award, ten-year contract with a total contract
ceiling value of