Sunday, February 21, 2010

Explain This One to Me

February 11, 2009: Science Applications International Corp. said Thursday it has reeled in a new Army contract potentially worth $12 million to develop advanced training simulators for combat helicopter crews.

[...]

SAIC employ[s] 45,000 worldwide in defense, intelligence and other government and commercial high-tech work. It posted annual revenues of $10.1 billion in 2009.

  Orlando Sentinel

July 3, 2009: The Justice Department announced yesterday that it had joined a whistleblower lawsuit filed in federal court in Mississippi asking for a monetary judgment against SAIC, which has already been paid $116 million under the contract.

[...]

SAIC, one of the Pentagon's largest contractors, conspired with federal officials to rig a $3.2 billion technology contract and tried to cover up the scheme by destroying documents and electronic records, federal prosecutors said in newly unsealed court documents.

[...]

"Those who do business with the government must act fairly and in accordance with the law," Assistant Attorney General Tony West said in a statement. "As this case illustrates, the Department of Justice will actively pursue legal action against both contractors and federal employees who seek to gain an unfair advantage in the procurement process."

  WaPo

Just last summer the Justice Department joined in a lawsuit against SAIC over contract rigging, which surely implies fraud, but now they're getting yet another government contract. Could it have anything to do with the fact that Robert Gates, current Secretary of Defense, ex-CIA director, and a veteran of the Iran-Contra scandal, is a former SAIC board member?

But wait…we know much more about SAIC.

From Sourcewatch:

In 1990 SAIC was indicted and pled guilty to 10 felony counts of fraud on a Superfund site, called “one of the largest (cases) of environmental fraud” in Los Angeles history. [2] SAIC had some 44,000 employees and took in $8 billion in 2006. SAIC "is larger than the departments of Labor, Energy, and Housing and Urban Development combined," reported Vanity Fair. [3] "SAIC's largest customer by far is the U.S. government, which accounts for 69 percent of its business," according to the Center for Public Integrity.

[...]

Under "yet another no-bid contract," SAIC created the Iraqi Media Network, supposedly a "free and independent indigenous media network" that quickly became "a mouthpiece for the Pentagon." Eventually, "the network was turned over to Iraqi control. Today it is a tool of Iraq's Shiite majority and spews out virulently anti-American messages." Moreover, SAIC's work on the Iraqi Media Network was criticized by the Pentagon's Inspector General as having "widespread violations of normal contracting procedures."

And permit me, if you will, to reprint an entire post I made January 13, 2005:

A new FBI computer program designed to help agents share information to ward off terrorist attacks may have to be scrapped, the agency has concluded, forcing a further delay in a four-year, half-billion-dollar overhaul of its antiquated computer system. Since the attacks, Congress has given the FBI a blank check, allocating billions of dollars in additional funding. So far the overhaul has cost $581 million, and the software problems are expected to set off a debate over how well the bureau has been spending those dollars.

[...]

The bureau recently commissioned a series of independent studies to determine whether any part of the Virtual Case File software could be salvaged. Any decision to proceed with new software would add tens of millions of dollars to the development costs and render worthless much of a current $170-million contract.

Requests for proposals for new software could be sought this spring, the officials said. The bureau is no longer saying when the project, originally scheduled for completion by the end of 2003, might be finished.

article

Probably a wise decision.

Apparently the program was also considered by the Justice Department, which deemed it unusable for them as well.

The designer of the program is Science Applications International Corp (whose programs are used by Halliburton and the U.S. Navy), which has gotten a number of government contracts in Iraq, including one to "rebuild Iraq's mass media".

So, the FBI is having problems with the SAIC program, the Justice Department nixed it, and lo and behold, the Defense Department also had some problems with another program SAIC was to develop.

March 25th, 2004

Defense contractor Science Applications International Corp. has agreed to pay $484,500 to settle allegations it violated the False Claims Act when designing a computer system program for the U.S. Department of Defense.

[...]

The federal government alleged that SAIC repeatedly misrepresented its progress on the project.

[...]

The government also alleged it overpaid for SAIC's services and that SAIC's actions delayed the government's implementation of the system.

Corp Watch article

March 25th, 2004

In a scathing report yesterday, the Pentagon's inspector general sharply criticized contracts issued last year to San Diego's SAIC for reconstruction and humanitarian work in Iraq.

[...]

In particular, defense auditors highlighted problems with SAIC's work to create a free and independent Iraqi Media Network, or IMN, that was ostensibly to be modeled on Britain's BBC.

The Defense Contracting Command awarded the $15 million contract to SAIC on March 11, 2003, without an acquisition plan or competitive bidding. By the end of September, however, SAIC's costs under the contract had escalated to $82.3 million.

Sign on San Diego article

Read that last article. There are some real humdingers in it.

I wonder how this company keeps getting contracts.

SAIC has been awarded seven contracts by the Defense Department to provide experts and advisers on development of representative government in Iraq; restore and upgrade the country's broadcast media; and provide a group of Iraqi expatriates to assist coalition officials working in the country. The value of the contracts, which were obtained by the Center for Public Integrity under the Freedom of Information Act, was blacked out in copies provided by the Defense Department. A Pentagon FOIA officer said keeping the information secret "was an appropriate way to avoid substantial competitive harm to the contractor" and was "due to the sensitive nature of the Iraqi contracts."

[...]

The Pentagon has steadfastly refused to release any specific information on SAIC's media reconstruction work, which has been dubbed the Iraqi Media Network. What little information that has leaked out about the SAIC effort has come mainly from disgruntled employees and press freedom advocates, who have charged the company has bungled the job badly. One report said SAIC had ordered equipment that was incompatible with existing systems in Iraq. [...] There have also been widespread complaints from press freedom organizations about the SAIC effort, including charges of military censorship and cronyism.

[...]

David Kay, the former U.N. weapons inspector who was hired by the CIA to track down weapons of mass destruction in Iraq, is a former vice president of SAIC. Kay left SAIC, where he oversaw homeland security and counterterrorism work, in October 2002.

Christopher "Ryan" Henry left a senior position at SAIC in February 2003 to become principal deputy undersecretary of Defense for policy.

[...]

Executive vice president for Federal Business and director Duane P. Andrews served as assistant secretary of Defense from 1989 to 1993, when he joined SAIC.

There are more.

The Associated Press describes Science Applications International Inc. (SAIC) as "the most influential company most people have never heard of." The Asia Times calls it "the most mysterious and feared of the big 10 defense giants."

[...]

SAIC might best be described as "the-company-of-what's-ha ppening-now" in defense and intelligence. If it's important and it's happening, it's likely that SAIC has piece of the action. The company's ranks overflow with former or retired government person, many from the military and intelligence agencies. Much of SAIC's work is highly classified.

At any given point in time, SAIC's board of directors represents a Who's Who of former military and intelligence officials.

[...]

Long before the shooting began SAIC was already at work on Iraq.

[...]

[William] Owens also served as president, chief operating officer and vice chair of SAIC. And, Owens is a member of Defense Secretary Donald Rumsfeld's internal think-tank, the Defense Policy Board.

Veterans for Peace article (10/03)

SAIC is also a sub-contractor under Vinnell Corporation, another big defence contractor that has long been in charge of training for the Saudi National Guard, hired to reconstitute and train a new Iraqi army.
Peace Redding article

SAIC is also somehow involved in the electronic voting business.

"The American vote count is controlled by three major corporate players, Diebold, ESS, and Sequoia. There's a fourth, SAIC, Science Applications International Corporation, coming on strong. These companies, all four of them, are hard-wired into the Bush power structure and they have been given God knows how many millions of dollars by the Bush regime to complete a sweeping computerization of voting machines that were just used in the 2004 election.
Ratical article

Four main corporate entities are responsible for the proliferation and implementation of this "black box" voting technology: Diebold, ESS, Sequoia, and Science Applications International (SAIC). These ostensibly competitive businesses interconnect with one another and with major corporate sponsors, especially the famed Carlyle Group, of the Bush administration. Their people are his people, so to speak. And vice versa.
ReasonToFreedom article

SAIC was hired to investigate the reliability of Diebold machinery in Maryland.

Aviel Rubin, a professor at Johns Hopkins University's Information Security Institute, was asked to review the Diebold code accessible on the company's website and used by its machines. Rubin and his colleagues found numerous security issues with the code, including the use of a consumer version of Microsoft Access as the database in which votes were stored, a product that has few security measures. The report, which garnered front page news in a number of newspapers, was released only days after Maryland had purchased 11,000 Diebold DRE machines at a price of $55.6 million. Maryland then had the Science Applications International Corporation (SAIC) review Rubin's findings. SAIC verified Rubin's concerns, reporting that they had "identified several high risk vulnerabilities of the managerial, operational, and technical controls for [Diebold's] AccuVote-TS voting system." The SAIC report continued, "If these vulnerabilities are exploited, significant impact could occur on the accuracy, integrity, and availability of election results."
Couples Company article

I don't know if there's a competition thing going on there, or if there is anything at all untoward in it. A number of articles on the electronic voting fiasco hint that SAIC is involved in some shady way (and given what else we know, I guess that's a pretty safe bet).

It is something to be looked into. But not by me. In the immortal words of the Senate panel on new torture restrictions: too complex.

<---- End Post ---->

Defense contracts, of course, are only some 70% or so of SAIC's income. They're into virtually everything, and globally. Here's another very recent article on a SAIC project that might be of interest:

Will the U.S. flush another $2.4 trillion down the drain?

02/20/10 12:55 AM EST

That’s how much the U.S. economy will lose over the next two decades by continuing current federal policies that limit drilling for oil and gas on federal lands and the continental shelf, according to an independent study by Science Applications International Corp. and the Gas Technology Institute.

The study was commissioned by the National Association of Regulatory Utility Commissioners (NARUC) and sponsored in part by the Independent Petroleum Association of America (IPAA).

  Washington Examiner

Does SAIC's finding surprise you?

I bet if you try, you could trace the "Independent" Petroleum Association of America to some current DC politicos, too.


....but hey, do what you want....you will anyway.

IPAA is one of the largest energy contributors to both Republican and Democratic candidates for Congress. These contributions total $336,500 to the 110th US Congress (as of the third quarter), the largest of which has been to Rep. John Sununu(R-NH) for $10,000. Rep. Sununu, for his part, has consistently voted with the oil industry on energy, war and climate bills.

  Sourcewatch

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