OUR PEOPLE. OUR COMMUNITY. OUR . · PDF fileWhen we started our company in September 2013 with a new vision ... warriors how to surf in Virginia Beach, Virginia; ... We are focused

2014 Corpora te Respons ib i l i t y Repor t

OUR PEOPLE.OUR COMMUNITY.OUR ENVIRONMENT.

2014 SAIC CORPORATE RESPONSIBILITY REPORT2

CO

NT

EN

TS

3 MESSAGE FROM THE CEO

6 ABOUT SAIC7 OUR CORE VALUES8 CORE VALUES IN PRACTICE9 SOLUTIONS AND KEY MARKETS10 LOCATIONS11 CORPORATE STRUCTURE13 OUR PEOPLE14 EMPLOYEE DEMOGRAPHICS15 VETERAN AND WOUNDED

WARRIOR HIRING17 EMPLOYEE RESOURCE GROUPS

20 GOVERNANCE AND ETHICS24 CORPORATE GOVERNANCE

27 CORPORATE CITIZENSHIP30 STRATEGIC PHILANTHROPY31 COMMUNITY RELATIONS

33 THE ENVIRONMENT36 EXCELLENCE IN ENVIRONMENTAL,

HEALTH AND SAFETY

3 2014 SAIC CORPORATE RESPONSIBILITY REPORT

MESSAGE FROM THE CEO

We are proud to publish the 2014 SAIC Corporate Responsibility Report, our inaugural edition as a new publicly held company. After our first full year of operation, it is a good time to reflect on all that the employees at SAIC have done this past year to give back to our communities, serve the customers we support, and protect the environment in which we work.

During this first year of operations, we remained focused on our core values of integrity, accountability, trust, respect, and responsibility. Ethical behavior is the bedrock of who we are, and we are proud to report that third-party evaluators recently completed assessments of our Ethics program and deemed it “world class,” citing SAIC as an industry leader in its implementation of an ethical culture and its program elements. Our industry peers further validated these perceptions when they appointed SAIC executives to leadership positions on the Defense Industry Initiative on Business Ethics and Conduct.

Our efforts to promote diversity have enabled us to make progress in hiring more minorities, women, and veterans. At SAIC, we encourage employee resource groups, such as the Women’s Network and the Military Alliance Group, which increase networking opportunities internally and support volunteer outreach at the local level.

When we started our company in September 2013 with a new vision for strategic philanthropy and community relations, we focused our efforts to align more closely with our strategy and in support of our customers’ missions. Since then, a multitude of our employees have participated in community events, some coordinated at the corporate level but many initiated by employees in the communities where we and our customers live and work.

SAIC employees welcomed home returning military service members at their local airport in Huntsville, Alabama; Charleston, South Carolina; and San Diego, California; painted a school in a low-income neighborhood in the District of Columbia; taught wounded


warriors how to surf in Virginia Beach, Virginia; supported Habitat for Humanity in San Diego; and provided backpacks for the children of service members nationwide. In the month of September alone, our employees raised the equivalent of almost 500,000 meals to support Americans with food insecurities.

We encourage all of our employees to give back to our communities, just as they do daily in their dedication and support to our customers. Our employees bring an authenticity and passion to volunteerism and community engagement through our emerging Corporate Citizenship initiative. Their focus, energy, and motivation contribute to our reputation as a great company and a respected corporate citizen. Their spirit is helping to shape a culture of collaboration at SAIC that is increasingly focused on service to others.

On the environmental front, we initiated an Environmental Sustainability Working Group, whose primary mission is to guide the company’s efforts to address regulatory and compliance risks while enhancing economic, environmental, and social development benefits.

Through actions large and small, we are sending a clear message that SAIC is a company that takes pride in being a good corporate citizen just as we have a strong reputation for taking pride in serving our nation’s missions. We are focused on continuing to excel as a leader in our industry, respected for our contributions in enabling our customers to fulfill their missions, and for the many ways we support and serve our communities, the environment and our employees.

Anthony J. Moraco

Chief Executive Officer

MESSAGE FROM THE CEO (continued)

Our support of Operation Homefront’s Back-To-School Brigade provided more than 6,000 backpacks to military dependents across the nation.


ABOUT SAIC

We are a leading technology integrator, providing full life-cycle services and solutions. SAIC’s deep domain knowledge and enduring customer relationships enable the delivery of systems engineering and integration offerings for large, complex government projects.

SAIC’s approximately 13,000 employees serve customers in the U.S. federal government and state/local markets, specializing in providing a broad range of higher-end, differentiated technical capabilities.

Headquartered in McLean, Virginia, SAIC is a public company listed on the New York Stock Exchange and has annual revenues of about $4.1 billion. For more information, visit saic.com/about/saic/.

After our spinoff as a new company on Sept. 27, 2013, SAIC remains an industry leader in technical, engineering, and enterprise information technology solutions to the federal government

http://www.saic.com/about/saic/


OUR CORE VALUES

SAIC’s core values define our culture and the way in which we do business. They form the basis of our conduct and govern our decisions. To us, how we behave is as important as the results we achieve. An underlying principle of our conduct is our commitment to uphold the highest ethical standards in ourselves and those around us.

Integrity

Integrity is integral to working at SAIC; we demand the highest ethical standards from ourselves and our colleagues. Refusing to compromise on matters of principle and consistently demonstrating honesty and moral courage allow us to act with confidence in our fellow employees.

Accountability

We are accountable for everything we do, or fail to do. We take ownership of our actions and are committed to avoiding ethical lapses. Intent, words, actions, and results are interconnected. Our accountability is key to the success of SAIC and our customers.

Trust

We begin with the assumption that everyone is doing his or her best and is doing the right thing. Openness, fairness, and honesty in our interactions lead to our collective success. Mutual trust is earned through developing personal relationships and by demonstrated behavior, and together we earn the trust of our customers and partners.

Respect

SAIC’s culture is built upon the strengths, initiative, and dedication of our people. We treat people with respect, courtesy, honesty, and fairness. We value diversity, including skills, experiences, and perspectives. Individuals are respected and valued for their uniqueness.

Responsibility

Our work makes a difference and deserves our very best efforts. We accept our professional responsibility to uphold the highest standards; commitments are taken seriously. We meet or surpass our obligations to stakeholders. We take initiative in meeting challenges and take pride in our accomplishments.


CORE VALUES IN PRACTICE

We, as SAIC employees, are dedicated to the delivery of quality mission-oriented technical services and solutions, contributing to the well-being and security of our communities throughout the world. We believe high ethical standards are essential to the achievement of our individual and corporate goals. Our credo reflects the application of our core values to the constituencies with whom we interact.

• To Our Customers:

— We place the highest priority on the practical effectiveness, quality, timeliness, and competitiveness of our services and solutions.

— We pursue our objectives with a commitment to personal integrity and high professional standards.

• To Our Fellow Employees, Present and Prospective:

— We provide a healthy and safe workplace.

— We promote an environment that encourages new ideas, high-quality work, and professional achievement.

— We treat our fellow employees honestly and fairly, and we ensure equal opportunity for employment and advancement.

— We recognize the contributions of every employee and share rewards with those whose honest efforts contribute to our success.

• To Our Suppliers and Subcontractors:

— We are fair and professional in all our business dealings and honor our commitments to our business partners.

— We select suppliers and subcontractors who will adhere to our ethical standards and commitment to quality products and services.

• To Our Neighbors:

— We are responsible citizens, respecting the laws and customs of each community in which we live or conduct business and helping to enrich those communities through service.

• To Our Stockholders:

— We are innovative in identifying and pursuing emerging opportunities.

— Consistent with the commitments expressed above, we strive to provide our stockholders a fair return on investment.

SAIC Shareholder Video

http://vimeo.com/95962692



SOLUTIONS AND KEY MARKETS

Core strengths contribute to successSAIC is a leading provider of technical, engineering, and enterprise information technology (IT) services. Our employees provide full life-cycle services and solutions for programs of national importance.

Our CustomersOur customers include all branches of the U.S. military, Department of Defense (DoD), U.S. Defense Logistics Agency (DLA), National Aeronautics and Space Administration (NASA), U.S. Department of State (DoS), and U.S. Department of Homeland Security (DHS).

We carry with us longstanding customer relationships that enable our in-depth understanding of our customers’ missions and ability to provide differentiated service offerings to meet their most complex requirements. We design, develop, and sustain offerings that support warfighter requirements, empower diplomatic missions, and advance exploration from the ocean floor to outer space.

Core StrengthsOur successful performance is based on our core strengths:

• Enduring Customer Relationships and Mission-Orientation – We have strong and long-lasting relationships with our customers. In recent surveys on culture and engagement, our employees confirmed their affinity for our customers and dedication to their missions.

• Full Life-Cycle Offerings – With the breadth of our service offerings, we are able to meet customers’ needs across their mission life cycles for technical, engineering, and enterprise IT services.

• Significant Scale and Diversified Contract Base – With about $4.1 billion in revenue in fiscal year 2014, we are one of the largest pure play technical service providers to the U.S. government. Our size enables us to serve as the prime systems integrator on large, complex programs and allocate resources toward further developing and expanding our repeatable, proven solutions.

• Technical Experts Led by Experienced Management – The quality, training, and knowledge of our employees are important competitive assets. Our skilled workforce ranges from entry-level technicians to expert-level professionals.

• Repeatable Methodologies and Certified Processes – Our technical excellence is driven by our proven, disciplined processes for management, engineering, and technical support and services.

San Diego Metro

CharlestonMetro

Washington, DCMetro

HuntsvilleMetro


LOCATIONS

SAIC is headquartered in McLean, Virginia, just outside Washington, D.C.In total, we have employees at customer sites and/or SAIC offices in 40 states, the District of Columbia, and Guam, a U.S. territory. SAIC employs more than 13,000 people, of whom the majority work in the Washington, D.C., metropolitan area; San Diego, California; Huntsville, Alabama; and Charleston, South Carolina. Nearly two-thirds of SAIC employees work at customer sites, including U.S. government locations and military bases all over the world.

SAIC Locations in the United States

Federal & Civilian25%

Army/ Air Force30%

Strategic Growth Markets3%

Navy/ Marine Corps24%

DoD Agencies & Commands18%

$4.1BFY 2014 Revenue By Customer Mix


CORPORATE STRUCTURE

The Next Generation of SAIC is HereAlthough SAIC is a new company, we carry on our former parent’s long history of building enduring customer relationships and successfully delivering mission-oriented services. We have significant scale and a diversified contract base in our sector, with about $4.1 billion in annual revenues.


CORPORATE STRUCTURE (continued)

Mission-Oriented ServicesAs a leading technology integrator, we provide a variety of mission-oriented services that have a major impact on national and global security:

• Enabling coalition operations through secure, joint, theater-level communications and enterprise networks globally

• Enabling our armed forces through weapon systems engineering, force protection, and training

• Integrating technology for the armed services’ air, land, sea, space, and cyber systems and vehicles

• Extending the life of current mission critical assets via hardware integration, modernization, and sustainment support

• Enabling eDiplomacy by connecting U.S. Department of State embassies, consulates, and diplomatic missions worldwide

• Ensuring equipment, weapons, and supplies are available for military installations and forward-deployed units

• Maintaining military force readiness and assessing future concepts for military engagement

• Advancing space exploration by connecting scientists around the globe

• Providing cybersecurity services that protect and defend information systems by ensuring availability, integrity, authentication, and confidentiality

Federal & Civilian

Strategic Growth Markets

DoD Agencies & Commands

Army/ Air Force

Navy/ Marine Corps

Technical & Engineering Services

Enterprise IT Services

CUSTOMER GROUPSMission & SETA

Hardware Engineering & Systems Integration

Training & Simulation

Logistics & Supply Chain

Network Integration

Software Design, Development & Integration

IT Managed Services

Cyber, Cloud & Data Science

SERVICES & SOLUTIONS

Operating Model to Drive Growth


Our employees bring innovation and proven performanceSAIC employs approximately 13,000 employees worldwide. Our best-value services, capabilities, scientific resourcefulness, and sheer passion for problem-solving allow us to continually exceed expectations.

We believe in doing what is right and in treating people right—always. We believe in fostering a culture that encourages achievement, satisfaction, collaboration, and meaningful contribution to the world at large. In recent surveys, employees confirmed that they find meaning in the work we do to support our customers’ missions and that they feel valued and supported by their supervisors.

A Diverse WorkforceDiversity and inclusion drive innovation and employee engagement and create a competitive advantage in the marketplace. We seek to attract a highly skilled and motivated workforce. Differences in thoughts, styles, backgrounds, and opinions are valued at SAIC.

Our commitment to diversity and inclusion shapes how we view:

• Talent, both internally and externally, to create a diverse and engaged workforce.

• SAIC core values and how they link to our leadership and cultural competencies to provide added value to our customers, employees, and other stakeholders.

SAIC has launched an effort to hire 250 new college graduates, the largest hiring initiative in our history, recruiting on more than a dozen campuses.

OUR PEOPLE

2014 SAIC CORPORATE RESPONSIBILITY REPORT


EMPLOYEE DEMOGRAPHICS

SAIC tracks and reports details and trends related to headcount, education levels, gender, ethnicity, tenure, and other workforce demographics.

MISSION & SETA

19%

HARDWARE INTEGRATION

12%

TRAINING & SIMULATION

9% LOGISTICS & SUPPLY CHAIN

10%

NETWORK INTEGRATION

6%

SOFTWARE INTEGRATION

16%

IT MANAGED SERVICES

22%

CYBER, CLOUD & DATA SCIENCE

6%

~ 13,000 EMPLOYEES

Distributed Employee Base

WASHINGTON, D.C., METRO

22%

HUNTSVILLE, AL

17%

CHARLESTON, SC

9%CRANE, IN

5%

OTHER METROS

39%

SAN DIEGO, CA

8%

Locations of SAIC Employees

SAIC SITE

32%

CUSTOMER SITE

68%

SAIC Employees by SiteSAIC Protected Veterans

YES

24% NO

76%


VETERAN AND WOUNDED WARRIOR HIRING

Proving the company’s commitment to veterans, wounded warriors, and their familiesSAIC is committed to veterans, and we have long sought to hire them for their leadership abilities, strategic and tactical effectiveness, and affinity with the company’s large military customer base. About 75 percent of our business serves military customers, and we believe veterans have the skills to help these customers accomplish their missions.

SAIC’s Military Alliance Group (MAG) serves as an advocacy and resource group for veterans within our company as well as their families. In 2014, SAIC expects 25 percent of all new hires to be veterans. We have several channels and strategic initiatives to help identify qualified veteran candidates including:

• Providing flexibility for veterans to self-identify throughout the recruitment process, including expanding the veteran definition beyond protected veterans as defined by the U.S. Department of Labor.

• Participating in veteran-focused job fairs and other hiring initiatives.

• Posting SAIC job opportunities on more than 40 national and local veteran-specific career sites and job boards.

• Partnering with the Northern Virginia Technology Council Veterans Employment Initiative to provide mentorship, networking, and job opportunities for veterans.

Additionally, SAIC is working to launch a dedicated military/veteran career site that will include a military skills translator, which will enable veterans to identify SAIC job opportunities that are aligned to their current/previous job codes and responsibilities.

SAIC is nationally recognized as a veteran-friendly organization and was ranked second in the United States on the list of “Happiest Companies” for military veterans in 2013.

SAIC has been recognized for:

• 2014 Virginia Values Veterans (V3) Bronze Level Certified

• 2014 Most Valuable Employers (MVE) for Military - CivilianJobs.com

• 2014 GI Jobs Top Military Friendly Employer – GI Jobs Magazine


VETERAN AND WOUNDED WARRIOR HIRING (continued)

Providing Job Opportunities to Wounded Warriors Wounded warriors have overcome challenges on and off the battlefield, and SAIC recognizes and values the skills and experience that overcoming difficulties engenders. Our Wounded Warrior Hiring initiative turns outreach into action and ultimately creates more job opportunities for those who were wounded in service to our nation.

SAIC continuously collaborates with our customers to minimize barriers and maximize career opportunities for wounded warriors. We are always mapping open positions to the knowledge, interests, and goals of wounded warriors who have transitioned out of the armed forces.

“SAIC has a strong veteran employee value proposition including being nationally recognized as a veteran-friendly organization. In 2014, SAIC expects 25 percent of all new hires to be veteran hires.”Michelle O’Hara Vice President, Staffing & Recruiting, SAIC


EMPLOYEE RESOURCE GROUPS

Fostering collaboration and connectionsSAIC’s employee resource groups (ERGs) are tied to our core values and promote employee engagement and collaboration. ERGs promote peer networking, professional development, and personal growth aligned to company objectives. These corporate-sponsored, employee-managed groups foster collaboration and connections by leveraging the diversity of SAIC to drive innovation and other positive changes that are critical to our success.

SAIC currently has two active ERGs: the Military Alliance Group and the Women’s Network. ERGs are open to all full- and part-time employees. Each group is provided mentorship, support, and guidance from a volunteer executive leader sponsor. The focus of SAIC ERGs is on foundational activities that reflect enterprise-wide goals and objectives: restructuring, recruitment, and strategic realignment.

RestructuringSAIC ERGs have been restructured for better alignment with regional employee concentrations including some of our largest concentration of employees in Huntsville, Alabama, and the Washington D.C., metropolitan area. The regional model streamlines governance, increases leadership opportunities, and expands the reach and impact of employee engagement across many different constituencies.

RecruitmentEach ERG is responsible for recruiting and engaging potential members from among the SAIC employee base. Ongoing communications and recruitment efforts led by current ERG members are a priority. Additionally, changes in established communication channels, such as the introduction of the collaborative intranet tool, create new opportunities for ERG awareness, messaging, and networking.

Strategic RealignmentERG strategic goals and objectives were realigned to optimize success of the current SAIC operating model and to build relationships and expand employee networks across organizational boundaries. Repositioning ERG support for SAIC’s Corporate Citizenship program has been an important driver as employees seek ways to optimize investments and enable collaboration across the enterprise’s engagement initiatives. Increased collaboration throughout the enterprise also creates potential advancement opportunities by broadening personal exposure and visibility to one another as well as company capabilities.


EMPLOYEE RESOURCE GROUPS (continued)

Case Study: Women in Technology SponsorshipThrough SAIC’s Community Relations program within SAIC’s Corporate Citizenship initiative, SAIC’s Women’s Network works closely to support the Women In Technology (WIT) organization. The ERG’s support of WIT engaged employees in an event that targeted middle and high school girls interested in pursuing careers in science, math, and related subjects. WIT’s “Sharing Our Success” event was held in the spring at the conference center at SAIC headquarters in McLean, Virginia.

The program was sponsored by SAIC and the Girls in Technology (GIT) committee of the local WIT chapter. SAIC also provided a panelist for the event, and a variety of interactive technology demonstrations were on display.

In May, SAIC employees joined The Mission Continues to refurbish Charles Hart Middle School in Washington, D.C. Volunteers painted all of the school’s halls, built bookshelves, and planted gardens.

“I wanted to thank you for all you and your team at SAIC did to make this a super weekend. We are very grateful for your support – and your enthusiasm!”

Spencer Kympton President of The Mission Continues


GOVERNANCE AND ETHICS

A strong ethical culture has been the cornerstone of SAIC’s business conduct since 1969, when its former parent company was founded. As a new company, today’s SAIC continues to uphold this culture by integrating high ethical standards into everyday business. We believe that the manner in which we conduct business is as important as the results we achieve.

Our values-based Ethics program is designed to promote an organizational culture that encourages ethical conduct that goes beyond a basic commitment to compliance with the law. The program exceeds the minimum requirements established in the Federal Sentencing Guidelines and Federal Acquisition Regulation, and is designed to create a deep and sustaining dedication to ethics and compliance throughout SAIC.

Ethical leadership starts at the top. Chief Executive Officer (CEO) Tony Moraco is serious about maintaining a strong ethical culture, and he expects every employee to contribute.

Chief Ethics Officer Laura Kennedy reports directly to the CEO as well as the chairman of the Board of Directors’ Ethics and Corporate Responsibility Committee (ECRC). Additionally, ethics advocacy and oversight are embedded within the company at three levels: the board level, the executive management level, and the employee level.

At the board level, the ECRC meets quarterly to review ethics case trends, procedures, training, conflicts of interest, political and strategic philanthropic contributions, and other issues. At the management level, Kennedy, who is part of the executive leadership team, meets quarterly with the team to monitor and discuss case trends, disciplinary actions, training, and new

SAIC’s strong ethical culture starts at the top


developments. At the employee level is the Ethics Network, which consists of representatives from each of our Customer Groups and Service Lines. The group meets monthly to share best practices in communicating ethics messages and discuss ethics issues at their locations as well as new developments and initiatives.

Policies and InstructionsEvery year, SAIC employees and members of our Board Directors certify they have read, understand, and will abide by our Code of Conduct, which defines our high standards for ethical behavior.

As a new company, we streamlined and consolidated our policies, instructions, and processes to ensure thorough implementation of all legal and regulatory requirements. This effort clarified the expectations for employees.

SAIC Policy 1 and the underlying Instruction 1 address business ethics and operating standards. Specifically, they establish the standards for ethics, gifts, conflicts of interests, use of company resources, procurement integrity, the Foreign Corrupt Practices Act, insider trading, data privacy and protection, and export control.

TrainingAll employees are required to complete ethics awareness training biennially. This training, which was updated in 2014, reinforces our values, describes our standards in key risk areas, and explains how employees can report misconduct when they see it.

Our ethics awareness training is supplemented by in-depth compliance training in our key risk areas for employees with job responsibilities that require specific knowledge of particular regulations.

Engagement and CommunicationsSAIC’s engagement and communications program is designed to help supervisors and managers establish a culture of ethics within their organizations.

Every month, the ethics office publishes “Ethics Matters,” a series of ethical scenarios based on actual SAIC situations. These are accompanied by supporting educational materials that are specifically

GOVERNANCE AND ETHICS (continued)

http://investors.saic.com/code-of-conduct


http://www.saic.com/about/saic/values-and-credos/



designed for managers to use in discussions with their teams. The Ethics Network helps develop the content and assists in promoting the messages.

An internal website has been created that is dedicated to managers. Part of the overall Ethics website, the Manager’s Ethics Toolkit, contains the monthly ethics topics as well as other resources and information to help managers navigate ethical challenges.

Survey and Program AssessmentIn 2014, SAIC conducted an enterprisewide survey, administered by the Ethics Resource Center, to measure the strength of our ethical culture. Results were evaluated against our defense industry peers (Defense Industry Benchmark), companies across multiple industries (National Business Ethics Survey benchmark), and our own historical data. The survey revealed that our ethical culture is significantly stronger than those represented by both benchmarks. Results established that our employees are committed to ethics and believe their leaders, managers, and peers are similarly committed. In fact, the results from the survey indicated that our ethical culture is the strongest it has been in the last 10 years. We will continue this momentum and use the survey results to further strengthen an already high-performing organization of integrity.

In August, SAIC evaluated its ethics program using the Corporate Executive Board’s objective assessment tool that measured 38 program elements and benchmarked them against 40 defense contractors. The results established that SAIC has a “world-class” program at a maturity level well above the defense industry benchmark.

InvestigationsSAIC is dedicated to timely investigations of reports of misconduct and provides multiple channels through which employees can seek assistance or disclose ethical or compliance concerns, including an anonymous ethics hotline.


http://www.ethics.org/


Every ethics case is taken seriously and investigated thoroughly and independently. A team of trained and impartial investigators follow a rigorous process to uncover wrongdoing and take appropriate action whenever a case is found to be valid.

To ensure clarity, consistency, and objectivity in all case investigations, SAIC is restructuring the process to provide a single committee, which will include functional as well as line managers, to determine case validity and disciplinary actions.

The protection of internal and external reporting sources is taken very seriously, with a commitment to protecting sources from any form of retaliation.

Industry LeadershipOur commitment to ethics goes beyond SAIC. In 2014, CEO Moraco and Chief Ethics Officer Kennedy each accepted a two-year commitment to lead the Defense Industry Initiative on Business Ethics and Conduct (DII).

DII’s mission is to share best practices and create the strongest possible ethical culture throughout the defense industry. Established in the 1980s, 77 of the top U.S. defense and security companies are now DII members. SAIC is honored to serve in these key leadership positions.


http://dii.org/

http://dii.org/


CORPORATE GOVERNANCE

The SAIC Board governs and provides oversight Strong corporate governance provides transparency, visibility, and accountability to our employees, stockholders, customers, and other stakeholders regarding the company’s financial and business performance. Strong corporate governance also helps ensure that the company maintains its positive reputation for operating with the highest ethical principles, complying with our legal obligations, and being a valued member of the communities in which we do business. For these reasons, our board is committed to maintaining and strengthening its already strong corporate governance practices.

To help facilitate strong governance and reinforce the company’s commitment to ethics and compliance, the Board of Directors has adopted Corporate Governance Guidelines and a Code of Conduct. These documents—along with the company’s certificate of incorporation, bylaws, committee charters, and other key governance practices and policies—provide the framework for the company’s corporate governance. These documents can be accessed through the Investor Relations page of SAIC’s website.

Because the Board recognizes that good governance is an ongoing and active endeavor, the Corporate Governance Guidelines are subject to annual review to determine whether they continue to promote the best interests of the company and its stockholders and comply with all applicable laws, regulations, and stock exchange requirements.

In addition to all employees being subject to SAIC’s Code of Conduct, our CEO and senior financial officer are also subject to the Code of Ethics for Principal Executive Officer and Senior Financial Officers, which contains additional policy guidelines and procedures relating to legal and ethical standards for conducting our business.

Our directors also are required to comply with a Code of Business Conduct of the Board of Directors intended to describe areas of ethical risk, provide guidance to directors, and help foster a culture of honesty and accountability. This code addresses areas of professional conduct relating to service on SAIC’s Board, including conflicts of interest, protection of confidential information, fair dealing, and compliance with all applicable laws and regulations.

Chief Ethics Officer Laura Kennedy and June Wu prepare care packages to send to service members through USO of Metropolitan Washington-Baltimore.

http://investors.saic.com/home

http://www.saic.com

http://investors.saic.com/corporate-governance-documents




Communicating with the BoardAny interested party may communicate with the chair of the Board and the chairs of our Audit, Ethics and Corporate Responsibility, Human Resources and Compensation, and Nominating and Corporation Governance Committees on board-related issues by sending an e-mail to:

• [email protected]




You may also write to them or to any other director, the independent directors as a group, or the Board of Directors generally at the following address:

SAIC

Attention: Corporate Secretary

1710 SAIC Drive

McLean, VA 22102

Relevant communications will be forwarded to the recipients noted in the communication. Communications sent to the Board of Directors or the independent directors as a group will be forwarded to the chair of the Board.

CORPORATE GOVERNANCE (continued)

mailto:boardchair%40saic.com?subject=

mailto:auditchair%40saic.com?subject=

mailto:compensationchair%40saic.com?subject=

mailto:ethicschair%40saic.com?subject=

Through a monetary donation to Operation Homefront’s Home for the Holidays program, SAIC funded for 75 service members to fly home to be with their families for Mother’s Day, Father’s Day, Memorial Day, and Independence Day. Army Major Brian Moore, right, who has been a “geo-bachelor” for seven years, was greeted at the Huntsville airport by his family and SAIC employees.


CORPORATE CITIZENSHIP

In 2013, SAIC launched a new Corporate Citizenship initiative, which focuses on customer affinity, employee engagement through volunteerism, recruitment and retention, and goodwill. Our Citizenship program consists of three elements: strategic philanthropy, community relations, and corporate responsibility.

Through our Strategic Philanthropy efforts, SAIC and its employees contribute time, talent, and/or funding to organizations that have a national presence and align to our strategy and our customers’ missions. SAIC’s Community Relations efforts are focused at the local level, within the communities where our employees and customers live and work. Corporate Responsibility demonstrates our commitment to environmental, sustainability, and outreach efforts.

Many of our efforts demonstrate our ongoing support for service members and their families.

SAIC’s Citizenship program is defined by these pillars:

• Support employee recruitment, retention, and morale

• Expand and enhance SAIC brand through employee volunteers

• Increase value for shareholders

• Provide SAIC better marketing opportunities within local office locations/communities

• Support veterans, wounded warriors, our military, and first responders

• Increase brand awareness with our customers and industry

• Have SAIC recognized as a leader in corporate citizenship

Program benefits our customers, communities, and employees

“Nearly 25 percent of SAIC's workforce are [protected] veterans who have served our nation. As a company that works hand-in-hand with our armed services, it's our honor to give back.”CEO Tony Moraco The Wall Street Journal

Corporate Citizenship Video

http://vimeo.com/saiccommunications/review/106143174/e485b3e59f

http://vimeo.com/saiccommunications/review/106143174/e485b3e59f

https://vimeo.com/saiccommunications/review/107759301/cdf6bdd10c

https://vimeo.com/saiccommunications/review/107759301/cdf6bdd10c


CORPORATE CITIZENSHIP (continued)

Strategic PhilanthropyStrategic Philanthropy has an enterprise-level approach. Under this effort, SAIC donates funds, products, and time to national nonprofit organizations aligned with our customer base and SAIC strategy. The importance of the missions of these organizations is proven through the roles SAIC executives fulfill on the boards of a number of SAIC’s philanthropic partners as well as the countless volunteer hours of our employees. During 2013 – 2014, SAIC supported the following strategic philanthropies:

• Operation Homefront*

• Tragedy Assistance Program for Survivors (TAPS)*

• The Mission Continues

• Feeding America

• 2015 Fairfax World Police and Fire Games*

*Board position

Community RelationsCommunity Relations focuses on nonprofit organizations at the local level in the communities where our customers and employees live and work.

Employees continue to dedicate countless hours of their time to organizations that support our military, veterans, and their families as well as educational and other local organizations.

Examples of our Community Relations efforts:

• USO of Metropolitan Washington-Baltimore (USO-Metro)

• Luke’s Wings – Bethesda, Maryland

• Wave Warriors Surf Camp – Virginia Beach, Virginia

• U.S. Space & Rocket Center – Huntsville, Alabama

• Toys for Tots®

• San Diego Fleet Week

“I decided to volunteer [with TAPS] because I had always wanted a way to continue giving for my friends and relatives who lost their lives. … It has not only given me a chance to help others, but has also helped me through my own grief and hard times.”Brenda Parent Software test engineer and retired Marine, Stafford, Virginia

http://www.operationhomefront.net/

http://www.taps.org/

https://www.missioncontinues.org/

http://feedingamerica.org/

http://fairfax2015.com/


CORPORATE CITIZENSHIP (continued)

Employee VolunteerismSAIC is in the process of procuring software tools for employee volunteerism and tracking. The goal is to obtain a cost-efficient and employee-friendly tool to connect and track volunteer efforts.

Also to promote volunteerism within the company, SAIC has launched the Citizen Initiative as one of SAIC’s official strategic charitable programs. This is not a program where SAIC provides nonprofit organizations with financial support; this is our company’s opportunity to give back to the communities where we live and work by supporting the volunteer initiatives of SAIC employees.

In addition to SAIC’s financial donation, employees “went

orange” in honor of Feeding America, fundraising the

equivalent of 181,000 meals through an online challenge

in September 2014 to honor Hunger Action Month.

“When I volunteer, I believe I am at my best, and have such an awesome feeling helping others and seeing the smiles on their faces.”Pina Arrington Administrative Assistant, Charleston, South Carolina


STRATEGIC PHILANTHROPY

Philanthropy is the center of SAIC’s core valuesSAIC is a company with a social conscience, and our ongoing efforts contribute to our tradition of giving. In the past year, the fruits of our philanthropic efforts have helped reunite 75 service members with their families through Operation Homefront’s Home for the Holidays program, refurbish an inner city Washington, D.C., public school alongside the veterans of The Mission Continues 2014 Bravo Class, and produce a 20th Anniversary video recognizing the two decades of contributions by the Tragedy Assistance Program for Survivors (TAPS).

These and other strategic philanthropic efforts contribute time, talent, and/or funding to organizations with national presence that align with our strategy as well as our customers’ missions.

We also believe that we need to serve our neighbors, and we do this through enterprise-wide donations of funds and food in support of Feeding America. Recognizing that hunger is a national epidemic, and in celebration of our new company launch, employees across the country joined to help fill the shelves of local food pantries. In September 2014, SAIC employees donated the equivalent of more than 181,000 meals through Feeding America’s Give A Meal Team Challenge - an online food drive to help alleviate food insecurities among Americans across the nation. Many of the beneficiaries of Feeding America are military families.

SAIC is sponsoring the 2015 World Police and Fire Games. This international event, which brings together first responders from all over the world for athletic competitions, will take place in the back yard of SAIC’s Northern Virginia headquarters next summer. SAIC recognizes the value and importance of honoring and supporting these courageous individuals through our sponsorship of this event and providing volunteers.

With our renewed focus, we continue to roll up our sleeves and provide our SAIC time, talent, and funding to the missions of these incredible organizations to make our world a better place.

TAPS Video

Chief Information Officer Bob Fecteau

greets members of The Mission Continues

Bravo Class during the refurbishing of a

Washington, D.C., school.

http://www.operationhomefront.net

http://www.taps.org



SAIC sponsored Luke’s Wings’ Inaugural Heroes Walk to Fly event, providing travel for caregivers of wounded service members.


COMMUNITY RELATIONS

Making a difference, one community at a timeWherever they live or work, SAIC employees are volunteering and making positive impacts within our communities.

This year, SAIC employee volunteers helped wounded warriors learn to surf and fish. We helped to improve science literacy through countless hours of STEM volunteerism.

In the coming year, SAIC hopes to increase employee volunteerism and further diversify our Community Relations efforts. We recognize that to become a leader in corporate citizenship, we must have a stronger and more organized volunteer program. SAIC plans to implement new software to bring our employee volunteers together to collaborate and support each other, as well as track their volunteer hours.

“Loving what you do for SAIC is a testament to the character of the organization, volunteering to share your joy and experience is a testament to the character of the employees!!!”Issac Horton, Recruiting/retention specialist, Fort Knox, Kentucky

SAIC employees served lunch to service members at Fort Belvoir, Virginia, in conjunction with USO of Metropolitan Washington-Baltimore.

“Our City hosts one of the largest populations of active duty and retired military in the country. As with all Americans, it is an honor to be able to give tribute to the men and women who have so valiantly served our nation. But for us it is even more personal because these soldiers are also our neighbors. It is through this lens that our entire city views the incredible work done through the Wave Warriors Surf Camp. This low-key affair selflessly and effectively shows these veterans how important they are to us. It also creates a point in time where the families of these wounded heroes can help redefine their new normal. It is truly inspiring to see a young girl smile as her disabled father stands up on a wave.”

John Uhrin Virginia Beach Councilman

SAIC sponsored the Wave Warriors Surf Camp in Virginia Beach in June. More than 70 injured service members enjoyed this therapeutic weekend at the beach.


THE ENVIRONMENT

An Environmental Sustainability Working Group was formed to reassess the company’s business performance with the mission to guide our efforts to address regulatory and compliance risks while enhancing economic, environmental, and social development benefits. The group, comprising senior representatives from key functional areas across the enterprise, sets the priorities for our environmental sustainability program. The group reports directly to executive management and utilizes strategic business review processes.

The Environmental Sustainability Working Group’s focus areas include:

• Greenhouse Gases (GHGs) – assessing GHG goal setting and past performance, including benefits, costs, and feasibility of tracking and reporting emissions

• Energy – evaluating energy savings opportunities and implementing sustainability training

• Waste – improving recycling programs and associated information collection processes

• Supply Chain – identifying opportunities to engage vendors in providing sustainable solutions and researching best practices in green leasing

• Corporate Responsibility – aligning ourselves with customer and community initiatives

• Regulatory/Contractual Requirements – understanding the needs and applicability of regulatory and contractual drivers

As primarily a services-oriented company, the majority of SAIC’s 2.5 million square feet of real estate is commercial office space. SAIC also occupies laboratory, warehouse, and data center space that contributes to the company’s environmental footprint.

Our focus on environmental stewardship has never been stronger


THE ENVIRONMENT (continued)

Greenhouse Gas EmissionsSAIC recognizes greenhouse gas (GHG) emissions as an important metric in gauging an organization’s overall environmental impact and mitigation progress. Accordingly, SAIC, as part of our former corporate entity, had committed to reducing greenhouse gas emissions. As of the end of 2013, that commitment had resulted in more than a 20 percent reduction in overall GHG emissions over a 2010 baseline.

Strategies to reduce GHG emissions include:

• Utilizing SAIC’s real estate effectively by disposing of underperforming or underutilized assets; improving the density of existing space; and implementing alternative workplace strategies.

• Reducing energy consumption across SAIC by identifying and implementing energy efficiency projects; upgrading to more energy-efficient equipment (e.g., thin clients and blade servers) and cloud-based IT service delivery, which enables greater workplace flexibility; and educating employees on how to improve workplace behavior to reduce wasteful energy consumption.

Flex WorkSAIC promotes flexible work environments to improve employee work-life balance, promote a high-performance culture, and help reduce the company’s environmental impact. When leasing new or renovating existing space, SAIC’s managers are encouraged to promote increased telework and shared workspace options for employees. This effort aims to reduce employee commuting stress and emissions, while also reducing the company’s real estate and environmental impact footprints.


THE ENVIRONMENT (continued)

Looking forwardSAIC continues to look for opportunities in our facilities operations, supply chains, and strategic partnerships that provide a demonstrable reduction of our impact on the environment while assisting us in the delivery of our technical services and solutions.

We are committed to reducing our environmental impact and have the right team in place to deliver.

The business imperative for environmental stewardship has never been clearer. At SAIC, we are working to align our environmental goals with requirements from both federal government and commercial customers.


EXCELLENCE IN ENVIRONMENTAL, HEALTH AND SAFETY

We work to protect the health and safety of our employees, customers, communities, and the environmentSAIC’S comprehensive Environmental, Health and Safety (EH&S) program is designed to help identify and control EH&S hazards and environmental impacts related to our business activities. The program is supported by professionally credentialed staff members, various management systems, a written corporate EH&S program manual, and other toolsets.

EH&S Awards and AchievementsAs in the past several years, SAIC’s EH&S performance was recognized in 2013 with awards from NASA’s Johnson Space Center (JSC) and the Occupational Safety and Health Administration (OSHA).

For our excellent health and safety performance on the JSC Safety and Mission Assurance Engineering Contract, we were awarded the JSC Contractor Safety & Health Forum’s Safety and Health Excellence Award of “SuperNova,” as well as the OSHA Region VI Star Among Stars “Star of Excellence” award. Both awards are based on a competitive assessment of safety practices, metrics, and innovations across contractors at JSC.

SAIC received no health, safety, or environmental-related citations or violations in 2013.

Injury and Illness RatesThe table at right shows rates of injury and illness for our U.S. domestic operations in 2013 (since the beginning of operations as new SAIC, effective Sept. 27, 2013). Although our performance is favorable, we continue to look for ways to improve this key metric and the work environments in which our employees operate. In 2014, we have brought greater management focus to this important aspect of our business, recognizing the significant impact injury and illness can have on our employee base and our overall operational performance.

SAIC’s EH&S management system addresses:

• Employee health and safety

• Occupational injury and illness prevention

• A culture that promotes improvement in employee safety and environmental protection

• Environmental sustainability

• Statutory and regulatory compliance

Rates2013

Post Company Split

Injury Cases (OSHA 300 Col. M1) 0.4

Illness Cases (Occupational Diseases) (OSHA 300 Col M2-M6)

0.1

Days Away From Work Cases (Lost Days) (OSHA 300 Col. H) 0.2

Fatalities (OSHA 300 Col. G) 0

15-0

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