Overview of SAIC’s Small Business Program Babak Nouri

1. Overview of SAIC’s Small Business ProgramBabak Nouri

3. Our Customers • Others • State Governments • Local Governments • Foreign Governments • Commercial • Oil and Gas • Utilities and Power • Telecommunications • Pharmaceutical & Life Sciences • Healthcare • Manufacturing • Federal • Department of Defense • GSA • Department of Homeland Security • Intelligence Agencies – NSA, CIA, DIA and Others • HHS • Department of Energy • NASA • Department of Transportation • Department of Justice • Department of Treasury • Other Federal Agencies

4. SAIC’s Philosophy – “Small Business is Good Business” • Small Businesses provide tremendous value to our customers • Small Businesses bring new ideas, innovations, capabilities and diversity to our customers and SAIC • SAIC is committed to effectively working with and using Small Businesses • Small business is good business and is important to SAIC’s management

5. SAIC is Organized to Support Small Business • A Corporate Oversight Committee that includes SAIC executives and members of SAIC’s Board of Directors monitors overall performance of the Small Business Program • SAIC’s Small Business Program Office oversees the following: • Assist our small business partners in identifying and developing new business opportunities • Provide marketing and bid assistance • Monitor and manage compliance with small business participation plans • Conduct small business assessments • Measure and report performance • Small Business Advocates are assigned to our line organizations

6. SAIC is Committed to Small Businesses • SAIC has made a significant fiscal commitment to its small business programs • Personnel resources • Stock options • Bid & proposal overhead pool • Mentoring • Internal Training • Outreach and sponsorship • SAIC has an industry unique Small Business incentives program • Use of stock options to incentivize business units • SAIC issues annual awards for small business performance • Small Business of the Year Award • Annual Small Business Utilization Achievement Award

7. SAIC’s Small Business Past Performance SUBCONTRACTED DOLLARS TO SMALL BUSINESSES

8. Procurement Environment – One Prime’s View • Strong Emphasis on Government wide Goals • Multiple Award/IDIQ contracts • Shift towards emphasis for subcontracting activity to be based on contract value instead of dollars subcontracted • More performance-based contracts • Emphasis is on Performance with respect to small business subcontracting • Past Performance data will be available for source selection • Performance is used to calculate award fees • Increased Number of Small Business Set Asides

9. Teaming – What Does SAIC Look For • Skills – What is it that you do best • Niche Technical and Functional Expertise • Employees with Certified/Desired Skills • Skills that complement SAIC’s capabilities as a whole and on specific opportunities • Past Performance • Subcontracting performance on related efforts • Prime contracting experience • “Marketability” – Customer Knowledge • Customer Knowledge – Do you know them and the “real environment”? Do they know you? • Active Teaming = Good Teaming • Type of Business – SB/SDB/WOB/HUBZone/SDVOB/VOB • Strong Financial Capabilities – essential in exploring set-aside opportunities

10. The Federal Marketplace – Where is SAIC playing • Department of Defense Transformation • C2, ISR, and greater networked capabilities • Net-Centric warfare and battlespace awareness. • Force management, protection and deployment strategies • Logistics, Training, and Testing and Experimentation • Intelligence • Interdependence among commands, services, and agencies (including civil agencies) on intelligence matters require IT knowledge • Human intelligence • Analysis, operations and support activities • Homeland Security • WMD Threats – Chemical, Biological Radiological, Nuclear (CBRN) assessments and countermeasures • Information Security • The Homeland – First Responders, Border Protection/Inspection, Infrastructure Protection • IT - robotics, software integration, wireless expertise. • Increased outsourcing type of contracts particularly in the areas of IT, logistics and administrative functions

11. The Federal Marketplace – The Small Business Facts • Increasing market segment for both prime and subcontracting opportunities • $65.5B in Prime contract awards for GFY 03 – a 11% increase over GFY 02 • $34.4B in subcontracts were awarded for GFY 02, which projects to near • At current rates it is easy to anticipate that over $100B will be awarded in GFY 05 • GFY 2005 Forecast * • Nearly 2,700 set-aside opportunities for SB, SDB, and 8(a) alone – excludes HUBZone and Service Disabled possibilities • Over $130B in total value • Crowded Battlefield * • 23M small businesses in US • Over 266,000 small business in IT alone • 88% employ less than 20 individuals Sources -* SBA

12. Creating discriminators that appeal to all • Hiring of cleared people – invest in obtaining/retaining clearances • High profile projects will often include certification requirements – seek to obtain SEI-CMMI or ISO certifications. • Enhance knowledge of federal acquisition environment • Understand the lifecycle of an acquisition • Understand the diversity of contracting vehicles • “Politics” – Budget process, personnel changes, • PERFORM, PERFORM, PERFORM