UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): June 29, 2011

 

 

SAIC, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

001-33072		20-3562868
(Commission File Number)		(I.R.S. Employer Identification No.)

1710 SAIC Drive, McLean, Virginia 22102

(Address of Principal Executive Offices) (Zip Code)

(703) 676-4300

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, If Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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FORM 8-K

 

Item 7.01

Regulation FD Disclosure

Timekeeping Contract with City of New York

The Company previously described in its quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2011, a systems development and implementation contract relating to an automated time and attendance and workforce management system (CityTime) for certain agencies of the City of New York. On June 29, 2011, the Company received a letter from Mayor Bloomberg which requested that the Company reimburse the city for the approximately $600 million paid by the city to the Company for CityTime and the cost of investigating and remediating the CityTime program. The Company intends to work with the City of New York towards a mutually acceptable resolution of this matter at the appropriate time. The letter from Mayor Bloomberg is attached as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit 99.1		Letter dated June 29, 2011 from the Mayor of the City of New York to Walter P. Havenstein

 

2

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

(Registrant)				SAIC, INC.
Date: July 1, 2011				By:		/s/ Vincent A. Maffeo
								Vincent A. Maffeo
						Its:		Executive Vice President and
								General Counsel

 

3

Exhibit 99.1

THE CITY OF NEW YORK

OFFICE OF THE MAYOR

NEW YORK, N.Y. 10007

June 29, 2011

Mr. Walter P. Havenstein

Chief Executive Officer

Science Applications International Corporation

1710 SAIC Drive

McLean, VA 22102

 

Re:	The CityTime Project

Dear Mr. Havenstein:

Since 2000, Science Applications International Corporation (“SAIC”) has served as the primary contractor to build and implement a uniform automated time-keeping system to be used by the City of New York’s employees to accurately record their attendance and provide a streamlined process for supervisory approvals. The City relied on the integrity of SAIC as one of the nation’s leading technology application companies to execute the CityTime project within a reasonable amount of time and within budget given the system’s size and complexity.

The recent indictment of Gerard Denault, SAIC’s lead Project Manager supervising the CityTime project, and the recent criminal charges filed against and guilty plea of Carl Bell, SAIC’s Chief Systems Engineer who developed the software and oversaw all technical aspects of the project, are extremely troubling and raise questions about SAIC’s corporate responsibility and internal controls to prevent and combat fraud. Denault and Bell, along with Technodyne and its principals retained as a “sole source” subcontractor by SAIC and six other defendants, are charged with hiring consultants not needed for the project at inflated rates in order to execute an elaborate kickback scheme to defraud the City of New York of millions of dollars.

The scheme to defraud was so pervasive that the United States Attorney for the Southern District of New York in the superseding indictment recently implicating these two SAIC employees stated that “virtually the entirety of the well over $600 million that the City paid to SAIC on the CityTime project was tainted, directly or indirectly, by fraud.” Equally troubling is that, according to the superseding indictment, SAIC as early as 2005 apparently received a whistleblower complaint regarding possible mismanagement of the project and alleged kickbacks to defendant Denault, SAIC’s lead Project Manager on CityTirne. It is unclear what SAIC did at that time to investigate these serious allegations.

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While we have received a working system that will advance our management ability, in light of the foregoing, because the project was apparently tainted by fraud and kickback schemes, the City must be made whole. I am, therefore, requesting that SAIC reimburse the City for all sums paid to it, approximately $600 million, as well as the cost of investigating and remediating this matter. I am forwarding this correspondence to the United States Attorney so that the City’s position as a victim can be taken into consideration.

 

 

cc:	Preet Bharara

United States Attorney

Southern District of New York