Leidos

{{short description|American technology company}}

{{Undue weight|date=February 2025}}

{{Use mdy dates|date=February 2014}}

{{Infobox company

| name = Leidos Holdings, Inc.

| logo = Leidos logo 2013.svg

| logo_size = 250px

| type = Public

| traded_as = {{unbulleted list|{{NYSE|LDOS}}|S&P 500 component}}

| industry = National security, defense, healthcare, engineering

| founded = {{Unbulleted list||{{Start date and age|1969|6}} in La Jolla, San Diego, California, U.S. (as SAI)|{{Start date and age|2013|9|27}} McLean, Virginia, U.S. (as Leidos)}}

| founder = J. Robert "Bob" Beyster

| predecessor = {{Unbulleted list| Lockheed Martin IS&GS |Science Applications Incorporated (SAI)|Science Applications International Corporation (SAIC)}}

| location = Reston, Virginia, U.S.

| key_people = Thomas Bell (CEO)

| revenue = {{Increase}} {{US$|16.7 billion|link=yes}} (2024)

| operating_income = {{Increase}} {{US$|1.83 billion}} (2024)

| net_income = {{Increase}} {{US$|1.25 billion}} (2024)

| assets = {{nowrap|{{Increase}} US$13.1 billion (2024)}}

| equity = {{nowrap|{{Increase}} US$4.41 billion (2024)}}

| num_employees = 48,000

| num_employees_year = 2024

| homepage = {{URL|leidos.com}}

| footnotes = {{Cite web|url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1336920/000133692025000006/ldos-20250103.htm|title=Leidos Holdings, Inc. 2024 Annual Report (Form 10-K) |date=February 11, 2025 |publisher=U.S. Securities and Exchange Commission}}{{Cite news | last=Aitoro | first=Jill R. | title=What to expect from Leidos and SAIC when they start trading Sept. 30 | url=https://www.bizjournals.com/washington/blog/fedbiz_daily/2013/09/what-to-expect-from-leidos-and-saic.html | work=American City Business Journals | date=September 27, 2013}}{{Cite news | last=Aitoro |first=Jill R. | title=Exclusive: John Jumper explains why the Leidos-SAIC split had to happen | url=https://www.bizjournals.com/washington/blog/fedbiz_daily/2013/09/the-saic-split-is-done-leidos-ceo.html | work=American City Business Journals | date=September 27, 2013}}{{Cite web|title=www.leidos.com|url=http://www.leidos.com|access-date=September 29, 2013}}{{Cite web|title=SAIC, Inc.'s Board of Directors Approves Spin-Off of its Services Business|url=http://investors.leidos.com/phoenix.zhtml?c=193857&p=irol-newsArticle&ID=1853224|date=September 9, 2013|access-date=September 29, 2013}}

}}

Leidos Holdings, Inc. is an American defense, aviation, information technology, and biomedical research company headquartered in Reston, Virginia, that provides scientific, engineering, systems integration, and technical services. Founded as Science Applications International Corporation (SAIC),{{cite web|last=Science Applications International Corporation|title=Fiscal Year 2013 annual report on Form 10-K|url=http://www.saic.com/news/pdf/AnnualReport2013.pdf|access-date=August 9, 2013|archive-url=https://web.archive.org/web/20131002020528/http://www.saic.com/news/pdf/AnnualReport2013.pdf|archive-date=October 2, 2013|url-status=dead}} Leidos merged with Lockheed Martin's IT sector, Information Systems & Global Solutions (Lockheed Martin IS&GS), in August 2016 to create the defense industry’s largest IT services provider. The Leidos-Lockheed Martin merger is one of the biggest transactions thus far in the consolidation of the defense sector. Leidos contracts extensively with the Department of Defense, the Department of Homeland Security, and the Intelligence Community, as well as other U.S. government agencies and select commercial markets.

History

=As SAIC=

File:SAIC Logo.svg

The company was founded by J. Robert "Bob" Beyster in 1969 in the La Jolla neighborhood of San Diego, California, as Science Applications Incorporated (SAI).Dr. J. Robert Beyster with Peter Economy, The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company, John Wiley & Sons (2007) p.xiii{{cite news|last1=Glass|first1=Jon W.|title=SAIC creator's book touts employee ownership|url=http://hamptonroads.com/node/245611|access-date=27 November 2014|agency=The Virginian-Pilot|date=April 3, 2007|quote=Beyster, 82, retired as SAIC's chairman in July 2004. A nuclear physicist by training and a self-described "evangelist" for employee-owned companies, Beyster said he wrote the book to provide entrepreneurs and business executives a model. He wrote it with Peter Economy, an author or co-author of several business books.}} Beyster, a former scientist for the Westinghouse Atomic Power Division{{Cite web|url=https://federalnewsnetwork.com/acquisition/2014/12/saic-leidos-founder-dead-at-90/|title=SAIC, Leidos founder dead at 90|date=December 23, 2014|website=Federal News Network}} and Los Alamos National Laboratory,{{Cite web|url=http://www.sddt.com/news/article.cfm?SourceCode=20141223cza|title=SAIC founder J. Robert Beyster dies at age 90|first=Daily Transcript staff|last=report|date=December 23, 2014|website=The Daily Transcript}} who became the chairman of the Accelerator Physics Department of General Atomics in 1957,{{Cite web |url=https://www.leidos.com/feature/the-solutions-man |title=The Solutions Man |access-date=June 16, 2018 |archive-url=https://web.archive.org/web/20141223221124/https://www.leidos.com/feature/the-solutions-man |archive-date=December 23, 2014 |url-status=dead }} raised the money to start SAI by selling stock he had received from General Atomics, combined with funds raised from the early employees who bought stock in the young enterprise.{{Cite web|url=https://www.sandiegouniontribune.com/lifestyle/people/sdut-beyster-saic-dies-2014dec22-htmlstory.html|title=SAIC founder J. Robert Beyster dies|date=December 23, 2014|website=San Diego Union-Tribune}}

Initially, the company's focus was on projects for the U.S. government related to nuclear power and weapons effects study programs. The company was renamed Science Applications International Corporation (SAIC) as it expanded its operations. Major projects during Beyster's tenure included work on radiation therapy for the Los Alamos National Laboratory; technical support and management assistance to the development of the cruise missile in the 1970s; the cleanups of the Three Mile Island Nuclear Generating Station after its major accident, and of the contaminated community of Love Canal; design and performance evaluation of the Stars & Stripes 87, the winning ship for the 1987 America's Cup; and the design of the first luggage inspection machine to pass new Federal Aviation Administration tests following the terrorist bombing of Pan American flight 103 over Lockerbie, Scotland.{{cite web |title=Our History |url=http://www.leidos.com/about/history |publisher=Leidos |access-date=16 June 2018}}

Contrary to traditional business models, Beyster originally designed SAIC as an employee-owned company. This shared ownership was accompanied by shared responsibility and freedom in business development, and allowed SAIC to attract and retain highly educated and motivated employees that helped the company to grow and diversify. After Beyster's retirement in 2003, SAIC conducted an initial public offering of common stock on October 17, 2006.[http://investors.saic.com/phoenix.zhtml?c=193857&p=irol-newsArticle&ID=918956&highlight= SAIC - News & Media - "SAIC, Inc. Announces Closing of Initial Public Offering"] {{webarchive|url=https://web.archive.org/web/20071009004853/http://investors.saic.com/phoenix.zhtml?c=193857&p=irol-newsArticle&ID=918956&highlight= |date=October 9, 2007 }}. Investors.saic.com. Retrieved on August 17, 2013. The offering of 86,250,000 shares of common stock was priced at $15.00 per share. The underwriters, Bear Stearns and Morgan Stanley, exercised overallotment options, resulting in 11.25 million shares. The IPO raised US$1.245 billion. Even then, employee shares retained a privileged status, having ten times the voting power per share over common stock.{{cite news |last1=Bigelow |first1=Bruce V |title=Long owned by employees, SAIC says it's going public |url=http://legacy.sandiegouniontribune.com/uniontrib/20050902/news_1n2saic.html |access-date=16 June 2018 |work=San Diego Union-Tribune |date=2 September 2005}}

In September 2009 SAIC relocated its corporate headquarters to their existing facilities in Tysons Corner in unincorporated Fairfax County, Virginia, near McLean.[http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/09-24-2009/0005100520&EDATE= "SAIC Moves Corporate Headquarters to McLean, Virginia"] {{webarchive|url=https://web.archive.org/web/20091001154001/http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104 |date=October 1, 2009 }}

In 2012 SAIC was ordered to pay $550 million to the City of New York for overbilling over a period of seven years on the CityTime contract.{{cite news |url= https://www.informationweek.com/it-strategy/saic-pays-$500-million-in-record-settlement-with-nyc/d/d-id/1103390? |title=SAIC Pays $500 Million In Record Settlement With NYC |author=Paul McDougall |work=InformationWeek |date=March 15, 2012 |access-date=September 25, 2013}} In 2014 Gerard Denault, SAIC's CityTime program manager, and his two accomplices within the city's government were sentenced to twenty years in prison for fraud and bribery related to that contract.{{cite news|last=Calder|first=Rich|title=CityTime head, accomplices sentenced to 20 years in prison|url=https://nypost.com/2014/04/29/citytime-head-accomplices-sentenced-to-20-years-in-prison/|access-date=14 May 2014|newspaper=New York Post|date=29 April 2014}}

=As Leidos=

In August 2012, SAIC announced its plans to split into two publicly traded companies.{{cite news|last=Censer|first=Marjorie|title=SAIC to split into two public companies|url=https://www.washingtonpost.com/business/capitalbusiness/saic-to-split-into-two-public-companies/2012/08/30/c880f140-f2e5-11e1-a612-3cfc842a6d89_story.html|access-date=March 4, 2013|newspaper=Washington Post|date=August 30, 2012}}{{cite news|title=SAIC, Inc. (SAI) to Spin Off Services Business|url=http://www.streetinsider.com/Hot+Corp.+News/SAIC,+Inc.+%28SAI%29+to+Spin+Off+Services+Business/8671506.html|access-date=September 9, 2013|newspaper=streetinsider.com|date=September 9, 2013}} The company spun off about a third of its business, forming an approximately $4 billion-per-year service company focused on government services, including systems engineering, technical assistance, financial analysis, and program office support. The remaining part became a $7 billion-per-year IT company specializing in technology for the national security, health, and engineering sectors. The smaller company was led by Tony Moraco, who beforehand was leading SAIC's Intelligence, Surveillance and Reconnaissance group, and the bigger one was led by John P. Jumper.{{cite news|last=Censer|first=Marjorie|title=When SAIC splits, Jumper and Moraco will head companies|url=https://www.washingtonpost.com/blogs/capital-business/post/when-saic-splits-jumper-and-moraco-will-head-companies/2012/11/05/83880944-2750-11e2-9972-71bf64ea091c_blog.html|access-date=April 15, 2014|newspaper=Washington Post|date=November 5, 2012}} The split has allowed both companies to pursue more business, which it could not pursue as a single company which would have resulted in conflicts of interest.{{cite news|last=Censer|first=Marjorie|title=SAIC to name technology business Leidos|url=https://www.washingtonpost.com/business/capitalbusiness/saic-to-name-technology-business-leidos/2013/03/01/e1be6b20-7d3b-11e2-82e8-61a46c2cde3d_story.html|access-date=March 4, 2013 |newspaper=Washington Post|date=March 3, 2013}} In February 2013, it was announced that the smaller spin-off company would get the name "Science Applications International Corporation" and stay in the current headquarters, while the larger company would change its name to Leidos,{{cite news|last=Censer|first=Marjorie|title=SAIC to name solutions business Leidos|url=https://www.washingtonpost.com/blogs/capital-business/post/saic-to-name-solutions-business-leidos/2013/02/25/a0a2d9ba-755b-11e2-8f84-3e4b513b1a13_blog.html|access-date=March 4, 2013|newspaper=Washington Post|date=February 25, 2013}} (created by clipping the word kaleidoscope) and would move its headquarters to Reston, Virginia.{{cite press release|author=SAIC|title=Leidos Headquarters To Be In Reston, VA|url=https://www.prnewswire.com/news-releases/leidos-headquarters-to-be-in-reston-va-219241991.html|publisher=PR Newswire|date=August 12, 2013|access-date=August 15, 2013}} The split was structured in a way that SAIC changed its name to Leidos, then spun off the new SAIC as a separate publicly traded company. However, Leidos is the legal successor of the original SAIC and retains SAIC's pre-2013 stock price and corporate filing history.[https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=LDOS SEC Edgar database]

Before the split, Leidos employed 39,600 employees and reported $11.17 billion in revenue and $525 million net income for its fiscal year ended January 31, 2013,{{cite web|last=Science Applications International Corporation|title=Fiscal Year 2013 annual report on Form 10-K|url=http://www.saic.com/news/pdf/AnnualReport2013.pdf|access-date=August 9, 2013|archive-url=https://web.archive.org/web/20131002020528/http://www.saic.com/news/pdf/AnnualReport2013.pdf|archive-date=October 2, 2013|url-status=dead}} making it number 240{{cite web|last=SAIC|title=Industry Rankings|url=http://www.saic.com/news/rankings.html|access-date=August 9, 2013|archive-url=https://web.archive.org/web/20130802214750/http://www.saic.com/news/rankings.html|archive-date=August 2, 2013|url-status=dead}} on the Fortune 500 list. In 2014, Leidos reported US$5.06 billion in revenue.

In August 2016, the deal to merge with the entirety of Lockheed Martin's Information Systems & Global Solutions (IS&GS) business came to a close, more than doubling the size of Leidos and its portfolio, and positioning the company as the global defense industry's largest enterprise in the federal technology sector.{{cite web|title=Leidos Deal Closes, Spawning Vast Solutions Enterprise|website=Forbes|url=https://www.forbes.com/sites/lorenthompson/2016/08/17/leidos-deal-closes-spawning-vast-solutions-enterprise/#cb8f2bc5a063|access-date=23 August 2016}}

In January 2020, Leidos purchased defense contractor Dynetics for approximately $1.65 billion.{{cite press release|title=Leidos completes acquisition of Dynetics, expanding company's portfolio with new offerings and technical capabilities|url=https://www.leidos.com/insights/leidos-completes-acquisition-dynetics-expanding-companys-portfolio-new-offerings|publisher=Leidos|date=January 31, 2020|access-date=February 1, 2020}}{{Cite web|url=https://www.forbes.com/sites/lorenthompson/2020/04/22/leidos-discovers-its-business-model-adapts-surprisingly-well-to-coronavirus/|title=Leidos Discovers Its Business Model Adapts Surprisingly Well To Coronavirus|last=Thompson|first=Loren|website=Forbes|language=en|access-date=2020-04-24}}{{Cite web|url=https://www.cnbc.com/2020/03/07/analysts-say-the-coronavirus-outbreak-wont-hurt-leidos-stock.html|title=Analysts say the coronavirus outbreak won't hurt the stock that Stifel calls 'The Terminator'|last=Pound|first=Jesse|date=2020-03-07|website=CNBC|language=en|access-date=2020-04-24}} In May 2020 it purchased the Security Detection and Automation Systems division of L3Harris (notable for providing the detection screeners that all airport travelers pass through when flying).{{Cite web|url=https://investors.leidos.com/news-and-events/news-releases/press-release-details/2020/Leidos-Completes-Acquisition-of-L3Harris-Technologies-Security-Detection-and-Automation-Businesses-Creating-a-Comprehensive-Global-Security-and-Detection-Portfolio/default.aspx|title = Leidos Completes Acquisition of L3Harris Technologies' Security Detection and Automation Businesses Creating a Comprehensive, Global Security and Detection Portfolio}}

As of December 2023, the company has 47,000 employees. In 2023, Leidos reported US$15.4 billion in revenue.{{Cite web |date=13 February 2024 |title=Leidos Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2023 Results |url=https://investors.leidos.com/news-releases/news-release-details/leidos-holdings-inc-reports-fourth-quarter-and-fiscal-year-2023 |access-date=10 September 2024 |website=www.investors.leidos.com}} It ranked 266 on the 2024 Fortune 500 list.{{cite web | url=https://www.50pros.com/fortune500 | title=Fortune 500 Full List (2024) }}

On March 4, 2025, the Chinese Ministry of Commerce placed 15 U.S. entities (including Leidos) on its export control list, barring the export of dual-use commodities to that business.{{cite web | last=Cheng | first=Evelyn | title=China retaliates with additional tariffs of up to 15% on some U.S. goods from March 10 | website=CNBC | date=2025-03-04 | url=https://www.cnbc.com/2025/03/04/china-rejects-additional-us-tariffs-vows-to-take-countermeasures.html | access-date=2025-03-04}}{{cite web | last=Min-hee | first=Jung | title=U.S.-China Trade Dispute Intensifies with New Chinese Tariffs | website=Businesskorea | date=2025-03-04 | url=https://www.businesskorea.co.kr/news/articleView.html?idxno=236637 | language=ko | access-date=2025-03-04}} In May, the Department of Homeland Security terminated for convenience its $2.4 billion cybersecurity services contract with Leidos.{{Cite web |last=Seiden |first=Daniel |date=2025-05-12 |title=Leidos' $2.4 Billion Cybersecurity Award Canceld, US Says |url=https://news.bloomberglaw.com/federal-contracting/leidos-2-4-billion-cybersecurity-contract-terminated-us-says |access-date=2025-05-14 |website=Bloomberg Law}}

Structure

Leidos has four central divisions: Civil, Health, Advanced Solutions, and Defense & Intelligence. The Civil Division focuses on integrating aviation systems, securing transportation measures, modernizing IT infrastructure, and engineering energy efficiently. The Health Division focuses on optimizing medical enterprises, securing private medical data, and improving collection and data entry methods. The Advanced Solutions Division is centered around data analysis, integrating advanced defense and intelligence systems, and increasing surveillance and reconnaissance efficiency. The Defense & Intelligence Division focuses on providing air service systems, geospatial analysis, cybersecurity, intelligence analysis, and supporting operations efforts.{{Cite news|url=https://www.leidos.com/defense-intelligence|title=Defense & Intelligence|work=Leidos|access-date=2017-06-24}}

Management

File:Tom Bell Chief Executive Officer of Leidos in 2025 (cropped).jpg

Retired Air Force general John P. Jumper was appointed CEO in 2012, and he oversaw the restructuring of SAIC into SAIC and Leidos.{{cite news|url=https://articles.washingtonpost.com/2012-08-30/business/35493553_1_saic-l-3-split|archive-url=https://web.archive.org/web/20131004214209/http://articles.washingtonpost.com/2012-08-30/business/35493553_1_saic-l-3-split|url-status=dead|archive-date=October 4, 2013|title=SAIC to split into two public companies|last=Censer|first=Marjorie|date=August 30, 2012|newspaper=The Washington Post|access-date=January 8, 2013}} On July 1, 2014, Leidos announced that Roger Krone would become its CEO on July 14, 2014.{{cite news|title=Leidos Announces Roger A. Krone As CEO|url=http://www.wspa.com/story/25913407/leidos-announces-roger-a-krone-as-ceo|date=1 July 2014|access-date=1 July 2014|publisher=wspa.com}} On February 27, 2023, Leidos announced the appointment of Thomas Bell as Chief Executive Officer starting on May 3, 2023. {{cite press release | title=Leidos selects Thomas Bell as incoming CEO | publisher=Leidos | url=https://leidos.com/insights/leidos-selects-thomas-bell-incoming-ceo | date=27 Feb 2023}}

Subsidiaries

  • Dynetics, Inc., a wholly owned subsidiary of Leidos since Jan 2020.{{cite web|url=https://www.leidos.com/company/subsidiaries |title=Leidos Subsidiaries |publisher=Leidos |access-date=February 8, 2020}}
  • Leidos Biomedical Research, Inc., formerly SAIC - Frederick, a wholly owned subsidiary of Leidos manages Frederick National Laboratory for Cancer Research.{{cite web|url=http://www.leidos.com/about/companies |title=Companies |publisher=Leidos |access-date=February 24, 2014}}
  • Gibbs & Cox, a wholly owned subsidiary of Leidos since May 7, 2021.{{cite web |title=Leidos completes acquisition of Gibbs & Cox |url=https://www.gibbscox.com/leidos-completes-acquisition-of-gibbs-cox/ |website=Gibb & Cox |date=May 7, 2021 |access-date=7 May 2021}}
  • MEDPROTECT, LLC supports US government health-payer organizations
  • Reveal, develops dual-energy X-ray computed tomography systems for explosives-detection at airports and similar facilities{{cite web|title=Reveal CT-800 Baggage Inspection System|url=http://www.leidos.com/products/security/reveal-ct-800/|access-date=December 19, 2013}}
  • CloudShield Technologies a wholly owned subsidiary, specializing in cyber-security
  • Varec, Inc., liquid petroleum asset management company
  • Leidos Health
  • Leidos Canada, formerly SAIC Canada, wholly owned subsidiary, works with Canadian government.
  • Leidos Australia (Leidos Pty Ltd), wholly owned subsidiary, specializing in document technologies and cyber-security. Produces TeraText software.
  • Leidos UK (Leidos Innovations UK Ltd, Leidos Europe Ltd, Leidos Supply Ltd & Leidos Ltd), wholly owned subsidiary, specializing in managed IT Services, developing of bespoke products. Produces, supports & maintains the Chroma Airport Suite, also responsible for the MOD's Supply Chain.
  • Leidos Engineering, LLC, formerly SAIC Energy, Environment & Infrastructure LLC, assembles the legacy of engineering capabilities of Benham Investment Holdings, LLC, R. W. Beck Group, Inc.,{{cite web | title=R. W. Beck Is Now SAIC Energy, Environment & Infrastructure, LLC | url=http://www2.saic.com/announcement/r-w-beck-now-saic-energy-environment-infrastructure-llc | access-date=March 25, 2013 | archive-url=https://web.archive.org/web/20130404103152/http://www.saic.com/announcement/r-w-beck-now-saic-energy-environment-infrastructure-llc | archive-date=April 4, 2013 | url-status=dead }} and Patrick Energy Services.
  • Leidos QTC Health Services (formerly QTC Management), acquired by merging with Lockheed Martin IS&GS.
  • Systems Made Simple (SMS), acquired by merging with Lockheed Martin IS&GS.

= Former subsidiaries =

AMSEC LLC, a business partnership between SAIC and Northrop Grumman subsidiary Newport News Shipbuilding divested on July 13, 2007.{{Citation needed|date=May 2008}} Network Solutions was acquired by SAIC in 1995,{{cite web|title=Science Applications International Corporation vs. Comptroller of the Treasury|url=http://www.txcrt.state.md.us/decisions/pdf/saic.pdf|publisher=txcrt.state.md.us|access-date=April 17, 2008|archive-url=https://web.archive.org/web/20080528103010/http://www.txcrt.state.md.us/decisions/pdf/saic.pdf|archive-date=May 28, 2008|url-status=dead}} and subsequently was acquired by VeriSign, Inc. for $21 billion.{{cite web|title=Company History |url=http://about-networksolutions.com/corporate-history.php |publisher=networksolutions.com |access-date=March 29, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20160312130145/http://about-networksolutions.com/corporate-history.php |archive-date=March 12, 2016 }}Leidos Cyber, Inc., formerly Lockheed Martin Industrial Defender, acquired by merging with Lockheed Martin IS&GS, was sold to Capgemini in 2018.{{Cite web|url=https://washingtontechnology.com/articles/2019/02/21/leidos-cyber-sale-closed.aspx|title=Leidos closes sale of commercial cyber business -|last=Wilkers|first=Ross|website=Washington Technology|date=February 21, 2019 |language=en-US|access-date=2020-02-20}}

Controversies

= As SAIC =

Then-SAIC had as part of its management and on its board of directors, many well-known ex-government personnel including Melvin Laird, Secretary of Defense in the Nixon administration; William Perry, Secretary of Defense for Bill Clinton; John M. Deutch, Director of Central Intelligence under President Clinton; Admiral Bobby Ray Inman who served in various capacities in the National Security Agency (NSA) and Central Intelligence Agency (CIA) for the Ford, Carter and Reagan administrations; and David Kay who led the search for weapons of mass destruction after the 1991 Gulf War and served under the Bush administration after the 2003 invasion of Iraq. In 2022, 30 out of 38 Leidos Inc. lobbyists previously held government jobs.{{r|OpenSecrets_Summary}}{{cite web | url = https://www.opensecrets.org/federal-lobbying/clients/lobbyists?cycle=2022&id=D000000369 | title = Client Profile: Leidos Inc. | date = 2022-04-22 | department = Influence & Lobbying / Lobbying / Clients | website = OpenSecrets | language = en-us | access-date = 2022-06-02 | url-status = live | archive-url = https://web.archive.org/web/20220602184822/https://www.opensecrets.org/federal-lobbying/clients/lobbyists?cycle=2022&id=D000000369 | archive-date = 2022-06-02 | df = dmy-all }}

In June 2001, the Federal Bureau of Investigation (FBI) paid SAIC {{US$|122}}{{nbsp}}million to create a Virtual Case File (VCF) software system to speed up the sharing of information among agents. But the FBI abandoned VCF when it failed to function adequately. Robert Mueller, FBI Director, testified to a congressional committee, "When SAIC delivered the first product in December 2003 we immediately identified a number of deficiencies – 17 at the outset. That soon cascaded to 50 or more and ultimately to 400 problems with that software ... We were indeed disappointed."{{cite web|title=FEDERAL BUREAU OF INVESTIGATION'S INFORMATION TECHNOLOGY MODERNIZATION PROGRAM, TRILOGY|url= https://www.govinfo.gov/content/pkg/CHRG-109shrg20668/html/CHRG-109shrg20668.htm|access-date=2019-02-14}}

In 2005, then-SAIC executive vice president Arnold L. Punaro claimed that the company had "fully conformed to the contract we have and gave the taxpayers real value for their money." He blamed the FBI for the initial problems, saying the agency had a parade of program managers and demanded too many design changes. He stated that during 15 months that SAIC worked on the program, 19 different government managers were involved and 36 contract modifications were ordered.{{cite web|url= https://www.fbi.gov/news/testimony/fbis-virtual-case-file-system|title= Robert S. Mueller, III, Director of FBI Appropriations Subcommittee on Commerce, Justice, State and the Judicial|website= FBI |date=2005-02-03|access-date=2014-02-22}} "There were an average of 1.3 changes every day from the FBI, for a total of 399 changes during the period," Punaro said.{{cite news | last1 = Cantlupe | first1 = Joe | date = 2005-02-03 | title = SAIC Says FBI Should Deploy its Software | work = The San Diego Union-Tribune | url = http://www.signonsandiego.com/news/business/20050203-1653-cnssaiccrx.html | access-date = 2022-06-02 | url-status = dead | archive-url = https://web.archive.org/web/20050308190518/http://www.signonsandiego.com/news/business/20050203-1653-cnssaiccrx.html | archive-date = 2005-03-08 | issn = 1063-102X | df = dmy-all }}

In 2011–2012, then-SAIC was among the 8 top contributors to federal candidates, parties, and outside groups with {{US$|1209611|2012}} during the 2011–2012 election cycle according to information from the Federal Election Commission. The top candidate recipient was Barack Obama.{{cite web | url = https://www.opensecrets.org/orgs/summary?id=D000000369 | title = Summary: Leidos Inc | date = 2022-06-02 | department = Organizations / Summary | website = OpenSecrets | language = en-us | access-date = 2022-06-02 | url-status = live | archive-url = https://web.archive.org/web/20220122071242/https://www.opensecrets.org/orgs/summary?id=D000000369 | archive-date = 2022-01-22 | df = dmy-all }}

= As Leidos =

{{AI-generated|section|date=February 2025}}

In a heavily redacted report dated January 3, 2018, the Inspector General for the Department of Defense determined that a supervisor at Leidos made “inappropriate sexual and racial comments to” a female contractor, and that when she complained of a hostile work environment, Leidos retaliated by excluding her from further work on an additional contract.{{cite news |last1=Capaccio |first1=Anthony |title=Leidos's Treatment of Female Whistle-Blower Gets Pentagon Review |url=https://www.bloomberg.com/news/articles/2018-05-02/leidos-s-treatment-of-female-whistle-blower-gets-pentagon-review |access-date=17 June 2018 |work=Bloomberg News |date=2 May 2018}} The report found that Leidos's claim that the contract employee “exhibited poor performance throughout her employment" lacked supporting evidence. It recommended that U.S. Secretary of Defense Jim Mattis “consider appropriate action against Leidos” such as “compensatory damages, including back pay, employee benefits and other terms and conditions of employment” that the contractor would have received under the additional contract.

In 2018, Leidos donated to the Senate campaign of Cindy Hyde-Smith. However, after a video was released showing Hyde-Smith speaking fondly of participating in "public hangings", Leidos said the company would never have made the donation if it had known about the comment. During Hyde-Smith's 2020 re-election bid, Leidos again donated to her.{{Cite web|date=2020-10-31|title=Company that denounced Hyde-Smith's 'public hanging' comment writes her last-minute check|url=https://mississippitoday.org/2020/10/31/company-that-denounced-hyde-smiths-public-hanging-comment-writes-her-a-last-minute-check/|access-date=2020-11-03|website=Mississippi Today|language=en-US}}

In 2022, it was revealed Leidos is embroiled in dual criminal investigations concerning potential foreign bribery and antitrust violations. In August 2023, the company received a grand jury subpoena from the Justice Department’s antitrust division related to three government contracts from 2021 and 2022, coinciding with heightened enforcement of antitrust laws by the Biden administration. Additionally, in September 2023, Leidos was served with a separate grand jury subpoena regarding possible violations of the U.S. Foreign Corrupt Practices Act, linked to activities within its international operations that were identified in late 2021. The company has stated that it is cooperating with the investigations and conducting its own internal reviews into both matters.{{Cite news |last=Tokar |first=Dylan |date=2022-11-01 |title=Leidos Discloses Subpoenas Amid Antitrust, Bribery Probes |url=https://www.wsj.com/articles/leidos-discloses-subpoenas-amid-antitrust-bribery-probes-11667334428 |access-date=2025-02-13 |work=Wall Street Journal |language=en-US |issn=0099-9660}}{{update inline|date=February 2025}}

Leidos is facing scrutiny following the leak of internal documents reportedly stolen by hackers, believed to be linked to a previously disclosed breach of a Diligent Corp. system that Leidos utilized. The company is currently investigating the matter, which led to a more than 4% drop in its shares during after-hours trading. A spokesperson confirmed that the leak originated from a prior incident involving a third-party vendor and emphasized that it did not affect Leidos' network or sensitive customer data. The breach is thought to be connected to a 2022 hack of Diligent's subsidiary, Steele Compliance Solutions, which affected fewer than 15 customers, including Leidos. Diligent stated that it promptly notified impacted clients and took corrective actions following the incident.{{Cite news |last=Gorrivan |first=Charles |date=July 23, 2024 |title=Hackers Leak Documents From Pentagon IT Provider Leidos |url=https://www.bloomberg.com/news/articles/2024-07-23/hackers-leak-documents-from-pentagon-it-services-provider-leidos?sref=qSTPyUkO |access-date=February 12, 2025 |work=Bloomberg News}}

Leidos is facing increasing scrutiny regarding its handling of sexual assault and harassment incidents at facilities operated for the U.S. Antarctic Program (USAP). In a letter from House Science Committee Chair Frank Lucas (R-OK) and Ranking Member Zoe Lofgren (D-CA), the company was criticized for allegedly failing to address these serious issues adequately. This concern follows a 2021 National Science Foundation (NSF) report that highlighted pervasive problems of sexual misconduct in Antarctica. The committee accused Leidos of inaccurately reporting that it had received no sexual assault allegations and claimed that its employees were not fully cooperating with NSF investigators. Leidos has reported five allegations of sexual harassment and zero of sexual assault between May 2017 and April 2022, a claim that Lucas and Lofgren disputed, citing evidence of prior reports. The NSF has since implemented new measures to combat these issues through its Sexual Assault and Harassment Prevention and Response (SAHPR) program. The controversy has drawn attention to the broader challenges of addressing sexual misconduct in remote work environments, with advocacy groups like Ice Allies calling for more robust action since 2019.{{Cite web |date=2023-05-11 |title=Lawmakers Question 'Seriousness' of Antarctica Contractor's Response to Sexual Assaults |url=https://ww2.aip.org/fyi/2023/lawmakers-question-seriousness-antarctica-contractors-response-sexual-assaults |access-date=2025-02-13 |website=AIP |language=en}}

See also

References

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Further reading

  • {{cite book |last1=Beyster |first1=Dr.J. Robert |author-link1=John Robert Beyster |last2=Economy |first2=Peter |author-link2=Peter Economy |year=2007 |title=The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company |url=https://www.saicbook.com/ |edition=1st |location=Hoboken, NJ |publisher=Wiley |isbn=978-0-470-09752-6}}