Where Have They Gone?

Companies Founded by SAIC Alumni

Over the years, a number of SAIC’s talented scientists and engineers have decided-for a variety of different reasons-to leave the company, starting their own businesses. In some cases, the companies were virtual clones of the SAIC model — incorporating employee ownership, a scientific culture, and more — while others were completely different. In every case, the entrepreneurs who started their own businesses after leaving SAIC took with them valuable lessons learned from their experience with the company.

As part of the research for the book, we would like to create a compilation of companies created by individuals who left SAIC. The figure below provides an initial listing, along with the name of the former SAIC-founder and year founded. Please help us fill in the blanks with any spin-offs (official and unofficial) that we may have missed, along with their major accomplishments and/or current status (see examples below) if you know it.
Click on the comments link to share your thoughts.

- Bob

1970′s

  • Jaycor, San Diego, California (Jim Young: 1975) Acquired by Titan Corporation in 2002
  • Photon Research Associates, San Diego, California (Jim Myers: 1975) Acquired by Raytheon in 2004
  • Horizons Technology, San Diego, California (Jim Palmer: 1977) Acquired by Titan Corporation in 1998

1980′s

  • Science & Engineering Associates, Albuquerque, New Mexico (Jim Cramer: 1980) Acquired by Titan Corporation in 2002
  • Titan Corporation, San Diego, California (Gene Ray: 1981) Acquired by L-3 Communications in 2005
  • Chipsoft, Mountain View, California (Mike Chipman: 1984) Acquired by Intuit in 1993

1990′s

  • Bluebird Systems, Carlsbad, California (Bob Mac: 1992) Acquired by Open Text Corporation in 2000
  • Networkcar, Inc., San Diego, California (Chuck Myers: 1999) Acquired by Reynolds & Reynolds in 2002

Click image for larger version (opens PDF file in new browser window).
Companies formed by SAIC alumni -- click image for larger version

Here are comments on some of your recent responses:

Babette Davis (Week 5): It’s becoming clear to me that everyone views the employee ownership element differently in SAIC. Many highly successful individuals felt employee ownership was the most important factor in their success, and the company’s success. Others did not feel that employee ownership particularly motivated them or played much of a role in the success of the company. I for one think the employee ownership we established was the right thing to do. Employees deserved to own the company that only they made possible. I tried very hard to ensure that even the doubting Thomases had a chance to get equity in the company.

Bob Coullahan (Week 6): Good to hear from you. I remember fondly our discussion of the emergency response programs you initiated and ran at SAIC, including the exercises that you supported in Denver and elsewhere. I hope you are continuing to contribute in this area that is so very important to the U.S.


107 Responses to “Week eleven: Where have they gone? SAIC Alumni”

  1. 1 David Binns

    Dr. Beyster,

    Over the years there have been a number of ex-SAICers who have contacted us at the Beyster Institute to request assistance in setting up employee ownership systems in their new companies.

    One fairly prominent firm that we worked with last year is Pro2Serve (Professional Project Services), Inc. in Oakridge, TN. They were founded in 1996 by former SAICer, Barry Goss. They’re a scientific company with an extensive EO program.

    Though they didn’t technically found a new company, in 2002 Bauman Atefi and a team of other former SAIC executives led the effort to transform the 60 year-old non-profit Illinois Institute and Technology Research Institute (IITRI) into a new employee-owned company now called Alion Science & Technology. Headquartered in McLean, VA, Alion is now 100% owned by about 2800 employees (up from 1600 at the time of the buyout). The Beyster Institute assisted with that effort as well.

    There have been a good number of ex-SAICers that have formed start-ups with the idea of implementing some of the same EO and S&T concepts they learned at SAIC.

    There have also been many companies large and small that have attempted to emulate the SAIC approach to employee ownership. Not infrequently, ex-SAICers have been involved in strategically important roles in those companies as well. In that regard, SAIC’s influence extends well beyond just those companies that have actually been started by SAIC employees.

    And over the past 20 years the Beyster Institute has assisted hundreds of firms in terms of implementing employee ownership programs.

    David Binns

  2. 2 Dave Cox

    Dave Cox started MedUnite, an internet based insurance-physician transaction processing company, in 2000. It grew from no transactions to 100 million transactions per year before it was acquired by Proxymed in 2003.

  3. 3 Bill Proffer

    I think DefenseWeb, CEO Doug Burke, probably qualifies as another “SAIC spinoff”.

    This is really a fascinating genealogy!

  4. 4 Allen Herskowitz

    Carl T. Jones does not exactly fit the description – it was an acquired company that bought itself back after a number of years with SAIC. But, the management of the new “CTJ” was educated in SAIC ways before they spun them selves back out as a private company.

  5. 5 Steve Dalich

    SEA was aquired by APOGEN in 2003,not TITAN. SEA and TITAN did come to an aquisition agreement but the deal never closed.

  6. 6 Steve Rizzi

    Bob:

    This is an interesting topic, but I think that you’re only scratching the surface on the impact that SAIC has made in the technology and aerospace industries.

    Many people have left SAIC over the years – I’m sure that the number is known, but let’s just say that it has been somewhere around 5-10% of the employee base per year. At the same time, we hired people to replace those that left (as well as a whole lot more) to grow the company at double digit rates. That’s a huge number of people whose “business DNA” has been affected by the SAIC model.

    A percentage of those thousands of people who left were hired away from SAIC for just the reasons that they were here – taking an idea/vision in hand and building business around it. While the companies that hired them may not have had SAIC’s model, those companies were looking to bring a piece of the “SAIC spirit” into their business. Some of those people went on to play major roles in other Fortune 500 businesses – or accept senior positions in government. This is important to capture in the book somehow.

    Another point I would make is that there are many kinds of “glue” that continue to keep people tied to the company (people that would otherwise be running their own companies). Sure, the stock is a part of that – but, I continue to believe that the strongest glue is what attracted many to SAIC in the first place. Many innovators are put off by the trappings of management and business, and SAIC has always offered a place where innovators could concentrate on the passion that they have for ideas and finding that resonance with customers without being overly distracted by building accounting, contracts, HR, legal, and other business infrastructure. The system allowed those innovative people to emerge as leaders in the company, without having to have built those management structures themselves. That “glue” has kept a lot of good people and ideas in SAIC, and it continues to drive innovation and loyalty within the company today.

    On a related note, I was saddened by some aspects of the article in the Tribune this morning, where the author suggests that the SAIC that you built is “dead” and that a “brain drain” threatens the company. What the author failed to capture was that this company has always dedicated itself to change and adaptation through a constant process of organizational renewal. Today’s SAIC faces an aging workforce, Sarbanes-Oxley, and being a billion dollar company in a rapidly consolidating marketplace. Interestingly, these things are true of most every company in our industry (too bad that point was not made in the article). If SAIC is to survive as a stand alone entity it must change to address these issues. The challenge that remains is to execute that change while retaining our core values and our incentives for innovators. This is something that is incredibly important, and significant energy is put into this at all levels of the company.

    Rizzi

  7. 7 Dave Strobel

    SAIC’s Microelectronics Division was spun out in 1992 as Space Electronics Inc, San Diego (by myself and Bob Czajkowski). We adopted and embraced SAIC’s employee-ownership model. Space Electonics became Inc. 500 twice and sold to Maxwell Techologies in 1999.

    Dave

  8. 8 Rick Valencia

    To David Binns’ point, don’t forget all of the businesses inspired by Mr. Beyster. My company was founded in 1992 as a one man consulting firm and at the time I had no idea what was going on at SAIC. But because I felt corporate culture and employee ownership were high priorities as the business grew, I was drawn to the SAIC story.

    Besides trying to emulate some of the things I saw going on at SAIC, the Beyster Institute was instrumental in helping me create an employee ownership plan and culture. On the way to growing the company to 200+ people and $30M in revenue, I viewed Mr. Beyster as the model CEO and did my best to emulate his inclusive style.

    One of my proudest moments in building the business had a connection to Mr. Beyster. In June of 2003 I was named the Ernst & Young Entrepreneur of the Year for telecommunications. The award was handed to me by Mr. Beyster himself. The trophy sits in the lobby at ProfitLine, but the picture of me and Bob hangs proudly in my own office.

  9. 9 Tsahi Gozani

    Hi Bob,
    One spin-off of SAIC not mentioned in your list is Ancore. Founded in Oct 1997 by Pat Shea (as COO) and myself ( as president and CEO), with outside investors and minority ownership by most employees and SAIC. The company was acquired by OSI systems in Nov 2002, which changed the name of Ancore to Neutronics and Advanced Technologies.

    Ancore was in effect the continuation of the Advanced Nucleonics Division of SAIC, founded in 1977 in Palo Alto/Sunnyvale to initially support EPRI (Electrical Power Research Institute) and provide experimental facilty for nuclear applications. The majority of the Division employees stayed with Ancore and its progeny, where we tried to retain, with some success, the “old SAI” values.

  10. 10 Bud Pyatt

    Lots of interseting comments Bob. It might be amusing to add a small section on the the realationship between SAIC and S-Cubed. I am off on a trip to Russia this week but I will try to add more when I get back to La Jolla in August.

  11. 11 STANLEY FRIESENHAN

    I read with interest about your forthcoming book. I would hope that after it is done you will do a companion volume describing General Atomic and the many companies that grew out of the original GA organization.

    I came to work at Linac in 1961 under Gene Haddad (deceased). The new linear accelerator was nearing completion and we were just starting the neutron capture cross section work that included Bill Lopez (deceased) Fritz Frohner, Allan Carlson, Bill Gober Hank Ross etc. Those were glorious days, and they deserve to be recorded by someone like you.

  12. 12 Bob Burnett

    Bob,
    I was not part of your company, although you tried. Si Ramo used to tell us, “Hire the best people, work on the priority matters for the government, and all will follow”. At least it worked for Ramo Wooldridge. You certainly have hired the best people, and in large quantities. I was always amazed at the number of talented people that you had. You have certainly worked on the priority matters for the government.
    Si’s method was significantly changed when we became TRW. Although we grew, we never achieved your size in sales. I think your real growth secret was that you had a management scheme that kept the teams working together for an amazing length of time. Sure, you had defections as we did, but you prevailed. Part of your management scheme was the employee ownership, and another part ws your personal ability to find out and understand what the government needed and provide that at a reasonable cost.

    Bob

  13. 13 Greg Smith

    I think I worked in two:

    1) VERAC (acquired by Ball Aerospace) founded by Jeffery Nash and Chuck Morefield. I thought Jeff was an SAIC alumn. Many more of the original crew were ex-SAIC.

    2) Expersoft (acquired by VERTEL) founded by Dave Porreca. I believe that Dave also worked for SAIC as well as for Gene Ray at Titan.

  14. 14 Jim Cramer

    Bob, I have just discovered your BLOG and have enjoyed hearing from you. I have one correction, however, to your comments on the aquisition of SEA. The Titan deal fell through and we were subsequently purchased by Arlington Capital Partners in 2004 and merged with ITS Corp. to form Apogen Technologies. Apogen was aquired by Qinetiq Corp. ( a British company) in 2005.
    I credit the success of SEA largly to the concept of employee ownership which was modeled after your precepts. Thanks, Bob. — Jim Cramer

  15. 15 Jake Lefman

    I firmly believe that the employee ownership is THE business model to ensure success of a company. I believe that when employees are rewarded for their contribution to the bottom line, they will work harder, be more motivated, increase productivity, and also reflect their pride when interacting with their customers. I also believe that employee owned companies may operate their business more openly and ethically, as employees have more control and oversight of the company operations. I benefited greatly by being part of the SAIC family for over 16 years, and am sold on this business model. I hope employee ownership will still flourish, and new companies realize the benefits of this business model. I hope that Dr. Beyster’s book is a resounding success, and will become a reference reading guide for future Harvard Business school MBAs.

  16. 16 Lyle Dunbar

    I read the article last week in the San Diego Union that lead me to your BLOG. I look forward to your book. I have an input and correction to your “SAIC Alumni Companies” chart. DR Technologies was founded by myself in 1994 and continues as an employee-owned company that owns and operates three wholly-owned subsidiaries conducting an engineered composite structures products business. I left SAIC in 1981 to found Advantech Corporation, which was subsequently acquired by SPARTA, Inc., another SAIC alumni, in 1983. I worked with Wayne Winton to build SPARTA from 1983 to 1993. I had the great fortune to work for a number of SAIC entrepreneurs and mentors in Dr. Beyster (1971-1981); Dr. Gene Ray, founder of Titan Corporation (1971-1980); Dr. Chris Bush, founder of Spectron Development Lab in 1975 that was subsequently sold to Titan Corporation), (1969-1975); and Wayne Winton at SPARTA (1983-1993). One reason there are so many SAIC alumni companies is the precedent and education provided by Dr. Beyster. We all saw what he had done and concluded we could all do that in our own company. Some have done it well but none has matched the master!

  17. 17 Jeff Van Fleet

    Dr. Beyster – I wanted to take a few minutes to share my gratitude to you and SAIC for helping me see how a large company could be run. I was hired by Kay Johnson in the Dayton office in 1991. Kay, you, and the SAIC culture had a profound impact on me and allowed me the opportunity to grow from a software engineer to a senior project manager responsible for growing business and managing a team of 25 people. After almost nine years, I left in late 2000 to start my own company, Lighthouse Technologies. I learned a great deal while working there and took with me many teachings and beliefs. Here are a few of the things that continue to help me today.

    Innate belief in employee ownership – I am a big believer in the “unlimited supply” in our world. Everyone feels good knowing that they made a difference and that they and their families can reap the rewards of making that difference. Employee ownership allows me to surround myself with would-be entrepreneurs that aren’t quite ready to make the leap, but they bring with them their drive, ideas, ambition, and desire to grow.

    “If you kill it, you eat it” attitude – It empowers everyone to know that they can go after any work and if they win, they get to work it. This attitude helps fuel the intra-company competition. It keeps us on our toes, provides best value for the customer, and even provides incentive for cooperation. This encourages everyone to think in terms of possibilities, not limits.

    Encourage change – One of the reasons I hired on with Kay was that he had a sign in his lobby that said, “Any rule can be questioned here except this one.” At Lighthouse, we have the same sign in our lobby. In fact, we encourage “respectful dissonance”, because my belief is this allows people to be comfortable making suggestions and allows us to be proactive in our ability to change.

    Thin and pragmatic processes – Whether these are business processes, organizational processes, or delivery processes, one of the key things that I appreciate about my life at SAIC was the flatness of the organization and the “minimize red tape” attitude. One of the guidelines at Lighthouse is if you need a book, a software tool, etc., don’t sit around in a conference room debating it, just go make it happen. This empowers our people and removes roadblocks to let them do their magic.

    Thank you for your leadership and innovation. I look forward to meeting you one day and thanking you in person.

    With warm regards,
    Jeff Van Fleet
    President & CEO, Lighthouse Technologies, Inc.

  18. 18 Duane Knize

    Bob,

    Here is an entry for this century: Genomic HealthCare, Inc. of La Jolla, founded by Roland Stoughton in December 2003. We collaborate with GHC on several HSARPA programs.

    Best regards,
    Duane

  19. 19 Gary Fillmore

    I started PM tec in 1991 after leaving SAIC in 1986. PM tec is a full-service provider of Program Management products. We focus on DOE, large construction, and municipal governments projects throughout the Southwest. The PM tec management model has been heavily influenced from my experiences with Bob Beyster and his management model.

  20. 20 Telal Wassel

    Bob, I did not see Spectron Development Laboratory, established by Dr. Chris Bush in 1975, on your chart.

    The Company was later acquired by Titan (Gene Ray).

  21. 21 Chris Rowe

    Hi Dr. Beyster,
    Well, we finally did it – we packed up our lil’ old CCOE practice out here in New Jersey and started our very own Voice over IP Engineering practice with a longtime SAIC Partner – and by all accounts so far – there’s no looking back!!!

    I grew up with your unique company through my 20′s and 30′s. And now we’ve taken all of our wonderful experience from our better days at SAIC, we’re clearly rejuevnated, and we now happily look forward to the future.

    A sincere thank you to you and the real SAIC folks who have mentored me along the way – Telal, Rich Z especially…

    Thanks – and send me a note anytime!!!

    Take Care,
    Chris

  22. 22 Cecelia McCloy

    Hello Dr. B! I guess I will have to toot my own horn and tell you about the company I started in early 1999 after leaving SAIC, Integrated Science Solutions, Inc. We are science and engineering consultants focusing on federal government, no surprise there! Next year we will implement an ESOP program, as I love the employee-ownership aspect of SAIC. We are small, 8M in revenues, but having a great time! One aspect of SAIC that I enjoyed under your tenure was the “small” company feel. Employees had direct interaction with senior management and Group management was accountable to providing support to employee’s work environment, ie. money for bids, IRD funding, etc. The focus was on good long-term customer relationships, high quality work products, and making money; in that order I might add. I am looking forward to your book.

  23. 23 Craig Racine

    I left SAIC’s Energy Systems Division in 1989 to consult for commercial energy companies. Richard Sterrett left SAIC in 1992 to consult also. In 1994 we combined our practices to form Alternative Energy Systems Consulting, Inc. (AESC). The company now has over 25 employees. All three corporate officers are former SAIC Energy Systems Division employees. They are Richard Sterrett, Ron Ishii and Jerry Gibson.

  24. 24 jim nabeer

    I disagree with the JNI Corp. – Terry M. Flanagan entry in the “Companies Formed by SAIC Alumni” chart. Terry Flanagan ( to my recollection) was never an employee of SAIC and JNI Corp. was formed from Jaycor. If I am wrong please let me know.
    jim naber

  25. 25 Roger Crump

    Applied Research, Inc (ARI) was formed by Harold Jeffreys and Larry Kennedy around 1980 after leaving the SAIC Huntsville, AL office. ARI was later acquired by SAIC in 1994.

  26. 26 Terry Flanagan

    Hi Bob,

    I just saw your blog and found that I was listed an an SAIC alumnus. I guess that a common background at GA, and the number of lunches we had together to look for common business interests may qualify me as a ex officio alumnus. Anyway, regardless of details, I’m pleased to be included in such distinguished company.
    Terry Flanagan

  27. 27 Les Hicks

    Another entry for the Genealogy chart, Brian Kenner (SAIC) along with Harry Gruber formed Intervu which was sold to Akami and was the start of video delivery over the internet. Good seeing you the other day….

  28. 28 Kim Crosser

    A minor correction to the “Companies Formed by SAIC Alumni” chart and text. Bluebird Systems was founded in 1982 by non-SAIC people (principally Hal Tilbury). In 1992, Bluebird Systems acquired the IP (and most of the staff) of SAIC”s MOSAIC document imaging system to sell it commercially on the IBM RS/6000 AIX platform. Bob Mack founded “The MOSAIC Group” (now defunct), a partner company of Bluebird Systems, to sell and support MOSAIC in IBM mainframe VM installations. I went with Mack to be a (very) minor partner in The MOSAIC Group, and moved to Bluebird Systems at the end of 1993 to focus on the AIX version of MOSAIC.

  29. 29 Don Lapre is a Superstar

    Good post about the alumni from SAIC. SAIC’s scientists and engineers are no doubt great talents. To what extant is this different from many other institutions is a question that comes to me when I read an article of this sort .

    Don Lapre is a Superstar
    webmaster@j-ams.org
    http://www.j-ams.org

  30. 30 Dave Sincoskie

    Bob,
    I just (belatedly) found your blog. I hope your book has some mention of Telcordia. The last time we spoke, I recall not having a good answer to your question of how I liked Telcordia being sold. I think I’ve come to believe that the days of SAIC ownership of Telcordia were the best ones. Good luck with your book.

  31. 31 Bruce Ahern

    Dr. B,
    Not every company formed by ex-SAIC folks like myself is technology focused. In 2004, my wife and I founded Phoenix Outdoor, a wilderness treatment program for troubled teens. We saw a need in the market to help adolescents with drug and alcohol issues in a therapeutic wilderness environment. While neither my wife or I are psychologists, we hired the best and brightest to provide those services

    We follow an employee-ownership model by giving percentages of the business to our key management team. We have over 50 employees today and are expanding with a new transitional living home in Asheville North Carolina. That operation will service adolescents with longer term transition care for addiction recovery. We also formed a non-profit 501 c3 to support scholorships for families that can’t afford the cost of care.

    http://www.phoenixoutdoor.com

  32. 32 Tom Munnecke

    Not sure if non-profits count as companies, but I took early retirement from SAIC to look at ways of using technology for humanitarian and philanthropic activities… it’s a very small network-based group called the Uplift Academy.

  33. 33 Dr. Beyster

    Tom: Thank you reporting in. I’m impressed by your desire to establish and devote your time to a nonprofit, whose purpose is to use technology to better the human condition. I hope you make a difference in the world.

  34. 34 Devon Crowe

    One of the themes raised by Dr. Beyster is taking skills acquired at SAIC into the outside world. I spent 7 years at SAIC in Tucson from 1980 to 1987 progressing from Scientist to Senior Scientist, Branch Manager and then Division Manager. I left SAIC to become a Laboratory Director for a 200-employee Lab at the Georgia Tech Research Institute (GTRI). GTRI was not for profit and an integral part of Georgia Tech, but it was entirely supported by external contracts, and even competed with or teamed with SAIC on competitive procurements. As Lab Director, and later as Associate Director of GTRI, which had about 1,500 employees in those days, I did directly apply entrepreneurial skills learned at SAIC. Those same skills have subsequently proven useful in every position I have held, including obtaining funding as a Research Professor at the University of Arizona as well as in Director and VP positions in private industry. The entrepreneurial skill set is useful in many sectors of life in our society which thrives on competitive excellence.

  35. 35 Dr. Beyster

    Devon: In response to your blog posting, it seems to me that the main accomplishments of SAIC were the tremendous return on investment we gave to our customers, the entrepreneurial training our employees gained by doing, and the feeling of importance in equity sharing which was a basic part of our culture. Thank you for your posting — happy new year. — Bob

  36. 36 Jay Bernhardt

    Dr. B., I started in the business world workin for Littin Ind. in LA, CA. This was an innovative company at the time. Many spin-offs like these listed & created by SAIC alums. What is the difference in the culture of Litton than that of the cultur at SAIC? Jay

  37. 37 Dr. Beyster

    Jay: There’s a fundamental difference between SAIC and Litton. Both are highly innovative organizations, but Litton has been a public company for some time while SAIC was privately held by the employees until recently. As a result, the cultures are entirely different. You can find out much more about this in my book, The SAIC Solution.

  38. 38 Jay Bernhardt

    Dr. Beyster, I have your book on order today. I look forward to reading it.

  39. 39 Dr. Beyster

    Jay: I’m glad you ordered the book and I’m looking forward to your comments. We may have the opportunity to make corrections and additions, so please let me know if you have any. — Bob

  40. 40 Jay Bernhardt

    I do not know anyone that would say that the symbiotic mix of government & commercial business is a vice. Having read through the book I see no indications of that statement being explored. Great book, great company, great spin-offs & truly a “Super Bowl Winner”.

  41. 41 Dr. Beyster

    Jay: I agree — the symbiotic mix of government and commercial business is not a vice, as we demonstrated at SAIC. Possibly we did not explore the power of that symbiosis as thoroughly as we could have. Thanks for your comment. — Bob

  42. 42 Jay Bernhardt

    Dr. Beyster, You state that it is most important for your company’s “leaders to guard against creeping bureaucracy”. I would gues you said this in 2007. The United States is soon to have a new President. I think Defense spending will remain high, but shift from weapons spending to more non-weapons spending.

    I look at the last 8 years as having [The Gonzales Six] produced the Dept. of Injustice. The debates over WMD as a real issue “of interest”. The Airbus/Boeing GAO upheld protest as healthy to effectuate an award to the most qualified bidder.

    Do you believe that the new Administration in 2009 will give us a fair and balanced “creeping bureaucracy” or will they be the same old-same old “creeping bureaucracy”? Jay

  43. 43 Dr. Beyster

    Jay: It depends on who wins the presidential race. As you may know, I’m voting for McCain. Although he’ll have a bureaucracy, it will be more fair and balanced and it will not creep unless it absolutely has to. I think he will save money by making the government operate more efficiently. — Bob

  44. 44 Jay Bernhardt

    Dr., We have a winner. I think he is not going to take the money from the Small Business Owners and give it to the people that do not want to work. He would not be favored kindly! You can’t punish the entrepreneurs and reward the non-contributors to a working class society. Ya think? Jay

  45. 45 Dr. Beyster

    Jay: It’s nice to hear your optimism about the next president, and I hope you’re right and that he steers towards a society that will reward people in some way commensurate with their contributions. — Bob

  46. 46 Jay Bernhardt

    Trust & invest only in what you have convidence !

  47. 47 Dr. Beyster

    Jay: Most commodities aren’t doing well right now — how’s the hose business? Regarding your advice to trust and invest only in what you have confidence, the problem is that you don’t really know who to trust nowadays. The firms we had the most confidence in were proven to be capable of the largest financial blunders. Who do you trust for your investments? I would like to know. — Bob

  48. 48 Jay Bernhardt

    Bob, Right now I trust in my own company. I think that Defense Contracting is the place to be and is a safe haven. The $700B will be as big or bigger for the budget for some time to come. For play money I think the market will rally to 10,000 over the next few months & then will go down drastically. Gold will go up for a short period and will drop like the Times Sq. NY’s Ball. I am going to hit DUG at $15.00 a share, I will short GDX when gold gets a close to $1000. As for now, EDV & TLT seem very safe as I have confidence in their ability to make a nice appreciation. Was disappointed that SAIC lost the FASI bid out of DLA, Columbus. I see SAI stays right around $20. May 2009 be the best ! Jay

  49. 49 Dr. Beyster

    Jay: Thanks as usual for your blog posting — it’s a pleasure to hear from you. Maybe you can help give us insights on your financial advice. What’s EDV? Is TLT the Lehman 20 Year Treasury Bond? Why do you like that particular security? I’m glad to see you’re optimistic, but I am currently cautious about the next year. It depends so much on what Obama does to revive the economy. — Bob

  50. 50 Jay Bernhardt

    Both, EDV & TLT are derivatives…..They are explaned by looking at ETF…Jay

  51. 51 Dr. Beyster

    Jay: Thanks for explaining those mysterious stock symbols for us. — Bob

  52. 52 Jay Bernhardt

    Bob, Both are down. Hope you did not follow with $$ investment ! Jay

  53. 53 Dr. Beyster

    Jay: No, I’m holding off on conventional investments right now. I’m sticking with my bonds and riding it out. — Bob

  54. 54 Joe Swiderski

    Greetings Bob, Just wanted to give you an update for your blog on “where they have gone” and our company, Systems Technology Forum Ltd. Last October 2008 we marked our 5th year in business after leaving SAIC in October 2003. STf, founded by former SAIC employees Christine Aaron, Mike Hancock and myself just ended our year at $18.5M with a 46% revenue growth in 2008. It was a great year for us at STF and we are on track for significant growth 2009 and are expanding our offices in San Diego, Arlington VA, Norfolk Va and Charelston SC. We could not have done it without your guidance and the expereinces at SAIC. Take Care – Joe Swiderski, CEO

  55. 55 Dr. Beyster

    Joe: Glad to hear you’re doing as well as you are. Thanks for keeping me up to speed with what you’re doing. I’m thinking of assembling a record of how SAIC employees have fared since they left the company. — Bob

  56. 56 Jay Bernhardt

    Bob, Just attended the AUSA show in Ft. Lauderdale & visited the SAIC area. Great job for this end product and so many off shoots……Should be called SAIC University……Congratulations ! Jay

  57. 57 Dr. Beyster

    Jay: Glad you enjoyed the AUSA event in Ft. Lauderdale. In earlier times I used to go to that, either in Ft Lauderdale or Orlando. I found it was a great place to find out what the Army was investing in. — Bob

  58. 58 LTC Jay R Greeley

    Bob,

    I am one of those Boeing guys that came over to SAIC and worked for Dr. Dube at Boeing and now find myself still surrounded by great folks from SAIC.. just want to thank you… every day since my call up back to service I have been able to reach back and touch our SAIC alumni.. When I was in Mosul in 2003 with the 101st we were able to reach back and get an answer, on what kind of IED of chemical powder we had to neutralize.. it was a team effort.. with IED defeat guys and getting the FAA to help us test… my NCO helped develop a method to speed testing that saved 18 months of work.

    I will be returning to SAIC in Oct of 2010, I will be looking forward to working in a dynamic environment as I do today.. If in uniform or working for SAIC..your values transpired into unmatched personal loyalty.

    Keep the Faith.
    And thanks for supporting the troops..

    Jay R Greeley
    LTC AV
    Army’s Rep HQ FAA

  59. 59 Dr. Beyster

    Jay: Thanks for the blog posting and for the kind words. Is your job in Iraq mainly focused on perfecting IED detection and elimination, or what exactly? It seems that there have been fewer deaths in Iraq resulting from IEDs, so our methodology must be improving. — Bob

  60. 60 David Swanberg

    Dr. Beyster,

    I joined SAIC in 1995 during a period of tremendous growth for the company. I watched as the number of employees doubled and revenues nearly tripled over an approximate 5 year period. SAIC stock split 4 for 1 and climbed back up to surpass the original single share price, making over 5X return in just 5 years. In 2004 I left to startup a medical isotope company, IsoRay Medical Inc. We did several rounds of investment and took the company public, while retaining substantial ownership for the founders and initial invenstors. The most rewarding apsects were the entrepreneurial environment, customer focus, and employee dedication and loyalty that we created inside the organization. I believe much credit is due to my prior experience at SAIC. In 2008, I returned to SAIC and am currently working on a DOE project and pursuing new business for SAIC. This is a great company. We need to continually improve but not forget our roots, the principles and practices that got us where we are today.

    Dave

  61. 61 Dr. Beyster

    David: Nice to hear the positive report on SAIC. — Bob

  62. 62 Jay Bernhardt

    Bob, Do you think that Aquisition Reform is possible? It seems that Fraud, Waste & Abuse is becoming more acute. I see defective data packages & un-trained procurement officers as a problem. Contracting officers as being more harsh & problems coming from Government. “Buy ins” by the big guys is the norm, but the smaller defense contractors are stymied. I thought that when Bush went in this would be attended to, but it did not happen. I think Obama does not even know what is going on in procurement. Jay

  63. 63 Dr. Beyster

    Jay: Buy-ins by the big contractors has gone on for years. Even years ago, it was rampant throughout the defense industry. I think what always brings things around is some event in the procurement process that attracts attention — like the fabled $500 hammer. When that hits the news, everything straightens out for a while. I haven’t seen anything particularly bad in the media lately, but this kind of thing has always happened, and it always will. — Bob

  64. 64 Jay Bernhardt

    Bob, Aquistion Reform is probably an oxymoron……I think the problem with a $500 hammer is the Government’s. If it were the Prime’s fault it would be a $1500 hammer. Jay

  65. 65 Dr. Beyster

    Jay: I’m a firm believer that acquisition reform should be an ongoing process. There are so many place where the government is wasting money, and those in charge must keep trying to make the acquisition systems better to protect the Public Trust. The $500 hammer is small stuff compared with the overall magnitude of this problem, which is in the multi-billions of dollars. — Bob

  66. 66 Jay Bernhardt

    Not if you sell a million hamers !

  67. 67 Brendan Coleman

    Dr. Beyster (I could never call you Bob!)

    I worked with SAIC in Scotland for 4 years in the nineties. I now work for Tesco Bank. I have worked for a multitude of other companies. What impressed me about SAIC and impresses me currently about Tesco is that both are based on real commitment to Values. The Employee Ownership initiative, which still amazes me to this day, was a testament to the values that you introduced in 1969. Tesco’s values are equally simple – “No-one tries harder for Customers” and “Treat People How we like to be Treated”. But by inculcating these in our workforce and living them daily Tesco ahs become the 3rd biggest retailer in the world. And it’s only since creating the value principles and truly living them that the growth spurt took off.

    It’s amazing how few companies understand the value of values! And it is not at all amazing how many companies fail.

    Good Health,

    Brendan

  68. 68 Dr. Beyster

    Brendan: I presume you’re still in Scotland. I’m wondering what you’re doing at Tesco Bank. Please update me on your latest information. I believe Tesco is beginning to make inroads in the United States. Is the company doing anything in the area of employee ownership? As you know, I think employee ownership was an important value at SAIC, and I am certain it led to much of our success. – Bob

  69. 69 John Keegan

    Dr. Beyster: I am interested in your perspective on the possible sale or spin-off to shareholders of the Shipbuilding Sector of Northrop Grumman Corporation. That includes a company which was once a wholly owned subsidiary of SAIC, AMSEC LLC. Not sure how much you have or have not been following it.

    Best regards and continued good health.

    John

  70. 70 Dr. Beyster

    John: Thanks for your post on my blog. AMSEC was the brainchild of Carl Albero. I haven’t been in touch with him lately and I have not followed the sale/spinoff of Northrop Grumman’s Shipbuilding Sector. Carl has a new company: CMA & Associates (http://www.cmanassociates.com). I suggest you get hold of Carl and see what he thinks. He’s easy to find. — Bob

  71. 71 Jay Bernhardt

    Bob, We are having a 40% increase in all DLA RFQ’s not being awarded. For 30 years it has always been steady awards/bids ratio. Now it is shocking what is going on. When at SAIC did you see anything like this? Jay

  72. 72 Dr. Beyster

    Jay: It’s been so long ago now that I was at SAIC, and I don’t recall how much of our business resulted from RFQs from the DLA. However, I saw nothing but increases when I was there. This is a surprising turn of events, and it’s tough for small businesses. Please let me know if the situation improves. — Bob

  73. 73 john hickey

    John Hickey and Shogo Karitani left SAIC in 1979 same time as Wayne Winton and started ACI (Atsuko Computing Internatinal, Inc.) which was successful for over 8 years providing software development for NASA.

  74. 74 Dr. Beyster

    John: Thank you for the updates. I haven’t seen Wayne in at least 30 years. — Bob

  75. 75 Steve Dam

    Bob,
    I saw your list. If you would like, you can add SPEC Innovations (we were originally called Systems and Proposal Engineering Company). This company was definitely inspired by my work for you at SAIC.

    Also, I read your latest blog. I had similar thoughts and put them in my blog at http://www.dodafonline.com.

    By the way, we are organizing a conference on systems engineering for DC. Its http://www.sedccon.org. You might find it interesting.

    Steve

  76. 76 Cathy Talbert

    I love this column and seeing/reading about good news that SAICers have been doing. Congratulations, Dr. B, on being named to Contractor’s Hall of Fame. I was particularly touched by your first response: “My vision was simply to create a good place for people — the company’s engineers and scientists — to work.” We miss that vision. Best wishes to you and to all those who have followed your example. I also like the response above to Tom, “I’m impressed by your desire to establish and devote your time to a nonprofit, whose purpose is to use technology to better the human condition.” May all who embark be successul in achieving this goal.

  77. 77 Dr. Beyster

    Steve: I’m pleased to hear that your time at SAIC was an inspiration for your company SPEC Innovations. What exactly does your company do? Thank you for your post on my blog. — Bob

  78. 78 Dr. Beyster

    Cathy: Thank you for your kind words. I am very pleased to have received this award, and I know that I am in very good company. I hope you have an enjoyable holiday season. — Bob

  79. 79 john hickey

    Dr. Beyster,

    When Shogo Karitani and I (John Hickey) left SAIC (Huntsville) in 1979 – we considered going with Wayne Winton – but decided to start our own company providing Space Shuttle Software for NASA. To start Atsuko Computing International (ACI), I sold 700 shares (I owned 705) of SAI stock. I got $6,300 ($9/share). I completely lost the remaining 5 shares over the years. Almost 30 years later – I received a letter stating I owned 200 shares and they we worth $43/share? After investigating I found the 5 shares had split several times and the 5 shares became 200. $45 worth of stock was now worth $$8600. Had I kept the original 705 shares it would have been worrh $1,216,600 – ouch. But it gets worse. I sold the 200 shares for $8600 and invested them in Kodak stock my employer of 21 years. I bought Kodak stock for $30/ (275 shares). Now that $8600 investment is now worth $315.00 ($1.14/share) – another ouch.
    I have not fared well. Not to mention the Kodak stock I bought ten years prior for $60/share. Had I stayed with SAIC – I would not still be working.
    Many of my friends are still there – wise choice. SAIC was the best company ever.

    John Hickey

  80. 80 Steve Dam

    Bob,
    We do systems engineering, mostly at the architecture level, proposal development (I think I helped SAIC win several billion after I left), training, and software development. Sorry it took so long to get back to you, but we just finished two proposals (one just this Friday and the other the Friday before). We supported SAIC on several programs, including Future Combat Systems and Constellation.
    Thanks for all your inspiration.
    Steve

  81. 81 Dr. Beyster

    Steve: I enjoyed working with you at SAIC, and I’m glad to see that you’ve started your own company. Are you still working in the area of Future Combat Systems? I would like to know how it is going. — Bob

  82. 82 Dr. Beyster

    John: I hope something works out for you. It sounds like you sold your SAIC stock a little bit prematurely. Unfortunately, no one has a crystal ball that has been proven to reliably predict the future. At least not that I’m aware of. — Bob

  83. 83 Steve Dam

    Bob,
    Since the FCS program ended last year, we haven’t been involved in that effort. We are directly supporting OUSD/SE on systems engineering policy and the US Army in their Army Global Civil Military Emergency Preparedness (AGCMEP) program. AGCMEP is a program to help other countries do a better job of preparing for disasters, so the US Military does not have to be the First Responder for the World. The cost of supporting disasters like Haiti have become overwhelming, both in terms of dollars and impact on the readiness of our troops.
    Thanks,
    Steve

  84. 84 Jay Bernhardt

    Bob, Merry Christmas & Happy New Year. Jay

  85. 85 Jay Bernhardt

    Bob, My company has a 2011 $70M USMC contract as of last Friday. It is past tense now as it has been cancelled for #1…reassessed Marine requirements & #2…budgetary reasons. I now find the Contract is Latent Ambiguous. Being Small Business & $70M is large for us, it wasn’t the best Christmas present I have ever received. Usually we give the Military mulligans. I think JGB will reassess our thoughts.

  86. 86 Dr. Beyster

    Jay: Thank you for the Christmas and New Year wishes. I am very sorry to hear that you lost a $70 million USMC contract — that is a significant number no matter what size the company is. Unfortunately, with the coming Defense budget cuts, there will likely be many more companies following in your footsteps in the coming months and years. — Bob

  87. 87 Dr. Beyster

    Steve: Thank you for the additional information. Based on the latest plans to cut the Defense budget, I believe we will have little choice but to pull back from some of our global emergency and disaster response efforts. — Bob

  88. 88 Larry Janning

    Dr. Beyster,

    I’ve been monitoring your board and have been checking in with you about every six months. Your writings continue to be of interest to me. Last we chatted I told you about the new company I started with another gentleman to product a small disposable UAV. You can see a picture of it at: http://www.ionventus.com/products.html
    We have interest from several services, but no real funding yet. We’re considering making a few with our own money and giving them to the military to try. We’re confident they’ll like it!

    Take care!

    Larry Janning

  89. 89 Dr. Beyster

    Larry: Thanks for your post — it’s always good to hear from you. I am curious to hear more about your new company. As you may know, the topic of drone aircraft is of great interest to me. Good luck with your venture, and please keep me informed on your progress. — Bob

  90. 90 Chuck Mallon

    Dr Beyster
    I go back to the early 1960′s. I had the pleasure of observing two of the brightest Physicists ever—You and Vic van Lint. Those were the days.
    Does anyone out there recall “Beyster’s Beastly Booster”?
    Shortest neutron pulse without going underground.
    Reading your BLOG is like old home-week. Thanks, I’ll be back.
    Chuck Mallon

  91. 91 Dr. Beyster

    Chuck. Thank you for your kind words — it is good to hear from you. I remember the so-called Beyster Beastly Booster. As I recall, it was a ball of U235 that we hit with an electron beam, giving off a low yield. The work went well, and it allowed us to find out some things about the radioactive elements that became useful for defense purposes. I got three publications with Hans Bethe out of that. I hope you’re well and enjoying life. — Bob

  92. 92 Jay Bernhardt

    I’m a graduate of litton Industries Univ. I met a fellow grad over the phone & he mentioned he knew you. He hung in there & it has morphed in to Northrup Grumman.
    I mention this as another reader may know of a similar way to connect with litton past employees. My $70M contract with the USMC was Terminated. Now we fight to be made whole. Stay tuned.

  93. 93 Dr. Beyster

    Jay: Sorry to hear about the termination of your $70 million contract with the Marines. I hope your company is able to recover from this setback. — Bob

  94. 94 Jay Bernhardt

    Bob, We will and are. SAIC Univ, Litton Ind. Univ. & JGB Ent. We are a Supply sider to SAIC’s logistics contracts. The one interesting thing, Faster, Better, Cheaper are the buzz words of today. The Gov. talks-but the Gov. forgets to walk. The chit-chat is Lockheed Martin is trying to put the DLA out of business. This is akin to UPS & FedEx trying to put the Post Office out of business. Stay tuned. I’m afaid if the President doesn’t start walking the walk, the Armed Force’s Acquisition Reform will never happen. Jay

  95. 95 Matt

    Great list, but I imagine it is missing a lot of names.

    In 1996, Brian Houghton, Neal Pollard, and myself (Matt Devost) formed the Terrorism Research Center. The three of us met while at SAIC.

    In 2006, the company was sold to EP Investments.

    In 2010 I started FusionX (www.fusionx.com)

  96. 96 Dr. Beyster

    Matt: I think you’ve done some great things since you left SAIC. I hope you learned some good lessons from the company and that they were helpful to you. — Bob

  97. 97 Brian Burger

    Sir,

    Myself and business partner (Glenn Chave – SAIC, also) just recently stepped away from SAIC and started our own business called Fathom 4, LLC.

    We are concentrating on Defense Information Technology Support Services and Tactical Vehicle C4ISR Design, Engineering, Prototyping, & Integration and are based out of Charleston, SC. A large part of our experience derives from running the C4ISR engineering and full scale integration aspect of the MRAP program.

    I loved reading your book and along with the other dozen books I have read in the last year to help prepare me for this move, SAIC Solution was the most relative. I plan on rereading after my first year to pick up some things that I have overlooked and would still like to emulate.

    I am excited to hear you are writing a second edition and will buy it as soon as it hits the shelf.

    - Brian

  98. 98 Dr. Beyster

    Brian: Thank you for your post, and for the kind words about The SAIC Solution. I am glad to hear that it has been helpful to you as you build your new business. We should have the second edition completed by the end of the year. I am including some new perspectives on the current state of employee ownership at SAIC, which I think you might find interesting. — Bob

  99. 99 James P. Smith

    Dr Beyster
    I want to thank you for believing in me twenty years ago. In 1992 ,after the LA riots you and your outstanding team of experts at SAIC listened to my hopes and dreams of giving the youth of south central a second chance to rebuild a better future. For two decades because of your support ,friendship and mentoring Y.E.S. Youth Employment Systems ( now Youth Employment Solutions), is still providing, education ,youth development/ leadership services and job training for high school drop outs 16 -24 in Watts and Compton.CA.
    On Dec 8.2011 at our “Y.E.S. 4 Youth Awards Dinner”, you were awarded the “Life Time Philanthropist Award” from Y.E.S, for your outstanding contributions and unwavering support of Youth Employment Solutions mission of helping urban youth rebuild our communties and rebuild their lives.

    Would be honored to deliver the awards to you . Please let me know.

    James P. Smith

  100. 100 Dr. Beyster

    James: Thank you for your note. I am pleased to hear that SAIC made a difference in the lives of so many young people in Los Angeles. — Bob

  101. 101 Jay Bernhardt

    Have a Merry Christmas & Happy New Year.

  102. 102 Dr. Beyster

    Jay: Thank you for the well wishes. I hope you had a Merry Christmas and that 2013 is a successful year for you and your company. — Bob

  103. 103 Jay Bernhardt

    JGB has had a record first quarter. What Seqestier?

  104. 104 Dr. Beyster

    Jay: It’s good to hear that the sequester has not had a negative impact on your business. I hope you are able continue with this trend. — Bob

  105. 105 john hickey

    Dr. Beyster,

    I wrote back in 2011 about my departure from SAIC and starting my company Atsuko which enventually went under. I’ve worked for Kodak past 22 years and even though I managed to keep my employment (1000′s didn’t) – like most I lost everything when the stock became worthless during Kodak’s Chapter 11. Still I use my skills and talents (many of which were learned while working for SAIC during the late 70′s. Biggest mistake was to ever leave and still keep in contact with those that were smart enough to stay.

    John

  106. 106 Dr. Beyster

    John: I wish you had stayed with us at SAIC, although I am sure that Kodak was an attractive proposition two decades ago. It’s hard for me to understand how a company like Kodak could go so wrong so quickly. I am glad to hear that SAIC still has a positive influence on you to this day. — Bob

  107. 107 Steve Dam

    Bob,
    Good to hear you are feeling better. Hope you made it to Michigan. Just a quick update, we released a new cloud-base systems engineering and program management tool called Innoslate (www.innoslate.com) last October and using Agile programming techniques it is already up to version 2.4. You may not realize it, but SAIC started us down this path, as I was introduced to this class of tools when I set up the Corporate Service Center for RDD-100. I was the Technical Manager of the Marketing Communications Center at the time, just before I went to work for you. When I spun off SPEC, we were using a similar tool called CORE, but like many tools in this class they have not progressed that much since the 1990s. Innoslate is a design from scratch tool using Google AppEngine as the Platform as a Service (PaaS) provider. The technology is amazing. We even have a Monte Carlo simulator built into it. You can use the free copy just by signing up at the website (the only thing the free does have is the Monte Carlo sim and it’s limited to 200 entities). Some folks at NASA and Stevens have been using it to do Model-Based Reviews. You remain an inspiration to me and I pass on lessons I learned from you to my employees.
    Thanks,
    Steve


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