SAIC Signs Contract Modification Enabling Completion of the Security System for Greek Government
SAN DIEGO and MCLEAN, Va., April 4 /PRNewswire-FirstCall/ -- SAIC (NYSE: SAI) announced it has executed a modification to its contract to deliver a state-of-the-art security system for the Greek government. The security system, known as Command, Control, Communications, Coordination and Integration (C4I), was begun in advance of the 2004 Summer Olympics and deployed during the Games. It is composed of sensors, communications, and command and control software.
"We have reached a mutually beneficial agreement that allows SAIC and its teammates to deliver the final modifications to the C4I system linking the police, fire, ambulance and coast guard departments," said Ken Dahlberg, SAIC chairman of the Board and chief executive officer. "We're pleased with this resolution and look forward to continuing cooperation with the Greek Ministry of Public Order to complete the program."
The contract modification clarifies the parties' obligations on this large contract, which had fallen into dispute. The original contract price was euro 259M. The modification, executed on March 29 resulted in a euro 4M immediate reduction, with the final price to be determined by processes identified in the modification.
"Through very significant efforts for more than a year, we and our customers have produced a well-defined contract modification. We now have a clear path leading to contract completion," said Donald H. Foley, the SAIC executive vice president involved directly in the negotiation of the modification.
Last week's modification to the contract provides for SAIC, with its subcontractors, to deliver enhanced command and control software, as well as upgraded coast guard boat video and port security subsystems over a schedule ending in calendar 2008 to meet the post-Olympic needs of the Greek State. In addition, SAIC, with its subcontractors, will provide maintenance of the subsystems for a period of up to five years following subsystem acceptance. In turn, within 70 days of the modification signing, the Greek government will accept the already completed 20 subsystems at a maximum reduction of euro 7M from the original contract price. Additionally, the Greek government will make a euro 26M payment in approximately 30 days to compensate SAIC for previously performed work.
SAIC had initiated arbitration of the dispute before the International Chamber of Commerce while continuing to negotiate the modification. With the signature of the modification last week, the ICC arbitration proceeding between the parties was dismissed.
SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 44,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers' mission-critical functions. SAIC had annual revenues of $7.8 billion for its fiscal year ended January 31, 2006.
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