Booz Allen Wins Places in Pentagon Contracts Worth Up to $983 Million

The company was chosen to bid on task orders to perform homeland security and space and naval warfare work.

Apr 16, 2014 at 10:14AM

The Department of Defense awarded 13 defense contracts Tuesday, worth $2.79 billion in combined value. Consulting firm Booz Allen Hamilton (NYSE:BAH) won places in two of them.

Booz's (potentially) bigger award, worth $900 million in total value to all participants, came when the company was named one of a dozen awarded pieces of a $900 million contract for Homeland Defense and Security Technical Area Tasks. Specifically, this contract covers the performance of R&D work, testing and evaluation, and advisory and assistance related to chemical, biological, radiological, and nuclear defense, homeland defense and security, critical infrastructure protection, weapons of mass destruction, biometrics, medical matters, cultural studies, and alternative energy.

Booz will bid against the other companies winning places under the contract (other publicly traded firms winning parts of the contract include Jacobs Technology (NYSE:JEC), LEIDOS (NYSE:LDOS), and URS Technology (NYSE:URS))  to perform individual task orders with values adding up to the maximum $900 million total value. This contract consists of a one-year base period and four optional year-long extensions, resulting in a contract duration of as much as five years if all options are exercised, and a conclusion date of April 2019.

Booz's (probably) smaller award took the form of an indefinite-delivery/indefinite-quantity, firm-fixed-price, performance-based multiple award contract with provisions for cost-plus-fixed-fee task orders, to be shared among Booz and six other privately held companies. This contract covers the provision of program management and financial management support to be provided to the U.S. Navy's Space and Naval Warfare Systems Center Atlantic through at least April 2015. It has a ceiling value of $83.3 million for the contract's first year, and $250 million if all possible optional extensions are exercised.


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4 in 5 Americans Are Ignoring Buffett's Warning

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Jun 12, 2015 at 5:01PM

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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