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

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2917472, ~/Articles/ArticleHandler.aspx, 9/1/2015 4:41:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

Today's Market

updated Moments ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:04 PM
BAH $26.29 Down -0.41 -1.54%
Booz Allen Hamilto… CAPS Rating: ***
JEC $39.48 Down -0.93 -2.30%
Jacobs Engineering… CAPS Rating: ***
LDOS $40.36 Down -1.72 -4.09%
Leidos Holdings, I… CAPS Rating: ****
URS $0.00 Down +0.00 +0.00%
URS Corp CAPS Rating: *****