Booz Allen Hamilton gets 98 percent of revenue from U.S. govt. IBM, Accenture and Booz in precarious spot.

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Booz Allen Hamilton gets 98 percent of revenue from U.S. govt. IBM, Accenture and Booz in precarious spot. (archive.today)

Memo calls for review of $65 billion in contracts that go to Booz Allen Hamilton and other big firms that do government work.

The Trump administration is looking to cut federal contracts. Few companies stand as exposed as Booz Allen Hamilton BAH -2.71%decrease; red down pointing triangle.

The venerable Washington, D.C., area firm works on projects across the U.S. government. It operates a website visitors use to reserve campsites at national parks. It is modernizing healthcare records for veterans, beefing up technology at the Federal Bureau of Investigation, and rolling out a suite of artificial-intelligence and cybersecurity tools across the Department of Defense and other federal agencies.

A memo sent this week from Stephen Ehikian, the acting administrator of the General Services Administration, calls on procurement officials at federal agencies to list and justify consulting contracts from 10 companies—including Booz Allen, Accenture, Deloitte and International Business Machines—that the agencies intend to keep. The responses are due March 7.

Booz Allen generates 98% of its roughly $11 billion in annual revenue from contracts in which the end client is a U.S. government agency or department. It has told investors that it sees the U.S. government as the world’s largest consumer of management consulting and technology services. Since the election of President Trump in November, its stock is down about 30%.

In the memo, viewed by The Wall Street Journal, Ehikian said the GSA has identified that the 10 highest-paid consulting firms are set to receive more than $65 billion in fees in 2025 and future years. “This needs to, and must, change,” Ehikian wrote, bolding the sentence for emphasis. Some consulting firms say it is unclear how the $65 billion figure was calculated.

Ever since 1940, when Booz Allen took on a project advising the secretary of the Navy ahead of World War II, the company has had a foothold in the federal government. Booz Allen separated its corporate-consulting arm from its government-advisory business in 2008, with the government business retaining the original name.

Booz Allen CEO Horacio Rozanski said the company has been through presidential transitions before, and will weather the reviews of federal contracts.

Booz Allen CEO Horacio Rozanski said the company has been through presidential transitions before, and will weather the reviews of federal contracts. PHOTO: ANDREW HARNIK/GETTY IMAGES Today, the company, which employs more than 34,000 people, operates not as a consulting firm but as a technology company, Chief Executive Horacio Rozanski said in an interview. Booz Allen says it now has one of the largest AI businesses in the federal government. About 70% of its employees work in technology today, up from about 20% in 2012.

Booz Allen has been through presidential transitions before, and will weather the reviews of federal contracts, Rozanski said. The company’s work also aligns with the Trump administration’s priorities, he said.

“We recognize that in the short term there could be some disruption to the market, but in the long term we are really well aligned,” he said. “If the government wants to operate with fewer people, it will need to operate with more technology, and technology that works. And our stuff works, and it works beyond the prototype.” . .

Source (wsj.com)

>Memo calls for review of $65 billion in contracts that go to Booz Allen Hamilton and other big firms that do government work. >The Trump administration is looking to cut federal contracts. Few companies stand as exposed as Booz Allen Hamilton BAH -2.71%decrease; red down pointing triangle. >The venerable Washington, D.C., area firm works on projects across the U.S. government. It operates a website visitors use to reserve campsites at national parks. It is modernizing healthcare records for veterans, beefing up technology at the Federal Bureau of Investigation, and rolling out a suite of artificial-intelligence and cybersecurity tools across the Department of Defense and other federal agencies. >A memo sent this week from Stephen Ehikian, the acting administrator of the General Services Administration, calls on procurement officials at federal agencies to list and justify consulting contracts from 10 companies—including Booz Allen, Accenture, Deloitte and International Business Machines—that the agencies intend to keep. The responses are due March 7. >Booz Allen generates 98% of its roughly $11 billion in annual revenue from contracts in which the end client is a U.S. government agency or department. It has told investors that it sees the U.S. government as the world’s largest consumer of management consulting and technology services. Since the election of President Trump in November, its stock is down about 30%. >In the memo, viewed by The Wall Street Journal, Ehikian said the GSA has identified that the 10 highest-paid consulting firms are set to receive more than $65 billion in fees in 2025 and future years. “This needs to, and must, change,” Ehikian wrote, bolding the sentence for emphasis. Some consulting firms say it is unclear how the $65 billion figure was calculated. >Ever since 1940, when Booz Allen took on a project advising the secretary of the Navy ahead of World War II, the company has had a foothold in the federal government. Booz Allen separated its corporate-consulting arm from its government-advisory business in 2008, with the government business retaining the original name. >Booz Allen CEO Horacio Rozanski said the company has been through presidential transitions before, and will weather the reviews of federal contracts. >Booz Allen CEO Horacio Rozanski said the company has been through presidential transitions before, and will weather the reviews of federal contracts. PHOTO: ANDREW HARNIK/GETTY IMAGES Today, the company, which employs more than 34,000 people, operates not as a consulting firm but as a technology company, Chief Executive Horacio Rozanski said in an interview. Booz Allen says it now has one of the largest AI businesses in the federal government. About 70% of its employees work in technology today, up from about 20% in 2012. >Booz Allen has been through presidential transitions before, and will weather the reviews of federal contracts, Rozanski said. The company’s work also aligns with the Trump administration’s priorities, he said. >“We recognize that in the short term there could be some disruption to the market, but in the long term we are really well aligned,” he said. “If the government wants to operate with fewer people, it will need to operate with more technology, and technology that works. And our stuff works, and it works beyond the prototype.” . . [Source](https://www.wsj.com/business/this-company-gets-98-of-its-money-from-the-u-s-government-doge-is-coming-for-firms-like-it-79db9dc7)

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