Booz Allen Hamilton

For other uses, see Booz Allen Hamilton (disambiguation).

Booz Allen Hamilton Holding Corporation

Type	Public
Traded as	NYSE: BAH
Industry	Management consulting Government contractor
Founded	1914 (1914)
Founder(s)	Edwin G. Booz James L. Allen
Headquarters	Tysons Corner, Virginia (McLean mailing address), U.S.
Key people	Ralph Shrader, Chairman & Chief Executive Officer John Michael McConnell, Vice Chairman
Services	management and technology consulting
Revenue	US$ 5.859 billion (FY 2012)
Net income	US$ 239.955 million (FY 2012)
Employees	26,000 (2012)
Website	www.boozallen.com

Booz Allen Hamilton Inc. (Booz Allen) is an American consulting firm headquartered in Tysons Corner, Fairfax County, Virginia, with 80 other offices throughout the United States. It is recognized as one of the most prestigious technology consulting firms in the world and one of the best consulting firms to work for by Consulting Magazine. Bloomberg Government ranked Booz Allen as 16th in its listing of industry leaders in the government sector in 2013. Founded in 1914 by Edwin G. Booz, the company is one of the oldest management consulting firms in the world.

Booz Allen Hamilton is engaged in providing management and technology consulting services to the United States government and commercial services. Booz Allen’s services include strategic planning, human capital and learning, communications, operational improvement, information technology work, systems engineering, organizational change efforts, modeling and simulation, program management, assurance and resilience, and economic business analysis.

As of August 2008, what was formerly Booz Allen Hamilton’s parent company (which used the Booz Allen name itself) divided in two. The Booz Allen Hamilton moniker was retained by the half focusing on U.S. governmental matters, with Booz & Company taking sole control of its commercial strategy and international portfolio. Booz Allen Hamilton is majority owned by private equity firm The Carlyle Group, while Booz & Company is owned and operated as a partnership. On November 17, 2010, Booz Allen's shares of common stock began trading at the New York Stock Exchange.

History

Early years

After graduating from Northwestern University in Chicago in 1914, Edwin G. Booz developed the business theory that companies would be more successful if they could call on someone outside their own organizations for expert, impartial advice. This theory developed into a new profession — management consulting — and the firm that would bear his name.

"In 1940, the firm was hired to help the United States Secretary of the Navy with World War II preparations. Since then, Booz Allen has had a hand in several notable private and public engagements throughout its years, such as advising on the breakup of Ma Bell and helping organize the National Football League in the 1960s."

The firm has gone through several name changes is its near-100 years of existence. These include: Edwin G. Booz, Business Engineering Service; Edwin G. Booz Surveys; Edwin G. Booz and Fry Surveys; Booz, Fry, Allen & Hamilton; Booz, Allen & Hamilton; and finally Booz Allen Hamilton.

Organization

In 1970, Booz Allen first went public with an initial offering of 500,000 shares at $24 per share. However, in 1976 public trading ceased in the largest-ever leveraged buyout involving a consulting firm where Booz Allen's partners bought back the stock, through one of the first management buyouts (MBO), and returned the firm to private ownership with a new governance structure. In 2007 managing director Marc Gerencser said that being privately held allowed the firm to consider long-range investments that companies beholden to shareholders might not be able to make.

Prominent client initiatives

Internal Revenue Service

In 1998, Booz Allen was chosen to help the Internal Revenue Service (IRS) modernize and shed its reputation for dismal customer service. The firm developed a strategy for the IRS to reshuffle its 100,000 employees into units focused on particular taxpayer categories: individuals, charities, businesses and so on. "We made some very dramatic changes in the way the IRS is organized," said CEO Ralph Shrader. (Reports from the Government Accountability Office (GAO) have pointed to mixed results, including poor management of the IRS's IT portfolio and contractors.)

New South Wales, Australia

In 1988, the newly elected Greiner State Government commissioned a report into the State Rail Authority (SRA) of New South Wales by Booz Allen Hamilton. The resulting report recommended up to 8,000 job losses, including the withdrawal of staff from 94 country railway stations, withdrawing services on the Nyngan- Bourke line, Queanbeyan - Cooma line and Glen Innes- Wallangarra line, the discontinuation of several country passenger services (the Canberra XPT, the Silver City Comet to Broken Hill and various diesel locomotive hauled services) and the removal of sleeper trains from services to Brisbane and Melbourne. The report also recommended the removal of all country passenger services and small freight operations, but the government did not consider this to be politically feasible. The SRA was divided into business units - CityRail, responsible for urban railways; CountryLink, responsible for country passenger services; FreightRail, responsible for freight services; and Rail Estate, responsible for rail property.

Notable members and alumni

Business

• Jonathan Black - Director, Corporate Affairs, University of Oxford
• Rohit Bhagat - Global Chief Operating Officer, Barclays Global Investors
• Sir (Francis) Christopher Buchan Bland - Chairman of the Royal Shakespeare Company, and former Chairman of British Telecommunications PLC
• Chipper Boulas - Venture advisor in Paris, France and former Vice President of Corporate Strategy, eBay^{[citation needed]}
• Jonathan S. Bush - President, CEO, and Co-founder of athenaHealth
• Art Collins - Chairman and CEO, Medtronic, Inc.
• Tim Collins - Founder and Chief Executive of Ripplewood Holdings
• Edward C. Davies (Ted) - Managing Partner, Unisys Federal Systems
• Karen Fawcett - Director, Standard Chartered Bank Malaysia
• Richard Gay - Senior Vice President of Strategy and Business Operations for VH1 and CMT, MTV Networks
• Rhonda Germany - Vice President of Strategy and Business Development, Honeywell
• Patrick Gorman - Senior Vice President and Chief Information Security Officer (SVP/CISO), Bank of America
• Gerry Horkan - Vice President of Corporate Strategy, Yahoo! Inc.
• Paul Idzik - Executive Vice President and Chief Operating Officer, Barclays PLC
• Abigail Johnson - President of Fidelity Investments
• Raymond J. Lane - General Partner at Kleiner Perkins Caufield & Byers; Chairman of the Board of Trustees at Carnegie Mellon University, former President and Chief Operating Officer of Oracle Corporation and chairman of Hewlett-Packard
• Edward J. O'Hare - Chief Information Officer for the U.S. General Services Administration's's Federal Acquisition Service; former Assistant Commissioner, General Services Administration, and former VP at Dynanet
• Torsten Oltmanns - currently Global Marketing Director at Roland Berger Strategy Consultants and Assistant Prof. at University of Innsbruck
• Todd Y. Park - Co-founder and Chief Development Officer of Athena Health
• Mark DeSantis - Chief Executive Officer of ANGLE Technology Consulting and Management and former CEO and President of Formation3 LLC
• Stan Scoggins - Vice President of Worldwide Digital Assets, Universal Studios
• Owen Nieberg - Chief Operating Officer, All About Braces
• Deven Sharma - President, Standard & Poor's and VP for global strategy at The McGraw-Hill Companies
• Michael Wolf - Former president and COO of MTV Networks

Government

• Wendy Alexander - Labour Party Leader and Member of the Scottish Parliament (MSP).
• Thad Allen - former Coast Guard Admiral Commandant of the United States Coast Guard
• Miles Axe Copeland, Jr. - a prominent U.S. Central Intelligence Agency (CIA) operative who was one of the founding members of the Office of Strategic Services (OSS) under William Donovan.
• Karol Joseph "Bo" Bobko - Retired United States Air Force officer and a former USAF and NASA astronaut.
• James R. Clapper - Director of National Intelligence, formally Undersecretary of Defense for Intelligence, Director of the National Geospatial-Intelligence Agency, Director of the Defense Intelligence Agency, and Lieutenant General in the US Air Force
• Keith R. Hall - Director, National Reconnaissance Office (1997–2001); formerly Executive Director for Intelligence Community Affairs
• Steve Isakowitz - Department of Energy Chief Financial Officer. Former Deputy Associate Administrator, NASA, 2002-2005
• William Benjamin "Bill" Lenoir (Ph.D.) - Former NASA astronaut.
• George E. Little - Media Relations, Central Intelligence Agency (2007-)
• John M. McConnell - Director of National Intelligence (2007–2009); formerly Director of the National Security Agency (1992–96); retired in 1996 as Vice Admiral, United States Navy
• Todd Park, current Chief Technology Officer of the United States and former CTO of the Department of Health and Human Services
• Zoran Jolevski - Ambassador of the Republic of Macedonia in the US.
• Thomas S. Moorman Jr. - Commander, Air Force Space Command (1990–92); Vice Chief of Staff of the Air Force (1994–1997)
• Michael C. Mullen - Assistant Commissioner, U.S. Customs and Border Protection
• Patrick Gorman - Chief Information Officer (CIO), and Assistant Deputy Director National Intelligence (ADDNI), Strategy, Plans, and Policy, ODNI [2]
• Andrew Turnbull - Member, House of Lords (upper Parliament), United Kingdom (2005-); Head of British Civil Service (2002–2005)
• Melissa Hathaway - Director, National Cyber Security Initiative
• General Frederick Frank Woerner, Jr. - Retired United States Army general and former commander of United States Southern Command.
• R. James Woolsey, Jr. - Director of Central Intelligence (1993–95)
• Dov Zakheim - Under Secretary of Defense (Comptroller) (2001–04)

Other

• Joseph Garber - Author
• Olivia Goldsmith - Author of The First Wives Club
• Patricia A. Morrissey - Commissioner, U.S. Department of Health and Human Services (presidential appointee)
• Bruce Pasternack - Former President and CEO of Special Olympics International, former Director of Energy Policy for the Federal Energy Administration, Former board member BEA Systems, currently on the board of trustees of Cooper Union and a board member for Codexis, Quantum Corporation and Symyx Technologies. Author of books on strategy and business.

Criticisms and controversies

SWIFT

In 2006 at the request of the Article 29 Working Group, an advisory group to the European Commission (EC), the American Civil Liberties Union (ACLU) and Privacy International (PI) investigated the U.S. government's SWIFT surveillance program and Booz Allen's role therein. The ACLU and PI filed a memo at the end of their investigation which called into question the ethics and legality of a government contractor (in this case Booz Allen) acting as auditors of a government program, when that contractor is heavily involved with those same agencies on other contracts. The basic statement was that a conflict of interest may exist. Beyond that, the implication was also made that Booz Allen may be complicit in a program (electronic surveillance of SWIFT) that may be deemed illegal by the EC.

Democracy Now!

Another controversy, related to some of the senior staff of Booz Allen (past and present) and related to its performance on some specific U.S. intelligence agency contracts, was brought to light on January 12, 2007 in an interview conducted by Democracy Now! with Tim Shorrock, an independent investigative journalist, and separately in an article he wrote for the Salon online magazine. Through investigation of Booz Allen employees, Shorrock asserts that there is a sort of revolving-door conflict of interest between Booz Allen and the U.S. government, and between multiple other contractors and the U.S. government in general. Regarding Booz Allen, Shorrock referred to such people as John M. McConnell, R. James Woolsey, Jr., and James R. Clapper, all of whom have gone back and forth between government and industry (Booz Allen in particular), and who may present the appearance that certain government contractors receive undue or unlawful business from the government, and that certain government contractors may exert undue or unlawful influence on government. Shorrock further relates that Booz Allen was a sub-contractor with two programs at the U.S. National Security Agency (NSA), called Trailblazer and Pioneer Groundbreaker.

Homeland Security

A June 28, 2007 Washington Post article related how a U.S. Department of Homeland Security contract with Booz Allen increased from $2 million to more than $70 million through two no-bid contracts, one occurring after the DHS's legal office had advised DHS not to continue the contract until after a review. A Government Accountability Office (GAO) report on the contract characterized it as not well-planned and lacking any measure for assuring valuable work to be completed.

According to the article,

A review of memos, e-mail and other contracting documents obtained by The Washington Post show that in a rush to meet congressional mandates to establish the information analysis and infrastructure protection offices, agency officials routinely waived rules designed to protect taxpayer money. As the project progressed, the department became so dependent on Booz Allen that it lost the flexibility for a time to seek out other contractors or hire federal employees who might do the job for less.

Elaine C. Duke, the department's chief procurement officer, acknowledged the problems with the Booz Allen contract. But Duke said those matters have been resolved. She defended a decision to issue a second no-bid contract in 2005 as necessary to keep an essential intelligence operation running until a competition could be held.

See also

• Booz & Company
• Booz Allen Classic
• James L. Allen
• List of United States defense contractors
• John Michael McConnell
• Top 100 US Federal Contractors
• Value Measuring Methodology

External links

• Booz Allen Hamilton official website
• Shorrock, Tim. "Carlyle Group May Buy Major CIA Contractor: Booz Allen Hamilton." Corpwatch, March 8, 2008 (article profiles Booz Allen Hamilton).
• Story about Booz Allen Hamilton from Democracy Now!, May 19, 2008