ARPA-E Awards Booz Allen $550M Contract to Support Energy Technology Innovation

Rhea-AI Summary

Booz Allen Hamilton (BAH) secures a $550 million 10-year contract from ARPA-E to advance innovative energy technologies, reduce emissions, enhance energy efficiency, and strengthen the U.S. power grid.

Insights

Energy Policy Analyst

The awarded contract to Booz Allen Hamilton by the U.S. Department of Energy's ARPA-E signifies a substantial commitment to advancing energy technologies with the potential to revolutionize the sector. This collaboration is designed to foster innovation in early-stage technologies that are not yet viable for private investment but hold the promise of significantly reducing emissions and enhancing the efficiency and resilience of the U.S. power grid.

From a policy standpoint, this initiative aligns with the broader U.S. strategy to maintain a competitive edge in science and technology, particularly in the context of climate change mitigation. The focus on de-risking technologies to enable long-term funding and deployment is crucial, as it bridges the gap between research and practical application. Such government-backed support can catalyze the commercialization of breakthrough technologies, which may lead to shifts in energy policy and regulatory frameworks to accommodate new forms of generation, storage and usage.

Environmental Economist

The environmental and economic implications of the contract are intertwined. The investment in technologies that aim to reduce the climate impact aligns with a growing demand for sustainable energy solutions and could lead to job creation in the green tech sector. An economist would evaluate the potential multiplier effects of this investment, such as how it could stimulate further research and development, create ancillary industries and ultimately contribute to economic growth.

Moreover, the shift towards more resilient and reliable energy systems has the potential to reduce costs associated with power outages and inefficiencies. The environmental economist perspective emphasizes the long-term cost savings and environmental benefits that can be realized through such strategic investments in innovation, which may also enhance the U.S. position in the global market for clean energy technologies.

Technology Innovation Analyst

The role of Booz Allen Hamilton in supporting ARPA-E extends beyond mere financial investment; it encompasses identifying challenges, fostering an innovation ecosystem and conducting technical reviews. This holistic approach to innovation management can accelerate the development of groundbreaking technologies that have the potential to disrupt the status quo in the energy sector.

An analyst specializing in technology innovation would assess the potential market impact of these emerging technologies, considering factors such as scalability, integration with existing infrastructure and the readiness of the market to adopt new solutions. The emphasis on derisking technologies is particularly significant, as it can increase the attractiveness of these technologies to private investors and facilitate a smoother transition from government-funded research to commercially viable products.

Expands ability to advance game-changing tech to meet U.S. energy goals, reduce climate impact

MCLEAN, Va.--(BUSINESS WIRE)-- Booz Allen Hamilton (NYSE: BAH) announced today it was awarded a ten-year $550 million contract from the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) to support the advancement of high-potential, high-impact, early-stage technologies that generate, store, and use energy in entirely new ways to reduce U.S. emissions, improve energy efficiency, and increase the resiliency and reliability of the U.S. power grid. Booz Allen was instrumental in the stand up of ARPA-E in 2009 and has been a key mission partner since Day One. The company serves as primary technical and operations support to ARPA-E—an organization that, in the words of its first director Dr. Arun Majumdar, was tasked with identifying, shepherding, and accelerating “…the stuff that sounds crazy until it changes the world.”

A funding and technology agency, ARPA-E will be supported under this contract by Booz Allen to help identify energy mission needs, support an innovation ecosystem to drive emerging technology that promises to meet the nation’s energy goals—but that is too nascent for private sector investment—and then de-risk it in order to secure long-term funding and deployment for impact. This work draws from Booz Allen’s more than 50 years of support for government ARPA programs, including for health (ARPA-H), intelligence (IARPA) and defense (DARPA); and more than 10 years specifically supporting ARPA-E; in addition to Booz Allen’s own corporate venture capital arm, Booz Allen Ventures, which identifies and invests in early-stage technology poised to transform mission outcomes for the public sector.

“We are proud to be ARPA-E’s partner in powering the critical mission to enhance the U.S. competitive position in science and technology, improve environmental wellbeing, and solve the most pressing climate challenges using novel technology,” said Mike Miller, leader of the company’s ARPA-E work and its broader civilian energy business. “Booz Allen empowers its people to change the world, and our team is doing just that—upsetting the status quo in energy technology, operating like a startup, and advancing an ecosystem where not-yet-invented technology can rise and be deployed for good.”

Under the contract, Booz Allen’s multidisciplinary team, which includes over 50 Ph.D.s, will support the entire lifecycle of early-stage technology for ARPA-E with an emphasis on supporting ARPA-E awardees’ efforts to derisk their emerging technologies. Leveraging deep mission knowledge, Booz Allen will identify climate and energy challenges that would benefit from emerging technology, then work to build and support an ecosystem to innovate—including developing competitions to fuel innovation, like “Shark Tank”—followed by technical reviews and funding to make true impact.

More than 160 Booz Allen employees support the company’s ARPA-E work, bringing a whole-of-organization approach to the portfolio through its engineers, scientists, analysts, and project managers with capabilities including digital/IT transformation, project management, finance, and AI and machine learning (ML). Work on the contract will take place in Washington, DC, at ARPA-E’s headquarters.

Booz Allen has been instrumental in recent ARPA-E successes including the first-ever hybrid-electric flight to Alaska, the first commercial direct Air Capture facility, the world’s first dedicated manufacturing line for thermophotovoltaic (TPV) cells, and more. Since Booz Allen helped stand up ARPA-E and create its technology-to-market model:

• 230 projects have attracted more than $12.1 billion in private-sector, follow-on funding
• More than 150 new companies have been formed
• 7,318 peer-reviewed articles have been published
• 1,120 new U.S. patents and 405 licenses have been created

“With this work, we’re not looking for merely incremental improvements to our energy innovation ecosystem—we’re seeking game-changing, disruptive solutions that radically improve U.S. economic prosperity, national security, and environmental wellbeing,” said Ben Getto, principal at Booz Allen and program manager of the ARPA-E work. “Booz Allen is proud to be ARPA-E’s mission partner in empowering America’s energy researchers and technologists with funding, technical assistance, and market-readiness efforts to quickly catalyze cutting-edge areas of energy research for the betterment of our world.”

This win builds on Booz Allen’s growing portfolio of energy and climate-related efforts including the re-building of a climate-resilient Tyndall Air Force Base in Panama, Florida, using digital twin technology; leveraging AI and ML to derive climate intelligence to track and make sense of data to make timely, scientifically grounded decisions in climate change-impacted areas of policy, mission, and business; and long-standing support for energy, resources, and utilities clients.

Read more about Booz Allen’s support of ARPA-E.

About Booz Allen Hamilton

Trusted to transform missions with the power of tomorrow’s technologies, Booz Allen Hamilton advances the nation’s most critical civil, defense, and national security priorities. We lead, invest, and invent where it’s needed most—at the forefront of complex missions, using innovation to define the future. We combine our in-depth expertise in AI and cybersecurity with leading-edge technology and engineering practices to deliver impactful solutions. Combining more than 100 years of strategic consulting expertise with the perspectives of diverse talent, we ensure results by integrating technology with an enduring focus on our clients. We’re first to the future—moving missions forward to realize our purpose: Empower People to Change the World^®.

With global headquarters in McLean, Virginia, our company employs approximately 33,800 people globally as of December 31, 2023 and had revenue of $9.3 billion for the 12 months ended March 31, 2023. To learn more, visit www.boozallen.com. (NYSE: BAH)

Forward Looking Statements

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These forward-looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in or implied by these forward-looking statements, including those factors discussed in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, which can be found at the SEC’s website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

BAHPR-CW – Contract win

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312855576/en/

Media Relations: Amanda Allison-Martini, Allison_Amanda@bah.com

Investor Relations: Nathan P. Rutledge, Rutledge_Nathan@bah.com

Source: Booz Allen Hamilton Holding Corporation

FAQ

What is the contract amount Booz Allen Hamilton (BAH) secured from ARPA-E?

Booz Allen Hamilton secured a $550 million 10-year contract from ARPA-E.

What are the main objectives of the contract between Booz Allen Hamilton (BAH) and ARPA-E?

The main objectives are to advance high-potential technologies, reduce U.S. emissions, improve energy efficiency, and enhance the resiliency and reliability of the U.S. power grid.

How long is the contract duration between Booz Allen Hamilton (BAH) and ARPA-E?

The contract duration is ten years.

What is the role of Booz Allen Hamilton (BAH) in supporting ARPA-E?

Booz Allen Hamilton provides technical and operations support to ARPA-E, helping identify energy mission needs, drive emerging technology, and secure long-term funding and deployment for impact.

Where will the work under the contract take place?

The work will take place in Washington, DC, at ARPA-E's headquarters.