Booz Allen Awarded $421M CDM DEFEND Contract

Rhea-AI Summary

Booz Allen Hamilton (NYSE: BAH) has been awarded a significant contract by the U.S. Department of Homeland Security to support the Cybersecurity Infrastructure Security Agency's (CISA) Continuous Diagnostics and Mitigation (CDM) DEFEND program. The three-year task order has a base value of $421 million and a ceiling of $1.2 billion.

Under this contract, Booz Allen will provide cybersecurity tools and expertise to 13 government agencies, including NASA, IRS, and HHS. The company will focus on four key areas: asset management, identity and access management, network security management, and data protection management. Additionally, Booz Allen will help civilian agencies mature their posture against each zero trust pillar.

This award extends Booz Allen's role in deploying cyber capabilities to the federal civilian enterprise and providing actionable data for risk-based decision making, reinforcing its position as a leading systems integrator for the CDM program since its inception in 2014.

Positive

• Secured a major contract with a base value of $421 million and a ceiling of $1.2 billion
• Extended role as a leading systems integrator for the CDM program
• Expanding services to include advancing zero trust maturity for government agencies
• Aligns with company's VoLT (Velocity, Leadership, Technology) business strategy

Negative

• None.

Insights

Financial Analyst

The $421 million base contract with a $1.2 billion ceiling represents a significant revenue opportunity for Booz Allen Hamilton (BAH). This three-year award strengthens BAH's position in the cybersecurity sector, particularly within government contracts. The contract's scope, covering 13 major agencies including NASA and IRS, indicates a substantial market share in federal cybersecurity services. This win could potentially boost investor confidence in BAH's ability to secure high-value, long-term government contracts. However, investors should note that the full $1.2 billion is not guaranteed, as it's a ceiling value. The stock might see a positive short-term reaction, but long-term performance will depend on BAH's execution and ability to capture the full contract value.

Cybersecurity Expert

This contract signifies the critical importance of the CDM program in the U.S. government's cybersecurity strategy. The emphasis on zero trust maturity aligns with current best practices in cybersecurity. BAH's role in deploying capabilities across the federal civilian enterprise positions them as a key player in national cybersecurity. The focus on four areas - asset management, identity and access management, network security management and data protection management - covers crucial aspects of a comprehensive cybersecurity approach. The contract's requirement for rapid response to emerging threats (in minutes or seconds) highlights the evolving nature of cybersecurity challenges. This contract could potentially set industry standards for federal cybersecurity practices.

Government Affairs Analyst

This contract award underscores the U.S. government's commitment to enhancing cybersecurity across federal agencies. The involvement of critical agencies like NASA, IRS and HHS indicates the wide-reaching impact of this initiative. The CDM program's evolution since 2014 shows a sustained focus on cybersecurity at the federal level. BAH's continued involvement since the program's inception suggests a strong, trusted relationship with federal agencies. The emphasis on enabling agencies to mature their zero trust posture reflects an alignment with current federal cybersecurity strategies. This contract could potentially influence future government spending patterns in cybersecurity, possibly leading to similar large-scale initiatives across other sectors of government.

$1.2B award ceiling to support Cybersecurity and Infrastructure Security (CISA) Agency Missions

MCLEAN, Va.--(BUSINESS WIRE)-- The U.S. Department of Homeland Security (DHS) awarded Booz Allen Hamilton (NYSE: BAH) a task order to continue its support for the Cybersecurity Infrastructure Security Agency’s (CISA) Continuous Diagnostics and Mitigation (CDM) DEFEND program, which makes federal government data and networks more resilient against cyberattacks. The three-year award carries a base value of $421 million and a ceiling of $1.2 billion. Booz Allen will provide cybersecurity tools and expertise on behalf of CISA to 13 government agencies, including NASA, IRS, and the Department of Health and Human Services (HHS)—expanding critical incident support to include advancing zero trust maturity.

Recognizing that government networks are increasingly targeted by adversaries, DHS established the CDM program in 2014. Booz Allen has partnered with CISA and federal agencies since CDM’s inception and emerged as a leading systems integrator for the program. This latest award extends Booz Allen’s role in deploying cyber capabilities to the bulk of the federal civilian enterprise and providing actionable data for risk-based decision making.

“The threat environment is constantly evolving and growing more complex as the nation pivots to strategic competition. Federal agencies must be able to respond quickly to emerging threats in a matter of minutes or seconds, not months or weeks, to mitigate risks to U.S. critical infrastructure and civilians,” said Kelly Rozumalski, senior vice president at Booz Allen and a leader in the firm’s National Cyber defense business. “The CDM program is a key mechanism the federal government has to provide visibility across the federal civilian space, and we are proud to support this program to build resilience into the nation’s critical infrastructure.”

Under this contract, Booz Allen will provide integrated solutions and services across four focused areas: asset management, identity and access management, network security management, and data protection management. In addition, as a key deliverable, the firm is charged with enabling civilian agencies to mature their posture against each zero trust pillar, in a coordinated, accelerated way.

“We’re excited for the opportunity to continue our longstanding partnership with CDM, which aligns squarely with our VoLT (Velocity, Leadership, Technology) business strategy to innovate at the speed of need,” said Erica Banks, vice president at Booz Allen and leader of the firm’s CDM portfolio. “While we’ll continue to focus on sustaining operational visibility and implementing critical capabilities, this award also calls for us to reimagine how we can support CDM moving forward. We look forward to helping the nation’s agencies improve their own cybersecurity postures and help them perform critical data-enabled missions in service of millions of Americans every day.”

Read more about Booz Allen’s National Cyber business and how the company supports data-enabled missions across the civil government landscape.

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 110 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 firm employs approximately 35,100 people globally as of June 30, 2024, and had revenue of $10.7 billion for the 12 months ended March 31, 2024. To learn more, visit www.boozallen.com. (NYSE: BAH)

Forward Looking Statements

Certain statements contained in this release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include statements that do not directly relate to any historical or current fact. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,” “projects,” “outlook,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “preliminary,” or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct.

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, 2024, 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.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240829997950/en/

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

Investor Relations: Jason Lee, lee_jason@bah.com

Source: Booz Allen Hamilton Holding Corporation

FAQ

What is the value of the CDM DEFEND contract awarded to Booz Allen Hamilton (BAH)?

The contract has a base value of $421 million and a ceiling of $1.2 billion over three years.

Which government agencies will Booz Allen Hamilton (BAH) support under the CDM DEFEND contract?

Booz Allen will provide cybersecurity tools and expertise to 13 government agencies, including NASA, IRS, and the Department of Health and Human Services (HHS).

What are the four focused areas Booz Allen Hamilton (BAH) will provide solutions for under the CDM DEFEND contract?

Booz Allen will provide integrated solutions and services across asset management, identity and access management, network security management, and data protection management.

How long has Booz Allen Hamilton (BAH) been involved with the CDM program?

Booz Allen has partnered with CISA and federal agencies since CDM's inception in 2014, emerging as a leading systems integrator for the program.