Booz Allen Hamilton Secures $506 Million Contract to Drive Innovation for U.S. Army Aviation

Rhea-AI Summary

Booz Allen Hamilton (NYSE: BAH) has secured a $506 million contract to support the U.S. Army's Future Vertical Lift Cross Functional Team and Program Executive Office Aviation. This five-year contract, the company's largest Information Analysis Center Multiple Award Contract Task Order to date, focuses on implementing a Modular Open Systems Approach (MOSA) strategy.

The project aims to develop, integrate, and field critical technologies for warfighters, enhancing Reliability, Maintainability, Quality, Supportability, and Interoperability (RMQSI) for weapons systems. Booz Allen will lead a nationwide team of over 20 businesses and universities, providing expertise in digital engineering, analytics, cyber, exercise planning, and software development.

Positive

• Secured a $506 million contract with the U.S. Army
• Largest Information Analysis Center Multiple Award Contract Task Order to date
• Leading a team of over 20 businesses and universities
• Opportunity to showcase expertise in digital engineering, analytics, and cyber

Negative

• None.

Insights

Financial Analyst

The $506 million contract secured by Booz Allen Hamilton (NYSE: BAH) is a significant win for the company. This five-year deal, being their largest Information Analysis Center Multiple Award Contract to date, demonstrates BAH's strong position in the defense technology sector. The contract's focus on innovative technology solutions for the U.S. Army's Future Vertical Lift program could potentially lead to long-term revenue streams and enhanced market share. However, investors should note that government contracts can be subject to budget fluctuations and political changes. The collaboration with over 20 businesses and universities suggests a diversified approach, potentially mitigating risks and enhancing execution capabilities.

Defense Technology Expert

Booz Allen's role in championing a Modular Open Systems Approach (MOSA) for the U.S. Army is strategically significant. MOSA is increasingly important in defense technology, allowing for greater flexibility, cost-effectiveness and rapid integration of new capabilities. The focus on Reliability, Maintainability, Quality, Supportability and Interoperability (RMQSI) aligns with the DoD's priorities for future combat systems. BAH's expertise in digital engineering, analytics and AI/ML-assisted data analytics positions them well to drive innovation in this space. The involvement in high-profile demonstrations like Project Convergence could lead to additional contract opportunities and solidify BAH's reputation as a key innovator in defense technology.

Market Research Analyst

This contract win could potentially boost investor confidence in Booz Allen Hamilton. The company's stock (NYSE: BAH) may see positive momentum as the market digests the news. The five-year duration of the contract provides a degree of revenue visibility, which is often valued by investors. However, it's important to consider the competitive landscape in the defense contracting sector. While this win strengthens BAH's position, other major players are also vying for similar high-value contracts. Investors should monitor BAH's ability to deliver on this contract and secure follow-on work, as these factors will be important for long-term growth and maintaining their competitive edge in the defense technology market.

Enhances Modular Open Systems Approach for U.S. Army

MCLEAN, Va.--(BUSINESS WIRE)-- Booz Allen Hamilton (NYSE: BAH) today announced it secured a $506M contract for the U.S. Army’s Future Vertical Lift Cross Functional Team (FVL CFT) and Program Executive Office Aviation (PEO AVN) in support of the U.S. Department of Defense’s mission to enhance military capabilities through innovative technology solutions. Under this five-year contract, Booz Allen will champion a Modular Open Systems Approach (MOSA) strategy, driving the development, integration, and fielding of critical technologies to empower the nation’s warfighters.

As the company’s largest Information Analysis Center Multiple Award Contract (IAC MAC) Task Order to date, this contract affirms Booz Allen’s position as a key technical innovator to support critical mission capabilities. Booz Allen was awarded this contract under the Defense Technical Information Center IAC MAC vehicle, in collaboration with the U.S. Air Force’s 774th Enterprise Squadron, to develop and create new knowledge for the enhancement of the Defense Technical Information Center (DTIC) repository and the Research and Development (R&D) and Science and Technology (S&T) community.

“Booz Allen is committed to supporting the U.S. military with the expertise and technological advancements needed to foster an ecosystem of innovation and deliver solutions at the speed of need for emerging missions,” said Tim Lawrence, executive vice president at Booz Allen and leader of the company’s Army portfolio. “This opportunity allows us to collaborate with a nationwide team of companies and academic institutions, leveraging our collective knowledge and diverse expertise to deliver agile, efficient, and state-of-the-art systems for the nations dedicated warfighters.”

The FVL CFT, PEO Aviation, and Booz Allen will partner under this MOSA-focused vehicle to develop and integrate critical combat systems supporting Army aviation vertical lift capabilities in future multi-domain operations. To support this mission, Booz Allen assembled a nationwide team of over 20 large and small businesses, as well as universities.

“The FVL CFT and PEO Aviation created a contract with the goal to close the gap between science and technology discovery and experimentation, and rapid deployment of critical technology to the battlefield,” said Brian Orr, vice president at Booz Allen and leader of the company’s Army Aviation portfolio. “We assembled the right team of national partners to help improve the survivability, lethality, sustainability, and integration of Army Aviation’s enduring fleet and future systems.”

The project aims to enhance Reliability, Maintainability, Quality, Supportability, and Interoperability (RMQSI) for weapons systems while evaluating new technologies for potential implementation across a range of programs and responsibilities. This includes support for annual technology demonstrations such as Project Convergence (PC), Experimental Demonstration Gateway Events (EDGE), and other named experimentation and demonstration events.

Booz Allen will play a key role in providing expertise in digital engineering, analytics, cyber, exercise planning and execution, and software development. Booz Allen leads the team and will determine the best solution providers to support specific U.S. government task order requirements. Booz Allen’s expertise in model-based systems engineering (MBSE), Scaled Agile Framework (SAFe) at scale, modeling and simulation, experimentation, platform integration, manufacturing, and AI/ML-assisted data analytics will play a vital role in driving success under this contract.

Learn more about Booz Allen’s support for the U.S. Army.

About DoD IAC Program

The DoD IAC, sponsored by the Defense Technical Information Center, provides technical data management and research support for DoD and federal government users. Established in 1946, the IAC program serves the DoD science & technology (S&T) and acquisition communities to drive innovation and technological developments by enhancing collaboration through integrated scientific and technical information development and dissemination for the DoD and broader S&T community.

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 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.

Disclaimer. “This material is based upon work supported by the DoD Information Analysis Center Program (DoD IAC), sponsored by the Defense Technical Information Center (DTIC) under Contract No. FA8075YYD00XX.”

Approved for Public Release, Distribution Unlimited. “Any opinions, findings and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the DoD”

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240806557891/en/

Media Relations: Michael Keebler, Keebler_Michael@bah.com

Investor Relations: Investor_Relations@bah.com

Source: Booz Allen Hamilton Holding Corporation

FAQ

What is the value of Booz Allen Hamilton's new contract with the U.S. Army?

Booz Allen Hamilton (BAH) has secured a $506 million contract with the U.S. Army's Future Vertical Lift Cross Functional Team and Program Executive Office Aviation.

What is the duration of Booz Allen Hamilton's new U.S. Army contract?

The contract secured by Booz Allen Hamilton (BAH) with the U.S. Army is a five-year contract.

What strategy will Booz Allen Hamilton implement under this new U.S. Army contract?

Under this contract, Booz Allen Hamilton (BAH) will champion a Modular Open Systems Approach (MOSA) strategy for the U.S. Army.

What areas of expertise will Booz Allen Hamilton provide in this U.S. Army contract?

Booz Allen Hamilton (BAH) will provide expertise in digital engineering, analytics, cyber, exercise planning and execution, and software development for the U.S. Army contract.