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National Science Foundation Awards Booz Allen $419M Technology Modernization Contract

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Booz Allen Hamilton (NYSE: BAH) has secured a seven-year, $419 million contract with the National Science Foundation (NSF) to modernize and support the agency's Information Technology Mission Application Support (ITMAS). This includes enhancing the merit review and grants management system, vital for scientific research investments. Booz Allen will leverage its expertise in modern software development, DevSecOps automation, and cloud platform resiliency, alongside AI technologies, to improve NSF's mission-critical systems. The contract continues nearly 20 years of collaboration, emphasizing Booz Allen's role in driving technological and scientific advancement in the U.S.

Positive
  • Booz Allen secured a $419 million, seven-year contract with NSF.
  • The contract involves modernizing NSF's critical grants management system.
  • Booz Allen will utilize AI, DevSecOps automation, and cloud resiliency.
  • Continuation of a nearly 20-year partnership with NSF.
  • Solidifies Booz Allen's position in federal IT and AI services.
Negative
  • The contract is a recompete, indicating potential competition challenges.

The awarding of a $419 million contract to Booz Allen Hamilton by the National Science Foundation is a significant event for the company. Financially, this contract represents a steady revenue stream over the next seven years, which will positively affect Booz Allen's earnings stability and predictability. Such long-term contracts typically lead to improved financial planning and resource allocation.

Booz Allen's historical relationship with NSF, spanning almost two decades, underscores their reliability and effectiveness in delivering complex IT solutions. The recompete win highlights the firm's strong client retention capabilities and might prompt investors to view Booz Allen as a dependable investment, given their ability to secure recurring high-value contracts.

From a broader perspective, the contract showcases Booz Allen's forte in modernizing and digitally transforming government agencies. This long-term engagement, coupled with the implementation of advanced technologies like AI and DevSecOps, positions Booz Allen as a leader in the IT modernization space for federal agencies, potentially attracting more similar contracts in the future.

For retail investors, it’s essential to note that while the contract strengthens Booz Allen's portfolio, the firm's ability to manage and execute such large-scale projects without cost overruns or delays will be important in realizing the full financial benefits of this deal.

The contract between Booz Allen Hamilton and the National Science Foundation places a high emphasis on modern IT solutions, particularly DevSecOps and CloudOps. DevSecOps, which stands for Development, Security and Operations, integrates security practices within the software development lifecycle, ensuring faster delivery of secure software. This approach reduces vulnerabilities and enhances the overall security posture of the NSF's IT infrastructure.

CloudOps, or cloud operations, ensures the efficient management, maintenance and optimization of cloud environments. Given the increasing reliance on cloud computing by federal agencies, Booz Allen's expertise in this area will be critical in maintaining the resilience and scalability of NSF's grant management systems.

Another noteworthy aspect is the utilization of AI technologies. AI has the potential to streamline NSF’s operational efficiency by automating routine tasks, improving data analytics and enhancing decision-making processes. This not only accelerates the grant review process but also allows NSF to handle larger volumes of data, leading to better-funded scientific research.

Leading provider of AI to federal government will leverage IT transformation expertise to help modernize and advance science in U.S.

MCLEAN, Va.--(BUSINESS WIRE)-- Booz Allen Hamilton (NYSE: BAH) announced today it was awarded a seven-year, $419 million contract with the National Science Foundation (NSF) for Information Technology Mission Application Support (ITMAS). With this recompete win, Booz Allen will directly support the modernization and IT operations of the agency’s merit review and grants management system that facilitates critical investments in scientific research—building on Booz Allen’s expertise in managing complex technical mission stacks for the good of the citizen.

For nearly 20 years, Booz Allen has been providing support to NSF to modernize and digitally transform the organization through full systems development services for more than 20 mission-critical applications and provide core product lifecycle tasks and IT-related services. The award also leverages Booz Allen’s decades of experience in driving data-enabled missions for federal government agencies to better serve citizens.

As part of the work, Booz Allen will drive speed and scale to NSF’s mission-critical grants management systems through end-to-end modern software development utilizing scaled agile principles, DevSecOps automation, and cloud platform resiliency. In addition, as the leading provider of AI services to the federal government according to GovWin from Deltek, Booz Allen will leverage innovative technologies such as AI under this contract to positively impact everyday citizens and foster U.S. scientific advancement via NSF’s grants management system.

“Booz Allen is proud to be directly supporting core pillars of NSF to boost investment in critical research and the progression of science,” said Dan Tucker, senior vice president and a leader in Booz Allen’s citizen services business. “This work aligns with Booz Allen’s VoLT business strategy, focused on velocity, leadership, and technology, and further solidifies our position as a key enabler of innovation for ensuring NSF and the nation remain at the forefront of scientific discovery and technological advancements that change the world.”

Under this contract, Booz Allen will provide end-to-end systems development, operations, and maintenance for over 20 NSF mission-critical custom applications in support of NSF’s end-to-end grants lifecycle by acquiring, integrating, and scaling the platforms and technologies needed to power NSF’s critical mission. It is also a follow-on to the Information Technology Solution Integrated Services (ITSIS) contract.

“This recompete win speaks volumes to the collective ingenuity of a diverse and extremely talented team from across the firm, bolstered by our deep NSF mission knowledge and expertise aligned to NSF’s complex technical stack,” said Lane Blackmer, principal at Booz Allen and program manager on the project. “The win required a long history of high-quality delivery, continuous cultivation of new and existing client relationships, and strategic injection of new capabilities such as DevSecOps, CloudOps, and AI to ensure the U.S. is keeping pace in scientific advancement and novel innovation at home.”

Learn more about Booz Allen’s support of critical data-enabled missions, and the company’s AI capabilities.

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 firm employs approximately 34,200 people globally as of March 31, 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.

BAHPR-CW

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

Investor Relations: Lindsay Joyce, investor_relations@bah.com

Source: Booz Allen Hamilton Holding Corporation

FAQ

What is the value of Booz Allen's new contract with NSF?

Booz Allen's new contract with the National Science Foundation (NSF) is valued at $419 million.

What is the duration of Booz Allen's contract with NSF?

The contract between Booz Allen and NSF spans seven years.

What technologies will Booz Allen use in its NSF contract?

Booz Allen will use AI, DevSecOps automation, and cloud platform resiliency.

What systems will Booz Allen support under the NSF contract?

Booz Allen will support NSF's merit review and grants management systems.

How long has Booz Allen been collaborating with NSF?

Booz Allen has been collaborating with NSF for nearly 20 years.

What is the role of AI in Booz Allen's NSF contract?

AI will be leveraged to enhance NSF's grants management system and foster scientific advancements.

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