Booz Allen Hamilton

Booz Allen Hamilton is one of the oldest management consulting firms. It was founded back in the year 1914 by Edwin Booz and James L. Allen. Immediately after Edwin Booz graduated from Northwestern University in Chicago, he developed a business theory that external advice from experts to companies would be crucial to any business’s success. He developed this idea and formed a company dealing with management consultancy. This company offered expert and intellectual advice on running of businesses and other institutions. James L. Allen became a partner in 1936. During the preparation of World War II, the firm was hired by the United States Secretary of the Navy to offer consultation services. Over the years, the company has had remarkable achievements both in the private and public sectors notably considering its involvement in the break-up of Ma Bell as the advisors. Booz Allen Hamilton has had a tremendous growth. It has been recognized by Consulting magazine as one of the most distinguished and successful management consulting firm in the sphere of technology. This firm has over 80 offices located in different states, in America. It has its head office in Mclean, Virginia. The government of the United States of America is one the biggest clients of Booz Allen Hamilton. This firm provides consulting services in technology and management to the government and other commercial sectors. The services provided by Booz Allen Hamilton include business economic analysis, assurance, communications, information technology, computer simulation, system development and strategic operational planning.

In 2008, Booz Allen Hamilton firm was divided into Booz Allen Hamilton Moniker and Booz and Company. Booz Allen Hamilton Moniker majorly focuses on providing services to the United States government, while Booz and Company focuses on commercial and international services.

One of the most recent contracts awarded to Booz Allen Hamilton include Bureau of Alcohol and Tobacco Tax and Trade which was awarded at a cost of $53.4 million for Information Technology Management Services. This contract was awarded on April 24th 2012 and is estimated to last for the duration of nine years. Office of Personnel Management contract was awarded at a cost of $2.8 million, which is meant to support the Personnel Investigation Processing System and Imaging System. This particular contract was awarded on April 9th 2012 and is estimated to last for a period of one year and one month. Another contract with the Department of Commerce was awarded on March 1st 2012 from the National Telecommunications and Information Administration for the support of Broadband technology Opportunities Program. This contract was signed to last for a period of three years. Another notable contract was made between Booz Allen Hamilton and the Department of Veterans Affairs, which was awarded on February 28th 2012 at a cost of $17 million from the Office of Information and Technology to support Professional Development and Training Support Services. This contract is estimated to last for a period of one year.  Another major contract with the government was awarded on January 19th 2012 from the US Army Materiel Command for Development and Engineering Communications-electronics research, Development and Engineering Intelligence and Information Warfare Directorate. These contracts were awarded to Booz Allen Hamilton because of their good reputation, professionalism and punctuality in completion any particular work or contract (Alperen, 2011).  

This company has had many major contracts over the years. Advertising and Integrated Marketing Solutions (AIMS) is one of these contracts. It is in the category of Federal Supply Schedule and is available to all Federal Agencies. This contract was awarded to Booz Allen Hamilton since they have skilled workers, who are professionals in the fields of public information, media and marketing. The firm provides customized services depending on the specific clients’ needs at a reasonable price. These tailored services include public affairs, information management, advertising, technology, marketing and corporate communications. These services offered by Booz Allen enable clients to overcome various challenges (Basole, 2008). These challenges include combating global terrorism, perfecting healthcare system, dealing with changes within the government, improving cyber technologies and conserving the environment. Considering the contract Advertising and Integrated Marketing Solutions (AIMS), it is crucial that the involved manpower is chosen and selected on the basis of professional skills and experience. Another fact that should not be overlooked is that a year of education can be substituted for a year of experience, and the other way round. There are two types of costs incurred in this contract; these are direct and indirect costs. Direct cost is a cost that can easily be directly linked to a specific object or a product. Some of the direct costs incurred in this contract include labor costs such as salary payment to Market strategist, designer, project manager, Programmer, Systems Engineer, Information manager, Creative director. Another direct cost incurred in this contract is Production services cost such as Equipment Van, Teleprompter, Make-up kit, Wardrobe fee, Studio rental. The other direct costs involved is the Post Production Services cost include AVID Edit Suite, Linear Edit Suite, Narration Booth, 3D Graphics, CD Mastering and compression.

In addition to the direct costs incurred, there are also indirect costs involved in this contract. Indirect costs are costs that are not directly related or accountable to a product. Some of the indirect costs incurred in this contract include office supplies such as stationeries, costs incurred in departmental support activities such as payment of personnel, who are not directly involved in the production process, costs incurred during research such as cost of movement from one point to another which usually takes before the commencement of any project.

Another contract that has been awarded to Booz Allen Hamilton is Base Radio Systems (BRS) which is an Indefinite delivery, indefinite quantity (IDIQ) and is available to all Departments of Defense (DoD) and federal agencies worldwide. Booz Allen Hamilton provides customers with advice and ensures that they get high quality Base Radio Systems at lower cost. This is achieved by combining technology with strategy and working hand in hand with clients to ensure good results (Kleiner, 2004). Some of the costs associated with this contract include labor cost, which is incurred as a direct cost and also cost incurred during research, which is classified as an indirect cost.

Contracted advisory and assistance services (CAAS) IV is an Indefinite delivery, indefinite quantity (IDIQ) contract which was awarded to Booz Allen Hamilton and is only available to the Air Combat Command (ACC) and the Air Force District Washington (AFDW). The main function of CAAS IV is to provide assistance and advisory services in three major areas including Technical and engineering services providing effective operations and maintenance or direct support of weapon systems in research, production, development and operations. Other functions of CAAS IV are analysis, studies and evaluations in support of management, decision-making, administration and policy developments. The other function is Professional support and management services involving training and assistance in effective management of organizations, activities and systems.

Booz Allen Hamilton has its management structure. Executive manager is at the top of management, who is responsible for controlling the overall performance of the project or contract. The executive manager is the one who meets with a representative of the government program to discuss performance and progress of contracts. He should have a degree of either Bachelor of Science or Bachelor of Arts.

Booz Allen Hamilton announced an initial public offering (IPO) in 2010. Their shares began trading in the New York Stock Exchange. After the IPO, the company grew in both work force and revenue even though service delivery to their clients remained constant and efficient. In their last fourth quarter, Booz Allen Hamilton has seen their profits double as compared to those of the previous year.

 As a company’s mission, Booz Allen Hamilton is dedicated to helping their clients to thrive and survive in a changing world by delivering relevant and practical ideas. In the present business world, management consultancy services are vital while making major decisions such as mergers and acquisitions, initial public offerings (IPOs) tendering of large contracts and even day to day running of business or institutions. Some of the biggest companies in the world have set up a management consultancy department to avoid the cost associated with outsourcing (Alperen, 2011). Companies, which do not have established consulting departments, need consultancy assistance outsource the services from other management consulting firms like Booz and company. This is one of the reasons why consulting companies such as Booz and company are making huge profits.  Both public and private institutions will always have reasons to consult.   


Booz Allen Hamilton has had a tremendous performance on contracts awarded to them from both public and private sectors.  As a result of their good performance and timely completion of contracts, this Company has been able to grow a strong and trustworthy relationship among its clients. The Company has managed to maintain professionalism in their activities, which has led to their massive growth.

Order now

Related essays