Pentagon Shrinks Value of Booz Allen Contract by 85%


On what appears to have been a slow day for defense contracting, the Department of Defense announced the award of only two contracts on Tuesday -- and one of them was to a small, privately held company that won't interest investors at all.

It wasn't an entirely uneventful day, however.

The Pentagon gave a $22 million indefinite-delivery/indefinite-quantity contract to EMC . This contract calls upon EMC to provide "instrumentation support for instrumentation loading, integration, analysis and display (ILIAD), Enterprise Test Data Management System (ETDMS), Odyssey, and supplies to Air Force test customers." The contract has an estimated completion date of April 2, 2017.

Meanwhile, the DOD had some disappointing news for Booz Allen Hamilton shareholders. You know how we reported last week that Booz Allen got the biggest of several contracts awarded back on March 29?About $59.4 million to provide "additional systems engineering and integration support for launch test and range system programs" for the U.S. Air Force? Well, as it turns out, most of that remains true. However, when the DOD said "$59.4 million," what it really meant to say was "$8.9 million." The Pentagon announced this minor correction today, and the value of Booz Allen's contract instantly shrank by 85%. Oops.

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