How Booz Allen Hamilton Swallowed Washington

Tyler Durden's picture




 

From its origins as a management consulting firm, Booz Allen has quietly grown into a government-wide contracting behemoth, fed by ballooning post-Sept. 11 intelligence budgets and Washington’s increasing reliance on outsourcing. With 24,500 employees and 99% of its revenues from the federal government, its growth in the last decade has been stunning (and until very recently with little to no knowledge from the main street that it even exists).

(click image for large legible version)

 

Via Bloomberg BusinessWeek,

In 1940, a year before the attack on Pearl Harbor, the U.S. Navy began to think about what a war with Germany would look like. The admirals worried in particular about the Kriegsmarine’s fleet of U-boats, which were preying on Allied shipping and proving impossible to find, much less sink. Stymied, Secretary of the Navy Frank Knox turned to Booz, Fry, Allen & Hamilton, a consulting firm in Chicago whose best-known clients were Goodyear Tire & Rubber (GT) and Montgomery Ward.

The firm had effectively invented management consulting, deploying whiz kids from top schools as analysts and acumen-for-hire to corporate clients. Working with the Navy’s own planners, Booz consultants developed a special sensor system that could track the U-boats’ brief-burst radio communications and helped design an attack strategy around it. With its aid, the Allies by war’s end had sunk or crippled most of the German submarine fleet.

That project was the start of a long collaboration. As the Cold War set in, intensified, thawed, and was supplanted by global terrorism in the minds of national security strategists, the firm, now called Booz Allen Hamilton (BAH), focused more and more on government work. In 2008 it split off its less lucrative commercial consulting arm - under the name Booz & Co. - and became a pure government contractor, publicly traded and majority-owned by private equity firm Carlyle Group (CG).

In the fiscal year ended in March 2013, Booz Allen Hamilton reported $5.76 billion in revenue, 99 percent of which came from government contracts, and $219 million in net income. Almost a quarter of its revenue - $1.3 billion - was from major U.S. intelligence agencies. Along with competitors such as Science Applications International Corp. (SAIC), CACI, and BAE Systems (BAESY), the McLean (Va.)-based firm is a prime beneficiary of an explosion in government spending on intelligence contractors over the past decade. About 70 percent of the 2013 U.S. intelligence budget is contracted out, according to a Bloomberg Industries analysis; the Office of the Director of National Intelligence (ODNI) says almost a fifth of intelligence personnel work in the private sector.

It’s safe to say that most Americans, if they’d heard of Booz Allen at all, had no idea how huge a role it plays in the U.S. intelligence infrastructure. They do now.

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Sun, 06/23/2013 - 17:35 | 3684731 LetThemEatRand
LetThemEatRand's picture

Welfare Queen.

Sun, 06/23/2013 - 17:43 | 3684753 prains
prains's picture

so in other words 9/11 was the best thing ever to happen for Booz and its buddies.........hmmmmm?

Sun, 06/23/2013 - 17:47 | 3684768 Cognitive Dissonance
Cognitive Dissonance's picture

One must always ask "Cui bono" when considering the dark side of the universe. After all war IS a racket.

Sun, 06/23/2013 - 18:08 | 3684821 SafelyGraze
SafelyGraze's picture

you're not going to believe this but ..

NBC used to produce a game show called 21. this was back in the nine-teen and 50s.

wait. that's not the amazing part.

the show was *fixed*!  scripted!

wait. that's not the amazing part.

NBC's evening news department somehow had No Idea that the quiz show was faked.

wait. that's not the amazing part.

congress passed a law.

http://www.law.cornell.edu/uscode/text/47/509

It shall be unlawful for any person, with intent to deceive the listening or viewing public—

(1) To supply to any contestant in a purportedly bona fide contest of intellectual knowledge or intellectual skill any special and secret assistance whereby the outcome of such contest will be in whole or in part prearranged or predetermined.

wait. that's not the amazing part.

we are all contestants in a purportedly bona fide contest, but the outcome is in whole or in part pre-arranged

wait. that's not the amazing part.

nobody is prosecuting the perpetrators!

but wait. that's not the amazing part.

nobody seems to mind.

 

Sun, 06/23/2013 - 18:56 | 3684923 Go Tribe
Go Tribe's picture

Baaaaa

Sun, 06/23/2013 - 19:54 | 3685072 Chupacabra-322
Chupacabra-322's picture

Fascism at its finest.

Sun, 06/23/2013 - 19:32 | 3685008 GMadScientist
GMadScientist's picture

None of that was amazing.

Sun, 06/23/2013 - 19:56 | 3685077 Chupacabra-322
Chupacabra-322's picture

What's amazing is how by stealth the US economy has changed from a Capitalism to Fascism incrementally.

Sun, 06/23/2013 - 20:12 | 3685116 GMadScientist
GMadScientist's picture

From Vietnam Fighter Jets and Medicare to KBR/Halliburton No-Bid Contracts and Drugs for Seniors...it's an old and none-too-subtle racket.

 

Sun, 06/23/2013 - 21:18 | 3685283 James_Cole
James_Cole's picture

What's amazing is how by stealth the US economy has changed from a Capitalism to Fascism incrementally.

Capitalism in the US has always been a highly segregated phenomenon. Ever since the giant bank bailout in 1930 it's been a joke to call the US 'capitalist.'

Mon, 06/24/2013 - 01:04 | 3685658 piliage
piliage's picture

What's truly amazing is that a company with 5bil in revenue based on elephant sized insider government contracts only has a profit margin (ie is only paying taxes) of 4%. Some serious 'tax-management' is going on there.

Sun, 06/23/2013 - 21:11 | 3685254 Suraj Corominas
Suraj Corominas's picture

How does WWE wrestling get around that law?

Sun, 06/23/2013 - 21:57 | 3685374 Clever Name
Clever Name's picture

It was ruled as 'entertainment' and not an actual sporting event/competition years ago.

Sun, 06/23/2013 - 20:42 | 3685185 Cui Bono
Cui Bono's picture

Go ahead CD, you may ask Cui Bono what you will.... Wait, I think I sense your question... No Cui is not related to Sonny...

Sun, 06/23/2013 - 22:42 | 3685467 Cognitive Dissonance
Cognitive Dissonance's picture

But there IS a strong resemblance.

Sun, 06/23/2013 - 17:47 | 3684776 CH1
CH1's picture

Dwight Eisenhower was SOOOOO right.

Sun, 06/23/2013 - 18:36 | 3684857 Taint Boil
Taint Boil's picture

 

 

Every gun that is made, every warship that is launched, every rocket that is fired, signifies a theft from those that are hungry and are not fed, those who are cold and are not clothed.  This world in arms is not spending money alone.  It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. --Dwight D. Eisenhower

When people speak to you about a preventive war, you tell them to go and fight it. After my experience, I have come to hate war. War settles nothing: Dwight David Eisenhower

All of us have heard this term 'preventive war' since the earliest days of Hitler. I don't believe there is such a thing; and, frankly, I wouldn't even listen to anyone seriously that came in and talked about such a thing: Dwight Eisenhower

If you want total security, go to prison. There you're fed, clothed, given medical care and so on. The only thing lacking... is freedom. ”

Dwight D. Eisenhower

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”

Dwight D. Eisenhower


Sun, 06/23/2013 - 18:59 | 3684931 Go Tribe
Go Tribe's picture

Alright, we know what he said.

Now, what did he DO?

Sun, 06/23/2013 - 19:02 | 3684941 Taint Boil
Taint Boil's picture

 

 

Just a puppet like all the others .......????? He did what he was told to do???

Sun, 06/23/2013 - 20:50 | 3685212 SuccorMoney
SuccorMoney's picture

He balanced the budget, for one thing. I like Ike.

Mon, 06/24/2013 - 06:54 | 3685948 mvsjcl
mvsjcl's picture

Pose for the one dollar coin?

Sun, 06/23/2013 - 19:02 | 3684944 LeisureSmith
LeisureSmith's picture

Invent/create problem. Solve problem for money. Use money to grow, invent larger problems and blackmail/buy influence. Repeat.

Look mom! I invented Cancer AND Chemo.

 

Sun, 06/23/2013 - 20:07 | 3685104 Wave-Tech
Wave-Tech's picture

Classic: Problem / Reaction / Solution

Sun, 06/23/2013 - 20:30 | 3685150 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

HEGEL LIVES!

Sun, 06/23/2013 - 23:42 | 3685567 logically possible
logically possible's picture

"So in other words 9/11 was the best thing ever to happen to Booz and buddies"

The majority of Booz Allen is owned by Carlyle Group, Carlyle Group originated from George Bush Sr. and the Bin Laden family. Carlyle landed government contracts to supply  war goods. Among many other things.
Google, Carlyle Group Bush connection to Bin Laden
This was all exposed back during the Iraq war, but the sheeple found it to unbelievable, and beyond comprehension.
Snowden has just exposed more of the dots to be connected.

Mon, 06/24/2013 - 01:23 | 3685679 Kiwi Pete
Kiwi Pete's picture

Interesting.  I did Ixquick that (nobody Googles any more, do they?)  and found this article published by the NY Times date 26 October 2001:

 

https://www.nytimes.com/2001/10/26/business/bin-laden-family-liquidates-holdings-with-carlyle-group.html

 

Aparrantly they decided to liquuidate their holding after 9/11 to forestall any criticism that they were profiting from the war on terror.

Sun, 06/23/2013 - 18:21 | 3684843 Jack Burton
Jack Burton's picture

Indeed Rand. These greedy corporate bloodsucking bastards hate us for our freedoms. Meanwhile Obama is now sending weapons direct to Al-qaeda terrorists and cannibals. See the irony in all this? WHat do the loyal Republicans say about the corporate interests who suck Washington dry?

Sun, 06/23/2013 - 18:40 | 3684884 Larry Dallas
Larry Dallas's picture

Yes. Every day it becomes more apparant that 9/11 created one of the most profitable industries since WW2. Anti-terrorism.

War is never accidental. It is always carefully manufactured. 

- Larry Dallas, 2013

Sun, 06/23/2013 - 20:41 | 3685183 Kirk2NCC1701
Kirk2NCC1701's picture

"War is never accidental. It is always carefully manufactured." - Larry Dallas, 2013

So is consent.  Chomsky was right on that.

Sun, 06/23/2013 - 17:38 | 3684741 francis_sawyer
francis_sawyer's picture

It’s safe to say that most Americans, if they’d heard of Booz Allen at all, had no idea how huge a role it plays in the U.S. intelligence infrastructure. They do now.

~~~

It’s SAFER to say that most Americans, still haven't heard of Booz Allen & had no idea that he was such a good dancer & could get to the FINALS on DWTS...

Sun, 06/23/2013 - 17:56 | 3684802 involuntarilybirthed
involuntarilybirthed's picture

That is probably a fair statement, the SAFER one.  However, it is never the masses that watch over the ideals of a nation, it's framework or its constitution.  And in this case, sadly, neither is Washington.  Like artist and muscians, there are those few that take a keen interest (not just flag waving kind) in not just the history but of the workings of our nation and like a religion take it  seriously.  This lot is larger than one would think. 

Sun, 06/23/2013 - 18:31 | 3684845 francis_sawyer
francis_sawyer's picture

"However, it is never the masses that watch over the ideals of a nation, it's framework or its constitution.  And in this case, sadly, neither is Washington.  Like artist and muscians, there are those few that take a keen interest (not just flag waving kind) in not just the history but of the workings"

~~~

Yeah ~ likewise there are some who "wave the flag & CHEER" because ZH hit it's billionth set of eyes [other thread]... Then ~ there are some who wonder why the "Luciferian Anti-Defamation League" in Switzerland has stunted full panorama commentary [& moreso, why veterans of ZH aren't vocally pissed off about it or why their fingers get mangled up in 'FUCK YOU BERNANKE' comments]...

Nowadays ~ Around here... "They're NOT [that], they're [this]" SMG gets 68 upvotes for saying 'Alexander' should be arrested' [which is probably true ~ but what's the fucking use]?...

Instead ~ sawyer gets 9 "junks" for pointing out the TRUTH that 'FIGHT CLUB' has been compromised...

 

Sun, 06/23/2013 - 20:13 | 3685118 espirit
espirit's picture

@ francis

Unfortunately, most everything has been compromised.  Until the poor get hungry ~ really hungry ~, there will be no change / no quarter given.

Mon, 06/24/2013 - 04:15 | 3685797 Bring the Gold
Bring the Gold's picture

I dunno, I don't really miss the Stormfront days of ZH seeing as my girlfriend is Jewish, my kid's mother is 1/2 jewish making him a 1/4 jewish. Back in the day I got a bit tired of the comment section FLOODED with Mein Kampfesque Komments. I don't miss that at all. I think you can make PLENTY of criticism about a variety of subjects including Israel and it's on the level. All the racist and religious non-sense that used to be on here isn't missed by me. Does that mean ZH is compromised? I guess if you think anything that doesn't allow endless KKK rallies to take place in the comment section is compromised then yeah. I've been on ZH for a LOOOONG time long before I made this handle, back in the junk days when Marla still commented and basically not too long into 2009 via JSMineset linking to ZH. I don't miss all the racist shit from shortly after this site got a real cult following one bit. That's just me though. I don't see it as a curtailing of freedoms so much as a reasoned discourse being allowed with plenty of F-bombs etc.

Mon, 06/24/2013 - 05:02 | 3685838 Disenchanted
Disenchanted's picture

So we should always defer to the feelings of the 2%'ers when they're playing their victim cards?

"Is it good for the Jews?"

 

As long as the 2%(or less) are happy and their feelings not hurt, fuck everybody else...

 

 

Just out of curiousity Bring the Gold, do you buy into the the Jewish Exceptionalism('the Chosen') meme? Because I think it's straight up bullshit...the same IMO goes for American Exceptionalism.

Those who are the NoRD police can suck it. Don't like my 'contributions' here then fucking ban me already. It wouldn't be the first time, and probably not the last.

Mon, 06/24/2013 - 05:32 | 3685862 awakening
awakening's picture

Here you go Francis, I'll leave it up to you to read the Eulogy.

http://www.zerohedge.com/news/2013-06-23/one-billion-anniversary#comment...

Sun, 06/23/2013 - 17:47 | 3684755 Cognitive Dissonance
Cognitive Dissonance's picture

One of the ways it remains under the radar is its prolific use of subcontractors, both companies and individuals. While it may have nearly 25k actual employees I suspect it "employs" double or triple that number.

Sun, 06/23/2013 - 17:46 | 3684767 falak pema
falak pema's picture

booz and booze; their initial consultancy work was desgn of submarine toilets seats, their cut on navy toilets historically is 30% of sale price. Imagine how much shit that can accumulate; especially in Nam, Irak and Afgh. 

Nato toilets are the most awesome all over europe, as for each strategic meeting you have a team sitting n shitting from each kountry; then came 120 bases around "terrorista" land of ME; wow, the number of toilet seats and Booz margins just spiked, literally oozed Brown n Root, turds n all, from singing Haliburton we love ya, Amen!  

Sun, 06/23/2013 - 19:34 | 3685012 GMadScientist
GMadScientist's picture

Watch out for the "shocky" ones though; electric bidet will have you retentive for weeks even after the twitching subsides.

 

Mon, 06/24/2013 - 05:46 | 3685868 Parrotile
Parrotile's picture

DIY Tire-Iron colonoscopy anyone?? http://www.howpilgrim.com/how-colonoscopy-tire-iron.htm

http://www.electricbidet.com.au/ -The KIA version might be more stylish seeing as they have pinched a Stylist from Audi??

And if you live in the colder parts of the Planet - I'm sure this will be VERY interesting - http://www.biffy.com/biffy-bidet-warmer.html#.UcgVDF9-99A

Sun, 06/23/2013 - 17:46 | 3684769 q99x2
q99x2's picture

Carlyle Group (CG). Same company the funded the 911 terrorist attack on NYC. Imagine that!

Sun, 06/23/2013 - 20:50 | 3685207 Kirk2NCC1701
Kirk2NCC1701's picture

+10  for being the observant one.

It always seems to keep going back to the one of the favorite companies of the  'Arbusto* Familia':  CG.  That and Haliburton & Friends.

This country had a Coup-in-Stages with that family clan.  They locked it up with "W", and "O" is just a captive and front man for where the real decisions get made -- by men, who like him, also get their daily copy of the PDB**.

"I can see clearly now the rain is gone..."

 

* Use translator, ifo you haven't figured it out.

** Presidential Daily Briefing, issued to all sitting and former US Presidents.  Bet ya didn't know that.  ;-)

Mon, 06/24/2013 - 04:19 | 3685800 Bring the Gold
Bring the Gold's picture

It started long before that. When you start looking into Ex-prez who got capped a clear pattern emerges. They thwarted or challenged the Central Bank of the US. The clan you are talking about has been working things pretty good since Pre-WWII and really solidified power in 63 and then again in the 70's when Pappy headed up a certain alphabet soup group. Then you have the whole Irn/cntra thing and yeah. They've been working the heavy bag for awhile. Totally agree with what you are saying though. :)

Sun, 06/23/2013 - 17:51 | 3684790 Sabibaby
Sabibaby's picture

All your governments are belong to us!

Sun, 06/23/2013 - 17:56 | 3684801 kill switch
kill switch's picture
Booze for ALL Ham!
Sun, 06/23/2013 - 18:37 | 3684873 dtwn
dtwn's picture

Did someone say booze?  Who's picking up the first round?

Sun, 06/23/2013 - 17:59 | 3684805 buzzsaw99
buzzsaw99's picture

And their latest claim to fame was hiring Snowden and giving him unfettered access to, well, everything. How funny. You guyz are self leaking... [/hawkeye]

Sun, 06/23/2013 - 18:00 | 3684810 Rustysilver
Rustysilver's picture

Do a check on MITRE. MIT research... You will be suprised.

Sun, 06/23/2013 - 21:39 | 3685336 musket
musket's picture

Rusty...there are many out there that were spawned in the alte 70's and early 80's.  Main reason is that the civilian workforce was so thoroughly "dumbed down" during the acceptance of the professional parasite class into the work force and the systems work just dumbfounded them.

Sun, 06/23/2013 - 21:39 | 3685337 musket
musket's picture

Rusty...there are many out there that were spawned in the alte 70's and early 80's.  Main reason is that the civilian workforce was so thoroughly "dumbed down" during the acceptance of the professional parasite class into the work force and the systems work just dumbfounded them.

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