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by Vault Consulting Editors | May 12, 2011


Booz Allen Hamilton announced yesterday that it would sell its state and local government transportation consulting business to CH2M HILL, a Denver-based consulting and engineering outfit. Booz Allen, itself based in McLean, Virginia, explained that "this transaction enables the firm to better focus on its core federal government work."

CH2M HILL is forking over $28.5 million for the practice group, which Booz Allen says amounts to less than 1 percent of its overall consulting business (at $50 million, the group's annual revenue is nothing to be scoffed at, though it pales in comparison to Booz Allen's $5 billion-plus annual haul). The deal, expected to be completed sometime this fall, will see 150 former Booz Allen employees make the switch to CH2M Hill. All of the practice group's current contracts will carry over to CH2M HILL.

Gary Schulman, senior VP of the practice group in question, suggested that the transferred employees would find CH2M HILL a familiar working environment. "Their culture of ethics, diversity, and inclusivity—combined with their highly integrated business platform and focus on sustainability—makes this an ideal fit for our talented professionals." "Like Booz Allen Hamilton," echoed the group's executive VP, "CH2M HILL has a strong 'client for life' philosophy and a reputation for standing behind its work."

Booz Allen's local and state government transportation business shouldn't be confused with its federal government transportation business, which has long served as the former's older, more successful sibling. Described as "large and growing", the federal practice group boasts big-name clients like the Federal Aviation Administration and Amtrak (though, if my rail-riding experiences are at all representative, they haven't exactly done a bang-up job with this one).

In any case, this move fits the bill for Booz Allen. The federal government has always served as the firm's go-to source for revenue and, coming out of the recession, state and local governments have even less cash to spend on big-money consultants than the feds do.

Despite the minor workforce reduction, Booz Allen still employs more than 25,000 people. CH2M HILL isn't far behind, with roughly 23,000 on payroll.

For more information:
Booz Allen Hamilton Sells State & Local Gov't Transportation Consulting Business


Filed Under: Consulting