The Government Is Investigating A Huge Contractor For Overcharging The Feds

REUTERS/Mike Blake

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The government is investigating consulting powerhouse BoozAllen Hamilton for possible civil and criminal violations in how the company bills for its services, the company announced Thursday.

The Department of Justice is “conducting a civil and criminal investigation relating to certain elements of the Company’s cost accounting and indirect cost charging practices with the U.S. government,” BoozAllen said in a press release.

Indirect cost charges usually refer to the company’s overhead costs that are built in to the contractor’s price quote.

BoozAllen, which makes most of its revenue from federal contracts, and received more than $3.6 billion in government contracts last year according to, said its internal auditors have not identified any erroneous charging.

Upon news of the investigation, BoozAllen’s stock dropped more than 16 percent to its lowest price since the November presidential election last year.

The company also faced criticism for a series of classified leaks by Booz Allen employees. Edward Snowden was a BoozAllen employee when he removed thousands of classified documents from a secure NSA facility in 2013.

Former FBI Director Robert Mueller recently concluded an external audit of the BoozAllen’s security processes, before being tapped as special counsel to investigate possible collusion between President Donald Trump’s campaign and Russia.

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