![]() Part of that decision was due to the desire to have publicly traded shares as part of the compensation of Booz Allen executives.īooz is also better-established than some, given its long history of government contracting. defense spending triggered a downturn in the sector and reduced investors’ appetite for such IPOs. The buyout firm was smart enough to take Booz Allen public right before cutbacks in U.S. The theory has turned out wrong so far for most of these firms, with Carlyle the exception. ![]() “USIS has been fully cooperating with the government throughout this process and we continue to work closely with the Office of Personnel Management to resolve this matter,” Altegrity spokesman Ray Howell said in an email, declining to comment further.Ĭarlyle, Providence, KKR & Co LP KKR.N and General Atlantic LLC all bought businesses in recent years on the assumption that areas such as cyber defense and intelligence remained relatively safe from government spending cuts, and could even prosper if there was more outsourcing of work. ![]() In April, Moody’s Investor Service Inc downgraded Altegrity’s debt deep into junk territory, warning that unless its revenue and earnings rebound significantly in the near term, its capital structure may be unsustainable. This could exacerbate Altegrity’s serious financial woes. The Post said that the problem is so serious that the watchdog plans to recommend to the Office of Personnel Management, which oversees most background checks, that it end its relationship with USIS unless it can show it is performing responsibly. On Thursday, the Washington Post reported that federal investigators have told lawmakers they have evidence USIS repeatedly misled the government about the thoroughness of its background checks, citing people familiar with the matter. USIS is a unit of Altegrity Inc, which in turn is owned by Providence. government watchdog is already examining USIS - the largest private provider of federal government background checks - which conducted a 2011 background investigation into Snowden. Hardest hit may be Providence Equity Partners. One individual has betrayed our trust and confidence, and that shouldn’t be a reflection on everybody else.” Indeed, NSA head General Keith Alexander said on Thursday that “we couldn’t do our job without the support we get from industry. It isn’t as if the Pentagon and related agencies are going to be able to reduce their massive reliance on contractors overnight, nor will they want to, given the huge skill set from the private sector that they rely upon. Still, while the storm could damage some companies, most experts think it will blow over for the industry as a whole. Some contracts may be reduced or taken away from individual firms.Īll of that could hurt revenue and margins in a business that is already under increasing stress because of defense industry cuts, including the sequestration that began hitting in recent months. The result will likely be increased scrutiny of government contractors by the NSA and other parts of the defense establishment, and greater oversight from Congress. There is also concern about how he was able to download many top-secret documents and flee for Hong Kong only about a month after starting in the job, without triggering massive alarm bells. national security.Īmong the questions being asked by lawmakers and investigators are how Snowden, who worked as a Booz contractor at a National Security Agency facility in Hawaii, obtained security clearance despite red flags in his background. ![]() surveillance programs and, according to government officials, badly compromise U.S. The industry is under growing pressure because of a series of apparent security problems that allowed Snowden to leak details of secret U.S. Unlike Carlyle, though, most have not recouped their original investments and some of them may be staring at losses if they sold the assets today. Like Carlyle, a whole host of other private equity firms piled into the defense and intelligence sector between 20, snapping up various contractors and consultants. spy agency contractor Edward Snowden during a news bulletin at a cafe at Moscow's Sheremetyevo airport June 26, 2013. A television screens the image of former U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |