Monday, November 9, 2009

Carlyle Group: Just a PEU, Doing Government's Work

The Carlyle Group did $4 billion in work for Uncle Sam in 2008. The breakdown is (numbers are rounded):

Department of Defense--$2.9 billion
ARMY--$1.5 billion
AIR FORCE--$927 million
NAVY--$432 million
Department of Homeland Security--$256 million (#9)

General Services Administration--$147 million (#11)

Department of Health & Human Services--$112 million (#17)
(DHHS would've been $132 million if Carlyle hadn't exited InteliStaf in 2007)

Department of Treasury--$89 million (#10)

Department of Interior--$70 million (#3)

Department of Transportation-$57 million (#11)

Department of Justice--$48 million (#20)

NASA-$20 million (#70)

Department of Agriculture--$16 million (#50)

Department of Commerce--$7 million (#48)

Department of State--$6 million (#108)
(DOS would've been $28 million had Carlyle held on to USIS)

Department of Energy--$5 million (#90)

Recall the concern over conflicts of interests between government consulting and sales. Northrop Grumman's will sell its TASC consulting unit to KKR and General Atlantic as a result of the new law. The Deal reported:

Northrop chairman and CEO Ronald Sugar, who plans to retire, said in a press release that the sale of Chantilly, Va.-based Tasc "reflects Northrop Grumman's desire to align quickly with the government's new organizational conflict of interest standards." As noted in The Deal Pipeline, defense companies have been under fire for situations in which their consulting arms might be advising on procurement deals on which their weapons side is bidding.

The Carlyle Group has a huge government consulting firm in Booz, Allen, Hamilton. It also has nearly a thousand affiliates ready to support Uncle Sam.