Boeing was recently awarded a contract with the Air Force valued at $168.8 million. The company is set to produce, install and support 18 V3 radars and 16 RMP radars by 2022. To the average person, the dollar amounts of such a contract are almost inconceivable, but Boeing regularly accepts and fulfills top-priority government contracts with staggering price tags. A few months’ prior, the company won a $371.2 million contract with the Defense Logistics Agency Aviation to produce support for the F-15.
Duncan Amos, an experienced analyst with Bloomberg Government, explains that the top five government contractors have remained relatively stable over the last ten years. These top five contractors are Lockheed Martin Corporation, Boeing, General Dynamics, Raytheon and Northrop Grumman.
Lockheed Martin is the largest defense company in the world. The company focuses on research, innovating technologies and producing high-quality weaponry and defense systems. The company’s areas of interest include energy systems, data analytics, space technologies, cyber security, robotics, undersea technologies and artificial intelligence. Some of the more notable products they produce include H-50 Black Hawk helicopters, F-2 support fighter jets, advanced cybersecurity software, laser weapon systems, electromagnetic warfare weapons, missile systems and drones.
In the fiscal year of 2015, the company had contracts with the U.S. government totaling over $36.2 billion.
In 2014, the U.S. government provided over 79% of the company’s revenue. In 2015, they were contracted to construct PAC-3 Missiles for the U.S. Army, utilize their Aegis Ashore system with the U.S. Navy, construct communications satellites for the U.S. Navy, build effective long range ballistic missile defense systems with the Missile Defense Agency and complete the Orion spacecraft design with NASA.
While the U.S. government’s budget is a potential limitation for Lockheed Martin, the company is committed to investing into innovation and expanding its customer base. They have countless multi-year contracts with international governments, corporations and customers. This company is very likely to experience continued success and long-term growth.
The Boeing Company is the world’s largest commercial jetliner manufacturer and aerospace company. Operating in more than 150 countries, the business revolves around producing commercial airplanes, integrated defense systems, air traffic control systems, financial services and Connexion by Boing that provides entertainment for flights.
In 2015, Boeing had contracts totaling $16.6 billion with the government. One such contract was awarded by the U.S. Navy and was worth a little over $8 million for logistics support services and maintenance planning for aircraft.
In the past, Boeing has been a great stock market option because the company successfully sells to a wide customer base including the military and civilians. Recently, Boeing has come under fire for considering a large-scale deal with Iran Air. Republican lawmakers have criticized the deal in fear that Iran’s commercial aviation sector deeply supports hostile enemies of the U.S.. The company’s ability to be a defense contractor is being highly questioned, but the company does not solely rely on the government for its revenue.
General Dynamics is an international defense and aerospace company that provided nearly all the U.S. military’s tanks, missiles, submarines and electronic warfare devices up until the early 1990s. The company’s main interests involve aerospace, information, combat, technology and marine systems. They produce products like jet-aircraft, combat and tactical vehicles, tanks, infantry vehicles, rockets, mortar and bomb systems and commercial ships.
General Dynamics is the third largest government contractor with around $13.6 billion worth of contracts in 2015. In 2015, the company accepted a contract with the Army for $92 million to upgrade all their main battle tanks and a $610 million contract with the Pentagon to build a new Arleigh Burke-class destroyer for the Navy. This company is in a great position, and is expected to continue being profitable selling its one-of-a-kind weapons systems and technologies.
The Raytheon company is focused on defense and cybersecurity solutions. The global business specializes in sectors including integrated defense systems, intelligence services, missile systems, space systems and global business services.
Raytheon had $13.1 billion in U.S. government contracts in the last fiscal year. One of the more valuable contracts they secured was a $1 billion contract with the Department of Homeland Security to protect the federal government from cyberweapons.
With the exponential rise of “fake news”, spying concerns and cyberwarfare, cybersecurity has become a vital industry. If Raytheon continues to secure contracts in this area, then you can expect this company to possibly overtake the top three companies in the coming years.
Northrop Grumman is a global security company. The company’s main capabilities include cyber systems, logistics, autonomous systems, C4ISR situational awareness operations and integrated strike systems.
The fifth largest government contractor had over $10.6 billion in contracts in 2015. One of the more important contracts they secured was for the Navy valued at $12.8 billion. The company is to develop and provide MQ-4C Triton UAS, or unmanned drones, for missions.
Northrop Grumman was recently given the largest aviation defense contract in history, overtaking the expected recipient and second largest government contractor Boeing. The contract is valued at $55 billion in exchange for long-range strike bombers for the Air Force. This contract virtually ensures the well-being of this company for years to come.
