Most Top Contractors Increased Business With Federal Government in 2012

A contractor is silhouetted at the Singapore Airshow in 2009. Northrop Grumman is a top federal contractor. A contractor is silhouetted at the Singapore Airshow in 2009. Northrop Grumman is a top federal contractor. Wong Maye-E/AP file photo

A majority of the top 200 government contractors made more money on federal awards last year than in 2011, despite major budgetary cutbacks, according to a report released Wednesday.

Overall, the federal government spent $516.3 billion on contracts in fiscal 2012, down 3.1 percent from fiscal 2011’s total of $532.6 billion, the largest year-over-year decline in inflation-adjusted dollars since 1997, the analysis said. Sixty-four percent of that total went to the top 200 companies doing business with the government.

Bloomberg Government, which published the report, analyzed data from 24 agencies and departments, and in 20 categories of federal purchases. Bloomberg found that many contractors were able to maintain or increase business by focusing on sectors that were not subject to “budget pressures,” such as space vehicles, drones, health information technology and cybersecurity.

Defense contractors topped the list, with Lockheed Martin, Boeing, General Dynamics, Raytheon and Northrop Grumman comprising the top five in the government revenue rankings. Those companies earned $109.6 billion from Uncle Sam in 2012, accounting for one-third of all the money spent on the top 200 contractors, the report said.

At Defense, only the Air Force increased its contract spending from 2011. Overall, Pentagon contract expenditures were down 3.7 percent -- but still made up more than two-thirds of all the government’s private-sector spending measured in the report.

The Defense Department continued its downward trend in April, with a 52 percent decrease in contract spending from the previous month, the report said.

The Education Department saw the biggest spike in contractor spending, doling out $2.1 billion in 2012, a nearly 31 percent increase from 2011. Most of the increase went to student loan servicers, according to Bloomberg. The Transportation Department and U.S. Agency for International Development also increased business with the private sector by more than 15 percent.

The General Services Administration oversaw the biggest drop in contract spending in 2012, with a year-over-year decline of nearly 23 percent.

Thirty-seven companies were new to Bloomberg’s top 200 list, a quarter of which were oil companies. One-third of the companies that jumped 25 or more spots in the rankings were also oil companies. Several additions to the list resulted from a larger company restructuring through spinoffs to focus solely on government business. 

Several additions to the list resulted from a larger company restructuring through spinoffs to focus solely on government business. 

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.