10 Companies That Make Billions From The U.S. Government

Courtesy Of "CNBC"

1. Lockheed Martin

Contracted in 2010: $35.9 billion* 
Total 2010 revenue: $45.8 billion 
Contracted in 2011, so far: $15.74 billion 
Company Profile 

Headquartered in Bethesda, Maryland, Lockheed’s dependence on contracts from the U.S. Government is no secret. The company researches, designs, develops and manufactures satellites, space vehicles, combat aircraft, missile defense systems, aeronautics and intelligence systems, which are essentially out of the scope of non-government consumers. Lockheed’s biggest contracts in 2010 included a $2.51 billion contract with the Department of Defense for fixed - wing aircraft and a $1.1 billion contract with NASA that included work on the Orion project. 

In Lockheed’s 2010 annual report, the company notes that it derive 84% of sales from U.S. Government customers and 15% of sales to foreign governments. The first entry in the report’s “Risk Factors” section states that “a decline or reprioritization of funding in the U.S. defense budget, that of other customers, or delays in the budget process could adversely affect our ability to grow or maintain our sales, earnings and cash flow.” For the full annual report from Lockheed, click here. 

Pictured: Lockheed Martin's USS Freedom (LCS 1), the first of the U.S. Navy's next-generation littoral combat ships, those that can operate close to shore. 

*Number includes contracts listed for “Lockheed Martin Corporation” and “Lockheed Martin” on USASpending.gov.




2. Boeing (BA)


Contracted in 2010: $19.4 billion
Total 2010 revenue: $63.3 billion
Contracted in 2011, so far: $6.01 billion
Company Profile

Although Boeing’s main sources of revenue are commercial airlines, the Chicago-based company’s Defense, Space & Security segment deals primarily with the U.S. Government. That segment accounts for approximately $32 billion of the company’s $63.3 billion in 2010 revenue.

Boeing’s largest contracts in 2010 were for fixed - wing aircraft, with four contracts alone worth over $1 billion, with the highest individual contract at $1.7 billion. Aside from aircraft, Boeing was also contracted for $645 million by NASA for contracts related to the International Space Station, according to USASpending.gov.

Pictured: A Boeing-made United States Navy F/A-18F Super Hornet takes off from Nellis Air Force Base in Nevada.




3. Northrop Grumman (NOC)

Contracted in 2010: $16.47 billion* 
Total 2010 revenue: $34.8 billion 
Contracted in 2011, so far: $4.04 billion 
Company Profile 

As with most of the highest paid contractors, Northrop Grumman’s largest contracts are also with the Department of Defense, including an individual contract for $1.29 billion for work on aircraft carriers. So far in 2011, Northrop Grumman’s biggest individual contract was a $569 million deal with the U.S. Coast Guard for radio navigation equipment. 

Pictured: An unmanned drone surveillance plane built by Northrom Grumman. 
*Number includes contracts under “Northrop Grumman Corporation” and “Northrop Grumman” on USASpending.gov.


4. Raytheon (RTN)

Contracted in 2010: $14.9 billion 
Total 2010 revenue: $25.18 billion 
Contracted in 2011, so far: $4.33 billion 
Company Profile 

Headquartered in Waltham, Massachusetts, Raytheon’s primary businesses are defense-oriented, with major contracts including several air defense systems, marine combat systems, missile systems and other military products, sold primarily to governments around the world. Raytheon’s most recognizable product by the general public are its Tomahawk cruise missiles supplied to the U.S. Navy. 

In 2010, Raytheon’s biggest contract was for $1.06 billion in a deal to supply guided missiles, while so far in 2011, the company’s biggest contract was also for guided missiles in a deal worth $1.39 billion. 

Pictured: Raytheon missiles on display at the Paris Air Show in 2005.




5. General Dynamics (GD)

Contracted in 2010: $14.8 billion 
Total 2010 revenue: $32.47 billion 
Contracted in 2011, so far: $2.49 billion 
Company Profile 
In 2010, General Dynamics of Fairfield, Connecticut engaged in 16,526 transactions with the U.S. Government, totaling approximately $14.8 billion. The largest single award was a $2.48 billion contract for the U.S. Navy on the construction of Virginia-class submarines. Other large contracts include the manufacture of cargo and tanker vessels ($927 million) and combat vehicles ($483 million), although numerous other $100+ million contracts of similar nature were also created. 

In General Dynamics’ 2010 annual report, the company’s first three stated risk factors highlight dependency on the U.S. government for “a significant portion” of revenues, with more than two-thirds of the company’s sales coming from the U.S. Government in each of the past three years. The company says that “A decrease in U.S. Government defense spending or changes in spending allocation could result in one or more of our programs being reduced, delayed or terminated. Reductions in our existing programs could adversely affect our future revenues and earnings." 

Pictured: General Dynamics Armament and Technical Products's Reactive Armor for application on the Bradley Fighting Vehicle.




6. L-3 Communications (LLL)

Contracted in 2010: $13.07 billion* 
Total 2010 revenue: $15.68 
Contracted in 2011, so far: $1.84 billion 
Company Profile 

Although USASpending.gov lists L-3 Communications of New York, New York as having $7.6 billion in 2010 contracts, the company’s 2010 Annual Report gives a much clearer number, with the discrepancy likely due to different naming conventions within USASpending.gov. L-3 describes itself as a “prime contractor in Command, Control, Communications, Intelligence Surveillance and Reconnaissance systems, aircraft modernization and maintenance and government services.” 

The company derived 83% of its 2010 revenues from U.S. Government sources, while another 8% was derived from foreign governments. The Department of Defense was L-3’s largest customer, with $11.93 billion in contracts last year. 

Pictured: L3 Communications' Mobius, Optionally piloted Aircraft System, flies by during the Association for Unmanned Vehicle Systems International (AUVSI) demonstration day at Naval Air Station Pax River Webster Field Annex in St. Inigoes, Maryland.
*According to the 2010 Annual Report for L-3 Communications




7. United Technologies (UTX)

Contracted in 2010: $7.7 billion 
Total 2010 revenue: $54.32 billion 
Contracted in 2011, so far: $1.96 billion 
Company Profile 

United Technologies, headquartered in Hartford, Connecticut, is a multinational conglomerate that manufactures a wide range of products, from aircraft engines and helicopters to fuel cells, elevators, and building systems. The biggest contract for United Technologies in 2010 was for $2.02 billion to manufacture rotary wing aircraft from its Sikorsky division. Other large projects include the maintenance and repair of gas turbines, jet engines and other aircraft, several of which cost the government over $400 million each. 

In its 2010 annual report, United Technologies identifies “government contracting risks,” which include possible threats from decreased budget or pending government investigations which could bar them from government contracts if the company is charged with wrongdoing. 

Pictured: A Sikorsky CH-53 Super Stallion taking off from the USS Saipan.




8. Oshkosh Corp. (OSK)

Contracted in 2010: $7.2 billion 
Total 2010 revenue: $9.82 billion* 
Contracted in 2011, so far: $1.85 billion 
Company Profile 

Oshkosh, headquartered in Oshkosh, Wisconsin, is primarily concerned with the design and manufacture of vehicles and vehicle bodies and has been a contractor of the U.S. Department of Defense for over 80 years, becoming its leading supplier of heavy and medium payload tactical trucks. According to the company, approximately 72% of 2010 net sales were from the U.S. Government. 

The biggest contracts for Oshkosh in 2010 were for combat and ground vehicles, three of which eclipsed $1 billion, with the most expensive being $1.13 billion, with all of its $100+ million contracts going to the Department of Defense. 

Pictured: US military personnel prepare to load Oshkosh armored vehicles onto a plane bound for Afghanistan at the the Manas Transit Center some 30kms from Bishkek.

*Note: The fiscal year for Oshkosh ends in November 2010.

9. SAIC Inc. (SAI)

Contracted in 2010: $6.9 billion 
Total 2010 revenue: $11.12 billion 
Contracted in 2011, so far: $1.7 billion 
Company Profile 

Science Applications International Corporation (SAIC), headquartered in McLean, Virginia, is the 9th largest recipient of U.S. Government contracts. SAIC is involved in everything from robotics to cancer research and tsunami warning systems. 

The company reports that 88-89% of revenues were from government sources over the past three years, identifying key sources of revenue growth arising from relationships with the Department of Defense and U.S. intelligence community. The company also notes that “a delay in the completion of the U.S. Government’s budget process could delay procurement of the products, services and solutions we provide and have an adverse effect on our future revenues." 

However, SAIC’s largest contract in 2010 was with the National Institutes of Health to the tune of $541 million. The contract was for the “operation of government-owned facilities” under both the National Institutes of Health and the National Cancer Institute, with the latter under the Recovery Act.




10. BAE Systems

Contracted in 2010: $6.6 billion 
Total 2010 revenue: $36.69 billion 
Contracted in 2011, so far: $1.3 billion 
Company Profile 

BAE Systems, the 10th largest recipient of U.S. Government contracts is a British multinational defense, security, and aerospace company headquartered in Farnborough, UK. According to USASpending.gov, the company was awarded $6.6 billion in U.S. Government contracts in 2010 and has already been awarded $1.3 billion so far in 2011. 

The Department of Defense is responsible for BAE’s top 10 contracts from 2010, which ranged from $102 million to $321 million. Of the $6.6 billion, $2.8 billion arose from the U.S. Navy and $2.5 million from the U.S. Army, while the largest contract was for the Caiman MTVtroop transport. 

Pictured: The Lemur weapons system from BAE Systems is displayed at the International defense exhibition of military technologies (IDEB) 2010 in Bratislava, Slovakia.