Most Top Contractors Increased Business With Federal Government in 2012
May 8, 2013
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.