The United States of America government agencies are the world’s most significant consumers of products and services. With so many needs, the federal agencies purchase everything from paperclips, bolts and nuts and even aircraft carriers.
The majority of the time, these organizations are aware that they require a specific product or service, but they are unaware of the quantity or frequency with which they require it. That being said, this idea gave birth to a federal procurement that many American companies and other companies usually battle out from different parts of the world.
On February 10, 2020, President Donald J. Trump sent the fiscal year 2021 budget request to Congress amounting to $740.5 billion for national security and $705.4 billion for the U.S Department of Defense (DoD). The National Defense Strategy (NDS), which guides the Department’s decision-making in reprioritizing resources and moving expenditures to prepare for a future, high-end war, is supported in the FY 2021 budget.
There are a great number of companies that are already working for the U.S government. Their products and services differ from health care to military aircraft, defense and weapons systems, and even information technology.
We’ll look at the top ten largest defense contractors in 2021 in this article. By reading all the way to the conclusion, you’ll see how fantastic these firms are!
General Dynamics Corp
Located in Reston, Virginia, General Dynamics Corporation is an American global aerospace and defense system company. General Dynamics Corp. (GD) provides a wide range of innovative products and services in business aviation, combat vehicles, weapon systems and munitions, shipbuilding and repair, and ship maintenance.
Having the capability to produce business jets, communication systems, IT products and services, nuclear submarines, and combat vehicles, General Dynamics was able to work for the United States Army and earn between $860 Million to $9.6 Billion in the fiscal year 2021.
Meanwhile, on December 23, 2020, General Dynamics announced that they were procured for a $4.6 billion fixed-price-incentive contract to produce M1A2 SEPv3 Abrams’s main battle tanks for the U.S. Army. Work locations and fundings are not given in detail by General Dynamics, but the first delivery order is valued at an estimated $406 million, with an estimated completion date of June 2028.
L3 Harris Corporation
L3 Technologies and Harris Corporation merged to form the company in 2019. Despite being new in the industry, L3 Harris is a leading technology company that works with defense contracts in the air, land, sea, space, or even the intelligence community.
Surveillance, electronic warfare, and information technology, as well as communications equipment and systems, are all areas where L3 Harris excels. With that, they were able to serve both defense and commercial customers.
Huntington Ingalls Industries
The largest military shipbuilding business in the United States, based in Newport News, Virginia, provides professional services to federal and defense industry partners. The company is the sole manufacturer of nuclear technology aircraft and is responsible for 70 percent of the U.S Navy’s marine fleet.
Huntington Ingalls company received a contract in 2017 to modernize the Arleigh Burke-class guided-missile destroyer, develop the US Navy’s new Columbia-class submarines, and clean up nuclear waste at the Los Alamos National Laboratory in New Mexico.
The business built more ship classes than any other US naval shipbuilder for more than a century. Huntington Ingalls Industries supplies the U.S government, foreign governments, and international customers with mission-critical national security solutions. Having 44,000 people operating in the company, Huntington Ingalls Industries had total revenue of $2.3 billion in the third quarter of the military spending year 2021.
Not to be confused with the children’s clothing line Oshkosh B’ Gosh, the Oshkosh Corp gained popularity during 1917 due to their four-wheel-drive system that gave encouragement and confidence for people to explore places they never expected they could.
The objective of Oshkosh Corp is to produce specialty trucks to bring everyone home safely from their mission. The brand started as Oshkosh truck, but the company made its commercial brands such as the JLG, Jerry-Dan, Pierce, Oshkosh airport products, frontline communications and IMT.
Raytheon Technologies Corporation
In April 2020, the United technologies corporation merged with Raytheon to form one of the largest defense companies in the industry called Raytheon Technologies Corporation.
To put the merging firms in context, United Technologies Corporation (UTC) is an American multi-industry focused on aerospace products and services, notably jet engines.
Raytheon, on the other hand, is a large defense contractor and firm based in the United States, with key industrial concentrations in weaponry and military and commercial electronics. Raytheon also rose to become the world’s largest manufacturer of guided missiles.
As these two largest defense companies merged, Raytheon Technologies Corp specialized in developing advanced sensors, training, and cyber and software solutions. The company may not have warship or four-wheel drive products, but it is exceptionally known for its missile defense and long-range precision weapons.
All the way from Waltham, Massachusetts, Raytheon Technologies Corp made a noise to popularize the missile systems in the defense industry, namely the Patriot missiles. The US Department of Defense and its allies may rely on radars and ballistic missile interceptors to defend themselves. The company also produces precision-guided missiles, bombs, torpedos and tactical small arms sights.
Raytheon Technologies Corp’s Collins Aerospace division is one of the world’s leading aerospace and defense contractors, with headquarters in Charlotte, North Carolina.
The company has strategic business units that help them design, manufacture, and service systems and components for commercial aircraft, business aviation, military and defense, space, helicopter, space, airports, and other industries.
Power and Controls
According to them, they are working side by side with their customers to unleash exciting possibilities. As proof for crafting solutions to meet the demands of a rapidly evolving global market, the company uses extensive capabilities and broad expertise.
Lockheed martin corporation
Lockheed Martin Corp is a global and security company based in Bethesda, Maryland.
The corporation is a leading defense contractor in the world, with four main business segments:
System Integrations – Includes data analytics, electronic warfare, naval electronics and surveillance, missiles and fire control.
Aeronautics – combat and transport aircraft
Space Systems – Satellite communication and launch vehicles
Technology Services – management and logistic services
The firm is well-known for its adaptability and produced the widely known F-16 Fighting Falcon, F-22, F-35 fighter jets and C-130 Hercules. They also made the sonar technologies, ships, missile defense systems and missiles used by the U.S Navy.
Lockheed Martin received one of the largest defense prime contracts – the Joint Strike Fighter (JSF) program amounting to $250 billion.
Lockheed Martin may be inclined into research, design, development, and manufacture. Still, vast majority of their sales revenue comes from integrating and sustaining advanced technology and space systems.
Northrop Grumman corporation
Northrop Grumman Corp., headquartered in Falls Church, Virginia, addresses the most difficult issues in space, aeronautics, military, and cyberspace to fulfill the ever-changing needs of their customers globally.
Northrop Grumman Corp. pioneered the Flying Wing concept, which is an aircraft without a tail or a fixed fuselage. With the expertise of Northrop Grumman in air and space defense, they served the US Department of Defense and US intelligence agencies.
Furthermore, Northrop Grumman was able to serve over 25 other countries, including the United Kingdom, Japan, South Korea and Australia.
Northrop Grumman is consistently on the cutting edge of new technologies and left another mark for building the B-2 stealth bomber, X-47B crewless aircraft and the Lunar module. It also makes essential subsystems for the F-35 aircraft and other aircraft.
Northrop Grumman has an incoming stealth strategic bomber that is said to be done by 2026 – 2027. The B-21 Raider is a bomber made for the United States Air Force with a program arm sales of $80 billion.
BAE Systems, according to its website, aspires to defend individuals and national security while also keeping essential information and infrastructure secure through modern defense technologies. The organization can work directly with local partners to help economic growth by transferring knowledge, skills, and technology because they have more than 89,600 employees on their team in more than 40 countries.
BAE Systems is legally a British corporation, but it has a subsidiary in the United States called BAE Systems, Inc., which is headquartered in Virginia. Intelligence systems, electronic systems, specialized security and protection products, armored combat vehicles, artillery systems, and ammunition are among the company’s offerings. BAE Systems, like several of its competitors, creates products and delivers services to its customers in various fields, as well as commercial and military customers.
BAE systems became the fourth largest defense contractor in the world. The business produces ground combat vehicles such as the Challenger 2, which is employed as a battle tank by the British Army and the Royal Army of Oman
The company is also in a decade-long contract with the United Kingdom to support the Royal Air Force’s fleet of Typhoon fighter jets
In addition, the company is in for a decade-long contract with the United Kingdom to sustain the Royal Air Force’s fleet of Typhoon fighter jets. In collaboration with US businesses Northrop Grumman and Lockheed Martin, it is contributing to the continuous development of the F-35 fighter.
Boeing company is the world’s largest aviation corporation, as well as the top maker of commercial jetliners, defense products, space, and security technology, and an aftermarket service provider.
As America’s largest manufacturing exporter, the firm serves airlines as well as the U.S and allied government customers in over 150 nations.
The company, headquartered in Chicago, Illinois, is known for its commercial planes. They do, however, manufacture rockets, satellites, missiles, telecommunications equipment, helicopters, and military planes. The company distributes its products and provides professional support to federal and commercial clients worldwide.
Additionally, it has emerged as a leader in drones and other autonomous systems. They are also offering professional support in engineering, digital analytics, supply chain and training. It provides this as a stand-alone service, so clients who do not own Boeing machines can take advantage of it.
To sum up, all the business unit that the company offer, they have
- Boeing Capital Corporation – Financial Services
- Connexion by Boeing – in-flight entertainment
- Air traffic management
- Commercial airplanes
- Integrated defense systems
The majority of Boeing’s revenue comes from commercial airplanes. Still, little did we know that in quarter two of the fiscal year 2021, they have earnings for the quarter amounting to $567 million, which has been a significant improvement from 2.4 billion dollars in a net loss in the previous year.
The second quarter’s earnings from operations, which Boeing uses to measure profit in its business segments, were $1.0 billion, a considerable improvement over the year-ago quarter’s $3.0 billion loss from operations.
Why do businesses seek government contracts?
Many businesses spend their time and effort to win government contracts because the United States federal is made up of thousands of purchasers who spend money on everything from throwaway papers, bags, and clothing to aircraft equipment.
Because the federal doesn’t always know when and where to employ a product or service, it orders in bulk each transaction. This concept barely applies to small businesses and even large corporations.
Related article: Federal Contracting Frequently Asked Questions
Who can be a government contractor?
Being a prime contractor can be beneficial to the growth and development of any business. Perhaps, whether you have a small business or a large establishment, you can still bid for federal contracts. Nevertheless, you shall undergo a lot of procedures to meet the qualifications and requirements in order to bid on the prime contracts.
You can learn more about federal contracting by using the Small Business Administration’s resources (SBA). But keep in mind that if you really want to pursue government contracting, make sure that you keep yourself patient, eager and determined because the journey to the industry is time-consuming, exhausting and demands a great amount of effort.
How to become a government contractor?
There are hundreds of contractors registered in the United States. More often, they involve in defense industry systems, research and technology.
In this read, you have learned some of the biggest and most popular companies that work consistently with government agencies.
So, if you are asking yourself how to become one of them, you need to go and pass several processes. Each country has different methods and procedures on how to become a registered prime contractor. But here’s how it works to give you an idea:
- Establish a business
- Get Certified
- Submit a bid
- Wait for the response
These procedures may sound easy, yet they are a time-consuming task. However, do not get overwhelmed because the US Small Business Administration offers one-on-one counseling, training courses and even matchmaking opportunities with federal purchasers. They also offer other management and technological support to socially and economically grow small businesses.
For more information about federal contracting read here.