Federal government spending reached a new high in fiscal 2019 – $597 billion. Both large and small companies capitalized on the fourth straight year of federal contract spending growth.
This year’s BGOV200 report focuses on companies and broad trends in the market, and explores the contract dynamics of the past year and the performance of successful contractors. The share of total government obligations won by the top 200 contractors was 64%, the same as in fiscal 2018.
There has been remarkable consistency among the top 10 recipients, and this is especially true for the top five contractors, but overall, 120 companies improved their rankings, including 37 that are new entrants to the list this year.
“The top five have mostly remained intact for the last decade or so,” said Bloomberg Government analyst Daniel Snyder, who recently authored the BGOV200, a ranking of the top 200 federal contractors by prime unclassified contracts awarded by federal agencies in fiscal 2019.
“This year, as in years past, Lockheed Martin (No. 1), Boeing (No. 2), General Dynamics (No. 3), Northrop Grumman (No. 4), and Raytheon (No. 5) round out the top five contractors.”
Most of the companies in the top 10 increased their revenue compared to last year, which is mostly a result of the overall federal market’s increase of $36 billion from fiscal 2018 to 2019, or about 7%. Only one company, BAE Systems, which moved to No. 12 from No. 10, dropped out of the top 10 rankings from last year.
Altogether, of the $597 billion in prime contracts awarded in FY19, the top 10 government contractors received $173.4 billion.
1. Lockheed Martin Corp.
2. Boeing Co.
3. General Dynamics Corp.
4. Northrop Grumman
6. United Technologies Corp.
7. McKesson Corp.
8. Leidos Inc.
9. Huntington Ingalls Inc.
10. L3Harris Corp.
The report does not yet account for the Raytheon and United Technologies merger because it closed on April 3 – after the close of fiscal year 2019. It’s likely that the newly formed Raytheon Technologies Corp. will overtake the third slot in next year’s rankings.
Despite stability among the top 10, we did see some significant market movers throughout the top 200 rankings:
- L3Harris Corp. improved its position, to No. 10 this year from No. 19 last year, by way of a merger between Harris Corp. and L3 Technologies that closed July 2019
- Honeywell International Inc. improved to No. 13 from No. 30 and Triad National Security LLC jumped to No. 20 from No. 95; both companies’ performance was through work operating Energy Department labs
- Microsoft Corp. improved to No. 87 from No. 119, Verizon to No. 76 from No. 110, and CDW Corp. to No. 62 from No 90; these are among the most significant market movers in the information technology market
- Deloitte moved to No. 34 from No. 40 through work for professional services and IT consulting