[Bloomberg Government has launched the 11th annual BGOV200, a ranking of the top federal contractors. See the list and download the report.]
Defense contract spending totaled $408.4 billion in fiscal 2021, a $40.3 billion decrease from the prior year. In total, Pentagon spending is still more than $404.6B than in fiscal 2019.
Data shows the Defense Department spent $29 billion less in the fourth quarter of fiscal 2021 than the previous year, a huge part of the $28.4 billion net year-over-year decline across the government. The quarter’s share of total annual procurement also fell – to a five-year low of 27.5%, 3.5 percentage points below its annual average for fiscal 2017–21, according to Bloomberg Government data.
A $12 billion year-over-year increase in Pentagon purchases of Covid-related drugs and biologicals in the fourth quarter couldn’t offset spending decreases in key defense markets such as research and development (-$9.8 billion, -55%), aircraft manufacturing (-$6.7 billion, -65%), and construction and renovation (-5.9 billion, -39%). A 54% Q4 drop in F-35 Joint Strike Fighter spending was part of the annual decline in spending for the aircraft.
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