Lockheed Martin stays number one with Pentagon

Lockheed Martin has maintained its position as number one contractor to the US Department of Defense (DoD), newly released Pentagon figures reveal. The Maryland-based manufacturer saw the value of DoD contracts climb by $1.3 billion, to $12.3 billion, last year, with second-placed Boeing closing the gap, but still $1.4 billion behind.

Prime contract awards of over $25,000 totalled $118.1 billion for the year - $1.4 billion more than in 1997, but still $1.5 billion less than the 1996 figure.

Lockheed Martin has been the DoD's top contractor for the past three years, becoming number one in 1996 with the merger of Lockheed and Martin Marietta, deposing McDonnell Douglas, which then merged with Boeing in 1997.

Orders for the F-22 Raptor air-superiority fighter were central to Lockheed Martin's 1998 performance, with the F/A-18E/F naval fighter and C-17 transporter boosting Boeing's position.

Among aerospace contractors, Raytheon saw the biggest rise in the value of DoD work- up 97% to $5.7 billion - much of this attributable to its December 1997 merger with Hughes Defense. Traditional missile competencies made major contributions, with the Tomahawk cruise missile, Joint Standoff Weapon and Advanced Medium-Range Air-to-Air Missile accounting for major contracts.

The Hughes purchase also saw former owner General Motors drop out of the Pentagon's "top 10", while General Electric's slide down the table was in part due to rival Pratt & Whitney's (United Technologies) greater success in securing contracts on combat aircraft such as the F-22.

TRW entered the top 10 on the back of orders for ground- and space-based laser systems, data processing activities and a contract to manage the Defense Travel System, while Textron enjoyed a 29% rise in contract value, based on Bell Helicopter Textron's V-22 tiltrotor programme and UH-1Z Huey and AH-1Z Cobra upgrades.

The biggest drop in contract value was suffered by Northrop Grumman, which has been hit by the end of B-2 bomber orders and the decline of radar programmes. The firm may also have lost business as a knock-on effect of its failed Lockheed Martin merger plans.

The Pentagon has also released figures for research and development contract awards, Lockheed Martin leading the field with $4.8 billion - more than twice the total for second-placed Boeing.

TOP 10 CONTRACTORS TO US DEPARTMENT OF DEFENSE

*includes McDonnell Douglas, acquired by Boeing during 1997. In 1996 McDonnell Douglas ranked 2nd, with awards of $9.9 billion, with Boeing 9th at $1.7 billion. †General Motors - ranked 6th in 1997 - and General Electric- ranked 8th - both dropped out of the top 10 in 1998.

Source: Flight International