Category: Industry News

We examined buying activity from the Federal Procurement Data System, in order to obtain a list of the top five defense contractors.  After reviewing the federal budget, DLA buying activity, and many other sources, we found discrepancies in the data that encouraged us to perform a complete analysis of all purchases in the FPDS.  BidLink.net keeps up to date records of all FPDS transactions.  Below is a list of 21 agencies operating under the Department of Defense who have reported consolidated data on their contractors by dollar value for the fiscal year 2009.  The charts below show the top five contractors by dollar value for each agency.

2009 Top Contractors

Federal

Company	Total actions	Total dollars
Lockheed Martin Corporation	21,174	$38,512,401,433.23
The Boeing Company	11,468	$21,956,065,368.89
Northrop Grumman Corporation	22,009	$19,654,882,647.82
General Dynamics Corporation	17,988	$16,432,366,120.40
Raytheon Company	10,480	$16,106,903,431.28

Department of Defense

Company	Total actions	Total dollars
Lockheed Martin Corporation	17,762	$31,348,453,590.56
The Boeing Company	10,799	$20,604,690,106.84
Northrop Grumman Corporation	19,627	$18,293,375,394.47
General Dynamics Corporation	16,261	$15,662,063,160.18
Raytheon Company	9,697	$15,332,423,921.76

Department of the Navy

Company	Total actions	Total dollars
Lockheed Martin Corporation	4,610	$12,420,762,609.78
Northrop Grumman Corporation	9,844	$8,668,835,819.63
General Dynamics Corporation	6,396	$8,005,594,096.52
Raytheon Company	2,656	$5,095,808,653.19
The Boeing Company	1,607	$4,993,553,179.45

Department of the Army

Company	Total actions	Total dollars
General Dynamics Corporation	4,268	$6,520,702,472.61
Raytheon Company	3,036	$6,386,829,395.31
Oshkosh Truck Corporation	613	$6,002,056,462.20
The Boeing Company	1,272	$5,199,869,571.68
KBR  Inc.	677	$4,637,091,616.01

Department of the Air Force

Company	Total actions	Total dollars
Lockheed Martin Corporation	4,992	$12,721,684,392.24
The Boeing Company	3,094	$8,328,512,802.70
Northrop Grumman Corporation	4,381	$5,697,914,434.55
L-3 Communications Holdings  Inc.	2,415	$2,506,614,057.32
Raytheon Company	2,261	$2,364,176,372.56

Tricare Management Activity (TMA)

Company	Total actions	Total dollars
Humana Inc.	257	$3,389,680,098.90
Health Net  Inc.	136	$2,818,236,858.39
Triwest Healthcare Alliance Corp.	128	$2,650,851,737.67
Anthem Health Of Indiana Inc.	1	$750,304,988.85
Sierra Military Health Services LLC	1	$527,348,655.04

Defense Threat Reduction Agency (DTRA)

Company	Total actions	Total dollars
SAIC Inc.	179	$131,231,178.89
Raytheon Company	78	$123,228,271.33
Northrop Grumman Corporation	61	$74,314,286.05
Bechtel Group Inc.	37	$70,181,269.80
Applied Research Associates Inc.	168	$48,317,931.00

Defense Contract Management Agency (DCMA)

Company	Total actions	Total dollars
L-3 Communications Holdings Inc.	423	$160,727,353.44
United Technologies Corporation	336	$127,187,015.51
Rolls-Royce Group PLC	139	$96,846,374.23
Northrop Grumman Corporation	574	$29,925,319.56
Raytheon Company	309	$19,705,598.28

Defense Microelectronics Activity (DMEA)

Company	Total actions	Total dollars
Northrop Grumman Corporation	107	$166,653,880.00
Raytheon Company	108	$128,127,696.00
BAE Systems PLC	38	$61,856,490.00
Lockheed Martin Corporation	41	$33,815,997.00
General Dynamics Corporation	26	$21,897,026.00

USTRANSCOM

Company	Total actions	Total dollars
FedEx Corporation	1,198	$1,506,090,850.42
Evergreen International Airlines Inc.	1,137	$1,322,675,791.37
United Parcel Service Inc.	464	$305,502,933.10
American Auto Logistics LP	18	$202,080,529.00
EP Investments LLC	50	$140,092,877.72

Defense Advanced Research Projects Agency (DARPA)

Company	Total actions	Total dollars
Lockheed Martin Corporation	52	$160,110,727.00
SAIC Inc.	53	$63,866,621.03
Raytheon Company	33	$41,592,859.63
General Atomic Technologies Corporation	13	$39,645,859.00
Hopkins Johns University	59	$38,422,044.00

Defense Information Systems Agency (DISA)

Company	Total actions	Total dollars
SAIC Inc.	573	$383,239,379.39
Northrop Grumman Corporation	670	$317,452,963.16
Apptis Inc.	400	$263,178,140.07
Artel Inc.	232	$261,362,109.11
Computer Sciences Corporation	339	$198,826,087.16

Defense Logistics Agency

Company	Total actions	Total dollars
Agility	24,090	$1,913,213,109.55
Royal Dutch Shell PLC	12	$1,893,210,329.86
The Bahrain Petroleum Company B.S.C.	6	$1,754,451,969.04
BP P.L.C.	28	$1,684,285,999.43
Amerisourcebergen Corporation	64,715	$1,258,838,905.31

Defense Security Cooperation Agency

Company	Total actions	Total dollars
Charles E Collier	14	$8,163,431.67
Integrated Resource Technologies	14	$7,707,247.09
Information Gateways  Inc.	3	$6,598,800.00
Events Unlimited Inc.	53	$4,736,407.84
Culmen International LLC	17	$3,700,905.00

Defense Commissary Agency (DECA)

Company	Total actions	Total dollars
Kraft Foods Inc.	52,672	$462,530,049.60
Tyson Foods Inc.	57,473	$399,900,586.39
The Procter & Gamble Company	6,453	$312,987,601.32
PepsiCo Inc.	22,856	$210,064,462.15
General Mills Inc.	13,757	$207,429,487.40

Defense Finance and Accounting Service (DFAS)

Company	Total actions	Total dollars
Lockheed Martin Corporation	123	$59,849,620.17
Computer Sciences Corporation	40	$46,039,582.90
Electronic Data Systems Corporation	62	$42,525,030.67
Booz Allen Hamilton Inc.	108	$27,565,533.00
PricewaterhouseCoopers LLP	16	$17,582,793.93

Defense Media Center (DMC)

Company	Total actions	Total dollars
Innovative Technologies Inc.	27	$17,319,763.74
Taft Broadcasting Company LLC	18	$7,967,929.16
Towne Group Inc.	7	$5,999,071.46
Omnitec Solutions Inc.	22	$4,656,841.63
Film House Inc.	16	$3,499,993.38

Department of Defense Education Activity (DODEA)

Company	Total actions	Total dollars
SKE Technischer Service GMBH	54	$27,755,917.30
Dell Inc.	46	$22,655,101.06
Pearson PLC	650	$17,574,464.41
Audax Reisen Gesellschaft Mit Beschraenkter Haftung	81	$11,935,032.08
Town of Lincoln	2	$10,192,190.00

Washington Headquarters Services (WHS)

Company	Total actions	Total dollars
Hensel Phelps Construction Co.	12	$208,627,478.00
General Dynamics Corporation	21	$73,953,096.26
Catapult Technology Ltd.	7	$19,756,695.64
Scitor Corporation	32	$19,057,261.13
Dmjm/Parsons A Joint Venture	10	$16,246,022.72

Uniformed Services University of the Health Sciences (USUHS)

Company	Total actions	Total dollars
The Henry M Jackson Foundation for the Advancement of Milita	56	$17,422,548.16
Onconova Therapeutics Inc.	1	$4,274,446.00
Corbin Company	343	$3,482,840.02
Concurrent Technologies Corporation	4	$1,022,000.00
World Wide Technology Holding Co. Inc.	1	$966,782.78

Missile Defense Agency (MDA)

Company	Total actions	Total dollars
The Boeing Company	44	$1,663,936,105.00
Lockheed Martin Corporation	262	$1,326,609,630.63
Raytheon Company	209	$978,990,087.97
Northrop Grumman Corporation	669	$681,660,706.67
Computer Sciences Corporation	137	$214,351,162.60

U.S. Special Operations Command (USSOCOM)

Company	Total actions	Total dollars
L-3 Communications Holdings Inc.	3,553	$781,680,577.20
The Boeing Company	82	$114,830,024.25
M A Federal Inc.	157	$105,376,236.89
ITT Corporation	49	$102,623,504.53
Raytheon Company	142	$91,306,439.18

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With the Pentagon preparing for spending cuts, BidLink is looking for opportunities for American companies to prosper.  Declines in spending on new weapons systems means more replacement parts for aging equipment.  Many are common items, which can be made by companies who might be struggling due to softening consumer demand.

If you’re in the business of making bushings, rings, shims or spacers for the defense department, business is good.  Purchasing activity for these items from federal supply class (FSC) 5365 have been stable even through the depths of the great recession.

Looking at spending in this area over the past four years, we see relatively stable purchasing volume.  This is what we often find when analyzing the manufacture of what are commonly known in the military as “spares”.  The dramatic increase from 2006 likely relates to a transfer of buying activity from the old DOD procurement system to BSM (Business System Modernization).  An analysis of projected buying activity for 2011 shows that DOD is planning to purchase approximately $30,000,000 worth of bushings, rings, shims and spacers.

In an analysis of the industries top players by sales volume, GE Aviation (99207) leads, but also holds the third place spot (CAGE 07482). Their top contract from 2009 for this supply class was for 127  ring, bearing seals (NSN 5365-00-042-7344) at $1,384.70 each, totaling $175,856 (see contract).

A breakdown of the top 10 defense suppliers in 2009, looking at total sales in dollars.

We also looked at the most popular items purchased within this supply class.

Stock Number	Contracts	Item Name	Cage	Company
5365-01-246-8281	380	SUPPORT ASSEMBLY	02769	LOCKHEED MARTIN
5365-00-511-3133	272	SPACER,RING	73030	HAMILTON SUNDSTRAND
5365-00-310-5808	213	BUSHING,TAPERED	73030	HAMILTON SUNDSTRAND
5365-01-144-7377	162	SPACER,SLEEVE	45152	OSHKOSH
5365-01-223-3631	158	SPACER,SLEEVE	78286	SIKORSKY AIRCRAFT
5365-01-223-3628	141	SPACER,SLEEVE	78286	SIKORSKY AIRCRAFT
5365-01-471-8147	135	RING,BALL JOINT	45152	OSHKOSH
5365-00-550-5070	131	SPACER,RING	73030	HAMILTON SUNDSTRAND
5365-01-180-2369	127	PLUG,MACHINE THREAD	78500	MERITOR HEAVY VEHICLE
5365-01-246-9548	122	SHIM	78286	SIKORSKY AIRCRAFT

This information was discovered using BidLink.net’s comprehensive database of DLA procurement history for 2009. It also includes analysis from the NSN database and the central contractor registry. For 14 days of free access to BidLink.net, click here.

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In a review of the latest data of Government contractors currently registered with the U.S. Government having an active CAGE code; the data shows that the District of Columbia ranks number one with the state of New York showing the lowest percentage of Government contractors per capita.

According to the most recent data tabulated by BidLink.net,  the associated chart represents the percentage of “Government contractors” (based on the number of CAGE codes) per state verses the population of the given state. The state populations used in these calculations are from the most recent extract of population estimates from U.S. census data based on state on residents 18 years or older.

Over 1.6 million organizations in the United States are currently active in the Governments database with an active CAGE code. Basically any company or organization wishing to do business with the U.S. Government, specifically military agencies such as the DoD, Army, Navy, Air Force, and Marines will have a CAGE code.

A CAGE code is a five (5) position alphanumeric code used to identify organizations that provide, manufacture, or control the design of items supplied to U.S. Government Military agencies. The CAGE code is an integral part of the military cataloging system and is shared with many of the automated data processing (ADP) systems throughout the military.

According to the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation (DFAR) any organizations wishing to conduct business resulting in an contract award or any type of purchasing agreement must have their CAGE code active in the Central Contractor Registry (CCR). CCR registration must be updated on an annual basis to remain in the system. Currently a little over a third of the total organizations active in the CAGE database are active in the CCR database.

There are two basic types of CAGE codes Manufacturers and Non-manufacturers.

Of the total active U.S. CAGE codes only 11% of them are classified and Manufactures and 89% of them are Non-manufacturers.

The basic CAGE code data contains contact information such as phone and address information. There is a myriad of other relative data which is associated to a single CAGE code. Information such as part numbers and National Stock Numbers (NSN’s) manufactures, sources, contract numbers, procurement history etc.

BidLink.net provides vital information to defense contractors by mining its enormous and comprehensive database.  This data includes millions of defense contracts, procurement history, part numbers and vendor information.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup services to many military activities and thousands of private companies around the world.

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Welcome to BidLink Defense News!

We are expanding our news area to provide in depth research and information about the defense contracting industry. BidLink has millions of rows of information, which we often mine for information that can help keep our clients informed. Our data team are constantly analyzing trends and studying data on a never ending quest to find something that can give our clients a competitive edge.

BidLink has hired a number of professional writers and employed a research team, which will provide up to the minute information on the defense industry.

We hope you enjoy BidLink Defense News.

– The BidLink Staff

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In an age of tightening defense budgets, suppliers are finding that replacement parts used to maintain existing equipment are good business. Even though purchase volume is down over the past few years, vendors are finding comfort in the consistent business of replacement parts. BidLink will periodically examine a particular industry segment in search for opportunities for our clients.  Today we examine one such industry segment, FSC 5330: Packing and Gasket Materials.

Over the past 10 years the Department of Defense, has purchased over 61,000 unique NSN’s from more than 3,000 different companies in the gasket industry according to data obtained by BidLink.net, a provider of defense industry information.

National Stock Numbers (NSN) are used by the government to categorize the items that they buy.   Items are classified in segments, indicated by the Federal Supply Class (FSC).

5330	-01-	298-7343
Federal Supply Class	Country Code	Unique Number

The segment -FSC 5330 – titled: “Packing and Gasket Materials” is defined as Seals, gaskets and packing are made from materials specifically designed and constructed to resist deterioration from the action of heat, gas, chemicals, liquids, and used to fill a cavity and create a tight seal.

They include items such as General Purpose Oil Grease, Air, Liquid, Gas, and chemical Seals; Oakum; Prefabricated Gaskets and Seals designed for a single specific application. Note-This FSC includes only seals and gaskets designed for standard use.

SALES VOLUME

Although belt tightening has reduced the volume of purchases for items under FSC 5330 over the past three years, annual volume is still close to $100 million.

In this segment, sixteen percent (16%) of these suppliers are women owned. Fifty Seven percent (57%) of these companies are listed as manufacturers where as Forty percent (40%) are categorized as non-manufacturers  including distributors and brokers. The last 3% categorized as NATO (or foreign companies). Eighty Seven percent (87%) of these 3,000+  companies are classified as small business, where the  company has employees ranging from 0 to 500 people.

Quantities sold to the Government range from a few pieces to over 300,000 pieces in a single purchase order. This specific NSN 5330-01-298-7343 was sold for $0.18 each a quantity of 300,000 for a single contract totaling $54,000 dollars- a nice contract and should keep the stamping machines running for awhile. Not all orders are this large in volume but prices range all the way up in the thousands of dollars each.

We are finding that a large amount of money spent by the defense department is for simple items that one might overlook, like batteries, gaskets, cookies and sunglasses.  Companies who can make these types of products will find the defense department as a huge potential customer for American made goods where private sector sales might be faltering.

BidLink.net provides vital information to defense contractors by mining its enormous and comprehensive database.  This data includes millions of defense contracts, procurement history, part numbers and vendor information.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup services to many military activities and thousands of private companies around the world.

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