California Companies Continue to Lead Defense Procurement Race
A Pentagon study of DOD contracting released recently indicates that companies with a major California presence again led the competition for Pentagon procurement dollars in 1996. Lockheed Martin remained the largest DOD prime in FY 1996, winning just shy of $12 billion in contract awards. A close second was McDonnell Douglas with nearly $10 billion. Four companies were on either side of the $3 billion mark for 1996: General Motors' Hughes Aircraft unit, Raytheon, General Dynamics and Northrop Grumman. Companies with a major California presence comprised nearly half of the top 25 companies, which account for the large majority of the $70 billion spent on defense procurement in 1996. A table of these 25 companies follows.

TOP 25 PENTAGON PRIME CONTRACT AWARD RECIPIENTS, FY1996
(Sources: U.S. Department of Defense, Defense News Magazine.)

Rk Contractor 1996 Awards
1 Lockheed Martin Corp 11,998,430
2 McDonnell Douglas Corp 9,938,973
3 General Motors Corp 3,240,326
4 Raytheon Company 3,011,905
5 General Dynamics Corp 2,670,030
6 Northrop Grumman Corp 2,604,705
7 United Technologies Corp 2,257,695
8 The Boeing Company 1,724,044
9 Litton Industries Inc 1,709,112
10 General Electric Company 1,530,029
11 Westinghouse Electric Corp 1,440,714
12 Boeing North American Inc 1,287,683
13 Textron Inc 1,193,762
14 Science Applications Intl Corp (SAIC) 1,066,291
15 United Defense Lp 876,614
16 TRW Inc 786,749
17 Computer Sciences Corp 711,956
18 ITT Industries Inc 670,969
19 GTE Corp 599,073
20 Tracor Inc 580,599
21 Halliburton Energy Svcs Inc 573,635
22 AT&T Corp 529,037
23 Texas Instruments Inc 528,569
24 AlliedSignal Inc 511,804
25 Rolls-Royce Plc 462,445

Volume 4, Bulletin 18 -- May 22, 1997