Defense Contract Trends: U.S. Department of Defense Contract ...
Defense Contract Trends: U.S. Department of Defense Contract Spending and the Supporting Industrial Base September 18, 2012
Defense-Industrial Initiatives Group Center for Strategic & International Studies 202-775-3183 www.csis.org/diig [email protected]
Methodology
• The Federal Procurement Data System (FPDS) was the primary source for this report.
• FPDS data are constantly being updated, including those for back years. As a consequence, the dollar totals for a given year can vary between reports. • Contract classifications sometimes differ between FPDS and individual companies, resulting in some contracts that a company considers as services being labeled as products by FPDS and vice versa. • Reporting regulations only require that unclassified contracts be included in FPDS. • Supplementals are not separately classified in FPDS. • All dollar figures are in constant 2011 dollars.
2
Top Line DoD Contract Spending, 1990-2011
$700
Constant 2011 Billions
621 $600 $500
513 456 398
$400 $300
293
424 404 381
230 279 257
408 360
362 345 346 338 341 359
212
257 305 303
209
40%
242 30%
198 245 199 181 185 182 177 189 181
$200
$100
219
60%
50%
221 231
680 678
565
539 549
468
655
70%
210 163 168 145 147 136 161 164 161 156 164 170 181
256 271
400 398 375 375 356 330 308
$0
20%
Percentage of DoD Outlays
$800
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Non-Contract DoD Outlays (0.2% 21-year CAGR) Total DoD Contract Spending (4.0% 21-year CAGR) Contracts as a percentage of DoD Outlays Note: Dollar figures may not sum to total due to rounding. Source: FPDS; CSIS analysis
3
Organization of the Presentation
• Overall DoD Contract Obligations o Products
o Services o R&D
• Contract Obligations by DoD Component o Army o Navy o Air Force o Other DoD
• DoD Contract Characteristics o Competition o Funding Mechanism o Vehicle
• The Industrial Base Supporting DoD o Top 20 Companies o Market share of small, medium and large companies
4
DoD Contract Obligations for Products, 1990-2011 $400
60%
$350
Constant 2011 Billions
$300 40% $250
$200
30%
$150 20% 173 202
$100
$50
89
90
71
71
62
69
71
67
64
68
78
82
93
% of DoD Contract Spending
50%
182 169 177
143 154 113 121
$0
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Products (-4.4% 3-year CAGR) Source: FPDS; CSIS analysis
% Products 5
DoD Contract Obligations for Services, 1990-2011 $400
60%
$350
Constant 2011 Billions
$300 40% $250 $200
30%
$150 20% $100 107
$50 51
56
51
52
55
64
66
64
66
70
69
74
114
124
134
138
155
171
164
160
% of DoD Contract Spending
50%
10%
85
$0
0% '90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00 '01 '02 Fiscal Year
Services (1.0% 3-year CAGR)
Source: FPDS; CSIS analysis
'03
'04
'05
'06
'07
'08
'09
'10
'11
% Services
6
DoD Contract Obligations for R&D, 1990-2011 $50
60%
43
Constant 2011 Billions
$40
41 36
$30
50% 41 38 40%
32 28
$20
37
44 43
23
22
23
29 27
27
30%
26
26 23
23 20
20%
% of DoD Contract Spending
45
$10 10%
$0
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year R&D (-3.2% 3-year CAGR) Source: FPDS; CSIS analysis
% R&D
7
DoD Contract Obligations by Category in Percentage Terms, 1990-2011
Percentage of DoD Contract Spending
60%
50%
40%
30%
20%
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year % Products
% Services
% R&D
Note: The “unlabeled” category, which accounts for less than 0.1% of DoD contract obligations, was excluded from this chart. Source: FPDS; CSIS analysis
8
DoD Contract Obligations by Component, 1990-2011 $450 $400 74
$350
79
Constant 2011 billions
64 $300
67 62
$250 44 $200 $150
36 21 45
25 20 51
$100 60 $50 38
53 39
38 50 36
21 41 49 35
20
27
20
22
20
20
22
23
51
52
51
46
48
51
44
54
50
48
50
51
52
53
32
36
40
42
41
44
47
74 69
51
101
77
65
98
92
89
133
159 151 142
105
82
71
59
57
66
69
65
58
40 44
67
79
70
75
46 63
66
75
89
109 112
125
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year
Source: FPDS; CSIS analysis
Army (-7.7% 3-year CAGR)
Navy (1.5% 3-year CAGR)
Air Force (-0.5% 3-year CAGR)
Other DoD (2.5% 3-year CAGR)
9
DoD Obligations on Products by Component, 1990-2011 $200
Constant 2011 billions
44
47
38
$150
43
26
44
42 38 24
$100
26
22
20
17 27
11 17
$50 32
19
28 18
$0
12 19
11 23 19
27 16
25
15
12
12
19 11
23 12
25 19 15
13
12
20
18
20
14
21 13
14
16
22
24
12 20 21 15
30
24 17
23 19
58
33 77 48
20
43
37
24 30
47
43 32
29
26
29
30
29
25 54
25 15
26
33
32
45
58
62
58
49
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army Products (-14.1% 3-year CAGR)
Navy Products (2.6% 3-year CAGR)
Air Force Products (-0.6% 3-year CAGR)
Other DoD Products (-0.7% 3-year CAGR)
Source: FPDS; CSIS analysis
10
DoD Obligations on Services by Component, 1990-2011 $200
Constant 2011 billions
26
$150
26
23 19 20 18
$100
12 23 13
$50
4 13 20
5 16 20
7
6
7
13
13
13
17
18
19
7
15
16
17
23
22
23
7
6
7
16
16
16
16
22
23
22
21
21
22
23
'97
'98
'99
13
15
14
16
16
17
19
'90
'91
'92
'93
'94
'95
'96
19
27
27
26
37
29
34
34
36
32
26
9
8
8
27
30
30
16
30
27
27
29
28 25
24
25
29
'00
'01
'02
38
48
52
53
'04
'05
'06
64
71
80
74
'09
'10
68
$0 '03
'07
'08
'11
Fiscal Year Army Services (-1.5% 3-year CAGR)
Navy Services (2.0% 3-year CAGR)
Air Force Services (-1.4% 3-year CAGR)
Other DoD Services (9.4% 3-year CAGR)
Source: FPDS; CSIS analysis
11
DoD Obligations on R&D by Component, 1990-2011 $50 $45 4
$40
4
$30 2 $25 2
2
$20
2
2
1 10
9
$15
9
9
12
2
2
3
15
11
11
10
13
14 14
11
14
16
10 10
7
12
10
3 11
6 12
11
6
4
4
1 1
6 6
5
$35
Constant 2011 billions
6
12
12
16 13
15
14 12
10 8
$10 6
7
6
6
8
6
6
9
8
6
7
$5 6
5
6
5
5
7
7
6
6
5
5
11
6
8
9
9
9
11
11
11
10
9
8
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army R&D (-10.0% 3-year CAGR)
Navy R&D (-4.4% 3-year CAGR)
Air Force R&D (2.6% 3-year CAGR)
Other DoD R&D (-2.5% 3-year CAGR)
Source: FPDS; CSIS analysis
12
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 38
39
36
35
32
36
40
42
41
44
47
51
57
77
89
159 151 142 133 125 109 112
$0
Percentage of DoD Contract Spending
Constant 2011 Billions
Army Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army (-7.7% 3-year CAGR)
Source: FPDS; CSIS analysis
13
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 60
53
50
49
44
54
50
48
50
51
52
53
59
69
71
74
82
92 101 98
89
105
$0
Percentage of DoD Contract Spending
Constant 2011 Billions
Navy Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Navy (1.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Navy of total DoD contract spending
14
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 45
51
38
41
40
51
52
51
44
46
48
51
58
67
65
63
69
75
Percentage of DoD Contract Spending
Constant 2011 Billions
Air Force Contract Obligations, 1990-2011
5%
66
70
66
65
$0
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Air Force (-0.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Air Force of total DoD contract spending
15
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 $0
21
25
20
21
20
20
22
20
20
22
23
27
36
44
46
62
67
64
74
79
75
79
Percentage of DoD Contract Spending
Constnat 2011 Billions
Other DoD Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Other DoD (2.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Other DoD
16
DoD Contract Obligations by Component in Percentage Terms, 1990-2011 45%
Percentage of DoD Contract Spending
40% 35% 30% 25%
20% 15% 10% 5% 0% '90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Fiscal Year % Army of total DoD contract spending % Air Force of total DoD contract spending
Source: FPDS; CSIS analysis
% Navy of total DoD contract spending % Other DoD
17
Army Obligations by Category, 1990-2011 $180 $160 11 10
Constant 2011 Billions
$140
9 11 8
$120 71 9
$100
11
80 74
64 9
$80
52
9 $60
$40
5
6
13
15
$20 19 $0
18
6 14 16
5 16 15
5 16 11
7 17 12
7
6
19
21
15
14
6 22 13
5 23 15
5 24
17
6 25
8
68
48 38 77
29 48
19
53
20
30
58 45
62
58
49
32
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army Products (-14.1% 3-year CAGR)
Army Services (-1.5% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
Army R&D (-10.0% 3-year CAGR)
18
Navy Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 13 16
$40 $20
14
16
$80 $60
11
12 7 20
6 20
6
6
17
18
8 6 22 19
8 23
6 22
9 21
8
6
7
23
22
23
12
28
34
15 32
10 27
12 36
37 34
29 27
25
43 33 32 37 32 28 27 29 25 19 23 19 20 21 21 24 23 24
58 54 47 43
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Navy Products (2.6% 3-year CAGR)
Navy Services (2.0% 3-year CAGR)
Navy R&D (-4.4% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
19
Air Force Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 $80 $60
11
11
26
23
30
30
10 9 $40
10
16
13 $20 22
27
12 9
9
7
13
13
13
17
19
19
11
16
16
23
25
15
11
10
10
10 19
16
16
15
16
17
20
18
20
22
24
29
11
12 13
12 27
25
29
29
14
14
14
30
33
27
30
27
26
26
26
25
26
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Air Force Products (-0.6% 3-year CAGR)
Air Force Services (-1.4% 3-year CAGR)
Air Force R&D (2.6% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
20
Other DoD Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 $80 $60
5 4
$40 $20
2 4
15 $0
2 5
17
2 7
2 6
1 7
2 7
1 8
1 6
2 7
2 8
3 7
3 9
11
12
12
11
12
13
12
12
14
16
4 13
4 12
18
24
4
6
20
23
6 26
6 26
6
30
19
16 38
20
6
42
38
44
47
43
44
26
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Other DoD Products (-0.7% 3-year CAGR)
Other DoD Services (9.4% 3-year CAGR)
Other DoD R&D (-2.5% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
21
Overall DoD Contract Obligations by Detailed Component
Source: FPDS; CSIS analysis
22
Contract Obligations for ‘Remaining DoD Agencies’ by Detailed Component
* TMA also includes the Office of the Civilian Health and Medical Program of the Uniformed Services Source: FPDS; CSIS analysis
23
FPDS vs. CSIS Categories for Competition •
FPDS Categories: 1.
Full and Open Competition
2.
Full and Open Competition after exclusion of sources
• Number of Offers 1.
2+
2.
1
3.
Competed under SAP
3.
0
4.
Competitive Delivery Order
4.
Unlabeled
5.
Follow On to Competed Action
6.
Not Competed under SAP
7.
Not Competed
8.
Non-Competitive Delivery Order
9.
Not Available for Competition
10.
Blank
CSIS Categories: 1.
Competition with Multiple Offers
2.
Competition with Single Offer
3.
No Competition
4.
Unlabeled
Note: CSIS determines whether multiple or single offers were received for a contract by referring to the “Number of Offers Received” column in FPDS. Thus, contracted competed (or not) under SAP, a follow on to competed action, or a competitive delivery order, can be either competed with a single or multiple offer. Source: FPDS; CSIS analysis
24
Defense Contract Obligations by Competition, 1990-2011 Competition Category (3-year CAGR)
$450 4
$400
3 1
Constant 2011 Billions
$350
3 133
$250
13 11
$200
$100
23 27 59 60 9
$50
154 148
4
$300
$150
1
Unlabelled (-49.1%)
2
9
3 22 21 17 51 52 47
9
9
8
21 24 60 58 10
7
6
7
8
9
84
75 65 64 65 69 7
8
9
9
106
17
72 71 62 65 64 70 74 85 79 83 85 87
No Competition (-1.1%)
123
14 113 105 31
36
50 47 48 44 48
Competition with single offer (-4.4%)
19
13
11 103
138 149
120 133
160 168 173
192 200 187 182 Competition with multiple offers (-1.8%)
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: Data on Fair Opportunity/Limited Sources are not included; as a result, totals may vary from those listed in government publications. Source: FPDS; CSIS analysis
25
FPDS vs. CSIS Categories for Funding Mechanism
•
FPDS Categories: 1.
Fixed Price
2.
Fixed Price Award Fee
3.
Fixed Price Incentive
4.
Fixed Price Redetermination
5.
Fixed Price with Economic Price Adjustment)
6.
Fixed Price Level of Effort
7.
Cost No Fee
8.
Cost Plus Award Fee
9.
Cost Plus Fixed Fee
10.
Cost Plus Incentive
11.
Cost Sharing
12.
Time and Materials
13.
•
CSIS Categories: 1.
Fixed Price
2.
Cost Reimbursement
Labor Hours
3.
Time and Materials
14.
Combination (applies to awards where two or more of the above apply)
4.
Combination
15.
Order Dependent (IDV allows pricing arrangement to be determined separately for each order)
16.
Other* (applies to awards where none of the above apply)
5.
Unlabeled
17.
Blank
Source: FPDS; CSIS analysis
26
Defense Contract Obligations by Funding Mechanism, 1990-2011 $450
Funding Merchanism Category (3-year CAGR)
$400 33
Constant 2011 Billions
$350 9 13
$300 $250
11 10 11 8
$200 $150
84 30
10 4 30
$100 $50
121 124
74 34
10 4 36
100 96
11 5 33
87
12 6
16 6
45
47
4 6
4 6
7 6
8 7
54
54
53
52
86
73
11 12
90
5 16
95
100
95
98
92
46
6 15
11 10
16
93
Unlabeled (n/a) 107 110 Combination (-30.2%)
95
85
Time and Materials (-15.9%)
59 Cost Reimbursement (4.9%)
54 195 205
98
24 16
18
113 98 103
133
220
247 239 246 244
163 163
Fixed Price (-0.5%)
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: The “other” category, which totals less than $20 million a year, was excluded from the figure. Source: FPDS; CSIS analysis
27
FPDS vs. CSIS Categories for Contract Vehicle •
•
Award Type:
CSIS Categories:
1.
Definitive Contract
1.
Definitive Contract
2.
Purchase Order
2.
Purchase Order
3.
Delivery Order
3.
Multiple Award IDC
4.
BPA Call
4.
Single Award IDC
5.
FSS or Other
6.
Unlabeled IDV
Type of IDV: 1.
FSS
2.
GWAC
3.
BOA
4.
BPA
5.
IDC
6.
Unlabeled IDV
Source: FPDS; CSIS analysis
Multiple or Single Award 1.
Multiple
2.
Single
3.
Unlabeled
28
Defense Contract Obligations by Contract Vehicle, 1990-2011 $450 $400 $350
Constant 2011 Billions
$300
$250
12 22
$200
$100 $50
11
47
52
13 14
$150
12
11 10 13 20 61
74
8 18
6 19
58
56
63
72
58
59
5 22
3 21
4 21
7 34 2
10 34 3
6 11 41 3
6 13
7 14
46
52
3
4
10 17
14 26
15
57
57
156 149
Single Award IDC (-7.4%)
93
7
7
12 9
9
Multiple Award IDC (7.0%)
138 124
135 119
81
FSS or other (7.2%)
Indefinte Delivery Vehicle
35
11
11
36
37
92
160 134 131 134 148 109 102 100 101 104 118 92
50
11
124
59 5
14 32
38
Contract Vehicle Category (3-year CAGR)
11
10 Purchase Order (-3.5%)
176 175
158 167 Definitive Contract (-1.7%)
55
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: The “unlabelled IDV” category, which totals less than $3 billion a year, was excluded from the figure. Note: Total obligations vary from other figures by up to $3.5 billion due to differences in download date and variation between USAspending.gov and FPDS.gov. Source: FPDS; CSIS analysis 29
Top 20 DoD Contractors, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001 Obligations in 2011 M illions Lockheed Martin
$17,993
Lockheed Martin
$35,760
Boeing
$14,770
Boeing
$20,485
Newport News Shipbuilding
$7,241
General Dynamics
$17,984
General Dynamics
$7,062
Raytheon
$13,572
Raytheon
$6,258
Northrop Grumman
$11,881 $99,683
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total for Top 20 Total for DoD
*Joint Venture Source: FPDS; CSIS analysis
Top 20 Contractors in 2011 Obligations in 2011 M illions
$53,325 United Technologies
$3,841
BAE Systems
$7,352
Northrop Grumman
$3,158
United Technologies
$6,873
SAIC
$2,316
L3 Communications
$6,832
Litton Industries
$2,082
Huntington Ingalls Industries
$5,482
TRW
$2,028
SAIC
$5,270
General Electric
$1,874
Oshkosh
$4,741
Textron
$1,608
ITT
$3,549
Health Net
$1,173
Humana
$3,439
Computer Sciences Corp.
$1,072
TriWest Healthcare
$3,093
ITT
$1,005
Health Net
$2,963
Bechtel
$973
Computer Sciences Corp.
$2,953
Exxon Mobil
$821
Dyncorp International
$2,867
BAE Systems
$748
Fluor
$2,722
TriWest Healthcare
$692
Bell-Boeing Joint Project Office
$2,666
Oshkosh
$692
Booz Allen Hamilton
$2,613
$77,408 $181,351
$163,100 $375,317
30
Top 20 DoD Contractors for Products, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001 Boeing
$10,130
Top 20 Contractors in 2011
Obligations in 2011 Millions
Lockheed Martin
$22,171
Lockheed Martin
$9,696
Boeing
$14,467
Newport News Shipbuilding
$5,005
General Dynamics
$13,946
Raytheon
$4,037
Raytheon
General Dynamics
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 Millions
$3,823 $32,691
United Technologies
$8,004 $5,331 $63,920
United Technologies
$2,766
Huntington Ingalls Industries
$5,154
General Electric
$1,796
Oshkosh
$4,709
Litton Industries
$1,665
BAE Systems
$4,462
Northrop Grumman
$1,443
Northrop Grumman
$3,422
Textron
$1,421
L3 Communications
$3,197
Exxon Mobil
$821
Bell-Boeing Joint Project Office*
$2,612
Royal Dutch Shell
$673
Textron
$2,264
Stewart & Stevenson
$521
General Electric
$2,126
Oshkosh
$517
Supreme Group
$2,032
United Defense Industries
$511
General Atomics
$1,461
Longbow LLC
$497
Navistar
$1,389
Cardinal Health
$491
Alliant Tech Systems
$1,385
Alliant Tech Systems
$417
AmerisourceBergen
$1,371
Dell
$393
Austal
$1,365
Motorola
$389
BP
$1,260
Total for Top 20
$47,012
$102,129
Total for Products
$81,837
$176,781
*Joint Venture Source: FPDS; CSIS analysis
31
Top 20 DoD Contractors for Services, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001
Top 20 Contractors in 2011
Obligations in 2011 M illions
Lockheed Martin
$3,021
Lockheed Martin
$5,588
Newport News Shipbuilding
$2,236
Northrop Grumman
$4,634
Raytheon
$1,743
SAIC
$3,894
General Dynamics
$1,462
Humana
$3,439
SAIC
$1,344 $9,806
L3 Communications
$3,224 $20,780
Boeing
$1,316
TriWest Healthcare
$3,093
TRW
$1,308
Health Net
$2,963
Health Net
$1,173
Dyncorp International
$2,861
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 M illions
Northrop Grumman
$991
Computer Sciences Corp.
$2,817
Computer Sciences Corp.
$769
General Dynamics
$2,741
TriWest Healthcare
$692
Fluor
$2,715
Bechtel
$670
Raytheon
$2,704
Dyncorp International
$661
ITT
$2,605
Halliburton
$556
BAE Systems
$2,412
URS
$550
KBR
$2,250
BAE Systems
$546
Boeing
$2,036
MCI/Worldcom
$501
CACI
$1,926
Humana
$500
Hewlett-Packard
$1,746
Jacobs Engineering Group
$493
URS
$1,731
ITT
$473
Bechtel
$1,544
Total for Top 20
$21,006
$56,925
Total for Services
$73,569
$160,037
*Joint Venture Source: FPDS; CSIS analysis
32
Top 20 DoD Contractors for R&D, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001
Top 20 Contractors in 2011
Obligations in 2011 M illions
Lockheed Martin
$5,277
Lockheed Martin
$8,002
Boeing
$3,324
Boeing
$3,982
General Dynamics
$1,777
Northrop Grumman
$3,825
Raytheon
$2,864
United Technologies Northrop Grumman
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 M illions
$958 $723 $12,059
General Dynamics
$1,297 $19,970
Boeing / UTC Joint Venture
$659
Booz Allen Hamilton
$1,048
SAIC
$641
MIT
$947
Aerospace Corp.
$553
United Technologies
$903
TRW
$533
Aerospace Corp.
$886
MITRE
$524
SAIC
$835
Raytheon
$478
Johns Hopkins University
$727
MIT
$433
Wyle Laboratories
$527
Computer Sciences Corp.
$290
JVYS*
$481
Rockwell Collins
$227
BAE Systems
$479
ITT
$212
L3 Communications
$411
Johns Hopkins University
$181
ITT
$339
Oshkosh
$171
MITRE
$330
Textron
$148
CACI
$293
Spectrum Astro
$124
Navmar
$248
Institute for Defense Analysis
$117
Battelle
$221
Total for Top 20
17,352
$28,646
Total for R&D
25,939
38,499
*Joint Venture Source: FPDS; CSIS analysis
33
DoD Contract Obligations by Contractor Size, 2000-2011 $450 Contractor Size Category (3-year CAGR)
$400
Constant 2011 Billions
$350
116
$300 88 74
$200
$50 $0
107
50 38
50 37
113 78
56
101
85
66
$100
100
110
$250
$150
113
82
117
91
114
113
70
41 83
72
89
93
95
110
104
97
95
55
65
69
28
29
34
43
44
54
55
59
61
64
64
60
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Large (Big 6) (-2.7%) Large (-0.2%) Medium (-4.5%) Small (-0.5%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
34
DoD Contract Obligations for Products by Contractor Size, 2000-2011 $250 Contractor Size Category (3-year CAGR)
Constant 2011 Billions
$200
Large (Big 6) (-1.2%)
69
$150 45 $100
41 29
17
17
22 9
26
27
10
'00
'01
22
66
58 57
42
33
34
41
43
44
50
28
16
57
54
48
38
30 $50
$0
64
62
56
53
38
33
36
34
27
12
16
18
23
22
25
25
23
23
21
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Large (-3.2%) Medium (-10.2%) Small (-5.3%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
35
DoD Contract Obligations for Services by Contractor Size, 2000-2011 $200 $180
Constant 2011 Billions
$160
24
$140 $120
18
$100
15
$80 $60
12 9 16
19
28
32
35
16
17
'00
'01
9 16
$40
29
19
21
37
39
54 48
16 42
20
Large (Big 6) (-2.7%) 51
54
42
Large (3.5%)
Medium (-1.0%)
41
44
45
54
58
56
52
42
39
19
22
22
26
28
29
31
36
36
34
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
$20 $0
21
22
Contractor Size Category (3-year CAGR)
Small (2.7%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
36
DoD Contract Obligations for R&D by Contractor Size, 2000-2011 $50 $45
Contractor Size Category (3-year CAGR)
Constant 2011 Billions
$40
$35 27
$30 18
$25 $20
$5 $0
28
26
22
22
20
16
11 4
5
Large (-2.8%) Medium (5.2%)
12
$15 $10
25
25
Large (Big 6) (-6.7%)
6
5
5
5
6
7
7
6
7
6
8
6
6
5
7
6
7
7
5
7
8
6
3
3
3
4
4
5
5
5
4
5
5
5
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Small (1.8%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
37
About CSIS At a time of new global opportunities and challenges, the Center for Strategic and International Studies (CSIS) provides strategic insights and policy solutions to decisionmakers in government, international institutions, the private sector, and civil society. A bipartisan, nonprofit organization headquartered in Washington, DC, CSIS conducts research and analysis and develops policy initiatives that look into the future and anticipate change. Founded by David M. Abshire and Admiral Arleigh Burke at the height of the Cold War, CSIS was dedicated to finding ways for America to sustain its prominence and prosperity as a force for good in the world.
Since 1962, CSIS has grown to become one of the world’s preeminent international policy institutions, with more than 220 full-time staff and a large network of affiliated scholars focused on defense and security, regional stability, and transnational challenges ranging from energy and climate to global development and economic integration. Former U.S. senator Sam Nunn became chairman of the CSIS Board of Trustees in 1999, and John J. Hamre has led CSIS as its president and chief executive officer since April 2000 CSIS does not take specific policy positions; accordingly, all views expressed in this presentation should be understood to be solely those of the author(s).
38
Defense-Industrial Initiatives Group Center for Strategic & International Studies 202-775-3183 www.csis.org/diig [email protected]
Methodology
• The Federal Procurement Data System (FPDS) was the primary source for this report.
• FPDS data are constantly being updated, including those for back years. As a consequence, the dollar totals for a given year can vary between reports. • Contract classifications sometimes differ between FPDS and individual companies, resulting in some contracts that a company considers as services being labeled as products by FPDS and vice versa. • Reporting regulations only require that unclassified contracts be included in FPDS. • Supplementals are not separately classified in FPDS. • All dollar figures are in constant 2011 dollars.
2
Top Line DoD Contract Spending, 1990-2011
$700
Constant 2011 Billions
621 $600 $500
513 456 398
$400 $300
293
424 404 381
230 279 257
408 360
362 345 346 338 341 359
212
257 305 303
209
40%
242 30%
198 245 199 181 185 182 177 189 181
$200
$100
219
60%
50%
221 231
680 678
565
539 549
468
655
70%
210 163 168 145 147 136 161 164 161 156 164 170 181
256 271
400 398 375 375 356 330 308
$0
20%
Percentage of DoD Outlays
$800
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Non-Contract DoD Outlays (0.2% 21-year CAGR) Total DoD Contract Spending (4.0% 21-year CAGR) Contracts as a percentage of DoD Outlays Note: Dollar figures may not sum to total due to rounding. Source: FPDS; CSIS analysis
3
Organization of the Presentation
• Overall DoD Contract Obligations o Products
o Services o R&D
• Contract Obligations by DoD Component o Army o Navy o Air Force o Other DoD
• DoD Contract Characteristics o Competition o Funding Mechanism o Vehicle
• The Industrial Base Supporting DoD o Top 20 Companies o Market share of small, medium and large companies
4
DoD Contract Obligations for Products, 1990-2011 $400
60%
$350
Constant 2011 Billions
$300 40% $250
$200
30%
$150 20% 173 202
$100
$50
89
90
71
71
62
69
71
67
64
68
78
82
93
% of DoD Contract Spending
50%
182 169 177
143 154 113 121
$0
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Products (-4.4% 3-year CAGR) Source: FPDS; CSIS analysis
% Products 5
DoD Contract Obligations for Services, 1990-2011 $400
60%
$350
Constant 2011 Billions
$300 40% $250 $200
30%
$150 20% $100 107
$50 51
56
51
52
55
64
66
64
66
70
69
74
114
124
134
138
155
171
164
160
% of DoD Contract Spending
50%
10%
85
$0
0% '90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00 '01 '02 Fiscal Year
Services (1.0% 3-year CAGR)
Source: FPDS; CSIS analysis
'03
'04
'05
'06
'07
'08
'09
'10
'11
% Services
6
DoD Contract Obligations for R&D, 1990-2011 $50
60%
43
Constant 2011 Billions
$40
41 36
$30
50% 41 38 40%
32 28
$20
37
44 43
23
22
23
29 27
27
30%
26
26 23
23 20
20%
% of DoD Contract Spending
45
$10 10%
$0
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year R&D (-3.2% 3-year CAGR) Source: FPDS; CSIS analysis
% R&D
7
DoD Contract Obligations by Category in Percentage Terms, 1990-2011
Percentage of DoD Contract Spending
60%
50%
40%
30%
20%
10%
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year % Products
% Services
% R&D
Note: The “unlabeled” category, which accounts for less than 0.1% of DoD contract obligations, was excluded from this chart. Source: FPDS; CSIS analysis
8
DoD Contract Obligations by Component, 1990-2011 $450 $400 74
$350
79
Constant 2011 billions
64 $300
67 62
$250 44 $200 $150
36 21 45
25 20 51
$100 60 $50 38
53 39
38 50 36
21 41 49 35
20
27
20
22
20
20
22
23
51
52
51
46
48
51
44
54
50
48
50
51
52
53
32
36
40
42
41
44
47
74 69
51
101
77
65
98
92
89
133
159 151 142
105
82
71
59
57
66
69
65
58
40 44
67
79
70
75
46 63
66
75
89
109 112
125
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year
Source: FPDS; CSIS analysis
Army (-7.7% 3-year CAGR)
Navy (1.5% 3-year CAGR)
Air Force (-0.5% 3-year CAGR)
Other DoD (2.5% 3-year CAGR)
9
DoD Obligations on Products by Component, 1990-2011 $200
Constant 2011 billions
44
47
38
$150
43
26
44
42 38 24
$100
26
22
20
17 27
11 17
$50 32
19
28 18
$0
12 19
11 23 19
27 16
25
15
12
12
19 11
23 12
25 19 15
13
12
20
18
20
14
21 13
14
16
22
24
12 20 21 15
30
24 17
23 19
58
33 77 48
20
43
37
24 30
47
43 32
29
26
29
30
29
25 54
25 15
26
33
32
45
58
62
58
49
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army Products (-14.1% 3-year CAGR)
Navy Products (2.6% 3-year CAGR)
Air Force Products (-0.6% 3-year CAGR)
Other DoD Products (-0.7% 3-year CAGR)
Source: FPDS; CSIS analysis
10
DoD Obligations on Services by Component, 1990-2011 $200
Constant 2011 billions
26
$150
26
23 19 20 18
$100
12 23 13
$50
4 13 20
5 16 20
7
6
7
13
13
13
17
18
19
7
15
16
17
23
22
23
7
6
7
16
16
16
16
22
23
22
21
21
22
23
'97
'98
'99
13
15
14
16
16
17
19
'90
'91
'92
'93
'94
'95
'96
19
27
27
26
37
29
34
34
36
32
26
9
8
8
27
30
30
16
30
27
27
29
28 25
24
25
29
'00
'01
'02
38
48
52
53
'04
'05
'06
64
71
80
74
'09
'10
68
$0 '03
'07
'08
'11
Fiscal Year Army Services (-1.5% 3-year CAGR)
Navy Services (2.0% 3-year CAGR)
Air Force Services (-1.4% 3-year CAGR)
Other DoD Services (9.4% 3-year CAGR)
Source: FPDS; CSIS analysis
11
DoD Obligations on R&D by Component, 1990-2011 $50 $45 4
$40
4
$30 2 $25 2
2
$20
2
2
1 10
9
$15
9
9
12
2
2
3
15
11
11
10
13
14 14
11
14
16
10 10
7
12
10
3 11
6 12
11
6
4
4
1 1
6 6
5
$35
Constant 2011 billions
6
12
12
16 13
15
14 12
10 8
$10 6
7
6
6
8
6
6
9
8
6
7
$5 6
5
6
5
5
7
7
6
6
5
5
11
6
8
9
9
9
11
11
11
10
9
8
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army R&D (-10.0% 3-year CAGR)
Navy R&D (-4.4% 3-year CAGR)
Air Force R&D (2.6% 3-year CAGR)
Other DoD R&D (-2.5% 3-year CAGR)
Source: FPDS; CSIS analysis
12
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 38
39
36
35
32
36
40
42
41
44
47
51
57
77
89
159 151 142 133 125 109 112
$0
Percentage of DoD Contract Spending
Constant 2011 Billions
Army Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army (-7.7% 3-year CAGR)
Source: FPDS; CSIS analysis
13
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 60
53
50
49
44
54
50
48
50
51
52
53
59
69
71
74
82
92 101 98
89
105
$0
Percentage of DoD Contract Spending
Constant 2011 Billions
Navy Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Navy (1.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Navy of total DoD contract spending
14
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 45
51
38
41
40
51
52
51
44
46
48
51
58
67
65
63
69
75
Percentage of DoD Contract Spending
Constant 2011 Billions
Air Force Contract Obligations, 1990-2011
5%
66
70
66
65
$0
0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Air Force (-0.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Air Force of total DoD contract spending
15
$450
45%
$400
40%
$350
35%
$300
30%
$250
25%
$200
20%
$150
15%
$100
10%
$50 $0
21
25
20
21
20
20
22
20
20
22
23
27
36
44
46
62
67
64
74
79
75
79
Percentage of DoD Contract Spending
Constnat 2011 Billions
Other DoD Contract Obligations, 1990-2011
5% 0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Other DoD (2.5% 3-year CAGR)
Source: FPDS; CSIS analysis
% Other DoD
16
DoD Contract Obligations by Component in Percentage Terms, 1990-2011 45%
Percentage of DoD Contract Spending
40% 35% 30% 25%
20% 15% 10% 5% 0% '90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Fiscal Year % Army of total DoD contract spending % Air Force of total DoD contract spending
Source: FPDS; CSIS analysis
% Navy of total DoD contract spending % Other DoD
17
Army Obligations by Category, 1990-2011 $180 $160 11 10
Constant 2011 Billions
$140
9 11 8
$120 71 9
$100
11
80 74
64 9
$80
52
9 $60
$40
5
6
13
15
$20 19 $0
18
6 14 16
5 16 15
5 16 11
7 17 12
7
6
19
21
15
14
6 22 13
5 23 15
5 24
17
6 25
8
68
48 38 77
29 48
19
53
20
30
58 45
62
58
49
32
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Army Products (-14.1% 3-year CAGR)
Army Services (-1.5% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
Army R&D (-10.0% 3-year CAGR)
18
Navy Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 13 16
$40 $20
14
16
$80 $60
11
12 7 20
6 20
6
6
17
18
8 6 22 19
8 23
6 22
9 21
8
6
7
23
22
23
12
28
34
15 32
10 27
12 36
37 34
29 27
25
43 33 32 37 32 28 27 29 25 19 23 19 20 21 21 24 23 24
58 54 47 43
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Navy Products (2.6% 3-year CAGR)
Navy Services (2.0% 3-year CAGR)
Navy R&D (-4.4% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
19
Air Force Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 $80 $60
11
11
26
23
30
30
10 9 $40
10
16
13 $20 22
27
12 9
9
7
13
13
13
17
19
19
11
16
16
23
25
15
11
10
10
10 19
16
16
15
16
17
20
18
20
22
24
29
11
12 13
12 27
25
29
29
14
14
14
30
33
27
30
27
26
26
26
25
26
$0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Air Force Products (-0.6% 3-year CAGR)
Air Force Services (-1.4% 3-year CAGR)
Air Force R&D (2.6% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
20
Other DoD Obligations by Category, 1990-2011 $180 $160
Constant 2011 Billions
$140 $120 $100 $80 $60
5 4
$40 $20
2 4
15 $0
2 5
17
2 7
2 6
1 7
2 7
1 8
1 6
2 7
2 8
3 7
3 9
11
12
12
11
12
13
12
12
14
16
4 13
4 12
18
24
4
6
20
23
6 26
6 26
6
30
19
16 38
20
6
42
38
44
47
43
44
26
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Fiscal Year Other DoD Products (-0.7% 3-year CAGR)
Other DoD Services (9.4% 3-year CAGR)
Other DoD R&D (-2.5% 3-year CAGR)
Note: The “unlabeled” category, which totals less than $1 billion per year, was excluded from the figure Source: FPDS; CSIS analysis
21
Overall DoD Contract Obligations by Detailed Component
Source: FPDS; CSIS analysis
22
Contract Obligations for ‘Remaining DoD Agencies’ by Detailed Component
* TMA also includes the Office of the Civilian Health and Medical Program of the Uniformed Services Source: FPDS; CSIS analysis
23
FPDS vs. CSIS Categories for Competition •
FPDS Categories: 1.
Full and Open Competition
2.
Full and Open Competition after exclusion of sources
• Number of Offers 1.
2+
2.
1
3.
Competed under SAP
3.
0
4.
Competitive Delivery Order
4.
Unlabeled
5.
Follow On to Competed Action
6.
Not Competed under SAP
7.
Not Competed
8.
Non-Competitive Delivery Order
9.
Not Available for Competition
10.
Blank
CSIS Categories: 1.
Competition with Multiple Offers
2.
Competition with Single Offer
3.
No Competition
4.
Unlabeled
Note: CSIS determines whether multiple or single offers were received for a contract by referring to the “Number of Offers Received” column in FPDS. Thus, contracted competed (or not) under SAP, a follow on to competed action, or a competitive delivery order, can be either competed with a single or multiple offer. Source: FPDS; CSIS analysis
24
Defense Contract Obligations by Competition, 1990-2011 Competition Category (3-year CAGR)
$450 4
$400
3 1
Constant 2011 Billions
$350
3 133
$250
13 11
$200
$100
23 27 59 60 9
$50
154 148
4
$300
$150
1
Unlabelled (-49.1%)
2
9
3 22 21 17 51 52 47
9
9
8
21 24 60 58 10
7
6
7
8
9
84
75 65 64 65 69 7
8
9
9
106
17
72 71 62 65 64 70 74 85 79 83 85 87
No Competition (-1.1%)
123
14 113 105 31
36
50 47 48 44 48
Competition with single offer (-4.4%)
19
13
11 103
138 149
120 133
160 168 173
192 200 187 182 Competition with multiple offers (-1.8%)
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: Data on Fair Opportunity/Limited Sources are not included; as a result, totals may vary from those listed in government publications. Source: FPDS; CSIS analysis
25
FPDS vs. CSIS Categories for Funding Mechanism
•
FPDS Categories: 1.
Fixed Price
2.
Fixed Price Award Fee
3.
Fixed Price Incentive
4.
Fixed Price Redetermination
5.
Fixed Price with Economic Price Adjustment)
6.
Fixed Price Level of Effort
7.
Cost No Fee
8.
Cost Plus Award Fee
9.
Cost Plus Fixed Fee
10.
Cost Plus Incentive
11.
Cost Sharing
12.
Time and Materials
13.
•
CSIS Categories: 1.
Fixed Price
2.
Cost Reimbursement
Labor Hours
3.
Time and Materials
14.
Combination (applies to awards where two or more of the above apply)
4.
Combination
15.
Order Dependent (IDV allows pricing arrangement to be determined separately for each order)
16.
Other* (applies to awards where none of the above apply)
5.
Unlabeled
17.
Blank
Source: FPDS; CSIS analysis
26
Defense Contract Obligations by Funding Mechanism, 1990-2011 $450
Funding Merchanism Category (3-year CAGR)
$400 33
Constant 2011 Billions
$350 9 13
$300 $250
11 10 11 8
$200 $150
84 30
10 4 30
$100 $50
121 124
74 34
10 4 36
100 96
11 5 33
87
12 6
16 6
45
47
4 6
4 6
7 6
8 7
54
54
53
52
86
73
11 12
90
5 16
95
100
95
98
92
46
6 15
11 10
16
93
Unlabeled (n/a) 107 110 Combination (-30.2%)
95
85
Time and Materials (-15.9%)
59 Cost Reimbursement (4.9%)
54 195 205
98
24 16
18
113 98 103
133
220
247 239 246 244
163 163
Fixed Price (-0.5%)
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: The “other” category, which totals less than $20 million a year, was excluded from the figure. Source: FPDS; CSIS analysis
27
FPDS vs. CSIS Categories for Contract Vehicle •
•
Award Type:
CSIS Categories:
1.
Definitive Contract
1.
Definitive Contract
2.
Purchase Order
2.
Purchase Order
3.
Delivery Order
3.
Multiple Award IDC
4.
BPA Call
4.
Single Award IDC
5.
FSS or Other
6.
Unlabeled IDV
Type of IDV: 1.
FSS
2.
GWAC
3.
BOA
4.
BPA
5.
IDC
6.
Unlabeled IDV
Source: FPDS; CSIS analysis
Multiple or Single Award 1.
Multiple
2.
Single
3.
Unlabeled
28
Defense Contract Obligations by Contract Vehicle, 1990-2011 $450 $400 $350
Constant 2011 Billions
$300
$250
12 22
$200
$100 $50
11
47
52
13 14
$150
12
11 10 13 20 61
74
8 18
6 19
58
56
63
72
58
59
5 22
3 21
4 21
7 34 2
10 34 3
6 11 41 3
6 13
7 14
46
52
3
4
10 17
14 26
15
57
57
156 149
Single Award IDC (-7.4%)
93
7
7
12 9
9
Multiple Award IDC (7.0%)
138 124
135 119
81
FSS or other (7.2%)
Indefinte Delivery Vehicle
35
11
11
36
37
92
160 134 131 134 148 109 102 100 101 104 118 92
50
11
124
59 5
14 32
38
Contract Vehicle Category (3-year CAGR)
11
10 Purchase Order (-3.5%)
176 175
158 167 Definitive Contract (-1.7%)
55
$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Note: The “unlabelled IDV” category, which totals less than $3 billion a year, was excluded from the figure. Note: Total obligations vary from other figures by up to $3.5 billion due to differences in download date and variation between USAspending.gov and FPDS.gov. Source: FPDS; CSIS analysis 29
Top 20 DoD Contractors, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001 Obligations in 2011 M illions Lockheed Martin
$17,993
Lockheed Martin
$35,760
Boeing
$14,770
Boeing
$20,485
Newport News Shipbuilding
$7,241
General Dynamics
$17,984
General Dynamics
$7,062
Raytheon
$13,572
Raytheon
$6,258
Northrop Grumman
$11,881 $99,683
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total for Top 20 Total for DoD
*Joint Venture Source: FPDS; CSIS analysis
Top 20 Contractors in 2011 Obligations in 2011 M illions
$53,325 United Technologies
$3,841
BAE Systems
$7,352
Northrop Grumman
$3,158
United Technologies
$6,873
SAIC
$2,316
L3 Communications
$6,832
Litton Industries
$2,082
Huntington Ingalls Industries
$5,482
TRW
$2,028
SAIC
$5,270
General Electric
$1,874
Oshkosh
$4,741
Textron
$1,608
ITT
$3,549
Health Net
$1,173
Humana
$3,439
Computer Sciences Corp.
$1,072
TriWest Healthcare
$3,093
ITT
$1,005
Health Net
$2,963
Bechtel
$973
Computer Sciences Corp.
$2,953
Exxon Mobil
$821
Dyncorp International
$2,867
BAE Systems
$748
Fluor
$2,722
TriWest Healthcare
$692
Bell-Boeing Joint Project Office
$2,666
Oshkosh
$692
Booz Allen Hamilton
$2,613
$77,408 $181,351
$163,100 $375,317
30
Top 20 DoD Contractors for Products, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001 Boeing
$10,130
Top 20 Contractors in 2011
Obligations in 2011 Millions
Lockheed Martin
$22,171
Lockheed Martin
$9,696
Boeing
$14,467
Newport News Shipbuilding
$5,005
General Dynamics
$13,946
Raytheon
$4,037
Raytheon
General Dynamics
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 Millions
$3,823 $32,691
United Technologies
$8,004 $5,331 $63,920
United Technologies
$2,766
Huntington Ingalls Industries
$5,154
General Electric
$1,796
Oshkosh
$4,709
Litton Industries
$1,665
BAE Systems
$4,462
Northrop Grumman
$1,443
Northrop Grumman
$3,422
Textron
$1,421
L3 Communications
$3,197
Exxon Mobil
$821
Bell-Boeing Joint Project Office*
$2,612
Royal Dutch Shell
$673
Textron
$2,264
Stewart & Stevenson
$521
General Electric
$2,126
Oshkosh
$517
Supreme Group
$2,032
United Defense Industries
$511
General Atomics
$1,461
Longbow LLC
$497
Navistar
$1,389
Cardinal Health
$491
Alliant Tech Systems
$1,385
Alliant Tech Systems
$417
AmerisourceBergen
$1,371
Dell
$393
Austal
$1,365
Motorola
$389
BP
$1,260
Total for Top 20
$47,012
$102,129
Total for Products
$81,837
$176,781
*Joint Venture Source: FPDS; CSIS analysis
31
Top 20 DoD Contractors for Services, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001
Top 20 Contractors in 2011
Obligations in 2011 M illions
Lockheed Martin
$3,021
Lockheed Martin
$5,588
Newport News Shipbuilding
$2,236
Northrop Grumman
$4,634
Raytheon
$1,743
SAIC
$3,894
General Dynamics
$1,462
Humana
$3,439
SAIC
$1,344 $9,806
L3 Communications
$3,224 $20,780
Boeing
$1,316
TriWest Healthcare
$3,093
TRW
$1,308
Health Net
$2,963
Health Net
$1,173
Dyncorp International
$2,861
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 M illions
Northrop Grumman
$991
Computer Sciences Corp.
$2,817
Computer Sciences Corp.
$769
General Dynamics
$2,741
TriWest Healthcare
$692
Fluor
$2,715
Bechtel
$670
Raytheon
$2,704
Dyncorp International
$661
ITT
$2,605
Halliburton
$556
BAE Systems
$2,412
URS
$550
KBR
$2,250
BAE Systems
$546
Boeing
$2,036
MCI/Worldcom
$501
CACI
$1,926
Humana
$500
Hewlett-Packard
$1,746
Jacobs Engineering Group
$493
URS
$1,731
ITT
$473
Bechtel
$1,544
Total for Top 20
$21,006
$56,925
Total for Services
$73,569
$160,037
*Joint Venture Source: FPDS; CSIS analysis
32
Top 20 DoD Contractors for R&D, 2001 and 2011 Rank 1 2 3 4 5
Top 20 Contractors in 2001
Top 20 Contractors in 2011
Obligations in 2011 M illions
Lockheed Martin
$5,277
Lockheed Martin
$8,002
Boeing
$3,324
Boeing
$3,982
General Dynamics
$1,777
Northrop Grumman
$3,825
Raytheon
$2,864
United Technologies Northrop Grumman
Total for Top 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Obligations in 2011 M illions
$958 $723 $12,059
General Dynamics
$1,297 $19,970
Boeing / UTC Joint Venture
$659
Booz Allen Hamilton
$1,048
SAIC
$641
MIT
$947
Aerospace Corp.
$553
United Technologies
$903
TRW
$533
Aerospace Corp.
$886
MITRE
$524
SAIC
$835
Raytheon
$478
Johns Hopkins University
$727
MIT
$433
Wyle Laboratories
$527
Computer Sciences Corp.
$290
JVYS*
$481
Rockwell Collins
$227
BAE Systems
$479
ITT
$212
L3 Communications
$411
Johns Hopkins University
$181
ITT
$339
Oshkosh
$171
MITRE
$330
Textron
$148
CACI
$293
Spectrum Astro
$124
Navmar
$248
Institute for Defense Analysis
$117
Battelle
$221
Total for Top 20
17,352
$28,646
Total for R&D
25,939
38,499
*Joint Venture Source: FPDS; CSIS analysis
33
DoD Contract Obligations by Contractor Size, 2000-2011 $450 Contractor Size Category (3-year CAGR)
$400
Constant 2011 Billions
$350
116
$300 88 74
$200
$50 $0
107
50 38
50 37
113 78
56
101
85
66
$100
100
110
$250
$150
113
82
117
91
114
113
70
41 83
72
89
93
95
110
104
97
95
55
65
69
28
29
34
43
44
54
55
59
61
64
64
60
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Large (Big 6) (-2.7%) Large (-0.2%) Medium (-4.5%) Small (-0.5%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
34
DoD Contract Obligations for Products by Contractor Size, 2000-2011 $250 Contractor Size Category (3-year CAGR)
Constant 2011 Billions
$200
Large (Big 6) (-1.2%)
69
$150 45 $100
41 29
17
17
22 9
26
27
10
'00
'01
22
66
58 57
42
33
34
41
43
44
50
28
16
57
54
48
38
30 $50
$0
64
62
56
53
38
33
36
34
27
12
16
18
23
22
25
25
23
23
21
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Large (-3.2%) Medium (-10.2%) Small (-5.3%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
35
DoD Contract Obligations for Services by Contractor Size, 2000-2011 $200 $180
Constant 2011 Billions
$160
24
$140 $120
18
$100
15
$80 $60
12 9 16
19
28
32
35
16
17
'00
'01
9 16
$40
29
19
21
37
39
54 48
16 42
20
Large (Big 6) (-2.7%) 51
54
42
Large (3.5%)
Medium (-1.0%)
41
44
45
54
58
56
52
42
39
19
22
22
26
28
29
31
36
36
34
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
$20 $0
21
22
Contractor Size Category (3-year CAGR)
Small (2.7%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
36
DoD Contract Obligations for R&D by Contractor Size, 2000-2011 $50 $45
Contractor Size Category (3-year CAGR)
Constant 2011 Billions
$40
$35 27
$30 18
$25 $20
$5 $0
28
26
22
22
20
16
11 4
5
Large (-2.8%) Medium (5.2%)
12
$15 $10
25
25
Large (Big 6) (-6.7%)
6
5
5
5
6
7
7
6
7
6
8
6
6
5
7
6
7
7
5
7
8
6
3
3
3
4
4
5
5
5
4
5
5
5
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
Small (1.8%)
Note: To calculate the market share of small businesses, CSIS divides the sum of obligations to small businesses by total obligations. As a result, the data will vary from other publications that report on small business set-asides. Source: FPDS; CSIS analysis
37
About CSIS At a time of new global opportunities and challenges, the Center for Strategic and International Studies (CSIS) provides strategic insights and policy solutions to decisionmakers in government, international institutions, the private sector, and civil society. A bipartisan, nonprofit organization headquartered in Washington, DC, CSIS conducts research and analysis and develops policy initiatives that look into the future and anticipate change. Founded by David M. Abshire and Admiral Arleigh Burke at the height of the Cold War, CSIS was dedicated to finding ways for America to sustain its prominence and prosperity as a force for good in the world.
Since 1962, CSIS has grown to become one of the world’s preeminent international policy institutions, with more than 220 full-time staff and a large network of affiliated scholars focused on defense and security, regional stability, and transnational challenges ranging from energy and climate to global development and economic integration. Former U.S. senator Sam Nunn became chairman of the CSIS Board of Trustees in 1999, and John J. Hamre has led CSIS as its president and chief executive officer since April 2000 CSIS does not take specific policy positions; accordingly, all views expressed in this presentation should be understood to be solely those of the author(s).
38
