Defense Procurement and Contractors
The Department of Defense contracts with private companies to build fighter jets, missiles, naval vessels, and advanced technology. With over $300 billion in annual spending, these partnerships shape U.S. military capabilities.
The Major Defense Contractors
Lockheed Martin, RTX, Northrop Grumman, and General Dynamics dominate, winning the largest contracts for aircraft, missiles, and ships. Lockheed Martin reported $71.81 billion in defense revenue in 2024, while RTX reached $80.74 billion with a $251 billion backlog including $103 billion in defense. Northrop Grumman and General Dynamics also maintain strong backlogs, signaling sustained demand amid global tensions.
Why Defense Projects Cost So Much
Projects like the $2 billion B-2 stealth bomber or expensive Navy ships involve extensive research, complex supply chains, and testing. Despite a massive budget, efficiencies are pursued, such as through South Korean shipbuilding partnerships.
How Defense Procurement Works
DoD officers manage bids, evaluations, and contracts under strict DFARS rules. Learn about defense contract types and doing business with the DoD.
Opportunities for Businesses
Small firms can join via DoD small business programs, subcontracting, or the Mentor-Protégé Program. Register in SAM.gov.
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