BGO V200 Federal Industry Leaders 2 014

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Duncan Amos Bloomberg Government Quantitative Analyst [email protected] +1 202 416 3401 Paige K. Connor Design Director [email protected] +1 202 416 3365 Evan Croen Bloomberg Government Director of Government Sales [email protected] +1 202 416 3109 Brian Friel Bloomberg Industries Government Contracts Analyst [email protected] +1 202 416 3426 Jorge Uquillas Bloomberg Government Quantitative Analyst [email protected] +1 202 416 3542 Tim Yeaney Bloomberg Government Senior Data Analyst [email protected] +1 202 416 3451 Lindsay Bomar Media Contact [email protected] +1 202 416 3417

BGOV200 Federal Industry Leaders 2014

CONTACT Bloomberg Government 1101 K Street NW | Washington, D.C. | 20005 +1 877 498 3587 | www.bgov.com

Bloomberg Government is proud to publish our annual BGOV200 Federal Industry Leader rankings. Our rankings represent the top federal contractors based on fiscal 2013 data for unclassified prime contracts aggregated across all government agencies in the United States. We are proud to see many of our clients and partners on this distinguished list. For more than 30 years, Bloomberg has delivered vital information to financial and business professionals. Bloomberg Government extends that mission, recognizing that the private sector plays a significant role in fulfilling many of the federal government’s critical missions and goals. The industry leaders represented here today advance technology and productivity, create jobs, and provide critical services both domestically and abroad. This year, top federal contractors are at an inflection point. Tightened budgets, strategic shifts, and technological transformation are changing the requirements of your customers and the way you do business. Bloomberg Government provides you with the data, analysis, tools, and news you need to make better, faster decisions regarding your requirements, partners, and opportunities. We look forward to introducing you to our exciting new product developments, enhancements, and analysis and learning more about how we can better serve your information and workflow needs. Thank you for joining us for the BGOV200. I look forward to meeting you all. Sincerely,

Don Baptiste Head of Bloomberg Government

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BGOV200 Federal Industry Leaders Overview The third annual BGOV200 Federal Industry Leaders Study ranks and profiles the top 200 federal vendors by value of prime, unclassified contracts awarded by U.S. agencies in fiscal 2013. It ranks the top contractors at 24 agencies and departments, and in 20 different purchasing categories. Fiscal 2013 represented the culmination of a number of long-building forces in federal contracting. Sequestration, the sustained drawdowns in Iraq and Afghanistan, and increasing budget pressures continued the downward trajectory of federal spending on contractors. Many of the companies that rose in rank this year did so by maintaining previous-year levels and not by winning additional contract dollars. This study examines some of the drivers of contracting dynamics and how vendors have fared and reacted.

products did better than those who provided services. Of the top 20 companies, 56 percent of those who primarily provide products saw gains, compared with 36 percent for services. • Mergers and acquisitions were less significant growth factors in fiscal 2013 compared with fiscal 2012 and 2011. Instead, firms sought to increase efficiency through spinoffs or divestitures. The largest was SAIC’s split into Leidos Holdings Inc. (No. 23), a high-marginfocused technology company, and Science Applications International Corp. (No. 12), a lower-margin government services company. Both companies appear in the top 200, though neither ranked as high as the combined company did in fiscal 2012.

The study finds:

Sequestration and budget pressures

• Total contracts in fiscal 2013 were $462.1 billion, down 11 percent from $516.3 billion in fiscal 2012. The share of total government obligation dollars won by the top 200 was 65 percent, which is on par with fiscal 2012’s 64 percent.

There was a steady overseas military drawdown in fiscal 2013, unlike fiscal 2012, which saw a large reduction of U.S. forces in Iraq. U.S. withdrawal from Afghanistan has been a slower process that continued during fiscal 2013 and is slated to end in fiscal 2014. Even so, companies reliant on contracts supporting the war effort faced decreases in spending. Navistar International Corp., for example, fell out of the rankings this year as the military reduced its needs for Mine-Resistant Ambush Protected (MRAP) vehicles.

• Of the companies in the BGOV200, 106 had declines from a year earlier in contract awards, including seven of the top 10. The other 94 companies increased their government obligations despite the overall contracting decline. • One strategy used by successful contractors was moving into protected markets that experienced less budget pressure. These markets included health services; health information technology (IT); cybersecurity; and intelligence, surveillance, and reconnaissance (ISR). Twenty-one companies that rose in rank on the BGOV200 in 2013 provided goods and services in those four categories. • Contractors with large protected defense programs saw obligations remain steady or increase. Overall, contractors who produced

4 | Overview

The dominant budget issue during fiscal 2013 was sequestration, which took effect on March 1, 2013, and reduced spending below the Budget Control Act caps already imposed by Congress. The automatic spending cuts eliminated $68.4 billion in discretionary budget authority, a 6.6 percent decline: $42.6 billion for defense and $25.8 billion for nondefense. When nondiscretionary spending is included, the cuts are spread evenly between nondefense and defense, because the majority of mandatory spending is in nondefense areas. Sequestration forced agencies to decrease activities and furlough employees. While

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sequestration was initially designed as acrossthe-board reductions, some agencies eventually identified certain areas of flexibility to mitigate its blanket effects. The Department of Defense (DOD) used its annual reprogramming authority to shift money from less-vital programs to critical functions and priority programs, alleviating some of the pain the agency faced from the $37.2 billion budget cut. This reprogramming was used to push money from procurement into operations, though Operations and Maintenance (O&M) absorbed the largest cuts in terms of dollars. Procurement cuts due to sequestration were relatively concentrated, with nearly 30 percent concentrated in 10 programs, including Lockheed Martin Corp.’s (No. 1) F-35 Joint Strike Fighter and General Dynamics Corp.’s (No. 3) Virginia class submarine. To further complicate matters, some agencies faced legal limitations on issuing new starts while the federal government was operating under continuing resolutions (CRs). Only those agencies operating under a full-year CR, such as the DOD and Department of Agriculture, and programs that were specified in partial-year CRs were able to issue new contract starts. All these factors combined to create a tough year for contractors. Declining budgets and sequestration meant that there were fewer dollars to capture as the government contracted out less work and procured fewer items, leaving 53 percent of the top 200 with declining contract awards in fiscal 2013.

Markets in flux Of the 20 purchasing categories explored in the BGOV200, 18 declined in contract dollars in 2013. Only the medical supplies and aircraft categories increased. One of the hardest-hit categories was land vehicles, which continued to decline as military investments in armored vehicles decreased. Oshkosh Corp. (No. 35), however, reversed its 2012 drop in rankings when the Army ordered over $1 billion

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worth of its Palletized Load System, a type of supply and transport truck. Some markets were symptomatic of the lumpy nature of federal spending as projects move from one phase to the next. The space vehicles category, for example, declined by $2.3 billion, and United Launch Alliance LLC (No. 39) experienced a corresponding $2.2 billion decrease in space vehicle contracts -- but it gained $1.0 billion in a different category, transportation services, as the government purchased the company’s Evolved Expendable Launch Vehicle one year and launched it the next. A competitor, Space Exploration Technologies Corp. (No. 78), experienced a similar spending transition. Ships and submarines, one of the few spending categories that were relatively steady between 2012 and 2013, also benefited from the lumpy nature of major acquisitions spending. Huntington Ingalls Industries Inc. (No. 6) was one of the three companies in the top 10 to see an increase in contracting obligations, in part due to the production timing of DHS’s National Security Cutter, which increased Huntington Ingalls’ contract obligations by $564 million over the previous year from just one contract. The fuel category saw upheaval. BP PLC, banned in 2012 from doing business with the U.S. government because of the 2010 Deepwater Horizon oil spill along the Gulf Coast, fell off the list. BP, which in 2012 was No. 2 in the fuel category and No. 27 overall, left a void that other fuel companies rushed to fill. With five new companies in its top 10, the fuel category rivaled food and construction services as the most volatile category in terms of top 10 turnover.

Company reactions While some companies were hurt by budget pressures and sequestration, others were able to maintain or even increase contract totals by focusing on protected programs and achieving internal efficiencies through cost-cutting or restructuring.

Overview | 5

BGOV200 snapshot

The top 200 companies won 65 percent of the U.S. government’s $462.1 billion in fiscal 2013 prime unclassified contracts. This year’s total was the lowest in inflation-adjusted dollars since 2004. The top 200 is made up of 95 public companies, 92 private firms, five universities and eight government-owned entities.

BGOV200 Share

New Kids

38

BGOV200 contractors

65%

This year’s BGOV200 won $330.3 billion in prime contracts.

companies entered the BGOV200 this year.

Politics of the Purse Discretionary budget outlays Discretionary budget outlays $1.5 trillion $1.5 trillion 1.2

Contract obligations Contract obligations

1.2

0.9 0.9 0.6 0.6 0.3 0.3 0

01984 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 1984 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 Republican Democratic Republican Even Democratic Even President Reagan George H.W. Bush Bill Clinton George W. Bush Barack Obama President Ronald Ronald Reagan George H.W. Bush Bill Clinton George W. Bush Barack Obama House House Senate Senate

Headquarters around the world 2

1 1

1

2 1

2

1

22 1

2 1

2

6

1

4 11

32

1

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$29.4 billion FY 2013 U.S. contracts were awarded to foreign-owned BGOV200 companies.

3

3

7

3

7

2

1

2

1 4

U.K. 10 Germany France 4 Ireland Netherlands 4 Italy Canada 3 Kuwait Russia 3 Luxembourg N.J. 3 U.A.E. 2 Saudi Arabia Md. 6 1 Singapore D.C. 2 Afghanistan Australia 1 South Korea Bahrain 1 Sweden Denmark 1 R.I. 2 Mass. 7 Conn. 4

Movers

1 1 1 1 1 1 1 1 1

19

59

companies rose 25 ranks or more.

companies increased in contract dollars.

17

103

companies fell 25 ranks or more.

companies decreased in contract dollars.

WOMEN In charge Fourteen of the companies in the BGOV200 have women at the helm, including No. 1 Lockheed Martin, No. 3 General Dynamics, No. 19 Hewlett-Packard, No. 51 IBM, No. 136 Chemonics International and No. 147 Xerox.

6 |

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Protected programs

Cost-cutting and divestitures

All three companies in the top 10 that increased their contract totals, Lockheed Martin, Huntington Ingalls and McKesson Corp. (No. 10), benefited because they worked on politically protected programs, the F-35 Joint Strike Fighter for Lockheed Martin, a number of warships for Huntington Ingalls and pharmaceuticals for the Veterans Administration for McKesson. Even with cuts from sequestration, these large multiyear programs helped mitigate losses elsewhere and almost guarantee a steady line of funding for the next few years, barring any major shifts in strategy. Many of the companies in the top 200 hold Major Defense Acquisition Programs contracts. Textron Inc. (No. 20) saw increases to its Bell Helicopter unit as the Marine Corps continued to upgrade its UH-1 helicopters, for example.

One strategy for propping up margins in the face of decreasing contracting dollars was internal costcutting. All top five defense contractors reported strong profits in 2013 compared with 2012 despite the fact that four of them had decreasing contract awards. This was at least in part a result of increasing internal efficiencies to offset decreasing obligations.

These protected programs demonstrate another important trend in 2013: Products survived better than services. Of the top 10 companies primarily involved in products, five protected or increased their contract award dollars, compared with three of the top 10 companies that provide services. Harris Corp. (No. 27), for example, saw increases for both of its largest telecommunications equipment contracts. One services company able to weather the decrease was Accenture PLC (No. 61), which moved up 13 spots in the ranking thanks to its acquisition of ASM Research LLC, which did $53 million worth of work with the government in 2012, enough to help boost Accenture’s ranking. That strategy did not work as well for competitor Booz Allen Hamilton Holding Corp. (No. 16), despite its purchase of ARINC Inc.’s Defense Systems Engineering & Support unit. Forty companies managed to rise or stay steady in the rankings despite a decrease in contract awards. The 2013 contracting cycle was so difficult for so many companies that to rise in the rankings, companies often only needed to come close to their fiscal 2012 dollar levels. Many of the companies that increased in rank without increasing obligations are involved in health, such as Pfizer Inc. (No. 60).

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Compared with previous years, 2013 saw fewer significant mergers and acquisitions (M&A) activity; only two companies, Accenture PLC (No. 61) and Chicago Bridge & Iron Co. NV (No. 79), bought their ways to growth. However, 2013 did see a greater number of divestitures and spinoffs as companies separated their high- and low-margin business units. The highest-ranking new entrants to the BGOV200 are Leidos and Science Applications International Corp (SAIC), as a result of SAIC Inc.’s split. Leidos (No. 23), with $2.6 billion in fiscal 2013 contract dollars, targets higher-margin national security, health and engineering business units. SAIC (No. 12), which retained the original company’s name, focuses on lower-margin government services and IT support, though at $3.7 billion in fiscal 2013 contract dollars it ranks higher than its former partner. Similarly, Computer Sciences Corp. (No. 18) sold off its applied technology division to reduce its lower-margin units. As mentioned, ARINC Inc. sold its Defense Systems Engineering & Support unit to consolidate its high-margin units as it prepared to sell itself to Rockwell Collins Inc. (No. 73) in fiscal 2014.

Diversifying into adjacent markets Many of the companies least affected by budget cuts were those that have aggressively diversified in robust markets, notably health, including both IT and services, as well as cybersecurity and ISR. Serco Group PLC (No. 83) was able to offset some losses in its professional services division by moving into health, increasing its overall contract dollars from $661.8 million to $716.2 million, in part due

Overview | 7

to a $200 million contract supporting the Affordable Care Act. CGI Group Inc. (No. 63), which suffered some negative publicity over its handling of the Affordable Care Act health-care website, is nevertheless wellpositioned after diversifying into a number of markets, including visa services for the Department of State. AECOM Technology Corp. (No. 77) increased its contract dollars by $226.6 million in 2013, in part by expanding into the Air Force market in addition to its work with the U.S Agency for International Development. Pacific Architects & Engineers Inc. (No. 58) bought CSC’s applied technology division as it expanded into the Department of Commerce, DHS and Air Force markets, resulting in a $339.6 million increase in contract obligations. Similarly, CACI International Inc. (No. 30) expanded into the ISR market because its traditional funding source, Overseas Contingency Operations (OCO), is slated to decrease. While it did not

8 | Overview

increase its overall contract revenue in 2013, CACI did not decline in the rankings, signifying that its efforts allowed it to perform well relative to its peers.

Going forward The budget agreement reached for fiscal 2014 reduced the effects of sequestration and may spell some relief from the year-over-year contract spending decline. O&M, hit hardest by sequestration, benefitted from the higher funding levels outlined in the omnibus agreement. This is good news for companies like L-3 Communications Holdings Inc. (No. 8), which generates about 65 percent of its DOD sales through O&M funds. In terms of base funding, nondefense activities actually gained more in fiscal 2014 appropriations. Total omnibus defense spending is $520.5 billion, up from $517.8 billion in post-sequester fiscal 2013. Nondefense spending increased to $491.8 billion from $464.5 billion in post-sequester fiscal 2013. Fiscal 2014 OCO spending will be $91.8 billion. Post-sequester 2013 OCO numbers are not available.

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Top Federal Industry Leaders

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Company Lockheed Martin Corp. Boeing Co. General Dynamics Corp. Raytheon Co. Northrop Grumman Corp. Huntington Ingalls Industries Inc. United Technologies Corp. L-3 Communications Holdings Inc. BAE Systems PLC McKesson Corp. Bechtel Group Inc. Science Applications International Corp. DynCorp International Inc. Humana Inc. Exelis Inc. Booz Allen Hamilton Holding Corp. Health Net Inc. Computer Sciences Corp. Hewlett-Packard Co. Textron Inc. Supreme Group BV General Electric Co. Leidos Holdings Inc. URS Corp. Babcock & Wilcox Co. Fluor Corp. Harris Corp. General Atomics Technologies Corp. Battelle Memorial Institute CACI International Inc. Bell Boeing Joint Project Office Los Alamos National Security LLC Honeywell International Inc. TriWest Healthcare Alliance Corp. Oshkosh Corp. California Institute of Technology Jacobs Engineering Group Inc. Sierra Nevada Corp. United Launch Alliance LLC Alliant Techsystems Inc. AmerisourceBergen Corp. Engility Holdings Inc. UnitedHealth Group Inc. Lawrence Livermore National Security LLC Merck & Co. Coins ‘N Things Inc. ManTech International Corp. Refinery Associates of Texas Johns Hopkins University Cardinal Health Inc.

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Contracts $44.3 billion $21.6 $14.0 $13.7 $10.8 $6.4 $6.1 $5.2 $4.9 $4.7 $4.2 $3.7 $3.6 $3.5 $3.5 $3.5 $3.1 $3.0 $2.9 $2.7 $2.6 $2.6 $2.6 $2.4 $2.4 $2.4 $2.3 $2.2 $2.1 $2.1 $2.1 $2.0 $1.9 $1.8 $1.7 $1.7 $1.7 $1.6 $1.6 $1.5 $1.5 $1.5 $1.5 $1.4 $1.4 $1.4 $1.4 $1.3 $1.3 $1.3

Prior rank 1 2 3 4 5 10 6 9 8 11 12 NR 16 17 22 13 18 15 26 31 23 24 7 14 50 35 33 28 32 30 20 34 29 19 44 40 37 52 25 39 46 42 129 41 48 47 38 60 53 61

Page 182 102 150 211 201 161 251 179 95 189 98 225 134 160 138 104 157 126 158 242 239 151 181 254 94 145 156 149 97 107 99 183 159 245 204 109 172 231 250 86 89 136 252 180 190 125 185 214 174 112

Rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98

Company International Business Machines Corp. UT-Battelle LLC World Fuel Services Corp. MITRE Corp. University of California Deloitte Touche Tohmatsu Ltd. SRA International Inc. Pacific Architects & Engineers Inc. AP Moeller - Maersk A/S Pfizer Inc. Accenture PLC ADS Inc. CGI Group Inc. Dell Inc. Savannah River Nuclear Solutions LLC Austal Ltd. National Fuel Inc. Finmeccanica SpA FedEx Corp. GlaxoSmithKline PLC Sunshine Minting Inc. Aerospace Corp. Rockwell Collins Inc. Massachusetts Institute of Technology Total SA Rolls-Royce Holdings PLC AECOM Technology Corp. Space Exploration Technologies Corp. Chicago Bridge & Iron Co. NV UChicago Argonne LLC Wyle Inc. CH2M Hill Cos. Serco Group PLC International Petroleum Investment Co. Alion Science & Technology Corp. Chevron Corp. U.S. Department of Energy Valero Energy Corp. Clark McCarthy Healthcare Partners II Blue Cross and Blue Shield Association Sanofi Caddell Construction Co. Parsons Corp. AT&T Inc. Patriot Team Motor Oil Holdings SA Spectrum Group International Inc. Partnership for Supply Chain Management Inc. 99 Verizon Communications Inc. 100 Great Lakes Dredge & Dock Corp.

Contracts $1.2 $1.2 $1.2 $1.2 $1.2 $1.2 $1.1 $1.1 $1.0 $966.1 million $962.1 $947.6 $941.2 $925.2 $922.5 $921.6 $914.5 $911.2 $892.1 $882.8 $856.3 $854.5 $847.0 $827.7 $789.9 $785.4 $778.7 $771.5 $733.3 $730.7 $720.1 $717.7 $716.2 $709.4 $692.7 $678.3 $673.5 $672.5 $642.6 $632.9 $607.8 $602.9 $602.6 $601.5 $598.5 $596.0 $593.5 $592.6 $589.8 $578.7

Prior rank 45 57 36 56 62 55 59 85 51 64 74 69 67 63 81 66 NR 54 49 113 89 78 70 71 153 75 111 155 NR 88 82 73 95 NR 84 119 83 43 NR 92 76 NR 99 103 148 145 NR 135 112 NR

Page 166 255 263 193 253 131 235 205 90 209 72 74 114 130 223 93 197 144 142 154 238 77 216 188 244 217 75 233 121 248 265 115 228 167 83 120 247 256 124 101 222 108 206 92 208 194 234 207 257 155

Top 200 Federal Industry Leaders rankings | 11

Top Federal Industry Leaders

Rank 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150

Company Contracts S-Oil Corp. $578.1 million Express Scripts Holding Co. $567.5 Brookhaven Science Associates LLC $567.2 Canadian Commercial Corp. $565.4 Mission Essential Personnel LLC $564.8 Kuwait Petroleum Corp. $557.8 Alliance Contractor Team $557.6 Russian Technologies State Corp. $554.0 Corrections Corp. of America $544.6 Nana Regional Corp. $540.6 Vesuvius PLC $534.7 Tetra Tech Inc. $534.0 Arctic Slope Regional Corp. $530.2 Geo Group Inc. $504.1 Bahrain Petroleum Co. $503.0 National Security Technologies LLC $497.7 Airbus Group NV $491.5 AAR Corp. $491.4 Maritime Helicopter Support Co. $490.8 Interpublic Group of Companies Inc. $485.6 Exxon Mobil Corp. $481.2 Royal Dutch Shell PLC $477.7 Environmental Chemical Corp. $468.2 Afognak Native Corp. $467.6 Washington River Protection Solutions LLC $466.2 Akal Security Inc. $464.4 Clark Enterprises Inc. $458.8 Altegrity Inc. $457.7 QinetiQ Group PLC $457.2 Charles Stark Draper Laboratory Inc. $456.1 Siemens AG $450.5 Cubic Corp. $444.3 Abu Dhabi National Oil Co. $436.6 Stanford University $427.4 BL Harbert International LLC $403.4 Chemonics International Inc. $403.4 Chugach Alaska Corp. $402.6 Orbital Sciences Corp. $399.3 Westat Inc. $398.6 KBR Inc. $392.2 Iron Bow Technologies LLC $391.0 Management & Training Corp. $388.5 Tyson Foods Inc. $385.6 Unisys Corp. $384.0 CDW Corp. $380.6 G4S PLC $374.8 Xerox Corp. $373.7 Fermi Research Alliance LLC $373.1 SGT Inc. $367.2 Gazprom OAO $358.3

12 | Top 200 Federal Industry Leaders rankings

Prior rank 116 123 96 90 79 91 65 NR 159 120 180 98 102 181 NR 122 97 131 NR 200 118 21 164 128 126 143 NR 130 115 175 141 132 87 154 86 94 151 93 147 125 133 168 110 170 108 109 127 167 169 NR

Page 221 139 106 110 192 178 84 220 128 196 258 241 91 152 96 198 80 67 186 168 140 218 137 79 261 81 123 87 210 116 230 129 69 237 100 117 122 203 262 176 170 184 246 249 113 147 266 143 229 148

Rank 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200

Company John Snow Inc. ICF International Inc. Al-Raha Group for Technical Services Alliance for Sustainable Energy LLC AC FIRST LLC TASC Inc. Koninklijke Philips NV immixGroup Inc. IAP Worldwide Services Inc. Research Triangle Institute Carahsoft Technology Corp. MetLife Inc. Bristol Bay Native Corp. World Wide Technology Holding Co. Mythics Inc. Federal Prison Industries Inc. Chenega Corp. Neptune Orient Lines Ltd. Ford Motor Co. Chemring Group PLC Redstone Defense Systems Securitas AB Martin’s Point Health Care Inc. Oak Ridge Associated Universities Inc. Russian Space Agency Johnson Controls Inc. DLT Solutions Inc. NCI Inc. Gilbane Inc. Scientific Research Corp. Red River Computer Co. Sodexo Academi Holdings LLC Washington Closure Hanford LLC Husky Energy Inc. Science & Engineering Services LLC Abt Associates Inc. Con-way Inc. ActioNet Inc. EMCOR Group Inc. Intuitive Research & Technology Corp. SRI International Aerospace Testing Alliance Development Alternatives Inc. Aegis Defence Services Ltd. J&J Maintenance Inc. American Shipping & Logistics Group Inc. VSE Corp. Bollinger Shipyards Inc. ThunderCat Technology LLC

Contracts $358.3 $355.6 $353.8 $351.1 $349.6 $348.5 $347.4 $345.1 $342.6 $339.5 $334.3 $333.2 $332.2 $324.0 $320.2 $314.8 $308.5 $304.4 $297.5 $295.4 $291.5 $288.4 $288.2 $286.4 $285.0 $284.7 $282.6 $280.6 $279.2 $278.9 $276.0 $273.9 $273.3 $273.2 $269.3 $267.5 $265.6 $264.0 $262.0 $261.6 $261.3 $261.2 $260.7 $260.6 $260.2 $258.1 $257.5 $254.7 $254.1 $254.1

Prior rank 124 152 NR 178 134 158 NR 157 NR 142 183 NR 187 149 185 NR 138 107 NR 171 NR NR NR 189 104 177 NR 173 136 166 NR NR NR 188 NR NR 179 146 NR NR NR NR NR NR NR NR NR 193 199 NR

Page 173 164 82 85 70 240 177 165 163 215 111 191 105 264 195 141 119 200 146 118 213 227 187 202 219 175 133 199 153 226 212 232 71 260 162 224 68 127 73 135 169 236 78 132 76 171 88 259 103 243

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Civilian vs. Defense breakdown

17.9%

Air Force

Defense snapshot

Defense continues to make up the vast majority of government spending, with two-thirds of all contracting originating from the Defense Department. The Navy overtook the Army this year as the largest spender, following a 20 percent reduction in Army contracting.

28.4% Army

33%

0.5%

Defense Commissary Agency

Spending around the world $10+ billion

$1-$10 billion

$500m-$1 billion

$100-$500 million

$1-$100 million

Army

Less than $1 million Less than $1 million

Boeing leaps to #1 following the sale of Apache helicopters to South Korea.

1.5%

Defense Information Systems Agency

DISA

7

11.0%

#

Defense Logistics Agency

2.5%

Missile Defense Agency

30.4% Navy

$10+ billion

Red River Computer, a small business, jumps into the agency’s top 10 with IT equipment and services work.

$1-$10 billion

3.9%

TRICARE Management Agency

67%

0.8%

U.S. Special Operations Command

1.8%

U.S. Transportation Command

$33.9 billion

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Less than $1 million

Air Force

Navy

DISA

Army

DLA

1.0%

100

15

%

Al-Raha Group for Technical Services enters the top 25 due to the support and repair of Saudi Arabian F-15 fighter jets.

$93.6 billion

Air Force

Navy is the only agency with stable spending.

$200 billion

150

billion

$1-$100 million

Sibling Rivalry (in 2013 dollars)

0.4%

$308.0

$100-$500 million

D.C.

California received more defense contract spending than any other state, beating out Virginia by just $448.4 million. California’s haul is $2.7 billion more than the GDP of Jordan.

Washington Headquarters Services

All other Defense agencies

$500m-$1 billion

Defense Department spending fell year-over-year.

DLA

50

0

2000 ‘01

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

‘13

Five companies in the top 10 primarily provide fuel, compared with six last year.

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Education

15.5%

Energetic Contractor Relationships The top 10 Department of Energy contractors have complicated relationships, with independent companies often partnering to form joint ventures that appear as other members of the top 10. Independent companiesJointJoint ventures Independent companies ventures

Energy

Battelle Memorial Battelle Memorial Institute Institute

0.9% EPA

5.5%

University University of California of California

GSA

12.9% HHS

8.2%

53%

Bechtel Group Bechtel Group Inc. Inc.

Babcock Babcock & Wilcox & Wilcox Co. Co.

of the Treasury’s total contract spending and ...

URS URS Corp.Corp.

AuAu

79

Homeland Security

gold

1.0% 2.4%

47

1.4%

3.9%

Agriculture

Transportation

7

#

4.5%

Treasury

2.7% USAID

24 |

Caddell Construction moves into the agency’s top 10 following contracts to build new embassies in Mauritania and The Hague. 27.0

(percentage change)

16.4

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All other civilian agencies

AID

Veterans Affairs

3.2%

2

#

Land ‘O Lakes leaps into the agency’s top 10 with contracts to supply dairy foods and eggs.

Biggest Winners and Losers De fen

11.8%

of the year-overyear growth was due to an increasing global demand for gold.

State

SA

State

NA

4.7%

16%

Savannah UT-Battelle Savannah UT-Battelle LLC LLC Huntington Huntington Nuclear RiverRiver Nuclear Ingalls Industries Inc. Ingalls Industries Inc. Solutions Solutions LLC LLC University of Tennessee Honeywell International University of Tennessee Honeywell International Inc. Inc.

rgy

NASA

FluorFluor Corp.Corp.

En e

10.1%

107.8

silver

Lawrence Livermore Lawrence Livermore National Security National Security LLC LLC

Sta te

Labor

silver

107.8

Int eri

67%

Lockheed Lockheed Martin Martin Corp.Corp.

Ag

Ag

47

Los Alamos Los Alamos National National Security Security LLC LLC

Interior Justice

gold

19 196.9 6.9

venture JointJoint venture partner partner

HUD

4.6%

79

9.5

cat ion

1.7%

y

33%

Top Treasury contractors sell metals to the U.S. Mint for coins, representing ...

Ed u

1.5%

Commerce

6

sur

3.2%

Agriculture

Of the 18 civilian cabinet departments and major agencies outlined in the BGOV200, seven spent more on contracts in fiscal 2013 than in 2012. Civilian agencies tended to fare better than defense agencies, with total civilian spending relatively flat compared to a 15 percent drop in defense contracts.

Tre a

billion

AGENCYsnapshot

D

$154.1

Ka-Ching

HU

Civilian vs. Defense breakdown

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Houston, We Have a Problem ... Space vehicles saw the largest year-over-year drop in FY 2013.

62

%

2

Number of space transport providers in the top 10 transportation services category United Launch Alliance Space Exploration Technologies

Products vs. services

Category snapshot Services continue to be the most sought-after private-sector commodities that the government purchases. All four of the top purchasing categories of fiscal 2013 involved contractor technical services rather than products. The BGOV200 categories are based on the way the Defense Department — ­ the government’s biggest buyer — analyzes its contract dollars.

61% Services 39% Products

SPENDING Knowledge-based services

$68.7 billion Facility-related services

$60.8 Research and development

$43.8 Technology services

$34.5

$15.6 billion

Aircraft

$32.9 Technology equipment

$25.8 Engines and aircraft components

Lockheed Martin, the builder of the F-35, is the No. 1 manufacturer of aircraft.

$20.0 Construction services

$18.4 Weapons and ammunition

$18.2 Equipment-related services

$17.9 Medical services

$16.6 Medical supplies

$16.5

$643

$318

million Clark McCarthy Healthcare Partners II, a joint venture building the Fort Bliss replacement hospital, is the No. 1 supplier of construction services.

million The amount Clark Enterprises received in fiscal 2013 to build a courthouse in Los Angeles.

Ships and submarines

$15.4

BP dropped from the top fuel suppliers list after being banned from doing work with the federal government following the 2010 Gulf oil spill.

Fuel

United Launch Alliance saw a

91

%

year-over-year drop in space vehicles

but a

75

%

increase in transportation services, as the government moved from buying rockets to launching them.

44 |

$14.4 Transportation services

$10.7 Logistics services

$9.1 Food

$6.7 Land vehicles

$5.6 Drones

$2.3 Space vehicles

$1.4

27.6%

Drones' year-over-year drop was not enough to displace it as the largest growth category since 2000.

$1.6

Oshkosh, the No. 1 supplier of land vehicles, saw its contracts increase as the Army bought its Palletized Load System.

billion BILLION

Other

$22.4

bgov.com