Boeing's aviation diversity nets $12.8 billion in U.S. defense contracts
While Joint Strike Fighter (JSF) contracts and modifications may make the leading fixed-wing contractor for the , 's combined rotary-wing, airframe and UAV deals were enough to make it the Defense Department's leader for aviation-related transactions in 2011, according to an Aviation Week Intelligence Network (AWIN) analysis.
Boeing secured $12.8 billion in aviation-related work in 2011, the most recent year for which data were available, as aggregated by the National Institute for Computer-Assisted Reporting. Lockheed had $10.8 billion worth of transactions, whilecame in a distant third, with $2.4 billion.
Most of Lockheed's deals were for fixed-wing aircraft contracts, at $10.1 billion. Boeing ranked second in the fixed-wing department, at $8.6 billion.
With about $20.6 billion in transactions, fixed-wing contracts ranked first among overall Pentagon spending for 2011. While fixed-wing expenses have traditionally ranked at the top in previous decades, in 2010 they ranked only third, at about $5 billion, or less than a third of what those expenditures have averaged in previous years.
Engineering and technical services ranked first in 2010, at $8.3 billion, and logistics and support services were second with $7.9 billion. Neither of those expenditure types ranked among the top Pentagon expenses a decade ago, but they have been creeping higher in the rankings during the past few years, garnering larger shares of what had been a growing Pentagon pie. But in 2010, that pie diminished and the analysis suggests these types of service expenses ate directly into contractual-obligation funding for stalwart programs such as fixed-wing aircraft.
While acquisition deals are again providing greater lift for aviation-related expenses, increased aircraft maintenance and modification work also is driving funding, and is expected to continue to do so for some time.
Boeing is seeing a lot of support forand /F programs from the U.S. Air Force and Navy, respectively, especially for upgrades or sustainment. is set to spend $5.8 billion on F-15 programs in fiscal 2008-17, with F-15E Strike Eagles accounting for $3.2 billion of that total, according to an AWIN analysis of data provided by Avascent Analytics. Most of the work—about $3 billion—is for sustainment/modification of the Strike Eagles.
The Navy is projected to spend about $31.9 billion for F/A-18E/F-related programs in fiscal 2008-17, according to the analysis. Modification/sustainment of the F/A-18E/F fleet is expected to cost $9.3 billion.
Despite lawmakers' efforts to block the U.S. from purchasing Mi-17 helicopters from Russian-owned Rosoboronexport for the Afghan air force, the company ranks ninth among Pentagon defense contractors.
|Contractor||Number of Contracts or Modifications||Total Value||Average per Transaction|
|2. Lockheed Martin||1,145||10,808,630,269||9,439,852|
|12. Bell Boeing Joint Project Office||194||320,644,107||1,652,805|
|17. Composite Engineering||40||84,492,118||2,112,303|
|18. Miscellaneous Foreign Contractors||34||53,901,933||1,585,351|
|19. Robertson Aviation||26||52,041,510||2,001,597|
|22. Orion Air Group||1||50,000,000||50,000,000|
|23. Radant Technologies||1||44,803,800||44,803,800|
|24. Maritime Helicopter Support||4||40,119,686||10,029,922|
|25. Middle Georgia Diversified Industries||9||39,668,011||4,407,557|
|26. Sierra Nevada||18||39,039,682||2,168,871|
|29. Alliant Techsystems||18||30,101,201||1,672,289|
|Sources: Aviation Week Intelligence Network, National Institute for Computer-Assisted Reporting|