National Association of Government Contractors


Contract Spending Continued Growth in 2018

In 2018, federal contract spending increased for the third straight year to $559 billion, a 9% increase over 2017 spending and the highest level since 2010, when agencies spent $562 billion.  
 
Among the departments with the biggest gains in contract spending in fiscal 2018 were: Defense, Energy, Homeland Security and Transportation. Some of the top markets were weapons, professional services, aircraft parts and technology. 
 
The top six companies' rankings didn’t change from fiscal 2017. They are: Lockheed Martin Corp, Boeing Co., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp. and McKesson Corp. Previously ranked 20th in 2017, United Technologies Corp. is seventh in 2018. All but one of the companies in the top 10 are in the defense industry. 
 
The 200 companies won the same share of total contacts as 2017, which was 64%. In 2018, 32 companies entered the top 200 for the first time. 
 
Trends affecting government spending during the last year included: consolidating spending to best-in-class contracts; expanding agencies’ rapid access to emerging technologies; and small businesses procuring more contracts on a service-needed basis. 
 
Forecasters believe that fiscal 2019's spending obligations could be one of the highest amounts ever, potentially reaching $565 billion. Congress recently passed bipartisan legislation that would remove spending caps approved in the 2011 Budget Control Act, ensuring that both Defense and non-Defense agencies will see significant spending growth next year.



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