By the numbers: Pentagon reveals how well — or not — contractors stuck to the budget and schedule
David Daris
We hear about the programs that are over budget and past schedule, with the F-35 Joint Strike Fighter grabbing the most headlines. But which companies do the best and worst in sticking to price and deadlines?
We hear it a lot: Defense programs go past schedule and over budget, often during development. But who among the biggest Pentagon contractors is most notorious for missing the mark?
As part of its 2014 Performance of the Defense Acquisition System report,[5] released last week, the Department of Defense released an analysis of prime contractors in terms of contracted products and services. Those listed as the biggest of the big won't surprise many: Lockheed Martin[6] Corp., The Boeing[7] Co., Raytheon[8] Co., General Dynamics[9] Corp. and Northrop Grumman[10] Corp. accounted for 29 percent of the $308 billion obligated in fiscal 2013.
If you segment the type of contracts by products versus services, the lists change only slightly: Huntington Ingalls Industries bumps Northrop to make the top five in the former, and Science Applications International Corp. (that being the SAIC prior to its September 2013 corporate split) bumps General Dynamics to make the top five for the latter.
But how did companies perform? To figure that out the Pentagon looked at contract programs from 2000 to 2013, analyzing performance in price growth (how much the price tag went up from contract initiation) and schedule growth (how much programs were delayed from the initial timeline). The Pentagon also analyzed development programs separate from production programs, given the former typically bring more delays and price increases.
Under development programs, BAE Systems[11] Inc. in Arlington was the clear winner in performance, with the average price for its programs coming in 3 percent below budget, and the schedule staying on track. Northrop Grumman and Lockheed Martin performed the worst in terms of price for development programs, growing 41 percent and 37 percent, respectively, on average.
Jill R. Aitoro covers federal contracting.
References
- ^ Jill R. Aitoro (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Twitter (twitter.com)
- ^ LinkedIn (www.linkedin.com)
- ^ the Defense Acquisition System report, (www.defense.gov)
- ^ Lockheed Martin (www.bizjournals.com)
- ^ The Boeing (www.bizjournals.com)
- ^ Raytheon (www.bizjournals.com)
- ^ General Dynamics (www.bizjournals.com)
- ^ Northrop Grumman (www.bizjournals.com)
- ^ BAE Systems (www.bizjournals.com)