Meet the Top 3 Navy Contractors of 2021

In 2021, the Department of Defense’s share of available funding was $1.51 trillion, or 12.4 percent, of the FY21 U.S. federal budget. Just over 40 percent of that $1.51 trillion went to the following three contractors in 2021 for Navy-related awards: Lockheed Martin, General Dynamics, and Raytheon Technologies.

This list is ranked by total contract funds awarded.

1. Lockheed Martin

It’s no surprise that Lockheed Martin is at the top of this list, as it has dominated the aerospace and defense industry for decades. Lockheed Martin was awarded $18,027,274,722 in opportunities by the Navy in 2021. Half of the corporation’s annual sales are to the U.S. Department of Defense. Lockheed Martin is also a contractor for the U.S. Department of Energy and the National Aeronautics and Space Administration (NASA).

Lockheed Martin is known for a wide range of naval support technologies, including surface combat solutions like the AEGIS Combat System and the Littoral Combat Ship (LCS); a range of projectiles and hypersonics; and command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) systems.

The following were some of Lockheed Martin’s biggest U.S. Navy contracts for 2021.

On March 11, 2021, Lockheed Martin Space was awarded a $1,537,874,213 modification to a previously awarded contract (N00030-19-C-0025) for the design, development, build, and integration of equipment for missile flight test demonstrations and fielding.

On December 28, 2021, Lockheed Martin Corp was awarded a $492,685,342 modification to a previously awarded contract (N0001921C0020). This contract provides logistics support to include ground maintenance, supply chain management, pilot training, maintainer training, and training system sustainment for previously delivered F-35 Lightning II Joint Strike Fighter aircraft systems. These aircraft systems were created to support the Navy as well as the Marine Corps and Air Force.

On July 20, 2021, Lockheed Martin Rotary and Mission Systems was awarded a $231,400,000 modification to a previously awarded contract (N00024-20-C-5310) to procure an additional 70 Mk 41 vertical launching system modules and ancillary equipment for DDG 51 class destroyers and FFG 62 class frigates.

2. General Dynamics

General Dynamics (GD) was awarded $11,934,452,513 in opportunities by the Navy in 2021. Not only is General Dynamics the fifth largest defense contractor in the U.S. by total sales, but it is also the fifth largest defense contractor in the world by arms sales.

GD has been separated into 12 operating divisions since 1965. Three of those divisions are the primary providers of naval systems, equipment, and support:

Bath Iron Works has delivered the world’s most formidable ships, such as the Arleigh Burke and Zumwalt class vessels, to naval and commercial fleets since 1884.

Electric Boat is the prime contractor and lead shipyard on all Navy nuclear-powered submarine programs.

NASSCO specializes in the design and construction of auxiliary and support ships, oil tankers, and dry cargo carriers. It is also a major provider of repair services for the U.S. Navy.

The following were some of GD’s biggest  U.S. Navy contracts for 2021.

On October 15, 2021, General Dynamics was awarded a $269,485,986 modification to a Navy contract (N00024-20-C-2120) to provide lead yard support, development studies, and design efforts related to Virginia class submarines. The expected total value of this contract upon its completion in 2024 is $3.8 billion.

On September 30, 2021, GD was awarded a $475 million modification to a Navy contract (N00024-17-C-2117) that provides lead yard support efforts serving the entire Columbia-class fleet of ballistic missile submarines (SSBNs) through 2031. This contract is expected to exceed $17 billion upon completion.

On June 4, 2021, GD was awarded a $72.8 million contract to retrofit five Knifefish surface mine countermeasure unmanned underwater vehicles (SMCM UUV). This is one of many contracts between the Navy and General Dynamics for the Knifefish, as GD is the prime contractor for the Knifefish program. The Knifefish SMCM UUV is based on the General Dynamics Bluefin Robotics Bluefin-21 deep-water autonomous undersea vehicle.

3. Raytheon Technologies

Raytheon was awarded $7,641,076,322 in opportunities by the Navy in 2021. It also ranked #3 in contracts awarded by the Department of Defense overall. Raytheon Technologies Company was formed in April 2020, following the 2019 merger of the Raytheon Company and United Technologies.

The combined company, valued at more than $100 billion, is the world’s second largest aerospace and defense company by sales, right behind Boeing. When it comes to naval support, Raytheon mostly focuses on sensors, command and control systems, advanced strike weapons like the Tomahawk, and ship self-defense weapons like the SM-2 missile.

The following were some of Raytheon’s biggest U.S. Navy contracts for 2021.

On September 29, 2021, Raytheon was awarded a Navy contract (N00024-21-C-5408) for the Evolved Seasparrow Missile, or ESSM This contract funded ESSM Block 2 follow-on production through 2023 for a potential cumulative value of $1.28 billion. This contract included the U.S. Navy and the governments of Canada, Australia, Greece, Germany, Norway, Turkey, Portugal, Belgium, the Netherlands, and Denmark.

On December 21, 2021, Raytheon Missiles & Defense was awarded a $578,314,177 modification to a previously awarded contract (N00024-21-C-5411) for production of the Standard Missile-2 (SM-2). This contract supports the U.S. Navy as well as the governments of South Korea, Denmark, Taiwan, the Netherlands, Spain, Chile, Japan, and Germany.

On July 2, 2021, Raytheon was awarded a $171.6 million contract (N00019-21-C-0053) to begin initial production of its Next Generation Jammer Mid-Band (NGJ-MB). NGJ-MB provides the Navy with the ability to attack enemy air-defense and communications systems electronically. The contract was modified in October 2021 in the amount of $20.6 million and again in December 2021 in the amount of $226.7 million, bringing its cumulative value to $418.9 million.

To see a more detailed list of the top contractors for 2021 and the top 10 defense programs, take a look at Forecast International’s Top 100 White Paper.

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