The 11 Companies That Will Get Slammed Hardest If We Go Over The Fiscal Cliff

lockheed martin f35 jetLockheed Martin’s F-35 Lightning II multi-role fighter

Photo: Lockheed Martin

Though most of the attention in the fiscal cliff negotiations has been on taxes and revenue increases, lawmakers are also trying to avert $1.6 trillion in spending cuts that kick in after the Jan. 1 deadline. They are cuts that could have a significant effect on companies that make their lifeblood from government contracting.If Congress fails to get a deal that stops this sequestration, the cuts will be carried out in an across-the-board, uniform way, meaning that every civilian program and every defence-related program will get cut by the same percentage.

For civilian programs, excluding Social Security and Medicare, this means an 8.2 per cent across the board cut. For the military, a 9.2 per cent cut for every non-exempt program will apply. 

To find out which companies have the most to lose from the cuts, we took a look at the eleven companies that made the most from government contracting in 2012, based on numbers from Washington Technology. 

11. Harris Corporation

Value of Government Contracts in 2012: $3 billion

Harris Corp. builds radio communications systems and integrated networks, working on IT for both civilian and government defence agencies. For example, the company builds air-traffic control systems for the FAA and designed a new database for the U.S. Census.

CEO William Brown was just appointed by President Obama to the National Security Telecommunications Advisory Committee.

Source: Washington Technology

10. DynCorp International

Value of Government Contracts in 2012: $3.3 billion

DynCorp is involved in law enforcement training and support, security, logistics support, and aviation services.

The company specialises in staffing and providing contractors for the military. For example, the military contracts DynCorp to provide security at its bases in the Persian Gulf.

Source: Washington Technology

9. Computer Sciences Corp.

Value of Government Contracts in 2012: $3.6 billion

A wide variety of government agencies, including the U.S. Navy, NASA, and the Department of the Interior, use CSC services for cloud computing, networks, management consulting and supply-chain management.

Source: Washington Technology,

8. Booz Allen Hamilton

Value of Government Contracts in 2012: $3.8 billion

Booz Allen, a technology and management consulting firm based in Northern Virginia, is involved in a variety of projects for different government agencies.

They contract with the IRS, work on information technology for a number of agencies, and do around $2.5 billion worth of IT work for the Department of defence.

Source: Washington Technology

7. Hewlett-Packard

Value of government contracts: $4.1 billion

HP provides computers and IT for homeland security, defence, intelligence, and some civilian government agencies.

Source: Washington Technology

6. General Dynamics Corp.

Value of Government Contracts in 2012: $5.5 billion

General Dynamics builds ships for the U.S. military and other national security agencies. Most notably, they are making half of the new 'Virginia' class of submarines, each of which are 75-feet long and cost $2.4 million to build.

About one-quarter of General Dynamics' government business is with the civilian side, mostly in providing IT for the Departments of Health and Human Services Justice, and Homeland Security, and the FAA.

Source: Washington Technology

5. Raytheon Co.

Value of Government Contracts in 2012: $5.7 billion

A giant in electronic defence systems, Raytheon is the largest manufacturer of missiles in the world, and the maker of the iconic Tomahawk missile.

Source: Washington Technology


Value of Government Contracts in 2012: $5.9 billion

SAIC works on tech integration for defence programs, specifically surveillance and reconnaissance tech. The company also provides IT for intelligence and energy agencies.

SAIC creates equipment -- like this tsunami detection buoy -- based on government demands.

Source: Washington Technology,

3. Boeing

Value of Government Contracts in 2012: $7.5 billion

Boeing is one of the top two aircraft manufacturers in the world. In addition to manufacturing commercial aircraft -- such as the 747 and the Dreamliner 787 -- the company has contracts with NASA and the defence Department, and produces military technology for other countries.

Source: Washington Technology,

2. Northrop Grumman Corp.

Value of Government Contracts in 2012: $9.1 billion

Northrop Grumman makes aerospace, marine, and electronic systems for the U.S. military, including the iconic B-2 bomber. More recently, the company has been manufacturing drone prototypes.

Source: Washington Technology

1. Lockheed Martin Corp

Value of Government Contracts in 2012: $17.4 billion

Lockheed Martin is the largest defence contractor in the world, catering to every branch of the military, the Pentagon, and NASA.

Currently, the company is manufacturing the F-35 Joint Strike Fighter plane.

With the value of its government contracts nearly double the next largest contractor, Lockheed Martin clearly stands to lose the most if Congress can't reach a deal to avoid the sequester.

Source: Washington Technology,

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