Report: DoD Contract Obligations Up 10% in Fiscal 2020

Report: DoD Contract Obligations Up 10% in Fiscal 2020
DoD Contract Spending

The Department of Defense obligated $445.5 billion on contract awards during fiscal year 2020, a nearly 10 percent increase from the year-ago period’s contracting obligations of $404.5 billion, driven primarily by events related to the global security landscape and coronavirus pandemic, Bloomberg Government reported Wednesday.

Lockheed Martin, Raytheon Technologies, General Dynamics. Boeing and Northrop Grumman collectively accounted for 35 percent of the total funds that DoD awarded during FY 2020.

BGOV noted that Lockheed secured the highest amount of contracting dollars at $72.3 billion, followed by Raytheon at $27.2 billion.

The U.S. Navy spent $154.7 billion on procurement efforts in FY 2020, the largest spender among the country’s military branches and the amount was up 21 percent from the previous year.

The U.S. Army provided $115.8 billion to contractors, a 9 percent increase from the branch’s FY 2019 contract spending, while the Air Force awarded $83.2 billion to the private sector, compared with the $83.5 billion spent a year ago.

You may also be interested in...

Gen. John Hyten

Gen. John Hyten: MDA Must Realign R&D Priorities With Core Mission

Gen. John Hyten, vice chairman of the Joint Chiefs of Staff, has said the Missile Defense Agency (MDA) must focus on next-generation concepts and align their capabilities with the core mission. He added that the MDA must revitalize collaboration with the Joint Requirements Oversight Council to inform requirements for air and missile defense.