As the Department of Defense’s spending on classified programs rises, defense contractors have reported increases in revenues related to “restricted†projects as reflected in their regulatory filings and annual reports, Defense One reported Wednesday.
Consulting firm Avascent said DoD’s classified spending climbed 6 percent between fiscal year 2019 and FY 2020 and constitutes about 11 percent, or approximately $76B, of the $718B proposed budget for FY 2020.
Lockheed Martin secured a $600M contract to perform development work on a classified hypersonic weapon program and Chief Financial Officer Ken Possenriede said the company expects the work to climb to about $1B.
The report said Raytheon and Northrop Grumman have also seen increases in bookings associated with classified programs.
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