Pentagon Contracts Awarded Without Competitive Bidding: A Troubling Trend

The Center for Public Integrity has shed light on a disturbing practice in the US military contracting system, revealing that over 40% of Pentagon contracts are awarded without competitive bidding. This noncompetitive trend has been particularly beneficial to some of the largest military contractors, with Lockheed Martin receiving the most Pentagon business on a noncompetitive basis. The report highlights the Pentagon's increasing reliance on military contractors, with half of the military budget currently being outsourced to private companies. This trend is underpinned by a lack of accountability, with the Pentagon hiring contractors to oversee and manage other contractors, rather than government officials.

Key Takeaways:

• Over 40% of Pentagon contracts are awarded without competitive bidding, totaling $362 billion over the past six years.
• Lockheed Martin has been the greatest beneficiary of this policy, with 74% of its $94 billion in Pentagon contracts awarded without competition.
• Boeing and Raytheon, the nation's second- and third-largest contractors, respectively, also secured a significant portion of their contracts without competition, at 60% and 67%, respectively.
• Of the top 10 military contractors, 9 won more than half of their Pentagon contract dollars through noncompetitive awards.
• The US military is increasingly dependent on contractors, with half of the military budget currently outsourced to private companies.
• The Pentagon has reduced the number of government officials who supervise contractors, instead hiring contractors to oversee and manage other contractors.
• Military contractors have become skilled at Washington politics and in providing jobs for Pentagon officials after they leave the government.
• President Bush, Senator John Kerry, and the Republican Party have received significant campaign donations from military contractors, with the Republican Party receiving $62 million since 1998.

Statistics:

• 40% of Pentagon contracts are awarded without competitive bidding.
• Lockheed Martin received 74% of its $94 billion in Pentagon contracts without competition.
• Boeing secured 60% of its $81 billion in Pentagon contracts without competition.
• Raytheon received 67% of its $40 billion in Pentagon contracts without competition.
• The top 1% of contractors won 80% of all Pentagon contracting dollars over the six-year period.
• Half of the military budget is currently outsourced to contractors.
• The Pentagon has reduced the number of government officials who supervise contractors from 200,000 to 150,000 over the past six years.

Sources:

• "Pentagon's No-Bid Contracts: The Supply Side" by the Center for Public Integrity
• "Inside Track" chart provided by the Center for Public Integrity
• "Congress Seeks Scrutiny of DoD's Contracting Process" by Defense Daily
• "The Pentagon's Bungled Contracting Process" by the Washington Post