Defense R&D Vendors Resilient to Shrinking Federal Supply Base

The federal government supplier base dipped slightly in fiscal 2024 with about 800 fewer contractors winning work than in the previous year as Defense Department research and development contractors continued their longer-term growth trajectory.

Companies that work with civilian agencies and the Pentagon — including large, veteran contractors such as Lockheed Martin Corp. and RTX Corp. — represented 16% of the federal supplier base in fiscal 2024, while companies that worked with only civilian agencies made up the largest share at 57%.

Leading companies in the civilian-only category included Energy Department contractors UT-Battelle LLC and Savannah River Nuclear Solutions LLC, ...