McDonnell Ranks First in Pentagon Research Contracts

L.A. Times Archives

March 31, 1988 12 AM PT

Associated Press

WASHINGTON — McDonnell Douglas Corp. became the Pentagon’s top research contractor in fiscal 1987, winning awards totaling $1.7 billion, the Defense Department said Wednesday.

Among educational and nonprofit entities, the Massachusetts Institute of Technology continued to hold the top ranking, winning research contracts during the year worth $407.6 million.

Johns Hopkins University was close behind with awards totaling $354.9 million.

Overall, the Pentagon increased its spending on research by more than 10% during fiscal 1987, with awards reaching a grand total of $21.8 billion. That compared to $19.8 billion in fiscal 1986.

Annual Pentagon Report

Much of last year’s increase appeared related to work on President Reagan’s “Star Wars” anti-missile system. The amount of money invested in research on “missile and space systems” climbed from $6.9 billion in fiscal 1986 to $7.9 billion in fiscal 1987.

Moreover, Martin Marietta Corp.--a key Star Wars contractor--vaulted from fifth place in the fiscal 1986 rankings to second place last year with contract awards rising from $695.3 million to $1.6 billion.

The latest figures are contained in a report prepared annually by the Pentagon to rank the top 500 companies or nonprofit groups performing “research, development, test and evaluation” work. The rankings are based on a review of contracts totaling $25,000 or more awarded during the fiscal year that ended last Sept. 30.

McDonnell Douglas, whose overall ranking as the nation’s largest defense contractor was announced just a month ago, displaced Lockheed Missiles & Space Co. in assuming the top spot for research. McDonnell Douglas’ research contracts climbed from $928 million in fiscal 1986 to $1.7 billion in fiscal 1987.

Because of Martin Marietta’s abrupt rise, Lockheed fell to third place in the research rankings, winning contracts in fiscal 1987 worth $1.54 billion, compared to $1.48 billion the year before.

The remainder of the top 10 included Boeing Co. in fourth place, with awards totaling $1.2 billion, followed by Grumman Aerospace Corp., $901.5 million; General Electric Co., $784.4 million; Raytheon Co., $593.8 million; TRW Inc., $556.6 million; Rockwell International Corp., $494 million, and IBM, $470.9 million.

The $407.6 million in research contracts won by MIT was enough to give it the 11th-place ranking overall. In fiscal 1986, MIT had won contracts worth $363.9 million and was ranked 14th overall.

Among other educational and nonprofit entities, Johns Hopkins was second in fiscal 1987, with $354.9 million, and had 15th ranking overall, followed by Mitre Corp., $347.5 million, 16th overall; Aerospace Corp., $338.9 million, 18th overall, and Charles Stark Draper Lab Inc., $164.7 million, at 26th overall.

All told, the top 500 concerns accounted for 97% of the total research contracts awarded, or $21.2 billion. The top 500 included 380 businesses, 100 educational and nonprofit organizations, three U.S. government agencies and 17 foreign contractors.

The research awards to foreign concerns totaled $114.3 million, up only slightly from the $106.9 million reported in fiscal 1986. The leading foreign contractor remained the same, Canadian Commercial Corp., with awards totaling $25.9 million.

THE PENTAGON’S RESEARCHERS

Top Research Contractors Contracts awarded in 1987 (millions)

1. McDonnell Douglas Corp. $1,700

2. Martin Marrietta Corp. 1,600

3. Lockheed Missiles & Space Co. 1,540

4. Boeing Co. 1,200

5. Grumman Aerospace Corp. 901.5

6. General Electric Co. 784.4

7. Raytheon Co. 593.8

8. TRW Inc. 556.6

9. Rockwell International Corp. 494.0

10. International Business Machines 470.9