Special Report

15 Companies Making the Most From the Government

humana-logo
Source: Wikimedia Commons

12. Humana Inc.
> FY 2015 contract obligations: $3.61 billion
> FY 2014 contract obligations: $3.59 billion
> FY 2014-2015 change: 0.6%
> Headquarters: Louisville, Kentucky

Health insurance company Humana generates approximately 73% of its revenue through government contracts. Humana began its relationship with the U.S. military in 1993, when it founded a subsidiary called Humana Military Healthcare Services. Today, Humana’s military subsidiary provides health care for the 3.1 million active and retired military personnel in the Department of Defense Military Health System Tricare South region, one of three regions under the nationwide Tricare health system. Humana won its first Tricare contract in 1996, and fought against the government’s decision to award it to rival provider UnitedHealth when it was up for renewal in 2009. Humana succeeded, and in February 2011 was awarded its sixth Tricare contract, which was worth a total of $23.5 billion over five years.

11. Huntington Ingalls Industries Inc.
> FY 2015 contract obligations: $3.66 billion
> FY 2014 contract obligations: $4.66 billion
> FY 2014-2015 change: -21.5%
> Headquarters: Newport News, Virginia

Huntington Ingalls Industries, a 2011 spinoff of defense contractor Northrop Grumman, is the largest supplier of combat ships for the U.S. Navy. The company has supplied approximately 70% of the Navy’s total fleet of warships. Huntington Ingalls is also the only company capable of building the Navy’s nuclear-powered aircraft carriers. Aircraft carriers account for 35% of the company’s revenue.

Huntington Ingalls Industries relies heavily on the demands of the U.S. Navy, which has announced its intent to grow its fleet substantially over the next 30 years. The Navy currently has 274 deployable ships, and has stated a target fleet size of 308 ships. In the most recent update to the Navy Force Structure Assessment, however, the Navy outlined its need for a fleet of 355 ships. While the proposed fleet expansion would not fit under the current budget, President-elect Donald Trump has stated that his administration would lead a major naval buildup once in office. Huntington Ingalls is slated to build a large share of the new ships.

BAE Systems Logo
Source: Wikimedia Commons

10. Bae Systems Plc
> FY 2015 contract obligations: $4.44 billion
> FY 2014 contract obligations: $4.99 billion
> FY 2014-2015 change: -11.1%
> Headquarters: London, England

Defense, aerospace, and security company Bae Systems is the only top 15 U.S. contractor based outside of the United States. While the company is headquartered in London, it has a significant presence in the United States — likely due to its heavy dependence on U.S. government contracts. Of the approximately 82,500 Bae Systems employees, 33,800 work in the UK and 29,600 in the United States.

Many of the thousands of contracts the U.S. government awards Bae Systems each year are for Navy systems. In December of last year, the company was awarded a five-year U.S. Navy contract worth up to $368 million, one of the larger, more recent deals. Under the contract, Bae Systems will provide systems engineering and support services to the Navy’s Strategic Systems Programs (SSP) office, which oversees the UK Dreadnought class of submarines.