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What's Happening

Defense Contracting Shows Enormous Growth In A Sluggish Economy
by Calvin Bruce

Although on the rebound, the nation’s economy is still sluggish. Many of the service sectors (the airlines and retail industries, in particular) are experiencing unprecedented downsizing. Jobs with old-line professions such as Accounting and Financial Investing have lost some of their luster due to the Enron and Wall Street scandals. Even the healthcare industry has faced hard times due to rising malpractice insurance rates, the widespread shortage of medical staff, and hospital closings.

Against this backdrop, there is one industry that is showing continued growth of unparalleled proportions: defense contracting. Corporations that provide materiel and services to the United States Department of Defense (DoD) are among the most well established and financially secure in the nation. Ambitious, intellectually gifted minority graduates should certainly view obtaining employment with DoD contractors favorably. This article discusses why the defense industry is so strong and what entry-level opportunities are available with defense contractors.

The Priority of National Defense

Since September 11, 2001, the reality of the war on terrorism has gripped our national consciousness. When we receive mail, we open it more cautiously, not certain if it has been tainted with some form of Anthrax. Sitting on an airplane inevitably brings to mind—even for a moment—the tragic events that occurred on that fateful day when jumbo jets rammed into skyscrapers. Even pumping gas makes us much more observant of our surroundings and the possibility that some other homegrown terrorist might be lurking in the shadows.

Other current world events underscore the importance of a strong national defense. At this writing, Operation Iraqi Freedom is fully underway. The U.S. and British-led coalition forces have fought fierce battles against the Iraqi military in the attempt to overthrow the regime of Saddam Hussein. Even as this level of warfare unfolded, our chief military commanders still had some concern that Arab countries sympathetic to Iraq—notably Syria and Iran—might be drawn into the conflict and the threat of biochemical warfare against our troops might still be real. In addition, it has been reported that other Arab countries have sent suicide squads into Iraq to initiate urban warfare—and might have similar plans for attacking us on our own soil. Although the likelihood of this is slim, in a time of war anything is possible.

Without belaboring the point, it is clear that topping the list of national priorities is the concern to defend our country from terrorist threats inside and outside of our borders. In the words of President Bush when signing the Homeland Security Act in November, 2002:

“Today we are taking historic action to defend the United States and protect our citizens against the dangers of a new era. With my signature, this act of Congress will create a new Department of Homeland Security, ensuring that our efforts to defend this country are comprehensive and united.”

Sharing this concern are civilian and government organizations that supply the materiel, personnel and services supporting and sustaining our national defense efforts.

Defense Spending

The Department of Defense is the largest federal agency. It employs 2.3 million military personnel (Active, Reserve, Guard) and over 667,000 civilian workers. The organization is comprised of the Four Armed Services (Army, Navy, Marines, Air Force), 15 defense agencies, and nine Unified Combatant Commands. In terms of their geographic scope, DoD operations are spread over 30 million acres of bases and facilities worldwide.

To get an idea of the magnitude of defense spending, let’s take a look at the prime contract awards issued by the DoD for Fiscal Year 2001. The DoD awarded almost $53 billion just to the top ten companies that won contracts that year. Here is the breakdown of those contract awards (in billions of dollars):

1. Lockheed Martin Corporation (14.7)
2. The Boeing Company (13.3)
3. Newport News Shipbuilding (5.9)
4. Raytheon Company (5.6)
5. Northrop Grumman Corp. (5.2)
6. General Dynamics Corp. (4.9)
7. United Technologies Corp. (3.8)
8. TRW Incorporated (1.9)
9. Science Applications International Corp. (1.7)
10. General Electric Company (1.7).

Information on the top 100 companies that received DoD contracts in FY2001 can be found at http://web1.whs.osd.mil/peidhome/procstat/p01/fy2001/top.htm.

It should be noted that the DoD awards contracts in three categories of procurement: Research, Development, Test and Evaluation (RDT&E); Construction and Other Services; and Supplies and Equipment.

Contract awards made to RDT&E organizations include prominent universities that are on the cutting edge of scientific, technical, and biomedical research. Recent awardees include: Massachusetts Institute of Technology, Johns Hopkins University, Pennsylvania State University, Carnegie Mellon University, University of Texas System, and Georgia Institute of Technology, to name a few.

Other organizations have shared a slice of the DoD contracts award pie. They may not be as well known as aerospace and defense manufacturers, but their direct or indirect contribution to our nation’s defense program is significant. Examples: The Aerospace Corporation, Institute of Defense Analyses, IIT Research Institute, Applied Research Associates, Battelle Memorial Institute, and Science and Technology International.

With the war on terrorism escalating, and Republicans controlling both houses of Congress, defense spending is certain to increase over the next few years. In fact, the defense budget for FY2003 is $396.1 billion, which amounts to $45.3 billion more than allocated the previous fiscal year.

Furthermore, the current military engagement in Iraq raises the stakes in defense spending. President Bush has made a request for a $74.7 billion wartime supplemental budget to support the Iraqi conflict, as well as to fund the ongoing global war against terrorism.

This all means that, by and large, defense contractors can envision a rosy future in terms of federal accounts procurement.

Working for Defense Contractors

The strength of the defense industry is indicated by the number and size of government contracts awarded, the number of personnel employed (in the hundreds of thousands), and revenues generated from non-government business concerns. Focusing on career opportunities with three prominent defense contractors makes the point.

Lockheed Martin: Consistently one of the DoD’s main prime contractors, Lockheed Martin is a global corporation employing over 125,000 employees in 40 different companies. The company is involved in such areas as aeronautical research and development, and in the design and production of combat aircraft, commercial and government satellites, and naval electronics and surveillance systems. From an operational standpoint, major divisions of the company include: Mission Systems, Global Transfer Network, Army Global Command and Control System, and Maneuver Control Systems.

Career opportunities with Lockheed Martin are available for well-prepared candidates with bachelors, masters or doctoral degrees. Entry-level opportunities are available for graduates representing a wide range of academic disciplines: Accounting and Finance, Business Administration, Computer Science, and Engineering (Aerospace, Electrical, Mechanical, Industrial).

To attract top-notch graduates, Lockheed Martin offers a “Leadership Development Program” (LDP) geared to young professionals demonstrating exceptional potential. The program includes job rotations, technical training and an annual leadership development conference. This broad-based training and grooming program encompasses numerous functional areas of the company: Communications, Engineering, Finance, Human Resources, Information Systems and Operations.

Information on summer internships and full-time entry-level positions can be obtained at www.lockheedmartin.com/careers/campus_recruiting/careers.

Lockheed Martin is committed to workplace diversity and to the technical training of minorities. Company employees have won awards such as Black Engineer of the Year, Women of Color in Technology, and Hispanic Engineer National Achievement Award.

Recently the company contributed $1 million to the United Negro College Fund’s Technical Enhancement Capital Campaign. In addition, Lockheed Martin has received recognition by the NAACP for hiring and promoting minorities at its aircraft and logistics centers.

The Boeing Company: Another key defense contractor is The Boeing Company, located in Everett, WA and St. Louis, MO. The company is involved in the development and production of civilian jetliners and military aircraft. In addition, Boeing helped to build the International Space Station and also develops both civilian and government satellites. In particular, Boeing’s Global Positioning System (GPS) is a satellite-based tracking system instrumental in vehicle location systems.

Career opportunities with Boeing are available for academically gifted graduates in many different fields. These include the Engineering disciplines (Aerospace, Civil, Electrical, Industrial, Mechanical, Metallurgical), Computer Science, the human sciences (Physiology, Biology, Medicine), and Business Administration.

The company recognizes the importance of well trained non-technical as well as technical personnel. For this reason, Boeing offers three “College Career Growth” programs designed to enhance development of young professionals. These programs are referred to as the Business Career Foundation Program, the Technical Excellence Program, and the Pre-Management Assessment Process—for those who aspire to moving into the ranks of management.

Boeing has a fully diversified workforce. Their website includes audio testimonials of several minority employees who are pleased with their career choice. (Go to www.boeing.com/employment/culture/.)

Furthermore, interns and graduates can create their own online profile to communicate with corporate recruiters and receive updated information regarding employment opportunities.

Raytheon: Headquartered in Lexington, MA, Raytheon employs over 92,000 employees worldwide. Company revenues for 2000 topped $16.9 billion. The company is involved in developing defense, government and commercial electronics and business aviation and special mission aircraft.

Some of the “hot technologies” associated with Raytheon include: Early Warning systems, Thermal Imaging for commercial and defense applications, In-flight Retargeting, Air Terminal Automation, Environmental Observation, Enemy Identification, and Biometric/Face Recognition.

Raytheon continues to be a major player in the United States’ defense program, including significant involvement in our nation’s Ballistic Missile Defense System. In addition, the company is committed to technologically strengthening our nation’s homeland security initiative. “Raytheon Homeland Security” encompasses the vision, technology and services geared toward making our communities safer from foreign or domestic attack or other threats to the nation’s health and safety.

A significant development of Raytheon Homeland Security is the First Responder Command and Communications Vehicle, unveiled to the press in March 2002. It is a self-contained, state-of-the-art fully computerized communications unit. It tracks, monitors and identifies potential threats or other emergency situations.

The “Jobs” section of Raytheon’s website offers information on career progression and location of specific co-op and internship opportunities related to student’s academic majors and disciplines. (See www.rayjobs.com/campus/). In addition to the Engineering disciplines, opportunities exist for students whose field of study or area of interest encompasses Business Development, Contracts, Finance, Optics, Information Technology, or Human Resources.

Students can also create their own online profile, obtain resume preparation tips, and receive information related to future recruiting events.

Raytheon’s commitment to workplace diversity is solidly ingrained in its corporate culture.

Daisy Jenkins, a vice president within the Human Resources division, comments: “Raytheon continuously demonstrates its strong commitment to attracting and hiring diverse talent by developing and maintaining partnerships with minority-serving academic institutions and organizations, providing career development and mentoring opportunities, and promoting a diverse culture within the company.”

The company recruits diverse candidates at more than 100 college campuses, including numerous Historically Black Colleges and Universities, and offers summer internships targeting minority students.

In addition, Raytheon “participates in national and regional diversity conferences and career fairs to both attract new talent and provide active employees with career development opportunities,” mentions Ms. Jenkins.

On a broader scale, “Raytheon promotes an inclusive culture by hosting Diversity Conferences and multi-cultural events and offering inclusive programs, such as offering domestic partner benefits to employees,” she adds.

Earning Potential

How much can graduates earn working for defense contractors? This depends on the type of position sought, one’s academic preparation, and the sector of the industry and the division of the corporation in which one obtains employment. In general, entry-level jobs with defense contractors match the pay scales of other prominent U.S. corporations in similar industries. Concerned students should contact the companies in which they have an interest for more specific information on salaries, job requirements, and the employment application procedure.

Career Advice

No discussion of employment in the defense industry would be complete without several points of career advice to aspiring college graduates.

First of all, a key component of employment eligibility with DoD contractors is obtaining proper security clearance, especially for more advanced positions. Depending on the company, its relation to the DoD and the level of position sought, receiving security clearance can be a rather long and drawn-out process.

In practical terms, college graduates are advised to have “clean” records before, during and after their academic careers. The minor brushes with the law that are too often shrugged off as college pranks can return to haunt you in unsuspecting ways. Similarly, something as simple as being delinquent in repaying federal educational loans can also receive a negative mark in pre-employment evaluation with defense contractors.

Secondly, the defense industry is, by nature, very conservative in philosophy, organizational mission and strategic operations. This is not to say that companies serving the DoD do not support the goals of workplace diversity; quite the opposite is true. Many of these corporations have well-designed programs in place that promote a fully diversified workforce.

The point to note is that defense contractors are not organizations given to social experimentation and radical political philosophizing. Their employees have a serious job to do, and they need to look and act like dedicated professionals at all times. In practical terms, your dress, grooming and overall deportment should depict you as someone who fits in well with the organization—not as someone who is likely to “rock the boat.”

Thirdly, employment in the defense industry involves process-oriented project work. For this reason, employees should be prepared to move from project to project and oftentimes, from one location to another. Willingness to relocate is definitely a career-enhancing trait for graduates who join a major defense contractor.

Ms. Jenkins further advises: “Minority graduates pursuing careers in the defense industry must maintain strong academic performance, especially in technical disciplines such as math, engineering and computer science. In addition, students must be effective communicators, possess strong interpersonal skills and be able to work in team environments.”

Working for a defense contractor can be the pathway to an exciting, challenging and financially rewarding career. Certainly it’s not a field suited to all college graduates. However, minority graduates who demonstrate outstanding academic preparation, unflinching dedication to a corporate mission, and a genuine teamwork spirit can enjoy the benefits of employment with companies that help our nation remain strong and secure in difficult and uncertain times.


Calvin Bruce has a background in government contracts procurement and is a frequent contributor to THE BLACK COLLEGIAN Magazine.


 

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