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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