Scrutiny over Pentagon official's Boeing ties highlights defense industry consolidation
The year was 1989. The Pentagon was under the command of President George H.W. Bush and Defense Secretary Dick Cheney. And aviation giant McDonnell Douglas Corp. was riding high as the top federal contractor, grabbing 4.6 percent, or $9.15 billion, of all federal contracting dollars. The next two largest contractors, General Dynamics Corp. and General Electric Co., raked in about 4 percent and 3.4 percent, respectively.
Thirty years and many acquisitions later, Pentagon spending has grown far more top-heavy.
Today, Lockheed Martin Corp. and Boeing - which bought McDonnell Douglas in 1997 - together reaped almost 15 percent of total U.S. government contracting dollars in fiscal year 2017, according to the most recent federal numbers. The two aerospace giants are currently the only makers of fast combat jets in the U.S. and are the dominant players for military transport aircraft.
The concentrated power of
