Definition

• A "defense contractor" is defined in Title 41, Chapter 1 of the U.S. Code as an employer involved in "the production, maintenance, or storage of arms, armament, ammunition, implements of war and many other products such as tools, clothing or food," or is involved in "the construction, reconstruction, repair or installation" of buildings or structures.
  
  

Examples

• As of 2010, the top 100 defense contractors included Lockheed Martin Corp., with which the Defense Department contracted for $16.7 billion worth of services, such as the production of the F-35 fighter jet. Other top contractors included Boeing Corp. ($10.4 billion), Northrop Grumman Corp. ($11.1 billion), General Dynamics Corp. ($5.4 billion), and Raytheon Co. ($6.7 billion).
  
  

Considerations

• Many defense contractors are small businesses. The Small Business Act requires that small business receive a minimum of 23 percent of the total value of all government contracts.