What Types of Contractors Are Commonly Employed by the Government?

Contractors commonly used by the federal government include those in the defense industry, information technology, telecommunications, engineering and consulting. Some of the companies which received the most money in federal contracts in 2014 were Lockheed Martin, Hewlett-Packard, Raytheon, Verizon Communications and Booz Allen Hamilton.

In a list of contractors ranked by the amount of revenue received from the government, Lockheed Martin is at the top in 2014 and 2015. The company received $11,700,962,000 in 2014 from contracts with the federal government. The Hewlett-Packard Company ranked sixth in the same two years. Raytheon was number three in 2014, with earnings of $4,815,472,000, and number four in 2015. Verizon was number 14 in 2014, and it rose to number 11 in the 2015 rankings. Booz Allen Hamilton is a consulting firm that was listed as number seven in both 2014 and 2015.

State and local governments use contractors for services like construction, finance and accounting, food services, marketing, and security. Contractors who wish to do business with the government at any level typically begin by bidding on a project, following guidelines established to make the process fair and to reduce costs. Federal government proposals must adhere to the Federal Acquisition Regulations, while state and local governments typically have similar laws that must be followed.