The Pentagon's budget for buying new weapons rose by about a third over the last three years, to $81 billion in fiscal 2004, up from $60 billion in 2001. Lockheed was the leader in Pentagon primary contracts at $21.9 billion in fiscal 2003. Boeing came in just behind at $17.3 billion. Northrop Grumman followed at $11.1 billion and General Dynamics was fourth at $8.2 billion.

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After the Sept. 11 attacks in 2001, there was merging of U.S. military and intelligence programs when information-technology and domestic security spending in these sectors began in earnest. In national security alone, United States spending now surpasses $500 billion a year.

Lockheed's information-technology sales have quadrupled since 1995, and over these years, they have led as the No. 1 supplier to the federal government in this sector. Today, Lockheed outsources 83% of its IT projects.