Its just not defense

Lockheed Martin was awarded a contract by the Department of Homeland Security to provide human resources support to the Transportation Security Administration (TSA). See an article here. The contract could last eight years and have a value of over $1 B dollars. The company will provide support to all aspects of the TSA’s personnel system.

Decline in Federal spending may reduce business for contractors

This article in FederalTimes.com states that due to cutbacks in spending in the President’s 2009 budget the Federal government will reduce what it spends on contractors a substantial percentage. This is not only in DoD but also in Homeland Security and the State Department as well. Part of this is budget cuts to the various programs but also the predicted removal of US troops from Iraq. Whether this will really pan out will have to be seen. The final 2009 budget won’t be out until October-December, and there also may be various supplementals to support the war in Iraq and Afghanistan. At some point the wars will be winding down and this will have a significant effect on Defense’s spending. Historically the US budget for these activities have gone from boom to bust very quickly.