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Northrop Grumman set to Move HQ to DC

On January 4, NG announced that it would move its corporate office from Los Angeles to the Washington DC region by 2011 (with Virginia as the front-runner). With Science Applications International Corporation (SAIC) moving its corporate office to McLean, VA in 2009, NG’s move brings highlights what maybe an industry-wide response to the Obama administration’s promise to cut defense spending and control congressional earmarks.

The 2010 defense appropriations bill set aside nearly $4 billion in earmarks.  As reported by the Wall Street Journal and Tax Payers for Common Sense, this is a 14% drop from last fiscal year. Additionally, the House version of the bill required that all earmarks be subjected to full and open competition, while the Senate version did not.

As the federal budget becomes further strained, there will be fiercer competition for earmarks. It will be interesting to see if other contractors move their corporate offices to the DC region to lobby for their share or the pie.  Any bets on Raytheon moving anytime soon?


Wall Street Journal (emphasis on the growing number of corporations leaving California)

Washington Post (analysis on firms moving their offices to DC rather than staying put)


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