Sorry that happened to you. I know people who've been continuously employed by DOD, mostly contractor types, since the early '80s, at very good salaries. I know people who've had to move a few times, but don't know anybody who's lost a contract who didn't find new gainful employment in short order. Sounds like you were unlucky.
Well, actually, it was the entire "Space Defense" division of my corporation that was unlucky. Going into Aeorspace I was cautioned by the old guard that this was the nature of the business - I just thought that *I* was going to be immune. I would offer this same caution to those who are contemplating DOD-related work today.
Commercial work is where the action (and opportunity) is. :)