THE DAILY FED
D.C. Area Firms Win Big
Washington, D.C., area firms were awarded $20.8 billion in federal contracts in 1996, the highest amount ever, The Washington Post reported today.
D.C. area businesses won 7 percent more contracts than in 1995, preliminary figures from the General Services Administration show. Analysts warn that the numbers may change as errors are cleared up and information is updated with contracts awarded late i n the year.
The contract boost created 10,000 jobs in the D.C. area, an analyst told the Post. As many as 170,000 jobs in Washington, Northern Virginia and suburban Maryland are supported by federal contract dollars, which account for one-eighth of the area's $170 billion economy.
The preliminary GSA data show that Northern Virginia and D.C. firms are winning more contracts, while Maryland companies are losing ground. Northern Virginia posted a 16 percent increase over 1995 and D.C.'s figures went up 9 percent, while Maryland saw a 9 percent drop. Military contracts to large information technology companies may account for the gain in Northern Virginia, analysts said.