Maryland received $7.4 billion from Pentagon DEFENSE SPENDING

April 08, 1992|By Ted Shelsby | Ted Shelsby,Department of DefenseStaff Writer

The Pentagon spent less money in Maryland last year on equipment -- such as radars for the F-16 fighter plane and electronics for the Patriot missile -- but wrote bigger paychecks to cover the salaries of military and civilian personnel in the state, according to a Department of Defense study.

Overall, Maryland apparently fared pretty well in the Pentagon budget battle. For the fiscal year that ended Sept. 30, 1991, the report notes, the Defense Department pumped $7.4 billion into Maryland's economy, up from $7.21 billion the previous year.

More than half of the spending, $4.13 billion, was in prime contracts with Maryland companies. Although that was 5.7 percent less than in the previous year, Maryland still placed 10th on the Pentagon's list of states receiving the highest dollar value of prime contract work.

In 1990, when its companies were awarded $4.38 billion in prime contracts, Maryland placed ninth on the list.

One indication in the Defense Department study that military installations in Maryland held their own last year was payroll outlays in the state, which increased more than $437 million, to $3.27 billion.

Higher employment levels were reported last year at Aberdeen Proving Ground, Andrews Air Force Base and the Patuxent River Naval Air Station, according to the department's annual economic statistical report.

California, the home of many large aerospace, computer and electronic concerns, retained its ranking as the top beneficiary of Pentagon contracts. California contractors received $24.26 billion in awards last year.

Virginia, with its large shipbuilding companies, dropped a notch last year, to fifth place from fourth. Prime contracts in Virginia fell to $6.78 billion from $7.92 billion in fiscal 1990.

The top five defense contractors in Maryland last year, according to the Pentagon report, were Westinghouse Electric Corp., the Johns Hopkins Applied Physics Laboratory, the Bendix Communications division of Allied-Signal Inc., International Business Machines Corp. and Vitro Corp., a subsidiary of Penn Central Corp.

L Martin Marietta Corp. fell from the top five list last year.

The Pentagon typically reports prime contracts with values of more than $25,000.

The Westinghouse Electronic Systems Group produces radar and electronic jammer systems used in the F-16 fighter plane and other aircraft.

Workers at the Johns Hopkins Applied Physics Laboratory near Columbia are involved in research related to a number of military programs including the Tomahawk cruise missile, the so-called "star wars" missile defense system and the global position satellite system that helps ships and land-based vehicles pinpoint their exact locations.

Much of the work done at the Bendix complex in Towson is classified, but a company spokesman said it produces electronic equipment used in air traffic control systems, communications equipment and fuses that trigger an explosion as the Patriot missile nears its target.

IBM's Federal Systems Co., in Bethesda, makes equipment used in anti-submarine warfare training systems, communications satellites and submarine combat systems.

Top states for defense contracts

States with the most prime contracts issued in 1991 by the Department of Defense, in billions of dollars, and percent change from 1990.

1) California ... ... ... 24.26 ... ... ... +8.74%

2) Texas ... ... .. .. .. 10.22 ... ... ... +11.93%

3) Mass. ... ... .. .. .. 6.93 .. .. .. ... -15.18%

4) New York ... ... .. .. 6.86 .. .. .. ... +0.44%

5) Virginia ... ... .. .. 6.78 .. .. .. ... -14.4%

6) Missouri ... ... .. .. 6.30 .. .. .. ... +3.96%

7) Florida ... ... ... .. 5.17 .. .. .. ... +5.94%

8) Connecticut ... ... .. 4.98 .. .. .. ... +17.45%

9) Ohio ... ... .. ... .. 4.76 .. .. .. ... +8.68%

10) Maryland .. .. ... .. 4.13 .. .. .. ... -5.70%

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