Dept. of Defense: New Opportunities Related to Economic Stimulus


Department of Defense ARRA Appropriations

Department of Defense ARRA Appropriations

There appears to be little buzz about the Department of Defense with regards to the economic stimulus bill. After all, the DoD received a “mere” $7.4 Billion in allocations. However, for companies seeking to conduct Federal government-related business, it could be profitable to turn an eye toward DoD spending priorities as it just may open new territory.

Of particular interest is the type of spending projects inlcluded in the bill. No guns or tanks here. Instead, much of the money is going to improve the living conditions of soldiers and their families. Examining plans for the DoD, we find significant spending relating to projects such as childcare centers, housing and facility construction or modernization, new healthcare/hospital facilities, and the ever-present “green” initiatives for energy efficiency improvements.  Here are a few details from the expenditure plan:

  • $4.2 billion in Operation and Maintenance accounts to improve, repair, and modernize DoD facilities
  • $1.3 billion in military construction for hospitals
  • $240 million in military construction for child development centers
  • $100 million in military construction for warrior transition complexes
  • $535 million for other military construction projects, such as housing for the troops and families
  • $300 million to develop energy-efficient technologies

While traditional vendors have a foothold on these projects, political sensitivities to job creation, accountability, and even small or minority owned companies may spell opportunity for businesses not typically focused on this critical sector.

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