Study: Tap defense contracts

Ways to tap into a geyser of military spending are outlined in a study scheduled for review by the Nevada Commission on Economic Development this week.

In 2006, $750 million in military dollars came into the state, according to the commission on economic development but that's only about 2 percent of all defense contracts nationwide.

Angelou Economics last month presented its analysis of military spending to economic development agency authorities in Churchill and Mineral counties.

"There's a strong military presence in Fallon and Hawthorne," says Ben Loftsgarden, a project manager with the company headquartered at Austin, Texas. "A huge pipeline of procurement dollars flows from the Department of Defense. But there's no concerted effort to tap into that flow."

Shelly Hartman, executive director, Mineral County Economic Development Authority, notes that Nevada hosts an analysis and advocacy group, the Nevada Military Advisory Council. But it's one of the few states that doesn't hire a lobbyist to advocate for defense spending in the state.

The commission on economic development's Procurement Outreach Program, meanwhile, employs six people to help businesses tap into the stream of defense contracts and other government spending.

Results of the recent study were sent to two private companies doing business in Mineral County: High Desert Special Operations Center as well as Day and Zimmerman Hawthorne Corporation, the prime contractor for the military base at Hawthorne.

AngelouEconomics is also a site selector for military focused companies, says Hartman.

"It was good to have them become familiar with Nevada," she says. The Hawthorne base, she adds, has ample space available for relocating manufacturers.

The study of military spending, while requested by the rural counties, looked at the entire state and sought to find what types of contracts exist nationwide.

It was funded with a $109,000 grant from the Nevada Commission on Economic Development.