DOD spending

Ouachita County tops Department of Defense spending in Arkansas during fiscal 2020.

South Central Arkansas received the most Department of Defense contract spending among all Arkansas counties in the 2020 fiscal year.

The Department of Defense’s Office of Local Defense Community Cooperation released its Fiscal Year 2020 Defense Spending by State report to help states and communities better understand the components of defense spending on procurement and personnel.

The military spent $400.9 million on contracts to businesses located in Ouachita County. Ouachita County, home to the massive Highland Industrial Park complex of defense contractors, ranked No. 1 among all Arkansas counties in contract spending. Pulaski County was second at $338 million.

Columbia County, thanks in large part to federal contracts held by Amfuel, was No. 8 in the state at $8.3 million.

In terms of military spending on personnel, Pulaski County was No. 1 at $490.4 million, thanks to the presence of Little Rock Air Force Base. Sebastian County, which enjoys Air Force Reserve and Army National Guard components in and around Fort Chaffee, was second at $63 million.

Bossier Parish, LA, was also a major beneficiary of defense contract and personnel spending. The Department of Defense had a $492.3 million payroll in the parish, which is home to Barksdale Air Force Base. Defense contractors in the parish also pulled in $87.2 million during fiscal 2020.

CLICK HERE to see the complete report.

Defense spending rose in Fiscal Year 2020. DoD contract obligations and payroll spending in the 50 states and the District of Columbia increased by $43 billion, or 8 percent, over the prior year. This was driven by a 9 percent increase in DoD contract obligations. Personnel spending in the 50 states and the District of Columbia increased by 5 percent.

DoD contract obligations and payroll spending totalled $593.9 billion, which is 2.8 percent of the country’s gross domestic product (GDP). If the total spending were divided across every U.S. resident, it would amount to $1,803 per U.S. citizen. Of those funds, $439.4 billion (74 percent) were spent on contracts for products and services, while the remaining $154.6 billion (26 percent) paid the salaries of DOD personnel.

Texas, Virginia, and California topped the list of recipients for overall defense spending. However, Virginia, Hawaii, and Connecticut ranked highest when considering defense spending’s impact on their states’ GDP.

Texas, Arizona and Maryland had the largest increases in DoD spending from Fiscal Year 2019 to 2020. This was driven by large contracts to Lockheed Martin in Texas, Raytheon in Arizona, and Lockheed Martin in Maryland. These contracts were related to the production of the F-35, missiles, and ship building and repair.

All 10 companies were on this list in Fiscal Year 2019. L3Harris Technologies (73 percent), Lockheed Martin (60 percent), and Raytheon (29 percent) had the largest year over year increases. Both Lockheed Martin and Raytheon are present in Ouachita County.

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