Seal of the Governor
For Immediate Release: June 1, 2018
Contacts: Office of the Governor: Ofirah Yheskel,

Governor Northam Announces the Virginia Department of Defense Contract Spending Impact Tool

RICHMOND—Governor Ralph Northam today announced the release of the latest update of the Virginia Department of Defense (DoD) Contract Spending Impact Tool, featuring supply-chain mapping of DoD contract awards.

The website is designed to provide clear and meaningful state, county, and metropolitan statistical area details about the current and projected economic impacts of DoD contract spending, including spending and employment impacts.

“Department of Defense contract spending is a key underpinning of Virginia’s economy and we have a responsibility to help compete and win for these important projects,” said Governor Northam. “The Virginia DoD Contract Spending Impact Tool will be available for all to use—from government leaders, to workforce partners, to the general public—and will not only equip us to better understand where exactly Virginia’s defense contract spending is, but also help us understand long-term effects and the ripple impacts on our local economies as we see changes in defense-related contract spending.”

In Federal Fiscal Year (FFY) 2017, defense contract spending in Virginia was $34.6 billion. Based on President Trump’s budget and historical spending trends, defense contracts performed in the Commonwealth are estimated to increase by 12.6 percent to $38.9 billion in FFY 2019. The impact model provides clear and meaningful details about the current and projected economic impacts of federal contract spending in the Commonwealth across counties, metropolitan statistical areas, and workforce development areas. The model is intended to be user-friendly, equipped with links that outline navigating the tool and uses of the model.

“We are thankful for our partnership with Chmura Economics & Analytics,” said Virginia Secretary of Veterans and Defense Affairs Carlos Hopkins. “The grant my office received from the federal Office of Economic Adjustment (OEA) for the evaluation model will make this tool available at no cost to the Commonwealth through 2020. The information provided by this tool will prove invaluable as we continue to work with our federal, state, and local partners to protect Virginia’s defense assets and support local economies.”

“Even though defense spending is expected to increase over at least the next two years, regions that are dependent on defense spending need to be considering ways to diversify their economies for an eventual downturn in defense spending and this tool is intended to do just that,” said Dr. Christine Chmura, Chief Executive Officer and Chief Economist, Chmura Economics & Analytics.

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