The Center for Security Policy has released a report claiming defense contractors in Virginia and minority-owned businesses will feel the biggest impact of sequestration cuts if they occur, Federal Times reports.
For its study, the CSP compared defense expenses for 2011 against two potential cut scenarios: one a 9 percent cut proposed for fiscal years 2013 through 2021 and the other an 18 percent cut if sequestration happens.
In 2011, Virginia-based companies received $54.8 billion from government contracts, according to Sarah Chacko’s story.
The center claims the 9 percent reduction would translate to $5 billion in lost business, with sequestration doubling that amount to $10 billion.
For minority-owned businesses, which posted revenue of $33 billion from federal contracts in 2011, may lose $3 billion from a 9 percent funding decline and $6 billion with sequestration.