The Pentagon Spends A Lot of Money on Everything

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BNET Government provides daily industry trends and global news coverage with insights for managers and executives within the world wide business of government contracting. We analyze new and interesting contract awards, government policy changes, and the trends in procurements and spending. There will also be discussions of the sector with a focus on small and innovative companies and business lines. The world's governments spend billions each year on a variety of hardware and services and the site will discuss how the money is being allocated.

This is a little article in The Dayton Business Journal about a $22 Million contract award to a local company, Lion Vallen. The contract through the Defense Supply Center is to provide storage and shipping of the items a new US Army recruit receives on his first day of training. This would be shirts, pants, boots, belts and whatever the standard personal issue items are. Most companies world wide are considered small businesses. A $22 Million contract to most of them would be a huge addition to their revenue. The Pentagon is paying this just to store and ship to the basic training sites personal items.

The company has 150 employees in Vandalia, Ohio. There continued employment at probably pretty decent salaries and with good benefits has a large impact on the local economy. The Pentagon will spend 272 times the amount of this contract this year on people, equipment, and transportation. The economic effect of this spending is important to the US and if Obama wants to emulate FDR he could build more ships and tanks.

Tags: Training, Pentagon, Workforce Management, Training And Certification, Transportation, Human Resources, Matthew Potter

Matthew Potter works supporting US Army aviation programs. He holds degrees in history as well as studying at the Defense Acquisition University. He has written for Seeking Alpha and at his own website, Defense Procurement News.