SECTORAL COMPOSITION AND SPATIAL-DISTRIBUTION OF DEPARTMENT-OF-DEFENSE SERVICES PROCUREMENT

The purpose of this research is to analyze the composition and distrib ution of Department of Defense (DOD) services procurement. The results indicate producer services comprise 53% of DOD services outlays. Defe nse expenditures for services are particularly important in the Washin gton, D.C., region and in states that either produce weapons or house defense-related R&D facilities. Defense expenditures are providing imp etus to service sector growth in Virginia and, simultaneously, are pro viding the initial stimulus for development of producer services in st ates such as New Mexico.