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.