DoD: Job losses in Virginia less than expected

The Pentagon’s cost cutting will bite into Virginia less than contractors and lawmakers feared. Deputy Defense Secretary William Lynn says cuts would be made to a narrow band of service support contracts. Those contracts are worth about $4.3 billion, to be reduced by 10 percent.

GovExec reports, federal procurement accounts for nearly one-third of Virginia’s economy, and nearly one in five jobs. Lynn outlined the scope of the spending reductions at a Pentagon meeting attended by lawmakers and industry representatives.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.