DoD: Job losses in Virginia less than expected

Wednesday - 12/22/2010, 9:40am EST

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.

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