Defense contractors brace for election results

Friday - 10/29/2010, 4:00pm EDT

Federal budget cuts and scaled-back government contracts mean a big chunk of the economic engine for this area has been bracing itself. Politico reports the contracting and IT industry in northern Virginia has been planning for the outcome of next week's elections.

The news isn't all bad. Some of the biggest companies -- SAIC, Booz Allen Hamilton, Northrop Grumman and Lockheed Martin -- are looking at drops in defense spending but also predicting potential increases to their IT business.

The chief knowledge officer at FedSources Ray Bjorklund said it's tough to predict what will happen. Republicans and the Tea Partiers say they want smaller government while also trying to be pro-business and pro-defense, Bjorklund said.

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