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Wisconsin sees big drop in Federal contracts


UNDATED (WSAU)   Wisconsin has suffered a big loss in the amount of money it gets from federal contracts. The Wisconsin Procurement Institute said the state’s businesses received $3.4-billion in federal contracts in the last fiscal year which ended September 30th. That’s down a whopping 52-percent from the $7.2-billion they received in fiscal 2011. As a result, Wisconsin is now 28th among the 50 states in the amount it receives in federal contracts – down from 22nd the previous year.

A major reason for the drop is that the war in Afghanistan is winding down. Preliminary figures show that the Army spent 75-percent in the Badger State this year than last. The Oshkosh Corporation, famous for its military vehicles, saw its federal business drop from about $7-billion in 2010 to just under $4-billion this past year.

Aina Vilumsons, who heads the Procurement Institute, said the final figures for 2012 could go a little higher once all the agencies report their contracts. But she said the overall decline will not change – and more cuts appear to be on the way, as Congress keeps slashing the federal budget. The numbers of Wisconsin firms getting federal contracts dropped from about 2,950 last year to just under 2,400 in fiscal 2012.