UAH says BRAC could triple federal deals for local firms

A new study estimates that Alabama companies - particularly those in this area - could triple their money from federal contracts after Base Realignment and Closure moves are complete in 2011 and NASA's moon mission is in full swing by 2015.

The University of Alabama in Huntsville study, titled "Redstone Arsenal 2006 & Beyond," estimates Alabama companies now get about 16 percent - or about $2 billion - of the contract money generated by Redstone Arsenal. That figure could grow to more than $6 billion, according to the study.

Jeff Thompson, the principal investigator on the UAH study, said Redstone is a leading economic machine for Alabama and its effect on the economy is expected to keep growing.

The study was funded by the Alabama Department of Economic and Community Affairs.

In 2005, President Bush and Congress approved Army military command moves that add an estimated 4,700 government and direct contractor jobs at Redstone and as many as 4,700 support contract jobs. The BRAC moves have the potential to add $800 million in annual payroll to the local economy by 2011, according to the UAH study.

In addition, the study estimates the Department of Defense will spend $637 million over the next four years for building construction on Redstone. The peak year comes in 2009 with $299 million in construction spending.

The UAH office also estimates new federal job and contract opportunities will include providing goods, technical services, research and development services, base support services and construction and maintenance services.

The combined budgets for all of the federal offices and commands based at Redstone was more than $25.9 billion in fiscal year 2005.

The three largest budgets are attributed to the Army Aviation and Missile Command, $7.7 billion; Marshall Space Flight Center, $2.1 billion; and Army Space & Missile Defense Command, $1.3 billion. The three federal employers generated $575 million in payroll dollars in 2005.

In 2005, all of the federal work at Redstone put about $2.1 billion in to the Alabama economy. Traditionally, 74 percent of that figure - or $1.55 billion - stays within 50 miles of Huntsville, according to the UAH study.