Two manufacturers of the COVID-19 vaccine accounted for a significant increase in the Pentagon's state-by-state spending in fiscal year 2021, driven by large contracts related to vaccine and treatment purchases, according to new data from the Defense Department.
Though they are considered “anomalies” tied to targeted pandemic spending, both Pfizer and Moderna made the Pentagon’s top 10 list of contractors in FY-21, according to a new “Defense Spending by State” report released today.
“Eight of the ten companies were on this list in Fiscal Year 2020,” DOD said. “Pfizer, Inc. and Moderna, Inc. were both new to the list and are anomalies for traditional defense spending.”
The report shows Pfizer accounted for $13.3 billion in contracts, while Moderna accounted for $6.9 billion. Pfizer is in sixth place and Moderna is 10th when it comes to DOD’s top 10 recipients of defense contracts. Lockheed Martin, the largest defense company in the world, occupied first place with $39.2 billion in contracts, followed by Boeing at $23.6 billion, Raytheon Technologies at $21.4 billion, General Dynamics at $16.9 billion and Northrop Grumman $15 billion.
New York, Washington and Massachusetts were the states that saw the largest overall increases in DOD spending from fiscal year 2019 to 2020, “driven by large contracts to Pfizer, Inc. and Regeneron Pharmaceuticals, Inc. in New York, Boeing and ANA Holdings in Washington, and Moderna, Inc. in Massachusetts,” according to DOD.
“The contracts in New York and Massachusetts were related to COVID-19 vaccine and treatment purchases by DOD, in coordination with the U.S. Department of Health and Human Services,” while the contracts in Washington were to procure and maintain aircraft and missiles, according to the department.
Overall, DOD contract obligations and payroll spending in the 50 states and the District of Columbia totaled $559 billion, which is 2.3% of the country's gross domestic product.
If the total spending were divided across every U.S. resident, according to the report, it would amount to $1,684 per U.S. citizen. Of those funds, $398.7 billion, or 71% was spent on products and services, while the remaining $160.3 billion, or 29%, paid the salaries of DOD personnel.
The top 10 states for defense spending are: Virginia, California, New York, Texas, Florida, Maryland, Massachusetts, Connecticut, Washington and Pennsylvania.
“Virginia, California, and Texas topped the list of recipients for overall defense spending,” DOD said. “However, Virginia, Hawaii and the District of Columbia ranked highest when considering defense spending impacts on their respective states GDP.”
The report shows defense spending fell in FY-21 as DOD contract obligations and payroll spending in the 50 states and the District of Columbia decreased by $34.9 billion, or 5.6%, over the previous year. The reduction is the product of 9.2% in DOD contract obligations, while personnel spending increased by 3.5%.
Pentagon acquisition chief Bill LaPlante said in a statement that the data is essential to understanding DOD’s industrial base and supply chains.
“The Department of Defense requires resilient, diverse and secure supply chains to limit vulnerabilities and ensure the development and sustainment of critical capabilities,” he said. “This report is a great tool our state and local partners should use to better understand and strengthen supply chains in their regions, which are essential to national security, economic security and our technological competitiveness and innovation.”