Governor’s Grants Office Annual Report 2012

FEDERAL PROCUREMENT TO MARYLAND

This section is a brief compilation and analysis of Federal procurement in Maryland. The Maryland Governor’s Grants Office (GGO) is tasked with a variety of functions, including the measurement and evaluation of Federal funds flowing back to Maryland.

Procurement generally refers to goods and services purchased by the Federal government from individuals and businesses. Federal funds flow to states through five primary categories: retirement/disability (primarily Social Security), direct payments (primarily Medicare), procurement, salaries/wages, and grants. In Federal Fiscal Year (FFY) 2010, the single largest source of Federal funds returning to Maryland was Federal procurement, representing 27.5% of all Federal funds flowing to Maryland. The primary source of information on all federal funds, including federal procurement, still comes from the U.S. Bureau of the Census via its Consolidated Federal Funds Reports (CFFR). Information is compiled so it can be searched in a variety of ways but www.USASpending.gov has become the primary way of researching how federal procurement dollars are distributed and soon will be the only source as 2011 was the last year that Census produced the CFFR.

TOTAL FEDERAL FUNDS TO MARYLAND Federal Fiscal Year 2010 Category $ Amount % of Total Procurement 26.5 billion 27.5 Retirement/Disability 19.1 billion 19.9 Salaries/Wages 15.0 billion 15.6 Other Direct Payments 21.1 billion 21.9 Grants 14.4 billion 15.0 Total $ 96.2 billion 100%

Comparing the Maryland figures to the overall dollar amounts for the entire country (the chart below) provides a number of interesting observations.

TOTAL FEDERAL FUNDS TO ALL STATES/TERRITORIES Federal Fiscal Year 2010 Category $ Amount % of Total Procurement 516.7 billion 15.8 Retirement/Disability 914.8 billion 27.9 Salaries/Wages 342.9 billion 10.5 Other Direct Payments 818.6 billion 25.0 Grants 683.4 billion 20.9 Total $ 3,238.4 billion 100%

While Maryland has 1.9% of the nation’s population the state receives 2.9% of Federal funds. Within this larger amount, Maryland receives 5.1% of the nation’s federal procurement dollars, the area where it has the most disproportionate benefit. Not surprisingly, Maryland Governor’s Grants Office Annual Report 2012

also receives a disproportionate benefit on salaries and wages (4.4%) but even on grants, where the high average income for Maryland works against the state on some of the large formula grants, Maryland receives 2.1% of the grant totals, slightly above the average based on population.

Maryland is ranked #3 among the 50 states in per capita amount of federal government expenditure, due in large part to the state’s #2 ranking in procurement. Using Maryland's total population of 5,828,289 (as of January 17, 2012 estimate U.S. Census Bureau), and the hypothetical situation of these funds being evenly allocated to each resident of Maryland, the following chart shows per capita Federal funds coming back into Maryland.

PER CAPITA FEDERAL FUNDS TO MARYLAND Federal Fiscal Year 2010 Category $ Amount Rank Among the 50 States Procurement 4,593.79 2 Retirement/Disability 3,311.41 14 Salaries/Wages 2,605.24 4 Other Direct Payments 3,661.00 4 Grants 2,501.30 15 Total $ 16,677.74 3

As mentioned above, the federal website, www.USASpending.gov, allows for the tracking of data closer to real-time for both federal grants and federal contracts. While the above information, pulled from Census data, is only complete through FFY 2010, as of April 3, 2012, USASpending.gov has partial data for FFY 12. For the purpose of a couple summaries, we will use the final FFY 11 information below.

In FFY 11, the top five recipients of Federal contract dollars in Maryland are as follows:

1. Lockheed Martin Corporation $2,095,491,066 2. Johns Hopkins University $1,009,513,069 3. SAIC, Inc. $ 860,175,942 4. Textron, Inc. $ 698,124,749 5. IBM Corporation $ 660,051,052

Each of these summaries can be split into more specific information for each contractor and for each individual contract. As an example, the following chart lists the largest individual procurement awards in Maryland for FFY 11, thus some organizations are represented more than once in this list. Governor’s Grants Office Annual Report 2012

Maryland Top 20 Prime Awards in FY 2011

Total Recipient Awarding CFDA or Dollars Name(s) Agency Product/Service Sold Program Source LOCKHEED MARTIN 1905:COMBAT SHIPS AND $488.1M CORPORATION DOD LANDING VESSELS Shipbuilding and Conversion, Navy LOCKHEED MARTIN 1905:COMBAT SHIPS AND $376.6M CORPORATION DOD LANDING VESSELS Shipbuilding and Conversion, Navy M181:OPER OF GOVT R&D $228.9M SAIC, INC. HHS GOCO FACILITIES National Institutes of Health $126.6M TEXTRON INC. DOD 1550:DRONES Aircraft Procurement, Army HENSEL PHELPS AD61:CONSTRUCTION $125.9M CONSTRUCTION DOD (BASIC) Military Construction, Army $118.8M TEXTRON INC. DOD 1550:DRONES Aircraft Procurement, Army LOCKHEED MARTIN D302:ADP SYSTEMS $107.6M CORPORATION DOJ DEVELOPMENT SERVICES Salaries and Expenses AN13:BIOMEDICAL Public Health and Social Services $97.3M NOVAVAX, INC. HHS (ADVANCED) Emergency Fund JOHNS HOPKINS HEALTH SYS Q201:GENERAL HEALTH Department of Defense Medicare- $80.8M CORP DOD CARE SERVICES Eligible Retiree Health Care Fund LOCKHEED MARTIN 1440:LAUNCHERS, GUIDED $80.2M CORPORATION DOD MISSILE Shipbuilding and Conversion, Navy ASTRAZENECA 6505:DRUGS AND $71.4M PLC HHS BIOLOGICALS Grants to States for Medicaid CLARK ENTERPRISES, Y111:CONSTRUCTION OF $66.3M INC. GSA OFFICE BUILDINGS Federal Buildings Fund D399:OTHER ADP & TELECOMMUNICATIONS $65.4M SAIC, INC. DOD SVCS Defense Working Capital Fund, Army COMPUTER D399:OTHER ADP & SCIENCES TELECOMMUNICATIONS $62.8M CORPORATION HHS SVCS Program Management Y199:CONSTRUCT/MISC $62.2M DCK / TTEC DOD BLDGS Operation and Maintenance, Navy R799:OTHER PRUDENTIAL MANAGEMENT SUPPORT $61.0M FINANCIAL INC. DOJ SERVICES Salaries and Expenses GROUPE CGI 7010:ADPE SYSTEM $55.7M INC HHS CONFIGURATION Program Management M181:OPER OF GOVT R&D $54.7M SAIC, INC. HHS GOCO FACILITIES National Institutes of Health $54.5M TEXTRON INC. DOD 1550:DRONES Operation and Maintenance, Army M181:OPER OF GOVT R&D $51.6M SAIC, INC. HHS GOCO FACILITIES National Institutes of Health