Chunk of Stimulus Money Staying in D.C.

Christopher Weber

Correspondent

Posted:

12/3/09

A survey of recipients of the $787 billion economic stimulus package finds that a "sizable sum" has gone to government contractors in Washington, D.C, area, who helped kick-start the program.

The contractors were essentially paid stimulus money to help spend stimulus money, according to The Washington Post study published Thursday.

The Post breaks down some of the contracts, which have provided the Washington area nearly 10 times as much per capita as the national average:

The Energy Department is paying Technology & Management Services, a Gaithersburg firm, $6.9 million to review applications for renewable energy loan guarantees. The Department of Homeland Security awarded Deloitte Consulting's Arlington branch $8.6 million to provide "program management and support" for the stimulus plan's $1 billion airport security initiative, and gave McKing Consulting, a Fairfax firm, a $1.5 million contract to review applications for fire department construction funding.

Those contracts are a relatively small portion of the overall stimulus, but spending by the federal government in salaries and outsourcing may explain why the region is faring so well during the recession. The D.C. metro area's jobless rate is 6.2 percent, while the rates in comparable cities like Chicago and New York hover around 10 percent. Maryland's unemployment rate is 7.3 percent and Virginia's is 6.6 percent -- below the 10.2 percent national average.