Military Procurement
I am performing an economic impact study of a military installation within a certain, county, region and state. Not sure how to analyze their procurement. For example, say their contracting office awards $200 million in military contract awards in 2014. Out of that $200 million, $60 million is awarded to companies operating within the state being studied. The spending is also not broken down into specific sectors.
How do I analyze the impact of that spending? Does the entire $200 million have an impact on my study area or just the $60 million? It seems that just because it was awarded here, shouldn't make much impact on the local economy... only the amount that is awarded within the state. Any advice would be greatly appreciated!
Jennifer
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Hello, The $60MM should be the starting point because that is the known dollars to be awarded to companies located in your study region. We have a link might help with [url=http://www.implan.com/index.php?option=com_content&view=article&id=392&Itemid=1797]Working with Military Bases[/url]. If the $60MM is truly contracts and not the base's operations, then you will need to determine what the industries are to impact appropriately. If you are using IMPLAN Pro, you could try determining these purchases to a NAICS [url=http://www.implan.com/index.php?option=com_content&view=article&id=464&Itemid=1797]sector aggregation[/url] to make it easier to choose Sectors. Please let us know if you have additional questions. IMPLAN Group Staff -
Regarding MRIO on this subject... My core study area is the county where the entity is located. My Region are the five surrounding counties, and then I have the rest of the state. Say, I know the institution awarded $30 million in tank repair contracts to companies within the state but don't know where but am pretty sure none were located in the core study area. Do you still input figures into the core study area model and run MRIO for the region and state? Or do I just run an impact model for that amount and Sector code for the state as a whole since I do not know exactly where in the state the money is being awarded. Rather new at IMPLAN so sorry if these questions seem crazy. Hopefully this makes sense. Thanks! -
Hi Jennifer, Don't worry about the questions, there are lots of nuances and caveats to the system and we are happy to help. If you don't know where in the state it occurs, then you are probably best to use the state total file, as it represents an average of all the related firms in the state that produce tanks and other similar commodities. If you are in a situation where your core Study Area is not where the production is taking place you have a couple of other options. Say you know that you have counties A, B and C. A = regions of base B= region where commodities for contract 1 are produced C= Region where commodities for contract 2 are produced You could set this up a couple of ways. You could create one Study Area that includes data for A, B and C, that way the region includes everyone. Or you could set up two sets or MRIO's. Contract 1 would have the impacts in region B1 and have regions A1 and C1 linked to it. Contract 2 would involve 3 completely new Models and the impact would occur in C2 with A2 and B2 Models linked to it. In both these cases you would see feed back effects to region A that could be summed to base operations and any contracts executed in the A region, but would be reflecting the production where it actually occurs. If you do have additional production in A that you want to link into MRIO analysis that would be a third set of Models. One other note that sometimes causes people issues, you don't want to link a regional Model to any geography that contains the base Model's geography so if A is a county in KS then you wouldn't link A to a KS state file. Hopefully this helps --Implan Support Staff
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