http://www.mysanantonio.com/news/military/stories/MYSA062705.1A.contractors.fce1062.htmlAs the war rages in Iraq, the Pentagon increasingly has turned to private companies to do work once reserved for soldiers and pilots, producing a defense contracting boom locally to provide everything from oil and food to aircraft parts and weapons research.
That makes San Antonio the second-largest military contracting city in Texas behind Dallas-Fort Worth, which had $12.7 billion worth of military contracting work in 2003, according to the Department of Defense. Houston came in third with $2.06 billion
Overall, Texas received the second-most military contracts in the country, with $22.8 billion, behind California with $28.6 billion. By outsourcing work to contractors, the military saves money as it shifts the cost of worker benefits, training and retirement to private companies, said Pierre Chao, senior fellow specializing in the defense industry with the Center for Strategic and International Studies in Washington. With contractors, the military also can scale its work force up or down easier, he said.
"The sheer economic and financial reality around the personnel costs involved with the military tells you that this trend is not going to go away," Chao said.