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University of Minnesota Extension

Economic contribution of federal, state and local government contracts leveraged in Minnesota with support from the Minnesota Procurement Technical Assistance Center of the Metropolitan Economic Development Association

Key findings

  • Between 2003 and 2015, government contracts won by businesses with the assistance of Minnesota with Procurement Technical Assistance Center (MN PTAC) generated an estimated $9.8 billion (in 2016 dollars) of economic activity in Minnesota.
    • This includes an estimated $3.5 billion (in 2016 dollars) in labor income.
  • The funding supported employment for an estimated 62,957 Minnesotans.
  • Between 2003 and 2015, the manufacturing industry received the largest portion of government contracts.
    • During this period, Minnesota manufacturing businesses received $2.8 billion of government contracts with assistance from MN PTAC.

About this study

In 1985, Congress authorized the Procurement Technical Assistance Center (PTAC) legislation. In 1991, the Minnesota PTAC (MN PTAC) began operation. MN PTAC provides tools necessary for Minnesota businesses to compete for federal, state, and local government contracting opportunities. MN PTAC is a service of the Metropolitan Economic Development Association.

The direct effect of government contracts leveraged in Minnesota with Procurement Technical Assistance Center (MN PTAC) assistance is equal to the value of government contracts received. Between 2003 and 2015, Minnesota businesses received $5.3 billion (in 2016 dollars) of government contracts through 6,297 awards.

Beyond understanding the total contribution of Minnesota government contracts secured with MN PTAC assistance, knowing which industries benefited the most from ripple effects can also be useful information. The highest ripple effects are in the health care and social assistance, retail trade, and professional services industries.

This is a conservative analysis, focused primarily on government contracts won by Minnesota companies that received support from MN PTAC. The economic activity spurred by the success of the businesses (for example, private investment or additional growth due to success) are not included in this analysis.

Keywords: Economic Impact Analysis

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Authors: Brigid Tuck, senior economic impact analyst, Extension; Gabriel Appiah, community economics intern, Extension

Reviewed in 2016

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