Military base: Fayetteville wants more defense contracts.

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Last January, the Army asked for bids on five apparel contracts--cut-and-sew work worth $270 million--to fit soldiers with new combat uniforms. Although North Carolina has a long history in manufacturing textiles and apparel and a massive military presence, none of the contracts went to a Tar Heel company. That's just one example of the gap between the contracting requirements of the U.S. Department of Defense and the wherewithal of North Carolina companies to meet those demands.

The $2.2 billion awarded to civilian defense contractors in the state during the 2004 federal fiscal year accounted for less than 1% of the $230 billion nationwide the Pentagon spent on procurement. That put North Carolina 24th among the 50 states, even though it has the fourth-largest number of troops, behind California, Florida and Texas. The bottom line: Thus far, the state has done a poor job of leveraging its military presence for economic gain.

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But if leaders in Fayetteville and Cumberland County have their way, North Carolina soon will increase its share of defense-related jobs and spending. The area plays host to a huge military community as the home of Fort Bragg and Pope Air Force Base. Fort Bragg alone is one of the largest military complexes in the world, with more than 45,000 active-duty personnel. It's home of the XVIII Airborne Corps, the 82nd Airborne Division and the Army Special Operations Command. Fort Bragg's economic impact is $5.8 billion annually. Pope Air Force Base, home of the 43rd Airlift Wing, contributes $400 million a year more. Those numbers could change. Pope is scheduled to lose about 4,800 of its 6,400 troops under the Base Realignment and Closure plan being considered by the president and Congress. Fort Bragg would gain about 4,100 troops and 250 civilian workers. No action is scheduled until fall.

Cumberland County leaders have committed themselves to capitalizing on the economic opportunities posed by the large local military presence. "Fort Bragg and Pope Air Force Base are these giants sitting off in the northwest part of town," says Bill Martin, president of the Cumberland County Business Council, the economic-development arm of the city and county governments. "There really hasn't been that much of a connection until now. We want to be a better host community by providing a better quality of life for the base members and also taking advantage of the economic opportunities that exist from having them here."

The situation is similar to that in other communities where a single entity dominates the...