The military is spending $200,000 to help Utah businesses win more government contracts.

Sen. Orrin Hatch, R-Utah, announced Thursday that the Defense Logistics Agency is giving that money to the Procurement Outreach Program in the Utah Department of Community and Economic Development.It operates an electronic mail system that transmits contract opportunities announced in the Commerce Business Daily to firms statewide, and uses the system to also promote Utah and persuade businesses to locate there.

Hatch said the Utah procurement office helped bring in $181 million for Utah companies in fiscal 1990 through 1,573 contract awards - all on a $150,000 grant.

The office has helped contracting increase steadily since it was created, from $7 million it helped bring to Utah in 1986 to $34 million in 1987, $44 million in 1988 and $116 million in 1989.

"Although most awards go to firms along the Wasatch Front, the procurement office has opened up opportunities to companies on a statewide basis," Hatch said. "In addition, the Utah procurement office should take credit for spending at Hill Air Force Base."