The Associated Press

LEXINGTON - Kentucky companies won $1.6 billion more in military contracts for the fiscal year ending Sept. 30, according to figures released by the Department of Defense.

The state ranked 14th in the United States with $3.9 billion worth of contracts. Comparable Ohio and Indiana figures were not immediately available.

The largest contract to a Kentucky firm went to Louisville-based Humana Inc., which received $2.36 billion to provide medical care to members of the military and their families in most of the eastern United States. That made the company the 11th-largest military contractor, the Defense Department said.

Experts say spending for other types of military services and war supplies also increased last year, creating jobs in Kentucky that won't go away when troops pull out of Iraq and Afghanistan. The same equipment is being bought by police and private firms to combat security threats.

"We don't see the threat to the domestic home front changing in the near future," said Sean Martin of Specialty Plastic Products, which owns Specialty Defense Systems in McKee. "Unfortunately, we don't see tensions easing any time soon."

His company won $20.4 million in contracts in 2003 for the backpacks, survival vests and other items it produces. Employment has been growing steadily and now tops 200, Martin said.

Corbin-based Southeastern Kentucky Rehabilitation Industries received almost $63 million in contracts in fiscal year 2003, and the nonprofit company expects to add 100 to 150 jobs, mostly at its Harlan plant, executive director Tom Fields said.

The new employees will produce polyester undershirts and insect netting under new defense contracts that are expected to run at least three years and probably longer, Fields said. The firm has grown to 750 employees from 100 eight years ago because of the more than 20 items it produces for the Defense Department.

Outdoor Venture Corp. in Stearns and its subcontractors have increased total employment to 350 from 100 to meet the demand for tents used by the military overseas and by disaster relief agencies, J.C. Egnew, the company's president, said.

"The demand is very strong," said Egnew, whose company received $28.4 million in contracts in 2003.

Besides Jefferson, counties with large contract totals included Boone, $57.7 million; Christian (home of Fort Campbell), $324.5 million; Fayette, $245 million; and Hardin (home of Fort Knox), $193.8 million.