Martin Marietta Corp.'s data systems division in Bethesda is developing a "paperless" administrative support system for Walter Reed Army Medical Center under a $3 million, five-year office automation contract.

"The long-term goal of the project is to have the various sets of users within the Walter Reed community using the same system," said Bob Penn, the project's program manager.

The new system, which will have a central computing facility and 400 workstations, will replace manual procedures and stand-alone systems. The medical center now has a mix of computers, Penn said.

When implemented, many of the medical center's day-to-day administrative and clerical functions will be automated. The new system will provide word processing, electronic mail, data-base management, report generation, graphics, spreadsheet calculations, calendar scheduling and project management.

In another development, Martin Marietta's board recently approved a 1988 capital spending budget of $371 million for its aerospace, information systems and material businesses.

Macro Systems Inc. of Silver Spring will run archives for military photographs through a $2.5 million contract with the Department of Defense.

Macro's staff will work at the Anacostia Naval Station and the Pentagon, where they will maintain vaults that contain photographs for members of all four branches of the armed forces.

The photo library fulfills Department of Defense requests for photos. Unclassified prints are available for purchase by the public, according to Al Irion of Macro.

Macro's staff will write captions for the photos from information provided by the photographer at the time of the shooting.

"Our writers have some knowledge of military personnel, insignia, weapons and equipment which allows them to put the information provided into narrative form," Irion said.

Electronic Data Systems Corp. of Bethesda has won exclusive rights under a five-year agreement to sell McGraw-Hill Inc.'s electronic news service to Washington area companies and the federal government.

The service provides news and information directly to personal computers from McGraw-Hill's information network, which includes Business Week, BYTE, Standard & Poor's and McGraw-Hill News.

Users of the service will be able to set up their computer systems to capture only the news that they want, a spokesman for Electronic Data Systems said. They also will have unlimited use of the system for a flat monthly rate, rather than being charged for each use.

A new College Park bank is expected to be in operation by early summer. Commerce Bank will serve the small- and medium-size businesses of Prince George's County, according to Joseph McDonough, who will be chairman the institution. "That's our market," McDonough said. "We don't expect to compete with the large banks."

According to a prospectus filed with the state banking commission, Commerce Bank expects to raise between $4.2 million and $7.4 million in a private stock offering to fund the venture. McDonough, 44, is former president of Jefferson Bank of Greenbelt. William E. Drescher, 39, has been named president of the new bank.

Announcements of news and developments affecting Washington area companies should be sent to Pamela Babcock, Researcher, Business News Department, The Washington Post, 1150 15th St. NW, Washington, D.C. 20071. Information must be received the Monday before publication to be considered for inclusion in Washington Business.