Federal contract spending remained flat in 2011

Government spending through contracts remained the same in fiscal 2011 as it was in fiscal 2010, the Office of Management and Budget reported Feb. 24.

Agencies collectively spend $535 billion in both 2011 and 2010, the first time 13 years that federal spending had either decreased or remained flat.

“There is good reason to be optimistic that this bending of the procurement spending curve that agencies worked so hard to achieve in fiscal 2010 and fiscal 2011 will continue for the foreseeable future,” Danny Werfel, controller of the Office of Federal Financial Management at OMB, wrote today in post on the OMBlog.

Agencies are using smart contracting strategies, such as strategic sourcing, while reducing spending on administrative activities, such travel, IT and printing, Werfel wrote.

Agencies will be well on their way to meeting the goal of a 15-percent reduction in spending on management support services, he wrote. Those types of services include IT systems development, program management and engineering services. Spending on those services quadrupled during the George W. Bush administration.

OMB wants the reduction by the end of fiscal 2012. To reach it, the government has to bring spending down by $6.7 billion governmentwide to $37.4 billion.

“With dedicated management attention, agencies already have reversed the costly growth in this area and have brought spending down by 7 percent, or $3 billion, in just the last fiscal year,” Werfel wrote.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Featured

  • Contracting
    8 prototypes of the border walls as tweeted by CBP San Diego

    DHS contractors face protests – on the streets

    Tech companies are facing protests internally from workers and externally from activists about doing for government amid controversial policies like "zero tolerance" for illegal immigration.

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    At OPM, Weichert pushes direct hire, pay agent changes

    Margaret Weichert, now acting director of the Office of Personnel Management, is clearing agencies to make direct hires in IT, cyber and other tech fields and is changing pay for specialized occupations.

  • Cloud
    Shutterstock ID ID: 222190471 By wk1003mike

    IBM protests JEDI cloud deal

    As the deadline to submit bids on the Pentagon's $10 billion, 10-year warfighter cloud deal draws near, IBM announced a legal protest.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.