Agency spending on goods and services contracts fell by $20 billion during the past year, the Office of Management and Budget announced Thursday.
Office of Federal Procurement Policy Administrator Joe Jordan ascribed this “historic” savings level to “a concerted and collaborative effort by all federal agencies.”
The downward trend in contracting — a $35 billion drop-off or 16 percent decrease within three years — surpasses the goal President Obama set in 2009, Jordan told reporters in a conference call. Its decline represents a “dramatic reversal of the unsustainable 12 percent contract spending growth rate experienced from 2000 through 2008,” he said.
Jordan added contract spending on management support services, such as information technology systems development, was cut by $7 billion during the past two years by “buying smarter and buying less,” another administration goal.
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