The Obama administration pared $15 billion in spending on outside contractors last year, the first such reduction since 1997. Office of Management and Budget Deputy Director Jeffrey Zients (pictured)
said the cut puts the administration on track to meet a two-year goal of cutting $40 billion on contract spending, The Washington Posted report
Spending on government contracts in fiscal year 2010 was at $535 billion down from $550 the year before. “We have reversed the trend of uncontrollable growth," the Post quoted Zients as saying. "We're saving money and making sure every taxpayer dollar is being well-spent. We certainly have much work to do."
The administration achieved the reductions by canceling technology related contracts and pooling the purchase of software. Administration contracting official Dan Gordon said that when “agencies across the government are buying the very same software, but doing it through a series of individual contracts, we're not getting the benefit of being the world's largest customer," the Post said.
In the fiscal 2012 budget, the administration will seek a 10 percent reduction in professional and technical service contracts, a move that could lead to private sector job losses, the Post said.
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