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Search Tags: service contracting
Federal spending on services contracts continued a slow downturn last year, according to a new analysis from the Center for Strategic and International Studies. Contract spending on services fell 7 percent -- from $332 billion to $308 billion — between 2011 and 2012. And the downward trend is likely to continue, given budget constraints that are likely to intensify in the coming years, according to David Berteau, senior vice president at the Center for Strategic and International Studies.
The Defense Department is examining all of its contracts as part of the reductions necessary under automatic budget cuts. Reductions to contractors, not civilians, will make up "the majority" of the cost savings.
A group of 26 Democratic senators wrote last week to Defense Secretary Leon Panetta urging the Pentagon to lift an "arbitrary" cap on DoD's civilian workforce, saying contractors hadn't been similarly affected by budget constraints. But the Professional Services Council, an industry group which represents many defense contractors, rebuts the charge that contractors haven't also felt the effects of the current fiscal climate.
In 2008, Congress mandated the Pentagon to keep an inventory of service contracts and review it annually to make sure government work wasn't being improperly outsourced. But the Government Accountability Office, in a recent report, found a lack of guidance from the top has led to challenges in implementing that requirement.
As part of the annual Defense authorization bill, House lawmakers will take up a provision designed to let federal employees gain experience and share expertise while working temporarily in other agencies.
The Army will soon issue guidance to all of its commands telling them to cut the dollars they spend on service contracts, the service's top contracting official tells Federal News Radio.
The administrator of the Office of Federal Procurement Policy will join the George Washington University Law School as an associate dean. Gordon spent two years at OFPP working on a variety of issues from improving the workforce to reducing the use of high risk contracts to advocating for more collaboration between industry and government.
Little-noticed order makes hiring incumbent workers mandatory
Faced with increasingly tighter federal budgets, agency leaders are getting tougher on contract spending. The Office of Management and Budget announced in March that spending on federal contracting had actually declined for the first time in more than a decade. Also, earlier this month, OMB directed agencies to cut spending on service contracts by 15 percent.
The Professional Services Council details likes and dislikes of procurement language in the 2012 DoD Authorization bill.