OMB Reports Reduced Contract Spending in 2010

Photo: wikipedia

The Washington Post today reported government spending on contracts went down $15 billion between 2009 and 2010.

According to the White House, products and services contracts totaled $550 billion in 2009. In 2010, contracts totaled $535 billion.

The cuts are a result of the Obama administration’s pledge to reduce $40 million in contract spending over two years.

“We have reversed the trend of uncontrollable growth,” said Office of Management and Budget Deputy Director Jeffrey Zients. “We’re saving money and making sure every taxpayer dollar is being well-spent. We certainly have much work to do.”

Obama’s 2012 budget calls for a further 10 percent reduction in professional and technical service contracts with an emphasis on hiring small businesses for contract work.

Most of the cuts were due to canceled overdue IT contracts, and shared software licenses.

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