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Federal agency spending on contracts increased by nearly $80 billion in fiscal 2020 over the prior year to some $665 billion, GAO has said, with spending related to the pandemic accounting for $35 billion of the increase.
The agency’s annual compilation of contract spending shows that once again, DoD spent more than all other agencies combined on contracts, nearly $422 billion compared with some $243 billion. Of the others, HHS and VA—two departments with substantial duties related to the pandemic—replaced Energy as the top spender, with about $41 billion and $37 billion, respectively.
DoD spent some $15 billion more on goods—with the highest amounts for aircrafts, ships and missiles—than for services, while other agencies spent about three-fourths of their total on services, with professional services and operation of certain R&D facilities the highest.
Of the grand total, about $405 billion was competed and $260 billion non-competed; the competition rate at DoD was about 50 percent and almost 80 percent at other agencies.
The contracting totals exclude some $16.5 billion–$9 billion of that pandemic-related—in “other transaction agreements” which offer agencies a separate way to procure goods and services. That was 10 times the rate of spending through such agreements in 2016.
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