Federal Manager's Daily Report

The administration reduced contract spending by more than $20 billion in fiscal 2012, OMB has said. It said the decline continues a three-year downward trend, with fiscal 2012 contract expenditures $35 billion less than in 2009, reversing a 12 percent year-to-year average increase from 2000 – 2009.

For example, agencies spent $7 billion less on management support services over the past two years, including on IT development, program management and engineering, according to OMB.

It said agencies are also saving money in contracting by coordinating the government’s buying through strategic sourcing – a strategy increasingly being emphasized by both the White House as well as in legislation.

Strategic sourcing for items such as office supplies and domestic shipping services has saved nearly $200 million since fiscal 2010, while agency-level strategic sourcing of goods like IT and medical equipment have saved hundreds of millions more, according to OMB.