DEFENSE CUTS

Defense cuts to hit contractors hard

20 percent to be cut expected over next five years

Contractors are going to feel the bulk of the pain of the cuts that Defense Secretary Chuck Hagel announced this week, FedBiz reported.

The cuts are meant to reduce management headquarters budgets by 20 percent over the next five years. Hagel was quoted by FedBiz as saying that most of these cuts will be achieved through contractor reductions.

No specific amount has been named, but the reductions are expected to save at least $1 billion over the next five years, with roughly proportional cuts each year. These cuts are not tied to sequestration, FedBiz reported.

About the Author

Mark Hoover is a senior staff writer with Washington Technology. You can contact him at mhoover@washingtontechnology.com, or connect with him on Twitter at @mhooverWT.

Reader Comments

Fri, Dec 6, 2013 Hope Change Washington, DC

Glad this whole "hope and change" thing is working out for us down in the beltway.

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