OMB reports reduced contract spending, releases memo

OMB memo creates Strategic Sourcing Leadership Council

For the third year in a row federal contract spending has declined, according to the Office of Management and Budget.

In fiscal 2012, federal contract spending was $513 billion, a 4.5 percent decrease from fiscal 2011’s $537 billion. Fiscal 2012’s federal contract spending was $35 billion less than in fiscal 2009, according to an article on

The decrease owes to both defense and civilian agencies. The Defense Department reduced its spending by 4 percent, from $374 billion in fiscal 2011 to $360.5 billion in fiscal 2012. Similarly, civilian agencies reduced spending by 7 percent, from $163 billion in 2011 to $152 billion in fiscal 2012. also reported on the memo that OMB released that requires agencies to designate an official in charge of strategic sourcing initiatives. The deadline to do this is Jan. 15.

The memo created the Interagency Strategic Sourcing Leadership Council. According to, the council’s first assignment is to recommend management strategies to the administration that will ensure the government gets the best possible offer for goods and services, including IT commodities. The council replaces the Chief Acquisition Officers Council’s Strategic Sourcing Working Group. also reported that industry feels that it is without a voice in the office’s memo, but the office claims to have regular interaction with industry in many different ways.

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