Contract Spending Shocker

I was just looking around to find the FY 2007 contract spending total.  To my surprise, I noticed that the 2007 data has been replaced by updated FY 2008 and 2009 totals.

This was shocking on two fronts.  First, the government is usually years behind in reporting contract spending dollars.  Heck, the most recent summary report is only FY 2006.

More shocking, however, is that the government spent over $510 billion on goods and services in FY 2008.  Yes, over 1/2 a trillion dollars!  And if history repeats, this total will increase by an additional $10-$20 billion as agencies (cough cough DOD) report additional information.  Just to put this number in perspective: the amount spent on U.S. contracting in FY 2008 would rank as the 25th largest GDP in the world, higher than that of 200 countries including South Africa, Egypt, and Sweden.

President-elect Obama has stated that he wants to “cut federal spending on contracts by at least 10 percent.”  I don't believe that setting a specific threshold is the way to tackle the dramatic increase in federal contract spending, but even if he is able to live up to that promise, taxpayers will still be on the hook for $450 billion in 2010.  Cuts or no cuts, we should be focusing on what we are buying and how we are buying it to ensure that money is being spent on needs and that it is not being wasted.

-- Scott Amey

Comments

[Scott Amey]

$529 BILLION as of 12/4/08:

http://www.fpdsng.com/downloads/agency_data_submit_list.htm

[Scott Amey]

$513 BILLION based on Nov. 26, 2008 data.

http://www.fpdsng.com/downloads/agency_data_submit_list.htm

[KSBR incredulous]

the 10 percent is not easily found going line by line. rather, go for the big things, like bad DoD systems, massive and systematic medicare fraud, most the Farm Bill entitlements.

but the government lacks the capacity and capability to do much of what contractors do. so the work won't come in house. rather, whole programs will, and should, disappear or be massively cut back.

and while we are at it, let's not ignore the large pools of government labor that is wasted or which amount to severe contract abuse. and lower the fat midlevel salaries. many do clerical work or just "go to meetings." we can do without a lot of that.

[Joe the Concerned Citizen]

10% might be achieved in a fair and sensible manner.

"Obama said his economic team will go through the federal budget, 'page by page, line by line,' and eliminate unnecessary programs and insist that those necessary operate in a 'sensible, cost-effective way.'"

http://www.fcw.com/online/news/154499-1.html