1: Acquisition

Improving the Way the Government Buys

Other Information:

Today more than ever, the government must ensure that it spends money wisely and eliminates waste and abuse of taxpayer dollars. With more than one out of every six dollars of Federal government spending going to contractors, it is imperative that contract actions result in the best value for the taxpayer. In March 2009, the President directed agencies to save $40 billion annually by Fiscal Year (FY) 2011 and reduce use of high-risk contracts. The President's mandate has instilled a new sense of fiscal responsibility and accountability in agencies, and the results are clear. For the first time since 1997, overall contract spending declined. After over a decade of dramatic contract growth that saw annual procurement budgets increase at an average rate of 12 percent per year between FY 2000 and FY 2008, this Administration has turned the tide and reduced contract spending. Agencies spent nearly $80 billion less in FY 2010 than they would have spent had contract spending continued to grow at the same rate it had under the prior Administration. At that rate, contract spending would have reached a record $615 billion. Instead, FY 2010 contract spending was $535 billion versus $550 billion in the prior year. Agencies are ending ineffective contracts and contracts that support programs that are no longer needed. They are taking advantage of smarter buying practices to pool their buying power to negotiate better prices and deeper discounts for everyday needs. They are increasing competition and reducing the use of high risk contract practices that can lead to cost overruns. Once contracts are awarded, agencies are improving oversight, to ensure that the taxpayers get the price, schedule, and quality the contractor committed to deliver. These efforts will continue as agencies work to implement the Executive Order on Delivering an Efficient, Effective, and Accountable Government.

Objective(s):

1.1: Contracting

1.1.1: Acquisition Spending

1.1.2: Management Support Services

1.2: Contracting Risk

1.2.1: Competition

1.2.2: Fixed-Price Contracting

1.3: Acquisition Workforce

1.4: Strategic Sourcing

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