“Agencies spent more on procurement in fiscal 2019 than in any of the previous 10 years.”
“And no surprise, agency pending on multiple award contracts for IT and services spiked last year.”
“Now that all of the 2019 numbers are final, the predictions of a banner year for contractors and agencies when it came to buying products and services came true.”
“The Government Accountability Office found agencies spent $584 billion on procurement last year, up $20 billion over 2018 and more than $120 billion since 2015.”
“Bloomberg Government reported that agencies spent $448 billion on procurement in 2014 and a six-year low of $442 billion in 2015.”
“The Defense Department accounted for $381 billion while civilian agencies spent $205 billion.”
“Of that, GAO said agencies procured 83.5% of all contracts competitively, up from 64.4% in 2015. DoD continues to struggle with competition as GAO found the Pentagon’s rate dropped to 53.8% in 2019 from 55.4% in 2015.”
“The majority of contracts continue to be fixed price, while cost reimbursement type contracts make up just under 32% of all deals.”
“Agencies continue to spend more on services than products across the government with the civilian side seeing almost an $8 billion year-over-year increase and DoD realizing an $11 billion year-over-year increase.”
“Given the increase in overall spending, it’s no surprise multiple award contracts saw their best years ever…” Read the full article here.
Source: Federal procurement spending up $120B since 2015 – By Jason Miller, June 2, 2020. Federal News Network.
