Reversing the costly upward spiral in contracting spending is an important accomplishment, as we collectively did in FY 2010, but there is more we can do to drive out inefficiency and waste. During the forum, we announced a goal to reduce contract spending on management support services by 15 percent by the end of FY 2012. For purposes of this initiative, management support services are those functions covered by the 15 product and service codes listed in the table below. Over the past decade, agency spending for these functions has quadrupled, and a review of historical buying trends indicate that agencies are twice as likely as for contracts overall to buy these services using high-risk pricing structures. These are also the functions that we asked agencies to begin evaluating for potential overreliance on contractors in connection with the development of agency service contract inventories. See OFPP’s November 5, 2010 guidance, available at: http://www.whitehouse.gov/sites/default/files/omb/procurement/memo/service-... .
