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DoD Service Contract Spending Cuts Won’t Lead to Across-the-board Pay Freezes

Photo: Defense.gov

Defense authorizations approved by the Senate Armed Services Committee last week would impose a spending freeze for the department’s service contracts, amounting to a total of $1.1 billion in cuts. But Government Executive reports it might not translate across-the-board hiring or pay freezes.

Instead, different programs will feel different impacts, Gov Exec reports, citing industry experts.

“It’s really more appropriate to look at what missions need to be accomplished and how best to execute those missions,” said Alan Chvotkin, general counsel at industry group, the Professional Services Council. “There may be opportunities to reduce spending on current work with the current federal workforce and contractor workforce to achieve savings.”

In some instances, DoD may issue fewer contracts or contractors may have to downsize their staffs, he added.

The Senate panel voted the cuts through last week as part of the 2012 Defense Authorization Act. The committee said the spending freeze would be “comparable” to the current freeze on the federal civilian workforce.

Meanwhile, FedSources Senior Vice President and Chief Knowledge Officer Ray Bjorklund said, “In the near term, it’s probably not going to have a terribly deleterious effect.” But it could contribute to further spending freezes in the future, he suggested.

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