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Obama Administration Attempting to Reduce Consultancy Spending; Jeff Zients Comments

Jeff Zients

The Obama administration is scaling back federal consulting contracts ahead of schedule, reports Nick Taborek for the Washington Post.

Last year, the administration made it a goal to lessen consulting contracts by 15 percent, in comparison to Fiscal Year 2010 where $43 billion was spent on federal consulting.

Spending reduction for consulting contracts extends to 12 areas including acquisition planning, program management, and IT services.

Danny Werfel, OMB’s controller, issued a memo last November citing that consultation spending for the identified field had increased during the previous ten years.

Bloomberg also compiled relevant data stating that Lockheed Martin lost 25 percent of contracts for their consultation services just for the first half of Fiscal 2012. Deloitte also experienced a 24 percent decline in the same period.

Jeff Zients, then-deputy director of the Office of Management and Budget, explained that public funds are being wasted on consultations because the resulting reports only get stored on the shelf.

Current procurement data reveals that around $13.1 billion was spent on consulting and management support services in the first half of Fiscal Year 2012. This figure is 28 percent lower than the same period for Fiscal 2010.

Moira Mack, an OMB spokeswoman, wrote in an e-mailed statement that the administration is trying to identify areas where cost reduction can be imposed without impaling government operations.

Agencies have responded through setting up controls with consultancy services and abolishing repetitive contracts, she added.

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