Army Tries to Improve and Cut Back on Service Contracting

May 4, 2012

Army commanders across the globe will soon see guidance telling them to scale back their spending on service contracts, the Army's top procurement official said.

While local commands will have discretion as to what specific services to scale back on, the Army will tell its requirements community that they will have to identify how they will cut 5 percent of the dollars in their service contracting portfolios before their acquisition strategies can be approved, Kim Denver, the Army's deputy assistant secretary for procurement told Federal News Radio during an appearance on On DoD.

An Armywide strategy for reporting those savings will be finalized and issued to commanders in the third quarter of this year. The 5 percent cutback is part of the Army's plan to eliminate $4.3 billion in service contracting between 2012 and 2016 and improve its management and oversight of spending on services, Denver said. 

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