Union Presses for Cuts to Contract Spending

February 11, 2013

Federal agencies could find 70 percent to 90 percent of the $85 billion in sequestration budget cuts by scaling back spending on services contracts, according to a new report commissioned by the American Federation of Government Employees.

AFGE, one of the leading federal employee unions, has denounced the White House for targeting federal employees in its sequestration guidance — by urging agencies to considering hiring freezes and furloughs, for example — while not ordering similar cuts to government contracts.

Charles Tiefer, a government contracts law professor at the University of Baltimore law school and a former commissioner on the Commission on Wartime Contracting in Iraq and Afghanistan, said in a report released Monday that agencies have several options for cutting contract spending that do not necessarily require breaching contracts or incurring penalties.

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