Expansion of Strategic Sourcing Worries Professional Services Contractors

January 31, 2013

Professional services contractors are worried that a new government purchasing strategy will emphasize low cost at the expense of quality.

The General Services Administration aims to conduct $9 billion worth of federal purchases this year using strategic sourcing contracts, in which multiple agencies use a single contract to buy products and services in order to obtain deeper bulk discounts.

Joseph Jordan, federal procurement policy administrator at the Office of Management and Budget, said at a Thursday event that he sees strategic sourcing eventually encompassing about $150 billion of the $513 billion the government spends on goods and services each year.

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