Government on track to save $40 billion in contract costs

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The Obama administration says the federal government is on track to meet its goal of saving $40 billion a year in contract costs by fiscal year 2011.

The Office of Management and Budget says agencies already have identified more than $19 billion in savings for fiscal year 2010. Those savings come from terminating unnecessary contracts, ending an over-reliance on contractors and reducing the use of high-risk contracts.

The administration says federal spending on contracts has doubled since 2002, reaching $540 billion last year. Officials say there also has been an increase in contracts awarded without full and open competition.

-- Associated Press

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