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United States : CIVILIAN AGENCIES see increase in overall spending while DOD's spending declines
Publish Date : 28-Mar-2015
Although civilian agencies saw a rise in general spending, the Department of Defense (DoD)'s spending declined $23.7 billion, or around 8 %, in FY14. According to information received from the Federal Procurement Data System, federal governmentwide contract spending dropped $17 billion in FY14, The information shows general spending declined from $462 billion in FY13 to $445 billion in 2014. Contract spending has dropped the last many years — around 17% since FY11, down from a height of $539 billion. However, most civilian agencies bucked the trend, while general contract spending declined.
The Department of Homeland Security, Health and Human Services Department and NASA all raised spending in FY14. The Veterans Affairs Department and the Social Security Administration also saw a spending rise. Ex-administrator of the Office of Federal Procurement Policy and associate dean for government procurement law at George Washington University, Dan Gordon, said the decline in spending mirrors a similar drop in FY13, when most spending cuts came from DoD and not civilian agencies.
According to him, it could be due to the continuing drawdowns in Iraq and Afghanistan, as well as the ongoing impact of sequestration that are hitting DoD spending harder. He said : "It is extraordinary, and very surprising."
