Sunday, January 8, 2012
According to this report, federal procurement spending, that is, government payments to contractors for goods and services dropped in 2010 for the first time in 13 years. This is somewhat different than the data available at USASPENDING.GOV, which indicates contract spending has come down slightly since FY 2009.
The main story shown in the chart, however, is the enormous increase in contract spending during the Bush Administration, and the current reversal in trend.
The next question, then is how much will contract spending decline as the role of the US military winds down in Iraq and Afghanistan.