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Army projects contract spending will fall 25 percent in 2014

Apr. 10, 2014 - 03:45AM   |  
By ANDY MEDICI   |   Comments
Harry Hallock wants Army contractors to understand that 'tough times' are forcing spending cuts.
Harry Hallock wants Army contractors to understand that 'tough times' are forcing spending cuts. (Army)
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The Army expects its total contract spending to fall $22 billion — about 25 percent — in fiscal 2014, according to a top procurement official.

Harry Hallock, the deputy assistant secretary for procurement at the Army, said the service is projecting its spending on contracts will drop from $87.3 billion in fiscal 2013 to $65 billion in 2014 as it continues to wrestle with congressional budget cuts.

The Army’s spending on contracts will probably remain low through fiscal 2019 before spending begins to increase again, Hallock said at the Coalition for Government Procurement 2014 Spring Training Conference in Falls Church, Va., April 10.

“Times are tough, they are not going to get easier any time soon,” Hallock said.

Army contract spending has fallen for the last few years, dropping from $126 billion in 2011 to $108.5 billion in 2012.

Hallock said while Army spending drops the number of contract actions will fall more slowly since the service still needs to buy goods and services — but in smaller quantities.

“Sharpen your pencil and your skills and I still think you can do great business with the Army,” he said.


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