OMB lists contract categories vulnerable to overspending

When the Office of Management and Budget on July 7 announced a new directive for agencies to cut spending on contract management services by 15 percent, officials mentioned 15 product service codes that were considered most at risk of overspending because they have a high proportion of time-and-materials contracts.

Since that briefing, OMB released a list of the codes, noting that they are the same as those that appeared last November in guidance on service inventories. The 15 codes affected by the management support services directive are:



Description of Function

Product & Service Code

Professional & Management Services

Cost Benefit Analyses

B505

Policy Review/Development Services

R406

Program Evaluation Services

R407

Program Management/Support Services

R408

Program Review/Development Services

R409

Specifications Development Service

R413

Management Services/Contract & Procurement Support

R707

Intelligence Services

R423

Engineering and Technical Services

R425

Systems Engineering Services

R414

Personal Services Contracts

R497

Information Technology Support Services

ADP Systems Development Services

D302

Automated Information Systems Services

D307

ADP System Acquisition Support Services

D314

ADP Backup and Security Services

D310



Focusing on these product codes, according to Stan Soloway, president and chief executive officer of the Professional Services Council, a contractor trade group, may have limited utility. Use of all but one or two already is going down, he said, "so why add this rule now?"

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