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


Policy Review/Development Services


Program Evaluation Services


Program Management/Support Services


Program Review/Development Services


Specifications Development Service


Management Services/Contract & Procurement Support


Intelligence Services


Engineering and Technical Services


Systems Engineering Services


Personal Services Contracts


Information Technology Support Services

ADP Systems Development Services


Automated Information Systems Services


ADP System Acquisition Support Services


ADP Backup and Security Services


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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