OMB lists contract categories vulnerable to overspending
Industry group official says use of many of the risky codes already is on the decline.
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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