GAO

A Snapshot: Government-Wide Contracting
A 2018 update

Federal agency contracts for goods and services account for about 40% of
the government's discretionary spending. 
Read on for a snapshot of federal contracting in fiscal year 2018.


Which Agencies Were Responsible for the Most Contract Dollars?

Fiscal year 2018 Obligations: $554.1 dollars in billions
Civilian  federal  agencies: $195.8 
Department of Defense: $358.3

Navy, $107.9
Army, $91.5
Air Force, $71.3
Other Defense Agencies, $87.6

Department of Energy, $32.0
Department of Veterans Affairs, $27.0
Department of Health and Human Services, $24.6
Department of Homeland Security, $18.3
National Aeronautics and Space Administration, $18.0
General Services Administration, $14.0
Department of State, $9.9
Department of Justice, $7.8
Department of Transportation, $6.9
Department of Agriculture, $6.4
Other Federal Civilian Agencies $30.8

Source: Analysis of FY2018 FPDS-NG data.


What did they buy?

Total civilian agencies
Products: $157.7 dollars in billions
services: $38.1 dollars in billions

Top 5 Civilian Services and Products
Total obligations (in constant fiscal year 2018 dollars in billions)

Services:
$13.1	Operation of certain R&D facilities
$11.7	Professional: other
$ 9.1	Information technology and telecommunications
$ 8.7	Operation of miscellaneous buildings
$ 7.4 	buildingsProfessional engineering/technical

Products:
$11.2	Drugs and biologicals
$ 3.2	Information technology software
$ 3.1	Medical and surgical instruments, equipment, and supplies
$ 1.5	Passenger motor vehicles
$ 1.1	Meat, poultry, and fish

Total defense agencies
Products: $175.0 dollars in billions
services: $183.3 dollars in billions

Top 5 Defense Services and Products
Total obligations (in constant fiscal year 2018 dollars in billions)

Services:
$16.3	Professional engineering/technical
$12.0	General health care
$ 6.6	Professional: other
$ 6.4	Logistics support
$32.3	Maintenance, repair, rebuilding of equipment 

Products:
$32.3	Aircraft, fixed wing
$15.0	Combat ships and landing vessels 
$10.9	Guided missiles
$ 7.8	Liquid propellants and fuels
$ 7.0	Miscellaneous aircraft accessories 

Source: Analysis of FY2018 FPDS-NG data.

Management oversight is needed to ensure that contractors aren't
performing professional services considered "inherently governmental,"
such as setting policy or directing federal employees.


How did they buy it?

Contract type: 
Time and material and labor hour 4.6%
Cost Reimbursement 31%
Fixed-price 64.4%
While cost-reimbursement contracts are more risky for the government,
fixed-price incentive fee contracts also have a substantial risk of cost
growth.

Source: Analysis of FY2018 FPDS-NG data.


Who Got the Contracts?

Top 10 vendors, obligations:
Civil agencies: $33.8 dollars in billions
Defense agencies: $104.4 dollars in billions

Defense obligations: $358.2
Small business: $236.1
Not a small business: $72.2

civilian obligations: $195.8
Small business: $52.0
Not a small business: $143.8

Source: Analysis of FY2018 FPDS-NG data.

To promote small business participation in federal contracting, there is
a government-wide goal to award about a quarter of contract dollars to
small businesses.


What percent of contract dollars are awarded competitively? 

Competition rates	2014	2018
Civilian agencies	80%	80.9%
Government-wide		66.1%	63.4%
Defense agencies	58.2%	53.8%

Source: Analysis of FY2014-2018 FPDS-NG data.

Non-competitive contracts are risky because there's no direct market
comparison to help set the price.

Most defense non-competitive contracts are for large weapon systems like
airplanes and ships.


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