Contractors Face $36 Billion Drop in Federal
New 2011 Federal Budget Analysis Report by FedSources Reveals a Nearly 5% Drop in Contract
Dollars; Points to Biggest Cuts and New Growth Areas
May 12, 2010 10:47 AM Eastern Daylight Time
MCLEAN, Va.--(EON: Enhanced Online News)--FedSources, a Washington Management Group company and
the recognized leader in government market intelligence, today released a new report that analyzes the proposed
2011 Federal Budget and highlights contractor-addressable spending – money available to pay government
contractors for new and existing work.
According to the “Federal Budget Analysis – 2011” report, the GFY2011 budget shows a nearly five percent
decrease in contract spending, or a total of $36 billion. “There is a substantial drop in addressable spending here,”
said Ray Bjorklund, Senior VP and Chief Knowledge Officer at FedSources, and author of the report.
“There are significant cuts in professional services and real property,” Bjorklund said. “This means there will be far
more aggressive competition for far fewer dollars.”
According to the report, the overall message from the 2011 budget is that things are changing – particularly in
contract services. The budget proposes $36 billion in cuts affecting contractors, with about 100 individual programs
cut or consolidated and scores of programs reduced in scope.
The report goes on to say that while the biggest cuts in contract spending in the GFY2011 budget were in
professional services and real property, the most significant increase in contractor-addressable spending is in blue
collar operations and maintenance.
To access the complete FedSources report at no cost, click here.
To find out how to become a FedSources client, call 703-610-8700 or visit www.fedsources.com and visit the
“Free Trial Offer”.
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