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Government agencies could spend as much as $173 billion through multiple-award contracts by the end of this fiscal year, and that may only be a preview of what’s to come.

  • Paul Murphy, senior data analyst at Bloomberg Government, said an unusual finding from recent analysis was that as multiple-award contract spending has been increasing, the number of recipients has been decreasing, which reflects a broader move towards consolidating contracts in the federal government.
  • Other factors include withdrawal of military forces from the Middle East, mergers and acquisitions and complexity of work expected from contractors in the face of cyber and national security threats, said Murphy.
  • The Defense Department’s fiscal 2020 spending on multiple-award contracts is a good example of the government’s increased emphasis on category management, said Murphy.
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