Defense Department contract spending fell sharply by 16% as a result of sequestration in 2013, according to an analysis by the Center for Strategic and International Studies obtained by Federal News Radio.  While sequestration reduced the DOD budget by $56 billion, or 8%, in the years 2012 and 2013, a larger share of the cuts affected contracting.

The study’s author said 53% of total DOD spending was on contracts in 2012, falling to 49% in 2013. Army contracting was down by 21%; Air Force, down 22%, and other DOD agencies, down 18%, but Navy contracting was down only 2%.  Contracts to small, medium and large vendors decreased by 19%, but the largest six vendors only experienced a 9% dip.

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