Army plans large reductions in service contract support

The Army is in the midst of a significant reduction in its spending for service contractors, including a $2 billion cut to logistics support contracts so far, a figure officials expect to double within the next two to three years.

Top Army officials told the Senate Appropriations Committee that the reductions are part of an Army-wide efficiency initiative that aims to ensure contract support is used only where appropriate. The cuts have either happened or are planned at the Army’s headquarters organizations, on its bases, and in deployed scenarios.

In particular, the Army wants to reverse a buildup of contracted logistics support that occurred during the Iraq and Afghanistan wars — a buildup made necessary by the large demand for uniformed soldiers on the front lines at the time, said Gen. Ray Odierno, the Army chief of staff.

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