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Contractors Targeted in Pentagon Cuts

Gates aims to have procurement staff employed directly by Pentagon

By Rob Quinn, Newser Staff

Posted Apr 7, 2009 4:53 AM CDT

(Newser) – The Pentagon's new budget proposal cuts the role of private contractors by a third—back to pre-9/11 levels—the Washington Post reports. Defense Secretary Robert Gates plans to replace tens of thousands of contracted workers with people employed directly by the Pentagon, especially among the vast workforce tasked with buying weapons for the military.

The Obama administration wants "more of the skill in the government rather than contracting out," said one defense analyst, who predicted many businesses built around outsourcing would be ruined by the move. Experts said Gates' plan would likely help the Pentagon reduce its infamous cost overruns, although some cautioned that qualified staff may be hard to lure away from the private sector.

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US soldiers stand near an armored Humvee in Afghanistan. The Pentagon plans a major overhaul of its procurement system. (AP Photo/Rahmat Gul, file)

Defense Secretary Robert Gates announces new budget proposals at the Pentagon in Washington yesterday. (AP Photo/Gerald Herbert)

Defense Secretary Robert Gates said yesterday that the Pentagon will end the F-22 fighter jet and presidential helicopter programs. (AP Photo/US Air Force, Thomas Meneguin, file)

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We are right-sizing the defense acquisition workforce so we can improve our contract oversight and get a better deal for the taxpayers. - Shay Assad, the Pentagon's director of defense procurement and acquisition policy

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Contractors Targeted in Pentagon Cuts