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Defense Department Contract Obligations and Payroll Spending Reach $609.2 Billion in Fiscal 2023
The Defense Department’s contract obligations, payroll spending, and grant awards reached a staggering $609.2 billion in fiscal 2023, equivalent to 2.2% of the United States GDP. This massive spending was distributed across the country, with approximately 59% going to ten states, including Texas, Virginia, California, Connecticut, and Florida. California, Maryland, and Michigan were the top three states by defense grant spending, while Texas, Virginia, and California were the top three states by defense contract spending.
In other news, the Transportation Security Administration (TSA) has announced a new rule that will allow federal agencies to accept mobile driver’s licenses when the REAL ID Act goes into effect next year. This rule will provide waivers for state-issued mobile driver’s licenses until standards for mobile IDs are established. This will ensure that mobile IDs can continue to be accepted at airport security checkpoints and for other official purposes.
President Joe Biden has directed defense and intelligence agencies to accelerate their adoption of artificial intelligence. In a new national security memorandum, Biden has called for a study of potential acquisition changes to speed up AI development and deployment. He also wants national security agencies to consider how nontraditional companies can participate more easily in government technology projects.
Additionally, the Merit Systems Protection Board (MSPB) is hiring a performance improvement officer to lead long-term workforce planning efforts. This position will focus on measuring progress in boosting workforce engagement and diversity at MSPB. The Small Business Administration is proposing a major change to how agencies buy from task order contracts, aiming to apply the rule of two for most multiple award task order contracts.
Overall, these developments in defense spending, technology adoption, workforce planning, and procurement regulations are shaping the future of government operations and national security. Stay tuned for more updates on these critical issues.
