Federal agencies have identified $19 billion in contracting savings in 2010, and they're on pace to meet President Barack Obama's goal of saving $40 billion annually by fiscal 2011, according to a new report from the Office of Management and Budget.

Obama's order, issued in a March memo, would reduce contract spending by 7 percent in fiscal 2011. Agencies were asked to review their contracting procedures, and to create pilot programs to identify potential over-reliance on contractors. Agencies are also working to reduce high-risk contracts — those awarded without competition, or on a cost reimbursement basis — by 10 percent. High-risk contracts have grown by 129 percent over the last six years, from $82 billion to $188 billion.

"No business, large or small, could survive the kind of waste and mismanagement the federal government has experienced. It's illogical. It's unacceptable," said Jeffrey Zients, the federal chief performance officer, in a conference call Monday with reporters.

OMB hasn't released a detailed list of the projected 2010 savings. But Zients cited a few examples:

• The Homeland Security Department created standard requirements for desktop computer software, allowing it to purchase in bulk and save $87.5 million over the next six years.

• The Energy Department's National Nuclear Security Administration launched an auction tool — a "reverse eBay," Zients called it — that allows contractors to bid for work. NNSA said the tool has reduced costs by an average of 18 percent per contract.

Several agencies have also moved to reduce their high-risk contracting. The IRS, for example, will save $6 million by converting a cost-reimbursement information technology contract to a fixed-price contract.

Agencies are also now required to submit contractor performance reviews to a federal database, which agencies can use to review a contractor's past performance before awarding new work.

"We're putting a spotlight on how well contractors perform. … It's a break from the past," Zients said. "It should lower the chances that the government does business with underperforming contractors."

OMB plans to launch an online dashboard early next year to monitor agency progress on procurement reforms.