Obama sees $40 billion savings in spending reforms

U.S. President Barack Obama signs three bills into law on the Resolute Desk inside the Oval Office at the White House November 27, 2013 in Washington, DC, USA. Obama signed S. 252, the Prematurity Research Expansion and Education for Mothers who deliver Infants Early Reauthorization Act or the PREEMIE Reauthorization Act; H.R. 1848, the Small Airplane Revitalization Act of 2013; and H.R. 3204, the Drug Quality and Security Act . Photo by Chip Somodevilla/Pool/ABACAPRESS.COM (Newscom TagID: abausaphotostwo018546.jpg) [Photo via Newscom]

President Barack Obama on Wednesday will order a crackdown on waste and cost overruns in U.S. government procurement that he estimates will save up to $40 billion a year, an administration official said.

Elected on campaign promises of sweeping change and greater accountability in Washington, Obama, who took office on January 20, will sign a presidential memorandum seeking to “reform our broken system of government contracting,” the official said.

The president will unveil his plan at a White House ceremony at 10:00 a.m. EST, nine days after holding a “fiscal responsibility” summit where he pledged to make curbing procurement excesses, especially in defense spending, one of his top priorities.