New OMB report hails competitive sourcing

Connect with state & local government leaders
 

Connecting state and local government leaders

The administration hopes the report will show lawmakers the benefits of A-76.

The Office of Management and Budget today issued a report aimed at quelling employee fears and proving that the administration's policy of competing federal positions that are considered commercial improves the way the federal government runs.

OMB reviewed 650 competitions either completed in 2003 or the early part of 2004 and found they reduced operating costs by more than $1 billion and increased efficiency roughly 15 percent.

'The agency data confirms what other studies of competitive sourcing have shown for years: competition delivers results for taxpayers, government service recipients and government employees,' said Clay Johnson, OMB's deputy director for management.

Johnson added that this new information makes a 'compelling case for the use of competitive sourcing as a standard management tool.'

The annual report is required by a provision in the 2004 Omnibus Appropriations Bill calling for agencies to submit a summary of how they are competing their eligible federal jobs with private-sector bidders under OMB Circular A-76.

The administration's competitive sourcing initiative, which is one of the five President's Management Agenda items, has continually come under fire from federal-employee unions and lawmakers because they believe the White House wants to send federal jobs to the private sector.

Last summer, lawmakers placed provisions in the Treasury, Transportation and General Government appropriations bill as well as the Defense and Interior departments' spending bills to curb or stop the initiative. Many of these provisions were removed in conference committee'mostly at the administration's behest.

The administration hopes the report will show lawmakers the benefits of A-76.

OMB found that taxpayers saved $12,000 annually in savings or cost avoidance per position studied.

In 2003, federal employees offered the best service 89 percent of the time, OMB found. Johnson said this underscores the high quality of their work and internal improvements that agencies are making.

OMB said agency success is tied to sound planning, especially with the human resources division to close competency gaps. OMB also found that grouping activities in ways that will generate private-sector interest is important.

OMB will put all this information into a new competitive-sourcing database, which will provide more complete information to Congress. Officials have not said when they will implement the database.

The database will be 'a mechanism for agencies to leverage their collective knowledge and experiences using competitive sourcing as a management strategy to improve the efficiency and effectiveness of the government's commercial operations,' Johnson said recently.

Reactions to the report were predictable.

The Contract Services Association of America trade group, in a statement attributed to its president Chris Jahn, said, 'This report proves what CSA has advocated all along. When the private sector competes, taxpayers win.'

The American Federation of Government Employees countered 'the Office of Management and Budget's latest attempt to sell its unpopular privatization initiative cannot withstand public scrutiny.'

In a statement, the union that represents 600,000 federal and D.C. government workers, continued, 'given its highly political approach to privatization, no savings estimates from OMB can be taken seriously without an independent third party review.'

(Posted 12:28 p.m. May 25 and updated 10:04 a.m. May 26)

NEXT STORY: DISA issues data services RFI

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.