Competitive Sourcing1

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                                                                    Competitive Sourcing1

       Timing Is Everything—GAO’s Jurisdiction over Agency Tender Official’s Protest Applies Only If Competitio
				
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Description: OMB's Latest A-76 Report In May 2007, the OMB released its annual report on the federal government's competitive sourcing efforts during fiscal year (FY) 2006.22 In this report, the OMB tracked competitive sourcing data pursuant to the President's Management Agenda.23 The OMB reported that in FY 2006, federal agencies conducted 183 competitions involving 6,678 employees resulting in over $1.3 billion dollars in expected net savings over the next five to ten years.24 In contrast, in FY 2005, the total number of competitions was nearly identical (181), however, the total number of affected employees was higher (9,979) and the expected net savings was higher ($3 billion dollars).25 In its FY 2006 report, the OMB identified some competitive sourcing trends.26 In FY 2006, federal agencies determined that performance of commercial activities by in-house personnel was more cost-effective than private sector performance for 87% of the FTE employees competed.27 The average number of FTE employees per standard competition28 was 72%, while the average number of FTE employees per streamlined competition was eighteen.29 The OMB states that from FY 2004 to FY 2006, 85% of the FTE employees involved in competitions fell into one of six categories: (1) maintenance and property management; (2) information technology; (3) logistics; (4) human resources, personnel management and education; (5) administrative support; and (6) finance and accounting.30 The average length of standard competitions was thirteen months while the average length of streamlined competitions was three months.31 Similar to FY 2005,32 in FY 2006, the clear majority of the competitions were streamlined.33 Regarding the level of participation by the private sector, the OMB reported that agencies received at least two private sector offers in the majority of standard competitions conducted.34 For example, agencies received two or more private sector offers in 53% of the standard competitions conducted in FY 2006.35
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