From the July 17, 2002 FEDweek Issue

CONTRACTING-OUT GOALS DRAW ATTENTION

During voting on its version of the fiscal 2003 Treasury-Postal appropriations bill, the main spending bill covering federal employee programs in general, the Senate subcommittee adopted language to ban the use of numeric goals for privatizing federal jobs and instead allow agencies to contract out as much—or as little—as they wish. The action, if ultimately approved, could block the White House’s initiative to have at least 15 percent of commercial-type federal jobs considered for possible conversion to contract by the end of fiscal 2003. Federal employee groups have argued that the goal is arbitrary and could compel agencies into making hasty, ill-considered decisions to contract out jobs; the administration says it is using the goal to compel agencies to find ways to be more efficient regardless of whether the work is privatized or remains in-house. During voting on its version, however, the counterpart House committee rejected a similar attempt to stop the initiative and opposition from the administration to the Senate language is expected.