NEW APPROACH TO CONTRACTING-OUT PROPOSED

A commission examining the government’s process of considering federal jobs for private sector performance has issued a divided final report, with the majority of members supporting giving the work to the side that provides the "best value," not necessarily the lowest bid, as is done today. The panel on an eight to four vote recommended replacing the current reliance on the cost review process under Office of Management and Budget Circular A-76 with an integrated approach that also takes into account factors that typically apply under general federal acquisition rules, such as technical expertise, innovativeness and past performance. Both the public sector and private sector sides would have the same rights, including the right to protest, and the same responsibilities, including accountability for performance, it said. The report said that OMB could carry out most of the needed changes administratively but noted that legislation would be needed to make such changes at the Defense Department. Cost-comparison studies already under way should be finished under the current rules, it said.

UNIONS OPPOSE IDEA

Of the four panel members dissenting from the idea, two were the heads of federal unions—Bobby Harnage of the American Federation of Government Employees and Colleen Kelley of the National Treasury Employees Union. Kelley said the panel majority’s approach "would allow contractors essentially to write gold-plated government work requirements and then reward the contractors with lucrative contracts for services the government does not need." Said Harnage: "The panel’s recommendation to replace A-76 with an entirely untested and subjective approach, and to do so immediately and without a trial period, is irresponsible." Members of the panel majority included Bush administration officials, representatives of the contracting industry and David Walker, head of the General Accounting Office, who chaired the panel during its year-long work.