OMB will push some agencies to surpass outsourcing targets

Some agencies should prepare to surpass a Bush administration target for opening more federal jobs to private sector competition, Office of Management and Budget Director Mitch Daniels said Tuesday. Speaking before an audience of contractors at a conference sponsored by the Contract Services Association, Daniels said OMB would push certain agencies to let the private sector compete in fiscal 2002 on more than 5 percent of all federal jobs considered commercial in nature. The 5 percent target is a baseline that some agencies should exceed, Daniels said. "We want a business plan for this where units with higher [outsourcing] potential are given higher targets," said Daniels. "Some agencies have a tremendously big upside for competition," he added, citing the Interior and Agriculture departments as examples. The Interior Department continues to perform routine maintenance and training activities that could be provided by the private sector, according to Daniels. "Interior has been described as the world's largest lawn care service," he said. Daniels mentioned routine maintenance, janitorial, and training services as examples of functions that could easily be performed by the private sector. OMB will also work to expand the pool of federal jobs that are eligible for competition by scrutinizing agency inventories of commercial jobs, Daniels said. Under the 1998 Federal Activities Inventory Reform (FAIR) Act, agencies must compile annual lists of jobs that could be performed by contractors. Daniels said the Justice and Interior departments and the Environmental Protection Agency had submitted incomplete FAIR Act lists in 2000. "Some of these lists need work," he said. "At the Environmental Protection Agency, [only] 4 percent of 18,000 jobs were on the [2000] list." Agencies submitted the first round of 2001 FAIR Act inventories to OMB last month. While OMB competitive sourcing targets apply only to work being performed by federal employees, Daniels said the Bush administration is open to allowing public employees to compete for work being performed by contractors. Agencies currently have the authority to let in-house workers participate in such competitions, he said. When asked if OMB would require agencies to conduct public-private competitions on work done by contractors, Daniels replied, "I haven't thought about that." Daniels also reiterated the Bush administration's opposition to union-backed legislation that would allow federal employees to compete for virtually all government contracts. "My nominee for the most poorly conceived bill of the year is something called the Truthfulness, Responsibility and Accountability in Contracting [TRAC] Act," he said. An official with the American Federation of Government Employees blasted Daniels' statement. "It's a sad commentary on the extent of contractor influence on OMB that the director would oppose legislation that would ensure better tracking of contractor costs and more public private competition, because both elements of the TRAC Act have the potential to save taxpayers large amounts of money," said John Threlkeld, a policy analyst with the union.
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

    Download
  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download
  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

    Download
  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.

    Download

When you download a report, your information may be shared with the underwriters of that document.