The Army has rejected a federal union's appeal to stop the service from contracting out its logistics operations without a public-private competition. Up to 500 employees at Army logistics software centers in Chambersburg, Pa., and St. Louis, Mo., will lose their jobs.
For the first time, the Army is taking advantage of a waiver process that allows agencies to avoid the lengthy public-private competitions under Office of Management and Budget Circular A-76 and directly contract out operations. After the Army waived the A-76 requirement-which allows public employees to defend their jobs-in July, National Federation of Federal Employees Local 1763 filed an appeal, requesting that software center workers be allowed to compete for the work.
On Sept. 30, Army Secretary Louis Caldera denied the appeal, clearing the way for the Army to contract out management of the processes and computer systems used to procure and manage stores of equipment, spare parts and supplies worldwide. A spokeswoman for the Army's Communications and Electronics Command, headquartered in Ft. Monmouth, N.J., referred inquiries about the decision to Army headquarters. A headquarters spokeswoman said Friday that no information about the decision was available.
The Army has pledged to provide a "soft landing" for employees, requiring potential contractors to offer jobs to workers whose positions will be cut. Later this month, contractors will be conducting a "Job Awareness Day" for employees explaining what opportunities would be available if they won the logistics modernization contract.
The contract is also facing scrutiny from the Small Business Administration, which contends that the request for proposals bundles too many requirements, making the program inaccessible to small businesses. In addition, employees at the St. Louis center have filed an age discrimination complaint against the effort to contract out their jobs.
NEXT STORY: People: At NIH, the doctor is out