Contractors challenge outsourcing lists

Contractors challenge outsourcing lists

Contractors have begun challenging federal agencies' claims that many of their jobs that have been designated as commercial cannot be outsourced.

Under the 1998 Federal Activities Inventory Reform (FAIR) Act, agencies this fall are releasing lists of federal jobs that could be performed in the private sector. Contractors can submit appeals to agencies when they think jobs that could be outsourced are not included on the lists.

The Commerce Department, Environmental Protection Agency and General Services Administration reported Thursday at a House hearing that they had received appeals under the FAIR Act.

The American Consulting Engineers Council (ACEC) has submitted appeals to six agencies so far: the departments of Agriculture, Commerce, and Housing and Urban Development; NASA; the Environmental Protection Agency; and the General Services Administration. Those agencies listed a total of 2,494 engineers and architects on their FAIR Act lists, but employ a total of 23,000 engineers and architects, according to the council's review of Office of Personnel Management data.

In a letter to NASA, ACEC general counsel Jack Kalavritinos questioned the complete lack of engineers and architects on the agency's FAIR Act list.

"NASA has over 11,351 full-time civilian employees classified under OPM code 0800, Engineering and Architecture," Kalavritinos wrote. "According to [Office of Management and Budget] Circular A-76, these are all commercial activities, which many of our member firms provide for government and commercial clients. None of these activities have been included in the FAIR Act inventory."

A number of other contractor associations have filed challenges, including the U.S. Chamber of Commerce and the Management Association for Private Photogrammetric Surveyors.

The surveyors' association challenged 1,550 mapping and charting jobs, saying the jobs should have been designated as commercial in nature.

Contractors have also complained that agencies' FAIR Act lists are difficult to obtain or understand.

Andrew Fortin, manager of privatization policy at the U.S. Chamber of Commerce, said the FAIR Act process has left the chamber "disappointed, frustrated, yet optimistic."

"Disappointed because the inventories are nearly indecipherable and lack a common format," Fortin explained. "Optimistic because we are committed to making the FAIR Act a helpful tool in the never-ending process of reinventing government. This year is critical in making sure that we fight for something that we view as helpful not only to members of the chamber but also for better government in general."

Of the 440,000 jobs in the 93 agencies that have now released their lists, 35 percent have been categorized as commercial, rather than inherently governmental. Another 25 agencies will release FAIR Act inventories before the end of the year. The Defense Department's list is expected in December.

Under the FAIR Act, agencies have a month to respond to contractors' appeals, either rejecting the complaints or agreeing to make changes to their lists. If unsatisfied with the responses, contractors then have 10 days to re-appeal. The agency then has another 10 days to make a final decision.

GovExec.com's FAIR Act Report includes an updated database of agencies' job lists.