Agency managers mostly pleased with job competitions, survey finds

Employees and contractors both think the competitions are stacked against their side, though.

Federal managers who oversee job competitions between federal employees and private contractors are largely satisfied with their competitive sourcing achievements, according to a survey by a group that represents contractors.

Contractors and federal employees generally have been critical of the current guidelines for job competitions, with both groups saying the rules are biased against them. The report, produced by the Professional Services Council and consulting firm Grant Thornton, noted a rift between the federal managers interviewed and PSC members, who generally believed "that the process is deeply flawed and in need of a major overhaul."

But managers said they don't need or want any major rule changes. "There have been a lot of policy changes. [Managers] felt they needed time to acclimate and adapt," said Stan Soloway, president of PSC.

Soloway said the number of private contractors bidding in federal job competitions has been rapidly falling, which he interprets as evidence that competitions unfairly favor federal employees.

Federal labor unions say it's the companies who have the advantage. "The new A-76 rules were changed in tilt of the contractors. There's never going to be a level playing field," said Frank Carelli, director of government employees for the International Association of Machinists and Aerospace Workers, a member of the AFL-CIO.

In February, the Government Accountability Office released a report urging the Office of Management and Budget to provide clearer guidelines regarding which positions should be classified as "inherently governmental," meaning they could not be outsourced to the private sector.

The PSC survey, which was based on interviews with 36 procurement executives, marks a shift from the survey's results in 2002, when PSC found executives struggling to understand policy changes and language. Now, they understand the policy, but are struggling with its implementation. Executives pointed to concerns about possible ethics violations and the politicization of the job competition process.

There is still no data on whether or not recent changes to competitive sourcing guidelines in OMB's revised Circular A-76, such as requiring agencies to consider quality in addition to cost when choosing the winning bid, is having an impact on agency performance, said Diane Shute, partner at Grant Thornton.

"A-76 is a management tool that can potentially help you reach [your] goals… You can link it to helping the organization achieve its mission," she said. By selecting bidders based on performance, for example, agencies can perform its services, whether that includes issuing payments or achieving customer satisfaction, more quickly, she explained.