Air Force reverses A-76 decision, saves 700 jobs

The U.S. Air Force has reversed an A-76 job competition at a Texas Air Force base, saving the jobs of more than 700 Defense Department civilian employees and cancelling an outsourcing contract worth hundreds of million of dollars.

On Oct. 25, the Air Force sided with the employees at Lackland AFB, Texas, and reversed the base's decision to award a more than $300 million, five-year contract to Computer Sciences Corp.(CSC) of El Segundo, Calif. The contract would have covered most support work at the base.

CSC won the support contract in August following an A-76 competition. Federal rules, outlined in Office of Management and Budget Circular A-76, require a job competition between federal employees and a contractor before any jobs are privatized, with the work going to the lowest bidder.

The American Federation of Government Employees (AFGE) appealed that contract award to the Air Force Education and Training Command, claiming the costs for keeping the work in-house were inflated. The command sided with the workers.

"There were a whole bunch of costs identified [in the government bid} that should not have been there," said Ray Flores, a national vice president for AFGE workers at Lackland.

A CSC spokesman declined to comment on the Air Force's decision and would not say whether CSC would appeal the verdict. CSC can ask the U.S. Comptroller General to review the decision under federal procurement law.

Flores said the reversal should force lawmakers and Defense agencies to more closely scrutinize A-76 competitions.

Congress is already planning a sweeping review of A-76. The 2001 Defense authorization bill calls for the Comptroller General to appoint of team of labor, industry and government representatives to study A-76 and recommend changes.

Both labor and industry groups have criticized A-76 competitions as being unfair and biased toward the opponent.