July 11 OMB review of agencies' FAIR Act lists

OMB COMPETITIVE SOURCING PROGRAM: ANALYSIS of YEAR 2000 FAIR ACT SUBMISSIONS AND OPPORTUNITIES FOR COMPETITION Prepared for the July 11, 2001 Meeting of the President's Management Council The Federal Activities Inventory Reform (FAIR) Act of 1998 requires departments and agencies to prepare detailed inventories of all in-house commercial activities performed by Federal employees. The inventories allow each agency to determine which activities can be opened to a public-private competition. These public-private competitions are governed by OMB Circular A-76. The Circular establishes Federal policy for the performance of recurring commercial activities. It provides guidance and procedures for determining whether these activities should be provided though contract with commercial sources, by in-house resources (using Government facilities and personnel) or through interservice support agreements with other Federal agencies. Review of the 2000 FAIR Act inventories identified 850,000 civilian Full-Time Equivalents (FTE) performing commercial work. This figure represents 53% of the government's civilian workforce. The President has committed to incrementally opening one-half of these 850,000 FTEs, or 425,000 of the FTE identified on the 2000 FAIR Act inventories, to public-private competition or direct conversion to private sector performance over time. To implement the President's commitment, OMB established a "Competitive Sourcing Initiative." On March 9, 2001, the Deputy Director of OMB issued performance measures for FY 2002 which require agencies to complete public-private competitions or direct conversions (as permitted under OMB Circular A-76) on not less than 5% of the 850,000 FTE listed on the FAIR Act inventory as performing commercial work. The 5% goal for FY 2002 will require public-private competitions or direct conversions of approximately 42,500 of the 850,000 FTE listed on the FAIR Act inventory. For FY 2003, agencies will be required to complete public-private competitions, direct conversions (as permitted under OMB Circular A-76), or privatization (which will be considered on a case-by-case basis) on not less than 10% of the 850,000 FTE listed FAIR Act inventory as performing commercial work. No goals have been established beyond FY 2003. Attached is a brief analysis of the 2000 FAIR Act inventories. The attachment identifies: (a) the number of FTEs designated as commercial in the 2000 inventories; (b) activities where potential underutilized opportunities for public-private competition exist; and (c) the status of agency submissions of their 2001 FAIR Act inventory. I. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 421 of 2,200 total FTE (19%) The USAID OIG listed 52 FTE as commercial. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Administrative Support Services. It appears that a significant portion of the remaining 80 percent of the USAID FTE collects, reviews, and arrays data for internal and public review or otherwise makes recommendations on the basis of that data. As a general matter, these functions are commercial support activities and should be considered for inclusion on the inventory. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 38,521 of 98,155 total FTE (39%) 1999 inventory: 48,000 of 88,888 total FTE (54%) The USDA OIG listed 344 FTE as performing commercial functions out of 753 total FTE (46%). II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Testing and Inspection. The Agricultural Marketing Service considers 75 percent of its workforce commercial. However, AMS is not considering outsourcing several of its commercial activities. For example, AMS coded all of its testing and inspection (Function Code A500) as "Reason Code A, " meaning, AMS is not currently considering competition for that work. Food Inspection. The Food Safety and Inspection Service included only 796 of 9,914 total FTE as commercial (8%). The percentage of commercial activities performed by inspectors can likely be increased. FNS has listed 33 percent of its FTE as commercial in nature. No mission work is included, which suggests that FNS has 1,200 inherently governmental program decision makers. III. Status of 2001 FAIR Act Inventory Submission to OMB Not Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 6,749 of 27,122 total FTE (25%) The OIG designated 12 of its 161 FTE as commercial (7.5%). II. Activities with Potentially Underutilized Opportunities for Public-Private Competition NTIS is 100 percent commercial. It was once considered for privatization and operates on a reimbursable basis. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 259,628 of 452,807 total civilian FTE (57%) The OIG designated 652 of its 2,212 FTE as commercial (54%). All of the activities were coded Reason Code "B," which indicates that the work is competitive in nature. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Installation Services Other Non-Manufacturing Operations Real Property Management, Operations and Maintenance Intermediate, direct or General Repair Work Education and Training Note: Taken together these functions constitute 80 percent of the existing DOD FAIR Act inventory of commercial functions. III. Status of 2001 FAIR Act Inventory Submission to OMB Received (Office of Inspector General only) 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 866 of 4,749 total FTE (18%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Administrative support services Grants management III. Status of 2001 FAIR Act Inventory Submission to OMB Not Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 8,878 of 15,700 total FTE (56%) 1999 inventory: 11,800 of 15,000 total FTE (79%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition As a general matter, the Department might be able to increase opportunities for public-private competitions by aggregating FTEs into multi-functional or multi-skilled competitions, rather than by small groups by location and function. It is recommended that special attention be given to the Labs and other reimbursable activities. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 615 of 17,571 total FTE (3.5%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Grants Management Administrative Support Services III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 4,162 of 4,896 total FTE (85%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition As a general matter, the Agency might be able to increase opportunities for public-private competitions by aggregating FTEs into multi-functional or multi-skilled competitions, rather than by small groups by location and function. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 7,338 of 14,123 total FTE (52%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition GSA is largely engaged in reimbursable, commercial support work. Reimbursable activities are generally considered commercial. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 32,027 of 57,722 total FTE (55%) Additional information on 2000 inventory: · NIH designated 2,518 of 15,963 FTE as commercial (16%) · CDC designated 5,781 of its 7,810 FTEs as commercial (74%) · HCFA designated 3,537 of an estimated total 4,445 FTE as commercial (80%) · FDA designated 3,171.5 of an estimated total 8,909 FTE as commercial (36%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Recurring analytic support activities Research, development, testing, and evaluation activities Administrative and technical support activities III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 5,808 of its total FTE as commercial (63%) The OIG designated 404 of its 289 FTE as inherently governmental and 289 FTE as commercial. However, OIG only considered 62 of these commercial FTE for possible outsourcing. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Client services Systems design Maintenance Administrative support services Community planning and development could combine grants monitoring and evaluation with applications support and program evaluations staffs on a local, regional, or national level for cost comparison. III. Status of 2001 FAIR Act Inventory Submission to OMB Received (Office of Inspector General only) 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 20,071 of 68,094 total FTE (29%) The OIG designated 210 of its 251 FTE as commercial (84%). II. Activities with Potentially Underutilized Opportunities for Public-Private Competition As a general matter, the Department might be able to increase opportunities for public-private competitions by aggregating FTEs into multi-functional or multi-skilled competitions, rather than by small groups by location and function. By aggregating Interior's inventory by location and by function, there are significant opportunities for possible competition and outsourcing and to generate significant savings for redirection within the agency or to meet emerging new/expanded requirements. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 1,264 of 129,504 total FTE (less than 1%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Recurring Training Recurring lab work (criminal, investigative). FBI or other DOJ criminal investigation support labs, such as chemical, drug, fingerprint, metals and explosives analysis centers. Staff attorneys that conduct legal research or otherwise make recommendations but do not control the legal strategies Financial or other data management centers Prison/Detention Operations and Maintenance, including health services. Facilities operated and maintained by Federal employees, including BOP and INS, are generally considered commercial. III. Status of 2001 FAIR Act Inventory Submission to OMB Not Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 2,802 of 15,921 total FTE (18%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Data collection and analysis. Data collection is commercial. Also, the development, preparation and issuance of recurring statistical reports (not their approval or signature) is commercial. Inspection. The development of recommendations and the calculation of deductions is commercial when reviewed by higher authority (see OFPP 92-1 regarding the "finality of agency determinations"). It is, therefore, difficult to understand how the DOL's compliance division could be entirely inherently governmental. Statistical Analysis. DOL has argued its statistical analysis is an inherently governmental function. This activity currently comprises 6,700 FTE in the regulatory management (not inspection) area (including 1,131 wage and hour analysts, 613 EEO compliance analysts, 1,270 Mine Safety Analysts, 1,290 economists, 461 economics assistants, and 178 statisticians). III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 533 of 1,196 total FTE (45%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Administrative support services Grants Management III. Status of 2001 FAIR Act Inventory Submission to OMB Not Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 4,626 of 18,413 total FTE (25%) 1999 inventory: 7,973 of 18,755 FTE (43%) The OIG designated all 200 of its FTE as inherently governmental. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition NASA has inventoried 4,033 FTE as commercial in its Research, Development, Test and Evaluation areas. This is in addition to inherently governmental contract administration. program management and related support. Remaining commercial functions are small, including installation services, education and training, and health services. III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 1,636 of 2,953 total FTE (55%) 1999 inventory: 2,123 of 2,947 total FTE (72%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Research and Development activities Administrative support activities III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 11,600 of 61,052 total FTE (19%) 1999 inventory: 10,805 of 63,559 total FTE (17%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Financial and Administrative Management Support Field Offices (34,000 first line reviewers) III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 2,036 of 10,659 total FTE (19%) The OIG designated 15 of its 266 FTE as commercial. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Health Services Installation Services Other Non-Manufacturing Operations III. Status of 2001 FAIR Act Inventory Submission to OMB Received I. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 11,000 of 63,000 total FTE (17%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Engineering and air traffic controller activities Administrative support services Data collection and statistical analysis activities III. Status of 2001 FAIR Act Inventory Submission to OMB Received (Office of Inspector General only) I. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 26,663 of 145,445 total FTE (18%) The OIG (Tax Administration) designated 131 FTE as performing commercial functions out of approximately 1,000 total FTE. II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Plant Engineering Division functions Administrative support services III. Status of 2001 FAIR Act Inventory Submission to OMB Received 1. FTE Designated as Commercial on FAIR Act Inventory 2000 inventory: 185,209 of 207,000 total FTE (89%) II. Activities with Potentially Underutilized Opportunities for Public-Private Competition Laundry services Facility Operations and Maintenance Services Radiology Pharmacy Rehabilitation and Physical Therapy Services III. Status of 2001 FAIR Act Inventory Submission to OMB Received