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Government Leader home > March 2005 issue



Competitive sourcing pays off

Circular A-76, the Office of Management and Budget tool with which agency employee groups compete with the private sector for conracts, is in the black, OMB says. The savings haven’t come from outsourcing, strickly speaking—employee organizations have won about 90 percent of the compeitions over the last two years—but from the effects of the competitions themselves. Although last year saw about a third as many A-76 competitions as 2003, the total savings from the resulting contracts was actually higher.

“It’s hard to argue that this is not generating efficiencies,” said Office of Federal Procurement Policy administrator David Safavian.

Is in-house the new outsourcing?

A-76 competitions20042003
Total competitions completed662217
Full-time employees affected17,59512,573
In-house wins89%91%
Net savings( 3-5 years)$1.1b$1.4b
Savings per FTE$12,00022,000








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