Federal Manager's Daily Report

The administration’s 2007 budget request in a section on

“managing for results,” criticizes legislative restrictions

on competitive sourcing that require agencies to choose the

cheapest provider.

The White House said it wants to expand the criteria for

deciding job competitions to select the provider that offers

the best value, so that the taxpayer could get the best results,

rather than the most savings.

To date, the administration has touted savings — $5.2 billion

over the next three to five years by its count — as well as

leaner operations resulting from agencies having to fight for

their jobs. But unions and some in Congress are skeptical

about the claimed savings and argue that the shift in

terminology to include value could add a measure of subjectivity

to deciding whether a function goes to the private sector or

remains in the federal government.

“While cost will always be a key consideration in every decision,

agencies must be able to look at innovative solutions and

enhanced services that can provide better value to the taxpayer,”

the budget request said.