Federal Manager's Daily Report

The House of Representatives has passed an amendment to

the fiscal 2006 Transportation-Treasury-HUD Appropriations

bill, offered by Representative Chris Van Hollen, D-MD,

that would open the way for the Office of Management and

Budget to revise A-76 competitive sourcing policy.

Van Hollen’s office stated that the amendment – passed for

the third year in a row, this time on a vote of 222 to 203

– gives the administration “a second chance to rewrite the

competitive sourcing process” to better balance the

interests of taxpayers, customers, federal employees and

contractors.

It would allow, but not require, OMB to use the version

of A-76 that was in use prior to a May 2003 revision. In

the past two years, the amendment was not accepted by the

Senate and was ultimately dropped in a House-Senate

conference.

Chairman of the House Government Reform Committee, Tom

Davis, R-Va., urged colleagues to oppose the amendment,

which was dropped from the two previous bills, arguing the

current version of A-76 is the result of a long,

comprehensive process.

The White House has threatened to veto the bill for

provisions it says weaken initiatives of the president’s

management agenda, but did not focus on the Van Hollen

amendment, prompting an optimistic response from president

of the American Federation of Government Employees, John

Gage.

He said, “relatively muted level of opposition” in OMB’s

assessment of the amendment could represent the feeling

“that the privatization process must be meaningfully

revised to provide federal employees with the same

appeal rights enjoyed by contractors, ensure that

federal employees must always be allowed to compete

before their work is contracted out, allow federal

employees to compete for new work and contracted out

work, and encourage alternatives to privatization that

don’t have the significant costs and controversies

associated with privatization.”