Federal Manager's Daily Report

The House committee also said it “supports the

administration’s efforts to improve government performance

through competition. Enabling federal employees who

perform commercial activities the opportunity to retool

their operations to improve efficiency by competing against

private contractors is an effective way to eliminate waste

and introduce innovative solutions into the operations of

the federal government.”


“The committee looks forward to working with the

administration to remove legislative restrictions on

competitive sourcing so that all federal agencies have

full use of this management tool,” the document says. That

likely is a reference to restrictions that have been

written into spending bills the last several years–and

that likely will arise again in the current budget

cycle–aimed at restoring certain provisions of

contracting-out policy that predated 2003 changes in

Office of Management and Budget Circular A-76. Those

restrictions include, for example, a requirement that

the Defense Department–which accounts for the large

majority of contracting-out efforts–can only contract-out w

ork if a savings of at least 10 percent or $10 million

is indicated.