Federal Manager's Daily Report

The American Legion has introduced a new element in the debate over insourcing contractor jobs, saying the process is harmful to veteran-run small businesses.

"They’re taking away the people with contracting and procurement skills, hiring them as federal employees, and leaving the smaller companies to go bankrupt," an official told the group’s recent convention. "Basically, federal agencies are saying, ‘Come work for us. We’ll make you a G-11 for doing the same job.’"

Officials said the group is bringing the issue to the attention of Congress and that members of both parties have expressed concern about the effects of insourcing on veteran-run businesses. Congress has treated jobs for veterans as a high priority item in recent years and such concerns could be used as justification for scaling back the insourcing program, which already has been restricted at DoD due to a desire to eliminate jobs rather than convert them to federal employee performance.