The Office of Management and Budget has projected savings
of $1.4 billion over the next five years through job
competitions conducted in fiscal 2004.
OMB estimates competitive sourcing efforts for that year
could yield a 27 percent reduction in the cost of providing
certain services.
Agencies reported spending $110 million studying 12,573
federal positions last year, which OMB says forces them
to become more efficient even when they keep the functions
in-house, which was the result of 90 percent of the
positions studied.
“We are seeing an unmistakable link between the strategic
application of competition and an agency’s ability to
save taxpayer dollars through consolidations,
results-oriented performance standards, and the leveraging
of technology,” said David Safavian, OMB’s Administrator
for Federal Procurement Policy.
