DoD would have to submit a study by next February comparing the full cost of performance of functions by in-house versus contractor employees, under the Senate’s version of the department’s budget. Such a study could reignite the long-running debate over the “Circular A-76” process for comparing in-house costs to private sector bids for possible contracting-out, an issue that has been dormant in recent years due to a general moratorium on such studies.
According to a committee report on the measure, the study would have to take into account the “fully burdened” cost—not specifically defined, but presumably including benefits, training and other costs apart from salary—of six functions in which there is a mix of federal and contractor employees.
The report also would have to include a comparison of the cost of performance of the full rangeof functions, required expertise, and managerial qualities requiredto adequately perform the function to be compared. This would includesecretarial, clerical, or administrative duties, includingdata entry;mid-level managers and other personnel possessingspecial expertise or professional qualifications;managers and other leadership; andpersonnel responsible for producing congressionallydirectedreports.
In performing the assessment, the Pentagon is to “take into account the policy that inherently governmentalfunctions vital to the national security of the UnitedStates may not be performed by contractor personnel.”
