Contracting Issues Also Pending

The administration also opposes language added to the House bill in floor voting to send the Office of Management and Budget back to the drawing board on contracting-out policy by overriding changes made in 2003 to OMB Circular A-76, threatening a veto of any bill that would “significantly erode” the President’s Management Agenda, of which contracting-out is a part. The Senate version requires that the in-house bid must be based on a “most efficient organization” and it bars contracting-out unless the projected savings from contractor performance would be at least 10 percent or $10 million.