Contracting-Out Policy Also at Issue

The House version of the DoD bill would require a formal comparison of in-house costs versus contractor bids before functions employing 10 or more department employees could be contracted-out. A formal comparison also would be needed “before modifying, reorganizing, dividing, or changing any function within the Department of defense.” The measure also would start a two-year pilot program in which 10 percent of all functions that are considered new must undergo the cost-comparison process-in effect preventing the department from automatically giving the work to contractors. Another provision would require that “contracting-in” studies be performed on work already out on contract, equal to 10 percent of the number of in-house jobs studied for contracting-out. DoD could waive those requirements in the interests of national security, however.