Contracting Out Program Targeted

Congress has passed and President Obama has signed a budget measure covering most of the government for the rest of the current fiscal year containing a ban on starting any new contracting out studies through September 30—a likely harbinger of moves to come as Congress takes up a budget for fiscal 2010 in the months ahead. The measure also says that special attention should be given to having federal employees perform any new work that is similar to a function previously performed by federal employees or is closely associated with the performance of an inherently governmental function. Also, it says special attention should be given to bringing in-house work that has been performed by federal employees within the last 10 years, is closely associated with the performance of an inherently governmental function, was given to a contractor on a non-competitive basis, or when there have been cost or quality problems in the contractor’s performance.