Contracting Restrictions Take Hold

Although Congress is continuing to consider appropriations bills that would restrict the government’s contracting-out program at various agencies and in various ways government-wide, one provision that already has made it into law could start producing effects soon. That is language in the fiscal 2004 Defense Department appropriations measure (PL 108-87) imposing time limits on cost comparison studies used to decide whether to retain work in-house or contract it out. The language, which states that all “multi-function” competitions must be finished within 30 months, not only sets a standard for future competitions but also could act as a cut-off for ongoing studies that already have taken longer than that. The result could be a reprieve-at least a temporary one–for employees in those functions even if the work otherwise would have been contracted-out. However, it remains unclear for now what course the department will take.