New Approach to Contracting-Out Proposed

A commission examining the government’s process of considering federal jobs for private sector performance has issued a divided final report, with the majority of members supporting giving the work to the side that provides the “best value,” not necessarily the lowest bid, as is done today. The panel on an eight to four vote recommended replacing the current reliance on the cost review process under Office of Management and Budget Circular A-76 with an integrated approach that also takes into account factors that typically apply under general federal acquisition rules, such as technical expertise, innovativeness and past performance. Both the public sector and private sector sides would have the same rights, including the right to protest, and the same responsibilities, including accountability for performance, it said. The report said that OMB could carry out most of the needed changes administratively but noted that legislation would be needed to make such changes at the Defense Department. Cost-comparison studies already under way should be finished under the current rules, it said.