OMB Issues Contracting Instructions

Meanwhile, OMB has sent guidance to agencies on how to carry out several changes in contracting out policy that were enacted last year over the Bush administration’s objections. The White House proposed repealing the provisions in this year’s budget request, but OMB nevertheless instructed agencies that they must carry out the provisions, which include generally prohibit contracting out any function employing more than 10 federal workers if the bidder doesn’t show a saving of at least 10 percent or $10 million or if the bid is based on the contractor paying less toward health insurance or retirement than the government would pay toward its employees. The chairman of the House Oversight and Government Reform Committee, Rep. Henry Waxman, D-Calif., has stated his opposition to rolling back those restrictions and federal employee organizations have said they will work this year to keep the restrictions on the books, if not broaden them.