January 10 2003 Copyright 2003 Business Research Services Inc. 202-364-6473 All rights reserved.
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Congressmen Oppose Army Outsourcing More than 60 House members are urging the Army to seek congressional approval before moving forward with the largest outsourcing initiative in history. The Army announced plans last fall to let contractors compete for up to 200,000 jobs as part of a massive restructuring of its “non-core” functions. The moves “have the potential of seriously eroding the readiness of the total force at a time when the nation is facing a determined security threat,” said the letter. It was originated by Rep. Sylvestre Reyes (D-TX), a member of the Armed Services Committee, and was signed by 68 members, almost all of them Democrats. Army Secretary Thomas White told major commanders to submit plans for “privatizing, divesting, competing using A-76, outsourcing using ‘alternatives to A-76,’ converting military spaces to civilian or contract, or transferring to other government agencies, non-core functions that fall under your purview.” More than 150,000 civilian jobs and more than 50,000 military positions have been identified as “non-core.” The secretary described the program as “The Third Wave” of public-private competitions. He said functions other than base operations will be considered for outsourcing for the first time. White said he would approve the plans by March. An Army spokesman said Congress would be consulted. The competitive sourcing push is another step in a wide-ranging reorganization of the Army’s business operations. In October the new Army Contracting Agency assumed responsibility for most procurement activities formerly handled by major commands or individual installations, and the Installation Management Agency took over the management of base operations, formerly the province of base commanders.
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