The Internal Revenue Service makes excessive use of cost-reimbursement contracts, according to a report by the Treasury Department inspector general.

The IG found 33 of 40 contracts examined by auditors were cost-reimbursement, while only two were fixed price. The others were hybrids.

“While the contract types we reviewed were not improper, these types of contracts present a greater risk of the IRS paying more for contracts than necessary,” said J. Russell George, Treasury’s IG for tax administration.

President Obama has called for governmentwide limits on cost-reimbursement contracts.

The IRS says it will not renew debt-collection contracts with private-sector contractors.

Officials said a study of the private debt-collection program found it was more expensive and recovered less money than having government employees do the job. IRS plans to hire 1,000 more employees in its collection division.

The omnibus spending act signed by President Obama halts public-private job competitions for fiscal 2009, possibly putting an end to the Bush administration’s controversial competitive sourcing program.

The program drew bitter opposition from federal employee unions, although federal employees kept their jobs in the vast majority of the competitions.

The bill also directs federal agencies to conduct in-sourcing studies, to determine whether work currently performed by contractors can be brought back in-house.

SBA is considering waiving the nonmanufacturer rule for Conductor and Cable (Aluminum), NAICS code 331319, product service code (PSC) 6145; Conductor and Control Cable (Copper), NAICS code 331422, PSC 6145; Truck Trailer Manufacturing, NAICS code 336212, PSC 2330; All Terrain Vehicles (ATV’s), wheeled or tracked, Manufacturing; Snowmobiles and parts; Off-road all terrain vehicles and wheeled or tracked Manufacturing, NAICS code 336999, PSC 2330; and Noncurrent-Carrying Wiring Device Manufacturing, i.e., dead end tees and connectors, guy strain and link assemblies, bolts, washers, turnbuckles, twisted clips, steel angle assemblies, yoke plates, compression T connectors, press dies, anchor shackles, clevis ball and clevis sockets, yoke plates and grounding clamps, NAICS code 335932, PSC 5975.

The agency says no small businesses are providing these products to the federal government. Comments are due March 24