Job Competitions Will Increase in 2006 Federal agencies plan to put more than 26,000 jobs up for public-private competition this year, according to the Office of Management and Budget. In its annual report on the president’s competitive sourcing initiative, OMB said more contractors competed for jobs in 2005. At least two private-sector offers were received in 63% of the standard competitions, generally involving more than 65 jobs, compared with less than half in the previous year. Just 11% of the competitions drew no contractor offers, down from 29% the year before. Contractors had been shying away from job competitions in previous years because federal employees were winning more than 80% of them. In 2005 OMB said federal employees won 61% of the jobs competed, but the results were skewed by a competition involving 2,500 jobs at the Federal Aviation Administration, won by Lockheed Martin. Competitions completed last year involved nearly 10,000 jobs. Agencies began competitions involving 5,000 more during the year. Most of the competed jobs were in five categories: maintenance and property management; IT; logistics; human resources, personnel management and education; and finance and accounting. The average standard competition was completed in 11 months; the average streamlined competition, involving fewer than 65 jobs, took three months. OMB said competitions involving larger numbers of jobs produce relatively greater savings. It said competitions decided on a best-value tradeoff basis produce larger savings than those conducted strictly on cost. However, Congress has prohibited awarding any work to the private sector unless the contractor can produce savings of at least 10% below the government’s cost. OMB said the administration will continue to press Congress to lift that and other restrictions on competition. OMB estimated the competitions completed in 2005 will save more than $3 billion over the next five to 10 years. The Bush administration has emphasized that the competitions produce savings even when federal employees win, because the employees restructure their work. Federal employee unions dispute the savings claims.