Some Small Firms Prosper in Job Competitions While federal employees win the vast majority of public-private job competitions, small businesses have fared well under President Bush’s competitive sourcing initiative, according to a report for SBA’s Office of Advocacy. Of the contracts won by the private sector over the past six years, nearly two-thirds went to small firms, said the report’s authors, Eagle Eye Publishers Inc. and Jack Faucett Associates Inc. They based the findings on an analysis of government data, which is admittedly incomplete. But the Office of Management and Budget reports that federal employees have consistently won more than 80% of the competitions. Competitive sourcing is a key priority in the management agenda established by President Bush soon after he took office. But the use of competitions under OMB Circular A-76 has been restricted in various ways by Congress, responding to pressure from federal employee unions. With Democrats now controlling Congress, Virginia Republican Rep. Tom Davis recently said, “I think you’ve seen basically the end of A-76 for the next two years.” Many contractors have shied away from the job competitions. Industry groups told the SBA investigators that the competitions are not fair because federal agencies underestimate the cost of performing work in-house. Industry has also complained about the expense of competing, because of extensive paperwork requirements and the length of time it takes to complete most competitions, the report said. Opportunities for small businesses may be dwindling as agencies move to consolidate requirements and create competitions for larger numbers of jobs. The Office of Management and Budget has pushed the trend because larger competitions produce greater cost savings. While a wide variety of services have been competed, the researchers said logistics is currently the largest A-76 market. Job competitions still represent a tiny part of federal procurement, accounting for just $5.5 billion in contracts since 2001, according to available data.