Industry Urges Clarification of Insourcing Policy Industry groups urged the Office of Federal Procurement Policy to clarify its proposed policy on insourcing. The draft policy letter, issued March 31, seeks to define “inherently governmental” functions that should not be contracted out, as well as functions closely associated with inherently governmental work and functions that are critical to an agency’s mission. The Small Business Coalition for Fair Contracting, a new organization created to fight the insourcing initiative, said the definition of critical functions is so vague that it could apply to such jobs as janitorial service, since an agency cannot operate efficiently unless its offices are cleaned. Other industry organizations weighed in to protect their turf. TechAmerica, an association of technology companies, urged OFPP to make a clear distinction between governmental functions, such as tax collection, and the IT support that helps the government carry out the function. “It would not be in the government’s best interest to inhibit its access to the efficiencies and other enhancements offered by commercial IT products and services,” TechAmerica vice president Trey Hodgkins wrote. The National Association of Security Companies said security guards should not be considered a governmental function, since the work has been outsourced for decades. On the other hand, OMB Watch, a nonprofit watchdog group, argued that security guards should be federal employees. The group also urged that contractors be prohibited from performing such functions as acquisition support and covert intelligence operations. The Small Business Coalition for Fair Contracting said OFPP should direct agencies to stop insourcing until a final policy letter is issued. It said the policy should require a cost analysis before work is insourced, prohibit insourcing quotas and restrict the government’s hiring of contractor personnel. OFPP administrator Dan Gordon has said the policy letter is part of an effort to rebalance the mix of government employees and contractors. The proposed letter says, “The line has been blurred between functions that are inherently governmental and those that are not, potentially leading to confusion and to inappropriate judgments about when contractors may perform work that should be reserved for performance by Federal employees.” OFPP will consider the public comments before issuing a final policy letter.