Civilian Agencies Will Continue Insourcing Civilian agencies will continue their insourcing initiatives, despite the change of direction by the Defense Department. Dan Gordon, administrator of the Office of Federal Procurement Policy, told Government Executive magazine that civilian agencies are generally insourcing inherently governmental jobs, which never should have bee contracted out, and work that the agency considers mission-critical. “I don’t think or would not anticipate issuing guidance that would prohibit agencies from adding federal employees to do work currently being performed by contractors if they think it’s necessary,” Gordon told the magazine. While Defense Secretary Gates said DOD has not realized the anticipated savings from insourcing, Gordon said civilian agencies are not doing it to save money. OFPP guidance does not require agencies to compare costs before turning work over to federal employees. The Business Coalition for Fair Contracting, a group created to monitor insourcing, urged the Office of Management and Budget to declare a moratorium until it develops a comprehensive insourcing policy, including a requirement for cost comparisons. “This shift to government performance of commercial activities not only hinders the private sector, including small and minority owned business, but places additional costs on taxpayers during a lengthened period of a steep decline in the nation’s economy, a staggering national debt, and a high national rate of unemployment,” the coalition’s president, John Palatiello, wrote in an Aug. 13 letter to OMB. Congress to Consider Insourcing Both houses of Congress are moving to prohibit contractors from performing work that is closely associated with inherently governmental functions. The House has passed the Financial Services and General Government Appropriations Act, H.R. 3170, including a requirement that “closely associated” functions must be performed by federal employees “to the maximum extent practicable.” The Senate Appropriations Committee included similar language in its version of the bill, S. 3677, which is awaiting action.