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Senate Favors Federal Workers in Job Competitions

The Senate has approved new restrictions on public-private job competitions under OMB Circular A-76.

An amendment to the Transportation-Treasury appropriations bill would require contractors to beat federal employees’ costs by at least 10% or $10 million (whichever is less) in competitions in civilian agencies. That provision already applies to the Defense Department.

The sponsor, Sen. Barbara Mikulski (D-MD) said, “This language is the first step in leveling the playing field for federal employees and the first year federal employees have made real progress against unfair contracting out.” Sen. Christopher Bond (R-MO) co-sponsored the amendment.

Mikulski said a stronger provision passed by the House, scrapping the revised Circular A-76 rules, would not survive a House-Senate conference committee because of the Bush administration’s opposition. OMB had threatened a presidential veto if the amendment, sponsored by Rep. Chris Van Hollen (D-MD) remained in the final bill.

“For the second year in a row, the White House bullied Congressional Republicans into removing” the Van Hollen amendment, Mikulski said in a statement.

Backers of the Mikulski and Van Hollen amendments contend job competitions are stacked against federal employees, but OMB figures show that those employees have won about 90% of all competitions.

The Senate bill would also require agencies to allow government employees to restructure their work in a so-called most efficient organization for all job competitions. Under current rules MEOs are required only for competitions affecting more than 65 employees.

The Senate passed the Transportation-Treasury appropriation, H.R. 3058, on Oct. 20. The final version will be worked out in a conference committee.

The Senate Veterans Affairs Committee voted to open jobs in the Veterans Affairs Department to competition. VA is now prohibited from holding competitions without express approval from Congress, but the committee voted to remove that provision from the Veterans Health Care Act, which is now pending in the Senate.

OMB has estimated that competitive sourcing could save $1.3 billion over five years by allowing contractors to compete for jobs such as laundry and dry cleaning and linen/uniform services.


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