December 23 2005 Copyright 2005 Business Research Services Inc. 301-229-5561 All rights reserved.
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Limits on Job Competitions Stick This Time Opponents of outsourcing succeeded in restricting public-private job competitions in civilian agencies. The Transportation-Treasury appropriations bill, signed into law Nov. 30, requires contractors to beat federal employees’ costs by at least 10% or $10 million (whichever is less) in OMB Circular A-76 competitions in civilian agencies. That provision already applies to the Defense Department. The law also allows federal employees in units of 10 or more to reorganize their work into a most efficient organizations (MEO) before a competition. Under previous law, only groups of 65 or more federal employees had the right to form MEOs. One or both houses of Congress had passed similar amendments twice before, but they had been dropped from the final legislation because of the Bush administration’s opposition. “Under pressure from Congress and outside interests , the administration seems to have backed off its goals in this area,” said Harris Miller, president of the Information Technology Association of America, in a statement. The sponsor of the restrictive amendments, Sen. Barbara Mikulski (D-MD), said, “I will keep fighting to fix the competition process that is shamefully slanted in favor of private contractors.” Although federal employee unions contend the job competitions are unfair to their members, the Office of Management and Budget reported that federal workers have won about 90% of all competitions. OMB also found that many contractors are refusing to take part in job competitions. In fiscal 2004, more than half the competitions attracted either no bids or a single bid from the private sector. (SAA, 5/27)
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