OMB Circular A -76: Outsourcing and competition. An analysis of the Department of the Army's "Competitive Sourcing Program" from 1997--2001. - Page 109 |
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The above area is important because, without a perception of fairness, the private sector will opt not to compete in the competitive sourcing process. Moreover, the basis of competitive sourcing savings is predicated on establishing, having, and maintaining effective competition. Problem areas for DoD revolved around: FAIR Act consistency (some agencies excluded the same function that another agency included); development and maintenance of reliable savings and costs; supporting documents sometimes not provided; job descriptions vaguely infringing on the fairness of the bidding process; and GAO decisions not implemented into new competitive sourcing studies (DoD, 2003, p. 15). 3. Cost Savings from OMB A-76 Studies and Competition (12 reports) (DoD, 2003, pp. 15-17): DoD Instruction 4100.33 requires that the Defense Department use the Commercial Activities Management Information System (CAMIS) to track A-76 studies. The problem highlighted within this area was the imprecision of the expected cost savings. Some of the main reasons are as follows: a. Base line cost estimates were done in an aggregate manner versus actually computing the individual position actual costs. b. Study and implementation costs were excluded. c. Savings were not linked to specific functions under study or targeted for future studies. d. Activity-based costing is not available within the DoD. e. Savings were based on competitive market areas, yet new areas may not have competitive markets. f. Continuing budget and personnel cuts could make it difficult to sustain the levels of previously projected studies. Several barriers to achieving cost savings revolved around the following: Government employees were afraid of losing their jobs; highly competitive markets 94 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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Title | OMB Circular A -76: Outsourcing and competition. An analysis of the Department of the Army's "Competitive Sourcing Program" from 1997--2001. - Page 109 |
Repository email | cisadmin@lib.usc.edu |
Full text | The above area is important because, without a perception of fairness, the private sector will opt not to compete in the competitive sourcing process. Moreover, the basis of competitive sourcing savings is predicated on establishing, having, and maintaining effective competition. Problem areas for DoD revolved around: FAIR Act consistency (some agencies excluded the same function that another agency included); development and maintenance of reliable savings and costs; supporting documents sometimes not provided; job descriptions vaguely infringing on the fairness of the bidding process; and GAO decisions not implemented into new competitive sourcing studies (DoD, 2003, p. 15). 3. Cost Savings from OMB A-76 Studies and Competition (12 reports) (DoD, 2003, pp. 15-17): DoD Instruction 4100.33 requires that the Defense Department use the Commercial Activities Management Information System (CAMIS) to track A-76 studies. The problem highlighted within this area was the imprecision of the expected cost savings. Some of the main reasons are as follows: a. Base line cost estimates were done in an aggregate manner versus actually computing the individual position actual costs. b. Study and implementation costs were excluded. c. Savings were not linked to specific functions under study or targeted for future studies. d. Activity-based costing is not available within the DoD. e. Savings were based on competitive market areas, yet new areas may not have competitive markets. f. Continuing budget and personnel cuts could make it difficult to sustain the levels of previously projected studies. Several barriers to achieving cost savings revolved around the following: Government employees were afraid of losing their jobs; highly competitive markets 94 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. |