Competitive Sourcing: What Happens to Federal Employees?

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By

Jacques S. Gansler

Former Professor and Roger C. Lipitz Chair in Public Policy and Private Enterprise

University of Maryland School of Public Affairs Center for Public Policy and Private Enterprise

William Lucyshyn

Director of Research and Senior Research Scholar

University of Maryland lucyshyn@umd.edu

By examining all A-76 competitions conducted by the Department of Defense from 1994 through the first quarter of 2004, this report analyzes the impact of competitive sourcing on federal employees. The authors present three major conclusions. First, most claims of the negative impact of competitive sourcing on federal employees are unfounded. Second, the data affirmed previous research on the benefits of competitive sourcing. Third, the study found that since 1999, in-house bids have increased their "win rate," and that by 2003, government won nearly twice as many competitions as did private sector contractors. Four case examples illustrate how managers have used extensive planning and creative bid solicitation techniques to minimize negative impacts during the separation of employees. defense, nasa, park service, army, navy, indiana, inContracting

Competitive Sourcing: What Happens to Federal Employees?