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Civilian Agenciesí Development and Implementation of Insourcing Guidelines
John K. Needham (au)
Fed. agencies rely on a multisector workforce composed of fed. employees and contractor personnel to perform services as they carry out their missions. Determining whether to obtain services through insourcing with current or new fed. employees, outsourcing with private sector contractors, or cosourcing with a combination of the two is an important economic and strategic decision critical to the fed. govt.'s effective and efficient use of taxpayer dollars. The exec. branch has encouraged fed. agencies since the mid-1950s to obtain commercially available services from the private sector when outsourcing is cost-effective. In the last 5 fiscal years, civilian agencies have on average annually obligated about $100 billion to obtain a range of services from contractors. However, in March 2009, the President issued a memorandum on government contracting that, among other matters, expressed concern about the fed. workforce as to whether agencies have become overreliant on contractors and have appropriately outsourced services. In particular, the President noted that the line between inherently governmental functions -- those that must be performed by fed. employees -- and commercial activities that may be contracted for has been blurred. This report identified (1) the actions taken by the Office of Mgt. and Budget (OMB) to assist affected agencies as they develop insourcing guidelines and (2) the status of selected civilian agencies' efforts to develop and implement insourcing guidelines. Tables.
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