[Congressional Record Volume 141, Number 125 (Monday, July 31, 1995)]
[Extensions of Remarks]
[Pages E1561-E1562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              OPM PRIVATIZATION: CONTRACTING OUT TRAINING

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                          HON. CARDISS COLLINS

                              of illinois

                    in the house of representatives

                         Monday, July 31, 1995
  Mrs. COLLINS of Illinois. Mr. Speaker, the Office of Personnel 
Management [OPM] has become the proving ground for the administration's 
privatization efforts. The types of business organizations which OPM 
has utilized thus far to spin-off two of its major functions, training 
and investigations, have generated controversy because they do not fit 
the traditional mold of a private sector enterprise. But OPM's 
willingness to be innovative in an effort to ensure that agencies 
continue to receive quality services and that its separated employees 
have bona fide job opportunities is commendable.
  Last month, the subcommittee held a hearing on the first of OPM's 
privatization initiatives--the proposed formation of an employee stock 
ownership plan [ESOP] to conduct background investigations needed for 
Federal employment. Several important issues were examined, including 
the viability of the new entity, the amount of savings to be realized, 
and whether a private firm could do better or more cost effective work.
  Today, the subcommittee examines OPM's decision to transfer its 
nonresidential training activities to the USDA Graduate School, a non-
appropriated fund instrumentality [NAFI]. The very same issues raised 
at the earlier hearing need to be addressed by the each of the 
witnesses.
  Mr. Chairman, since you made known your belief that more than 50 
percent of the services and activities of the Federal Government ought 
to be contracted out, privatization has become an issue dominating much 
of the time 

[[Page E 1562]]
of this subcommittee. While I do not oppose privatization, I believe 
that each proposal calling for it must be subjected to an exhaustive 
and deliberative review.


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