DOD Competitive Sourcing: Results of A-76 Studies Over the Past 5 Years
(Letter Report, 12/07/2000, GAO/GAO-01-20).
As directed by Congress, the Department of Defense (DOD) reported on its
Office of Management and Budget Circular A-76 studies on July 14, 2000.
GAO found that DOD generally complied with the reporting requirements
that Congress had imposed on it. DOD took steps to ensure that the
information it provided on 286, A-76 studies was complete and accurate.
GAO determined that the information was generally consistent with data
it had collected on other A-76 studies. However, because of historical
weaknesses in DOD's database from which the data were obtained, GAO
could not be sure of the data's accuracy. Overall, DOD reported that the
A-76 studies generated a savings of about $290 million in fiscal year
1999. GAO's work showed the savings were being achieved, but limitations
in DOD's baseline cost data made it difficult to determine precisely how
much was being saved. In addition, DOD reported that 40 percent of the
A-76 studies resulted in contracts with the private sector. At the same
time, the report indicated that in 1999 only 23 percent of the studies
resulted in outside-contracts. This was considerably lower than in
previous years where contractors won the majority of the competitions.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: GAO-01-20
TITLE: DOD Competitive Sourcing: Results of A-76 Studies Over the
Past 5 Years
DATE: 12/07/2000
SUBJECT: Cost effectiveness analysis
Reporting requirements
Privatization
Defense procurement
Comparative analysis
Department of Defense contractors
IDENTIFIER: DOD Commercial Activities Management Information System
OMB Circular A-76 Program
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GAO-01-20
A
Report to Congressional Committees
December 2000 DOD COMPETITIVE SOURCING
Results of A- 76 Studies Over the Past 5 Years
GAO- 01- 20
Lett er
December 7, 2000 The Honorable Ted Stevens Chairman The Honorable Robert
Byrd Ranking Minority Member Committee on Appropriations United States
Senate
The Honorable C. W. Bill Young Chairman The Honorable David R. Obey Ranking
Minority Member Committee on Appropriations House of Representatives
In 1999, Congress required the Department of Defense to report on studies it
had completed under Office of Management and Budget Circular A- 76 since
1995. 1 Circular A- 76 provides guidance for cost comparison studies
between the government and the private sector to determine who should
perform recurring commercial- type activities for the government. Circular
A- 76 also makes provision for direct conversions to or from contractor
performance under specified circumstances.
Congress required the Department to provide specific information concerning
its A- 76 studies, such as whether the government or the private sector was
selected to perform work in the future and the cost of operations before and
after the studies. It also required information on A- 76
studies that resulted in work being transferred from contractors to a
government workforce. Finally, it required that the Department provide
recommendations for maximizing the possibility of effective public- private
competition for work that has been contracted out.
Congress also required us to provide the Appropriations Committees with our
views on whether the Department complied with section 8109 reporting
requirements within 90 days of the Department's report being submitted to
Congress. Accordingly, this report provides our assessment of 1 Section 8109
of the Department of Defense Appropriations Act, 2000 (P. L. 106- 79).
(1) the Department's compliance with the reporting requirements and any
limitations associated with the data and (2) the Department's summary
observations about overall savings and the extent to which competitions were
won by the government or the private sector.
Results in Brief The Department of Defense largely complied with section
8109 data reporting requirements with its July 14, 2000, report to Congress
on
completed A- 76 studies. The Department provided requested information on
286 A- 76 studies completed since 1995 for which it had complete data as of
June 2000. The report excluded information on 53 studies for which the
Department had incomplete data and included 13 studies that fell outside
of the reporting time frame cited in the report. 2 The Department took steps
to ensure the accuracy, consistency, and completeness of information
reported concerning the 286 studies, and we found the data consistent with
information we had previously gathered as part of our other recent studies
on A- 76 issues. Nevertheless, we cannot be sure of the total accuracy of
the data because of historical weaknesses in the services' and Defense
agencies' databases used to record information on completed A- 76 studies.
In responding to the section 8109 requirement to present recommendations for
maximizing the possibility of effective public- private competition for work
that has been contracted out, the Department reiterated existing
policy guidance on the subject. The Department noted that its components
have the option to perform cost comparisons on contracted work where
appropriate. The Department's data on completed competitions identified
eight instances where contracted work was studied under A- 76 procedures. 3
Overall, the Department reported significant savings resulting from these
competitions based on a single point in time. The Department estimated that
the 286 A- 76 studies generated savings of $290 million in fiscal year 1999.
Our work shows that savings are being realized from the Department's
competitive sourcing studies; however, limitations in baseline cost data
from which to calculate savings, study costs, and other factors make it
difficult to estimate savings as precisely as suggested by the
2 We used the post- competition start date as a guideline for determining
the fiscal year a study was completed. 3 The Department of Defense was not
required to report on instances where contracted work was subjected to
recompetition limited to the private sector.
Department's report. In addition, the Department reported that 40 percent of
the cost comparisons completed during the multiyear time period covered by
its report resulted in decisions to contract with the private sector. At the
same time, data in the report also showed that for fiscal year 1999 only
about 23 percent of the cost comparisons resulted in conversion to contract
performance- and most of those occurred in the Air Force. This is
significantly lower than in other recent years where contractors won a
majority of the competitions. The mandated time frame for this report did
not permit us to fully assess this difference.
The Department of Defense agreed with the report. Background Since 1955, the
executive branch has encouraged federal agencies to obtain commercially
available goods and services from the private sector when
the agencies determined that such action was cost- effective. The Office of
Management and Budget (OMB) formalized the policy in its Circular A- 76,
issued in 1966. In 1979, OMB supplemented the circular with a handbook that
included procedures for competitively determining whether commercial
activities should be performed in- house, by another federal agency through
an interservice support agreement, or by the private sector.
OMB updated this handbook in August 1983, March 1996, and June 1999. Under
A- 76, commercial activities may be converted to or from contractor
performance either by direct conversion or by cost comparison. Under direct
conversions, commercial activities may be moved from government
or contract performance without a cost comparison study, under certain
specified conditions. For example, activities involving 10 or fewer
civilians may be directly converted without a cost comparison study.
Generally, commercial functions are to be converted to or from contractor
performance by cost comparison. A cost comparison is the process whereby the
estimated cost of government performance of a commercial activity is
formally compared to the cost of contractor performance in
accordance with the principles and procedures set forth in Circular A- 76
and the Supplemental Handbook. As part of this process, the government
identifies the work to be performed- described in the performance work
statement- and prepares an in- house cost estimate, based on its most
efficient organization, and compares it with the winning offer from the
private sector. Single function competitions must be completed within 24
months and multifunction competitions within 48 months. 4
Administrative and legislative constraints from the late 1980s through 1995
resulted in a lull- and even a moratorium- on awarding contracts resulting
from competitions for a time. In 1995, congressional and
administration initiatives placed more emphasis on A- 76 competitions as a
means of achieving greater economies and efficiencies in operations. The
Deputy Secretary of Defense in 1995 directed the services to make
outsourcing of support activities a priority, and the effort subsequently
was incorporated as a major initiative under the Secretary's November 1997
Defense Reform Initiative. Consequently, the Department of Defense (DOD) has
had a significant effort under way since 1995 to use A- 76
competitions to achieve greater organizational efficiencies and reduce
operating costs. The President's budget for fiscal year 2001 outlined the
Department's plans to study functions under A- 76 affecting over 203,000
positions between fiscal year 1997 and 2005. During fiscal years 1995
through 1999, the Department has reported completing studies involving about
10, 660 positions.
Section 8109 of the 2000 Defense Appropriations Act required DOD to submit a
report providing specific information on all instances since 1995 in which
missions or functions of the Department have been reviewed pursuant to OMB
Circular A- 76. First, the report was to identify all A- 76 studies of work
performed by DOD employees and provide the outcome of
each review, indicating whether performance of the work would be contracted
or remain in- house; a description of the types of missions or functions
reviewed; the locations where missions or functions were
4 A single function competition could, for example, involve studying the
custodial services at an installation, while a multifunction competition
could involve studying both custodial services and refuse collection and
disposal services.
performed; the name of the contractor performing the work (if applicable);
the cost to perform the missions or functions at the time the review was
conducted; and the current cost to perform the missions or functions.
Second, the act required DOD to identify instances in which existing
contracted work was brought in- house to be performed by civilian or
military employees of the Department and include a description of the work,
the locations where the work was performed, the name of the contractor that
was performing the work, the cost of contractor performance at the time of
the study, and the current cost of performance
by DOD employees. Third, the report was to include recommendations for
maximizing the possibility of effective public- private competitions for
work that has been contracted out. (See app. I for a copy of section 8109.)
DOD Largely Complied The Department largely complied with congressional data
reporting With the Data
requirements with its July 14, 2000, report providing information on 286 A-
76 studies completed since 1995 for which it had complete data in
Requirements for June 2000. DOD made efforts to ensure the accuracy and
completeness of Completed Studies and the data; however, we cannot be sure
of the total accuracy of the data Restated Existing
because of historical weaknesses in the services' and DOD agencies'
databases used to record information on completed A- 76 studies. Where
Policy Regarding
required to provide recommendations for maximizing the possibility of
Recompetitions effective public- private competition for work that had been
contracted, the Department outlined existing guidance in this area.
Involving Contracted
Work DOD Provided Data for A- 76 DOD's July 14, 2000, report to Congress
provided information on 286 A- 76 Studies Based on Available
studies representing those where public- private competitions had been
Information
held as well as those where provisions of Circular A- 76 were used to
directly convert performance to or from the public sector without a cost
comparison. 5 Of the 286 studies reported by the Department, 138 involved
cost comparisons between the public and private sectors, and 148 involved
direct conversions either to or from in- house performance. Of the 138 cost
5 We found that one Defense Finance and Accounting Service study announced
in fiscal year 1995 was actually cancelled the following year due to a
prohibition of providing tax information to potential contractors.
Nonetheless, this initiative is included in the 286 studies in the section
8109 report.
comparisons, 55 (40 percent) were won by the private sector. Of the 148
direct conversions, all but 14 were moved to private sector performance.
Eight of the 286 studies involved work which was being performed by the
private sector. Of the eight, six involved public- private cost comparisons,
resulting in equal wins between the public and private sectors. The other
two involved direct conversions from private to public- sector performance.
In preparing its report, officials in the Office of the Secretary of Defense
requested the services and Defense agencies to provide data on their A- 76
studies completed during fiscal year 1995- 99. However, we found that the
Department excluded information on 53 studies completed during 1999 because
information was incomplete at the time it prepared its report in June 2000.
At the same time, we found that the Department had included
13 studies completed during fiscal year 2000. Our analysis of the additional
53 studies changed summary results only slightly. For example, the number of
direct conversions increased to 195 studies (up 6 percent). The
percentage of cost comparisons resulting in private sector performance
increased only 1 percent, from 40 to 41 percent. The number of studies
involving work currently performed by the private sector (8) did not
change at all. Despite efforts by officials in the Office of the Secretary
of Defense to ensure the accuracy, completeness, and consistency of data
reported, the data were still subject to some uncertainties because of
limitations in databases from which the data were obtained. As data were
submitted, they were reviewed for any obvious inconsistencies and potential
errors.
For example, where post- study costs appeared greater than pre- study costs,
data were rechecked to correct or validate the numbers. In the few cases
where current costs actually exceeded pre- study (baseline) costs, the
components were asked to provide detail to support the figures. 6 However,
the data provided by the Defense components were generally taken from their
Commercial Activities Management Information System (CAMIS), the database
the components use to record the results of their competitive
sourcing program. Each service and Defense agency maintains its own version
of CAMIS, although each system must contain DOD's required minimum set of
data elements for individual A- 76 competitions. Elements include numbers
and length of individual competitions, numbers of military and in- house
civilian positions affected, in- house and contractor estimated
costs, cost comparison decision dates, and changes in costs for 5 years 6
Post- study costs could be greater because of changes made in scope of work.
after a contract award. DOD also requires each component to enter the
original manpower baseline cost of the function and the estimated dollar
savings from each of the competitions into CAMIS and track actual costs from
the completed competitions for 5 years. We have previously reported concerns
about the accuracy and
completeness of data contained in CAMIS. As early as 1990, we stated that
CAMIS contained inaccurate and incomplete data. 7 In a 1996 report, the
Center for Naval Analyses also found that the data in CAMIS were incomplete
and inconsistent among the services and recommended that the data collection
process be more tightly controlled so that data would be consistently
recorded. 8 As recently as August 2000, 9 we continued to find that CAMIS
did not always record information on completed competitions or reported
incomplete or incorrect information. The exclusion of 53 studies because of
incomplete data illustrates this point. While DOD
officials initiated steps this year to improve the accuracy and completeness
of data included in CAMIS, those actions are generally oriented to reporting
on future A- 76 studies, not those completed in prior years. However, a DOD
official recently told us that, whenever possible, historical data would be
completed or corrected.
Defense officials told us that components used more complete and up- to-
date information where available to supplement information contained in
their CAMIS databases in providing information for the
section 8109 report. To what extent that may have resolved shortcomings
associated with CAMIS data is uncertain. However, we compared selected
supplemental information for about 50 studies we had obtained in
completing other recent reviews involving A- 76 issues and found it
consistent with information contained in the Department's section 8109
report. 7 OMB Circular A- 76: DOD's Reported Savings Figures Are Incomplete
and Inaccurate (GAO/ GGD- 90- 58, Mar. 15, 1990). 8 An Examination of the
DOD Commercial Activities Competition Data (Center for Naval
Analyses CIM 472, Dec. 1996). 9 DOD Competitive Sourcing: Savings Are
Occurring, but Actions Are Needed to Improve Accuracy of Savings Estimates
(GAO/ NSIAD- 00- 107, Aug. 8, 2000).
DOD Restated Existing In responding to the section 8109 requirement to
present recommendations Policy Guidance Concerning for maximizing the
possibility of effective public- private competition for Public- Private
Competitions
work that has been contracted out, the Department reiterated existing of
Contracted Work
policy guidance on the subject. That guidance provides Defense components
with the option of performing cost comparisons on contracted work as
appropriate. The A- 76 Supplemental Handbook states that work
that has been contracted will continue to be contracted “as long as
the quality of service is acceptable and competitive prices are fair and
reasonable.”
Of the 286 A- 76 studies that were identified in the Department's section
8109 report, 8 were conducted where precompetition performance was carried
out by a contractor. 10 Of the eight studies, five resulted in work being
transferred in- house and three with work remaining with contractors.
Estimates of Overall In addition to the data required in its section 8109
report, DOD presented
Savings and information on cost savings resulting from the A- 76 studies and
on the extent to which competitions were won by the government or private
Competition Winners sector. The Department reported that costs were reduced
by about
Can Vary 39 percent, yielding an estimated $290 million savings in fiscal
year 1999.
While our prior work indicates that A- 76 studies produce savings-
regardless of whether the competitions are won by the government or the
private sector- various factors make it difficult to estimate savings as
precisely as DOD has suggested. Additionally, the Department's report
indicated that overall, 40 percent of the cost comparison studies completed
over the multiyear period covered by its report resulted in contract
decisions. At the same, data included in the report also show that for
fiscal year 1999, only about 23 percent of the cost comparisons resulted in
contract performance- most by the Air Force. Time did not permit us to fully
assess the reason for the difference during the past year.
Estimates of Savings Are DOD calculated the savings by taking the difference
between pre- study
Imprecise estimated operating cost and estimated current cost of performing
the
function in fiscal year 1999, mostly from data in CAMIS data systems. While
10 DOD was not required to report on instances where contracted work was
subjected to recompetition limited to the private sector.
this provides an indication of savings, a variety of factors indicate that
it is an imprecise one. First, at the time these studies were begun, DOD had
not yet issued any official guidance on calculating estimated costs of
current operations. 11 As a result, baseline costs were sometimes calculated
using an average cost of salary and benefits rather than the actual cost,
and by using the number of authorized positions rather than using the number
of positions actually filled. Also, baseline cost estimates were based
largely on
personnel costs, even though up to 15 percent of the costs associated with
the government's most efficient organization or contractor costs were not
personnel costs. Second, as we have previously reported, while A- 76 studies
can produce significant savings, the costs of conducting the studies and
implementing the results must be offset before net savings begin to accrue.
DOD's savings estimate did not take into consideration the cost of
conducting and
implementing the results of the A- 76 studies, which particularly affects
recently completed studies since there has not been sufficient time to
offset these costs. Almost half of the cost comparison studies included in
DOD's report were completed in 1999 and 2000. Third, DOD relied primarily on
baseline and current cost information from the CAMIS database. We have
already described some of the problems inherent in that system, and our
prior work indicates that CAMIS provides an inadequate basis for tracking
savings. During prior reviews, we found that CAMIS did not accurately track
baseline costs or reasons for contract changes and did not contain accurate
and complete data on items such as program implementation or contract
administration costs. We found that data, once captured in CAMIS, were not
modified to reflect changes in or
even termination of contracts. We also found that CAMIS did not always
record completed competitions, sometimes incorrectly indicated that
competitions were completed where they had not yet begun or were still
underway, and, in some cases, data were not adjusted and removed from
the system even when bases were closed or realigned. DOD officials have
recognized significant limitations in CAMIS and are in the process of
improving the data systems to address previously identified weaknesses, as
well as developing mechanisms intended to better track 11 DOD issued
guidance in September 1999 to standardize the database used for capturing
the results of A- 76 cost comparison studies, emphasizing how the baseline
cost of an activity should be determined in conjunction with A- 76 studies.
costs in response to legislative requirements. However, as with other
changes previously noted, these changes are primarily oriented to future
rather than previous studies.
Percentage of Government As part of its section 8109 report, the Department
provided information on
and Contract Wins Fluctuate whether work was being performed by in- house or
contract employees.
Over Time The report stated that 40 percent of the cost comparison studies
resulted in
decisions to contract with the private sector. 12 At the same time, the
report data also show that in fiscal year 1999, only 23 percent (13 studies)
of the cost comparisons completed resulted in conversion to contract
performance- all but 3 studies occurring in the Air Force. 13 This is
significantly lower than in other recent years where in most years
contractors won a majority of the competitions. The mandated time frame for
this report did not permit us to fully assess the reason for the more
significant difference during the past year.
Agency Comments and The Deputy Under Secretary of Defense (Installations)
provided written
Our Evaluation comments on a draft of this report. Overall, the Department
agreed with the
report. The Department acknowledged weaknesses in its database used to
record information from A- 76 studies and noted efforts being made to
improve the accuracy of data for future A- 76 cost studies. At the same
time, the Department expressed belief that existing data and various study
efforts, including recent studies by RAND and the Center for Naval Analyses,
are sufficient to affirm that savings from A- 76 studies are
substantial and sustained over time. While we have not yet had the
opportunity to review the RAND and Center for Naval Analyses reports, we
agree and have reported that significant savings are being realized.
However, we have also noted that savings from A- 76 studies may not be as
great as projected by DOD in the short term because of a variety of factors,
including data limitations, delays in completing planned studies, and
insufficient consideration of costs associated with completing and
implementing the results of the studies. Our efforts to track A- 76 study
12 Our prior report on A- 76 studies completed between 1995 and 1998 showed
that 60 percent of the cost comparisons were won by the private sector. See
DOD Competitive Sourcing: Results of Recent Competitions (GAO/ NSIAD- 99-
44, Feb. 23, 1999).
13 If the results of the excluded additional 53 studies are considered, the
percentage of studies resulting in contractor performance would be 27
percent.
results indicate that savings may be sustained over time but we have noted
that the level of savings will be difficult to track in the long term
because workload requirements change, affecting program costs and the
baseline from which savings are calculated. Nevertheless, efforts to improve
the
accuracy of data on savings from A- 76 studies at the time the studies are
completed are warranted, as are efforts to assess savings over time. Both
are key to establishing more reliable savings estimates and improving the
credibility of the A- 76 program amidst continuing questions in Congress and
elsewhere.
The Department also provided some technical comments, which were
incorporated in the report as appropriate. The Department's comments are
included in appendix II.
Scope and During our review, we met with officials in the Office of the
Secretary of Methodology
Defense to determine their process for obtaining data from the services and
Defense agencies for completing the section 8109 report and for ensuring the
accuracy and completeness of the data reported. We relied heavily on our
prior reviews examining DOD's A- 76 program, including its databases used to
record information on completed A- 76 studies (a list of our related
products is included at the end of this report). We compared information
contained in the Department's report with information we had previously
obtained on individual components from 53 A- 76 studies as part of our other
reviews. We also obtained and compared component back- up data for an
additional 18 studies included in DOD's report. We selected the 18
additional studies to expand our existing data more evenly across the
military services and Defense agencies. We analyzed the data for an
additional 53 completed studies not included in the Department's report to
Congress to determine how significantly their inclusion would affect the
summary results.
We met with officials from the Office of the Secretary of Defense; the
Departments of the Army, the Navy, and the Air Force; the Marine Corps; and
the Defense Finance and Accounting Service regarding A- 76 studies
they conducted. We performed our review from August through October 2000 in
accordance with generally accepted government auditing standards.
We are providing copies of this report to Senator Daniel Inouye, Ranking
Minority Member, Subcommittee on Defense, Senate Committee on
Appropriations; and Representatives Jerry Lewis, Chairman, and John P.
Murtha, Ranking Minority Member, Subcommittee on Defense, House Committee on
Appropriations. We are also sending copies of this report to the Honorable
William S. Cohen, Secretary of Defense; the Honorable Louis Caldera,
Secretary of the Army; the Honorable F. W. Peters, Secretary of the Air
Force; the Honorable Richard Danzig, Secretary of the Navy; and
the Honorable Jacob Lew, Director, Office of Management and Budget. Copies
will be made available to others upon request.
If you have any questions regarding this report, please contact me on (202)
512- 5581. Other key contributors to this assignment were Marilyn Wasleski
and Debra McKinney.
Barry W. Holman Director, Defense Capabilities and Management
Appendi xes Section 8109 of the Department of Defense
Appendi x I
Appropriations Act, 2000 SEC. 8109. (a) REPORT ON OMB CIRCULAR A- 76 REVIEWS
OF WORK PERFORMED BY DOD EMPLOYEES.- The Secretary of Defense shall submit a
report not later than 90 days after the enactment of this Act which lists
all instances since 1995 in which missions or functions of the Department of
Defense have been reviewed by the Department of Defense pursuant to OMB
Circular A- 76. The report shall list the disposition of each
such review and indicate whether the review resulted in the performance of
such missions or functions by Department of Defense civilian and military
personnel, or whether such reviews resulted in performance by contractors.
The report shall include a description of the types of missions or
functions, the locations where the missions or functions are performed, the
name of the contractor performing the work (if applicable), the cost to
perform the missions or functions at the time the review was conducted, and
the current cost to perform the missions or functions.
(b) REPORT ON OMB CIRCULAR A- 76 REVIEWS OF WORK PERFORMED BY DOD
CONTRACTORS.- The report shall also identify those instances in which work
performed by a contractor has been converted to performance by civilian or
military employees of the Department of
Defense. For each instance of contracting in, the report shall include a
description of the types of work, the locations where the work was
performed, the name of the contractor that was performing the work, the cost
of contractor performance at the time the work was contracted in, and
the current cost of performance by civilian or military employees of the
Department of Defense. In addition, the report shall include recommendations
for maximizing the possibility of effective public- private competition for
work that has been contracted out.
(c) COMPTROLLER GENERAL REVIEW.- Not later than 90 days after the date on
which the Secretary submits the annual report, the Comptroller General shall
submit to the House and Senate Committees on
Appropriations the Comptroller General's views on whether the department has
complied with the requirements for the report.
Appendi x II Comments From the Department of Defense
Related GAO Products DOD Competitive Sourcing: More Consistency Needed in
Identifying Commercial Activities (GAO/ NSIAD- 00- 198, Aug. 11, 2000).
DOD Competitive Sourcing: Savings Are Occurring, but Actions Are Needed to
Improve Accuracy of Savings Estimates (GAO/ NSIAD- 00- 107, Aug. 8, 2000).
DOD Competitive Sourcing: Some Progress, but Continuing Challenges Remain in
Meeting Program Goals (GAO/ NSIAD- 00- 106, Aug. 8, 2000).
Competitive Contracting: The Understandability of FAIR Act Inventories Was
Limited (GAO/ GGD- 00- 68, Apr. 14, 2000).
DOD Competitive Sourcing: Potential Impact on Emergency Response Operations
at Chemical Storage Facilities Is Minimal (GAO/ NSIAD- 00- 88, Mar. 28,
2000).
DOD Competitive Sourcing: Plan Needed to Mitigate Risks in Army Logistics
Modernization Program (GAO/ NSIAD- 00- 19, Oct. 04, 1999).
DOD Competitive Sourcing: Air Force Reserve Command A- 76 Competitions (GAO/
NSIAD- 99- 235R, Sept. 13, 1999).
DOD Competitive Sourcing: Lessons Learned System Could Enhance A- 76 Study
Process (GAO/ NSIAD- 99- 152, July 21, 1999). Defense Reform Initiative:
Organization, Status, and Challenges (GAO/ NSIAD- 99- 87, Apr. 21, 1999).
Quadrennial Defense Review: Status of Efforts to Implement Personnel
Reductions in the Army Materiel Command (GAO/ NSIAD- 99- 123, Mar. 31,
1999).
Defense Reform Initiative: Progress, Opportunities, and Challenges (GAO/ T-
NSIAD- 99- 95, Mar. 2, 1999). Force Structure: A- 76 Not Applicable to Air
Force 38th Engineering Installation Wing Plan (GAO/ NSIAD- 99- 73, Feb. 26,
1999).
Future Years Defense Program: How Savings From Reform Initiatives Affect
DOD's 1999- 2003 Program (GAO/ NSIAD- 99- 66, Feb. 25, 1999) .
DDOD Competitive Sourcing: Results of Recent Competitions (GAO/ NSIAD- 99-
44, Feb. 23, 1999).
DOD Competitive Sourcing: Questions About Goals, Pace, and Risks of Key
Reform Initiative (GAO/ NSIAD- 99- 46, Feb. 22, 1999).
OMB Circular A- 76: Oversight and Implementation Issues (GAO/ T- GGD- 98-
146, June 4, 1998). Quadrennial Defense Review: Some Personnel Cuts and
Associated Savings May Not Be Achieved (GAO/ NSIAD- 98- 100, Apr. 30, 1998).
Competitive Contracting: Information Related to the Redrafts of the Freedom
From Government Competition Act (GAO/ GGD/ NSIAD- 98- 167R, Apr. 27, 1998).
Defense Outsourcing: Impact on Navy Sea- Shore Rotations (GAO/ NSIAD- 98-
107, Apr. 21, 1998) Defense Infrastructure: Challenges Facing DOD in
Implementing Defense Reform Initiatives (GAO/ T- NSIAD- 98- 115, Mar. 18,
1998).
Defense Management: Challenges Facing DOD in Implementing Defense Reform
Initiatives (GAO/ T- NSIAD/ AIMD- 98- 122, Mar. 13, 1998).
Base Operations: DOD's Use of Single Contracts for Multiple Support Services
(GAO/ NSIAD- 98- 82, Feb. 27, 1998). Defense Outsourcing: Better Data Needed
to Support Overhead Rates for A- 76 Studies (GAO/ NSIAD- 98- 62, Feb. 27,
1998).
Outsourcing DOD Logistics: Savings Achievable But Defense Science Board's
Projections Are Overstated (GAO/ NSIAD- 98- 48, Dec. 8, 1997).
Financial Management: Outsourcing of Finance and Accounting Functions (GAO/
AIMD/ NSIAD- 98- 43, Oct. 17, 1997). Base Operations: Contracting for
Firefighters and Security Guards (GAO/ NSIAD- 97- 200BR, Sept. 12, 1997).
Terms Related to Privatization Activities and Processes (GAO/ GGD- 97- 121,
July 1997).
Defense Outsourcing: Challenges Facing DOD as It Attempts to Save Billions
in Infrastructure Costs (GAO/ T- NSIAD- 97- 110, Mar. 12, 1997). Base
Operations: Challenges Confronting DOD as It Renews Emphasis on Outsourcing
(GAO/ NSIAD- 97- 86, Mar. 11, 1997).
Public- Private Mix: Effectiveness and Performance of GSA's In- House and
Contracted Services (GAO/ GGD- 95- 204, Sept. 29, 1995).
Government Contractors: An Overview of the Federal Contracting- Out Program
(GAO/ T- GGD- 95- 131, Mar. 29, 1995). Government Contractors: Are Service
Contractors Performing Inherently Governmental Functions (GAO/ GGD- 92- 11,
Nov. 18, 1991). OMB Circular A- 76: Legislation Has Curbed Many Cost Studies
in Military Services (GAO/ GGD- 91- 100, July 30, 1991).
OMB Circular A- 76: DOD's Reported Savings Figures Are Incomplete and
Inaccurate (GAO/ GGD- 90- 58, Mar. 15, 1990).
(709540) Lett er
GAO United States General Accounting Office
Page 1 GAO- 01- 20 DOD Competitive Sourcing
Contents Letter 3 Appendixes Appendix I: Section 8109 of the Department of
Defense
Appropriations Act, 2000 16 Appendix II: Comments From the Department of
Defense 17
Related GAO Products 18
Abbreviations
CAMIS Commercial Activities Management Information System DOD Department of
Defense OMB Office of Management and Budget
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Appendix I
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Appendix II
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Related GAO Products Page 19 GAO- 01- 20 DOD Competitive Sourcing
Related GAO Products Page 20 GAO- 01- 20 DOD Competitive Sourcing
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