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 <subject>Accountability</subject>
 <subject>Competition</subject>
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 <subject>Defense Reform Initiative</subject>
 <subject>OMB Circular A-76 Program</subject>
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<titleInfo>
 <title>Competitive Sourcing: Challenges in Expanding A-76 Governmentwide</title>
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<abstract>The Department of Defense (DOD) has been at the forefront of
federal agencies in using the OMB Circular A-76 process. In 1995,
DOD made the process a priority to reduce operating costs and	 
free funds for other priorities. DOD has also augmented the A-76 
program with what it terms strategic sourcing--a broader array of
reinvention and reengineering options that may not necessarily	 
involve A-76 competitions. The number of positions--at one point 
229,000--that DOD planned to study and the time frames for the	 
studies have varied. Current plans are to study approximately	 
183,000 positions between fiscal years 1997 and 2007. Changes in 
the inventory of commercial activities and the current		 
administration&apos;s sourcing initiatives could change the number of 
positions studied in the future. However, GAO has not evaluated  
the extent to which these changes might occur. DOD has faced a	 
number of challenges with its A-76 program that may produce	 
valuable lessons learned for other federal agencies that use the 
A-76 process. These include: (1) studies took longer than	 
initially projected, (2) costs and resources required for the	 
studies were underestimated, (3) selecting and grouping functions
to compete can be difficult, and (4) determining and maintaining 
reliable estimates of savings were difficult. Federal managers,  
government workers, and private sector representatives have	 
expressed concern about the A-76 study process. The Commercial	 
Activities Panel is studying and has held public hearings about  
the policies and procedures, including the A-76 process, and the 
transfer of commercial activities from government personnel to	 
contractors. The panel, comprised of federal and private sector  
experts, is required to report its findings and recommendations  
to Congress by May 2002.</abstract>
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<identifier type="preferred citation">GAO-02-498T</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Accountability</topic>
 <topic>Competition</topic>
 <topic>Service contracts</topic>
 <topic>Defense Reform Initiative</topic>
 <topic>OMB Circular A-76 Program</topic>
</subject>
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  <title>United States Public Law 270 (105th Congress)</title>
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