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<classification authority="sudocs">GA 1.13:T-GGD-96-169</classification>
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 <title>Federal Contracting: Comments on S. 1724, the Freedom From Government Competition Act</title>
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<abstract>GAO discussed S. 1724, the Freedom From Government Competition Act,
which would require that the government procure from the private sector
the goods and services it needs to carry out its functions. GAO noted
that: (1) the amount of government contracting is already extensive, and
most government agencies rely heavily on contractors to provide
commercial services; (2) the proposed act would greatly increase the
proportion of government activity carried out by private contractors;
(3) the three exceptions to the act&apos;s goal of promoting private
contracting occur when the goods or services are inherently
governmental, government performance is needed to protect national
security, or commercial practices cannot fulfill unique agency
requirements; (4) the nondiscretionary nature of the proposed act would
settle most of the disagreement over private contracting; (5) a number
of other considerations need to be addressed, including the utility of
retaining some government services to use as benchmarks for evaluating
contractors, whether some government services are less costly than
contracting, whether adequate competition exists, and whether the
leasing of public facilities should be retained; (6) increasing federal
contracting may overwhelm federal workload capacities and be very
optimistic; and (7) persistent contract management problems and federal
downsizing may also adversely affect the government&apos;s ability to
increase and adequately monitor federal contracting.</abstract>
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<note>Testimony</note>
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