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<classification authority="sudocs">GA 1.13:T-GGD-97-185</classification>
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 <subject>Proposed legislation</subject>
 <subject>Privatization</subject>
 <subject>Competitive procurement</subject>
 <subject>Strategic planning</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>Contract monitoring</subject>
 <subject>State and local procurement</subject>
 <subject>Procurement regulation</subject>
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 <identifier>Georgia</identifier>
 <identifier>Massachusetts</identifier>
 <identifier>Michigan</identifier>
 <identifier>New York</identifier>
 <identifier>Virginia</identifier>
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<titleInfo>
 <title>Privatization and Competition: Comments on H.R. 716, the Freedom From Government Competition Act</title>
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<abstract>GAO discussed H.R. 716, the Freedom From Government Competition Act, as
a potential vehicle for competitive contracting, using the results of
GAO&apos;s recent work on privatization initiatives at the state and local
government levels.&lt;p/&gt;GAO noted that: (1) on the basis of GAO&apos;s literature review,
privatization experiences and lessons learned by state and city
governments in implementing privatization efforts, the views of a panel
of privatization experts, and GAO&apos;s work in Georgia, Massachusetts,
Michigan, New York, and Virginia, as well as the city of Indianapolis,
GAO identified six lessons that were generally common to all six
governments; (2) in general, the governments found that they needed to:
(a) have committed political leaders to champion the privatization
initiative; (b) establish an organizational and analytical structure to
implement the initiative; (c) enact legislative changes and/or reduce
resources available to government agencies to encourage greater use of
privatization; (d) develop reliable and complete cost data on government
activities to assess their performance, support informed privatization
decisions, and make these decisions easier to implement and justify to
potential critics; (e) develop strategies to help their workforces make
the transition to a private-sector environment; and (f) enhance
monitoring and oversight to evaluate compliance and performance and
ensure that the government&apos;s interests are fully protected; (3) H.R. 716
provides a tool but not a substitute for a political champion; (4) H.R.
716 would establish a flexible implementation structure; (5)
implementation of H.R. 716 would be helped by integrating it with
agencies&apos; strategic and performance planning activities; (6) incentives
may be needed for implementing change; (7) the relationship of H.R. 716
to other relevant laws is unclear; (8) reliable and complete cost
information is needed for privatization decisions; (9) H.R. 716
recognizes federal workforce transition needs; (10) effective monitoring
and oversight of contractor performance are essential to successful
privatization; and (11) the Freedom From Government Competition Act
would redirect current policy, which does not now have the weight of
legislative authority and significantly affect the operation and
management of the federal government.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Proposed legislation</topic>
 <topic>Privatization</topic>
 <topic>Competitive procurement</topic>
 <topic>Strategic planning</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Contract monitoring</topic>
 <topic>State and local procurement</topic>
 <topic>Procurement regulation</topic>
 <topic>Federal procurement</topic>
 <topic>Georgia</topic>
 <topic>Massachusetts</topic>
 <topic>Michigan</topic>
 <topic>New York</topic>
 <topic>Virginia</topic>
 <topic>Indianapolis (IN)</topic>
 <topic>Joint Financial Management Improvement Program</topic>
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