Commenting on the report released today by the Office of Management and Budget (OMB) on competitive sourcing Chris Jahn, President of Contract Services Association of America, said, This report proves what CSA has advocated all along. When the private sector competes, taxpayers win.
OMB's report states that competitive sourcing makes the government more efficient and in the process saves taxpayer money. The report studied more than 650 commercial activities completed in FY03, and several competitions completed in the first quarter of FY04.
The report states, This activity has generated a projected net savings of $1.1 billion, to be achieved over the next three to five years. This equates to a net savings of about $12,000 per full-time equivalent employee (FTE) competed, or a cost reduction (avoidance) of approximately 15 percent.
Jahn also stressed, CSA is concerned about all of the legislative restrictions being placed on public-private competitions hampering the federal agencies abilities to save the government money.
However, Jahn noted concerns regarding federal agencies' implementation of the competitions where the government-in-house team has won 89 percent of all the streamlined and standard competitions. The deck is being stacked against private companies. At some point, if these competitions continue to be drastically one-sided, the private sector will stop playing. The taxpayer will be the loser in the long run.
Copies of Competitive
Sourcing: Report on Competitive Sourcing Results, Fiscal
Year 2003 can be found on OMB's website at www.results.gov or www.omb.gov.