DoD Inventory of Commercial and Inherently Governmental Activities

1
DoD Inventory of Commercial Inherently
Governmental Activities
Ms Julie Klein DLA J-374 October 26, 2005
2
IG/CA FAIR Link to Competitions

• Goals/Targets for Competitive Sourcing Studies
  were Developed from the FY 2000 Inventory by OSD
• Agencies were Required to Study 50 of their
  Commercial FTEs Reported in that Year by the End
  of FY 2009
• That Number for DLA equated to 9,212 FTEs
• DLA has Conducted 15 Competitions with 4,952
  FTEs Studied to Date
• The Inventory is Directly Linked to Planning
  Competitions Through the Program Budget Review
  (PBR) Process
• Projected Savings Study Plans are Created from
  Commercial Activities Defined in the Inventory
  (R-Coded FTEs)
• The Number of Commercial Positions Reported in
  the Inventory has Steadily Declined Over the
  Years
• As a Consequence, In Each Inventory Cycle, There
  is High Scrutiny for Changes from CA to IG Coding

3
The Process the Changes

• J-374 is Responsible for the Agency Submittal
• We Develop the Guidance the POAM, Field
  Questions, Work Issues, Consolidate Data, Brief
  the Corporate Board, Submit the Final Product
  to OSD
• This Year We Will Ask for 4 Additional Data
  Elements to Include Title, Grade Level, Series,
  Name
• This Will Provide a Significant Enhancement in
  Our Analysis Capability Across the Agency
• This Data is Not Shared Between Organizational
  Elements It is for HQ Use Only in Order to
  Facilitate Consistency is Removed Before Final
  OSD Submittal
• Draft Guidance is in Process Will be Out Next
  Week
• Deadline for Submittal Will Likely be in Late
  December
• Coordination to the Extent Practicable with the
  PBR 08 IPT Effort

Changes in Data Requirements
4
Statistics From Latest Submission
Remember that Approximately 4,900 of those listed
as Commercial in the Submission Have Already Been
Studied
5
DoD Inventory Categories
6
Statistics From Latest Submission

• Of the 23,706 FY04 civilian positions
  inventoried
• 8,401 positions (37 percent) were identified as
  inherently governmental
• 5,822 positions (25.6 percent) were identified as
  exempt
• 8,483 positions (37.4 percent) were identified as
  commercial activities subject to competition

Here is a Breakout of the Criteria Codes Utilized
7
IG/CA - FAIR Connection to Studies

• The Inventory is Flawed
• Despite Good Intentions Much Effort, Many
  Inconsistencies Exist within ALL Inventories (Not
  Just DLA)
• Each Year Requirements, Workload, s of FTEs
  Change
• Organizational Elements use Very Different Coding
  Methodology
• It is a Work-in-Progress
• The Inventory is the Baseline Starting Point
  for the Development of Actual Competitions
• There is no Requirement to Exactly Match the FTE
  Number Projected in the PBRThere is Room for
  Adjustment Based on your Analysis of the
  Functions in Preliminary Planning During Grouping
  Scoping Exercises

8
Inherently Governmental Activities

• According to OMB Circular A-76, An Inherently
  Governmental Activity Is, An Activity That is
  So Intimately Related to the Public Interest As
  to Mandate Performance by Government Personnel
• The Circular Describes Inherently Governmental
  Tasks as Either the Exercise of Sovereign
  Government Authority or the Establishment of
  Procedures Processes Related to the Oversight
  of Monetary Transactions or Entitlements

9
Commercial Activities

• Circular A-76 Defines a Commercial Activity as
  A Recurring Service That Could be Performed by
  the Private Sector is Resourced, Performed,
  Controlled by the Agency Through Performance by
  Government Personnel, a Contract, or A
  Fee-for-Service Agreement
• By Definition, These Activities Are Not So
  Closely Tied to the Public Interest That They
  Require Performance by Government Staff
• Exempt Commercial Activities are Those Deemed Not
  Appropriate for Private Sector Performance
  Pursuant to a Written Determination by the
  Component Competitive Sourcing Official (CCSO) or
  Are Performed by Government Personnel Because of
  a Statutory Prohibition Against Private Sector
  Performance

10
The Bottom Line

• Our Agency has a Commitment to the OSD Target
  There is Pressure to Compete Any Position
  Designated as Commercial . However
• The Reality is an Organization Must Focus on
  Mission First Make Smart Defensible Business
  Decisions
• There is Room for Interpretation in Application
  of the CA/IG Definitions by Design
• Strategic Thinking Organizational Structuring
  Should Occur Early for DLA Elements (At the
  Inventory Point)
• Ask Yourself Consider..
• What is Commonly Competed is Readily Available
  in the Private Sector
• Risk of Competing too Much - Losing Governmental
  Control/Not enough Gov Left for Organizational
  Continuity
• Management Pipeline Who Will be Left to Fill
  Future Management Positions?
• Core Competencies What Skills are Important
  Enough to Retain a Cadre of Employees in Order to
  Maintain Critical Government Expertise
• Each Inventory Provides the Opportunity for
  Adjustment
• Keep in Mind the Scrutiny Factor of CA to IG
  Changes (2), Be Prepared to Justify Your
  Methodology

11
Questions

• QUESTIONS???