NCMA 24th Annual Government Contract Management Conference

1
(No Transcript)
2
Using A-76 to achieve the best results for the
taxpayer
Breakout Session Competitive Sourcing Cathy
Garman Senior Vice President, Contract Services
Association (703-243-2020 cathy_at_csa-dc.org) Date
December 6, 2005 Time 1120a.m. -1230p.m.
3
A-76 A Historical Perspective

• Performance of Commercial Activities
• In the process of governing, the Government
  should not compete with its citizens
• National Policy Promulgated in 1955
• OMB A-76 Circular issued in 1966

4
A-76 A Historical Perspective

• Circular revised in 1967, 1979, 1983
• Major revision in 1996
• Detailed outline on how to conduct public-private
  competitions
• Two-step process
• Viewed as unfair by all parties
• Mostly used at Department of Defense (though
  there was a moratorium on DOD use in early 90s)

5
A-76 A Historical Perspective

• Federal Activities Inventory Reform (FAIR) Act
  passed October, 1998
• Mandates Annual Agency Inventories
• Statutory definition of inherently governmental
• Requires review for competing agency commercial
  activities
• Sunshine on agency commercial activities
• Over 900,000 Federal positions identified as
  commercial in nature jobs normally performed by
  the private sector

6
A-76 A Historical Perspective

• Commercial Activities Panel Report (www.gao.gov)
• The FY 01 National Defense Authorization Act
  created a Blue Ribbon Panel to study competitive
  sourcing process and related issues. Industry,
  government, and public sector unions represented
• Unanimous agreement on 10 sourcing principles
• Recommendations focused on providing best value,
  promoting competition, valuing people, moving
  to FAR process
• Provided basis for revisions to A-76 Circular

7
A-76 A Historical Perspective

• Latest Revisions were released on May 29, 2003.
• Initial reactions were split reactions hated by
  public sector unions, industry cautiously
  supportive (implementation is the key) same
  attitude today
• Key Points in Revisions
• Standard competitions shall not exceed 12 months
  intended to provide more reasonable time frame
  for conducting public-private competitions in
  line with normal procurements
• Special streamlined competition (for under 65
  FTEs) not to exceed 90 days
• 10 cost differential maintained for all standard
  competitions eliminated for streamlined (to help
  small business)

8
A-76 A Historical Perspective

• May 2003 A-76 Revisions, cont.
• FAR-like process, based on best value
• Provides for exclusion of government bidder if
  deficient
• Better accountability (for both public and
  private sector winners)
• Performance periods must be the same for the
  agency tender offer and the private sector offers
  minimum of 3 years and a maximum of 5 years for
  standard competitions
• If the in-house tender offer wins, the MEO must
  compete again at the end of the performance
  period, just like under a private sector
  contract. BUT, agency can declare MEO a high
  performing organization and exempt from
  competition for an extra time period

9
A-76 A Historical Perspective

• Legislative Response to Revisions
• One year prohibition on A-76 studies for DOD
  (2004)
• House approved language to prohibit funds to be
  expended to implement revised Circular
• Further restrictions considered in annual
  appropriations bills
• Eliminate streamlined
• Mandated cost differential for all competitions

10
A-76 Recent Results

• Administration favors competition no matter who
  wins (public or private sector)
• OMB studies show significant potential savings
• But will they be fully realized?
• Agencies winning 90 of competitions
• Industry is walking away from A-76 competitions

11
A-76 Why should we still care?

• Benefits of competitive sourcing
• time savings
• cost savings
• project delivery guarantees
• access to new skills
• increased innovation (e.g., a government
  employee with an innovative idea facing
  institutional barriers to change)
• allows agency to focus on core mission
• best value
• risk sharing

12
A-76 Why should we still care?

• Looking at A-76 differently
• Glenn Davidson, President, EquaTerra Public
  Sector and
• Tom Luedtke, Assistant Administrator for
  Procurement, NASA Headquarters