OMB to send contracting report to Congress

A report on competitive contract sourcing that will be sent to Capitol Hill next week will offer a detailed look at best-value tradeoffs that Congress has limited in recently passed legislation.

The Office of Management and Budget wants to convince lawmakers that the tradeoffs are good, Matthew Blum, OMB’s associate administrator for competitive sourcing, said at a Federal Sources Inc. breakfast meeting today.

For contracts awarded in fiscal 2005, competitive sourcing is projected to save $3.1 billion over the next five to 10 years, Blum said. The savings will come from more than lowered labor costs. They will also be generated through work consolidation, process re-engineering, workforce realignment, better use of technology and lower contractor support costs.

Projected savings could total $5.6 billion over the next five to 10 years, Blum said. Moreover, one-time, out-of-pocket expenses totaled $210 million, which would be a $27 return for each $1 spent, he said.

Federal employees fared well in competitive-source contracting. They received 80 percent of the work during fiscal years 2003 to 2005, Blum said.

OMB will track results from future competitions to monitor trends and promote successes while fixing the problems. The information gathered will build on current reporting requirements.

Blum said the Bush administration also wants results. OMB wants to establish internal processes to independently validate results from competitions and to focus on best practices for accountability afterward.

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