Dod Competitive Sourcing Some Progress But Continuing Challenges Remain In Meeting Program Goals PDF Download

Since 1995, the Department of Defense has had a significant effort under way to use competitive sourcing under Office of Management and Budget Circular A-76 to achieve greater organizational efficiencies and reduce operating costs. In accordance with guidance contained in the circular, Defense components perform studies to determine whether it would be more cost efficient to maintain commercial activities in-house or contract with the private sector for their performance. The Department has recently subsumed its A-76 program under a broader initiative referred to as strategic sourcing, expanding the number of positions to be studied and savings expected to be realized. The concept of strategic sourcing extends to activities that are considered to be inherently governmental and involve a wide range of options, including restructuring or reengineering of activities, privatization, and the termination of obsolete services or programs. The strategic sourcing approach provides for a complete functional or organizational assessment of functions and activities, but initially does not involve competition between the public and private sectors. However, a function may become a candidate for A-76 study after being reviewed under the strategic sourcing program. You asked us to review the Department's progress in implementing its A-76 program and the impact of strategic sourcing on the program. Accordingly, we assessed (1) progress the Department has made in achieving its A-76 goals and the extent to which strategic sourcing is affecting these goals and (2) the extent to which savings from A-76 and strategic sourcing are likely to be achieved.