Competitive Sourcing Background Information

What is Competitive Sourcing?  Why is it being emphasized?

Competitive Sourcing is the process by which commercial-type activities that are currently performed by governmental agencies are evaluated, re-engineered for efficiency, and where appropriate are offered to the private sector for bidding on a competitive basis in order to ensure that customers, stakeholders, and citizens are provided services at the best possible value. Used judiciously, it can be one of the most effective tools for improving the Federal workforce. It is one of the five elements of the President's Management Agenda. Collectively, these five elements are designed to provide better service to the American citizen by improving how government works. Competitive Sourcing can be accomplished using OMB Circular A-76 methodologies but it is not synonymous with A-76. It is not about downsizing, streamlining, contracting out or cost-cutting.

Does Competitive Sourcing mean USDA does not value its employees?

Our employees are our most valued resource.  USDA is implementing the Competitive Sourcing process in accordance with the FY 2002 President’s Management Agenda in order to explore the potential for further improving citizen service and effectiveness. Every effort will be expended to ensure department employees receive fair and equitable treatment during Competitive Sourcing reviews. The President has emphasized the importance for government to change with the times. If changes are carried out appropriately, employees may find they still have jobs and many current workplace frustrations may be tempered because of efficiencies we can realize by working smarter.

Why is USDA engaging in competitive sourcing?

We are always looking for ways to provide better value to our customers. The Federal Activities Inventory Reform Act (FAIR) of 1998 requires that Federal agencies annually provide the OMB and the Congress a list of commercial functions they perform that are not considered inherently governmental. The OMB is requiring all agencies to subject to competition or direct conversion 15% of their commercial functions by the end of fiscal year 2003.

How much will NRCS expect to save from Competitive Sourcing?

Based upon historical data, an average of up to 30 percent savings may result from an A-76 competition.

Are there FTE reduction goals or targets associated with Competitive Sourcing?

No. There are no prejudged FTE reduction goals that management has identified. The focus of competitive sourcing is the efficient and effective delivery of services or products to the customer. Competitive sourcing is a process that implements change. One aspect of an organization that might change is the amount of staff needed to deliver the service or product. The scope and nature of the changes required are a result of the process and are not to be guided by any predetermined expectations.

Does competitive sourcing target blue-collar jobs?

No. Competitive sourcing includes the entire workforce except positions that are determined to be inherently governmental.

Which jobs will be studied under Competitive Sourcing?

The functions and positions to be studied are selected by management officials in consultation with the Department. Factors to be considered when making competitive sourcing decisions include such things as: are there unusually large numbers of vacancies projected for this activity, has the activity already been successfully outsourced within the agency or the Federal government, do private sector sources exist to perform the activity, does the agency currently have a skills gap, technology gap or staffing shortage in the activity, and do budget constraints make outsourcing the activity favorable.

Are all Agencies in USDA participating in competitive sourcing?

Yes.

Will there only be one round of studies?

Updates (May 5, 2003)

Can a WAE position be considered for the Competitive Sourcing study?

Are we required to study all positions performing a given function at the same location?  For example, if a state has 5 positions performing the Clerical Support Function (in series GS-303, 304, 318, 322, and 326) at the State Headquarters office, is it required to study all five positions this year, or can it just study 2 of them?

Logical business unit concepts should be used.  One state defined a business unit as those clerks supporting technical staff versus those supporting management staff. Others have identified units by grade. Still others have used the competitive register and vacancies to define logical business units.