An Analysis of Industry Perspective on the Recent Changes to the Circular A-76

Abstract

The United States Federal Government spends greater than $150 billion every year on services, making it one of the world's largest purchasers. Because of the large monetary value and the vast number of public- and private-sector jobs involved, the decision of who is the best provider of these services is an important and often highly-charged issue. This article intends to improve understanding of the significance of the recent changes made to the A-76 process, and to offer insight into industry's perspective gained through a recently-conducted interview on the revised process. Although empirical results of these recent changes are months, if not years away, several improvement recommendations will be offered towards fully achieving efficient and effective competition between public and private sources. Much has been written on the processes contained in the Office of Management and Budget's Circular A-76 entitled, Performance of Commercial Activities. Indeed, a recent database search at the Naval Postgraduate School library in Monterey, California revealed 19 Master's theses pertaining directly to the subject matter, and another bevy of information documented by various government officials and heads of agencies concerning recent changes to the process. Current events, too, have kept discussions surrounding commercial outsourcing in the forefront of many researchers minds. As recently as February 2004, for example, debate swirled around the issue of whether or not private-sector companies under contract with the United States Government should be permitted to sub-contract with foreign countries. With these recent developments in mind, and in spite of the preexistence of voluminous content, there is still a prevalent need to get the word out regarding recent changes made to the Circular.