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Outsourcing in the U.S. Military
Examples, Problems
And Prospects
A-76 Memorandum
• Dates back to 1955
• Preference for private companies
• Relative to government’s commercial
activities
• Prohibits “inherently governmental work”
1990’s Policies Favors
Outsourcing
• Al Gore’s Reinventing Government
• Slogans of “Better, Faster, Cheaper”
• Federal Agencies Inventory Reform Act
• (FAIR ACT) under Pres. Clinton
• Targets for outsourcing set
Acquisition Streamling Rules –
1990’s under Pres. Clinton
• Federal Acquisition Streamlining Act
• (FASA)
• Federal Acquisition Reform Act
• (FARA)
• Information Technology Management
Reform Act
• (ITMRA) aka Clinger Cohen Act
Military Case Studies
• Guam Navy Base Facilities Management
• Pensacola Navy Base Facilities
Management
• Military Base Housing- Hawaii
Guam Navy Base Facilities
Management
Contract Award Saved Govt $250M
Started as Public Works Center
Funded by Working Capital Fund
Expanded to Include all base activities
Fixed Price Contract type
Government proposal Most Effective Org.
was cost-plus (pay as you go)
Implications for Military
Personnel
• Former base jobs converted to “trigger-
pulling jobs”
• Anxiety
• Transfers to front-lines
Military Base Housing
Outsourcing
• Base Housing no longer provided free of
charge
• Does contractor have to comply with Davis-
Bacon Act?
• Relocation of military personnel to “front-
lines”
President’s Management Agenda
(PMA)
• President Bush’s Administration
• Renamed outsourcing to “competitive
sourcing”
• Eliminated many “inherently governmental
provisions”
• Follows on to further the FAIR act
• Supports commercial enterprise to provide
government services
Examples
• Federal Acquisition Institute
• Guards in National Parks Privatized
• Governmental activities in targeted areas
• Spans Many Agencies

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Outsourcing in the U[1].S. Military

  • 1. Outsourcing in the U.S. Military Examples, Problems And Prospects
  • 2. A-76 Memorandum • Dates back to 1955 • Preference for private companies • Relative to government’s commercial activities • Prohibits “inherently governmental work”
  • 3. 1990’s Policies Favors Outsourcing • Al Gore’s Reinventing Government • Slogans of “Better, Faster, Cheaper” • Federal Agencies Inventory Reform Act • (FAIR ACT) under Pres. Clinton • Targets for outsourcing set
  • 4. Acquisition Streamling Rules – 1990’s under Pres. Clinton • Federal Acquisition Streamlining Act • (FASA) • Federal Acquisition Reform Act • (FARA) • Information Technology Management Reform Act • (ITMRA) aka Clinger Cohen Act
  • 5. Military Case Studies • Guam Navy Base Facilities Management • Pensacola Navy Base Facilities Management • Military Base Housing- Hawaii
  • 6. Guam Navy Base Facilities Management Contract Award Saved Govt $250M Started as Public Works Center Funded by Working Capital Fund Expanded to Include all base activities Fixed Price Contract type Government proposal Most Effective Org. was cost-plus (pay as you go)
  • 7. Implications for Military Personnel • Former base jobs converted to “trigger- pulling jobs” • Anxiety • Transfers to front-lines
  • 8. Military Base Housing Outsourcing • Base Housing no longer provided free of charge • Does contractor have to comply with Davis- Bacon Act? • Relocation of military personnel to “front- lines”
  • 9. President’s Management Agenda (PMA) • President Bush’s Administration • Renamed outsourcing to “competitive sourcing” • Eliminated many “inherently governmental provisions” • Follows on to further the FAIR act • Supports commercial enterprise to provide government services
  • 10. Examples • Federal Acquisition Institute • Guards in National Parks Privatized • Governmental activities in targeted areas • Spans Many Agencies