Reasons for OMB Circular A-76 contract cost increases for U.S. Coast Guard activities and perceptions of the USCG A-76 program

Abstract

OMB Circular A-76 (Contracting out Commercial Activities) is a controversial program which directs the Government to relay on the private sector for commercial services when evaluated cost is lower in the private sector. Many A-76 contracts experience cost increases after contract award. An earlier study of three USCG A-76 contracts showed that Department of Labor (DOL) wage determinations and added work caused cost increases, but the contracts were still cost effective. This thesis updated the earlier study of three activities and analyzed three additional USCG commercial activities to see of DOL wage determinations, added work, or additional factors caused cost increases, and what the Coast Guard contracting officer could do to control them. In addition, contract costs were compared with the Government's Most Efficient Organization (MEO) for each activity to see if Government savings were still being realized. There are problems in the implementation of A-76 that may be associated with the perceptions of its effectiveness. To gauge USCG perceptions of the effectiveness of A-76, interviews were conducted with USCG leaders from units with 'contracted-out' commercial activities. These were compared with interviews conducted with leaders from units that had the functions remaining in-house