An analysis of industry's perspective on the recent changes to Circular A-76

Abstract

Determining whether to obtain services in-house or through commercial contracts is an important economic and strategic decision for agencies. According to Office of Management and Budget July 2003 estimates, 26 percent of the workforce from agencies being tracked under the President?s Management Agenda are engaged in commercial activities that should be available for competition. In light of the fact that the Department of Defense has achieved greater than 30 percent savings on the roughly 3,000 competitions it has conducted since 1979, there appears to be plenty of room left for harvesting savings [Ref. 1]. Not surprisingly, use of Circular A-76 is expected to grow throughout the federal government.