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Commercial Services Management
A Message About Competitive Sourcing

FAA's Cost Savings Improvements
November 3, 2008 - In February 2005, the Federal Aviation Administration (FAA) awarded a performance-based, fixed-price incentive fee contract for the services provided to general aviation pilots. The contractor modernized how flight services are provided to pilots. Services include pre-and in-flight weather briefings, flight planning assistance, aeronautical notices, and emergency assistance. The contract was awarded as the result of a public-private competition, the largest ever conducted under OMB Circular A-76. View more here

NEW Name: Commercial Services Management Initiative

Agency Reports Show Ongoing Benefits of Public-Private Competition
May 7, 2008 - According to agency reports submitted to Congress at the end of FY 2007, competitive sourcing continues to be an effective tool for improving the government's work efficiency. Improvements set in motion by competitions completed in FY 2007 are expected to generate net savings or cost avoidances of nearly $400 million over the next five years. The aggregate results of agencies' competitive sourcing efforts for FY 2007 and trends over the last five years are discussed in OMB's annual report on competitive sourcing, available at www.omb.gov. View more here

Achieving High Performance
December 31, 2007 - "The Department of Health and Human Services (HHS) and the Department of Energy (DOE) have created high performing organizations (HPOs) through internal reengineering as an alternative to traditional public-private competition. HHS' Centers for Disease Control and Prevention (CDC) reengineered its information technology (IT) infrastructure functions, public health business services and budget execution operations using many of the common-sense management disciplines in Circular A-76 -- including workload measurement, cost analysis, market research and human capital planning -- to create more cost-effective, results-oriented operations. These efforts are enabling CDC to shift significant budget and staffing resources to front-line public health activities, while providing better support services to the agency's science and program work. Total projected savings are expected to exceed $500 million over a five-year period. More than $ 170 million in actual savings have already been realized."

Agencies Move Forward with Independent Validations of Public-Private Competitions
September 30, 2007 - "In the fourth quarter, civilian agencies developed plans to validate savings and performance improvements achieved through public-private competitions. Validations have been planned on more than 70 agency competitions, including awards both to agency "most efficient organizations" (MEOs) and contractors. The competitions selected for validations are projected to produce $3.5 billion in savings for the taxpayer over their full periods of performance."

Use of Public-Private Competition Continues to Focus on Highly Commercial Activities
July 30, 2007 - "Competitions completed and announced during the third quarter of FY 2007 again demonstrated that many agencies are applying competitive sourcing as a management tool to a wide range of highly commercial activities."

OMB Increases Management Attention on Post Competition Accountability
May 1, 2007 - "OMB recently issued guidance to the President's Management Council (PMC) to review the steps required for the successful monitoring of management decisions made through the use of public-private competition."

Savings and Performance Improvements Continue to Grow in FY 2006
January 22, 2007 - "In December, agencies submitted reports to Congress on their competitive sourcing activities for FY 2006. These reports indicate that public-private competition continues to serve as a valuable management tool for bringing cost control and new efficiencies to commercial activities, such as maintenance and property management, logistics, and human resources."

State Department and USAID Leverage the Benefits of Competitive Sourcing PDF
November 16, 2006 - "The Department of State completed its first standard competition -- resulting in award to the most efficient in-house organization (MEO) that will modernize printing and publishing activities for the Department."

Public-Private Competition Helps the Corps of Engineers Improve the Efficiency of Information Technology Support Activities PDF
July 26, 2006 -- "This quarter, the Corps of Engineers completed a command-wide competition for information management and IT functions, including automation, communications, information assurance, records management, and visual information services."
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May 2006 - OMB's "Best Value" Rules Help Improve Government Operations

April 2006 - $3.1 Billion in Savings for Taxpayers

April 2006 - Improving Government Operations through "Best Value" Rules

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Competitive Sourcing General Information
Manager's Guide to Competitive Sourcing
This guide is a compilation of facts, sources, and aids to help you understand the Competitive Sourcing process and its requirements. It is not the definitive source on the subject numerous resources are readily available. The Federal Acquisition Council's objective is not to duplicate those resources, but to enhance and support agency efforts.

Competitive Sourcing: Conducting Public-Private Competition in a Reasoned and Responsible Manner
This OMB Report updates the plans for carrying out the President's Competitive Sourcing Initiative.

Supplement to July OMB Report on the President's Competitive Sourcing Initiative
This supplement to the July OMB report provides additional information on agency competitive sourcing actions, including a government workforce summary and competition plan profile for agencies tracked under the PMA. This supplement also reviews how recent changes to OMB's Circular A-76 (which provides guidance on the use of public-private competition) promotes more accountable and results-oriented actions.

Download A PDF Copy Of PMA
View the President's Management Agenda, an aggressive strategy to achieve the Administration's policy and program goals through reform of federal management and improved program performance.