OMB says A-76 will save $1.4b over five years
- By Jason Miller
- Jun 17, 2005
Public-private competitions for agency IT positions garnered expected savings of more than $36,000 per position studied in fiscal 2004, according to the administration's latest report to Congress on competitive sourcing.
Agencies opened 2,207 full-time IT positions to competition with the private sector under Office of Management and Budget Circular A-76, the agency said earlier this month.
The report said agencies overall competed 12,573 positions last year, and federal workers won 91 percent of the competitions. OMB said agencies expect to save $1.4 billion over the next five years.
The analysis found that, for all positions, agencies could expect to save an average of $22,000 per position studied; and with competitions involving two or more private-sector companies, the savings increased to $32,000.
The American Federation of Government Employees criticized OMB's claims of cost savings.
'If only OMB devoted as much time to ensuring agencies accurately track the costs of conducting privatization reviews as it did trumpeting wholly projected and completely unverified savings estimates,' said John Threlkeld, a legislative representative for AFGE. 'OMB has historically underestimated the costs of conducting privatization reviews.
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