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Why is the Fight Against Contracting Out Important?

There is a lot at stake with federal contracting—including accountability, loss of institutional knowledge, oversight and fiscal responsibility. That’s why getting federal contracting under control has been a longtime priority for NTEU. 

The House recently passed a provision in the 2018 Omnibus Appropriations bill that continues a seven-year-old moratorium on public-private competitions at agencies for certain federal jobs under the Office of Management and Budget (OMB) Circular A-76.

Wondering what this means for federal employees and taxpayers? Here are some answers:

What is the OMB Circular A-76, anyway?

OMB Circular A-76 governs the federal contracting process. It sets the policies and procedures that determine whether private contractors may bid on work currently being done by federal employees.

Why does NTEU support a moratorium on A-76 competitions?

The current privatization process is biased against federal workers. The A-76 policies, which          favored private-sector contractors in job competitions, allowed an explosion of contracting and handed over inherently governmental work that should only be done by federal employees.

Why is this an issue for taxpayers?

Taxpayers benefit when the government’s work is performed by trained, experienced civil service employees, who are less costly and more accountable than for-profit contractors. OMB has found that excessive reliance on contractors erodes the in-house ability of agencies to perform their important work for the American people.

What is NTEU’s history on this issue?

NTEU has been a leader in the battle against excessive contracting and was critical of its runaway growth during a previous administration. In 2002, OMB revised its Circular A-76 to significantly tilt it toward the private sector. NTEU took particular issue with the presumption that a government function is commercial in nature unless shown otherwise.

Since then, NTEU successfully pressed for reductions in federal contracting and has supported legislative efforts to reform the entire federal contracting process.

For the past seven years, NTEU has also helped secure moratoriums on A-76 competitions in appropriations bills. Since the moratoriums are in funding bills, they must be renewed annually.

What’s next?

NTEU will continue to press for the moratorium as the 2018 Omnibus Appropriations bill moves to the Senate for consideration. 

NTEU is also persisting in our fight against the Internal Revenue Service program using commission-driven private debt collectors to go after tax debts. See how you can add your voice to our fight.