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Washington, D.C.— The Office of Management and Budget (OMB) today announced proposed changes in contracting out rules that would put federal workers and American taxpayers at a great disadvantage when it comes to public-private competition for federal government work.

In announcing draft proposals in the rules governing competitions between the private sector and federal agencies (OMB Circular A-76), OMB said it wants “best value” to replace lowest cost as the driving criteria for determining who should do the work of the federal government.

“This would be a costly mistake for American taxpayers and the federal workforce,” said National Treasury Employees Union President Colleen M. Kelley. “Private contractors could be chosen based on gold-plated proposals and promises to deliver more than they are capable and more than is needed to get the job done at a higher cost. It will end up costing the American taxpayers more than necessary. And it will lead to a systematic dismantling of the federal government’s capability to do the important work the American public wants and deserve.”

Kelley said she is particularly concerned with the OMB proposal focusing on the federal government’s information technology (IT) capabilities.

“Turning the federal government’s vast information system over to the private sector should send up a number of red flags for the Congress and the American public. The instability of the hi-tech sector, with the here-today, gone-tomorrow nature of the industry, should not be ignored. Moreover, there should be great concern with private contractor access to information that the American people have a right to believe will be safeguarded by their government, including tax and financial information,” said Kelley.

The union leader said NTEU continues to believe that the administration is moving headlong down a dangerous path in order to deliver on a presidential campaign promise of opening some 425,000 positions to the private sector, by now targeting all federal jobs.

“These proposed A-76 revisions have everything to do with opening more federal jobs to the private sector and nothing to do with ensuring the federal government and the American taxpayers are getting the best services and programs at the least cost,” said Kelley.

NTEU continues to press for a full accounting of the work currently performed for the government by private contractors.

“The work done by federal employees is well documented,” said Kelley. “The costs are known. There is accountability. Results are measured. What is not known is the true cost and size of the contractor work force, and the quality of the work being done.”

Recent examples of reported failures of private contractors include: Mellon Bank, who last year as a IRS contractor, lost or destroyed more than 70,000 tax documents, including checks totaling more than $1.2 billion; the failure of a private contractor to make planned technology improvements for the federal Thrift Savings Plan; and the federalization of airport security following the failures of private contractors.