Army employees facing layoffs are appealing a decision to contract out their jobs without giving them a chance to compete against private contractors.
Up to 500 employees at Army logistics software centers in Chambersburg, Pa., and St. Louis, Mo., will lose their jobs under a decision the Army made last month to outsource a logistics modernization program.
John R. Morris, president of Local 1763 of the National Federation of Federal Employees in St. Louis, said the union is appealing the Army's waiver of Office of Management and Budget Circular A-76 procedures for public-private competitions. The A-76 procedures would have allowed the employees whose jobs are on the line to show whether they could perform the logistics work better and cheaper than a private firm.
The Communications-Electronics Command (CECOM) at Ft. Monmouth, N.J., which runs the software centers, sought and received the first-ever A-76 waiver from Army headquarters. On April 29, the command asked contractors to submit proposals for running the Army's wholesale supply operation computer systems, which manage stores of equipment, spare parts and supplies worldwide. The union is asking the Army to reconsider its decision to waive A-76 requirements and allow CECOM to directly outsource the work.
"I guarantee you we will put in a barn-burning appeal," Morris said.
The union has until June 1 to submit an appeal. The Army will then have 30 days to respond to a specially appointed waiver appeals board.
Morris said the union is also planning to request an independent review of the Army's A-76 waiver from the Defense Department inspector general and the Office of Management and Budget.
CECOM is requiring contractors to provide a "soft landing" to the hundreds of employees who stand to lose their jobs in the privatization process. Prospective contractors must offer the Army employees jobs in the same locations. CECOM is further encouraging the contractors to offer employees retraining or guaranteed employment for more than one year.
Under Circular A-76, agencies must allow employees to compete against contractors, unless the agency issues a waiver.
According to A-76, public-private competition waivers can be granted only if:
- Directly outsourcing work will result in significant cost savings or quality improvement and doing so will not reduce future competition.
- The waiver shows why in-house employees have "no reasonable expectation" of winning a public-private competition.
- Federal employees are given right of first refusal for jobs with the contractor.
Union officials around the country are rallying behind Morris and the software centers' employees.
Kent Bradley, national representative of the American Federation of Government Employees for the 12th District in Sacramento, Calif., said federal employees' unions will fight attempts to bypass A-76 procedures.
"The unions cannot and will not sit idly by and allow the bureaucrats in the Department of Defense, Army, Navy, Air Force or any other agency to violate the law," Bradley said.
Mark Gibson, president of AFGE Local 1882 in Ft. McCoy, Wisc., said he is sure the Army will try to waive more A-76 competitions. Congress should prevent that from happening, he said.
"What guarantee does the taxpayer have that the Army is going to get the best prices if the in-house workforce is not allowed to be considered as a bidder?" Gibson said.