In depot competitions, it's private firm 2, feds 1

The Defense Logistics Agency will outsource the jobs of 450 people at its distribution depot in Warner Robins, Ga., the agency announced Friday.

A contract to run the facility will be awarded to Manassas, Va.-based EG&G Logistics after more than a year of public-private competition between the depot's employees and the private sector.

The American Federation of Government Employees, which represents the depot's employees is appealing the decision under the provisions of Office of Management and Budget Circular A-76, which governs public-private competitions. Last month, EG&G won a competition to run a DLA depot in Barstow, Calif. AFGE is appealing the Barstow decision as well.

In November, employees at the DLA distribution depot in Columbus, Ohio won a public-private competition, so operations and management of that depot will remain in-house.

The three facilities are the first of 16 DLA distribution depots to undergo public-private competitions. The remaining 13 competitions are being conducted in phases through 2003. Last year, competitions began at six more depots: Hill Air Force Base, Utah (664 employees); Richmond, Va. (532 employees); San Diego, Calif. (411 employees); Albany, Ga. (165 employees); Jacksonville, Fla. (152 employees); and Cherry Point, N.C. (131 employees).

Historically, according to the Pentagon, about half of public-private competitions are won by contractors and half by in-house employees. Even when the agency employees win the competition by coming up with plans to be more efficient, some workers typically lose their jobs.

The experience at DLA depots is similar to that of the General Services Administration's eight supply and distribution warehouses, which employ about 2,000 workers. Last year GSA announced plans to eliminate the warehouses and instead rely on private companies to deliver products directly to federal customers. Those plans have been put on hold while GSA allows the depot employees to make the case that the government should retain their services.

The commander of the DLA depot in Warner Robins said his immediate goal is to help workers find new jobs.

"I'm proud to have served with such a great group of individuals who under many months of enormous pressure continued to work hard at providing superior distribution support to our warfighters," said Col. Joe Carter. "We wish the contractor well in continuing the high quality support that is so much the spirit of this depot."