Army outsources logistics modernization program

The Army has awarded a $680 million logistics modernization contract to Computer Sciences Corporation (CSC) after months of fighting off efforts to stymie the outsourcing effort.

The contract marks the first time the Army has waived Office of Management and Budget Circular A-76 requirements for competition between federal employees and contractors. Despite efforts by Army employees, members of Congress and the Small Business Administration, the Army awarded the Wholesale Logistics Modernization Program contract, known as "Log Mod," to CSC on Dec. 29.

In a news release, CSC pledged to offer employment with comparable pay and benefits to as many as 400 Army employees whose jobs will be eliminated.

The National Federation of Federal Employees, which represents the Army employees at facilities in Chambersburg, Pa., and St. Louis, Mo., appealed the Army's decision to waive A-76 requirements this summer. The Army rejected the appeal this fall. Then on Dec. 6, the union filed a request for an injunction stopping the outsourcing effort in the U.S. District Court of the Eastern District of Missouri. The court has not yet issued a decision on the injunction.

"We are in limbo right now," said Jackie Arbeiter, vice president of NFFE Local 1763.

The Small Business Administration has also continued to oppose the Army's effort, charging that the service bundled too many requirements into a single contract, making it difficult for small businesses to bid on it.

CSC pledged to subcontract about 15 percent of the contract to small businesses.

Subcontractors to CSC on the contract include IBM, KPMG, GRC International of Vienna, Va., Metters Industries of McLean, Va., and Fairfax, Va.-based Signal Corp.