Several appeals of a decision to outsource management of a Defense Logistics Agency depot in Barstow, Calif. have been denied, DLA officials announced last week.
As a result, more than 100 DLA employees will lose their jobs when management of the depot is turned over to EG&G Logistics of Manassas, Va. In January, EG&G won a public-private competition under Office of Management and Budget Circular A-76 to operate the depot.
The American Federation of Government Employees and three depot employees filed appeals to the decision, but the DLA appeal authority denied all appeals, saying there were no errors made in the cost comparison that contrasted DLA's best offer with EC&G's lowest price for running the depot.
"While this news is disappointing, I will do all I can to ensure the transition from a federal workforce to a contracted workforce is smooth, and that there is no degradation in support to our customers," said Lt. Col. James A. Kessler, commander of the depot.
The transition is scheduled to be completed by July 30. Affected employees will be offered buyouts of up to $25,000, and will be given first choice among non-management jobs created by the contractor.
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