Guide stresses planning, communication in job competitions

To fully reap the benefits of competitive sourcing efforts, federal managers must plan ahead, involve top executives in decision-making, communicate clearly and coordinate with personnel officials, a guide published Friday by an interagency acquisition council recommends.

Before asking federal employees to defend their jobs against contractors, agency managers should find out if private companies will bid on the work, the Federal Acquisition Council suggests in the guide. Agencies also should help federal employees form an in-house team, or "most efficient organization," and vie for the work.

"Several agencies have completed all the pre-announcement steps of the competitive sourcing process only to find that there is insufficient interest from the private sector," the guide states. "This results in wasted taxpayer dollars."

The council, a group of procurement experts from across the government, released the latest guide to update advice published in October 2003. Based on tips shared by managers leading competitive sourcing efforts at a variety of agencies, both booklets seek to clear up common misunderstandings about public-private job competitions.

Managers can assess whether contractors will participate in competitions by conducting market research, the council advises. Agency officials can spark interest in contracts by hosting "industry days" to educate private executives about opportunities for federal jobs, and by creating appealing work packages. Larger contracts, for example, typically attract more bidders.

Federal employees tend to win public-private contests, especially those with fewer than 65 jobs at stake, partly because contractors do not participate, Stan Soloway, president of the Professional Services Council, an Arlington, Va.-based contractors association, has argued. To attract more contractors, agencies must convince companies that they have a fair chance at prevailing in competitions, he said.

In addition to analyzing potential contractor interest, managers should think through the potential impact of job competitions before proceeding, the Federal Acquisition Council recommends. Managers should consider: the projected length of the contest, expected savings, risks of outsourcing the work and possible negative side effects.

For example, Internal Revenue Service managers compare the potential costs and benefits of competitions prior to announcing any contests. Managers proceed only if they can show a competition will likely yield a 20 percent to 30 percent return on investment or result in significant improvements in customer service.

Agencies where top executives, or even department heads, push competitive sourcing and help run contests generally enjoy the most success. "Active and visible participation by top officials is essential," the guide says. At some agencies, top leaders send employees notices with information on job competitions, rather than delegating the task to lower-level managers.

Communication is the key to reducing federal employees' anxiety over competitions, according to the council. "Most loss in productivity [during contests] is due to misunderstanding or misinformation among employees of the true nature of the competitive sourcing process," the guide notes. "Your efforts to open a frank communication channel with them will go far in building trust and morale and sustaining productivity."

In addition, agencies should ensure that managers responsible for making decisions in public-private competitions and awarding contracts have "a broad perspective" and "no vested interest in one [type of job] over another," the council recommends. This avoids bias, or the appearance of bias. For example, the Food and Drug Administration has placed a steering committee, including agency executives, acquisition experts, equal employment opportunity officials and union representatives, in charge of identifying work to place up for bids.

Competitive sourcing officials should involve human resources managers in planning job competitions as well, the guide advises. That way, personnel experts can gauge how competitions might affect recruiting efforts and other workforce planning projects. Human resources officials can coordinate with the Office of Personnel Management on setting up voluntary separation or early retirement packages for workers who might lose jobs as a result of competitions.

The guide includes a primer on running public-private competitions and a list of Web sites and other competitive sourcing resources. Federal managers with suggestions for the next edition should e-mail comments to: A-76@omb.eop.gov.