Competitive Sourcing Process and In-Sourcing
How Competitive Sourcing Generates Savings
Competitive Sourcing Definition
Competitive sourcing generates savings by finding more efficient ways to accomplish a particular function.
What a Competitive Sourcing Study Is
Public-Private Comparison
A competitive sourcing study is a public-private competition that compares:
- The total cost of the in-house government operation of an activity to
- The total cost of private sector performance of the same activity
…to determine which is the most economical or efficient approach.
Mission Stays — Workforce Changes
Mission Unchanged
In a competitive sourcing study, the mission remains essentially unchanged. It is the composition of the workforce that changes.
Workforce Composition Options
Three Workforce Outcomes
Where "blue suiters" (military personnel) were initially performing the mission, the resulting service provider will be made up of either:
- Civil servants, OR
- Private sector contract employees
Strategic Benefit
Frees Up Military
A competitive sourcing study frees up military personnel to perform other core military essential activities.
In-Sourcing
In-Sourcing Definition
In-sourcing is the conversion of a contracted function to Department of Defense civilian or military performance, or vice versa.
Business Case Analysis
BCA Comparison
An in-sourcing business case analysis compares:
- The cost of a contracted function to
- The cost of Department of Defense civilian employees to perform the same activity
What BCA Includes
BCA Certifications
Included in the business case analysis are certifications validating:
- Contract cost
- In-house manning
- Available labor pool
- Activity all meet the requirements of a valid and enduring mission requirement
What In-Sourcing Permits
In-Sourcing Permission
Implementing the program permits the Department of Defense to:
- Convert contracts
- Provides special consideration for using DoD civilian employees to perform functions currently performed by a contractor
Four Conditions for Applicability
Four In-Sourcing Conditions
This process is applicable when the function:
- Has been performed by Department of Defense civilian employees at any time during the previous 10 years
- Is closely associated with the performance of an inherently governmental function
- Has been performed pursuant to a contract awarded on a noncompetitive basis
- Has been determined by a contracting officer to have been performed poorly during the 5 years preceding the date of such determination, because of excessive costs or inferior quality
Mandatory In-Sourcing
Mandatory In-Sourcing Categories
In accordance with the Deputy Secretary of Defense memorandum for in-sourcing contracted services-implementation guidance, contracted functions found to be one of the following shall be in-sourced regardless of cost:
- Inherently governmental
- Exempt from contract performance
- Unauthorized personal services
- Experiencing problems associated with contract administration