House Rpt.108-195 - DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATION BILL, 2004

COMPETITIVE SOURCING

The Committee has carefully reviewed the application of the Administration's Competitive Sourcing initiative within the agencies and bureaus under its jurisdiction. While there is certainly merit to this undertaking, and the Committee commends the Department of the Interior, in particular, for its approach to addressing this issue, the Committee remains concerned about the massive scale, seemingly arbitrary targets, and considerable costs associated with this initiative, costs which are expected to be absorbed by the agencies at a time when federal budgets are declining.

The Committee is no stranger to competitive sourcing. In fiscal year 1996, after careful review, the Committee required the United States Geological Survey's National Mapping Division to contract out 60 percent of its map and digital data production activities. The Committee has carefully monitored, on an annual basis, the quality of the product, the overall effect this approach had on the Survey's workforce, the ability of the National Mapping Division to maintain those workforce skills necessary to manage effectively the contracts in the future, and the ability of the National Mapping Division to maintain a cadre of skilled cartographers to ensure that the Geological Survey remains at the cutting edge of its mission-essential disciplines.

Similarly, in 1999, the Committee responded to recommendations made by the National Academy of Public Administration by requiring the outsourcing of 90 percent of the National Park Service's construction operation--the Denver Service Center. As with the U.S. Geological Survey, workforce skills were retained by the Service to manage projects handled in-house and to oversee private sector contracts.

The Committee understands that the Forest Service expects to spend $10 million during fiscal year 2003 on competitive sourcing activities. The Committee is concerned that all forests and most contracting officers will be heavily impacted by this effort at a time when they should concentrate their attention on improving business practices that were adversely affected by last year's severe fiscal situation due to the redirection of funds for emergency firefighting.

This massive initiative appears to be on such a fast track that the Congress and the public are neither able to participate nor understand the costs and implications of the decisions being made. In addition, the Committee's required reprogramming guidelines are not being followed. While millions have been spent, reprogramming letters have not been forwarded to the Committee.

Based on these and other concerns the Committee has included bill language under Title III--General Provisions limiting competitive sourcing activities to those that are currently underway for fiscal years 2002 and 2003. Each agency should provide an in-depth report to the Committee detailing the results of completed studies and the action to be taken as a result of those studies. The reports should be completed by March 1, 2004, and should include specific schedules, plans, and cost analyses for the outsourcing competitions.