Federal employees worried that their jobs will be outsourced to the private sector can rest easy for another year. The 2011 budget proposal continues a governmentwide moratorium on public-private competitions for federal work.
But contractors may face further insourcing under the proposal. While blocking agencies from competing federal work, the budget’s “general provisions” section requires agencies to take a head count of all contractor employees performing services for the government. The so-called “service contract inventory” must also include the name of the vendor, the type of service provided and the cost of that service.
Businesses may also see fewer federal contracts on the street in fiscal 2011 as the White House renewed its call for agencies to meet the $40 billion contract savings target by the end of that year. To meet this savings goal, the White House encouraged agencies to buy in bulk.