1. What is an A-76 study and how does it work?
An A-76 study is a competition of government-operated activities and the private sector to determine whether commercial activities can be done more economically and efficiently by contract or an in-house workforce. The Office of Management and Budget issued guidance, in a 1966 Congressional Circular by the same name, to govern cost competitions between government-operated commercial activities and the private sector. A-76 studies fall into two categories - streamlined competition or standard competition. In a streamlined competition, an activity can be converted directly to contract once cost effectiveness is proven and the activity contains 10 or fewer civilians. Any function with more than 10 civilians must undergo a standard competition - the second type of study. In a standard competition, the government develops a most efficient organization (MEO) to compete against the private sector.
2. If the Air Force decides to go with a contractor; what happens next?
The decision is subject to review of any appeals that may be submitted by affected government employees and their unions. Interested parties who wish to appeal the decision must address costing issues and noncompliance with Office of Manpower and Budget Circular A-76. The appeals must reference the specific deviation from the established costing procedure and identify documentation to support the claim. All appeals must be submitted in writing to the contracting office at. If appeals are denied and the decision is upheld, a contract will be awarded. If appeals are sustained and the decision is reversed, the government will implement its in-house civilian "most efficient organization."
3. If the Air Force decides to keep its in-house workforce; what happens next?
The decision is subject to review of any appeals that may be submitted by competing contractors. Interested parties who wish to appeal the decision must address costing issues and noncompliance with Office of Management and Budget Circular A-76. The appeals must reference the specific deviation from the established costing procedure and identify documentation to support the claim. All appeals must be submitted in writing to the contracting office. If appeals are denied and the decision is upheld, the government will implement its in-house civilian "most efficient organization." If appeals are sustained and the decision is reversed, a contract will be awarded.
4. What is the difference between "Competitive Sourcing" and "Privatization?"
Competitive Sourcing is an initiative to maximize cost effectiveness and efficiency and enhance mission capability by taking advantage of services available through the commercial sector (commercial activities). A function that is competitively sourced and maintained in-house will be converted to a civilian (DoD) workforce. In either case, the government retains responsibility and control of the function, either through service contracts or the DoD civilian Most Efficient Organization (MEO).
Privatization is the transfer of control/ownership of a target business asset and/or the associated activity from the public to the private sector. In this case, the government gives up responsibility for and control of the function. Privatization is also characterized by the shift from public to private capital for the fundamental, long-term financial investment required to sustain the privatized activity.
5. Is Competitive Sourcing an Air Force initiative or is the entire Department of Defense participating?
Competitive Sourcing has been federal policy since the 1950s. The competitive sourcing initiative is a DoD priority to allow us to become more efficient and effective in providing support. It frees up military personnel and allows us to concentrate on core competencies; more "tooth-to-tail." It also frees up declining dollars to sustain readiness, fund force modernization, and improves quality of life.
6. What is a Most Efficient Organization (MEO)?
During an A-76 study competition, the government has the opportunity to compete with commercial firms to provide a service. When a government activity develops a proposal to compete for a contract, it is called a MEO. The MEO is the in-house plan to perform the work, including the organizational structure, resources required, work processes, etc. The objective of the MEO is to find new, innovative, and creative ways to provide the required services in the most cost-effective manner.
7. Is Competitive Sourcing a means to save money for modernization?
Yes, but that is not the only reason for competitive sourcing. The competitive process allows the Air Force to identify the most efficient way to deliver support services. By identifying alternate and innovative support vehicles, we also improve effectiveness by enabling more Air Force personnel to focus on our core missions.
8. Can you define the steps used in determining whether Competitive Sourcing will be used?
Prior to a competitive sourcing decision, the following must be researched and/or analyzed: project scoping, services analysis (requirement identification), workload systems, a preliminary labor market research, a preliminary market research, and a current baseline cost. The OMB Circular A-76 and the Air Force Preliminary Planning Guidebook provide more complete information about these processes.
9. Is competitive sourcing another way to do more with less people or to give up some of our support structure?
Competitive sourcing will enable us to perform our mission at a lower cost, using fewer military and civilian employees, but more contractors. In this sense, it is a true force multiplier. It also allows us to preserve our critical support capability at less cost. It does not result in a loss of capability but simply shifts to the most efficient procurement of an existing capability. Don't forget that individuals will still be performing the missions that are competitively sourced or privatized, but those people may work for contractors or private business.