Outsourcing is Driving Contracts – Too Much?
Has the Pentagon been outsourcing federal work too frequently? Some lawmakers believe so, and they’re attempting to resolve the problem by instituting a cap on service contract spending by the Defense Department.
Restoring Balance to Defense Department Outsourcing
A cap that limited service contract spending to fiscal 2011 totals was instituted in fiscal year 2012. The measure remained in effect until fiscal year 2015, but it has been removed for the past two years.
Rep. Colleen Hanabusa, D-Hawaii, introduced the amendment including the cap, which was part of the annual defense authorization bill approved by the House Armed Services Committee. According to Rep. Hanabusa, the cap was necessary to “strike a fair balance” between federal workers and service contractors.
Has Outsourcing Become “Unfair and Inefficient?”
The International Federation of Professional and Technical Engineers local in Hawaii represents a number of Navy civilians. Led by its president, Jamie Hiranaka, the union supported the amendment’s inclusion.
Hiranaka stated that without the cap, “unfair and inefficient” outsourcing of jobs is likely to continue. With no room to hire federal workers, DoD agencies would be forced to outsource new work.
Michael Fischetti, executive director of the National Contract Management Association, disputes the need for a cap. In his view, such caps make spending decisions political rather than acquisition-based.
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