In the latest event concerning the troubled OMB A-76 program, House Armed Services Committee (HASC) Chairman Representatives Ike Skelton (D-MO) and House Readiness Subcommittee Chairman Solomon Ortiz (D-TX) recently sent letters to Defense Secretary Robert Gates and Office of Management and Budget (OMB) Director Peter Orszag, urging the Department of Defense to halt all pending A-76 competitive sourcing actions. They also asked that DoD officials refrain from initiating these competitions, thus providing both Congress and the Obama Administration with adequate time to comprehensively review the A-76 program. They note that although the A-76 process was initially intended to identify the most efficient provider of goods and services to the government, it has become "almost a mandate in recent years for pushing more and more work into the private sector, even work that is closely associated with inherently governmental functions, in order to meet arbitrary competition goals."

Skelton and Ortiz argue that their recommendations are consistent with the memorandum signed by President Obama on March 4, 2009, which, among other things, calls for administration officials to clearly define "inherently governmental functions" by September 30, 2009. A consensus on which functions need to be performed by government employees has remained the center of the A-76 debate for some time. A final determination, however, will affect the quantity and type of work available to contractors in the future. Skelton and Ortiz also criticized the strain on federal employees whose jobs are being competed, as well as private sector contractors who have expended time and resources bidding for the work, a result of the frequently long duration of A-76 processes. Furthermore, the letters also note that the FY09 Omnibus Appropriations Act, signed into law by President Obama on March 11, 2009, includes a government-wide moratorium on initiating or announcing any A-76 studies in FY09, but does not prevent ongoing competitions. Contrast this with the FY08 National Defense Authorization Act, which limited, but did not prohibit, these studies.

Yet this request may garner initial resistance within the Department, which, according to a March 2008 DoD memo, viewed competitive sourcing as "an essential management tool that achieves government efficiency and reduces operating cost of activities," under the Bush Administration. Despite criticism from opponents, President Bush was known for his embrace of competitive sourcing, while President Obama's approach has largely been defined in opposition to the previous administration. Obama's supporters include traditional, long-time opponents of competitive sourcing such as federal labor unions and Democrats, among others. In the short-term, industry can expect decreased business potential in areas previously subject to A-76 competition as officials continue their attempts to assess DoD's A-76 program and define inherently governmental functions.

Below is a sampling of A-76-related Opportunities within DoD to watch:

• A76 Study for Civil Engineering Public Works Services, Opportunity ID 40370
• A 76 Range Operations at Fort Benning, GA, Opportunity ID 50699
• OMB Circular A76 Support Services for Directorate of Public Works at Fort Jackson, SC, Opportunity ID 54872
• A 76 Study Directorate of Logistics and Directorate of Public Works Services at AP Hill, VA, Opportunity ID 46743
• A 76 Public Private Competition for Aerospace Ground Equipment Storage Maintenance and Transient Alert, Opportunity ID 43187