Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. In 2008, Congress passed legislation to suspend public-private competitions at the DOD through the OMB Circular A-76. That moratorium…
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
In 2008, Congress passed legislation to suspend public-private competitions at the DOD through the OMB Circular A-76. That moratorium remains in place today. In 2009, the OMB issued a memorandum which regulated the move to insourcing at the DOD.
Today, nearly half of the Federal Government owns and operates thousands of activities that are commercial in nature. These functions are not inherent or unique to government; rather, they can be found in small and Main Street businesses across the Nation. Not only are these Federal agencies duplicating private business, but many engage in unfair government competition with the private sector.
My amendment seeks to place a moratorium on the insourcing of previously contracted activities within the DOD. Exceptions would be made, number one, if the activity were inherently governmental and, thereby, should never have been contracted out in the first place; or, number two, if the DOD would employ a reverse A-76 to itemize specific costs saved to the taxpayer, should the DOD be able to
perform the commercial activity more efficiently for the taxpayer.
According to the OMB, the act of conducting the A-76 competition alone can generate a savings of 10 to 40 percent on average. That is just the average savings generated from simply going through the process.
While the A-76 process is not perfect, it is the best opportunity we have for a cost comparison. As an accountant, I understand the importance of a cost comparison. This amendment is just the first step. Studies also show that utilizing the A-76 public-private cost comparisons can save up to $27 billion per year. Again, this is just by implementing the cost comparison tool.
In 2011, the Department of Defense completed a report in response to section 325 of the NDAA for fiscal year 2010, which concluded with two major recommendations to Congress, the first of which is to lift the suspension on A-76 competitions. This is the recommendation from the
Mr. Chairman, I continue to reserve the balance of my time.
Mr. Chairman, I continue to reserve the balance of my time.
Mr. Chairman, opponents may argue that this is a burden to place on the DOD when they are seeking to insource, but I believe that ensuring taxpayer dollars are well spent and that taxpayers are getting the best value for their money is hardly a burden.
A formal, documented process which shows the cost savings will make sure that this is fair for the small businesses who depend on these contracts to thrive.
The American Legion approves of this proposed amendment. They stated:
The practice of converting functions and services that have
been performed by contractors with government employees
limits the amount of contracts that can go to the private
sector to stimulate and grow the veteran small business
industrial base. When the government takes a couple of
positions away from a small business, they are essentially
crippling the small business' ability to succeed in the
private sector. These practices primarily affect small
businesses, as large contractors are rarely affected by
insourcing policy because of their size and number of
employees.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, my amendment is also supported by the TRSA, MAPPS, the Business Coalition for Fair Competition, and the American Conservative Union.
Mr. Chairman, I will submit their statements in support for the Record.
Submitted for the Record in Support of Jenkins Amendment #135
Textile Rental Services Association (TRSA): In its 1996
examination of the issue, the Center for Naval Analyses
likewise found benefits of competing work. The visibility and
identification of alternate providers were beneficial aspects
of the process identified by the Center. As a bottom line,
the Center for Naval Analyses determined a 30% average
savings resulted from this beneficial focus on competition,
with savings persisting over time. A leaner, more efficient
government is a worthy goal, and Rep. Jenkins (KS) Amendment
#135 is a means to achieve this goal.
MAPPS: We have seen insourcing take place beyond
`inherently governmental' activities such as commercial
activities like mapping and geospatial activities. The
Jenkins Amendment is the fairest approach by helping defend
business opportunities for the private sector, including
small business.
Business Coalition for Fair Competition (BCFC): The Jenkins
Amendment is the `yellow pages test' personified. This
amendment 1) prevents the outright conversion of ``commercial
activities'' from private sector firms into DOD performance;
2) requires an official cost accounting be performed and
documented to identify whether DOD performance is more cost
effective than the private sector contractor; and 3) helps
protect private sector firms, including small business, from
losing contracts taken away unfairly by the Federal
government.
American Conservative Union (ACU): The Jenkins Amendment is
essential to stopping the government goliath from gobbling up
jobs that belong in the private sector. Rather than wringing
our hands over slow growth and the lack of good paying jobs,
we should start by protecting existing private sector jobs
from further `insourcing' by this Administration. This
amendment will help do that.
In closing, my amendment seeks to strike a balance. If the service is inherently governmental, it should be contracted out. If it is a commercial activity, the Federal Government owes it to the American taxpayer to get the best value, the most efficiency, and the best service available.
We owe this to our warfighters to ensure they are receiving the best possible services as they protect us. This cannot be assured without the use of a fair competitive processes. With a debt of more than $17 trillion, calls for reductions that will erode the end strength of our military and a stagnant private-sector job market, we must find ways to reduce spending and find efficiencies at DOD while boosting job creation in our communities.
This amendment is an opportunity to vote for small business, break up Federal monopolies, ensure more efficient services, empower the warfighter, and maintain funding for DOD.
I urge my colleagues to vote ``yes,'' and I yield back the balance of my time.
Mr. Chair, I submit the following statements in support of Jenkins Amendment #15 to H.R. 4435.
National Veteran Small Business Coalition (NVSBC): ``The
National Veteran Small Business Coalition (NVSBC) has seen
the negative effect of Insourcing on veteran and service
disabled veteran small businesses over the last few years.
Veterans who have fought for this government should not have
to compete for business opportunities with the same
government who ordered them in harm's way.
Competitive Enterprise Institute (CEI): A leaner, more
efficient government is a worthy goal. Competitive sourcing
provides important, demonstrable benefits for our business
workforce, our economy, and our government's efficiency. The
Competitive Enterprise Institute supports Rep. Lynn Jenkins'
insourcing-and-outsourcing-related amendment to achieve that
goal.