DOD Competitive Sourcing: Results of A-76 Studies Over the Past 5 Years

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) reported on its Office of Management and Budget Circular A-76 studies in July 2000. GAO found that DOD generally complied with the reporting requirements that Congress had imposed on it. DOD took steps to ensure that the information it provided on 286 A-76 studies was complete and accurate. GAO determined that the information was generally consistent with data it had collected on other A-76 studies. However, because of historical weaknesses in DOD's database from which the data were obtained, GAO could not be sure of the data's accuracy. Overall, DOD reported that the A-76 studies over the five year period saved about $290 million in fiscal year 1999. GAO's work showed that savings were being achieved, but limitations in DOD's baseline cost data made it difficult to determine precisely how much was being saved. In addition, DOD reported that 40 percent of the A-76 studies resulted in contracts with the private sector. At the same time, the report indicated that only 23 percent of the studies resulted in outside contracts in 1999. This was considerably lower than in earlier years when contractors won most of the competitions.