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B-204276 1 (1981-08-21)

handle is hein.gao/gaobabkfk0001 and id is 1 raw text is: ' COMPTROLLER GENRAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-204276 AUG 211981 The Honorable William V. Roth, Jr. - Chairman, Committee on Governmental Affairs United States Senate -Dear Mr. Chairman: Your letter of July 16, 1981, requested our) views on Senate Joint Resolution 93 ;which will clarify and reaf'firm that it is the general polic! (emphasis provided) of the Government of the United States to rely on competitive private enterprise to supply the products and services it needs whenever competitive industry prices are available. This policy shall be administered by the Director, Office of Management and Budget, in coordination with the Administrator, Office of Federal Procurement Policy. Senator S. I. Hayakawa introduced this resolution in response to bur June 19, 1981, report, Civil Servants And Contract Employees: Who Should Do What For The Federal Government? (FPCD-81-43). We bel-ieve this resolution has merit and, if enacted into law, would be an important step toward creating a firm national policy of generally relying on the private sector for goods and services. The resolution, however, leaves some unresolved issues that, in our opinion, the Congress should address if the Office of Manage- ment and Budget (OMB) is to administer the policy and issue specific regulations consistent with congressional intent. A discussion of these unresolved issues. follows. BACKGROUND Since'1955, the executive branch has had a policy that agencies should rely on the private sector for needed goods and services. The current executive branch policy is prescribed in OM3 Circular A-76, dated March 29, 1979. Basically, the circular provides that (1) agencies should generally rely on the private sector for commercial goods and services unless it is more economical to provide them in-house and (2) all Government functions must be per- formed by Federal employees. The General Accounting Office has consistently sapported this policy while recognizing that proce- dures to implement it can be improved. Our June 19, 1931, report states that executive branch agencies, with few exceptions, have made little progress to implement any part of this policy. OM3 information show:s that as -nany as 400,000 Fedaral employees operate more than 11,000 commercial or industrial

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