This document provides background information and summarizes the debate over Government Outsourcing Reform. The links to the left will lead you to public documents that we have found.
A strong trend
over the past quarter of a century is the outsourcing of government jobs.
For example, jobs in a government building cafeteria filled by employees of
that agency can be put up for bid. Private companies will put in a bid and
the government unit operating the cafeteria may put up a bid as well. The
low bidder meeting all requirements of the job will gain the contract for
a specified period of time, after which another round of bids will be scheduled.
This movement has its roots in the philosophy of privatization. Conservative
advocates have pushed free market principles, asking government to behave
more like a business. By letting companies compete for government work, the
government will get the lowest price for the tasks they need completed. Advocates
also claim the work is likely to be done more effectively as a company knowing
it is in a competitive position and runs the risk of losing the contract if
its work falls below standards, will have the incentive to do the best job
possible.
Outsourcing extends
far beyond cafeteria workers and other blue collar tasks to an entire range
of government work. For example, contract workers were sent to Iraq in 2003
to work with the military on various elements of the occupation and rebuilding
of Iraq. For government at all levels outsourcing offers benefits beyond cost
cutting. If jobs are outsourced, government appears on the surface to be smaller.
That is, the head count of workers is smaller and incumbents running for re-election
can demonstrate to constituents that they are working hard to shrink the government.
It is, of course, a shell game, because employees of a private sector or nonprofit
being paid from a government grant or contract may not technically be employees
of the government, but they are doing government's work and being paid by
the taxpayer.
The Truthfulness,
Responsibility, and Accountability in Contracting Act (or TRAC Act for short)
represents a counterattack by those sympathetic to government workers and
organized labor. This effort gained some urgency after President Bush took
office and announced plans to privatize 850,000 government jobs. TRAC supporters
believed that Bush was not only interested in trying to save money for government,
but was interested in weakening labor as well. As manufacturing jobs have
declined and labor union jobs disappeared in those industries, unions have
stepped up their organizing of government workers. The administration has
little sympathy for unions and knows that labor will have difficulty organizing
employees in the private sector firms that compete for government jobs.
TRAC was strongly
supported by Democrats and if the law were passed it would surely slow down
the trend toward outsourcing. The law calls for current government service
contracts to be discontinued within six months of enactment. Government workers
would be rehired while the Office of Management Budget reviewed the performance
of the contractors. So far the legislation has not passed the Congress and
its prospects are dim with Republicans in control of both the Congress and
the White House.