Contracting Out Under OMB Circular A-76 at Selected Army and Navy Activities in Virginia

Pursuant to a congressional request, GAO reviewed the recent increase in the number of Office of Management and Budget (OMB) Circular A-76 cost studies being made at selected Army and Navy facilities in Virginia.

GAO found that: (1) the executive branch has been putting increased emphasis on implementing OMB Circular A-76 to obtain goods and services in the most economical manner; (2) the potential impact of outside contracting on military readiness was given consideration before cost studies were initiated, particularly for commercial functions; (3) the agencies' cost studies of in-house functions were organized for the most efficient analysis performance; (4) these studies were performed by personnel assigned full-time to the commercial activities program with assistance from individuals knowledgeable in the functional areas of study; (5) a majority of employees displaced by outside contracting obtained other federal employment or were hired by the contractor; and (6) Office of Personnel Management regulations did not preclude achievement of efficient staffing patterns.