Privatizing OPM Investigations

Implementation Issues Gao ID: T-GGD-95-186 June 15, 1995

The Office of Personnel Management (OPM) plans to privatize its Investigative Service in order to (1) permit agencies more autonomy in meeting their investigative needs and (2) achieve cost savings through greater competition among providers of investigative services. This testimony addresses two basic questions about OPM's privatization initiative. First, should the investigative function be considered "inherently governmental," or can it be performed appropriately by a nonfederal organization? Second, if it is determined that this function can be carried out appropriately by a non-federal organization, is conversion to an Employee Stock Ownership Plan feasible?

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