Action of OMB Designed To Expand the Amount of Contracting Out of Functions Now Performed by Civil Service Employees

PSAD-77-79: Published: Feb 16, 1977. Publicly Released: Feb 19, 1982.

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An Office of Management and Budget (OMB) release and GAO plans for monitoring major developments concerning the contracting out of functions now performed in-house by Government employees were discussed. Previously, GAO recommended that OMB give consideration to developing a series of rates tailored to each type of activity to be contracted out. It was also recommended by GAO that social security costs for private sector employees be computed on the dynamic normal basis, as are retirement costs for civil service employees.

GAO continued to believe that the establishment and use of a series of tailored rates would result in more accurate cost comparisons. Further evaluation of the Civil Service computer model used to calculate the retirement cost factor will be made by GAO to determine if it is practical to establish such rates. GAO continues to believe that estimates of the cost of contracting should include some provision for potential or future cost for benefits. GAO plans an evaluation of executive agency implementation of and compliance with the rules and regulations concerning contracting out for goods and services.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: Obtaining needed goods and services at the lowest possible cost is a sound public policy that must be given equal consideration as that given to the policy of placing reliance on the private sector. The effective implementation of these policies requires that complete and accurate cost comparisons be made.

    Agency Affected:


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