Protest Involving Agency Determination To Contract Out

A labor union protested an agency decision to contract out for maintenance service. The decision to contract out was made uder the guidance of Office of Management and Budget Circular A-76 which reflects the policy of the Federal Government to rely on private enterprise for its needs unless the national interest requires otherwise. The decision to contract out depends largely on a comparison of the costs of contracting with the private sector and the costs of performance by Government employees. If an evaluation shows the cost of contractor performance to be lower than the cost of continued in-house performance, the Government employees concerned are subject to reassignment or reduction-in-force actions and a contract for the services is awarded to the lowest cost offeror. GAO has consistently declined to consider protests concerning the propriety of an agency's decision under A-76 to contract out in lieu of performing work in-house on the basis that these actions involve matters of executive policy not within the protest decision function of GAO. The protest was dismissed.