Commentary: Defense Department’s approach to in-sourcing has unintended consequences

Source: By Stan Soloway, Washington Post, Monday, July 19, 2010


The debate over the degree to which federal agencies have hired contractors for work more appropriately performed within the government has become increasingly prominent. It has been further fueled by statutory requirements that agencies consider in-sourcing almost anything they have ever outsourced.

…. The Office of Management and Budget has also directed agencies to conduct meaningful cost analyses before insourcing positions that do not have to be performed by government employees. However, internal documents suggest that the Defense Department is often significantly underestimating the costs of performing work with federal employees because their analyses are limited primarily to immediate wages and benefits, plus a small amount of overhead expense, rather than the entire set of identifiable costs being assumed by the taxpayer.

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