Source: By ELISE CASTELLI, Federal Times, September 21, 2008
A rare thing happened in January. Sixty-five Navy civilian employees at Puget Sound's Fleet and Industrial Supply Center in Washington state took over torpedo maintenance work that had previously been done by 85 contractor employees.
The Navy "insourced" the work -- as it is called when work is transferred from a contractor to in-house employees -- after it calculated it would save 10 percent of the cost, or $3 million over five years, of what it was costing to have BAE Systems do the work.
..........The Army has also insourced work. So has IRS and the Homeland Security Department. Such cases are rare, but if Congress gets its way, there will be plenty more insourcing going on in coming years at the Defense Department and across government.
...... The IRS announced this month it would take back 700 documents management jobs it outsourced last year to a contractor.
........ In a document obtained by Federal Times, the IRS declared it was canceling the contract and bringing the 700 jobs back in house "in the interest of putting a long-term solution in place and doing so in the most cost effective manner." The document didn't say how much the agency would save by reversing its outsourcing decision.