The Bush administration’s competitive-sourcing policy took a hard smack from the Government Accountability Office less than three weeks after Office of Management and Budget officials publicized one agency’s success story about saving an estimated $100 million a year from that initiative.
The Agriculture Department’s Forest Service reported savings of $38 million from competitive sourcing based on three public/private job competitions between fiscal 2004 and 2006. However, the agency spent an estimated $40 million on transition costs in 2005 and 2006 to restructure its information technology infrastructure for one of the competitions.
That cost is $5 million more than the $35 million in savings that the agency reported to Congress, according to a GAO report issued Feb. 21.
Read the story: FCW.com News - GAO disputes savings reports