§1710 Public-private competition required before conversion to contractor performance

Summary

A federal agency must run a public‑versus‑private competition before moving any job performed by 10 or more civilian employees to a contractor. The agency must compare the full cost of in‑house work and contractor offers, create an agency plan (including a “most efficient organization” under OMB Circular A‑76 as implemented on May 29, 2003), issue a solicitation, and judge offers on cost and other factors like quality, reliability, and timeliness. The cost comparison must show the contractor’s estimated cost (based on offers), the agency’s estimated in‑house cost, and all other government costs from the contract. The work stays with agency employees unless the contractor would save at least the smaller of 10% of the personnel costs in the agency plan or $10,000,000 over the contract life. The agency must also study how contracting the work would affect its mission. If work is updated or improved but still provides the same service, it is not a new job. Agencies may not change, split, or shrink functions just to avoid these rules or to get around personnel limits. Officials making the decision must consult with affected employees at least once a month while preparing the performance work statement and management study (consulting union or chosen employee representatives counts). Before starting a competition, the agency head must send Congress a report naming the function, location, number of positions affected, expected length and cost of the competition (and the budget line to pay for it), and a certification that contractor work is not the result of forced limits on staffing. The report must assess economic effects on employees and, if more than 50 employees are involved, on the local community and the federal government. A facility representative can object in writing within 90 days if the report or certification is missing; if the agency agrees, it cannot solicit or award a contract until the defect is fixed. The rules do not apply to functions on the procurement list under section 8503 or work planned for qualified nonprofit agencies for the blind or severely disabled, and they do not apply during war or a presidential or congressional national emergency.