Freedom from Government Competition

NSPE Position
NSPE believes that government should not be in competition with private tax-paying firms and individuals that have the capabilities of providing the goods and services required.
 
NSPE believes that government agencies should contract for engineering services with qualified private engineering consultants to the extent consistent with national security, proper continuity of government programs and the public interest.
 
NSPE believes there is a need for engineers in government and engineers in private practice to engage in complementary engineering activities.  However, government agencies should not be authorized to provide engineering services when such services are available or can reasonably be made available from outside private firms or individuals.  The exception is when they are required to fulfill the direct responsibility and function of the agency or institution, or to maintain the required competency to perform its mission.
 
NSPE supports engineering organizations within public agencies, which are competently and sufficiently staffed to perform a base, load of long term, essential, in-house engineering assignments for the agency.
 
Background 
There has always been a certain degree of tension between the government and the private sector with respect to the relative role of each. Some functions clearly need to be carried out by the government, for example, defense at the federal level.  On the other extreme are those functions, which, in most instances, should be provided by the private sector.  The difficulty occurs when there is a need for a government agency to maintain a core competency in a given function. 
(See Issue Brief # 4057, Retain Reliance on Private A/E Services). 

Competitive sourcing improves the performance and efficiency of commercial activities performed for the federal government. Competitions are held in which the costs and overall value of services are compared between private sector and federal government providers. A major reason for the difficulties is a complex set of rules governing these competitions found in a document known as Circular A-76.

U.S. Office of Management and Budget (OMB) Circular A-76 is a set of policies and procedures to help determine whether public or private sources will undertake the federal government's commercial activities and services. The circular applies to all executive branch agencies.
In November 2002, the Bush administration proposed major revisions to the A-76.  The final revisions were released by OMB on May 29, 2003, and went into effect immediately.

The revisions encourage department and agency managers to significantly expand public-private competitions for in-house or outside activities currently taking place without the benefit of rival service providers.  Federal law already requires agencies to publicly identify activities that are commercial along with those that are inherently governmental in nature.  For business activities performed for the federal government, the revised Circular A-76 will make complex competitions easier while also reducing the time it takes to hold them from as long as four years to one.

Talking Points

• Require the government to competitively outsource functions not among its core competencies.
• Oppose federal government engaging in activities that is direct competition with the private sector.
• Support a competent and sufficiently funded in-house engineering staff for essential assignments.