OMB reports job competitions saved $1.4 billion last year

[The Straight Story]

OMB reports job competitions saved $1.4 billion last year

By Kimberly Palmer
[e-mail]

Agencies saved $1.4 billion in fiscal 2004 by holding job competitions between federal employees and the private sector, according to the Office of Management and Budget. That figure, up $300 million from 2003, represents the projected savings over the next three to five years.

The announcement was included in remarks by Clay Johnson, OMB's deputy director for management, about the latest President's Management Agenda score card. The agency will soon release a more detailed report about competitive sourcing, including a breakdown of competitions and the savings they have generated by agency.

OMB's numbers indicated that fewer positions were competed in fiscal 2004 than the year before, suggesting that more money was saved per position competed. Agencies reported competing 12,000 positions in 2004 compared to 17,000 positions in 2003.

http://www.govexec.com/dailyfed/0105/012105k1.htm

The increase in savings can be attributed to the types of positions being competed, improved efficiency at holding competitions and possibly lower bids, said Geoffrey Segal, director of government reform for the Reason Foundation, a Los Angeles-based nonprofit organization. In fiscal 2003, savings per position averaged around 15 percent, while last year it was about 25 percent, he said, adding that both fell into the range of expected savings.