$1.1 Billion in Savings Makes the Case for Competition
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| FOR IMMEDIATE
RELEASE : May 25, 2004
CONTACT: Ian Koski, Director of Public
Policy & Communications | 703-894-0481| [email protected] |
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ARLINGTON, Va. – Carl DeMaio, president of The
Performance Institute, today issued the following statement
in response to the competitive sourcing study released
today by the Office of Management and Budget:
“Competition works. The study released today
by OMB shows that it works to the tune of $1.1 billion
over the next three-to-five years. That’s just
the beginning of what competition can do for the federal
government. It is the floor on potential savings, not
the ceiling. Taken with the first three competitive
sourcing ‘green lights’ on the PMA Scorecard,
agencies and, more importantly, taxpayers are clearly
beginning to reap the benefits competitive sourcing
can offer. Agencies’ combined investment of $88
million to conduct competitions will net more than $1
billion in savings.
“Where there is leadership, there is a return
on investment. With Kyle McSlarrow at the helm of its
competition initiatives, Energy has saved $39,000 per
position competed. But when there is no leadership and
when agency officials want competition to fail –
it will fail amid cost overruns and prolonged studies.
“In the report, OMB goes to great length to describe
what agencies are doing right and what they’re
doing wrong in the conducting of competitions. The emphasis
on human capital planning is particularly important
in competitive sourcing, where integrated long-term
strategizing is key to identifying inefficiencies, eliminating
redundancies, and restructuring agencies.”
The Performance Institute is a private, nonpartisan
think tank improving government results through the
principles of performance, competition, transparency,
and accountability. The Institute serves as the nation’s
leading authority and repository for on performance-based
management practices for government agencies. Our mission
is to identify, study and disseminate the leading management
innovations pioneered by ‘best-in-class’
public-sector organizations.
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