Business Coalition Urges OMB to Halt Insourcing
Business Coalition Urges OMB to Halt Insourcing

August 13, 2010

The Business Coalition for Fair Competition (BCFC) today requested that the Office of Management and Budget (OMB) issue an immediate moratorium on insourcing - an Obama Administration program to convert work currently performed by private sector contractor firms to performance by Federal government employees.

BCFC's action comes on the heels of the public statement by Defense Secretary Robert Gates that, "We weren't seeing the savings we had hoped from insourcing."

"Over 17 months have passed since the March 4, 2009 publication of a White House memoranda on government contracting. That memo highlighted the insourcing agenda. This shift to government performance of commercial activities not only hinders the private sector, including small and minority owned business, but places additional costs to taxpayers during a lengthened period of a steep decline in the nation's economy, a staggering national debt, and a high national rate of unemployment. This unprecedented government intrusion and competition in the private market is having a detrimental effect on capital investment and job creation," BCFC said in a letter to Acting OMB Director Jeffrey Zients.

BCFC President John Palatiello said, "Given Secretary Gates' recent acknowledgement that insourcing does not save money, and given the current state of the nation's economy, BCFC respectfully urges OMB to issue a revision to the insourcing agenda calling for an immediate halt to all insourcing efforts throughout the Federal government."

To read the letter, click here.
The Business Coalition for Fair Competition (BCFC) is a national coalition of businesses, associations, taxpayer organizations and think tanks that are committed to reducing all forms of unfair government created, sponsored and provided competition with the private sector. BCFC believes the free enterprise system is the most productive and efficient provider of goods and services and strongly supports the Federal government utilizing the private sector for commercially available products and services to the maximum extent possible.
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