(Washington, D.C.) – Citizens Against Government Waste (CAGW) today praised the Bush Administration for increasing competition for commercial services currently being performed by government employees.  The revision of the Office of Management and Budget (OMB) Circular No. A-76, “Performance of Commercial Activities,” was the first major change in the process since 1983.  According to a study conducted by the General Accounting Office, competition for these jobs will save taxpayers an average of 30 percent. 

“OMB Director Mitch Daniels should be applauded for opening up more competition, thus creating a win for taxpayers and eliminating the potential for waste in government,” CAGW President Tom Schatz said.  “The federal government spends billions of dollars a year on commercial services that could easily be done by the private sector.  Competition for these services will ensure that taxpayers receive the most efficient performances possible.”

CAGW, dating back to its origins from the Grace Commission in 1984, has always supported changes to A-76.  The OMB revisions not only streamline the bidding process by reducing the timeline for an agency to select a winner by 75 percent, but they also allow federal employees to compete.  Such public-private competition was a major concern for the union representing the 425,000 federal employees whose jobs may become open to the private sector.

“The new rules benefit all parties,” Schatz continued.  “It is important that federal employees be allowed to compete for these jobs, as they already know the work that needs to be done.  If they are able to provide the best services for the least amount then they should win the contract.”

History shows that competition leads to taxpayers saving money.  Earlier this year, OMB opened up bidding for the printing of the fiscal 2004 budget.  For the past 81 years, the Government Printing Office had always done that work.  As it turns out, they won the bid this year with an offer of $387,000, a savings of 24 percent from their own price in the previous year. 

“Just as American families need to find ways to save money during a struggling economy, so does the federal government,” Schatz concluded.  “With a deficit of $350 billion, this is a smart way for the government to save taxpayers’ money and still provide the best services.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.  For more information, please visit www.cagw.org.