![](media/image1.png){width="3.676388888888889in" height="1.54375in"}

The Honorable Ralph Regula

Chairman, Subcommittee on Labor, Health and Human

Services, and Education Committee on Appropriations House of
Representatives Washington, D.C. 20515

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 2123.5-0001

![](media/image2.png){width="3.0861111111111112in"
height="1.6368055555555556in"}

The Honorable Arlen Specter

Chairman, Subcommittee on Labor, Health and Human Services and Education

Committee on Appropriations

United States Senate

Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

> ![](media/image3.png){width="3.2569444444444446in"
> height="1.5569444444444445in"}

The Honorable Charles E. Grassley Chairman, Committee on Finance United
States Senate

Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s (OMB) guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing. SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 2 1 235-000 1

![](media/image4.png){width="3.1465277777777776in"
height="1.7597222222222222in"}

> The Honorable David R. Obey House of Representatives Washington, D.C.
> 20515
>
> Dear Mr. Obey:
>
> The purpose of this letter is to transmit to you the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
> Competitive Sourcing Efforts as required by the Consolidated
> Appropriations Act of Fiscal Year 2004. The report has been prepared
> in accordance with the Office of Management and Budget\'s guidelines.
>
> SSA continues to be focused on results that create more efficient
> functions within the Agency, generate cost savings and improve
> performance. In FY 2005, SSA completed eight competitive sourcing
> competitions. These competitions have resulted in service
> improvements, increased efficiency and reduced costs to the Agency.
>
> Through a measured, consistent approach to competitive sourcing, SSA
> is continuing its efforts to provide better service to the American
> public. If there are any questions concerning the report, your staff
> may contact Myrtle S. Habersham, Chief Strategic Officer, at
> 410-965-7401.
>
> Sincerely, /s/
>
> Jo Anne B. Barnhart
>
> Enclosures:
>
> Tab A - FY 2005 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
> Tab C - Alignment of Competitive Sourcing and Human Capital
>
> SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image5.png){width="3.0131944444444443in"
height="1.676388888888889in"}

The Honorable J. Dennis Hastert Speaker of the House of Representatives
Washington, D.C. 20515

Dear Mr. Speaker:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s (OMB) guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

> SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image6.png){width="3.420138888888889in"
height="1.7833333333333334in"}

The Honorable Henry A. Waxman

Government Reform Committee

House of Representatives Washington, D.C. 20515

Dear Mr. Waxman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

> ![](media/image7.png){width="3.6034722222222224in"
> height="1.7569444444444444in"}

The Honorable Jim McCrery

Chairman, Subcommittee on Social Security

House of Representatives Washington, D.C. 20515

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image8.png){width="3.3430555555555554in"
height="1.8527777777777779in"}

The Honorable Joseph I. Lieberman

Committee on Homeland Security and Governmental Affairs United States
Senate

Washington, D.C. 20510

Dear Senator Lieberman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

> ![](media/image9.png){width="3.1569444444444446in"
> height="1.7902777777777779in"}

The Honorable Max Baucus United States Senate Washington, D.C. 20510

Dear Senator Baucus:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 2 1 23 5-000 1

> ![](media/image10.png){width="3.270138888888889in"
> height="1.6569444444444446in"}

The Honorable Richard B. Cheney President of the Senate Washington, D.C.
20510

Dear Mr. President:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image11.png){width="3.033333333333333in"
height="1.5895833333333333in"}

The Honorable Sander M. Levin

Subcommittee on Social Security

House of Representatives Washington, D.C. 20515

Dear Mr. Levin:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

> ![](media/image12.png){width="3.303472222222222in"
> height="1.9131944444444444in"}

The Honorable Susan M. Collins

Chairman, Committee on Homeland Security and Governmental Affairs United
States Senate

Washington, D.C. 20510

Dear Madam Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image13.png){width="3.379861111111111in"
height="1.6333333333333333in"}

The Honorable Tom Davis

Chairman, Committee on Government Reform

House of Representatives Washington, D.C. 20515

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Iluman Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image14.png){width="3.3027777777777776in"
height="1.7833333333333334in"}

The Honorable Tom Harkin Committee on Appropriations United States
Senate

Washington, D.C. 20510

Dear Senator Harkin:

The purpose of this letter is to transmit to you the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2005
Competitive Sourcing Efforts as required by the Consolidated
Appropriations Act of Fiscal Year 2004. The report has been prepared in
accordance with the Office of Management and Budget\'s guidelines.

SSA continues to be focused on results that create more efficient
functions within the Agency, generate cost savings and improve
performance. In FY 2005, SSA completed eight competitive sourcing
competitions. These competitions have resulted in service improvements,
increased efficiency and reduced costs to the Agency.

Through a measured, consistent approach to competitive sourcing, SSA is
continuing its efforts to provide better service to the American public.
If there are any questions concerning the report, your staff may contact
Myrtle S. Habersham, Chief Strategic Officer, at 410-965-7401.

> Sincerely, /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2005 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2006
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001

![](media/image15.png){width="13.131944444444445in"
height="7.565972222222222in"}

![](media/image16.png){width="13.319444444444445in"
height="1.7916666666666667in"}

![](media/image17.png){width="13.092361111111112in"
height="7.232638888888889in"}

![](media/image18.png){width="13.03888888888889in"
height="1.636111111111111in"}

![](media/image19.png){width="12.185416666666667in"
height="6.526388888888889in"}

![](media/image20.png){width="10.57638888888889in" height="6.50625in"}

**Total Projected Number of Full-time Equivalents Scheduled for\
Competition in Fiscal Year 2006**

The Social Security Administration plans to analyze activities involving
329 full-time equivalents (FTE) in fiscal year 2006 for potential
competition.

**Alignment of Competitive Sourcing and Human Capital**

One of the ways the Agency has strengthened the needed infrastructure
for competitions is the use of a cross-component Competitive Sourcing
Workgroup. Representatives from the Office of Human Resources (OHR) are
active participants along with representatives from each of SSA\'s
components. The workgroup supports SSA\'s competitive sourcing effort in
a variety of ways such as assisting in the development of the FAIR Act
Inventory, updating lessons learned, developing internal competitive
sourcing guidance, providing feedback on OMB guidance, and serving as a
link to Agency components in the area of competitive sourcing.

OHR has worked with various staffs that were performing studies to
ensure that there are workable placement plans, if needed, for all
affected employees.

On an agency-wide scale, OHR has been actively working for many years to
identify and properly plan for the effect that the impending retirement
wave will have on its ability to deliver services. The primary document
that captures this effort is the \"Retirement Wave Analysis.\" First
done in 1998, this analysis has been updated in 2000 and 2004, and we
are now moving to annual updates. This plan was updated in 2005 and
shared with all staffs, including the Office of Competitive Sourcing
(OCS).

\"The Retirement Wave Analysis\" helps SSA to identify potential skills
imbalances and competency gaps, with an eye towards helping Agency
executives address these before they actually occur. This document,
which is shared with all SSA components, including OCS, reinforces that
competitive sourcing should be considered when determining how best to
address these losses.

OHR monitors SSA\'s success in addressing the potential problems
identified in the \"Retirement Wave Analysis\" via the \"Future
Workforce Transition Plan (FWTP).\" This document contains a number of
specific activities that have been identified as necessary to stay ahead
of the potentially negative effects of the retirement wave. The \"FWTP\"
is updated quarterly and reflects, among other information,
reorganization/restructuring activities, skills gaps analyses, training
and competitive sourcing activities.

Finally, OHR has developed a \"Human Capital Plan (HCP)\" in support of
the President\'s Management Agenda item on the Strategic Management of
Human Capital. The \"HCP,\" which has also been shared with OCS, is
aligned with the Agency Strategic Plan. It indicates that the Agency is
using competitive sourcing studies to examine various methods for
providing high-quality, citizen centered service.

The \"HCP\" references SSA\'s \"Competitive Sourcing Human Resources
Plan,\" which outlines alternatives for employees who are displaced as a
result of competitive sourcing, such as the use of career counselors to
provide guidance in establishing a new career. It also references SSA\'s
\"Labor Relations Strategy for Competitive Sourcing,\" which addresses
possible strategies for meeting the labor relations obligations arising
from competitive sourcing. These items are addressed in the Workforce
Planning section of our \"HCP.\"