> ![](media/image1.png){width="1.0409722222222222in"
> height="1.0409722222222222in"}
>
> [SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Max Baucus United States Senate Washington, D.C. 20510
>
> Dear Senator Baucus:
>
> The purpose of this letter is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance, hi
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.
>
> Through a measured, consistent approach to competitive sourcing, SSA
> provides 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 2006 Competitive Sourcing Activities Summary

Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007

> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

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

Dear Mr. Cheney:

The purpose of this letter is to transmit the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
Competitive Sourcing Efforts as required by Section 647(b) of Division F
of the Consolidated Appropriations Act, Fiscal Year 2004, P.L. 108-199.
The report has been prepared in accordance with Office of Management and
Budget Memorandum M-07-01.

> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.
>
> Through a measured, consistent approach to competitive sourcing, SSA
> provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

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 the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
Competitive Sourcing Efforts as required by Section 647(b) of Division F
of the Consolidated Appropriations Act, Fiscal Year 2004, P.L. 108-199.
The report has been prepared in accordance with Office of Management and
Budget Memorandum M-07-01.

> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> 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 the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.
>
> Through a measured, consistent approach to competitive sourcing, SSA
> provides 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 41 0-965-7401.
>
> Sincerely,
>
> /s/
>
> Jo Anne B. Barnhart

Enclosures:

Tab A - FY 2006 Competitive Sourcing Activities Summary

> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

> The Commissioner December 27, 2006
>
> 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 the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.

SSA continues to focus on results that create more efficient functions
within the Agency, generate cost savings and improve performance. In FY
2006, SSA completed eight competitive sourcing competitions, which
resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary

> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> 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 the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions., which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Sander M. Levin House of Representatives Washington,
> D.C. 20515
>
> Dear Mr. Levin:

The purpose of this letter is to transmit the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
Competitive Sourcing Efforts as required by Section 647(b) of Division F
of the Consolidated Appropriations Act, Fiscal Year 2004, P.L. 108-199.
The report has been prepared in accordance with Office of Management and
Budget Memorandum M-07-01.

> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Joseph I. Lieberman United States Senate Washington,
> D.C. 20510
>
> Dear Senator Lieberman:
>
> The purpose of this letter is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.

SSA continues to focus on results that create more efficient functions
within the Agency, generate cost savings and improve performance. In FY
2006, SSA completed eight competitive sourcing competitions, which
resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Jim McCrery
>
> Chairman, Subcommittee on Social Security
>
> Committee on Ways and Means
>
> House of Representatives
>
> Washington, D.C. 20515
>
> Dear Mr. Chairman:
>
> The purpose of this letter is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance, hi
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable David R. Obey House of Representatives Washington, D.C.
> 20515
>
> Dear Mr. Obey:
>
> The purpose of this letter Is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Ralph Regula
>
> Chairman, Subcommittee on Labor, Health and Human Services, Education
> and Related Agencies Committee on Appropriations House of
> Representatives Washington, D.C. 20515
>
> Dear Mr. Chairman:
>
> The purpose of this letter is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.

SSA continues to focus on results that create more efficient functions
within the Agency, generate cost savings and improve performance. In FY
2006, SSA completed eight competitive sourcing competitions, which
resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

The Honorable Arlen Specter

Chairman, Subcommittee on Labor, Health and Human Services, Education
and Related Agencies Committee on Appropriations United States Senate
Washington, D.C. 20510

> Dear Mr. Chairman:
>
> The purpose of this letter is to transmit the Social Security
> Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
> Competitive Sourcing Efforts as required by Section 647(b) of Division
> F of the Consolidated Appropriations Act, Fiscal Year 2004, P.L.
> 108-199. The report has been prepared in accordance with Office of
> Management and Budget Memorandum M-07-01.
>
> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Henry A. Waxman House of Representatives Washington,
> D.C. 20515
>
> Dear Mr. Waxman:

The purpose of this letter is to transmit the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
Competitive Sourcing Efforts as required by Section 647(b) of Division F
of the Consolidated Appropriations Act, Fiscal Year 2004, P.L. 108-199.
The report has been prepared in accordance with Office of Management and
Budget Memorandum M-07-01.

SSA continues to focus on results that create more efficient functions
within the Agency, generate cost savings and improve performance. In FY
2006, SSA completed eight competitive sourcing competitions, which
resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital

![](media/image1.png){width="1.0409722222222222in"
height="1.0409722222222222in"}

[SOCIAL SECURITY]{.underline}

The Commissioner

December 27, 2006

> The Honorable Tom Harkin United States Senate Washington, D.C. 20510
>
> Dear Senator Harkin:

The purpose of this letter is to transmit the Social Security
Administration\'s (SSA) Report to Congress on Fiscal Year (FY) 2006
Competitive Sourcing Efforts as required by Section 647(b) of Division F
of the Consolidated Appropriations Act, Fiscal Year 2004, P.L. 108-199.
The report has been prepared in accordance with Office of Management and
Budget Memorandum M-07-01.

> SSA continues to focus on results that create more efficient functions
> within the Agency, generate cost savings and improve performance. In
> FY 2006, SSA completed eight competitive sourcing competitions, which
> resulted in improved service and increased efficiency for the Agency.

Through a measured, consistent approach to competitive sourcing, SSA
provides 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 2006 Competitive Sourcing Activities Summary
>
> Tab B - Projected Number of FTEs Scheduled for Competition in FY 2007
>
> Tab C - Alignment of Competitive Sourcing and Human Capital
>
> **Narrative Statements**
>
> **Total Projected Number of Full-time Equivalents Scheduled for
> Competition in Fiscal Year** 2007
>
> • The Social Security Administration plans to analyze activities
> involving 317 full-time equivalents (FTE) in fiscal year 2007 for
> potential competition.
>
> **Alignment of Competitive Sourcing and Human Capital**

SSA has taken several steps to ensure that its competitive sourcing
plans and human capital plans are aligned and complement each another.
SSA has developed a comprehensive Human Capital Plan (HCP) that fully
supports the PMA on the Strategic Management of Human Capital. The HCP,
which is aligned with the Agency Strategic Plan, sets our course for
achieving measurable human capital results that will not only improve
the service we provide, but also provide accountability for all of our
human capital activities. The HCP references SSA\'s Competitive Sourcing
Human Resources Plan and SSA\'s Labor Relations Strategic Plan. These
plans outline alternatives for employees affected by competitive
sourcing and offer strategies for placing, hiring, training, and
accommodating affected employees. The SSA Labor Relations Strategic Plan
addresses labor relations obligations and issues arising from
competitive sourcing activities. Activities in the HCP are tracked
quarterly through SSA\'s Future Workforce Transition Plan.

The Office of Competitive Sourcing consults with SSA\'s Office of Human
Resources (OHR) to identify the retirement rates for various functions
that are suitable for competition. OHR also identifies the extent to
which functions are occupied with persons with disabilities. This
information is used in considering functions for competitive sourcing.
SSA\'s competitive sourcing plan supports the Agency\'s efforts to hire
and promote people with disabilities. (In FY 2006, the Agency hired
4,355 permanent and temporary employees, of which 261 were people with
disabilities; bringing the overall percentage for this group to 7.9% of
the total workforce). As new functions are considered for study, SSA
evaluates the effect that competition will have on this significant part
of our workforce, working to ensure employees with disabilities are not
adversely affected by any of the Agency\'s competitions.

> When a study is announced, OHR also works with the component
> developing the Performance Work Statement to identify a specific
> transition plan for employees involved in the competition. These
> transition plans include identifying potential positions where
> employees could be redirected, as well as skill gap assessments and
> training.
>
> On an agency-wide scale, OHR has been actively working for many years
> to identify and properly plan for the influence that the impending
> retirement wave will have on the Agency\'s ability to deliver
> services. The primary document that captures this effort is the
> \"Retirement Wave Analysis.\" This document is updated annually and
> shared with all staffs, including the Office of Competitive Sourcing,
> and can be used to help determine whether a function is a potential
> candidate for a competitive sourcing study.

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height="5.700694444444444in"}

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