The Honorable Richard B. Cheney

President of the Senate

Washington, DC 20510

Dear Mr. President:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Susan M. Collins

Chair

Committee on Homeland Security and Governmental Affairs

United States Senate

Washington, DC 20510

Dear Madame Chair:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable J. Dennis Hastert

Speaker

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Speaker:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Joseph I. Lieberman

Ranking Minority Member

Committee on Homeland Security and Governmental Affairs

United States Senate

Washington, DC 20510

Dear Senator Lieberman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Tom Davis

Chairman

Committee on Government Reform

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Chairman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Henry A. Waxman

Ranking Minority Member

Committee on Government Reform

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Waxman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Richard Shelby

Chairman

> Subcommittee on Commerce, Justice, Science
>
> And Related Agencies

Committee on the Appropriations

United States Senate

Washington, DC 20510

Dear Mr. Chairman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Barbara A. Mikulski

Ranking Minority Member

Subcommittee on Commerce, Justice, Science

> And Related Industries

Committee on the Appropriations

United States Senate

Washington, DC 20510

Dear Senator Mikulski:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Frank R. Wolf

Chairman

Subcommittee on Science, the Departments of State,

Justice, and Commerce, and Related Agencies

Committee on the Appropriations

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Chairman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

> Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Alan B. Mollohan

Ranking Minority Member

Subcommittee on Science, the Departments of State,

> Justice, and Commerce, and Related Agencies

Committee on the Appropriations

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Mollohan:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

> Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Ted Stevens

Chairman

Committee on Commerce, Science and

> Transportation

United States Senate

Washington, DC 20510

Dear Mr. Chairman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Joe Barton

Chairman

Committee on Energy and Commerce

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Chairman:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

> Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable Daniel Inouye

Ranking Minority Member

Committee on Commerce, Science and Transportation

United States Senate

Washington, DC 20510

Dear Senator Inouye:

Enclosed is the Department of Commerce's (DOC) Report to Congress on
fiscal year (FY) 2005 competitive sourcing efforts. This report is
provided in accordance with section 647(b) of the Transportation,
Treasury, and Independent Agencies Appropriations Act, FY 2004 (Division
F of the Consolidated Appropriations Act, P.L. 108-199) and
supplementary guidance issued by the Office of Management and Budget
Memorandum M-06-01, dated October 7, 2005.

The Department realized \$4.804 million in savings as the result of its
prior years competitive sourcing efforts.

While DOC did not announce or complete competitions in FY 2005, the
Department did initiate a large-scale feasibility study approach to
increase efficiencies and provide analysis on whether an activity is a
good candidate for competition based on return on investment (ROI)
findings. If final analysis shows a good basis for ROI, then the
activity moves into the pre-planning phase. The long-term vision for
achieving "green" status is to institutionalize this approach, with the
Department and bureaus partnering to conduct the analysis and prepare
functions for pre-planning. These efforts also involve human capital
officials who help to address core competency gaps as they are
identified in studies, determine whether the private sector can provide
service in a way that is most valuable to the taxpayer as well as the
agency as a whole, encourage departments to develop their most efficient
performance plans, and achieve and monitor savings.

In FY 2005, DOC identified two candidates for competition that will
enter the pre-planning phase during the next few months. The
pre-planning efforts will focus on approximately 100 FTEs.

Sincerely yours,

Mike S. Sade

Director, Office of Acquisition Management and

Procurement Executive

Enclosure

The Honorable John D. Dingell

Ranking Minority Member

Committee on Energy and Commerce

U.S. House of Representatives

Washington, DC 20510

Dear Mr. Dingell:

Enclosed is the Department of Commerce's Report to Congress on Fiscal
year 2004 competitive sourcing efforts. This report is provided in
accordance with section 647(b) of the Transportation, Treasury, and
Independent Agencies Appropriations Act, FY04 (Division F of the
Consolidated Appropriations Act, P.L. 108-199) and supplementary
guidance issued by the Office of Management and Budget (OMB) Memorandum
M-05-01), dated October 15, 2004).

The enclosed spreadsheet summarizes DOC's completed and announced A-76
competitions for the period of FY2004. In addition to the direct costs
and savings associated with FY04 competitions, there are also costs
associated with maintaining a centralized oversight and management
office within the Department (Office of Acquisition Management).

DOC has two on-going competitions at NOAA that will be finished within
FY2005. In FY05, DOC also plans to conduct feasibility studies for 168
positions. As soon as those studies are complete to ensure their
viability, we will be able to provide the FTE numbers to be competed and
other relevant information. Additionally, we are also working with the
bureaus to document their business process reengineering efforts
underway this fiscal year to capture those efficiencies and submit these
efforts (under the deviation process) to OMB for credit consideration.

DOC also continues to recognize the opportunities inherent in
Competitive Sourcing as it relates to human capital management. As a
result, CS and HR are partnering to ensure our efforts fit in/support
Office of Human Resources Management's (OHMR) human capital efforts. To
that end, an OHRM representative has a seat on all CS-related
board/groups and both offices have committed to making this a joint
effort. Given the close link between the CS and human capital
initiatives, DOC continues to use Competitive Sourcing, where
appropriate, for scenarios such as: (1) addressing core competency gaps
as they are identified in studies, and (2) encouraging departments to
develop their most efficient performance plans.

Please contact me at (202) 482-4951 if you have any questions. Thank you
for your continued support of the Department of Commerce and its
programs.

> Sincerely yours,

Otto J. Wolff

Chief Financial Officer and

Assistant Secretary for Administration

Enclosure