These services range from security operations to nursing care and conducting cost-benefit studies. The circular s basic tenet, established during the Eisenhower administration, is that the government should not compete for business with its citizens but should rely on the private sector for such services. Contractors complain that the competitions used to determine who should do the work are rigged.
Federal employees argue that savings projections are overstated and fail to account for quality.
The program has undergone several name changes over the years, from contracting out, to outsourcing and now competitive sourcing. Both outsourcing and contracting out imply a built-in bias toward shifting work to the private sector. But competitive sourcing suggests a more neutral outcome. The government doesn t care whether federal employees or contractors win, as long as it gets the best deal. The emphasis was on public-private competitions during the Reagan years, and then the program was revived under President Clinton.