exploring the competitive sourcing environment flicc 2005 content management update carolyn...

Exploring the Competitive Sourcing Environment

FLICC 2005 Content Management Update

Carolyn Helmetsie, NASA Langley Research CenterKaren Kapust, Food and Drug Administration

Held at the Library of CongressSeptember 14, 2005

Competitive Sourcing Overview

The Fair Act OMB Circular A-76 Possible Outcomes Outsourcing Environment Core Competencies Managing Information Resources Panel Discussion

Example of Competitive Sourcing Page

Privatization, Outsourcing, or Contracting Out …

Private sector has provided commercially available services and products since mid-1950s

OMB Circular A-76 Performance of Commercial Activities (1966) Revised May 29, 2003

A-76 has impacted federal libraries (partial listing) Dept. of Energy HUD EPA Labor NOAA NASA FDA

Revised from: “Competitive Sourcing: A Catalyst for Change”, History of Legislation, Jean Conrad, NOAA, January 7, 2005

FAIR Act (Federal Activities Inventory Reform Act)

Passed in 1998: P.L. 105-270 Requires Federal Agencies:

Prepare and submit to OMB by June 30th of each year, inventories of commercial activities performed by federal employees

Submit inventories of inherently governmental activities

Submitted to Congress and published following OMB review

Revised from: “Competitive Sourcing: A Catalyst for Change”. Fair Act, Susan Tarr, Library of Congress, January 7, 2005

Inherently Governmental Activities

A function “that is so intimately related to the public interest as to require performance by Federal Government employees.”

Examples include “ultimate control over the acquisition, use or disposition of the property…of the United States”


Commercial Activities Inventory

All functions in the annual inventory that are “not inherently governmental” Defined as a “recurring service

that could be performed by the private sector...”

Normally subject to competitive sourcing under OMB Circular A-76


Reason Codes for Commercial Activities Inventory

M-05-12 2005 Inventories of Commercial and Inherently Governmental Activities

Possible Function Codes for Library Functions

G010, G102-G105 under Social Services Y850 under Force Mgt & General Support

(not available to civilian agencies) Or possibly under

B – Personnel Mgt C – Finance & Accounting F – Procurement U – Education & Training R – Research, Development, Test & Evaluation


Changes in OMB Circular A-76 Eliminates all direct conversions Establishes mandatory time frames for conducting

competitions Standard Competition – 12 months Streamlined Competition (65 FTE or less) – 90 days

Requires formal announcements of competitions Performance decision

Private sector decision – CO shall award a contract in accordance with the FAR

Agency decision – requires letter of Obligation (equivalent to contract) when Government wins

Requires Agency to track execution and monitor performance

Provides for “best value” selection

Revised from: “Competitive Sourcing: A Catalyst for Change”. OMB Circular A-76. Carolyn Helmetsie, NASA, January 7, 2005

THE STANDARD COMPETITION PROCESSTHE STANDARD COMPETITION PROCESS

Develop And IssueSolicitation

ReceiveOffers

And Tenders

Perform Post Competition

Accountability

MakePublic

Announcement(Start Date)

DevelopOffers AndTenders

Perform Source

SelectionAward Contract

Or IssueAgreement

RECOMPETITION

Preliminary Planning COMPETITION

MakePerformance

Decision(End Date)

THE STANDARD COMPETITION PROCESSTHE STANDARD COMPETITION PROCESS


ReceiveOffers

And Tenders


Accountability

MakePublic



Perform Source


Or IssueAgreement

RECOMPETITION


MakePerformance

Decision(End Date)


ReceiveOffers

And Tenders


Accountability

MakePublic



Perform Source


Or IssueAgreement

RECOMPETITION


MakePerformance

Decision(End Date)

Source: OMB Circular No. A-76 May 29, 2003, B-6

THE STREAMLINED COMPETITION PROCESSTHE STREAMLINED COMPETITION PROCESS

PerformPost

CompetitionAccountability

MakePublic


DevelopCost

Estimate

Award ContractOr Issue

Agreement


MakePerformance

Decision(End Date)

RECOMPETITION

THE STREAMLINED COMPETITION PROCESSTHE STREAMLINED COMPETITION PROCESS

PerformPost

CompetitionAccountability

MakePublic


DevelopCost

Estimate

Award ContractOr Issue

Agreement


MakePerformance

Decision(End Date)

RECOMPETITION

Source: OMB Circular No. A-76 May 29, 2003, B-4

Civil Service Process Overview

PWS—Performance Work Statement SOW—Statement of Work RD—Requirements Document

The work that needs to be done Includes how often, how many Based on historical statistics as well as future

needs QASP—Quality Assurance Surveillance Plan

The mechanism for implementing the inspection and acceptance clauses in the FAR (Federal Acquisitions Regulations)

Performed by the Government to asses service provider performance

Revised from: “Competitive Sourcing: A Catalyst for Change”, Competitive Sourcing Overview, Gloria Miller, NRL, January 7, 2005

Outsourcing - Possible Outcomes

Remain In-House Most Efficient Organization (MEO)

Contractor Outsourced Mixed

From: “Competitive Sourcing: A Catalyst for Change”, Overview of Possible Outcomes, Linda Parker, Dept. of Labor, January 7, 2005

Most Efficient Organization(MEO)

Karen KapustDirector, FDA Biosciences LibrarySeptember 14, 2005

MEO Presents Government’s in-house

organization Competes with contract bids in response to

PWS Prepared when already decided that library

is a commercial activity Includes: improvements in operation,

reductions in staffing, or other performance improvements

Responds only to task/functions specified in PWS

MEO Validates workload collected in PWS

Documents “As-Is” organization: description, mission, functions, staffing plans, facilities, equipment

Responds to collection of workload statistics, or estimates if no stats to define FTE requirements

Includes position descriptions for staff required to perform the function/operations

Must ensure PD’s reflect librarian competencies, and show value to organization, before tasked to prepare PWS/MEO

MEO Analyzes “As-Is” organization defined in PWS – from a

snapshot in time possibly a year before PWS is prepared; when MEO is awarded, PWS tasks often out-of-date due to technology changes

Determines the “To-Be,” most efficient organization and cost savings with reduced staffing or services

Organization must be adequately staffed to meet workload requirement and perform at acceptable performance level. Monthly QASP (quality assurance surveillance plan) measures performance

Work outside scope of PWS is unauthorized

MEO Involve Human Resources to ensure accurate

job classifications; rewrite PD’s if not reflective of current work

Ensure PD’s contain Librarian competencies required to do the work; competencies need to reflect changes in technology and information management environment, plus be written to reflect future environment

Be prepared! Take opportunity to communicate to senior management what your staff does, their competencies, and their value to the organization, before you are tasked to prepare a PWS and MEO

Outsourcing Defined “Procurement of services from an outside

vendor to perform functions that are NOT core to the mission of the library and for which the library is unable or uninterested in providing for itself”

Business definition: “Outsourcing is the act of transferring some of a company’s recurring internal activities and decision rights to outside providers, i.e. a contract”

What is core activity? What is recurring activity?

Outsourcing Environment

According to ALA: Notion that “libraries are an essential

public good” Responsibility and implementation for

policy making should not be shifted to the private sector in publicly funded libraries

Affirms that publicly funded libraries should remain directly accountable to the publics they serve

Outsourcing Perspectives

Outsourcing of services core to the library’s mission evokes strong reactions

Outsourcing option for libraries - procure capabilities not available internally

Outsourcing core functions threatens institutional viability, diverts local control, and diminishes the value of professional librarians

Future Outsourcing Environment

There will be continuing budget restrictions

There is a focus on the customer and results

Benchmarking of services is essential Fair Act and OMB Circular A-76 will

remain in effect until legislative change

Keep In-House? Outsource? Are the priority processes under consideration

impacting effectiveness of operations? Are the processes mission critical? If so, identify processes reflecting or determining organization’s identity that should be handled in-house

Is service core to relationship with its users, for example, embedded librarians, creation and maintenance of content of web site? Is work qualitative, not quantitative? If so, advocate to maintain in-house

Routine/Recurring Activities

Where specialist suppliers should be able to offer economies of scale

The higher the revenue cost, the greater the potential benefit of outsourcing

Routine tasks easier to specify – not qualitative

Lack of clarity is impediment to outsourcing – if requirements complex, measured by quality, don’t outsource

Making a Case to Keep In-House

Make case for how well you provide your own and your staff’s value and professionalism to your organization

Prove a return on investment to make the case for your library’s needs Maintain the quality of services your users

deserve and expect Contracts may not allow contractors to

change services to meet a community’s changing needs

Library Core Competencies

SLA-defined professional competencies Managing Information Organizations Managing Information Resources Managing Information Services Applying Information Tools and

Technologies

Core Competencies

SLA-defined Personal Competencies Set of attitudes, skills, and values Enable Information Professionals to work

effectively and contribute positively to their organizations, clients, and profession Strong communicators Ability to demonstrate value Remaining flexible and positive in ever-

changing environment

Managing Information Organizations

Interpret implications of information policy, including copyright, licensing

Collaborate with Agency researchers to share knowledge, advise and refine information-seeking skills

Interpret, synthesize, analyze, and deliver information packages

Maintain awareness of Agency political environment, initiatives, mission, and interpret to deliver valued information

Consultants on content management issues

Managing Information Resources Partner with broader communities to

share resources; seek channels to increase breadth of resources

Create collection development policies appropriate to organizational mission

Identify, collect, evaluate, organize, and package content

Analyze user needs, make informed choices about Agency’s core business drivers

Managing Information Services Synthesize information from dispersed sources

to provided targeted services; provide for quality filtering and data transfer

Conduct long-range planning and policy formulation for services and training needs

Ensure optimal use of facilities to accommodate evolving client needs

Train clients in use of information access systems and products

Aggregate content to create and deliver customized products

Applying Information Tools & Technology Design and implement information products

and systems Create, access, and manage databases,

integrated library systems, client-server applications

Evaluate new and evolving technologies Implement and test hardware and software Apply systems thinking to adapt to constantly

changing technologies

FLICC Competitive Sourcing Working Group

Karen Kapust, Food and Drug Administration, Chairperson

Jean Conrad, National Oceanic & Atmospheric Administration

Gloria Miller, Naval Research Laboratory

Carolyn Helmetsie, National Aeronautics and Space Administration

Linda Parker, Dept. of Labor

Donna Ramsey, U.S. Army, Fort Belvoir

Lynne Tobin, National Geospatial-Intelligence Agency

Anna Bohlin, Library of Congress

Lynn McDonald, Library of Congress

Robyn Frank, Executive Office of the President, FEB Representative

Useful Links Outsourcing and Privatization in Libraries

http://www.ala.org/ala/oif/iftoolkits/outsourcing/Default2446.htm

Calling a Change in the Outsourcing Market – The Realities for the World’s Largest Organization. Deloitte Consulting, April, 2005

http://www.deloitte.com/dtt/cda/doc/content/us_outsourcing_callingachange.pdf

Useful Links COTR Handbook

http://www1.va.gov/oamm/acquisition/training/cotrhndbk.pdf

Implementation of the Federal Activities Inventory Reform Act of 1998 (Public Law 105-270) ("FAIR Act")

http://www.whitehouse.gov/omb/circulars/a076/a076tm20.html

2005 Inventories of Commercial and Inherently Governmental Activities

http://www.whitehouse.gov/omb/memoranda/fy2005/m05-12.pdf

Useful Links Share A-76! from DoD,

http://emissary.acq.osd.mil/inst/share.nsf/ especially the “A-76 Cost Comparison Process Model” & “Best Practices”

AcqNet, http://www.arnet.gov/ includes “What You Always Wanted to Know About OMB's Circular A-76”

References White, Herbert, "What price salami?: The

Federal Process of Contracting Out Libraries," Library Journal, January 1988 p.58-57

White, Herbert, "Why Outsourcing Happens, and What to Do about It," American Libraries, January 2000 p.66-61

exploring the competitive sourcing environment flicc 2005 content management update carolyn...

Documents

competitive sourcing

library of congress

fair act omb circular

governmental activities

susan tarr

fair act f ederal

s omb circular

omb review