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Hoyer on Removal of A-76 Federal Employee Outsorcing Provision

November 20, 2004
WASHINGTON, DC - House Democratic Whip Steny H. Hoyer (MD) released the following statement today regarding the removal of a bipartisan, bicameral provision to provide a level playing field for federal employees competing for their jobs (OMB Circular A-76) from the Fiscal Year 2005 Omnibus Appropriations Conference Report:

"I am deeply disturbed that all outsourcing protections for Federal employees were dropped from the Fiscal Year 2005 Omnibus Bill despite strong bipartisan support in the House and Senate to ensure an even playing field for federal employees competing for their jobs against private companies.

"Heavy-handed tactics by the Bush Administration and a compliant Congress once again have thwarted the will of a majority. The Administration simply refused to work together to reach a mutually acceptable compromise.

"Both the House and Senate passed similar amendments to the Fiscal Year 2005 Treasury-Transportation Appropriations Bill earlier this year. These amendments would have had the Office of Management and Budget (OMB) use the previous language until it rewrote the A-76 rules to benefit taxpayers and more equitably balance federal employees' and private companies' interests.

"The new rules for the privatization process are flawed in four ways: (1) they do not mandate that outsourcing of Federal positions and services results in real savings to taxpayers, and may in fact cost taxpayers significantly more once the indirect costs of shifting work to private contractors is taken into account; (2) they do not guarantee Federal employees the right to submit their own best bids; (3) they do not require contractors to show significant savings; (4) they give an unfair advantage to private contractors who provide inferior benefits to their employees.

"American taxpayers, as well as hard-working and dedicated Federal employees, will be the big losers from this Administration's misguided campaign to outsource as many federal positions as possible despite the costs.

"The increasingly autocratic character of this Administration, not just with respect to federal employee rights but all public policy, should be of concern to every American. I hope that the next Republican Congress will remember that it is an equal branch of government and begin standing firm against the White House when taxpayers' interests are at stake."

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