PROJECT SUMMARY
Office of Management and Budget (OMB) Circular A-76 is the Federal government's primary competitive sourcing program. Under this program, agencies identify the services which they require, and invite private sector proposals for these services through a formal solicitation process. At the same time, the Government identifies the optimal means of performing that services with in-house resources, through reengineering of current work processes and organizations. Based upon the reengineered in-house operation (the "MEO", or Most Efficient Organization) the Government prepares a cost estimate for its future performance of the services. The total cost of in-house and contract service provision are then compared, and the Government implements the most cost-effective mode of performance.

Described thusly, the A-76 program may sound simple, but actual execution of A-76 studies has frequently been problematic. Studies sometimes take so long that they are cancelled before completion (by law, A-76 studies in the Department of Defense cannot exceed four years duration), and the process is frequently perceived as biased or subject to manipulation.

In March 1997, the U.S. Army Training and Doctrine Command (TRADOC) initiated the largest A-76 study ever attempted, a nationwide review of in-house Public Works and Logistics functions at all TRADOC installations. The work performed by almost 4,500 positions would be studied, as shown below. As an additional complication, functions being relocated by the BRAC closure of Fort McClellan were included.

To ensure the success of this ambitious project, TRADOC formed a Headquarters-level Commercial Activities Team and employed an innovative scheme of centralized study management to facilitate consistent and equitable study processes. A consulting firm, Management Analysis, Incorporated (MAI) was retained to assist TRADOC. Due to the large and complex nature of the study, and the multiple locations, MAI was required to prepare more than 200 analytical and descriptive reports over the course of the study.

The study was completed, at every site, with the Congressional timelines. A mix of contract and in-house services was selected, reflecting TRADOC's fair and equitable approach to the study process. The Army has formally recognized over $113 million in annual, recurring savings from this study, in addition to quality and process improvements. This study is an extraordinary example of the potential benefits from a well-managed public-private partnership program.

Originality: Innovative Concepts
The TRADOC study concept included a new management approach to A-76, under which HQ TRADOC provided centralized management for the concurrent study effort at 12 installations. This enabled TRADOC to employ consistent, equitable study processes and complete the largest A-76 study ever attempted (4,484 FTE) within the Congressionally-mandated four-year study period.

Quality: Design Improvements or Superior New Products/Services
The TRADOC study has achieved recurring savings, formally recognized by the Department of the Army, of over $113,000,000 per year. In addition, TRADOC's performance-based approach to the A-76 solicitations allowed both private sector bidders and Government MEOs to introduce improved work processes at the installation level, improving the quality of service to military personnel.

Implementation: Efficient and Cost Effective Operation
Implementation of the new, improved service organizations at the various TRADOC sites occurred on a staggered basis, between February 2000 and January 2002. All of the new service organizations are in place and performing at the designated quality levels.

Economics: Appreciable Cost Savings or No Additional Costs
The TRADOC study has achieved recurring savings, formally recognized by the Department of the Army, of over $113,000,000 per year. Annual savings by location are as follows:

Public-Private Partnership
OMB Circular A-76 is a competitive sourcing program which uses competition between public and private sector bidders to reduce cost and improve service quality in Government programs. TRADOC's even-handed management of this program resulted in a mix of contract decisions (nine) and in-house wins (three), with maximum benefit to the U.S. taxpayer and installation service recipients.