Under the buzzwords "competitive sourcing," the Bush administration is leaning harder on federal agencies to review which tasks are "inherently governmental" and which should be put up for competitive bid. The result of those reviews could be more work for construction industry firms, primarily for engineering firms and those contractors that provide building maintenance and management services.
The "privatization" push takes effect in early January, as the federal Office of Management and Budget implements changes to its 36-year-old Circular A-76, which outlines policies for determining when agencies should contract out. OMB proposed in a Nov. 19 draft Federal Register notice to expand "public-private competition" by doing away with exceptions that let agencies do work for each other on a reimbursable basis. It also wants to give agencies more flexibility to use quality as a factor in procurements. OMB could incorporate into the final directive public comments received as of Dec. 19, but still anticipates an early January effective date.