Sourcing Policy: Statutes and Statutory Provisions

L. Elaine Halchin
Specialist in American National Government

The federal government’s sourcing policy dates to the 1950s with the publication of three Bureau of the Budget bulletins. The bulletins’ emphasis on governmental reliance on the private sector for the provision of goods and services was followed, in 1966, with the publication of Office of Management and Budget (OMB) Circular A-76. Under the circular, commercial activities performed by federal employees are subjected to public-private competition. Until the late 1990s, the executive branch, namely OMB, almost exclusively, led the competitive sourcing effort, issuing revisions to the circular, overseeing implementation of the policy, and providing guidance to agencies.

Another strain, or facet, of sourcing policy emerged during the Administration of President Barack Obama. OMB’s July 2009 memorandum on multi-sector workforce management, combined with legislation and other government documents, laid the groundwork for this approach, which focuses on agencies determining the appropriate mix of federal employees and contractor employees.

Congressional interest and involvement in sourcing policy, as measured by legislation that has been enacted, has grown over the years. Throughout the 1980s and 1990s (93rd through the first session of the 106th Congresses), a total of 10 bills with provisions related to sourcing policy were enacted, including, for example, the Federal Activities Inventory Reform (FAIR) Act (P.L. 105- 270). The 108th and subsequent Congresses experienced a marked increase in the number of bills enacted with provisions involving sourcing policy. To date, 35 bills have been enacted during five Congresses (108th through 112th). Recently enacted provisions have addressed, for example, protest rights for federal government employees, funding limits on competitive sourcing activities, the development of a single consistent definition of “inherently governmental,” and the development of “insourcing” guidelines. This report will be updated if relevant legislation is enacted.


Date of Report: February 15, 2012
Number of Pages: 36
Order Number: RL32833
Price: $29.95

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