DLA to realize diminished savings from costly competition

DLA is outsourcing 102 federal civilian jobs to GENCO Infrastructure Solutions of Pittsburgh under a $12.7 million deal finalized Sept. 20, one month after the federal employees were notified of GENCO’s win. No protests were filed against the award, according to DLA.

High competition costs related to delays resulting from base realignment and closure decisions significantly decreased the net savings, said Ken McLain, a DLA competitive sourcing program manager. DLA had tried to cancel the competition but the Pentagon denied the request, he said.

The competition began in February 2005 and took longer than the 18-month maximum allowed under Office of Management and Budget Circular A-76, which governs public-private job competitions. It also exceeded a 30-month statutory limitation on the competitions.

This makes the competition illegal and diminishes the accuracy of the data used to estimate the workload and savings for the competition, according to the American Federation of Government Employees, which represented the workers involved in the competition. The union will not oppose the decision because it does not have standing to do so, said Diana Price, a policy analyst.

DLA is working with the employees to determine who will be eligible for early retirement, relocation in the federal government or jobs with the contractor, according to Jack Hooper, a DLA spokesman.

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