Competitive Sourcing

The Department's efforts to determine if current functions can be more efficiently performed by the private sector guides each mode's efforts under this PMA initiative. The Department's plan calls for 35 percent of the Federal Activities Inventory Reform (FAIR) Act inventory to be competed by the end of FY 2004.

Each HTF mode participated in the Department's FAIR Act inventory. Below are the actions taken to identify functions that should be competed and initiation of the competitive process, as appropriate.

FHWA

FHWA conducted feasibility studies to assess baseline costs and potential savings in 26 functional areas encompassing 243 Full Time Permanent positions agencywide. Two areas were selected for competition and those competitions were begun in FY 2004. FHWA also began the transfer of accounts payable and accounts receivable functions to the FAA's operations in Oklahoma. FHWA intends to complete the transition of these functions by the end of calendar year 2004. This transfer supports the Department's efforts to consolidate similar modal functions at the FAA and achieve Department-wide efficiencies.

FTA

In FY 2004, the streamlined competitive sourcing process for FTA's Office of Procurement and Office of Accounting was completed and the studies determined that the Agency's (in-house) most efficient organization (MEO) bid won the competition for procurement and accounting activities.

FTA reviewed other functional areas and the number of positions that will be included in its FY 2005 competitive sourcing studies.

NHTSA

NHTSA completed its first A-76 study, using a standard competitive process of 14 administrative positions in headquarters, 8 of 10 regional field offices, and at the Vehicle Research and Test Center. The Agency's (in-house) MEO bid won the competition. NHTSA is now in the process of identifying future studies and will conduct those in FY 2005.

FMCSA

Approximately 40 percent of FMCSA's existing workforce positions are either identified as commercial or are currently being performed by contract support. FAIR Act Inventories were conducted and reviewed, in conjunction with human capital planning, and as a result, four functions are currently undergoing public-private competitions. All four competitions are scheduled to be completed in FY 2005, with two underway in FY 2004.