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What is competitive sourcing?

competitive Sourcing
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What is competitive sourcing?

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Competitive Sourcing is a process to determine the most cost effective method of obtaining services that are available in the private sector. It involves a competition between a Government workforce and commercial sources. The process is defined in the Office of Management and Budget (OMB) Circular A-76. When a function has been selected to undergo a Competitive Sourcing study, it does not mean the function has been predetermined to be contracted out rather it means that the function will be subject to a cost comparison, and only the result of the cost comparison can dictate whether the function will be retained in-house and continue to be performed by Government personnel or whether the function will be performed by a commercial vendor.

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Competitive sourcing is the process by which the federal government determines whether functions described as “commercial in nature” are best provided by government personnel, private sector, or by another agency through a fee-for-service agreement.

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Competitive sourcing is a process to determine the most cost effective method of obtaining services that are available in the commercial market. The process is defined in OMB Circular A-76.

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