Why is the Department of the Interior engaging in competitive sourcing?
We are always looking for ways to provide better value to our customers. We are also always looking for ways to work smarter so we can free up cash to reinvest in our mission. The Federal Activities Inventory Reform Act (FAIR) of 1998 requires that Federal agencies annually provide the OMB and the Congress a list of commercial functions they perform that are not considered inherently governmental. In FY 02/03, OMB required all agencies to begin to study their commercial functions. The results of the FY 02/03 studies at Interior yielded annual savings of $2.4 million at a one-time cost of $2.1 million. This has produced new cash for the bureaus to use to restore facilities, fight invasive species, and invest in other priorities. In FY 04, we completed 8 studies including 5 streamlined and 3 standard studies. DOI employees won all 8 studies with a projected annual savings of $3.155M at a one-time cost of $1.498M with the expectation that the annual savings will continue over at least the
