![[logo] US EPA](http://www.epa.gov/epafiles/images/logo_epaseal-aara.gif "United States Environmental Protection Agency"){kind=logo}
January 19, 2006
The Honorable Richard B. Cheney
President of the Senate
Washington, D.C. 20515
Dear Mr. President:
I am pleased to submit the U.S. Environmental Protection Agency’s (EPA) 2005 Competitive Sourcing Report as required by Section 647(b) of Division F of the Consolidated Appropriations Act, Fiscal Year (FY) 2004, P.L. 108-199. During FY 2005, EPA announced competitions totaling 39 full-time-employee equivalents (FTE) to be completed in 2006. EPA completed one standard competition covering 26 FTE and six streamlined competitions covering 26 FTE in 2005. In fiscal year 2006, EPA estimates that it will announce competitions involving a total of 285 FTE.
In its 2003 Competitive Sourcing Report, EPA documented the completion of three streamlined competitions covering 38 FTE. The performance decision in each competition was for continued in-house performance based on the existing organization, and therefore no anticipated savings were reported. However, the Agency continues to monitor performance and costs associated with the competed work and is pleased to report that the work is being performed within the estimated costs and meeting performance standards. In FY 2004, EPA completed one streamlined competition for a single FTE. The performance decision resulted in private sector performance of the function, with the Agency realizing $3,837 in savings in FY 2005 as a result of this decision.
In FY 2005, EPA completed its first standard competition covering 26 FTE performing vendor payments throughout the Agency. This competition was used to address organizational redundancies in our financial services arena. The resultant Most Efficient Organization, which consolidated vendor payment functions from eight locations into a single payment center, is expected to save $3.5 million over the five-year performance period. EPA also completed five streamlined competitions, covering 23 FTE, performing clerical services. In all five competitions the decision was for continued in-house performance. Savings associated with these competitions is expected to be $122 thousand over the next five years. Lastly, EPA competed 3 FTE performing programming services in New York. As a result, work will be retained in-house with the existing organization performing the work.
EPA used 2005 to build a long-term competition plan that will address redundancies or skill imbalances within the Agency. The long-term planning was achieved through active participation by EPA’s senior managers throughout the fiscal year. These same managers will now monitor the implementation of their decisions during the upcoming year.
Throughout the past year EPA continued to implement a coordinated approach to the President’s Management Agenda. Senior staff responsible for each initiative met monthly to discuss progress as well as to identify areas for cooperation and integration. By aligning responsibility and accountability for both competitive sourcing and human capital activities to the same Presidential appointee (the Assistant Administrator for Administration and Resources Management) EPA ensures appropriate coordination of these closely tied initiatives. The Agency supports the Administration’s effort to provide a more efficient and effective government through a coordinated approach to the President’s Management Agenda and continues to explore opportunities for improved performance and cost reduction.
If you have any questions or comments regarding the Report, please contact me, or have your staff contact James Blizzard in the Office of Congressional and Intergovernmental Relations at (202) 564-1695.
Sincerely,
Luis A. Luna
Assistant Administrator
Enclosure
ABOUT ADMINISTRATION AND RESOURCES MANAGEMENT
