New Rules Threaten Fed Jobs

Bush Admin. Encourages Private Firms To Compete For Fed Work

(AP)  The Bush administration issued new rules Thursday making it easier for businesses to compete for government work, an effort that could lead to the privatization of nearly half the nation's 1.8 million federal jobs.

“For quality service at the best price, competition beats monopoly every time,” said Mitch Daniels, outgoing director of the Office of Management and Budget.

Government studies show that competition for jobs can save the government almost a third of the cost.

“Whoever wins the competitions, we can be confident that taxpayers will,” Daniels said.

The administration has identified about 850,000 federal jobs that officials say could be performed by the private sector. For now, President Bush has said he wants at least 15 percent of those opened to competition by fall.

In the past two years, 26 agencies have been asked to identify jobs that should be opened to competition. The Energy Department has opened for bid such jobs as graphics design, computer technicians and financial services personnel.

At the Federal Aviation Administration, some 2,700 flight services employees could lose their jobs in a bid process occurring now. Those federal workers provide weather reports to private pilots.

Democrats and labor officials have criticized the idea as union-busting and political favoritism.

Existing new rules hadn't undergone major changes since 1983, and the new rules will guide agencies on how to open the jobs for bids and will simplify the process for companies to participate.

Current federal rules allow for public-private competition, but the regulations are so cumbersome that private firms are often reluctant to seek government contracts, officials said.

The process, which now can take as long as four years, will be shortened to one.

“Those providing top-level service at the best value will win every time,” said Angela Styles, administrator for OMB's federal procurement policy office.

Officials have identified examples of work being performed by government employees that they said probably could be done better and more cheaply by private businesses.

For example, 540 Navy workers make eyeglasses. In the Parks Service, rangers are being used to take money and tickets at the front gates.