This session is sponsored by the Federal Acquisition Institute The primary organization providing knowledge and support to the federal civilian acquisition workforce. For more information about FAI, please visit our website at

Multi-sector Workforce Allan V. Burman, Ph.D President Jefferson Solutions GSA Training Conference and Expo

Federal acquisition workforce trends and issues What is a multi-sector workforce? Managing the multi-sector workforce: Issues and challenges Operational control, outsourcing, insourcing and inherently governmental functions The road ahead and challenges AGENDA 3

Agency roles over time –Direct vs. indirect –Doer vs. overseer –Path ahead Acquisition staffing and contracting dollars –Who works in acquisition? –What has been happening to staff and dollars? –Implications for federal management ACQUISITION WORKFORCE: TRENDS AND ISSUES 4

Types of participants –Federal civilian employees –Volunteers –Uniformed personnel –Contractors Characteristics of each: How do they differ? What are the implications for accomplishing Federal missions? THE MULTI-SECTOR WORKFORCE 5

Issues and concerns: Personal services contracting Ethics and conflict of interest provisions Accountability Agency operational control Inherently governmental functions Human capital strategic plans MANAGING A MULTI-SECTOR WORKFORCE 6

Benefits Ambiguities Legal implications PERSONAL SERVICES CONTRACTING 7

Provisions of 18 USC Code: Acceptance of gratuities Post-employment restrictions Representational restrictions Financial interests Organizational conflicts of interest ETHICS AND CONFLICTS OF INTEREST 8

Who takes responsibility? What controls exist? How effective can they be? ACCOUNTABILITY 9

FY 2009 NDAA, Section 321 Presidential Memorandum re Government Contracting, March 2009 OMB Memorandum re Managing the Multi- Sector Workforce, July 2009 OMB Memorandum re Acquisition Workforce Development Strategic Plan, October 2009 RESTORING AGENCY OPERATIONAL CONTROL 10

OMB March 31, 2010 Federal Register Notice of draft policy with comments due by June 1 st Complaints and concerns –Not clear as to when governmental outsourcing of services is or is not appropriate –No single definition of inherently governmental –No criteria for identifying critical agency functions INHERENTLY GOVERNMENTAL FUNCTIONS: Current Discussion 11

Use existing FAIR Act Definition (PL ) Function that is so intimately related to the public interest as to require performance by Federal Government employees Includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government INHERENTLY GOVERNMENTAL FUNCTIONS: Existing/New Definition 12

“Critical Function,” according to OFPP draft policy letter issued March 2010: Function that is necessary to the agency being able to effectively perform and maintain control of its mission and operations If work is performed by contractors, need active and informed management and oversight of contractor performance INHERENTLY GOVERNMENTAL FUNCTIONS: Critical Function 13

What is needed for plans to be effective? Workforce count and characteristics Full sense of whole workforce Understanding of contributions of various parties Collaboration across agency stovepipes Effective contract management and oversight HUMAN CAPITAL STRATEGIC PLANS 14

Outsourcing –OMB Circular No. A-76 –The FAIR Act Insourcing –OMB Pilot Projects –Defense A Rebalanced Workforce? THE ROAD AHEAD 15

Plan strategically for people –Put in place a robust human capital strategic planning process that provides a full picture of all federal and contractor resources likely to be needed to accomplish agency missions Invest in the right talent –Provide sufficient resources to ensure that the right people with the right talent are in place to carry out all aspects of the acquisition function (including seeing that contractors are producing the business results sought) - Six Practical Steps to Improve Contracting CHALLENGES 16