2. Roadmap for Today I ntent: Provide an industry perspective on the Government insourcing initiative to facilitate industry and government discussions. Focus: –Overall Perspective –Benefits/Detriments to Industry –Benefits/Detriments to Government –Benefits/Detriments to Affected Employees –Detriment to Local Community/Economy

3. Overall Perspective No Consistent Application of Intent Appears Execution is Ahead of Department Planning Cost Assessment of Contractor versus Civil Service not Consistent –Contractor Costs: Total Cost Accountability –Civil Service Costs: Cost Fragmented Across Budget Agency Salary Benefits Facilities Management Costs Has Consideration Been Given to the Economic Impact of this Program?

4. Benefit/Detriment to Industry BENEFIT DETRIMENT Government “Friendly Face”Lost Revenue Potential to Put Small Businesses Out of Business Impact on ROI Recruiting Costs B&P Costs

5. Benefit/Detriment to Government BenefitDetriment Regain Control of Inherently Government Positions- Realize Efficiencies More Employees Empowered to Represent Government Stability in Workforce Savings Realized from Fewer Acquisition Requirements Potential to Hire Known/Proven Performer Loss of Intellectual Capital Loss of Tenured, Experienced Contractors Loss of Flexibility on Composition/Quality of Work Force Reduction in Responsiveness to Fill New/Vacant Positions Potential Increase in Costs

6. Benefit/Detriment to Employees BenefitDetriment Employment Stability Tenure Protection Benefit Stability Salary Protection Ability to Perform Inherently Government Positions Loss of Tenure with Contracting Company Loss of Job Not Qualified/Competitive for Civil Service Position Stresses Work Force Future Job Security? What Are My Options?

7. Detriment to Local Community/Economy Local Community: Loss of Private Industry Tax Revenue Economy: –Loss of jobs ( Both direct and indirect) –Decreasing Revenue = Drop in Stock Prices for Publicly Traded Companies = Drop in Dividends and Lost tax Revenue