Pentagon rejects A-76

The Pentagon does not like the limitations of Office of Management and Budget Circular A-76 and wants to develop its own ways of improving mission effectiveness while cutting costs. Pete Aldridge, undersecretary of Defense for acquisition, technology and logistics, expressed that intent in a Dec. 26 letter to then-OMB deputy director Sean O'Keefe.

Aldridge said OMB has been expanding its target numbers for A-76 competitions, which pushes the Defense Department to pursue public-private competitions for 15 percent of all jobs in its Federal Activities Inventory Reform Act listing by fiscal 2003. The competitions are part of President Bush's government reform initiative.

"Rather than pursuing narrowly defined A-76 targets, we propose to step back and not confine our approach to only A-76," Aldridge wrote. "We look for the best instrument available ... to determine the most efficient and effective way to do government business better."

The Defense Department might look at competitive sourcing, re-engineering, divestiture, privatization, public-private partnering or diversification, he said.