Fed. agencies rely on a multisector workforce composed of fed. employees and contractor personnel to perform services as they carry out their missions. Determining whether to obtain services through insourcing with current or new fed. employees, outsourcing with private sector contractors, or co-sourcing with a combination of the two is an economic and strategic decision. The exec. branch has encouraged fed. agencies since the mid-1950s to obtain commercially available services from the private sector when outsourcing is cost-effective. This report identified: (1) actions taken to assist affected agencies as they develop insourcing guidelines; and (2) the status of selected civilian agencies' efforts to develop and implement insourcing guidelines.

Civilian Agencies' Development and Implementation of Insourcing Guidelines

Federal agencies face a complicated set of decisions in finding the right mix of gov¿t. and contractor personnel to conduct their missions. But, agencies face challenges with increased reliance on contractors to perform core agency missions. A March 2009 Presidential memo tasked the Office of Mgmt. and Budget (OMB) to take several actions in response to this concern. This statement discusses: (1) civilian agencies' development and implementation of guidelines to consider whether contracted functions should be brought in-house -- a process known as insourcing; (2) OMB's proposed policy on work reserved for fed. employees; (3) challenges agencies face in managing the federal workforce; and (4) key tools available for insourcing. Illustrations.

The Government-Industrial Complex analyzes the federal government's blended workforce of 9 million civil service, contract, and grant employees. Noted Government reform expert Paul Light explores the history of this blended workforce, explains its rise from Reagan to Trump, and outlines a process for promoting accountability across the government-industrial divide.