United States House
Washington, DC 20515
-- or --
United States Senate
Washington, DC 20510
I am writing to make you aware of contracting out problems at HUD. Under the FAIR Act, the agency has published a list of jobs that are considered “commercial” and could be contracted out. Our union challenged many of the positions on the list, setting forth a detailed list of job functions that we believe are either inherently governmental or so closely tied to protecting the financial and public interest of the government that they should not be contracted out.
The agency responded to the challenge with a blanket denial. They conducted no close review of the work performed. It is our experience that HUD uses this same method to contract out work—a blanket statement of work without regard to the actual work performed or the cost. Thus, the quality of work suffers, payments are exorbitant and the contractors are the winners. For example, the Inspector General has confirmed that the agency used an inflated cost analysis to support its decision to contract out oversight of Section 8 project-based contracts in our Office of Multifamily Housing (see #99-PH-163-0002). These contracts cost hundreds of millions of dollar more than if the work was done by HUD employees.
The mandatory contracting out quotas being imposed by OMB make this situation worse. The quotas make it less likely that agencies will decide on a case-by-case basis what works best for taxpayers and the agency’s customers. Pushing to meet hard quotas, agencies will not have the time to carefully prepare statements of work or consider the actual costs.
Please look into contracting out problems at HUD, and oppose OMB’s mandatory contracting out quotas. And please let me know what your position is on contracting out.
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