U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

2007 Presidential Award for Management Excellence

U.S. Department of Health and Human Services

Competitive Sourcing
Governmentwide Management Initiative

The U.S. Department of Health and Human Services (HHS) is the United States Government's principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves.  The mission of the HHS Competitive Sourcing program is to encourage competition in the management and performance of commercial activities; provide transparency, fairness and integrity in public-private competitions; and empower Federal managers to make sound and justifiable business decisions. 

The HHS Office of Competitive Sourcing (OCS) has developed a “Green Competition Plan” (GCP) which serves as the focal point for the Department's coordinated and considered preparations for public-private competitions.  To promote continuous improvement within the organization, HHS focuses on building an effective information network and on promoting creativity and innovation.  Since 2003, OCS has held monthly Competitive Sourcing Program Managers' meetings to provide managers from each Operating Division an opportunity to discuss best practices, proactive planning efforts, workforce concerns, procedures, and competitive sourcing trends.  HHS was the first civilian Government agency to explore the concept of High Performing Organizations and, in coordination with OMB, to develop a framework for its implementation. 

Since OCS has unprecedented success in demonstrating leadership in the Competitive Sourcing initiative, it has been awarded 13 consecutive quarters of “green” status and “green” progress ratings.  HHS's Office of Competitive Sourcing is expected to generate approximately $440 million in savings over the eight-year period from 2003-2011.  These savings have a real impact on HHS and the Nation, as they are used to further the Department' core mission of providing enhanced resources for HHS programs that improve health and human services across America.  To realize these savings, HHS has completed 96 Competitive Sourcing studies encompassing 4,051 FTEs from FY 2003-FY 2006.  HHS was the first Government agency to independently validate its actual competitive sourcing savings.  HHS conducted four independent savings validations between June 2005 and September 2006. 

The Competitive Sourcing initiative at HHS is generating considerable savings, all of which will be reinvested to enhance the Department's efforts in providing vital human services and improving the Nation's health.