MEMORANDUM FOR:  DOE FEDERAL EMPLOYEES

 FROM:  BRUCE M. CARNES
               DIRECTOR, OFFICE OF MANAGEMENT, BUDGET
               AND EVALUATION/CHIEF FINANCIAL OFFICER

 SUBJECT:   Department of Energy Competitive Sourcing Initiative

During the fiscal year 2003 Department of Energy (DOE) Budget rollout, the Secretary announced that the Department would be conducting Competitive Sourcing reviews on about 1,000 Federal positions.  I want to take this opportunity to explain to DOE employees where we are going with this initiative.

Competitive Sourcing is one of the Administration’s five Management Agenda items designed to make the Government market-based, while encouraging innovation in its operation.  Like all other Federal agencies, DOE has been tasked by the President to subject 15 percent of our Federal Activities Inventory Reform Act (FAIR Act) positions performing commercial activities to public-private competition during FY 2002 and 2003. 

In preparing the statutorily-required inventory in 2001, each DOE Element identified all of the positions that could be performed by the private sector -- essentially those functions and activities that are not inherently governmental in nature.  A portion of the inventory will be subjected to analysis to determine whether to have these functions performed in-house by DOE employees in a more efficient way, to arrange to have them provided by another Federal agency, or to contract-out the functions to the private sector.  Experience elsewhere in the Federal government demonstrates that this effort will lead to significant cost savings, whether the competition is won by Federal organizations or the private sector.

The Secretary has designated me with the lead responsibility for the Competitive Sourcing program as the Chair of the Competitive Sourcing Executive Steering Group.  This Group will include representatives from organizations whose support is needed for the success of this initiative, including the Under Secretary for Energy, Science and Environment, the Under Secretary for Nuclear Security, General Counsel, Congressional and Intergovernmental Affairs, Public Affairs, affected line organizations, and representation from our unions.  The newly established Competitive Sourcing/A-76 Office directed by Mr. Dennis O'Brien, within the Office of Management, Budget, and Evaluation/CFO, will exercise day-to-day management of this effort. 

While no one can predict how this initiative will affect individual employees performing the functions that will be studied, I want everyone to know that there are no foregone conclusions other than delivering more to the U.S. taxpayer as a result of this effort.  You can review a listing of responses to frequently asked questions on Competitive Sourcing by visiting DOE’s Competitive Sourcing/A-76 Office website at www.ma.mbe.doe.gov/A-76, and obtain additional information on this effort by contacting the A-76 hotline (202-586-1761) or through the e-mail address (A76@hq.doe.gov). 

Attached are a listing of the functional areas and team leaders for the competitive sourcing studies, and a listing of the number of positions by location based on the 2001 FAIR Act Inventory full-time equivalent data for the functional areas under study.  Team Leaders will work with employees and Union Representatives, as appropriate in the conduct of these studies.

The Secretary and I ask that you positively engage in our efforts to enhance DOE mission accomplishment and reduce operational costs.  We will keep everyone informed as the Department moves further along in this process.

Attachments

Team Chiefs (A)        Attachment B