Outsourcing - another reply

[Lenny Siegel <lsiegel@cpeo.org>]

Subject:Re: Outsourcing
Date: Tue, 30 Jun 1998 10:35:12 -0400
From: "David B. Frazier" <dfrazier@us.net>
To:lsiegel@cpeo.org

Lenny,

I want to try to put this in context from HWAC's perspective. First,
the
history of contracting at DOE provides a number of valuable
lessons-learned. Many of the problems in recent years can be attributed
to the process of evolutionary contracting change. The Management and
Operating (M&O) contractor concept (as I understand it) began out of
necessity during the Cold War, when national security drove the DOE's
contracting needs. Given the needs at the time M&O was first developed
(secrecy, nuclear weapons development), it is no wonder that the
contracting approach developed for M&Os may not work as well for
environmental cleanup. Today, DOE is managing the cleanups at the
Weapons
Complex sites utilizing a variety of contract vehicles. One of the more
effective has been the Management and Integration contract, which
applies
a team-oriented performance-based approach to the cleanup at these
sites.
Also, the focus has changed from operating the sites to cleaning them up
and site closure. I would argue that many of the problems reported are
illustrative of a difficult transition to a better, more cost-effective
approach to cleaning up DOE sites.

It is difficult to draw any connection between DOE's contracting
approaches and DOD's outsourcing plans. It is like comparing apples and
oranges. DOE contractors manage nuclear waste, involving major
environmental, health and national security issues. Although, DOD also
has major environmental and human health challenges to face, they are
looking to outsource certain environmental functions, which they believe
can be done more cost-effectively by the private sector. As with
anything, there are some functions that lend themselves to such an
approach and others that do not. However, given DOD's efficient
contracting approaches, it is not fair to suggest that outsourcing poses
threats that are in any way comparable to DOE's site management
challenges. I think it is healthy to have an open debate about the most
appropriate functions to outsource and the nature of the realtionship
established between the Government and its contractors, but it is also
important to consider all of the information available before making any
sort of judgement about the best way to go. Just my opinion.

David Frazier
Hazardous Waste Action Coalition