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Contracting

Transmittal Letter to the President of the Senate for EPA’s 2006 Competitive Sourcing Report

January 19, 2006

The Honorable Richard B. Cheney
President of the Senate
Washington, D.C. 20515

Dear Mr. President:

I am pleased to submit the U.S Environmental Protection Agency’s (EPA) 2006 Competitive Sourcing Report as required by Section 647(b) of Division F of the Consolidated Appropriations Act, FY 2004, P.L. 108-199. For the first time, EPA received a rating of “green” from the Office of Management and Budget (OMB) for its competitive sourcing efforts reported for the third quarter of fiscal year 2006. EPA continued to receive a rating of “green” from OMB for the fourth quarter of 2006 as well.

EPA announced 11 competitions totaling 145 full-time-employee equivalents (FTE) to be competed in 2006. EPA completed 16 streamlined competitions covering 121 FTE in 2006 with anticipated savings of approximately $11.2 million over the next five years. This is an average annualized savings of over $18,000 for each FTE competed. In fiscal year 2007, EPA estimates that it will announce competitions including approximately 260 FTE.

Throughout 2006, the Agency continued to implement a coordinated approach to the President’s Management Agenda. Senior staff responsible for each initiative met monthly to discuss progress, as well as to identify areas for cooperation and integration. By aligning responsibility and accountability for both the competitive sourcing and human capital initiatives in the same Presidential appointee (the Assistant Administrator for Administration and Resources Management), EPA ensures appropriate coordination of these closely tied initiatives.

If you have any questions or comments on the Report, please contact me or your staff may contact James Blizzard in the Office of Congressional and Intergovernmental Relations at (202) 564-1695.

Sincerely,

Luis A. Luna
Assistant Administrator

Enclosure