Packaging
Packaging, also called “business unit definition” is the process of deciding which
commercial activities will comprise the cost comparison and how they will be structured
into an organized business unit suitable for competition. Effective packaging is
the critical first step that ensures competition will be maximized during the cost
comparison process. Packaging is related to the annual OMB and DoD Inventory of
Commercial Activities, since the packaging process first requires a decision about
what functions are competeable and can be included in the cost comparison.
What does the term “packaging” mean?
Packaging refers to the bundling of functions/activities that defines the scope
of the strategic sourcing effort.
When and how is packaging done?
Packaging should occur prior to public announcement. The Component should determine
and analyze the workload and tasks of the functions/activities that are not considered
competable (e.g., inherently governmental or exempt). The remaining functions/activities,
those that are competable, should then be grouped; this grouping defines the scope
(functions, number of positions) of the strategic sourcing effort. The scope defines
the package. Components should groups functions together in a manner that is consistent
with good business practices; ensuring that grouping unlike or fragmented functions
into one study package does not reduce or inhibit competition. For example, grouping
a public works function with an information technology function may hinder competition
since few companies have experience in both of these fields. A business case analysis
of these functions may conclude that two A-76 cost comparisons would provide the
biggest benefit to the government (assuming consideration is not being given to
a whole-base or base-operating-support study), even though it is recognized that
larger studies produce larger savings. Experience has proven that a detailed analysis
prior to the public announcement is essential. The lack of upfront analysis increases:
the risk of significant delays in the study process, consultant support costs, and
employee stress during the process.
Is an Economic Impact Statement required when over 75 employees are impacted
by a study?
Per 10 USC 246(b)(3)(B) [see
http://www4.law.cornell.edu/uscode/10/2461.text.html,
an economic impact statement
is required when an in-house function is converted to the private sector for functions
performed by 51 DoD employees or greater. The impact statement is required for both
employees and the local community.
Resources:
Policy
Guides And Recommended Readings