DoD Outsourcing Thought Leadership?

Someone recently alerted POGO to an absurd contract that helps to illuminate the problem of contractors potentially having too large of a role in government operations, with some contracts asking contractors to perform inherently governmental functions.  Forbes provides the most recent example in a $260 million Defense Department contract for CACI International to support their Business Transformation Agency effort to provide "thought leadership and change management."  Pushing aside how "thought leadership" recalls aliens and UFOs, it's worth comparing it to the Federal Acquisition Regulations (FAR) definition of inherently governmental functions, which lists examples such as "the determination of agency policy, such as determining the content and application of regulations, among other things," "the determination of Federal program priorities for budget requests," "the direction and control of Federal employees," and "determination of budget policy, guidance, and strategy."  Without seeing the contract, we can't be sure that "thought leadership" encompasses any of these examples, but if it doesn't, what is $260 million worth of thought leadership and change management buying?

Surprise!  We sent the transition team advice on making sure that the outsourcing of governmental functions doesn't put contractors in the improper position of advancing private interests ahead of the public good:

The new President should make it a priority to assess the extent to which outsourcing of previously governmental functions has undermined accountability, effective management, and policy-making in federal agencies.  Transition team members and new appointees should review FAIR Act inventories, protests, and job descriptions over the past decade, as well as interview career employees and agency ethics officers, to identify instances of improperly privatized inherently governmental functions.  Regulations need to be strengthened to prevent future instances of problematic outsourcing, and any identified inherently governmental positions should be promptly filled by public servants.

Contractors performing arguably inherently governmental functions is one of POGO's ongoing investigations, and this blog has raised concerns before about CACI assisting the General Services Administration (GSA) to process their backlog of suspension and debarment cases.

But the real question is, if DoD shouldn't be getting their thought leadership from CACI International, where should they get it from?  In addition to carefully selecting the next leadership team and trying to tap and build up competency within the agency, we'd suggest that they review our newly revamped website and the Transitions page that the Government Accountability Office just put together.  The GAO site breaks down their recommendations--and supporting reports--into urgent issues, agency-by-agency issues, management challenges across the government, major cost-saving opportunities, upcoming reports on major issues, and a long-term fiscal outlook.  DoD should be thrilled to see that in addition to their own agency-specific page, the GAO is looking out for them by highlighting defense spending and defense readiness as two of the most urgent issues facing the federal government.

If anyone knows more about this contract or contracts like this, contact us at msmithberger@pogo.org or 202-347-1122.

-- Mandy Smithberger