The Army is halting ongoing in-sourcing plans, effective immediately, according to a memo from Army Secretary John McHugh released earlier this week.
In its place, McHugh said any plans to phase private contractor positions into in-house government ones would have to cross his desk.
âIn an era of significantly constrained resources, the Army must approach the inÂ-sourcing of functions currently performed by contract in a well-reasoned, analytically based and systemic manner,â he said in the memo.
So, going forward, all in-sourcing proposals must be âfully documented and justified,â the memo states. âAny proposal will include, at minimum, a manpower requirements determination, an analysis of all potential alternatives to the establishment of permanent civilian authorizations to perform the contracted work, certification of fund availability and a comprehensive legal review.â
The memo was first released by industry group the Professional Services Council, which has offered praise for McHughâs plan, saying it represents the âright approach to in-sourcing,â in the words of PSC President and CEO Stan Soloway.
âWe have said all along that all sourcing decisions for clearly commercial work — whether insourcing or outsourcing — must be done strategically with the best interests of the government mission and American taxpayer in mind,â he added.