Competitive Sourcing: Report on Competitive Sourcing Results Fiscal Year 2004

In FY 2004, agencies completed 217 competitions involving 12,573 full-time-equivalent employees (FTEs). These competitions have served as a catalyst to improve quality and lower the cost of government performance through consolidation of activities, process reengineering, workforce realignment, and better leveraging of technology. These improvements are estimated to generate net savings or cost avoidances totaling approximately $1.4 billion over five years. When combined with the $1.1 billion expected from competitions completed in the prior year, the competitive sourcing initiative has positioned agencies to save more than $2.5 billion for redirection to higher priorities or deficit reduction. Estimated annual net savings per FTE studied was approximately $22,000 for competitions completed in FY 2004 -- nearly double the estimated net savings from competitions completed in FY 2003.