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Appendix D: Executive Summary from "Outsourcing Management Functions"
Pages 99-109

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From page 99...
... For private sector organizations, outsourcing was identified as a strategic component of business process reengineering -- an effort to streamline an organization and increase its profitability. In the public sector, growing concern about the federal budget deficit, the continuing long-term fiscal crisis of some large cities, and other factors accelerated the use of privatization measures (including outsourcing for services)
From page 100...
... Recently, however, in response to executive and legislative initiatives to reduce the federal workforce, cut costs, improve customer service, and become more businesslike, federal agencies have begun outsourcing some management functions for facility acquisitions. The reliance on nonfederal entities to provide management functions for federal facility acquisitions has raised concerns about the level of control, management responsibility, and accountability being transferred to nonfederal service providers.
From page 101...
... Using Section 7.5 of the Federal Acquisition Regulations as a basis, the committee developed a two-step threshold test to help federal agencies determine which management functions related to facility acquisitions should be performed by in-house staff and which may be considered for outsourcing to external organizations. The first step is to determine whether the function involves decision making on important issues (ownership)
From page 102...
... Figure ES-1 is a decision framework developed by the committee for federal agencies considering outsourcing management functions for facility acquisitions. This framework recognizes the constraints of inherently governmental functions and incorporates the committee's two-step threshold for identifying ownership functions that should be performed by in-house staff and management functions that can be considered for outsourcing.
From page 103...
... Yes Should the function No be outsourced? Yes Outsource Do not outsource FIGURE ES-1  Decision framework for outsourcing management functions.
From page 104...
... The committee recommends that federal agencies establish and apply a responsibilities-and-deliverables matrix similar to the example shown in Figure ES-2 to help eliminate overlapping responsibilities, ensure accountability, and ensure that, as problems arise, solutions are managed effectively. DETERMINING PERFORMANCE OUTCOMES A key element of an organization's decision making is measuring the effectiveness of those decisions, both qualitatively and quantitatively.
From page 105...
... ; C, S = support (uses own resources) and S, support (uses own resources)
From page 106...
... Any agency that decides to outsource management functions for planning, design, and construction services should be prepared to develop and apply meaningful, measurable performance measures to determine if it is meeting its stewardship responsibilities. FINDINGS AND RECOMMENDATIONS The primary objective of this study is to develop a guide that federal agencies can use in the initial stages of decision making concerning the outsourcing of management functions for planning, design, and construction-related services.
From page 107...
... However, assistance in discharging these responsibilities may have to be obtained by contracting for services from other federal agencies or the private sector. Finding.
From page 108...
... Recommendation. Federal agencies should first determine their role(s)
From page 109...
... Recommendation. Interagency coordination, cooperation, collaboration, networking, and training should be increased to encourage the use of best practices and improve life-cycle cost effectiveness in the delivery of federal facilities.


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