Core Competency and Risk Assessment : A Strategic Approach to Determine Which Commercial Activities Are Appropriate for Competitive Sourcing

The federal government spends more than $230 billion annually for products and services. Taxpayers pay this expense, and they are entitled to the maximum value for their tax dollars. The first step in securing maximized value is to determine which activities should be performed by government employees and which activities are appropriate for competition. This paper discusses the competitive sourcing process. It focuses on the first step in this process, which is the distinction between activities that must be performed in-house and activities that are appropriate for competition. As stewards of taxpayers' money, government officials must use an approach that optimizes performance and value. The best approach is a strategic one. By using long-range strategic planning, agencies can ensure they retain the ability to perform core competencies. They can also analyze the potential risks of contracting out a particular activity. The result is a well informed decision on whether an activity is appropriate for competitive sourcing.Air Force Inst of Tech Wright-Patterson AFB OH School of Engineering and Management is the author of 'Core Competency and Risk Assessment : A Strategic Approach to Determine Which Commercial Activities Are Appropriate for Competitive Sourcing', published 2004 under ISBN 9781423586463 and ISBN 1423586468.