Analysis of the Navy's Commercial Activities Program
Published Date: July 1, 1993
Some activities performed by government employees are similar to those performed in the private sector. Government policy -- outlined in Office of Management Budget circular A-76 -- is to allow private sector companies to compete with government organizations for this work. The goal is to use competition to encourage efficiency -- whether the function is contracted out or not. The Navy's Commercial Activities (CA) program is responsible for implementing this competition program within the Navy. Over the last decade, the Navy has studied about 1,000 activities -- covering about 29,000 billets (both civilian and military). Due to changes in legislation, the Navy is not doing any CA studies at this time. In this research memorandum, we examine: (a) the savings achieved as a result of CA studies; (b) whether the initial savings diminished over time; and (c) the prospect for future studies.
