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06 New Toolsfor Implementing ME Os

New Tools for Implementing "Most Efficient Organizations" in the Federal Government

The Academy Panel is pleased to present this record of the proceedings of the Symposium on Implementing “Most Efficient Organizations” (MEOs) in the Federal Government.

Focus Area: Performance Management

Sponsor: Forum

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Key Findings

MEOs are the separate organizations within an agency that the agency is required to establish when it wins a competition with the private sector to perform a function the agency was previously doing.

Recommendations

This bidding process is called “competitive sourcing,” and it is conducted in accordance with Circular A-76 issued by the U.S. Office of Management and Budget and in accordance with the Federal Activities Inventory Reform Act. Under the President’s Management Agenda, very large proportions of federal employees in most agencies are subject to this process—on the order of 50-75 percent of all the employees in many agencies. And up to now, the agencies have been winning the awards 80-90 percent of the time. As a result, many new MEOs can be expected to be established over the coming decade.