insourcing basics
DESCRIPTION
I delivered this presentation to federal government HR staffs in June 2012.TRANSCRIPT
Insourcing Basics
Thomas F KaplanJune 7 2012
Notices
The basis for information in this presentation is US Public Law and US Office of Management and Budget policy You should check with your agency to learn how it implements insourcing
Some of the information contained in this presentation is protected under US Copyright Law
2
Topics
bull What is Insourcing
bull Why Insourcing Now
bull When is Insourcing Required
bull Who is Responsible for Insourcing
bull What is an Inherently Governmental Function
bull What is a Closely Associated with Inherently Governmental Function
bull What is a Critical Function
bull What are Some of the HR Roles in Insourcing
bull Resources
3
What is Insourcing
bull Insourcing is the act or result in changing performance of functions from non-federal employees (eg contractors) to federal employees
bull The opposite of outsourcing or contracting out of functions
4
Why Insourcing Now
bull Insourcing
ndash Returns inherently governmental and closely associated with inherently governmental functions to federal performance and
ndash reduces overreliance on contractors generally due to bull the growth of the contractor workforce and
bull lack of adequate government contractor oversight
ndash Ensures critical functions have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
Source OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
5
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Notices
The basis for information in this presentation is US Public Law and US Office of Management and Budget policy You should check with your agency to learn how it implements insourcing
Some of the information contained in this presentation is protected under US Copyright Law
2
Topics
bull What is Insourcing
bull Why Insourcing Now
bull When is Insourcing Required
bull Who is Responsible for Insourcing
bull What is an Inherently Governmental Function
bull What is a Closely Associated with Inherently Governmental Function
bull What is a Critical Function
bull What are Some of the HR Roles in Insourcing
bull Resources
3
What is Insourcing
bull Insourcing is the act or result in changing performance of functions from non-federal employees (eg contractors) to federal employees
bull The opposite of outsourcing or contracting out of functions
4
Why Insourcing Now
bull Insourcing
ndash Returns inherently governmental and closely associated with inherently governmental functions to federal performance and
ndash reduces overreliance on contractors generally due to bull the growth of the contractor workforce and
bull lack of adequate government contractor oversight
ndash Ensures critical functions have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
Source OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
5
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Topics
bull What is Insourcing
bull Why Insourcing Now
bull When is Insourcing Required
bull Who is Responsible for Insourcing
bull What is an Inherently Governmental Function
bull What is a Closely Associated with Inherently Governmental Function
bull What is a Critical Function
bull What are Some of the HR Roles in Insourcing
bull Resources
3
What is Insourcing
bull Insourcing is the act or result in changing performance of functions from non-federal employees (eg contractors) to federal employees
bull The opposite of outsourcing or contracting out of functions
4
Why Insourcing Now
bull Insourcing
ndash Returns inherently governmental and closely associated with inherently governmental functions to federal performance and
ndash reduces overreliance on contractors generally due to bull the growth of the contractor workforce and
bull lack of adequate government contractor oversight
ndash Ensures critical functions have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
Source OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
5
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What is Insourcing
bull Insourcing is the act or result in changing performance of functions from non-federal employees (eg contractors) to federal employees
bull The opposite of outsourcing or contracting out of functions
4
Why Insourcing Now
bull Insourcing
ndash Returns inherently governmental and closely associated with inherently governmental functions to federal performance and
ndash reduces overreliance on contractors generally due to bull the growth of the contractor workforce and
bull lack of adequate government contractor oversight
ndash Ensures critical functions have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
Source OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
5
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Why Insourcing Now
bull Insourcing
ndash Returns inherently governmental and closely associated with inherently governmental functions to federal performance and
ndash reduces overreliance on contractors generally due to bull the growth of the contractor workforce and
bull lack of adequate government contractor oversight
ndash Ensures critical functions have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
Source OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
5
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
When is Insourcing Required
bull SPECIAL CONSIDERATION FOR CERTAIN FUNCTIONSndash The guidelines and procedures required hellip shall provide for special consideration to be
given to using Federal employees to perform any function that is performed by a contractor and
bull has been performed by Federal employees at any time during the previous 10 years
bull is a function closely associated with the performance of an inherently governmental function
bull has been performed pursuant to a contract awarded on a non-competitive basis or
bull has been performed poorly as determined by a contracting officer during the five year period preceding the date of such determination because of excessive costs or inferior quality or
ndash is a new requirement with particular emphasis given to a new requirement that is similar to a function previously performed by Federal employees or is a function closely associated with the performance of an inherently governmental function
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
6
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Who is Responsible for Insourcing
bull GUIDELINES REQUIRED
ndash The heads of executive agencies subject to the Federal Activities Inventory Reform Act of 1998 shall devise and implement guidelines and procedures to ensure that consideration is given to using on a regular basis Federal employees to perform new functions and functions that are performed by contractors and could be performed by Federal employees
ndash The guidelines and procedures required hellip may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Federal employees
Source PL 110-161 Section 736 Guidelines onInsourcing New and Contracted Out Functions
7
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What is an Inherently Governmental Functionbull A function that is so intimately related to the public interest as to require
performance by Federal Government employees
ndash The term includes functions that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government including judgments relating to monetary transactions and entitlements
ndash The term does not normally includemdash
bull gathering information for or providing advice opinions recommendations or ideas to Federal Government officials or
bull any function that is primarily ministerial and internal in nature (such as building security mail operations operation of cafeterias housekeeping facilities operations and maintenance warehouse operations motor vehicle fleet management operations or other routine electrical or mechanical services)
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions 8
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What is a Closely Associated with Inherently Governmental Functionbull Services in support of inherently governmental functions including but not
limited to the following
ndash Performing budget preparation activities such as workload modeling fact finding efficiency studies and should-cost analyses
ndash Undertaking activities to support agency planning and reorganization
ndash Providing support for developing policies including drafting documents and conducting analyses feasibility studies and strategy options
ndash Others
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
9
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What is a Critical Function
bull The policy letter requires agencies to identify their lsquolsquocritical functionsrsquorsquo in order to ensure they have sufficient internal capability to maintain control over functions that are core to the agencyrsquos mission and operations
bull While contractor performance of critical functions is common if the agency determines that internal control of its mission and operations is at risk due to overreliance on contractors to perform critical functions requiring activities should work with their human capital office to develop and execute a hiring andor development plan
bull Typically critical functions are recurring and long-term in duration
Source Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01
Performance of Inherently Governmental and Critical Functions
10
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What are Some of the HR Roles
bull OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009 states under ldquoAn Initial Framework for Managing the Multi-Sector Workforcerdquo
ndash Workforce Planning
bull Derive workforce needs from organizational goals and
bull Determine skill mix and total labor requirements
ndash Sourcing Determination
bull Determine if work must be performed only by federal employees or may be performed by either federal employees or private sector contractors and
bull Perform a cost analysis if both sectors are being considered for performance of a function
11
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
What are Some of the HR Roles (ctd)
bull Additional roles may include
ndash Identifying inherently governmental and critical functions
ndash Conducting labor market analysis to determine feasibility and timing for potential insourcing actions
ndash Evaluating and adjusting competency models in cases where contractors were utilized in lieu of Federal employees to ensure adequacy and availability of skills
Copyright 2012 Thomas F Kaplan
12
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Summary
bull The agency Chief Acquisition Officer and Chief Human Capital Officer have specific responsibilities for implementing insourcing
bull Agencies must have published insourcing policies and guidelines (since 2009)
bull Inherently governmental functions must (always) be performed by federal employees
bull HR has an important role in implementing insourcing through workforce planning and executing sourcing decisions
Copyright 2012 Thomas F Kaplan
13
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Resourcesbull Public Law
ndash 110-181 Section 324 Guidelines on Insourcing New and Contracted Out Functions (DoD) httpwwwgpogovfdsyspkgPLAW-110publ181htmlPLAW-110publ181htm
ndash 110-161 Section 736 Guidelines on Insourcing New and Contracted Out Functions httpthomaslocgovcgi-binqueryCc111temp~c111T6TWtc
ndash 111-117 Section 743 (a) Service Contract Inventory Requirement httpwwwgpogovfdsyspkgPLAW-111publ117pdfPLAW-111publ117pdf
ndash 105-270 The Federal Activities Inventory Reform Act httpwwwwhitehousegovombprocurement_fairact
bull US Office of Management and BudgetOffice of Federal Procurement Policyndash OMB Memorandum M-09-26 Managing the Multi-Sector Workforce July 29 2009
httpwwwwhitehousegovsitesdefaultfilesombassetsmemoranda_fy2009m-09-26pdf
ndash Office of Federal Procurement Policy (OFPP) Policy Letter 11ndash01 Performance of Inherently Governmental and Critical Functions httpwwwgpogovfdsyspkgFR-2011-09-12pdf2011-23165pdf
bull US Office of Personnel Management Chief Human Capital Officerrsquos Training Academyndash Multi-Sector Workforce Analysis Pilot Project Early Lessons Learned and Emerging Best Practices by Thomas F Kaplan
wwwchcocgovMeetingsDownloadFileaspxMeetingFileID=160
bull US Governmental Accountability Officendash Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists httpwwwgaogovproductsGAO-08-360
ndash Civilian Agencies Development and Implementation of Insourcing Guidelines httpwwwgaogovproductsGAO-10-58R
ndash Initial Agency Efforts to Balance the Government to Contractor Mix in the Multisector Workforce httpwwwgaogovproductsGAO-10-744T
bull Congressional Research Servicendash Insourcing Functions Performed by Federal Contractors An Overview of the Legal Issues httpwwwfasorgsgpcrsmiscR41810pdf
bull US Department of Defensendash DoD Insourcing Initiative Clearinghouse httpprhomedefensegovRSIREQUIREMENTSINSOURCE
bull US Department of Energyndash Multi-Sector Workforce Management Operating Guidelines httpenergygovsitesprodfilesmaproddocumentsMSWF_Op_Gd_Link_1pdf
14
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15
Thomas F Kaplan
Thomas (Tom) retired from federal service in April 2012 His most recent positions was as the Research and Development Program Management Officer for the US Office of Personnel Management Human Resources Solutions Group at their Washington DC headquarters Tom has 28 years of civilian and military headquarters and field activity and private sector technical experience in human capital and human resources financial management procurement and organizational change disciplines Tomrsquos practical hands-on experience spans every phase of developing and executing organizational change strategic human capital plans and multi-sector workforce management efforts to help transform the government into a performance-oriented cost-effective workplace
Tom is the principle author of ldquoThe Human Resources Role in Managing Organization Changerdquo FPMI 1999 and 2003
Tomrsquos copyrighted works include
bull The Human Resources Role in Managing Organization Change 2007
bull Blended Workforce Management Model 2008 httpsaccdaumilCommunityBrowseraspxid=240581amplang=en-US
bull Analyzing and Balancing the Federal Blended Workforce 2008
bull Multi-Sector Workforce Management Analysis and Insourcing Implementation Model 2011
15