Firms fear job losses as federal agencies insource more contracts

Federal contractors fear they will lose business as a result of new guidance issued by the Obama administration on when federal agencies should reserve work for federal employees.

The Office of Federal Procurement Policy issued a proposed policy letter in March that defines functions that are “inherently governmental” and should be performed by federal employees.

It also calls for federal agencies to give special consideration to using federal employees for functions that are closely associated with inherently governmental functions, and it asks agencies to make sure they have enough employees in-house to manage functions that are critical to the agency’s operations and mission.

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