Reasons for and against contracting out

Original Assignment question: What are some reasons for and against contracting out? Additionally, what are reasonable items to contract out?

Assignment: Respond to the 3 students below. Responses should be a minimum of 150 words and include direct questions.

STUDENT 1: Steven

According to this week’s reading, the following are reason for contracting out and against contracting out (Gilbreth, Harry, Kankey, Williams, 2005).

Reasons for not contracting out:

-inherently gov’t functions such as cost expenditures or obligating the government

-current manpower resources are sufficient and the personnel are qualified

-concern with handling proprietary information

-could negatively impact competition

-not cost efficient

-unsatisfactory contractor performance

Reasons for contracting out:

-meet workload requirements

-inability to hire adequate resources to meet workload

-contracting out is faster than hiring to meet workload

-ability to select specific expertise required

-bridge to hiring permanent employees

-most cost effective

As for the reasonable items that could be contracted out, the way that I look at it, is that in business you take what your niche is, and concentrate on that.Everything else you would contract out.

In my facilities practices throughout my daily activities, I think that I deal with this quite a bit.The building management I work with for my building focuses on managing the property, and contracts out the daytime cleaning, HVAC preventive maintenance, and security.These are just a few examples of items that are contracted out that are part of our lease. Other things that would be contracted out would be electricians or trade craftsman such as plumbers, painters/drywall repair.These would be contracted out, as there would not be a need to have these person’s on staff full-time due to the lack of the constant need.This would not be cost effective.

In the Civil Engineering world of the USAF, there is the BIG 3 … grounds maintenance, refuse collection and disposal, custodial requirements.Now granted, that this does not represent a situation that is solely operated upon by the USAF, as I am sure that most every military branch follows the same, if not very similar actions (Personal interview with LtCol Seth Hamilton, Sr Contracting Officer, JSF).

References

Gibreth, A. S., Harry, B. R., Kankey, R. D., & Williams, J. S. (2005, November). CONTRACTING OUT PROCUREMENT FUNCTIONS: AN ANALYSIS. Retrieved from https://edge.apus.edu/access/content/attachment/37…

STUDENT 2: Adam

In order to answer the question of what are some reasons for and against contracting out, we are going to identity what “contracting out” means. According toMerriam-Webster, contracting out is to agree by contract to pay someone outside an organization to perform (a job).The reason for contracting out are as follows but not limited to, opening public services up to competition can save the tax payer money, private sector businesses more likely to achieve efficiency improvements and cost savings are leading to improving value for their money and lastly business in the private sector might b more innovative, less hierarchical and less prone to suffering from diseconomies for scale. Now, for the reasons why not to contract out areas follows but not limited to, businesses bidding to win contracts might sacrifice quality of service as a way of lowering their cost, doubts about some employment practices of service companies and lastly requires proper monitoring which itself involves extra spending.

Within the Coast Guard they contracted out to one of three shipyards to compete in the chanceto land a contract potentially worth $10 billion to build up to 11 offshore patrol cutters, or OPCs, for the Coast Guard. While one shipyard hasn’t built Coast Guard boats in generations, the cutters would be similar in size to the Navy guided missile frigates the shipyard churned out alongside destroyers for years. The two other Gulf Coast shipyards competing against the Coast Guard contract – Bollinger Shipyards in Lockport, Louisiana, and Eastern Shipbuilding in Panama City, Florida which is a smaller, more diversified, nonunion yards located in a lower-cost area of the country. In addition, Bollinger already builds fast-response cutters for the Coast Guard as part of a 34-ship contract, which also won the outsourcing contract for the OPC’s.

 

STUDENT 3: Kirby

Hello Class,

Already we are at Week 7! This course has really flown by! I am really hoping to get a lot of work completed early here as I am finishing 2 courses and working on mid-terms in two other courses, so bear with me as this next week is going to be quite busy for me. This week we were asked, what are some reasons for and against contracting out? Additionally, what are reasonable items to contract out?

From what I could understand from our reading, there portions of work that could be contracted out to other vendors or sources. As long as those services are not an “inherently government function”. Our reading defines inherently government functions as “a function that is so intimately related to the public interest as to mandate performance by Government employees. This definition is a policy determination, not a legal determination. An inherently governmental function includes activities that require either the exercise of discretion in applying Government authority, or the making of value judgments in making decisions for the Government. Governmental functions normally fall into two categories: the act of governing, i.e., the discretionary exercise of Government authority, and monetary transactions and entitlements.” (Gilbreth, Harry, Kankey, Williams, 2005). To use my current job as an example, working in the housing office, we manage all the homes on post for the government. When it comes to deciding if additional housing needs to be built, that would be an inherently government function. However, while managing the homes that become vacant, we as the housing office, can contract out specific tasks such as, electrical work, contracting repairs in the home, flooring, or cleaning, in order to get homes completed and re-rented quicker. An example would be that if we only used in house cleaners, construction workers, or flooring techs, it could take anywhere from 14-25 days to turn a home. However, if we contracted out flooring and cleaning, we might be able to finish a home in 10-14 days. Therefore, reducing the length of time a home sits vacant as well as the lost rent in waiting for that home to be finished. However, a negative side to contracting services out, could lead to losses due to faulty work or even workers not upholding post policies. These negative actions could lead to delays in services being completed or even lawsuits.

V/R

Kirby

Gilbreth, A., Harry, B., Kankey, R., & Williams, J. (2005). Contracting out procurement functions: an analysis. Retrieved from: https://edge.apus.edu/access/content/group/374466/…

 

Last Updated on September 21, 2018 by EssayPro