A coalition of 36 business and professional groups asks president for moratorium on insourcing

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Thirty-six business and professional groups have signed a letter asking President Obama to issue an immediate moratorium on insourcing.  The coalition backing the move includes the Fairfax County Chamber of Commerce and the 1,200-member Northern Virginia Technology Council, the country’s largest tech council.

In a letter sent to the president, the coalition strongly opposes a directive issued in March 2009 that seeks to convert some of the work currently performed by private-sector contractors to jobs held by federal government employees. “This shift to government performance of commercial activities not only hinders the private sector, including small and minority-owned busienss, but places additional costs on taxpayers during a lengthened period of steep decline in the nation’s economy, a staggering national debt and a high national rate of unemployment.”

The letter urges the president to revise the insourcing initiative throughout the federal government and to use the moratorium period to develop a clear, objective metric for determining the cost-effectiveness of government performance of commercial activities.

A letter with similar sentiments was sent to the Office of Management and Budget by the Business Coalition for Fair Competition, a national group that was also among the 36 letter signers. 

Upcoming stories: Virgina Business takes a look at the insourcing debate and the effect on federal contractors in Northern Virginia in its September issue.

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