Last year, a plan to bring mostly white collar jobs held by contractors in-house was released by the Obama administration, arguing that government employees could do the same work cheaper.
Here’s one such in-sourcing battle.
The USAF said in January it would take over management of the C-17 supply chain in FY2012, essentially firing Boeing from the job after a 12-year run. Responsibility for managing the F-22’s supply chain also will be transferred from Lockheed Martin to the USAF. The decisions mean hundreds of millions of dollars in program integration costs will shift from industry balance sheets to government accounts.
For months, industry officials argued privately with senior USAF officials, questioning the methodology used to justify a claim that in-sourcing the C-17 maintenance and logistics would yield $250 million annually.
As for the Navy and Army, they plan to increase the use of performance-based contracts to maintain weapon systems.