According to the Office of Management and Budget, every dollar spent on competitive sourcing during fiscal 2004 will produce $20 in savings! Agencies conducted 217 competitions, involving 12,573 full-time equivalents, in the last fiscal year, generating savings of $1.4 billion during the next five years, the report states–and $2.5 billion if previous years savings competitions are included. Competitions were yielding savings of 27 percent!
Geoffrey Segal is the director of privatization and government reform at Reason Foundation, a nonprofit think tank advancing free minds and free markets. He is also editor of Reason's Privatization Watch.