SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Richard B. Cheney President of the Senate Washington, D.C. 20510

Dear Mr. Vice President:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004

The Honorable J. Dennis Hastert Speaker of the House of Representatives Washington, D.C. 20515

Dear Mr. Speaker:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004

The Honorable E. Clay Shaw
Chairman, Subcommittee on Social Security Committee on Ways and Means
House of Representatives
Washington, D.C. 20515

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Robert T. Matsui House of Representatives Washington, D.C. 20515

Dear Mr. Matsui:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004

The Honorable Tom Davis
Chairman, Committee on Government Reform
House of Representatives Washington, D.C. 20515

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004

The Honorable Henry A. Waxman House of Representatives Washington, D.C. 20515

Dear Mr. Waxman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Susan M. Collins
Chairman, Committee on Governmental Affairs United States Senate
Washington, D.C. 20510

Dear Madam Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Joseph I. Lieberman United States Senate Washington, D.C. 20510

Dear Senator Lieberman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Charles E. Grassley Chairman, Committee on Finance United States Senate
Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Ralph Regula
Chairman, Subcommittee on Labor, Health and Human
  Services, and Education 
Committee on Appropriations 
House of Representatives 
Washington, D.C. 20515
Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable David R. Obey House of Representatives Washington, D.C. 20515

Dear Mr. Obey:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Max Baucus United States Senate Washington, D.C. 20510
Dear Senator Baucus:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Tom Harkin United States Senate Washington, D.C. 20510
Dear Senator Harkin:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

SOCIAL SECURITY
The Commissioner
December 22,2004
The Honorable Arlen Specter
Chairman, Subcommittee on Labor, Health and Human Services and Education Committee on Appropriations
United States Senate
Washington, D.C. 20510

Dear Mr. Chairman:

The purpose of this letter is to transmit to you the Social Security Administration's (SSA) Report to Congress on Fiscal Year (FY) 2004 Competitive Sourcing Efforts as required by the Consolidated Appropriations Act of Fiscal Year 2004. The report has been prepared in accordance with the Office of Management and Budget's (OMB) guidelines.

The FY 2004 OMB guidance adds several new elements to the FY 2003 instructions to improve the usefulness of the data collected. Included in this year's report are competitive sourcing activities that have been completed in FY 2004, achieved cost savings and/or quantifiable performance improvements on competitions completed in FY 2003, and fixed costs for FY 2004.

SSA continues to be focused on results that create more efficient functions within the Agency, generate cost savings and improve performance. In FY 2004, SSA completed two competitive sourcing competitions involving a total of 77 full time equivalents (FTE). One of those competitions, the Systems Help Desk competition resulted in an Agency win with a cost lower than baseline cost by $35,364,000, over the five year performance period. This competition enabled the Agency to place FTEs in areas of need, allowing SSA to better serve the American public.

Through a measured, consistent approach to competitive sourcing, SSA is continuing its efforts in becoming a "most efficient organization" in order to provide better service to the American public.

If there are any questions concerning the report, your staff may contact Myrtle S.. Habersham, Chief Strategic Officer at 410-965-7401.

Enclosures:
Tab A - FY 2004 Competitive Sourcing Activities Summary
Tab B - Narrative Statements on:
Projected Number of FTEs Scheduled for Competition in FY 2005 How Savings Were Calculated for Each Competition
How Fixed Costs Were Determined
Tab C - Alignment of Competitive Sourcing and Human Capital

Narrative Statements
Total Projected Number of Full-time Equivalents Scheduled for Competition in Fiscal Year 2005
The Social Security Administration estimates that approximately 343 full-time equivalent (FTEs) will be scheduled for competition in Fiscal Year 2005 based on the Green Plan sent to OMB on September 29, 2004. SSA will conduct these competitions in FY 2005, if sufficient funds are available.
Savings Calculations

In accordance with the OMB Report to Congress guidance, SSA will identify estimated savings by determining the cost of performing the function prior to announcement (baseline cost). When the study is announced COMPARE software will be used to develop the baseline cost estimate. Savings are calculated by subtracting the winning bid offer (i.e. the Agency tender or the private sector bid) from the baseline cost.

SSA believes that service improvements realized from competitions will allow components to increase productivity/accuracy/service to the public. Components will report annually on these types of improvements based on the performance standards identified in the performance work statement.
Fixed Cost Calculation Methodology

In accordance with the OMB Report to Congress guidance, fixed costs represent the cost of a fully dedicated staff associated with providing central direction and oversight of the Agency's competitive sourcing program.
The Agency's fixed costs include:
•	General support contractor costs for developing SSA's competitive sourcing guides and the Competitive Sourcing Tracking System, consulting on A-76 guidance, assisting in developing lessons learned, providing general competitive sourcing training and non-competition related services, etc.

•	The FTE cost of full-time dedicated staff, including fringe benefits and overhead, associated with providing central direction and oversight of SSA's competitive sourcing program (i.e., Office of Competitive Sourcing staff and Office of Acquisition and Grants Contracting Officer for competitive sourcing).
•	
Alignment of Competitive Sourcing and Human Capital

One of the ways the Agency has strengthened the needed infrastructure for competitions is the use of a cross-component Competitive Sourcing Workgroup. Representatives from the Office of Human Resource (OHR) are active participants along with representatives from all of SSA's components. The workgroup supports SSA's competitive sourcing effort in a variety of ways such as assisting in the development of the FAIR Act Inventory, updating lessons learned, developing competitive sourcing guidance, providing feedback on OMB guidance, and serving as a link to Agency components in the area of competitive sourcing.

OHR has assigned members of its various staffs to work with the employees conducting and/or affected by studies that are either planned or underway. OHR helps to identify and address skills imbalances, competency gaps and organizational redundancies that may affect either the proposed or the actual study. For instance, career counselors have worked with staff in areas that are under study to identify and schedule general skills training and personnel specialists have helped to identify methods for creating organizations in areas that are under study which will more effectively and efficiently deliver the services that are being studied.

On an agency-wide scale, OHR has been actively working for many years to identify and properly plan for the influence that the impending retirement wave will have on its ability to deliver services. The primary document that captures this effort is the "Retirement Wave Analysis." First done in 1998, this analysis has been updated every 3 years since, and we are now moving to annual updates.

"The Retirement Wave Analysis" helps SSA to identify potential skills imbalances and competency gaps, with an eye towards helping Agency executives address these before they actually occur. In preparing this document, which is shared with all SSA components, including the Office of Competitive Sourcing (OCS), we are always aware that competitive sourcing is one of the approaches that should be considered when determining how best to address these losses.

We monitor SSA success in addressing the potential problems identified in the "Retirement Wave Analysis" via the "Future Workforce Transition Plan (FWTP)." This document contains a number of specific activities that have been identified as necessary to stay ahead of the potentially negative impacts of the retirement wave. The "FWTP" is updated quarterly and reflects, among other information, reorganization/restructuring activities, skills gaps analyses, training and competitive sourcing activities. Again, this document is shared with the OCS.

Finally, OHR has developed a "Human Capital Plan (HCP)" in support of the President's Management Agenda item on the Strategic Management of Human Capital. The "HCP," which has also been shared with OCS, is aligned with the Agency Strategic Plan. It indicates that the Agency is using competitive sourcing studies to examine various methods for providing high-quality, citizen centered service.

The "HCP" includes SSA's "Competitive Sourcing Human Resources Plan," which outlines alternatives for employees who are displaced as a result of competitive sourcing such as the use of career counselors to provide guidance in establishing a new career. It also includes SSA's

"Labor Relations Strategy for Competitive Sourcing," which addresses possible strategies for meeting the labor relations obligations arising from competitive sourcing. These items are addressed in the Workforce Planning and in the Strategic Alignment sections of our "HCP."

Alignment of Competitive Sourcing and Human Capital

One of the ways the Agency has strengthened the needed infrastructure for competitions is the use of a cross-component Competitive Sourcing Workgroup. Representatives from the Office of Human Resource (OHR) are active participants along with representatives from all of SSA's components. The workgroup supports SSA's competitive sourcing effort in a variety of ways such as assisting in the development of the FAIR Act Inventory, updating lessons learned, developing competitive sourcing guidance, providing feedback on OMB guidance, and serving as a link to Agency components in the area of competitive sourcing.

OHR has assigned members of its various staffs to work with the employees conducting and/or affected by studies that are either planned or underway. OHR helps to identify and address skills imbalances, competency gaps and organizational redundancies that may affect either the proposed or the actual study. For instance, career counselors have worked with staff in areas that are under study to identify and schedule general skills training and personnel specialists have helped to identify methods for creating organizations in areas that are under study which will more effectively and efficiently deliver the services that are being studied.

On an agency-wide scale, OHR has been actively working for many years to identify and properly plan for the influence that the impending retirement wave will have on its ability to deliver services. The primary document that captures this effort is the "Retirement Wave Analysis." First done in 1998, this analysis has been updated every 3 years since, and we are now moving to annual updates.

"The Retirement Wave Analysis" helps SSA to identify potential skills imbalances and competency gaps, with an eye towards helping Agency executives address these before they actually occur. In preparing this document, which is shared with all SSA components, including the Office of Competitive Sourcing (OCS), we are always aware that competitive sourcing is one of the approaches that should be considered when determining how best to address these losses.

We monitor SSA success in addressing the potential problems identified in the "Retirement Wave Analysis" via the "Future Workforce Transition Plan (FWTP)." This document contains a number of specific activities that have been identified as necessary to stay ahead of the potentially negative impacts of the retirement wave. The "FWTP" is updated quarterly and reflects, among other information, reorganization/restructuring activities, skills gaps analyses, training and competitive sourcing activities. Again, this document is shared with the OCS.

Finally, OHR has developed a "Human Capital Plan (HCP)" in support of the President's Management Agenda item on the Strategic Management of Human Capital. The "HCP," which has also been shared with OCS, is aligned with the Agency Strategic Plan. It indicates that the Agency is using competitive sourcing studies to examine various methods for providing high-quality, citizen centered service.

The "HCP" includes SSA's "Competitive Sourcing Human Resources Plan," which outlines alternatives for employees who are displaced as a result of competitive sourcing such as the use of career counselors to provide guidance in establishing a new career. It also includes SSA's

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"Labor Relations Strategy for Competitive Sourcing," which addresses possible strategies for meeting the labor relations obligations arising from competitive sourcing. These items are addressed in the Workforce Planning and in the Strategic Alignment sections of our "HCP."