News Release

OPM Director James Keynotes the Human Resources Outsourcing Conference and Exposition

Praises federal workers, spotlights the distinction between competitive sourcing and outsourcing, discusses OPM audit authority, and announces reinvigorated training for federal contract managers

Washington, D.C. - During her keynote address at the 2003 Human Resources Outsourcing World (HRO World) Conference and Exposition held in New York City, U.S. Office of Personnel Management (OPM) Director Kay Coles James thanked the federal work force for all it has done and continues to do. James also described the steps the federal government is taking to ensure that its work force remains in "fighting form."

The HRO World Conference and Exposition is for human resource executives, chief financial officers, chief operating officers, controllers, government officials, and industry executives. Approximately 2,000 people attended the conference with companies such as Mellon HR Services, Exult, and Aon Consulting HRO being represented.

"Our agency is responsible for the protection of the Merit System Principles, ensuring Veterans' Preference, guarding against prohibited personnel practices and promoting workforce diversity in the Federal workforce," stated James. "The American civil service workers toil in the service of our country. They serve every day, but on September 12, 2001, the Federal employees here in New York and Washington had the option to stay home. But they chose not to. They came back to work. They returned to their jobs because they knew it was their responsibility to help protect our country and to honor those who fell on that dark day two years ago. More than a million acts of quiet defiance by the government workers who never hear the applause or see their names in the paper."

Addressing the confusion over competitive sourcing, Director James said "There is quite a bit of confusion in Washington about the words 'competitive sourcing' and 'outsourcing' today. To be clear, competitive sourcing is the process. Outsourcing is one of the possible outcomes of the competitive process. Our CEO, my boss, our President, wants competition. It doesn't matter who wins the competition as long as the winner can do the job and be held accountable."

In addition, James described the need for oversight to ensure that competitive sourcing is successful.

"Before anything else, there must be oversight and accountability. The competitive sourcing of federal human resource functions will be successful only if the program managers in the federal government are trained, engaged and accountable. Gone are the days when an outsourcing contract is signed and the federal managers walk away only to check in occasionally to see how things are going. As OPM Director, I have the authority to audit human resource contracts to ensure that performance standards are met. Never is that more relevant or important than as it concerns issues of national security. And I will exercise that authority. Not just to catch someone on either side of the contract, but to fix the problem and get the job back on track and working efficiently," James continued.

"Before there was an OPM Director, there was a Civil Service Commissioner. That post was once held by future-President Theodore Roosevelt, so I have a very distinguished legacy to uphold," James added. "As the Director of OPM, I have the authority to audit human resource contracts to ensure that performance standards are met. And I will exercise that authority. I believe in competitive sourcing and I believe in the federal work force. Our role is to determine who can do the job better. It truly is how can we help you, not how can we catch you. Competitive sourcing will work with efficient and focused oversight. And we will insist on professional oversight on every contract," James added.

"To ensure that professionalism, I am instructing our Federal Executive Institute and our Management Development Centers to begin now to train and retrain a new cadre of program managers. We will equip them with the skills to manage a relationship, not just the contract. We will make sure they establish partnerships with their peers in the procurement industry. We will make certain their training includes working side-by-side with private procurement executives. It is necessary in our wired world that they see through the prism of the entire industry, not just from inside government looking out. Given the critical responsibility of contract oversight which our managers must have, I have also directed our policy staff to review the classification definition of our contracting officers. Their skills must include the ability to work inside partnerships and relationships, to understand and manage people and to take a strategic management view of their role in the agency's mission," James commented.

In closing, James thanked the attendees for their hard work and long hours, and she reminded them of the public service's key distinction:

"Our logo is the American flag. It is red, white and blue, and it represents our history, our future and our promise to the American people to perform as best we can on their behalf. And we would hope and require nothing less from you," said James.

OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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