FOR IMMEDIATE RELEASE
Shoddy Work Put Employees and Public in Unsafe Situations
been rampant since the contract was fully implemented on
The Forest Service’s reported estimated savings of over $20 million in FY 2005 includes savings of $1.7 million for this contract, now in default. However, other savings figures included in this estimate are just as suspect as the figure used for fleet maintenance. The Whitehouse just released its Report on Competitive Sourcing Results, Fiscal Year 2005, in which government-wide FY 2005 annualized gross savings of $375 million were claimed. This composite figure is based on reports such as those provided by the Forest Service.
Because of concerns that competitive sourcing is wasting taxpayers’ money and destroying the capacity of the agency, the General Accountability Office (GAO) will begin an audit of the Forest Service program this summer. And yet, citing results such as the fleet maintenance contract as successes, the Forest Service currently plans to perform outsourcing studies on two-thirds of its workforce over the next three years.
“This fleet management competitive sourcing story is just the tip of a very large iceberg,” stated Rick Brown, National Federation of Federal Employees President. “The administration claims savings while hiding huge off-the-books costs. This wholesale privatization of the Forest Service must stop before it is too late. Not only are we wasting untold tax dollars, but we are putting Forest Service workers and American citizens at serious risk.”
To see the Forest Service briefing on termination of the contract, go to
To see the Forest Service “Cure Notice” detailing performance problems, go to
To see Forest Service estimates of “savings,” go to
To see the memo from
For more info on the GAO audit, go to
* Note: The termination for default was subsequently changed to a termination “for convenience.” According the contracting officer who oversaw the contract, this decision “was ordered from well above us here.” This means the agency, and ultimately the American taxpayer, will be liable for a contract termination fee to be paid to Serco. It also means that Serco’s record will not be blemished and its ability to procure more government work will not be affected by the company’s performance in maintaining the Forest Service California fleet.