U.S. Chamber Welcomes Bush Management Reform Plan

WASHINGTON, D.C.—The United States Chamber of Commerce praised President Bush's plan to expand outsourcing of government commercial activities by allowing private-sector competition as an important step toward increasing efficiency.

"American business accounts for nearly 90 percent of the output, inventions and innovations in the $9 trillion U.S. economy," said Bruce Josten, Chamber executive vice president. "Yet federal agencies and departments continue to perform countless services and functions that the private sector could perform more efficiently, saving taxpayers billions of dollars annually."

The Bush plan streamlines the procedures that govern whether functions should be performed by the public or private sector and requires agencies to compete with the private sector for functions considered commercial in nature. Under the plan, at least 5 percent of federal commercial activities will be subject to public-private competition next year and an additional 10 percent in 2003.

"Estimates show a 30 percent cost savings every time a federal activity is reviewed for potential private sector performance," said Josten. "The private sector has proven time and again it can perform more efficiently, effectively and at a lower cost than government."

The Chamber has long advocated an increased reliance on the private sector for government commercial activities to reduce the size of government and increase its efficiency by freeing federal agencies to focus on performing their core mission.

Increasing outsourcing opportunities is a top priority for the Chamber's newly formed Privatization and Procurement Council. "Our members are committed to working with the administration and Congress to implement the Bush outsourcing reforms," Josten said.

The U.S. Chamber of Commerce is the world's largest business federation, representing more that three million businesses and organizations of every size, sector, and region.

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