Article: Strategic Sourcing, ESOPs, and Nonprofit Privatization.(Employee Stock Ownership Programs, Department of Defense, Department of the Navy)(Statistical Data Included)

Welcome to the brave new world of alternative sourcing approaches, including recent innovations from the Department of Defense.

In April 2000, the Department of Defense (DOD) expanded its commercial activities program, designed to save $11 billion by 2005, to include the new approach of strategic sourcing as an alternative to traditional Office of Management and Budget Circular A-76 (commercial sourcing) cost competitions. The Department of the Navy is the first service to implement this alternative approach, and expects to review 88,000 civilian positions by 2005, with about half being subjected to A-76 cost comparison and about half being studied using the new ...

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