The Department of Veterans Affairs is planning to let private firms compete against its own employees to run a property management program, VA officials announced last week.
Since last summer, the agency, with the help of consultant Booz-Allen & Hamilton, has been studying the possibility of putting its Loan Guranty Program's property management operation up for public-private competition under Office of Management and Budget Circular A-76.
In the Loan Guaranty Program, the VA guarantees mortgage loans for veterans so they can obtain home loans with favorable terms, usually without a down payment. The property management operation oversees the acquisition and sale of real estate in the program.
Under A-76, the employees who currently perform property management will attempt to demonstrate they can continue performing the work more efficiently than a private contractor could.
The VA commissioned the A-76 study based on "our recent determination that much of the work of this operation is commercial in nature," said Joseph Thompson, VA under secretary for benefits, in a letter to the House Committee on Veterans Affairs.
On Jan. 18, VA is publishing a draft of its performance work statement (PWS), an outline of duties that contractors and VA employees would compete to perform.
Nationwide, the property management operation employs about 275 full-time employees at 46 VA regional offices and loan centers.
The draft PWS will be available online at www.vba.va.gov/bln/loan/A-76.htm.
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