In the agency's first-ever government-contractor standard competition, NASA selected the in-house team, called the Most Efficient Organization (MEO), to provide metallic test article development and general and precision machining services to its Hampton, Va., facility.

NASA's Langley Research Center conducted a public-private competition under the Office of Management and Budget (OMB) Circular A-76. Langley civil servants had previously performed this work.

A reorganized group of civil servants will provide development support, manufacturing, assembly and integration of wind tunnel and other models, model modifications and components, space flight hardware, aircraft flight test hardware, test facility hardware, instrumentation, fixtures, and modifications and repairs to existing research hardware and test facilities.

The estimated five-year cost for this work is $9.3 million, representing a savings over current operations of approximately $4 million over the life of the agreement. Phase-in of the agreement will begin in mid-January 2005 and last for 120 days, followed by a three-year base period and two one-year options.

OMB Circular A-76 outlines a process to determine the most efficient and effective way to conduct a particular activity, whether with government or contractor resources. The A-76 competition is an example of "competitive sourcing," a key component of the President's Management Agenda. In this competition, the in-house team was determined to be the "best value" to the government, based on an evaluation of its technical/management approach and proposed cost.

As part of the competitive process, the agency developed a Most Efficient Organization (MEO) representing its most efficient and cost effective approach to providing the services. Rather than a contract, a formal agreement, or "Letter of Obligation," is executed with the Agency for the MEO to provide the services in accordance with specified requirements.

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