FDIC BRINGS CONTRACT WORK IN-HOUSE, SAVES $2.3 MILLION OVER THREE YEARS
FOR IMMEDIATE RELEASE PR-77-96 (9-25-96)
Media Contact: Robert M. Garsson (202-898-6993)
The Federal Deposit Insurance Corporation (FDIC) is
terminating 11 contracts for outside services and bringing the work
in-house. The move will save an estimated $2.3 million over the
next three years and preserve about 50 jobs while the FDIC is the
midst of a downsizing effort.
This action results from a joint seven-month review of 169
contracts by the FDIC and the National Treasury Employees Union
(NTEU). The review's purpose was to determine whether it was
more cost-effective to continue contracting for certain services or
to have FDIC staff perform the same work. The study was
completed in April 1996.
Joint FDIC and NTEU contract review teams used a
standard cost-comparison methodology. The study included an
assessment of the FDIC's capability of performing the contracted
services in-house and a comparative "in-house vs. contractor" cost
The 11 contracts being terminated provide accounting and
information systems support to the FDIC.
In light of the joint review's success, the FDIC and the
NTEU have agreed to conduct joint studies of selected future
contracting efforts as an ongoing part of the FDIC's contracting
process. Both organizations expect their collaborative efforts will
result in continued savings for the Corporation.