Federal agencies face a complicated set of decisions in finding the right mix of gov¿t. and contractor personnel to conduct their missions. But, agencies face challenges with increased reliance on contractors to perform core agency missions. A March 2009 Presidential memo tasked the Office of Mgmt. and Budget (OMB) to take several actions in response to this concern. This statement discusses: (1) civilian agencies' development and implementation of guidelines to consider whether contracted functions should be brought in-house -- a process known as insourcing; (2) OMB's proposed policy on work reserved for fed. employees; (3) challenges agencies face in managing the federal workforce; and (4) key tools available for insourcing. Illustrations.

Since the 1980s, the language used around market-based government has muddied its meaning and polarized its proponents and critics, making the topic politicized and controversial. Competition, Choice, and Incentives in Government Programs hopes to reframe competing views of market-based government so it is seen not as an ideology but rather as a fact-based set of approaches for managing government services and programs more efficiently and effectively.