Posted on: Wednesday, November 14, 2001

Army finds in-house work cheaper than outsourcing

By William Cole
Advertiser MIlitary Writer

The Army yesterday told more than 400 civilian workers that a lengthy study confirms it is most efficient to keep their jobs in-house rather than contract them out to a private corporation.

However, 64 workers will be laid off as part of the "Most Efficient Organization" effort, said Maria Santiago Lillis, a spokeswoman for the International Association of Machinists & Aerospace Workers, Local 1998.

The union represents 234 trades workers, among them welders, grass cutters, electricians, plumbers and mechanics, at Schofield Barracks, Fort Shafter and Pohakuloa Training Area on the Big Island.

Pacific Support Group, a limited liability corporation, bid $95.3 million for the work, while the Army concluded it could do the job with in-house civilian workers for $78.6 million, Lillis said.

The announcement is the result of a more than three-year Commercial Activities study ordered by the Defense Department with the purpose of improving efficiency in government operations.

"We are pleased with the result," Lillis said. "But at the same time, we're very concerned about commercial activities studies — particularly in this state — because (they affect) work that's been done by government employees for many years."

The Army, which called the outcome an "in-house win," said laid-off employees will be eligible for job placement assistance. Pacific Support Group can appeal the decision.