This move at USAID is part of an overall effort via OMB’s Acquisition and Contracting Improvement Plan and Pilotsthat seeks to cut costs, reduce high risk contracts and identify government agencies that may be over-reliant on contractors. It also follows a GAO report that focuses on DoD, State and USAID use of contractors in Iraq and Afghanistan. OMB Watch has a good summary of that report here.
I have written before (see post here) about USAID’s over-reliance on contractors and Allison Stanger’s excellent book, “One Nation Under Contract: The Outsourcing of American Power and the Future of Foreign Policy.” Not all contracts or contractors are bad – but finding the right mix of public and private is an ongoing challenge for the Obama Administration. These moves at USAID are a step in the right direction.