The Navy announced today its tentative decision to convert various materials support functions at the Naval Air Depot, Cherry Point, N.C., to contractor performance following a public/private competition process. Pending the results of the A-76 appeal process, a contract will be awarded to the Raytheon Corporation, Falls Church, Va. There were 113 Navy civilian personnel performing the functions before the decision to convert to contract.

This process, known as a Commercial Activity (CA) Study, is governed by the Office of Management and Budget (OMB) Circular A-76, which allows the federal government and the private sector to compete for commercial functions currently performed by the government. The decision to convert the functions to contract was made after a detailed CA study indicated that significant savings of tax dollars could be achieved. The civilian employees affected will receive assistance from federal placement programs in obtaining transfer or re-assignment to other positions in the Department of Defense or to other federal agencies. Civilian employees affected also have the right of first refusal for employment openings on the contract in positions for which they are qualified.

The A-76 appeal submission period begins Jan. 17, 2003, and will last 30 days. Appeal rights and submission procedures were addressed in the public announcement today. All appeals must be received no later than Feb. 18, 2003.