The plan, known sometimes as competitive sourcing or "A-76" from the Office of Management and Budget bulletin that describes the policy, asks all federal agencies to decide which of their positions are "inherently governmental" and which could be performed by a commercial contractor. NIH is required to review 25 percent of these commercial positions by the end of FY 2004 to determine whether current employees in these positions will be required to submit bids for their work that will compete with those from the private sector.

Most of the affected NIH positions are clerical or technical, but many are worried about the plan's possible effect on grant managers, including scientific review administrators (SRAs) and health science administrators (HSAs). Scientists are concerned that private contractors might not have the expertise to handle the technical grants or that they will be more susceptible to outside commercial or political pressure.

Charles Leasure Jr., NIH deputy director for management, says that he believes most SRA and other grant management positions will be found "inherently governmental." He has also said that no NIH employees will ultimately lose their jobs, although they may need to join a contract staff or take another job at NIH or somewhere else in the federal government.

In the meantime, several NIH staff members have said that morale among employees is low due to the plan, and that many are still confused about what their future might hold. E-mail is also circulating among researchers concerned that the A-76 review will siphon money away from NIH's FY 2004 research budget.

The Washington Post reports that NIH employees recently received an additional form for their job performance plans — to be signed by employee and supervisor — that says they "commit to achieve" the HHS management objectives, including A-76.

To read more information about A-76 from HHS and NIH, go to here (for a copy of the A-76 circular) and here (NIH Q&A about A-76).