Though generally supportive of President Barack Obama’s pursuit of federal contracting reform, U.S. Reps. Jim Moran (D-8) and Gerry Connolly (D-11) are concerned that some within the Obama administration might be taking matters a little too far when it comes to reducing the amount of government work performed by outside contractors.

"As we look to rebuild needed government capacity, we cannot overlook the fact that industry plays a critical role in supporting and partnering with the federal government," wrote Moran and Connolly in a letter dated Aug. 11 to a U.S. Department of Defense official who deals with defense outsourcing.

Consultants hired by Fairfax County to track and lobby for federal legislation indicated that the congressmen are appropriately concerned, given the potential impact to Fairfax’s businesses and economy, which relies heavily on government contracting.

"Some degree of change within the federal contracting process can be expected, particularly at the Pentagon," wrote the consultants from the firm Alcade & Fay.

"Given the nearly $17 billion in federal procurement contract awards in Fairfax County in 2008, what this means for the county is still unclear, but it is likely that many of the companies located in Fairfax County that specialize in government contracting could be negatively affected," they also wrote.

In a written report to the Fairfax County Board of Supervisors, the consultants stated that the U.S. Office of Management and Budget, particularly its director Peter Orszag, was moving aggressively to eliminate what the Obama administration sees as wasteful government spending on "out-sourcing" federal work.

In memoranda to federal agencies, Orszag has called for stricter oversight for federal contractors and also for a stepped-up "in-sourcing" campaign, in which jobs previously performed by outside contractors would be moved into the federal workforce portfolio.

The consultants characterized the efforts of certain congressional members, particularly Moran and Connolly, as a moderate level of "push back" against the Office of Management and Budget’s "in-sourcing" goals.

In particular, Connolly and Moran are concerned that the Department of Defense has recently moved larger portions of its work into the "inherently governmental" category of job, thereby putting it out of reach of outside contractors. Work labeled "inherently governmental" is considered too sensitive to be performed by an outside business or company, according to documents provided by the consultants.

"Absent sufficient clarification, DoD in some instances has reclassified major sections of its workforce as performing ‘inherently governmental’ functions, unnecessarily eliminating the use of private contractors from the department," wrote Moran and Connolly in their letter of concern.