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(11-14) 12:32 PST WASHINGTON (AP) --

President Bush plans to subject as many as 850,000 federal jobs to
competition from the private sector, administration officials said Thursday,
a sweeping reform long sought by Republicans and stiffly opposed by labor
unions.

Nearly half of the government's civilian work force could be affected by the
plan to be published in the Federal Register on Friday. After a 30-day
public review period, Bush can impose the new rules without congressional
approval.

"This is inherent to getting the taxpayers the best deal for their dollars
and the best service from the government," said Trent Duffy, spokesman for
the Office of Management and Budget.

Bush and his fellow Republicans have long favored opening public sector jobs
to competition from outside government. They argue that competitive bidding
will force government bureaucracies to improve service and lower costs -- or
lose business to the private sector.

Public employee unions are expected to fight the proposal, which could cost
their rank and file jobs.

"The Bush administration officials are at war with reliable and experienced
rank-and-file federal employees," said Bobby L. Harnage Sr., president of
the American Federation of Government Employees. "They are systematically
conspiring to bust their unions, gut their civil service protections and
hand over their jobs to politically well-connected contractors."

The proposal comes at the heels of last week's GOP victories in
congressional elections ,which emboldened Bush and his agenda. The White
House is poised to beat back union opposition to another administration
initiative, this one in Congress: the creation of the Homeland Security
Department.

Current federal rules allow for public-private competition, administration
officials say, but the regulations are so cumbersome that private firms are
often reluctant to seek government contracts.

Under the plan, "commercial activities" conducted by the government -- from
lawn mowing to hanging drywall and secretarial work -- will be open to
competition. There are 850,000 such jobs in the federal work force; Bush has
set a goal of putting 50 percent of those jobs up for grabs in the first
stage of the plan, officials said, with the intention of eventually opening
the total 850,000 to competition.

White House spokesman Scott McClellan would not talk about the job prospects
of the affected employees, but said, "What we're trying to do is make
government work better for the American taxpayer."

Traditional high-ranking government positions would not be subject to the
proposal, according to administration officials who outlined the proposal.

One reform would encourage agencies to complete competitive bid reviews
within a year. Under current rules, the competitive bid process can take
four years -- a delay that scares off private sector bids, officials said.

Rules under which the government buys goods and services will be streamlined
to allow for more competitive bidding, officials said.

The Government Accounting Office has determined that public-private
competition will save taxpayers 30 percent on each contract.

Expecting opposition from public employees unions, administration officials
argue that the initiative would encourage unions to compete and win
contracts; it does not mandate that the private sector takeover the jobs.

Bush picked this new fight with federal unions one day after it became clear
that he had won another battle with them. With Republicans ready to take
full control of Congress, Democrats were largely abandoning their demands
for union protections at the new Department of Homeland Security.

The House easily passed a bill that would establish the department on
Wednesday, and the Senate was ready to follow suit.

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