1. Implement franchising for service functions at the agency head's discretion. The President, by executive order, should instruct agency heads to determine which service functions (e.g., procurement, personnel, finance, logistics, engineering, etc.) their agency does well and can be offered to other agencies and which services are weak and should be purchased from other agencies. Agency chief operating officers (COOs) should be assigned responsibility for making the concept work within and across agency lines and across functional service lines using the reinvention laboratory concept, pilots, or other approaches to accomplish this. COOs should develop long-term agency implementation plans. In order to facilitate franchises, OMB should introduce legislation permitting the establishment of franchise revolving funds in all agencies.
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