The Office of  Management and Budget formalized the policy in Circular A-76, issued in  1966. Impact of A-76 Competitions on Affected Employees’ Employment, Pay, and Benefits Varies

The impact on employment, pay, and benefits of individual employees  affected by A-76 studies varies depending on factors such as the results of  the competitions, the availability of other government jobs, and other more  individual factors such as retirement eligibility. Pay may also be affected by  the location and technical nature of the work. These factors make it  difficult to draw universal conclusions about the effects of A-76 decisions  on affected federal employees’ employment options, pay, and benefits. The studies showed that  about half of the civilian government employees remained in federal  service, either in the new or another government organization.
What GAO Found

Office of Management and Budget Circular A-76 competitions have reduced the estimated costs of Defense Department activities primarily through reducing the number of positions needed to perform activities being studied. The impact on employment, pay, and benefits of individual employees affected by A-76 studies varies depending on factors such as the results of the competitions, the availability of other government jobs, and other individual factors such as retirement eligibility. Pay may also be affected by the location and technical nature of the work. These factors make it difficult to draw universal conclusions about the effects of A-76 decisions on affected federal employees; employment options, pay, and benefits. GAO's analysis of three completed A-76 studies showed that about half of the civilian government employees remained in federal service following the studies, either in the new or another government organization with similar pay and benefits. There were relatively few involuntary separations.