REE Competitive Sourcing (CS) Program
DEFINITIONS
This document provides a list of commonly used terms and their definitions in the Competitive Sourcing process and then a list of the more frequently asked questions that employees ask:
A-76:
This is a term for the competitive process and is identified in OMB Circular
A-76, “Performance of Commercial Activities”. This Circular establishes federal
policy and procedures on competitive sourcing. It explains how the federal
government should conduct competitions of commercial activities.
Agency Tender:
The agency management plan submitted in response to a solicitation under
a standard competition. The tender includes an MEO, agency cost estimate,
MEO quality control plan, phase-in plan and any MEO subcontracts.
Agency Tender Official (ATO):
An inherently governmental agency official with decision-making authority
who is responsible for the agency tender and represents the agency tender
during the competition.
Commercial Activity:
This is a recurring service that could be obtained from a private sector source
or non-USDA Federal agency. Government agency missions may be accomplished
using commercial facilities and resources, Government facilities and resources,
or through a mix of these, depending upon the products and services needed
and the agency missions involved.
Competitive Sourcing:
This is the Administration’s term for the A-76 competition process and was
designed to empower federal managers to make sound and justifiable decisions
to promote efficiency and effectiveness. This is done when the cost of government
performance of a commercial activity is formally compared to the cost of performance
of commercial sources. It may or may not result in a contractor performing
the function.
Competition:
A formal evaluation of sources to provide a commercial activity that uses
pre-established rules (the FAR, A-76 Circular).
Competition Officials:
Agency officials selected to perform key roles and responsibilities for
the successful completion of a standard competition. Competition officials
are the agency tender official, contracting officer, source selection authority,
human resource advisor, and PWS team leader.
Competitive Sourcing Official (CSO):
An inherently governmental official responsible for the implementation
of the A-76 Circular within an agency. The CSO for USDA is the Chief Financial
Officer (CFO).
Contracting Officer (CO):
An inherently governmental agency official who participates on the PWS
team, and is responsible for issuing the solicitation and source selection
methodology.
FAIR Act:
The Federal Activities Inventory Reform (FAIR) Act requires that agencies
submit their commercial and inherently governmental activities to OMB for
review, publish the list, and entertain challenges to the list by interested
parties.
Human Resource Advisor (HRA):
An inherently governmental official who is a human resource expert and provides
human resource-related actions to assist the ATO in developing the agency
tender.
Inherently Governmental:
An inherently governmental activity is a function so intimately related to
the public interest that it mandates performance by Federal employees. These
functions include those activities that require either the exercise of discretion
in applying Government authority or the making of value judgments in making
decisions for the Government. Governmental functions normally fall into two
categories: 1) the act of governing, i.e., the discretionary exercise of government
authority, and 2) monetary transactions and entitlements. OMB OFPP Letter
92-1 contains further details regarding the definition of an inherently governmental
activity.
Most Efficient Organization (MEO):
The staffing plan developed to represent the agency’s most efficient and
cost-effective organization. An MEO is required for a standard competition
and may include a mix of government personnel and MEO subcontracts.
Performance Work Statement (PWS):
A PWS is a statement of the scope of work covering the technical, functional
and performance characteristics of the work to be performed. The PWS identifies
essential functions to be performed, determines performance factors, including
the location of the work, the units of work, the quantity of work units, and
the quality and timeliness of the work units.
Privatization:
The elimination of responsibility of the function by having the private sector
take over; in which case the federal agency is not responsible for the function
being performed.
Quality Assurance Surveillance Plan (QASP)
The QASP is the government’s plan to inspect either contract or in-house performance
to determine if services meet required quality and quantity standards set
forth in the Performance Work Statement (PWS). The plan describes methods
of inspection to be used, the reports required, and the resources to be employed,
with estimated work hours. A QASP should focus on performance outcomes.
Streamlined Competition:
A “Streamlined Competition” is conducted for activities
with 65 or fewer FTE. This process is completed in 90 days with an extension
to 135 days possible. This process has a streamlined approach to conducting
a study. The agency could compare the cost of the current organization with
market research, or may solicit proposals. The agency is allowed to develop
an MEO in the current organization for comparison.
Standard Competition:
A “Standard Competition” is conductedfor activities
with greater than 65 FTE. This may also be performed on agencies with fewer
than 65 at the agencies discretion. This process is completed in 12 months
with an extension to 18 months possible. This process also known as a “Full
Study” is significantly different than the former “Standard Cost Comparison”.
To gain full knowledge of the process, employees should read Attachment B
of OMB Circular A-76. This is available at the OMB website which
has a link in the REE website.
Last updated: 09/24/07
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