REE Commercial Services Management Program
FAIR ACT INVENTORY FAQs
How does the FAIR Act relate to A-76?
The FAIR Act provides that each time the head of an executive agency considers contracting with a private sector source for the performance of an activity included on the FAIR Act inventory, the agency must use a competitive process to select the source and must ensure that, when a cost comparison is used or otherwise required for the comparison of costs, all costs are considered and the costs considered are realistic and fair. OMB has directed that in carrying out these requirements, agencies must rely on the guidance contained in OMB Circular A-76 and its Supplemental Handbook.
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to FAQsWill every function listed in the inventory be competed?
No. The inclusion of a function on the agency's inventory of commercial activities does not mean that the agency is required to compete the function. Rather, the FAIR Act requires that each agency review its inventory of commercial activities. Presumably, this review would include consideration of competition, consolidation, privatization, other reinvention alternatives or maintaining the status quo. Not all commercial activities performed by Federal employees must be performed by the private sector, though all such activities must be inventoried under the provisions of the FAIR Act and Circular A-76. The decision as to which commercial functions represent "core capabilities," and thus should be retained in-house, remains with each agency head.
Are there functions that cannot be contracted?
Yes. These are inherently governmental activities that are so closely related to the public interest that they require performance by Federal government personnel.
How are decisions made concerning which functions are inherently Governmental and which are not?
OMB has issued guidance in the OMB Circular A-76 delineating the criteria to be used in determining whether a function is inherently governmental. REE used these criteria to develop its FAIR Act inventory. Inventories are reviewed by the Department's Competitive Sourcing Office in the office of the Chief Financial Officer to ensure a level of consistency across the Department.
Can the inventory be challenged?
Under the FAIR Act, "interested parties" can challenge an agency's judgment about what is included on the inventory within 30 working days after the inventory is published (the inventory is published after review and consultation with OMB). Interested parties include current employees and their representatives and contractors who are actual or prospective bidders to perform the function.
What recourse do affected employees have to challenge the way that theirfunctions have been classified on the FAIR inventory?
Interested parties, including current employees who are actual or prospective bidders for a function, can challenge what is included on the FAIR inventory. Any challenge must be made in writing within 30 working days of the date a notice is published in the Federal Register by OMB that the inventory is available.
Last updated: 11/06/07
