The Office of Federal Procurement Policy has proposed to use the Federal Activities Inventory Reform Act’s definition of “inherently governmental” as the single, official government-wide definition.
According to the FAIR Act, an activity is inherently governmental if it is so intimately related to the public interest that it mandates performance by federal employees. Under the Act, the term also applies to activities that require the exercise of discretion in applying federal government authority.
A March 4 Presidential memo on government contracting called on OMB to clarify when outsourcing is appropriate, saying the line between contractors and federal employees has been blurred too much.
OFPP’s proposed policy letter, published in the March 31 Federal Register, provides guidance to address the handling of critical functions and the maintenance of a core capability by federal employees.
According to the letter, a function would be considered critical if a portion of it must be reserved for federal employees in order to ensure the agency has sufficient internal capability to effectively perform and maintain control of its mission and operations.
Agencies would be held responsible for ensuring a sufficient number of positions performing critical work are filled by federal employees with appropriate training, experience, and expertise to understand the agency’s requirements, formulate alternatives, manage the work product, and manage any contractors.
The proposed guidance would also require agencies to evaluate whether they have sufficient internal capability on a case-by-case basis, taking into account factors such as the effect that a contractor’s defaulting could have on mission performance.
