OMB Seeks Relief from A-76 Restrictions

OMB has again asked Congress for relief from restrictions imposed on Circular A-76 requiring that most decisions be based on cost and not “value” factors. Since OMB changed the circular in 2003 there has been a series of appropriations bill provisions affecting parts or all of the government requiring savings of at least 10 percent or $10 million. OMB said that where “best value” decisions have been allowed, agencies have achieved substantial savings and have been able to “choose the solution that is best in terms of both cost and quality.” In arguing for repeal, it said that agencies would likely meet the cost differential in almost all cases in any event, but if the requirement to base decisions strictly on cost is retained, “agencies will have difficulty obtaining proposals with the combination of cost and quality that represents the best value for the taxpayer.”