DOT FAIR Act and Inherently Governmental Inventories FY06 Guidance

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DOT FAIR Act and Inherently Governmental
Inventories FY06 Guidance

• The Department of Transportation
• Office of Competitive Sourcing

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Fraction FTE
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Fraction FTE

• DO NOT split below .25 FTE
• OMB Except in rare instances, an FTE should be
  assigned a single function code selected on the
  basis of the predominant type of work performed.
  In reporting any fractional FTE, agencies shall
  not report fractions smaller than one-quarter
  unless a request for a waiver is granted by OMB.

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Inherently Governmental Activities
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Inherently Governmental Activities

• Normally fall into two categories the exercise
  of sovereign government authority or the
  establishment of procedures and processes related
  to the oversight of monetary transactions or
  entitlements.
• Require the exercise of substantial discretion in
  applying government authority and/or in making
  decisions for the government.
  
• SOURCE OMB Circular A-76

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Substantial Discretion

• The use of discretion shall be deemed inherently
  governmental if it commits the government to a
  course of action when two or more alternative
  courses of action exist and decision making is
  not already limited or guided by existing
  policies, procedures, directions, orders, and
  other guidance
• SOURCE OMB Circular A-76
• Example Negotiating on behalf of the government

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What authority do they have?

• Ultimate control
• Signature
• Delegated
• Warranted
• Statute or legislation

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Inherently Governmental vs. Commercial Activities

• Inherently Governmental
• Determine policies
• Sign contracts
• Controls budget priorities
• Certifies position descriptions
• Responds to congressional inquiries

• Commercial
• Develop policies
• Oversee contracts
• Prepares and formulates the budget
• Develop position descriptions
• Organize congressional inquiries

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T701 Management Headquarters - Transportation
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T701 Management Headquarters - Transportation

• This function includes overseeing, directing, and
  controlling transportation programs and
  subordinate organizations. This includes
  conducting mid- and long-range planning,
  programming, and budgeting developing and
  issuing policies providing policy guidance
  reviewing, analyzing, and evaluating program
  performance and, allocating and distributing
  resources. This function is carried out in the
  Washington Headquarters offices.

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Writing Justifications

• Inherently Governmental

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Inherently Governmental Justification Criteria

• The key elements of a complete justification
  include
  
• A thorough definition of the activities performed
  including the specific program, administration,
  etc
  
• The authority they exercise

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Inherently Governmental Justifications

• These FAA FTE bind the government to a course of
  action by adjudication of contract cases pursuant
  to the Contract Disputes Act, 41 U.S.C. 601 et
  seq. They include the conduct of formal or
  informal hearings that accord appropriate due
  process.
• These FTE have ultimate control over FAAs Office
  of Budget. They implement overall agency
  budgetary policies, standards, and systems.

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Do these meet the criteria?

• The activities of this function require the
  signing of a formal contract, policy, regulation,
  authorization or order which obligates the
  Federal Government.
• This function includes activities that
  significantly affect the life, liberty, or
  property of private persons.

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Inherently Governmental Justification Criteria

• The key elements of a complete justification
  include
  
• A thorough definition of the activities performed
  including the specific program, administration,
  etc
  
• The authority they exercise

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Commercial Activities
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OMB DOT

• The rebuttable presumption is that FTE are
  commercial reason code B unless justified in
  writing as inherently governmental, commercial
  reason code A, or other reason code.

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Commercial Activities

• Program analysis, cost analysis, efficiency
  reviews, and fact-finding
  
• Conducting reorganization and planning activities
  
  
• Feasibility studies
• Developing policy
• Development of regulations
• Support of acquisition planning
• Oversees contracts (COTR)
• Performs maintenance on motor vehicles
• Operates and oversees cafeterias

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Assigning Reason Codes
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Reason Codes
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Commercial Reason Code A
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Commercial Reason Code A Designation Criteria

• Function requires specialized expertise of agency
  systems and procedures unique to the public
  sector or only limited available in the private
  sector
• Agency requires a sufficient number of trained
  and experienced staff with historical knowledge
  to ensure continual performance of a core
  function. (Core to the Mission.)
• Agency has set aside FTE for employment of
  physically and or mentally challenged
  individuals
  
• Function is performed by a student intern as a
  part of formalized program for federal
  recruitment
  

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C300 Accounting Technicians
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C300 Accounting Technicians

• This function includes account maintenance
  clerical and accounting technician support
  activities requiring a basic understanding of
  accounting systems, policies, and procedures in
  performing or supervising the examination,
  verification, and maintenance of accounts and
  accounting data. Also included are technical
  audits, develop or install revised accounting
  procedures, or perform similar quasi-professional
  accounting activities. Activities in this
  function require a knowledge of existing
  accounting systems, standard accounting codes,
  classifications, and terminology an
  understanding of agency accounting policies,
  procedures, and requirements and the ability to
  apply various accounting methods, forms and
  techniques, but less than the broad understanding
  and theoretical knowledge of accounting acquired
  through professional education and training.

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Writing Justifications

• Commercial reason code A

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Commercial Reason Code A Justification Criteria

• The key elements of a complete justification
  include
  
• Justifications should reflect an appropriate and
  consistent application of criteria
  
• A thorough definition of the function performed,
  including required skills and responsibilities
  
• Clear explanation of why it is necessary for the
  commercial function to be categorized as
  unsuitable for competition
  
• They should contain enough information to enable
  a reasonable lay person to validate the function
  and reason code designations

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Commercial Reason Code A Justification Criteria

• Commercial reason code A justifications should
  answer the following questions
  
• What core activities are performed by these FTE?
• What special skills or knowledge is required to
  perform the activity?
  
• Why are they not suitable for competition?

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Do these meet the criteria?

• Specialized knowledge and expertise of the FAAs
  acquisition systems is required to adequately
  perform these functions
  
• A portion of the commercial work performed within
  this functional category requires retention of a
  sufficient number of FTE with specialized
  expertise in administering FHWAs human resources
  systems, programs, and procedures

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Commercial Reason Code A Justification Criteria

• Commercial reason code A justifications should
  answer the following questions
  
• What core activities are performed by these FTE?
• What special skills or knowledge is required to
  perform the activity?
  
• Why are they not suitable for competition?

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Commercial Reason Code A Justification

• These FTE are responsible for leading the
  development and evaluation of new human resources
  information systems. They must have a broad
  knowledge of FHWAs organization, operations, and
  business processes. FHWA requires a sufficient
  amount of FTE to ensure continual performance of
  a core function.

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Open Discussion
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Contacts

• Tom Kaplan
• Phone [phone]
• Thomas.Kaplan_at_dot.gov
• Ames Owens
• Phone [phone]
• Ames.Owens_at_dot.gov
• Robert Knauer
• Phone [phone]
• Robert.Knauer_at_dot.gov
• Lori Barbee, Consultant
• Phone [phone]
• Lori.Barbee_at_quasars-inc.com

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A300 Safety
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A300 Safety

• This function includes the activities associated
  with facility inspection and monitoring to ensure
  a safe work environment.