DOT FAIR Act and Inherently Governmental Inventories FY06 Guidance

1. DOT FAIR Act and Inherently Governmental Inventories FY06 Guidance The Department of Transportation Office of Competitive Sourcing

2. Fraction FTE How do you determine the FC of an FTE? Preponderance of dutiesHow do you determine the FC of an FTE? Preponderance of duties

3. 9/26/2012 Office of Competitive Sourcing 3 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.

4. Inherently Governmental Activities Who can tell us what Inherently Governmental activity is ?Who can tell us what Inherently Governmental activity is ?

5. 9/26/2012 Office of Competitive Sourcing 5 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

6. 9/26/2012 Office of Competitive Sourcing 6 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 Example of interpretation: Negotiating on behalf of the government.Example of interpretation: Negotiating on behalf of the government.

7. 9/26/2012 Office of Competitive Sourcing 7 What authority do they have? Ultimate control Signature Delegated Warranted Statute or legislation What does Ultimate control mean? Budget, funds, finance Signature Authority? Selects, disciplines, awards, evaluations, and position descriptions for federal employment Delegated? Warranted? Contracting Statute or legislation? What does Ultimate control mean? Budget, funds, finance Signature Authority? Selects, disciplines, awards, evaluations, and position descriptions for federal employment Delegated? Warranted? Contracting Statute or legislation?

8. 9/26/2012 Office of Competitive Sourcing 8 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

9. 9/26/2012 Office of Competitive Sourcing 9 T701 Management Headquarters - Transportation

10. 9/26/2012 Office of Competitive Sourcing 10 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.

11. Writing Justifications Inherently Governmental

12. 9/26/2012 Office of Competitive Sourcing 12 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

13. 9/26/2012 Office of Competitive Sourcing 13 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 FAA�s Office of Budget. They implement overall agency budgetary policies, standards, and systems. Other examples Other examples

14. 9/26/2012 Office of Competitive Sourcing 14 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. Why not? Specific activities are missing and / or the authority they can do itWhy not? Specific activities are missing and / or the authority they can do it

15. 9/26/2012 Office of Competitive Sourcing 15 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

16. Commercial Activities What is a commercial activity?What is a commercial activity?

17. 9/26/2012 Office of Competitive Sourcing 17 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.

18. 9/26/2012 Office of Competitive Sourcing 18 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

19. Assigning Reason Codes Who can tell us what reason codes A-F are?Who can tell us what reason codes A-F are?

20. 9/26/2012 Office of Competitive Sourcing 20 Reason Codes

21. Commercial Reason Code A

22. 9/26/2012 Office of Competitive Sourcing 22 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

23. 9/26/2012 Office of Competitive Sourcing 23 C300 Accounting Technicians

24. 9/26/2012 Office of Competitive Sourcing 24 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. C300 Accounting Technicians C activities and C AC300 Accounting Technicians C activities and C A

25. Writing Justifications Commercial reason code A

26. 9/26/2012 Office of Competitive Sourcing 26 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

27. 9/26/2012 Office of Competitive Sourcing 27 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?

28. 9/26/2012 Office of Competitive Sourcing 28 Do these meet the criteria? Specialized knowledge and expertise of the FAA�s 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 FHWA�s human resources systems, programs, and procedures Post it board What is missing? What are the functions. Why they are core. What special skills or knowledge is required. Post it board What is missing? What are the functions. Why they are core. What special skills or knowledge is required.

29. 9/26/2012 Office of Competitive Sourcing 29 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?

30. 9/26/2012 Office of Competitive Sourcing 30 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 FHWA�s organization, operations, and business processes. FHWA requires a sufficient amount of FTE to ensure continual performance of a core function. What can be improved?What can be improved?

31. 9/26/2012 Office of Competitive Sourcing 31 Open Discussion

32. 9/26/2012 Office of Competitive Sourcing 32 Contacts Tom Kaplan Phone: 202-366-7784 Thomas.Kaplan@dot.gov Ames Owens Phone: 202-366-9614 Ames.Owens@dot.gov Robert Knauer Phone: 202-366-5143 Robert.Knauer@dot.gov Lori Barbee, Consultant Phone: 202-863-4010 Lori.Barbee@quasars-inc.com

33. 9/26/2012 Office of Competitive Sourcing 33 A300 Safety

34. 9/26/2012 Office of Competitive Sourcing 34 A300 Safety This function includes the activities associated with facility inspection and monitoring to ensure a safe work environment.