Clarify what functions are inherently governmental and must always be performed by federal employees. A single definition of ”inherently governmental function” built around the well-established statutory definition in the Federal Activities Inventory Reform Act (FAIR Act) would replace existing definitions in regulation and policy.
 
Help agencies identify when other functions (or portions of functions) need to be performed by Federal employees.  Existing guidance addressing functions closely associated with inherently governmental functions would be strengthened to ensure that performance of such functions does not expand to include performance of inherently governmental functions or otherwise interfere with federal employees’ ability to carry out their inherently governmental responsibilities. In addition, a new category, ”critical function,” would be defined to help agencies identify and build sufficient internal capacity to effectively perform and maintain control over functions that are core to the agency’s mission and operations.

Outline a series of agency management responsibilities to strengthen accountability for the effective implementation of these policies. Agencies would be required to take specific actions, before and after contract award, to prevent contractor performance of inherently governmental functions and over-reliance on contractors in ”closely associated” and critical functions. Agencies would also be required to develop agency-level procedures, provide training, and designate senior officials to be responsible for implementation of these policies.

After public comment is considered and the policy letter is finalized, appropriate changes will be made to the Federal Acquisition Regulation (FAR). While the policy letter states contractors should not be discouraged by new guidelines governing outsourcing, it is important that federal contractors participate in and keep track of policy developments.  Restrictions in outsourcing could result in diminution of future contracting opportunities, loss of positions or functions in current contracts and/or option-year declinations.
 
OFPP invites interested parties from both the public and private sectors to provide comments to be considered for the formulation of the final policy letter.  The deadline for the submission of comments is June 1, 2010.  Comments may be submitted directly to:
 
E-mail: OFPPWorkReserved@omb.eop.gov.
Facsimile: 202-395-5105.
Mail: Office of Federal Procurement Policy,
ATTN: Mathew Blum, New Executive Office Building, Room 9013,
724 17th Street, NW., Washington, DC 20503.
Instructions: Cite “Proposed OFPP Policy Letter,” in all correspondence.
 
*Portions of this synopsis are reflected in the notice of proposed policy letter overview 3-31-2010.