OMB’s OFPP Issues “Inherently Governmental” Definition

us-governmentThe proposed policy memo on “inherently governmental” is live. The Office of Management and Budget’s Office of Federal Procurement Policy issued a memo yesterday detailing the definition.

The memo provides a definition of inherently governmental to “help agencies identify when other functions (or portions of functions) need to be performed by Federal employees.” It was built around the Federal Activities Inventory Reform Act (FAIR act).

The FAIR act “includes activities that require either the exercise of discretion in applying Federal Government authority or making the value judgments in making decisions for the Federal Government, including judgments relating to monetary transactions.”

The new rule will be broader than the former definition in the Subpart 7.4 of the Federal Acquisition Regulation (FAR). It will take contractors out of the decision-making equation in the government acquisition process.

However, this memo is only a draft. OFPP is currently seeking public comments at this time until May 31, 2010. They are hoping to adopt a final definition by sometime late summer or early fall 2010.

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