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FAIR Act Definitions

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Office of Management and Budget

FAIR Act Inventory
User's Guide

Definitions

August 15, 2000

Agencies are required to use a common format and data order for Year 2000 FAIR Act Inventory submissions. Upon OMB's Federal Register notification of the release of the inventory to the public and the Congress, agencies are required to make their inventory available through their Internet WEB site.

a. Organization Unit. - This is an alpha designation for the agency, sub-agency and/or bureau (alphanumeric codes will be accepted, if warranted). A full list of all codes is attached to the agency's inventory.

b. State(s) - The State(s) where the function is performed is identified within the United States by their common two letter mail code.

c. Location(s) - The place where the activity is performed (city, town, or military base).

Some agencies have aggregated commercial activities with multiple locations, in order to facilitate reporting or the consideration of the activity as a commercial/contractible entity. In many cases, there are a number of locations with very few FTE associated with that function at any one location. Agencies have aggregated these locations to create a reasonably contractible scope of work, and to facilitate the restructuring of the activity on a regional or even nationwide basis.

d. FTE - The number of full-time equivalents (FTE) for Federal employees performing the commercial activity. An FTE equates to 2080 hours of employment. A single FTE could represent a number of part-time or temporary employees.

e. Activity/Function Code - The Function Code that best describes the type of activity performed. All function codes are approved by OMB.

The FAIR Act Commercial Function Codes build upon pre-existing OMB Circular A-76 Commercial Activities Inventory Function Codes. Use of the A-76 Functions Codes facilitated the development and submission of the 1999 and Year 2000 Fair Act inventories. Agencies were able to use existing reporting systems which, in the case of the Department of Defense and other agencies, were extensive.

In order to maintain consistency, OMB issues new FAIR Act Function Codes. The Year 2000 inventory, for example, includes several new Function Codes requested by the agencies - within the original A-76 alph-numeric Function Code system. These additional codes were created to facilitate reporting on the list and, in many cases, to clarify the type of work being performed. A complete list of all Year 2000 Fair Act Function Codes is provided as a part of this Guide.

f. Reason Code - The Reason (Status) Code that best describes the status of the commercial FTE. This Guide provides expanded definitions and usage of the Reason Codes.

The "Reason Codes" originated in OMB's A-76 Revised Supplemental Handbook and were provided to help agencies describe each of the commercial activities in their inventories. The Reason Codes convey important information regarding the agencies review of that activity.

g. Year the Activity First Appeared on the Commercial Activities Inventory - All four digits of the fiscal year the activity first appeared on the FAIR Act inventory. All entries that appeared in the 1999 Inventory should be entered as 1999. Activities that first appear in the 2000 Inventory should be entered as 2000.

h. Responsible Official - The name, position title and phone number of the Federal employee responsible for the activity or the agency contact person from whom additional information about the activity may be obtained.

i. Year of Cost Comparison or Conversion (if applicable) - All four digits of the most recent fiscal year that an A-76 cost comparison or direct conversion was completed.

j. FTE Savings (if applicable) - The FTE savings generated by a cost comparison (including MEO savings), a direct conversion to contract, a termination or a privatization decision.

k. Estimated Annualized Cost Comparison Dollar Savings (if applicable) - The estimated annual savings that reflect the difference between the in-house bid MEO and the low contract offer.

l. Date of Completed Post MEO Performance Review (if applicable) - The date that the most recent Post MEO performance review was completed.

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