Number range CHAPTER**EXECUTIVE OFFICE OF THE PRESIDENT**

OFFICE OF MANAGEMENT AND BUDGET

**WASHINGTON, DC 20503**

**May 29, 2003**

CIRCULAR NO. A-76 (REVISED)

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS

SUBJECT: Performance of Commercial Activities

1.  **Purpose.** This circular establishes federal policy for the
    competition of commercial activities.

2.  **Supersession.** This circular supersedes Office of Management and
    Budget (OMB) Circular No. A-76 (Revised 1999), August 4, 1983;
    Circular No. A--76 Revised Supplemental Handbook (Revised 2000),
    March 1996; Office of Federal Procurement Policy Letter 92-1,
    "Inherently Governmental Functions," September 23, 1992; and OMB
    Transmittal Memoranda 1 through 25, Performance of Commercial
    Activities.

**3.** **Authority.** Reorganization Plan No. 2 of 1970 (31 U.S.C. §
1111); Executive Order 11541; the Office of Federal Procurement Policy
Act (41 U.S.C. § 405); and the Federal Activities Inventory Reform
(FAIR) Act of 1998 (31 U.S.C. § 501 note).

**4.** **Policy.** The longstanding policy of the federal government has
been to rely on the private sector for needed commercial services. To
ensure that the American people receive maximum value for their tax
dollars, commercial activities should be subject to the forces of
competition. In accordance with this circular, including Attachments
A-D, agencies shall:

a.  Identify all activities performed by government personnel as either
    commercial or inherently governmental.

b.  Perform inherently governmental activities with government
    personnel.

c.  Use a streamlined or standard competition to determine if government
    personnel should perform a commercial activity.

d.  Apply the Federal Acquisition Regulation (FAR), 48 C.F.R. Chapter 1,
    in conjunction with this circular, for streamlined and standard
    competitions.

e.  Comply with procurement integrity, ethics, and standards of conduct
    rules, including the restrictions of 18 U.S.C. § 208, when
    performing streamlined and standard competitions.

f.  Designate, in writing, an assistant secretary or equivalent level
    official with responsibility for implementing this circular,
    hereafter referred to as the competitive sourcing official (CSO).
    Except as otherwise provided by this circular, the CSO may delegate,
    in writing, specified responsibilities to senior-level officials in
    the agency or agency components.

g.  Require full accountability of agency officials designated to
    implement and comply with this circular by establishing performance
    standards in annual performance evaluations.

h.  Centralize oversight responsibility to facilitate fairness in
    streamlined and standard competitions and promote trust in the
    process. Agencies shall allocate resources to effectively apply a
    clear, transparent, and consistent competition process based on
    lessons learned and best practices. Lessons learned and best
    practices resulting from a streamlined or standard competition
    process shall be posted on SHARE A-76!

> **i.** Develop government cost estimates for standard and streamlined
> competitions in accordance with Attachment C using the COMPARE costing
> software. Agencies shall not use agency budgetary estimates to develop
> government cost estimates in a streamlined or standard competition.
>
> **j.** []{#ExecutionTrackingForCompetitions .anchor}Track execution of
> streamlined and standard competitions in accordance with Attachment B.
>
> **k.** Assist adversely affected federal employees in accordance with
> 5 C.F.R. Parts 330 and 351. The statutory veterans\' preference for
> appointment and retention (5 U.S.C. §§ 1302, 3301, 3302, 3502) applies
> to actions taken pursuant to this circular.

l.  Not perform work as a contractor or subcontractor to the private
    sector, unless specific statutory authority exists or the CSO
    receives prior written OMB approval.

**5.** **Scope.**

> **a.** Except as otherwise provided by law, this circular shall apply
> to executive departments named in
>
> 5 U.S.C. § 101 and independent establishments as defined in 5 U.S.C. §
> 104. These departments and independent establishments are referred to
> in this circular as "agencies". Except as otherwise provided by law,
> this circular shall apply to military departments named in 5 U.S.C. §
> 102.
>
> **b.** As provided by Attachment A, the CSO may exempt a commercial
> activity performed by government personnel from performance by the
> private sector.
>
> **c.** The CSO (without delegation) shall receive prior written OMB
> approval to deviate from this circular (e.g., time limit extensions,
> procedural deviations, or costing variations for a specific
> streamlined or standard competition, or inventory process deviations).
> Agencies shall include any OMB approved deviations in the public
> announcement and solicitation for a streamlined or standard
> competition. Agencies are encouraged to use this deviation procedure
> to explore innovative alternatives to standard or streamlined
> competitions, including public-private partnerships, public-public
> partnerships, and high performing organizations.
>
> **d.** A streamlined or standard competition is not required for
> private sector performance of a new requirement, private sector
> performance of a segregable expansion to an existing commercial
> activity performed by government personnel, or continued private
> sector performance of a commercial activity. Before government
> personnel may perform a new requirement, an expansion to an existing
> commercial activity, or an activity performed by the private sector, a
> streamlined or standard competition shall be used to determine whether
> government personnel should perform the commercial activity.
>
> **e.** The CSO shall identify savings resulting from completed
> streamlined and standard competitions in accordance with OMB Circular
> No. A-11, *Preparation, Submission, and Execution of the Budget.*
>
> **f.** This circular shall not be construed to alter any law,
> executive order, rule, regulation, treaty, or international agreement.
>
> **g.** Noncompliance with this circular shall not be interpreted to
> create a substantive or procedural basis to challenge agency action or
> inaction, except as stated in Attachments A and B.
>
> **h.** The Department of Defense CSO (without delegation) shall
> determine if this circular applies to the Department of Defense during
> times of a declared war or military mobilization.

6.  **Effective Date.** This circular is effective upon publication in
    the *Federal Register* and shall apply to inventories required, and
    streamlined and standard competitions initiated, after the effective
    date.

**7.** **Transition.** Agencies shall apply the following transition
procedures to direct conversions and cost comparisons, including
streamlined cost comparisons, initiated but not completed by the
effective date of this circular.

a.  Agencies shall convert initiated streamlined cost comparisons and
    direct conversions to streamlined or standard competitions under
    this revised circular.

> b\. Agencies shall convert initiated cost comparisons for which
> solicitations have not been issued prior to the effective date to
> standard competitions under this revised circular or, at the agency\'s
> discretion if permitted by this revised circular, to streamlined
> competitions.
>
> c\. The circular in effect prior to this revision shall govern cost
> comparisons for which solicitations have been issued, unless agencies,
> at their discretion, convert such cost comparisons to standard
> competitions under this revised circular, or, if permitted by this
> revised circular, to streamlined competitions.
>
> d\. In applying transition procedures, agencies shall not combine the
> requirements of this revised circular with those in the prior
> circular.
>
> e\. When complying with the transition procedures required by this
> paragraph, agencies shall make a public announcement within 30 days
> after the effective date of this revised circular pursuant to this
> transition paragraph. For conversions made at an agency\'s discretion,
> agencies shall make public announcement on the date the agency\'s
> decision takes effect.

**8.** **Attachments.**

> Attachment A \-- **Inventory Process**
>
> Attachment B \-- **Public-Private Competition**
>
> Attachment C \-- **Calculating Public-Private Competition Costs**
>
> Attachment D \-- **Acronyms and Definitions**

**Mitchell E. Daniels, Jr.**

**Director**

[TABLE OF CONTENTS]{.underline}

**[OMB CIRCULAR A-76]{.underline}**

**[Performance of Commercial Activities]{.underline}**

1\. Purpose

2\. Supersession

3\. Authority

4\. Policy

> a\. Identification of all activities
>
> b\. Performance of inherently governmental activities

c\. Use of streamlined or standard competitions

d\. Application of the FAR

e\. Compliance with procurement integrity, ethics, and standards of
conduct rules, including 18 U.S.C. § 208

f\. Designation of CSO

g\. Requirement for full accountability of designated agency officials

h\. Centralization of competition oversight

> i\. Development of government cost estimates
>
> j\. Execution tracking for competitions
>
> k\. Assistance for adversely affected federal employees

m.  Restriction for performing work as a contractor or subcontractor to
    the private sector

5\. Scope

> a\. Application to agencies
>
> b\. Exemption for government performance of commercial activities by
> CSO
>
> c\. Deviations to Circular
>
> d\. Performance of new requirements, expansions, contracted activities
>
> e\. Identification of competition saving
>
> f\. Exceptions for law, executive order, rule, regulation, treaty, or
> international agreement
>
> g\. Challenges based on noncompliance interpretation
>
> h\. Application to Department of Defense during times of a declared
> war or military mobilization

7.  Effective Date. May 29, 2003

7\. Transition

a\. Streamlined cost comparisons and direct conversions

> b\. Cost comparisons without issued solicitations
>
> c\. Cost comparisons with issued solicitations
>
> d\. Prohibition to combine requirements of revised circular and prior
> circular.
>
> e\. Public announcements for conversions

8\. Attachments.

> A Inventory Process
>
> B Public-Private Competition
>
> C Calculating Public-Private Competition Costs
>
> D Acronyms and Definitions

**[Web Sites]{.underline}**

**OMB \-- [www.omb.gov](http://www.omb.gov/)**

**SHARE A-76 \-- <http://emissary.acq.osd.mil/inst/share.nsf/>**

[**www.FedBizOpps.gov**](http://www.FedBizOpps.gov/)

[**INVENTORY PROCESS \-- ATTACHMENT A**](#AttachmentAInventoryProcess)

A. [Inventory Requirements](#InventoryRequirements)

> 1\. [Agency Inventories](#AgencyInventories)
>
> 2\. [Annual Requirement](#AnnualRequirement)
>
> 3\. [OMB Review and Consultation](#OMBReviewAndConsultation)
>
> 5\. [Inventory Summary Report](#InventorySummaryReport)

B. [Categorizing Activities Performed by Government Personnel as
Inherently Governmental or
Commercial](#CategorizingActivitiesPerformedbyGov)

> 1\. [Inherently Governmental
> Activities](#InherentlyGovernmentalActivities)
>
> 2\. [Commercial Activities](#CommercialActivities)

C. [Reason Codes for Commercial
Activities](#ReasonCodesforCommercialActivities)

> 1\. [Annual Procedures](#AnnualProcedures)
>
> 2\. [Reason Code A](#ReasonCodeA)

D. [Inventory Challenge Process](#InventoryChallengeProcess)

> 1\. [Designation of Inventory Challenge and Appeal
> Authorities](#DesignationOfInventoryChallengeAndAppeal)
>
> a\. [Inventory Challenges](#InventoryChallenges)
>
> b\. [Inventory Appeals](#InventoryAppeals)
>
> 2\. [Submission of an Inventory
> Challenge](#SubmissionOfAnInventoryChallenge)
>
> 3\. [Inventory Challenge Decision](#InventoryChallengeDecision)
>
> 4\. [Submission of an Appeal of an Inventory Challenge
> Decision](#SubmissionOfAnAppealOfAnInventory)
>
> 5\. [Inventory Appeal Decision](#InventoryAppealDecision)
>
> 6\. [Inventory Changes](#InventoryChanges)

**[Figures in Attachment A]{.underline}**

[A1. Fiscal Year XXXX Annual Inventory
Summary](#FigA1FiscalYearXXAnnualInventorySum)

[A2. Reason Codes and Definitions for Commercial Activities
Inventory](#FigA2ReasonCodesandDefinitionsforCo)

[**PUBLIC-PRIVATE COMPETITION \-- ATTACHMENT
B**](#AttchBPUBLIC_PRIVATECOMPETITION)

A. [Preliminary Planning](#PRELIMINARYPLANNING)

> 1\. [Scope](#AtchBScope)
>
> 2\. [Grouping](#Grouping)
>
> 3\. [Workload Data and Systems](#WorkloadDataAndSystems)
>
> 4\. [Baseline Costs](#BaselineCosts)
>
> 5\. [Type of Competition](#TypeOfCompetition)
>
> 6\. [Schedule](#Schedule)
>
> 7\. [Roles and Responsibilities of
> Participants](#RolesAndResponsibilitiesOfParticipants)
>
> 8\. [Competition Officials](#CompetitionOfficials)
>
> a\. [Agency Tender Official (ATO)](#AgencyTenderOfficial)
>
> b\. [Contracting Officer (CO)](#ContractingOfficer)
>
> c\. [PWS (Performance Work Statement) Team Leader](#PWSTeamLeader)
>
> d\. [Human Resource Advisor (HRA)](#HumanResourceAdvisor)
>
> \(1\) [Employee and Labor-Relations
> Requirements](#EmployeeAndLaborRelationsRequirement)
>
> \(2\) [MEO Team Requirements](#MEOTeamRequirements)
>
> e\. [Source Selection Authority (SSA)](#SourceSelectionAuthority)

9\. [Incumbent Service Providers](#IncumbentServiceProviders)

B. [Public Announcements](#PUBLICANNOUNCEMENTS)

> 1\. [Start Date (Public Announcement Date](#StartDate))
>
> 2\. [End Date (Performance Decision Date)](#EndDate)
>
> 3\. [Cancellations](#Cancellations)
>
> a\. [Cancellation of a Streamlined or Standard
> Competition](#CancellationOfStreamlinedOrStandard)
>
> b\. [Cancellation of a Solicitation](#CancellationofSolicitation)

C. [Streamlined Competition
Procedures](#STREAMLINEDCOMPETITIONPROCEDURES)

> 1\. [Streamlined Competition Form (SLCF)](#StreamlinedCompetitionForm)
>
> a\. [Cost of Agency Performance](#CostOfAgencyPerformance)
>
> b\. [Cost of Private Sector/Public Reimbursable
> Performance](#CostOfPrivateSectorPublicReimbursable)
>
> c\. [Adjusted Cost Estimate](#AdjustedCostEstimate)
>
> d\. [Cost Estimate Firewalls](#CostEstimateFirewalls)
>
> 2\. [Time Limit](#TimeLimit)
>
> 3\. [Performance Decision in a Streamlined
> Competition](#PerformanceDecisionStreamlinedCompetitio)
>
> a\. [SLCF Certifications](#SLCFCertifications)
>
> b\. [SLCF Review](#SLCFReview)
>
> c\. [Public Announcement](#PublicAnnouncementStreamlined)
>
> d\. [Implementing the Streamlined Performance
> Decision](#ImplementingStreamlinedDecision)
>
> \(1\) [Private Sector or Public Reimbursable Performance
> Decision](#StreamlinedPrivateSectorOrPublicReimDec)
>
> \(2\) [Agency Performance
> Decision](#AgencyPerformanceDecisionStreamlined)

D. [Standard Competition Procedures](#STANDARDCOMPETITIONPROCEDURES)

> 1\. [Time Limit](#TimeLimitStandard)
>
> 2\. [Team Designations, Responsibilities, and
> Restrictions](#TeamDesignationsResponsibilities)
>
> a\. [Performance Work Statement (PWS) Team](#PWSTeam)
>
> b\. [Most Efficient Organization (MEO) Team](#MEOTeam)
>
> c\. [Source Selection Evaluation Board
> (SSEB)](#SourceSelectionEvaluationBoardSSEB)
>
> 3\. [The Solicitation and Quality Assurance Surveillance
> Plan](#SolicitationAndQualityAssuranceSP)
>
> a\. [Solicitation](#Solicitation)
>
> \(1\) [Review and Release of
> Information](#ReviewandReleaseOfInformation)
>
> \(2\) [FAR Provisions](#FARProvisions)
>
> \(3\) [Acquisition Process and Source Selection
> Provisions](#AcquisitionProcessAndSourceSelection)
>
> \(a\) [Evaluation Factors](#EvaluationFactors)
>
> \(b\) [Tradeoff Source Selection Solicitation
> Provisions](#TradeoffSourceSelectionSolicitationProvi)
>
> \(4\) [Solicitation Provisions Unique to the Agency
> Tender](#SolicitationProvisionsUniqueToAgencyTend)
>
> \(5\) [Solicitation Closing Date](#SolicitationClosingDate)
>
> \(6\) [Compliance Matrix](#ComplianceMatrix)
>
> \(7\) [Performance Periods](#PerformancePeriods)
>
> \(8\) [Government-Furnished Property
> (GFP)](#AtchBGovernmentFurnishedProperty)
>
> \(9\) [Common Costs](#CommonCosts)
>
> \(10\) [Performance Bond](#PerformanceBond)
>
> \(11\) [Incentive Fee](#IncentiveFee)
>
> \(12\) [Award Fee](#AwardFee)
>
> \(13\) [Phase-in Plan](#PhaseInPlan)
>
> \(14\) [Quality Control Plan](#QualityControlPlan)
>
> b\. [Quality Assurance Surveillance
> Plan](#QualityAssuranceSurveillancePlan)
>
> c\. [Competition File](#CompetitionFile)
>
> 4\. The [Agency Tender, Private Sector Offers, and Public Reimbursable
> Tenders](#AgencyTenderPrivateSectorPublicReimb)
>
> a\. [Agency Tender](#AgencyTender)
>
> \(1\) [Developing the Agency Tender](#DevelopingAgencyTender)
>
> \(a\) [Most Efficient Organization
> (MEO)](#AtchBMostEfficientOrganization)
>
> \(b\) [Agency Cost Estimate](#AgencyCostEstimate)
>
> \(c\) [Quality Control Plan](#QualityControlPlan)
>
> \(d\) [Phase-in Plan](#PhaseInPlan)
>
> \(2\) [Submission of the Agency Tender](#SubmissionAgencyTender)
>
> \(3\) [Changes to the Agency Tender](#ChangesAgencyTender)
>
> \(4\) [Procurement Sensitivity](#ProcurementSensitivity)
>
> b\. [Private Sector Offers](#PrivateSectorOffers)
>
> c\. [Public Reimbursable Tenders](#PublicReimbursableTenders)
>
> d\. [No Satisfactory Private Sector or Public Reimbursable
> Source](#NoSatisfactorySource)
>
> \(1\) [Determine Reasons](#DetermineReasons)
>
> \(2\) [Required Action](#RequiredAction)
>
> \(a\) [Revise the Solicitation](#ReviseSolicitation)
>
> \(b\) [Implement the Agency Tender](#ImplementAgencyTender)
>
> 5\. [The Source Selection Process and Performance
> Decision](#SourceSelectionProcessAndPerformDecision)
>
> a\. [Sealed Bid Acquisition](#SealedBidAcquisition)
>
> b\. [Negotiated Acquisition](#NegotiatedAcquisition)
>
> \(1\) [Lowest Price Technically Acceptable Source
> Selection](#LowestPriceTechnicallyAcceptableSour)
>
> \(2\) [Phased Evaluation Source Selection
> Process](#PhasedEvaluationSourceSelectionProcess)
>
> \(a\) [Phase One](#PhaseOne)
>
> \(b\) [Phase Two](#PhaseTwo)
>
> \(3\) [Tradeoff Source Selection
> Process](#TradeoffSourceSelectionProcess)
>
> \(a\) [Low Cost Performance Decision](#LowCostPerformanceDecision)
>
> \(b\) [Other Than Low Cost Performance
> Decision](#OtherThanLowCostPerformanceDecision)
>
> c\. [Special Considerations](#SpecialConsiderations)
>
> \(1\) [Evaluation of Private Sector Offers, Public Reimbursable
> Tenders, and Agency Tender](#EvaluationOfPrivateSectorOffersPubli)
>
> \(2\) [Exchanges with Private Sector, Public Reimbursable, and Agency
> Sources](#ExchangesWithPrivateSectorPublicReimb)
>
> \(3\) [Deficiencies in an Offer or
> Tender](#DeficienciesInOfferOrTender)
>
> \(4\) [Price Analysis and Cost Realism of Private Sector Cost
> Proposals, Public Reimbursable Cost Estimates and Agency Cost
> Estimates](#PriceAnalysisAndCostRealism)
>
> \(a\) [General](#GeneralPriceAnalysisAndCostRealism)
>
> \(b\) [Agency and Public Reimbursable Cost
> Estimates](#AgencyAndPuPriceAnalysisAndCostRealism)
>
> \(c\) [Conversion Differential](#ConversionDifferential)
>
> \(d\) [SCF Overview\--](#SCFOverview)
>
> SCF Line 1 Personnel Costs
>
> SCF Line 2 Material & Supply Costs
>
> SCF Line 3 Other Specifically Attributable Costs
>
> SCF Line 4 Overhead Costs
>
> SCF Line 5 Additional Costs
>
> SCF Line 6 Total Cost of Agency or Public Reimbursable Performance
>
> SCF Line 7 Contract Price or Public Reimbursable Cost Estimate
>
> SCF Line 8 Contact Administration Costs
>
> SCF Line 9 Additional Costs
>
> SCF Line 10 One-time Conversion Costs
>
> SCF Line 11 Gain on Assets
>
> SCF Line 12 Federal Income Tax Adjustment
>
> SCF Line 13 Total Adjusted Cost of Private Sector or Public
> Reimbursable Performance
>
> SCF Line 14 Conversion Differential
>
> SCF Line 15 Adjusted Total Cost of Agency Performance
>
> SCF Line 16 Adjusted Total Cost of Private Sector or Public
> Reimbursable Performance
>
> SCF Line 17 Cost Difference
>
> SCF Line 18 Low-Cost Provider
>
> 6\. [Performance Decision in a Standard
> Competition](#PerformanceDecisionInStandardCompetition)
>
> a\. [Certification](#Certification)
>
> b\. [End Date](#EndDateStandardCompetition)
>
> c\. [Public Announcement of the Performance
> Decision](#PublicAnnouncementPerformanceDecisionSTD)
>
> d\. [Debriefing](#Debriefing)
>
> e\. [Release of the Certified SCF and
> Tenders](#ReleaseOfTheCertifiedSCFandTenders)
>
> f\. [Implementing a Performance
> Decision](#ImplementingPerformanceDecisionStandard)
>
> \(1\) [Private Sector Provider](#PrivateSectorProviderStandard)
>
> \(a\) [Awarding the Contract](#AwardingTheContract)
>
> \(b\) [Right of First Refusal](#RightOfFirstRefusal)
>
> \(2\) [Public Reimbursable
> Provider](#PublicReimbursableProviderStandard)
>
> \(3\) [Agency Provider](#AgencyProviderStandard)

E. [Post Competition Accountability for Streamlined and Standard
Competitions](#POSTCOMPETITIONACCOUNTABILITYSTREam)

> 1\. [Best Practices and Lessons
> Learned](#BestPracticesAndLessonsLearned)
>
> 2\. [Execution Tracking of Streamlined and Standard
> Competitions](#ExecutionTrackingForCompetitions)
>
> 3\. [Competitive Sourcing Quarterly
> Report](#CompetitiveSourcingQuarterlyReport)
>
> 4\. [Monitoring Performance](#MonitoringPerformance)
>
> 5\. [Option Years of Performance and Follow-on
> Competition](#OptionYearsPerformanceFollowOn)
>
> a\. [Option Years of Performance](#OptionYearsOfPerformance)
>
> b\. [Follow-on Competition](#FollowOnCompetition)
>
> 6\. [Terminations](#Terminations)
>
> a\. [Terminations Based on Failure to
> Perform](#TerminationsBasedOnFailureToPerform)
>
> \(1\) [Notification](#Notification)
>
> \(2\) [Termination](#Termination)
>
> \(3\) [Temporary Remedies](#TemporaryRemedies)
>
> b\. [Terminations Based on Reasons Other than Failure to
> Perform](#TerminationsBasedOnReasonsOtherThan)

F. [Contests](#CONTESTS)

> 1\. [Standard Competitions](#CONTESTSStandardCompetitions)
>
> 2\. [Streamlined Competitions](#CONTESTSStreamlinedCompetitions)

**[Figures in Attachment B]{.underline}**

[Figure B1. The Streamlined Competition
Process](#FigureB1StreamlinedCompetitionProcess)

[Figure B2. The Standard Competition Process](#FigureB2)

[Figure B3. Example Compliance Matrix Example Compliance
Matrix](#FigureB3ComplianceMatrix)

[Figure B4. Summary of the Standard Competition Form
(SCF)](#FigureB4SummaryOfSCF)

[**CALCULATING PUBLIC-PRIVATE COMPETITION COSTS \-- ATTACHMENT
C**](#calculating-public-private-competition-costs)

A. [Overview](#AtchCOVERVIEW)

> 1\. [Public-Private Competition Costs](#PublicPrivateCompetitionCosts)
>
> a\. [COMPARE Maintenance](#COMPAREMaintenance)
>
> b\. [COMPARE Calculations](#COMPARECalculations)
>
> \(1\) [Standard Competitions](#COMPAREStandardCompetitions)
>
> \(2\) [Streamlined Competitions](#COMPAREStreamlinedCompetitions)
>
> 3\. [Competitions Between Private Sector and Public Reimbursable
> Sources](#CompetitionsBetweenPrivateSectorAndPubl)
>
> 4\. [Excluded Costs](#ExcludedCosts)
>
> 5\. [Conversion Differential](#ConversionDifferential)
>
> 6\. [Performance Periods](#AtchCPerformancePeriods)
>
> 7\. [Rounding Rule](#RoundingRule)
>
> 8\. [Phase-in Costs](#PhaseInCosts)
>
> 9\. [Inflation](#Inflation)
>
> 10\. [Standard Cost Factors](#StandardCostFactors)
>
> 11\. [Standard Competition Form](#StandardCompetitionForm) (SCF)
>
> a\. [Agency Cost Estimate](#AgencyCostEstimate)
>
> b\. [Public Reimbursable Cost
> Estimate](#PublicReimbursableCostEstimate)
>
> c\. [Negotiated Acquisition](#NegotiatedAcquisition)
>
> d\. [Sealed Bid Acquisition](#SealedBidAcquisition)
>
> 12\. [Streamlined Competition Form](#StreamlinedCompetitionForm)
> (SLCF)

B. [Cost of Agency Performance (**SCF/SLCF Lines
1-6**)](#CostAgencyPerformanceSCF_SLCFLine1_6)

[Cost of Public Reimbursable Performance (**SCF/SLCF Lines
1a-6a**)](#CostAgencyPerformanceSCF_SLCFLine1_6)

> 1\. [Scope](#AtchCScope)
>
> 2\. [Personnel Costs](#PersonnelCosts) (**SCF/SLCF Line 1/1a**)
>
> a\. [Labor Costs](#LaborCosts)
>
> b\. [Prorated Labor](#ProratedLabor)
>
> c\. [Administration and Inspection Costs for an MEO Letter of
> Obligation](#AdministrationInspectionMEOLtrObligatio)
>
> d\. [Full-Time Equivalents (FTEs)](#FullTimeEquivalents)
>
> \(1\) [FTE Rounding](#FTERounding)
>
> \(2\) [Full-time, Part-time, Temporary, and Seasonal
> FTEs](#FullTimePartTimeTemporarySeasonalFTEs)
>
> \(3\) [Intermittent FTEs](#IntermittentFTEs)
>
> e\. [Civilian Position Pay and Wages](#CivilianPositionPayAndWages)
>
> **(**1) [Calculation](#Calculation)
>
> \(2\) [Pay Rate Changes](#PayRateChanges)
>
> f\. [Civilian Position Fringe Benefits and Federal Insurance
> Contribution Act (FICA)](#CivilianPositionFringeBenefitsAndFICA)
>
> \(1\) [Full-time and Part-time Permanent Civilian
> Positions](#FullTimePartTimePermanentCivilian)
>
> \(a\) [Retirement Benefit Cost Factors](#RetirementBenefitCostFactors)
>
> \(b\) [Insurance and Health Benefit Cost
> Factor](#InsuranceHealthBenefitCostFactor)
>
> \(c\) [Medicare Benefit Cost Factor](#MedicareBenefitCostFactor)
>
> \(d\) [Miscellaneous Fringe Benefit Cost
> Factor](#MiscellaneousFringeBenefitCostFactor)
>
> \(2\) [Temporary and Intermittent Civilian
> Positions](#TemporaryIntermittentCivilianPositions)
>
> \(3\) [Seasonal Civilian Positions](#SeasonalCivilianPositions)
>
> g\. [Other Civilian Pay](#OtherCivilianPay)
>
> h\. [Other Civilian Pay Entitlements](#OtherCivilianPayEntitlements)
>
> i\. [Non-Foreign Area Civilian Employee Cost-Of-Living
> Allowance](#NonForeignAreaCivilianEmployeeCOLA)
>
> j\. [Administration and Surveillance for MEO
> Subcontracts](#AdministrationSurveillanceForMEOSubContr)
>
> k\. [Labor Escalation](#LaborEscalation)
>
> l\. [Labor Inflation Cost Factors](#LaborInflationCostFactors)
>
> \(1\) [General Schedule](#GeneralSchedule) (GS)
>
> \(2\) [Federal Wage System](#FederalWageSystem) (FWS)
>
> \(a\) [January to September Effective
> Dates](#JanuaryToSeptemberEffectiveDates)
>
> \(b\) [October to December Effective
> Dates](#OctoberToDecemberEffectiveDates)
>
> m\. [Uniformed Services Labor](#UniformedServicesLabor)
>
> 3\. [Material and Supply Costs](#MaterialSupplyCostsSCF_SLCFLine2_2a)
> (**SCF/SLCF Line 2/2a**)
>
> a\. [General](#GenerMaterialSupplyCostsSCF_SLCFLine2_2a)
>
> b\. [Cost Ceiling](#CostCeiling)
>
> c\. [Material Related Costs](#MaterialRelatedCosts)
>
> d\. [Inflation](#InflationMaterialAndSupplies)
>
> 4\. [Other Specifically Attributable
> Costs](#OtherSpecificallyAttributableCostsLine3) (**SCF/SLCF Line
> 3/3a**)
>
> a\. [Depreciation](#Depreciation)
>
> \(1\) [Minor Items](#DepreciationMinorItems)
>
> \(2\) [Capital Assets](#DepreciationCapitalAssets)
>
> \(3\) [Calculation Method](#CalculationMethod)
>
> b\. [Facilities](#Facilities)
>
> c\. [Cost of Capital](#CostOfCapital)
>
> d\. [Rent](#Rent)
>
> e\. [Utilities](#Utilities)
>
> f\. [Insurance](#Insurance)
>
> \(1\) [Casualty Insurance](#CasualtyInsurance)
>
> \(2\) [Government Furnished Property (GFP Casualty
> Insurance)](#GFPCasualtyInsurance)
>
> \(3\) [Liability Insurance](#LiabilityInsurance)
>
> g\. [Travel](#Travel)
>
> h\. [MEO Subcontracts](#MEOSubcontracts)
>
> \(1\) [Nonrecurring Workload](#NonrecurringWorkload)
>
> \(2\) [Administration and Surveillance of
> Subcontracts](#AdministrationSurveillanceSubcontracts)
>
> i\. [Maintenance and Repair Costs](#MaintenanceAndRepairCosts)
>
> j\. [Other Costs](#OtherCostsLine10)
>
> \(1\) [Minor Items](#MinorItems)
>
> \(2\) [Award Fee](#AwardFeeLine3)
>
> \(3\) [Training Costs](#TrainingCosts)
>
> 5\. [Overhead](#OverheadLine4) (**SCF/SLCF Line 4/4a**)
>
> 6\. [Additional Costs](#AdditionalCostsLine5) (**SCF Line 5/5a**)
>
> a\. [Expansions, New Requirements, or Conversions From Private Sector
> to Agency Performance](#ExpansionsExistingActivities)
>
> b\. [Medical Physical Exams](#MedicalPhysicalExams)
>
> 7\. [Total Cost of Agency
> Performance](#TotalCostAgencyPerformanceLine6) (**SCF/SLCF Line
> 6/6a**)

C. [Adjusted Cost of Private Sector or Public Reimbursable
Performance](#ADJUSTEDCOSTPRIVATESECTORorPUBLIC) (**SCF/SLCF Lines
7-13**)

> 1\. [Contract Price or Public Reimbursable Cost
> Estimate](#ContractPricePublicReimCostLine7) (**SCF/SLCF Line 7**)
>
> a\. [Contract Price](#ContractPrice)
>
> \(1\) [Sealed Bid Acquisition](#SealedBidAcquisitionLine7)
>
> \(2\) [Negotiated Acquisition](#NegotiatedAcquisitionLine7)
>
> \(a\) [Firm Fixed Price Contract](#FirmFixedPriceContract)
>
> \(b\) [Firm Fixed Price Incentive Fee
> Contract](#FirmFixedPriceIncentiveFeeContract)
>
> \(c\) [Cost-Reimbursement Contracts](#CostReimbursementContracts) (FAR
> 16.3)
>
> 1\. [Cost Plus Incentive Fee Contract](#CostPlusIncentiveFeeContract)
>
> 2\. [Cost Plus Award Fee Contract](#CostPlusAwardFeeContract)
>
> 3\. [Cost Plus Fixed Fee Contract](#CostPlusFixedFeeContract)
>
> 4\. [Cost Sharing Contract](#CostSharingContract)
>
> b\. [Public Reimbursable Cost
> Estimate](#PublicReimbursableCostEstimateLine7)
>
> c\. [Tax-Exempt Organization](#TaxExemptOrganization)
>
> d\. [Performance Bond](#PerformanceBondLine7)
>
> 2\. [Contract Administration Costs](#ContractAdministrationCosts)
> (**SCF/SLCF Line 8**)
>
> 3\. [Additional Costs](#AdditionalCostsLine5) (**SCF Line 9**)
>
> a\. [Nonprofit Agency Fees](#NonprofitAgencyFees)
>
> b\. [Incentive Fees](#IncentiveFee)
>
> 4\. [One-time Conversion Costs](#OneTimeConversionCosts) (**SCF Line
> 10**)
>
> a\. [Severance Costs](#SeveranceCosts)
>
> b\. [Other Costs](#OtherCostsLine10)
>
> c\. [Annualize Basic Pay](#AnnualizeBasicPay)
>
> 5\. [Gain on Assets](#GainOnAssets) (**SCF Line 11**)
>
> 6\. [Federal Income Tax Adjustment](#FederalIncomeTaxAdjustment)
> (SCF/SLCF Line 12)
>
> 7\. [Total Adjusted Cost of Private Sector or Public Reimbursable
> Performance](#TotalAdjustedCostPrivateSectorPublicReim) (**SCF/SLCF
> Line 13**)

D. [Conversion Differential](#CONVERSIONDIFFERENTIALline14) (**SCF Line
14**)

> 1\. [Expansions, New Requirements, or Conversions From Contract To
> Agency Performance](#ExpansionsNewRequirementsLine14)
>
> a\. [Standard Competition of a Segregable
> Expansion](#SegregableExpansionLine14)
>
> b\. [Standard Competition of Activity and
> Expansion](#StandardCompetitionOfActivityAndExpansio)
>
> 2\. [Partial Conversion From Private Sector to Agency
> Performance](#PartialConversionFromPrivateSectorToAgen)

E. [Adjusted Total Cost of Agency
Performance](#ADJUSTEDTOTALCOSTOFAGENCYPERFORMANCEline) (**SCF Line
15**)

F. [Adjusted Total Cost of Private Sector or Public Reimbursable
Performance](#ADJUSTEDTOTALCOSTPRIVATESECTORPublic) (**SCF Line 16**)

G. [The Cost Difference](#THECOSTDIFFERENCEline17) (**SCF/SLCF LINE
17**)

H. [Low Cost Provider](#LOWCOSTPROVIDERLine18) (**SCF/SLCF Line 18**)

**[Figures in Attachment C]{.underline}**

[Figure C1. Standard Costing
Factors](#FigureC1TableOfStandardCostingFactors)

[Figure C2. Standard Competition Form](#FigureC2StandardCostingForm)

[Figure C3. Streamlined Competition
Form](#FigureC3StreamlinedCostingForm)

[Figure C4. Table of Facility Useful Life Expectancies](#FigureC4)

[Figure C5. GFP Clauses and Casualty Insurance Requirements](#FigureC5)

[Figure C6. Contract Administration Factors and Allowable
Grades](#FigureC6)

[Figure C7. Gain on Capital Assets (Sample Calculation)](#FigureC7)

[**ACRONYMS AND DEFINITIONS \-- ATTACHMENT
D**](#AtchDACRONYMSANDDEFINITIONS)

A. [Acronyms](#ACRONYMS)

> ATO FAR HRA SLCF
>
> CDRL FICA MEO SSA
>
> C.F.R. FTE OMB SSEB
>
> CLIN FWS OPM U.S.C.
>
> CO GAO PWS VERA
>
> CSO GFP SCA VSIP
>
> FAIR GS SCF

B. [Definitions](#DEFINITIONS)

> Activity Information Technology
>
> Adversely Affected Employees Inherently Governmental Activities
>
> Agency Cost Estimate Interested Parties
>
> Agency Performance Inventory
>
> Agency Source MEO Letter of Obligation
>
> Agency Tender MEO Subcontracts
>
> Agency Tender Official (ATO) MEO Team
>
> Annualize Military Personnel
>
> Basic Pay Most Efficient Organization (MEO)
>
> Capital Improvement New Requirement
>
> Civilian Employee Non-Pay Categories of Costs
>
> Commercial Activity Offer
>
> Common Costs Overhead
>
> COMPARE Past Performance
>
> COMPARE Version Control Log Pay Categories of Cost
>
> COMPARE User\'s Guide Performance Decision
>
> COMPARE Tables Performance Standards
>
> Competition Performance Work Statement (PWS)
>
> Competition File Phase-in Plan
>
> Competition Officials Privatization
>
> Competitive Sourcing Official (CSO) Prospective Providers
>
> Component Provider
>
> Contracting Officer (CO) Public Announcement
>
> Conversion From Contract Public Reimbursable Source
>
> Conversion To Contract Public Reimbursable Tender
>
> Depreciation PWS Team
>
> Direct Labor Quality Assurance Surveillance
>
> Directly Affected Employees Quality Assurance Surveillance Plan
>
> Directly Affected Government Personnel Quality Control Plan
>
> Directly Interested Party Representatives of Directly Affected
> Employees
>
> Divestiture Residual Value
>
> Employee Transition Plan Resources
>
> End Date Segregable Expansion
>
> Expansion SHARE A-76!
>
> FedBizOpps.gov Solicitation Closing Date
>
> Fee-for-Service Agreement Source
>
> First Period of Full Performance Source Selection Authority (SSA)
>
> Foreign National Employee Source Selection Evaluation Board (SSEB)
>
> Full-Time Equivalent (FTE) Standard Competition Form (SCF)
>
> Function Code Start Date
>
> Government Furnished Property (GFP) Streamlined Competition Form
> (SLCF)
>
> Government Personnel Uniformed Services
>
> Human Resource Advisor (HRA) Useful Life
>
> Incumbent Service Provider

####### INVENTORY PROCESS

[]{#AttachmentAInventoryProcess .anchor}

**A.** []{#InventoryRequirements .anchor}**[INVENTORY
REQUIREMENTS]{.underline}.**

> **1.** []{#AgencyInventories .anchor}**Agency Inventories.** An agency
> shall prepare two annual inventories that categorize all activities
> performed by government personnel as either commercial or inherently
> governmental.
>
> **2.** []{#AnnualRequirement .anchor}**Annual Requirement.** By June
> 30 of each year, an agency shall submit the following by electronic
> mail (e-mail) to OMB (a) an inventory of commercial activities
> performed by government personnel; (b) an inventory of inherently
> governmental activities performed by government personnel; and (c) an
> inventory summary report. An agency may provide aggregate data for
> uniformed services personnel and foreign nationals performing
> inherently governmental activities. For annual inventories, an agency
> shall use the format and data requirements found at the OMB web site
> ([www.OMB.gov](http://www.OMB.gov/)).
>
> **3.** []{#OMBReviewAndConsultation .anchor}**OMB Review and
> Consultation.** OMB shall, on an annual basis, review both agency
> inventories and consult with the agency regarding the content of both
> agency inventories.
>
> **4.** **Congressional and Public Notification.** After OMB review and
> consultation, an agency shall make both inventories available to
> Congress and the public unless the inventory information is classified
> or otherwise protected for national security reasons. OMB shall
> publish a notice of availability in the *Federal Register*.
>
> **5.** []{#InventorySummaryReport .anchor}**Inventory Summary
> Report.** An agency shall submit an annual inventory summary in the
> format in Figure A1. to identify aggregate data. The total of the two
> agency inventories shall reasonably equate to an agency's authorized
> personnel requirements. An agency shall make the annual inventory
> summary report available to the public unless the inventory
> information is classified or otherwise protected for national security
> reasons.

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 14%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p id="fiscal-year-xxxx-annual-inventory-summary"
class="heading">Fiscal Year XXXX Annual Inventory Summary</p></td>
</tr>
<tr class="even">
<td rowspan="2"><strong><span
class="smallcaps">Agency</span>:</strong></td>
<td colspan="5"><strong><span class="smallcaps">Commercial Activity
Inventory</span></strong></td>
<td colspan="4"><strong>Inherently Governmental Inventory</strong></td>
</tr>
<tr class="odd">
<td><p>FAIR</p>
<p>Act</p></td>
<td>Uniformed Services</td>
<td><p>Foreign</p>
<p>Nationals</p></td>
<td>Other</td>
<td><strong><u>TOTAL</u></strong></td>
<td><p>Inherently</p>
<p>Governmental*</p></td>
<td><p>Uniformed</p>
<p>Services</p></td>
<td><p>Foreign</p>
<p>Nationals</p></td>
<td><strong><u>TOTAL</u></strong></td>
</tr>
<tr class="even">
<td><p>Agency</p>
<p>Component A</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><p>Agency</p>
<p>Component B</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><p><strong>AGENCY</strong></p>
<p><strong>TOTAL</strong></p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="10">*Minus uniformed services personnel and foreign
nationals</td>
</tr>
<tr class="even">
<td colspan="10"><span id="FigA1FiscalYearXXAnnualInventorySum"
class="anchor"></span><strong>Figure A1.</strong></td>
</tr>
</tbody>
</table>

**B.** []{#CategorizingActivitiesPerformedbyGov .anchor}**[CATEGORIZING
ACTIVITIES PERFORMED BY GOVERNMENT PERSONNEL AS]{.underline} [Inherently
governmental OR COMMERCIAL]{.underline}.**

> **1.** []{#InherentlyGovernmentalActivities .anchor}**Inherently
> Governmental Activities.** The CSO shall justify, in writing, any
> designation of government personnel performing inherently governmental
> activities. The justification shall be made available to OMB and the
> public upon request. An agency shall base inherently governmental
> justifications on the following criteria:
>
> **a.** An inherently governmental activity is an activity that is so
> intimately related to the public interest as to mandate performance by
> government personnel. These activities require the exercise of
> substantial discretion in applying government authority and/or in
> making decisions for the government. 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. An inherently governmental activity involves:
>
> **(1)** Binding the United States to take or not to take some action
> by contract, policy, regulation, authorization, order, or otherwise;
>
> **(2)** Determining, protecting, and advancing economic, political,
> territorial, property, or other interests by military or diplomatic
> action, civil or criminal judicial proceedings, contract management,
> or otherwise;
>
> **(3)** Significantly affecting the life, liberty, or property of
> private persons; or
>
> **(4)** Exerting ultimate control over the acquisition, use, or
> disposition of United States property (real or personal, tangible or
> intangible), including establishing policies or procedures for the
> collection, control, or disbursement of appropriated and other federal
> funds.

**b.** While inherently governmental activities require the exercise of
substantial discretion, not every exercise of discretion is evidence
that an activity is inherently governmental. Rather, 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
that (1) identify specified ranges of acceptable decisions or conduct
and (2) subject the discretionary authority to final approval or regular
oversight by agency officials.

> **c**. An activity may be provided by contract support (i.e., a
> private sector source or a public reimbursable source using contract
> support) where the contractor does not have the authority to decide on
> the course of action, but is tasked to develop options or implement a
> course of action, with agency oversight. An agency shall consider the
> following to avoid transferring inherently governmental authority to a
> contractor:
>
> **(1)** Statutory restrictions that define an activity as inherently
> governmental;
>
> **(2)** The degree to which official discretion is or would be
> limited, i.e., whether involvement of the private sector or public
> reimbursable provider is or would be so extensive that the ability of
> senior agency management to develop and consider options is or would
> be inappropriately restricted;
>
> **(3)** In claims or entitlement adjudication and related services (a)
> the finality of any action affecting individual claimants or
> applicants, and whether or not review of the provider's action is de
> novo on appeal of the decision to an agency official; (b) the degree
> to which a provider may be involved in wide-ranging interpretations of
> complex, ambiguous case law and other legal authorities, as opposed to
> being circumscribed by detailed laws, regulations, and procedures; (c)
> the degree to which matters for decisions may involve recurring fact
> patterns or unique fact patterns; and (d) the discretion to determine
> an appropriate award or penalty;
>
> **(4)** The provider's authority to take action that will
> significantly and directly affect the life, liberty, or property of
> individual members of the public, including the likelihood of the
> provider's need to resort to force in support of a police or judicial
> activity; whether the provider is more likely to use force, especially
> deadly force, and the degree to which the provider may have to
> exercise force in public or relatively uncontrolled areas. These
> policies do not prohibit contracting for guard services, convoy
> security services, pass and identification services, plant protection
> services, or the operation of prison or detention facilities, without
> regard to whether the providers of these services are armed or
> unarmed;
>
> **(5)** The availability of special agency authorities and the
> appropriateness of their application to the situation at hand, such as
> the power to deputize private persons; and
>
> **(6)** Whether the activity in question is already being performed by
> the private sector.
>
> **2.** []{#CommercialActivities .anchor}**Commercial Activities.** A
> commercial activity is a recurring service that could be performed by
> the private sector and is resourced, performed, and controlled by the
> agency through performance by government personnel, a contract, or a
> fee-for-service agreement. A commercial activity is not so intimately
> related to the public interest as to mandate performance by government
> personnel. Commercial activities may be found within, or throughout,
> organizations that perform inherently governmental activities or
> classified work.

**C.** []{#ReasonCodesforCommercialActivities .anchor}**[REASON CODES
FOR COMMERCIAL ACTIVITIES]{.underline}.**

> **1.** []{#AnnualProcedures .anchor}**Annual Procedures.** An agency
> shall use reason codes A-F, identified in Figure A2. below, to
> indicate the rationale for government performance of a commercial
> activity. Annual supplemental procedures for the use of these reason
> codes may be found at the OMB web site.

+----+-----------------------------------------------------------------+
|    | > **[Reason Codes and Definitions for Commercial Activities     |
|    | > Inventory]{.smallcaps}**                                      |
+----+-----------------------------------------------------------------+
| C  | [Definitions]{.smallcaps}                                       |
| od |                                                                 |
| es |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is not appropriate for private sector   |
| a] | performance pursuant to a written determination by the CSO.     |
| {. |                                                                 |
| sm |                                                                 |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is suitable for a streamlined or        |
| b] | standard competition.                                           |
| {. |                                                                 |
| sm |                                                                 |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is the subject of an in-progress        |
| c] | streamlined or standard competition.                            |
| {. |                                                                 |
| sm |                                                                 |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is performed by government personnel as |
| d] | the result of a standard or streamlined competition (or a cost  |
| {. | comparison, streamlined cost comparison, or direct conversion)  |
| sm | within the past five years.                                     |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is pending an agency approved           |
| e] | restructuring decision (e.g., closure, realignment).            |
| {. |                                                                 |
| sm |                                                                 |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  | The commercial activity is performed by government personnel    |
| f] | due to a statutory prohibition against private sector           |
| {. | performance.                                                    |
| sm |                                                                 |
| al |                                                                 |
| lc |                                                                 |
| ap |                                                                 |
| s} |                                                                 |
+----+-----------------------------------------------------------------+
| [  |                                                                 |
| ]{ |                                                                 |
| #F |                                                                 |
| ig |                                                                 |
| A2 |                                                                 |
| Re |                                                                 |
| as |                                                                 |
| on |                                                                 |
| Co |                                                                 |
| de |                                                                 |
| sa |                                                                 |
| nd |                                                                 |
| De |                                                                 |
| fi |                                                                 |
| ni |                                                                 |
| ti |                                                                 |
| on |                                                                 |
| sf |                                                                 |
| or |                                                                 |
| Co |                                                                 |
| .a |                                                                 |
| nc |                                                                 |
| ho |                                                                 |
| r} |                                                                 |
| ** |                                                                 |
| Fi |                                                                 |
| gu |                                                                 |
| re |                                                                 |
| A  |                                                                 |
| 2. |                                                                 |
| ** |                                                                 |
+----+-----------------------------------------------------------------+

> **2.** []{#ReasonCodeA .anchor}**Reason Code A.** The CSO may use
> reason code A to exempt commercial activities performed by government
> personnel from private sector performance. The CSO shall provide
> sufficient written justification for reason code A exemptions. These
> written justifications for the use of reason code A shall be available
> to OMB and the public, upon request.

**D.** []{#InventoryChallengeProcess .anchor}**[InVENTORY Challenge
Process]{.underline}.** An agency shall implement the following
inventory challenge process.

> **1.** []{#DesignationOfInventoryChallengeAndAppeal
> .anchor}**Designation of Inventory Challenge and Appeal Authorities.**
> The head of the agency shall designate inventory challenge authorities
> and inventory appeal authorities as follows:
>
> **a.** []{#InventoryChallenges .anchor}**Inventory Challenges.**
> Inventory challenge authorities shall be agency officials at the same
> level as, or a higher level than, the individual who prepared the
> inventory. Inventory challenge authorities shall review and respond to
> challenges of agency inventory decisions.
>
> **b.** []{#InventoryAppeals .anchor}**Inventory Appeals.** Inventory
> appeal authorities shall be agency officials who are independent and
> at a higher level in the agency than inventory challenge authorities,
> and shall review and respond to appeals of inventory challenge
> decisions made by inventory challenge authorities.
>
> **2.** []{#SubmissionOfAnInventoryChallenge .anchor}**Submission of an
> Inventory Challenge.** After publication of OMB's *Federal Register*
> notice stating that an agency's inventories are available, an
> interested party shall have 30 working days to submit a written
> inventory challenge. The inventory challenge shall be limited to (a)
> the classification **(this used to say "reclassification" -- Changed
> by technical correction made by OMB Memorandum M-03-20)** of an
> activity as inherently governmental or commercial, or (b) the
> application of reason codes. Function codes shall not be subject to
> the inventory challenge process. A written inventory challenge shall
> be submitted to agency inventory challenge authorities and shall
> specify the agency, agency component, agency organization,
> function(s), and location(s) for the activities being challenged.
>
> **3.** []{#InventoryChallengeDecision .anchor}**Inventory Challenge
> Decision.** Within 28 working days of receiving the inventory
> challenge, inventory challenge authorities shall (a) validate the
> commercial or inherently governmental categorization or reason code
> designation of the activity, in a written inventory challenge
> decision; and (b) transmit the inventory challenge decision, including
> the rationale for the decision, to the interested party. Inventory
> challenge authorities shall include an explanation of the interested
> party's right to file an appeal in any adverse challenge decision.
>
> **4.** []{#SubmissionOfAnAppealOfAnInventory .anchor}**Submission of
> an Appeal of an Inventory Challenge Decision.** Upon receipt of an
> adverse inventory challenge decision, an interested party shall have
> 10 working days to submit a written appeal of this decision to
> inventory appeal authorities.
>
> **5.** []{#InventoryAppealDecision .anchor}**Inventory Appeal
> Decision.** Within 10 working days of receipt of the appeal, inventory
> appeal authorities shall issue and transmit a written inventory appeal
> decision to the interested party. This inventory appeal decision shall
> include the rationale for the decision.
>
> **6.** []{#InventoryChanges .anchor}**Inventory Changes.** When the
> inventory challenge process results in a change to an agency
> inventory, the agency shall (a) transmit a copy of the change to OMB
> and Congress; (b) make these changes available to the public; and (c)
> publish a notice of public availability in the *Federal Register***.**

####### PUBLIC-PRIVATE COMPETITION

> []{#AttchBPUBLIC_PRIVATECOMPETITION .anchor}

**A.** []{#PRELIMINARYPLANNING .anchor}**[PRELIMINARY
PLANNING]{.underline}.** Before the public announcement (start date) of
a streamlined or standard competition, an agency shall complete, at a
minimum, the following steps:

> **1.** []{#AtchBScope .anchor}**Scope.** Determine the activities and
> full time equivalent (FTE) positions to be competed.
>
> **2.** []{#Grouping .anchor}**Grouping.** Conduct preliminary research
> to determine the appropriate grouping of activities as business units
> (e.g., consistent with market and industry structures).
>
> **3.** []{#WorkloadDataAndSystems .anchor}**Workload Data and
> Systems.** Assess the availability of workload data, work units,
> quantifiable outputs of activities or processes, agency or industry
> performance standards, and other similar data. Establish data
> collection systems as necessary.
>
> **4.** []{#BaselineCosts .anchor}**Baseline Costs.** Determine the
> activity's baseline costs as performed by the incumbent service
> provider.
>
> **5.** []{#TypeOfCompetition .anchor}**Type of Competition.**
> Determine the use of a streamlined or standard competition.

a.  An agency shall use a standard competition if, on the start date, a
    commercial activity is performed by:

> **(1)** The agency with an aggregate of more than 65 FTEs; or
>
> **(2)** A private sector or public reimbursable source and the agency
> tender will include an aggregate of more than 65 FTEs.

b.  An agency shall use either a streamlined or standard competition if,
    on the start date, a commercial activity is performed by:

> **(1)** The agency with an aggregate of 65 or fewer FTEs and/or any
> number of military personnel; or
>
> **(2)** A private sector or public reimbursable source and the agency
> cost estimate (for a streamlined competition) or the agency tender
> (for a standard competition) will include an aggregate of 65 or fewer
> FTEs.
>
> **6.** []{#Schedule .anchor}**Schedule.** Develop preliminary
> competition and completion schedules.
>
> **7.** []{#RolesAndResponsibilitiesOfParticipants .anchor}**Roles and
> Responsibilities of Participants.** Determine roles and
> responsibilities of participants in the process and their availability
> for the duration of the streamlined or standard competition.
>
> **8.** []{#CompetitionOfficials .anchor}**Competition Officials.**
> Appoint competition officials. The CSO shall appoint competition
> officials for each standard competition, and, as appropriate, may
> appoint competition officials for streamlined competitions. The CSO
> shall appoint all competition officials, in writing, and shall hold
> these competition officials accountable for the timely and proper
> conduct of streamlined or standard competitions through the use of
> annual performance evaluations.

a.  []{#AgencyTenderOfficial .anchor}**Agency Tender Official (ATO).**
    The ATO shall (1) be an inherently governmental agency official with
    decision-making authority; (2) comply with this circular; (3) be
    independent of the contracting officer (CO), source selection
    authority (SSA), source selection evaluation board (SSEB), and
    performance work statement (PWS) team; (4) develop, certify, and
    represent the agency tender; (5) designate the most efficient
    organization (MEO) team after public announcement of the standard
    competition; (6) provide the necessary resources and training to
    prepare a competitive agency tender; and (7) be a directly
    interested party. An agency shall ensure that the ATO has access to
    available resources (e.g., skilled manpower, funding) necessary to
    develop a competitive agency tender.

b.  []{#ContractingOfficer .anchor}**Contracting Officer (CO).** The CO
    shall (1) be an inherently governmental agency official; (2) comply
    with both the FAR and this circular; (3) be independent of the ATO,
    human resource advisor (HRA), and MEO team; and (4) be a member of
    the PWS team.

c.  []{#PWSTeamLeader .anchor}**PWS (Performance Work Statement) Team
    Leader.** The PWS team leader shall (1) be an inherently
    governmental agency official; (2) comply with both the FAR and this
    circular; (3) be independent of the ATO, HRA and MEO team; (4)
    develop the PWS and quality assurance surveillance plan; (5)
    determine government-furnished property (GFP); (6) assist the CO in
    developing the solicitation; and (7) assist in implementing the
    performance decision.

d.  []{#HumanResourceAdvisor .anchor}**Human Resource Advisor (HRA).**
    The HRA shall (1) be an inherently governmental agency official and
    a human resource expert; (2) comply with this circular; (3) be
    independent of the CO, SSA, PWS team, and SSEB; (4) participate on
    the MEO team; and (5) be responsible for the following:

> **(1)** []{#EmployeeAndLaborRelationsRequirement .anchor}**Employee
> and Labor-Relations Requirements.** The HRA shall, at a minimum,
> perform the following (a) interface with directly affected employees
> (and their representatives) from the date of public announcement until
> full implementation of the performance decision; (b) identify
> adversely affected employees; (c) accomplish employee placement
> entitlements in accordance with 5 C.F.R. Part 351 (reduction-in-force
> procedures); (d) provide post-employment restrictions to employees;
> (e) determine agency priority considerations for vacant positions and
> establish a reemployment priority list(s) in accordance with 5 C.F.R.
> Part 330; and (f) provide the CO with a list of the agency's adversely
> affected employees, as required by this attachment and FAR 7.305(c)
> regarding the right of first refusal for a private sector performance
> decision.
>
> **(2)** []{#MEOTeamRequirements .anchor}**MEO Team Requirements.** The
> HRA shall assist the ATO and MEO team in developing the agency tender.
> During development of the agency tender, the HRA shall be responsible
> for (a) scheduling sufficient time in competition milestones to
> accomplish potential human resource actions in accordance with 5
> C.F.R. Part 351; (b) advising the ATO and MEO team on position
> classification restrictions; (c) classifying position descriptions,
> including exemptions based on the Fair Labor Standards Act (d)
> performing labor market analysis to determine the availability of
> sufficient labor to staff the MEO and implement the phase-in plan; (e)
> assisting in the development of the agency cost estimate by providing
> annual salaries, wages, night differentials, and premium pay; (f)
> assisting in the development of the timing for the phase-in plan based
> on MEO requirements; and (g) developing an employee transition plan
> for the incumbent agency organization early in the standard
> competition process.
>
> **e.** []{#SourceSelectionAuthority .anchor}**Source Selection
> Authority (SSA).** The SSA shall (1) be an inherently governmental
> agency official appointed in accordance with FAR Part 15.303; (2)
> comply with both the FAR and this circular when performing a
> streamlined and standard competition; and (3) be independent of the
> ATO, HRA, and MEO team. The SSA shall not appoint an SSEB until after
> public announcement.

**9.** []{#IncumbentServiceProviders .anchor}**Incumbent Service
Providers.** Inform any incumbent service providers of the date that the
public announcement will be made**.**

**B.** []{#PUBLICANNOUNCEMENTS .anchor}**[Public
AnnouncementS]{.underline}.**

> **1.** []{#StartDate .anchor}**Start Date (Public Announcement
> Date).** An agency shall make a formal public announcement (at the
> local level and via *FedBizOpps.gov*) for each streamlined or standard
> competition. The public announcement shall include, at the minimum,
> the agency, agency component, location, type of competition
> (streamlined or standard), activity being competed, incumbent service
> providers, number of government personnel performing the activity,
> name of the CSO, name of the contracting officer, name of the ATO, and
> projected end date of the competition. The public announcement date is
> the official start date for a streamlined or standard competition.
>
> **2.** []{#EndDate .anchor}**End Date (Performance Decision Date).**
> An agency shall make a formal public announcement (at the local level
> and via *FedBizOpps.gov*) of the streamlined or standard competition
> performance decision. The performance decision date is the official
> end date for a streamlined or standard competition. The end date of a
> streamlined competition shall be the date that all SLCF certifications
> are complete, signifying a performance decision. The end date of a
> standard competition shall be the date that all SCF certifications are
> complete, signifying a performance decision.
>
> **3.** []{#Cancellations .anchor}**Cancellations.**
>
> **a.** []{#CancellationOfStreamlinedOrStandard .anchor}**Cancellation
> of a Streamlined or Standard Competition.** The CSO (without
> delegation) may approve, in writing, the cancellation of a streamlined
> or standard competition. After approval by the CSO, the CO shall
> publish a cancellation notice that includes rationale for the
> cancellation at *FedBizOpps.gov* and the HRA shall notify directly
> affected employees and their representatives of the cancellation. No
> cancellation is necessary prior to public announcement of a
> streamlined or standard competition.
>
> **b.** []{#CancellationofSolicitation .anchor}**Cancellation of a
> Solicitation.** The CO shall be responsible for canceling a
> solicitation in accordance with the FAR, and shall publish a
> cancellation notice at *FedBizOpps.gov*. The HRA shall notify directly
> affected employees and their representatives of the cancellation. The
> cancellation of a solicitation does not result in the cancellation of
> a streamlined or standard competition.

**C.** []{#STREAMLINEDCOMPETITIONPROCEDURES .anchor}**[STREAMLINED
COMPETITION PROCEDURES]{.underline}.**

![](media/image1.wmf){width="6.46875in" height="3.067361111111111in"}

[]{#FigureB1StreamlinedCompetitionProcess .anchor}**Figure B1.**

> **1. Streamlined Competition Form (SLCF).** After public announcement,
> an agency shall calculate, compare, and certify costs based upon the
> scope and requirements of the activity to determine and document a
> cost-effective performance decision by completing the SLCF as follows:
>
> **a.** []{#CostOfAgencyPerformance .anchor}**Cost of Agency
> Performance.** An agency shall calculate and certify the cost of
> performing the activity with government personnel in accordance with
> Attachment C for a minimum of three performance periods by completing
> SLCF Lines 1, 2, 3 (limited to awarded contracts supporting agency
> performance of the activity), 4, and 6. An agency may base the agency
> cost estimate on the incumbent activity; however, an agency is
> encouraged develop a more efficient organization, which may be an MEO.
>
> **b.** []{#CostOfPrivateSectorPublicReimbursable .anchor}**Cost of
> Private Sector/Public Reimbursable Performance.** An agency shall
> determine an estimated contract price for performing the activity with
> a private sector source, using documented market research or
> soliciting cost proposals in accordance with the FAR. An agency may
> also determine an estimated cost for performing the activity with a
> public reimbursable source by calculating (or requesting that a public
> reimbursable source calculate) SLCF Lines 1a, 2a, 3a (limited to
> awarded contracts), 4a, and 6a. An agency shall enter and certify an
> estimated contract price or public reimbursable cost on SLCF Line 7 in
> accordance with Attachment C for a minimum of three performance
> periods.
>
> **c.** []{#AdjustedCostEstimate .anchor}**Adjusted Cost Estimate.** An
> agency shall calculate and certify the adjusted costs for SLCF Lines
> 8, 12, 13, and 17 to determine and certify a cost effective source as
> reflected on SLCF Line 18 in accordance with Attachment C. An agency
> shall not calculate any other SLCF lines for a streamlined
> competition.
>
> **d.** []{#CostEstimateFirewalls .anchor}**Cost Estimate Firewalls.**
> An agency shall ensure that the individual(s) preparing the agency
> cost estimate and the individual(s) preparing the private
> sector/public reimbursable cost estimate shall be different, and shall
> not share information concerning their respective estimates.
>
> **2.** []{#TimeLimit .anchor}**Time Limit.** A streamlined competition
> shall not exceed 90 calendar days from public announcement (start
> date) to performance decision (end date) unless the CSO grants a time
> limit waiver. Before the public announcement of each streamlined
> competition, the CSO may grant a time limit waiver, in writing,
> allowing a specific streamlined competition to exceed the 90 day time
> limit by no more than 45 calendar days, for a maximum of 135 calendar
> days from public announcement (start date) to performance decision
> (end date). The CSO may only grant a time limit waiver if the CSO
> expects the agency to create an MEO or issue a solicitation for
> private sector offers. If an agency cannot complete an announced
> streamlined competition within the time limit, the agency shall either
> convert the streamlined competition to a standard competition or
> request an additional extension of time from OMB using the deviation
> procedure in paragraph 5.c. of this circular.
>
> **3.** []{#PerformanceDecisionStreamlinedCompetitio
> .anchor}**Performance Decision in a Streamlined Competition.**
>
> **a.** []{#SLCFCertifications .anchor}**SLCF Certifications.** An
> agency shall make three certifications on the SLCF in accordance with
> Attachment C to determine a performance decision. A different
> individual shall make each of these certifications.
>
> **b.** []{#SLCFReview .anchor}**SLCF Review.** Consistent with
> procurement integrity, ethics, and standards of conduct rules,
> including the restrictions of 18 U.S.C. § 208, agencies shall allow
> incumbent service providers to review the SLCF prior to the public
> announcement of a performance decision.
>
> **c.** []{#PublicAnnouncementStreamlined .anchor}**Public
> Announcement.** The agency shall make a formal public announcement (at
> the local level and via *FedBizOpps.gov*) of the performance decision.
> The SLCF shall be made available to the public, upon request. If the
> agency cost estimate includes any support contracts, the agency shall
> not release proprietary information contained in these contracts.
>
> **d.** []{#ImplementingStreamlinedDecision .anchor}**Implementing the
> Streamlined Performance Decision.** An agency shall implement the
> performance decision resulting from a streamlined competition as
> follows:
>
> **(1)** []{#StreamlinedPrivateSectorOrPublicReimDec .anchor}**Private
> Sector or Public Reimbursable Performance Decision.** The CO may issue
> a solicitation to determine a private sector or public reimbursable
> service provider. For a private sector performance decision, the CO
> shall award a contract in accordance with the FAR and shall implement
> FAR 7.305(c), the right of first refusal. For a public reimbursable
> performance decision, the CO shall execute a fee-for-service agreement
> with the public reimbursable source.
>
> **(2)** []{#AgencyPerformanceDecisionStreamlined .anchor}**Agency
> Performance Decision.** The CO shall execute a letter of obligation
> with an official responsible for performing the commercial activity.

**D.** []{#STANDARDCOMPETITIONPROCEDURES .anchor}**[STANDARD COMPETITION
PROCEDURES]{.underline}.**

> ![](media/image2.wmf){width="5.620833333333334in"
> height="3.8152777777777778in"}
>
> []{#FigureB2 .anchor}**Figure B2.**
>
> **1.** []{#TimeLimitStandard .anchor}**Time Limit.** A standard
> competition shall not exceed 12 months from public announcement (start
> date) to performance decision (end date) unless the CSO (without
> delegation) grants a time limit waiver. Before the public announcement
> of each standard competition, the CSO may grant a time limit waiver,
> in writing, allowing a specific standard competition to exceed the 12
> month time limit by no more than 6 months, for a maximum of 18 months
> from public announcement (start date) to performance decision (end
> date). The CSO may only grant a time limit waiver if the CSO (a)
> expects the standard competition to be particularly complex; (b) signs
> the time limit waiver before public announcement; and (c) provides a
> copy of the time limit waiver to the Deputy Director for Management,
> OMB, before public announcement. If an agency exceeds these time
> limits, including any extension that is the subject of the CSO's
> waiver, the CSO (without delegation) shall notify the Deputy Director
> for Management, OMB, in writing.
>
> **2.** []{#TeamDesignationsResponsibilities .anchor}**Team
> Designations, Responsibilities, and Restrictions.**
>
> **a. Performance Work Statement (**[]{#PWSTeam .anchor}**PWS) Team.**
> After public announcement, the PWS team leader shall appoint a PWS
> team comprised of technical and functional experts. The PWS team shall
> comply with the FAR and this circular, and assist the PWS team leader
> with (1) developing the PWS including supporting workload data,
> performance standards, and any information relating to the activity
> being competed; (2) determining GFP; (3) assisting in the CO's
> development of the solicitation; (4) developing a quality assurance
> surveillance plan and, as required, updating this plan based on the
> performance decision; and (7) implementing the performance decision.
> The PWS team leader shall make all final management decisions
> regarding the PWS, GFP, and the quality assurance surveillance plan.
> Other individuals with expertise in management analysis, work
> measurement, value engineering (see OMB Circular A-131), industrial
> engineering, cost analysis, procurement, and the technical aspects of
> the activity may also assist this team. Directly affected government
> personnel (and their representatives) may participate on the PWS team;
> however, to avoid any appearance of a conflict of interest, members of
> the PWS team (including, but not limited to, advisors and consultants)
> shall not be members of the MEO team.
>
> **b.** []{#MEOTeam .anchor}**Most Efficient Organization (MEO) Team.**
> After public announcement, the ATO shall appoint an MEO team comprised
> of technical and functional experts. The MEO team shall comply with
> this circular and assist the ATO in developing the agency tender. The
> ATO shall make all final management decisions regarding the agency
> tender. Other individuals with expertise in management analysis,
> position classification, work measurement, value engineering (see OMB
> Circular A-131), industrial engineering, cost analysis, procurement,
> and the technical aspects of the activity may also assist this team.
> Directly affected government personnel (and their representatives) may
> participate on the MEO team; however, to avoid any appearance of a
> conflict of interest, members of the MEO team (including, but not
> limited to, the ATO, HRA, advisors and consultants) shall not be
> members of the PWS team.
>
> **c.** []{#SourceSelectionEvaluationBoardSSEB .anchor}**Source
> Selection Evaluation Board (SSEB).** After public announcement of a
> standard competition that will be a negotiated procurement, the SSA
> shall appoint an evaluation team (referred to as the SSEB) in
> accordance FAR Subpart 15.303. The SSA shall ensure that the SSEB
> complies with the source selection requirements of the FAR and this
> attachment. PWS team members who are not directly affected government
> personnel may participate on the SSEB. Directly affected personnel
> (and their representatives) and any individual (including, but not
> limited to, the ATO, HRA, MEO team members, advisors, and consultants)
> with knowledge of the agency tender (including the MEO and agency cost
> estimate) shall not participate in any manner on the SSEB (e.g., as
> members or advisors).
>
> **3.** []{#SolicitationAndQualityAssuranceSP .anchor}**The
> Solicitation and Quality Assurance Surveillance Plan.**
>
> **a.** []{#Solicitation .anchor}**Solicitation.** An agency shall not
> issue a solicitation that places any prospective provider at an unfair
> competitive advantage. When developing and issuing a solicitation for
> a standard competition, the CO shall comply with the FAR and the
> following:
>
> **(1)** []{#ReviewandReleaseOfInformation .anchor}**Review and Release
> of Information.** An agency is encouraged to post a draft of the PWS
> or solicitation for public review and comment, including review and
> comment by directly affected employees and representatives of directly
> affected employees. All releases of the PWS and solicitation,
> including drafts, shall be by the CO. Information that is developed by
> the ATO or MEO team shall be considered procurement sensitive. With
> the exception of information related to the performance or
> productivity of the incumbent agency organization, historical data or
> other existing information that is available to the ATO or MEO team
> shall be made available to all prospective providers.
>
> **(2)** []{#FARProvisions .anchor}**FAR Provisions.** The CO, in
> consultation with the PWS team, shall determine the acquisition
> strategy in accordance with FAR Part 7, which may include the use of
> FAR Parts 6, 14, 15, or 36. When the agency is the incumbent service
> provider, the CO shall comply with FAR 7.305(c) regarding the right of
> first refusal. The CO shall comply with FAR Subpart 22.10 to obtain
> the applicable wage determinations from the Department of Labor.
>
> **(3)** []{#AcquisitionProcessAndSourceSelection .anchor}**Acquisition
> Process and Source Selection Provisions.** The CO shall identify in
> the solicitation whether the acquisition procedures will be sealed bid
> or negotiated procedures. If negotiated procedures will be used, the
> CO shall identify in the solicitation the type of source selection
> process (i.e., lowest price technically acceptable, phased evaluation,
> tradeoff).
>
> **(a)** []{#EvaluationFactors .anchor}**Evaluation Factors.** All
> evaluation factors shall be clearly identified in the solicitation. To
> the extent practicable, evaluation factors shall be limited to
> commonly used factors (e.g., a demonstrated understanding of the
> government's requirements, technical approach, management
> capabilities, personnel qualifications, manufacturing plan, facilities
> and equipment). No solicitation shall include evaluation factors that
> could provide an unfair advantage for or inherently benefit a
> prospective provider, public or private.
>
> **(b)** []{#TradeoffSourceSelectionSolicitationProvi
> .anchor}**Tradeoff Source Selection Solicitation Provisions.** For
> tradeoff source selections, the solicitation shall identify the
> specific weight given evaluation factors and sub-factors, including
> cost or price. The specific weight given to cost or price shall be at
> least equal to all other evaluation factors combined unless
> quantifiable performance measures can be used to assess value and can
> be independently evaluated. The quality of competition will be
> enhanced by using, to the extent practicable, evaluation factors and
> sub-factors susceptible to objective measurement or evaluation. To
> encourage prospective providers to submit offers and tenders that fall
> within budgetary constraints, an agency may include a not-to-exceed
> cost clause in the solicitation.

(4) []{#SolicitationProvisionsUniqueToAgencyTend .anchor}**Solicitation
    Provisions Unique to the Agency Tender.** A solicitation shall state
    that the agency tender is not required to include (a) a labor strike
    plan; (b) a small business strategy; (c) a subcontracting plan
    goal; (d) participation of small disadvantaged businesses; (e)
    licensing or other certifications; and (f) past performance
    information (unless the agency tender is based on an MEO that has
    been implemented in accordance with this circular or a previous OMB
    Circular A-76).

> **(5)** []{#SolicitationClosingDate .anchor}**Solicitation Closing
> Date.** The date for delivery of offers and tenders shall be the same.
>
> **(6)** []{#ComplianceMatrix .anchor}**Compliance Matrix.** To
> decrease the complexity of performing source selections, the CO may
> include a cross-reference compliance matrix in section L of the
> solicitation (see Figure B3. below). A compliance matrix should
> clearly identify proposal reference information as it relates to the
> PWS, contract line item numbers (CLIN), solicitation sections L and M,
> proposal volume and section, and, if appropriate, contract data
> requirements list (CDRL) references. This matrix should be modified to
> account for proposed performance standards that differ from the
> requirements in a solicitation.

+-------------------+----+-------+-----+---------+--------+----------+
| # *Example C      |    |       |     |         |        |          |
| ompliance Matrix* |    |       |     |         |        |          |
+-------------------+----+-------+-----+---------+--------+----------+
| #                 |    |       |     |         |        | # *Pr    |
|  *This matrix is  |    |       |     |         |        | ospectiv |
| included in the s |    |       |     |         |        | e Provid |
| olicitation with  |    |       |     |         |        | ers comp |
| the following sec |    |       |     |         |        | lete the |
| tions completed.* |    |       |     |         |        |  section |
|                   |    |       |     |         |        |  below.* |
+-------------------+----+-------+-----+---------+--------+----------+
| # DESCRIPTION     | #  | #     | #   | # SE    | # SEC  | # PRO    |
|                   | CL |  CDRL | PWS | CTION L | TION M | POSAL VO |
|                   | IN |       |     |         |        | LUME AND |
|                   |    |       |     |         |        |          |
|                   |    |       |     |         |        | P        |
|                   |    |       |     |         |        | ARAGRAPH |
|                   |    |       |     |         |        | \#       |
+-------------------+----+-------+-----+---------+--------+----------+
| Administrative    |    | (opti | 1.1 | 4.3     | F1,    |          |
| Support           |    | onal) |     |         | 1.5.1  |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Records           |    |       | 1.  | 4.3.1   | F1,    |          |
| Management        |    |       | 1.1 |         | SF1    |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Forms and         |    |       | 1.  | 4.3.2   | F1,    |          |
| Publications      |    |       | 1.2 |         | 1      |          |
|                   |    |       |     |         | .5.1.2 |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Operations &      |    |       | 1.2 | 4.4     | F2     |          |
| Maintenance       |    |       |     |         | 1.5.2  |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Equipment Records |    |       | 1   | 4.4.2   | F2,    |          |
|                   |    |       | .2. |         | SF2    |          |
|                   |    |       | 1.1 |         |        |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Maintenance       |    |       | 1.  | 4.4.3   | SF3    |          |
| Analysis          |    |       | 2.2 |         | 1      |          |
|                   |    |       |     |         | .5.2.3 |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Data Base         |    |       | 1   | 4.4.4   | SF4,   |          |
| Management        |    |       | .2. |         | 1      |          |
|                   |    |       | 2.1 |         | .5.2.4 |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Price             |    |       |     | 5.0     | 1.5.3  |          |
+-------------------+----+-------+-----+---------+--------+----------+
| Performance Risk  |    |       |     | 7.0     | 1.5.4  |          |
| Assessment        |    |       |     |         |        |          |
+-------------------+----+-------+-----+---------+--------+----------+
| []{#FigureB       |    |       |     |         |        |          |
| 3ComplianceMatrix |    |       |     |         |        |          |
| .anchor}**Figure  |    |       |     |         |        |          |
| B3.**             |    |       |     |         |        |          |
+-------------------+----+-------+-----+---------+--------+----------+

> **(7)** []{#PerformancePeriods .anchor}**Performance Periods.** An
> agency shall use a minimum of three full years of performance,
> excluding the phase-in period, in a standard competition. An agency
> shall not use performance periods for the agency tender that differ
> from performance periods for private sector offers and public
> reimbursable tenders. The CSO shall obtain prior written approval from
> OMB to use performance periods that exceed five years (excluding the
> phase-in period).
>
> **(8)** []{#AtchBGovernmentFurnishedProperty
> .anchor}**Government-Furnished Property (GFP).** The PWS team shall be
> responsible for determining whether the agency will make government
> property available to all prospective providers. Agency determinations
> to provide or not provide GFP shall be justified, in writing, and
> approved by the CSO. Consistent with FAR 45.102 and FAR Subpart 45.3,
> solicitations may offer the use of existing government facilities and
> equipment and may make such use mandatory. The determination to
> provide government property shall not be used to influence the outcome
> of the competition. The ATO, MEO team, and any individual assisting in
> the development of the agency tender, shall not be involved in the
> determination to provide GFP.
>
> **(9)** []{#CommonCosts .anchor}**Common Costs.** The CO shall
> identify common costs in the solicitation.
>
> **(10)** []{#PerformanceBond .anchor}**Performance Bond.** If an
> agency requires a private sector source to include a performance bond,
> the CO shall obtain prior written approval from the CSO. The CO shall
> include in the solicitation a separate CLIN for the cost of the
> performance bond. The CO shall exclude the cost of the performance
> bond from the contract price before entering the contract price on SCF
> Line 7.
>
> **(11)** []{#IncentiveFee .anchor}**Incentive Fee.** In a solicitation
> for an incentive fee contract, the CO shall require the private sector
> offeror to propose a target cost and target profit or fee. The CO
> shall include the target cost and target profit or fee on SCF Line 7.
>
> **(12)** []{#AwardFee .anchor}**Award Fee.** For solicitations with an
> award fee for all prospective providers, including the agency tender,
> the CSO shall determine if procedures are in place permitting an
> agency tender to receive such an award fee.
>
> **(13)** []{#PhaseInPlan .anchor}**Phase-in Plan.** The CO shall
> include in the solicitation a separate CLIN for a phase-in plan.
> Private sector, public reimbursable and agency sources shall propose a
> phase-in plan to replace the incumbent service provider. The CO shall
> designate the phase-in period as the first performance period (see
> Attachment C). The CLIN is limited to the phase-in costs associated
> with phase-in actions as documented in the phase-in plan. Phase-in
> plans shall include details to minimize disruption and start-up
> requirements. The phase-in plan shall consider recruiting, hiring,
> training, security limitations, and any other special considerations
> of the prospective providers to reflect a phase-in period of realistic
> length and requirements.
>
> **(14)** []{#QualityControlPlan .anchor}**Quality Control Plan.** The
> CO shall include in the solicitation a requirement for prospective
> providers to include a quality control plan in offers and tenders.
>
> **b.** []{#QualityAssuranceSurveillancePlan .anchor}**Quality
> Assurance Surveillance Plan.** The PWS team shall develop the quality
> assurance surveillance plan, which identifies the methods the
> government will use to measure the performance of the service provider
> against the requirements of the PWS.
>
> **c.** []{#CompetitionFile .anchor}**Competition File.** An agency
> shall retain the documents created for the standard competition. This
> competition file shall be included in the government contract files in
> accordance with FAR Subpart 4.8, regardless of the performance
> decision.
>
> **4.** []{#AgencyTenderPrivateSectorPublicReimb .anchor}**The Agency
> Tender, Private Sector Offers, and Public Reimbursable Tenders.**
>
> **a.** []{#AgencyTender .anchor}**Agency Tender.** The agency tender
> is the agency's response to the solicitation.
>
> **(1)** []{#DevelopingAgencyTender .anchor}**Developing the Agency
> Tender.** The ATO shall develop an agency tender that responds to the
> requirements of the solicitation, including section L (Instructions,
> Conditions, and Notices to Offerors or Respondents) and section M
> (Evaluation Factors for Award). In addition to the requirements of the
> solicitation, the agency tender shall include the following (a) an
> MEO; (b) a certified agency cost estimate developed in accordance with
> Attachment C (the agency's cost proposal); (c) the MEO's quality
> control plan; (d) the MEO's phase-in plan; and (e) copies of any
> existing, awarded MEO subcontracts (with the private sector providers'
> proprietary information redacted). The ATO shall provide the certified
> agency tender in a sealed package to the CO by the solicitation
> closing date. If the solicitation states that prospective providers
> may propose alternate performance standards that differ from the
> solicitation's performance standards, the ATO may propose alternate
> performance standards in the agency tender.
>
> **(a)** []{#AtchBMostEfficientOrganization .anchor}**Most Efficient
> Organization (MEO).** The MEO is an agency's staffing plan as
> identified in the agency tender. The MEO is not usually a
> representation of the incumbent organization, but is the product of
> management analyses that include, but are not limited to, activity
> based costing, business case analysis, consolidation, functionality
> assessment, industrial engineering, market research, productivity
> assessment, reengineering, reinvention, utilization studies, and value
> engineering. The HRA shall develop and classify new position
> descriptions based on the MEO, but the agency shall not hire employees
> to staff these positions unless the agency is the selected provider.
> An MEO may be comprised of either (1) government personnel or (2) a
> mix of government personnel and MEO subcontracts (see Attachment D).
> Agencies shall not include new MEO subcontracts that would result in
> the direct conversion of work performed by government employees. Other
> elements of the MEO include an organization chart reflecting the MEO;
> position descriptions classified by the HRA for positions projected to
> be in the MEO; a description of the organization that will execute the
> quality control plan; MEO equipment, supplies, material, and
> facilities; and specific details of MEO subcontracts.
>
> **(b)** []{#AgencyCostEstimate .anchor}**Agency Cost Estimate.** The
> ATO shall develop and certify the agency cost estimate (the agency's
> cost proposal) in accordance with Attachment C, using the COMPARE
> costing software. The ATO shall not make changes to the agency cost
> estimate except as provided in paragraph, "Changes to the Agency
> Tender," below.
>
> **(c)** **Quality Control Plan.** The ATO shall include a quality
> control plan in the agency tender, as required by the solicitation.
> The quality control plan shall, at a minimum, include (1) an MEO
> self-inspection plan; (2) MEO internal staffing (which shall be
> included in the agency cost estimate for personnel costs on SCF Line
> 1); and (3) procedures that the MEO will use to meet the quality,
> quantity, timeliness, responsiveness, customer satisfaction, and other
> requirements of the solicitation.
>
> **(d)** **Phase-in Plan.** The ATO shall include a phase-in plan in
> the agency tender, as required by the solicitation, to replace the
> incumbent service provider with the MEO, even if the agency is the
> incumbent service provider. The ATO shall include phase-in costs for
> the agency tender on SCF Lines 1-6.
>
> **(2)** []{#SubmissionAgencyTender .anchor}**Submission of the Agency
> Tender.** The ATO shall deliver the agency tender to the CO in a
> sealed package by the solicitation closing date. If the ATO does not
> anticipate submitting the agency tender to the CO by the solicitation
> closing date, the ATO shall notify the CO as soon as possible before
> the solicitation closing date. The CO, in consultation with the CSO,
> shall determine if amending the solicitation closing date is in the
> best interest of the government.
>
> **(3)** []{#ChangesAgencyTender .anchor}**Changes to the Agency
> Tender.** After the solicitation closing date, only the ATO may make
> changes to the agency tender, and such changes shall only be in
> response to the following (a) a solicitation amendment issued in
> accordance with the FAR; (b) the CO's request for final proposal
> revisions to offers and tenders in accordance with FAR 15.307; (c)
> official changes to the standard cost factors identified in Attachment
> C; (d) version upgrades to the COMPARE costing software issued by the
> Department of Defense; or (e) resolution of a contest challenging a
> performance decision as provided by this attachment. The CO shall
> retain documentation regarding any changes to the agency tender as
> part of the competition file and in a form suitable for audit.
>
> **(4)** []{#ProcurementSensitivity .anchor}**Procurement
> Sensitivity.** After resolution of a contest (see paragraph on
> "Release of the Certified SCF and Tenders" in this attachment), or the
> expiration of the time for filing a contest, an agency tender shall be
> made available to the public, upon request. If an agency tender
> includes any subcontracts, the agency shall not release proprietary
> information contained in these MEO subcontracts.
>
> **b.** []{#PrivateSectorOffers .anchor}**Private Sector Offers.**
> Private sector offers respond as required by the solicitation.
>
> **c.** []{#PublicReimbursableTenders .anchor}**Public Reimbursable
> Tenders.** When responding to another agency's solicitation, a public
> reimbursable source shall develop a public reimbursable tender that
> responds to the requirements of the solicitation, including section L
> (Instructions, Conditions, and Notices to Offerors or Respondents) and
> section M (Evaluation Factors for Award). In addition to the
> requirements of the solicitation, the public reimbursable tender shall
> include the following (1) a certified cost estimate developed in
> accordance with Attachment C (the public reimbursable source's cost
> proposal); (2) a quality control plan, (3) a phase-in plan, and (4)
> copies of any existing, awarded contracts that are included in the
> tender (with the private sector provider's proprietary information
> redacted). A public reimbursable tender may be comprised of either (1)
> government personnel or (2) a mix of government personnel and
> existing, awarded contracts. Submission of, and changes to, a public
> reimbursable tender, as well as the procurement sensitivity of the
> public reimbursable tender, shall be subject to the corresponding
> provisions of this attachment applicable to the agency tender (see
> above).
>
> **d.** []{#NoSatisfactorySource .anchor}**No Satisfactory Private
> Sector or Public Reimbursable Source.** If an agency attempts to
> perform a standard competition, but does not receive private sector
> offers or public reimbursable tenders, determines that all offers and
> public reimbursable tenders are non-responsive, or determines that
> prospective providers are not responsible, the agency shall take the
> following actions:
>
> **(1)** []{#DetermineReasons .anchor}**Determine Reasons.** The CO
> shall consult with private sector sources to identify (a) restrictive,
> vague, confusing, or misleading portions of the solicitation; (b) the
> reasons provided by sources for not submitting responses; and (c)
> possible revisions to the solicitation to enhance competition. The CO
> shall, in writing, describe the results of these consultations and
> propose a course of action to the CSO.
>
> **(2)** []{#RequiredAction .anchor}**Required Action.** The CSO shall
> evaluate the CO's written documentation and make a written
> determination to either (a) revise the solicitation or (b) implement
> the agency tender. If revising a solicitation would result in
> exceeding the established time limit for the standard competition, the
> CSO (without delegation) shall consult with the Deputy Director for
> Management, OMB. The CO's written documentation, as well as the CSO's
> decision to either revise the solicitation or implement the agency
> tender, shall be retained as part of the competition file.
>
> **(a)** []{#ReviseSolicitation .anchor}**Revise the Solicitation.**
> Before revising or reissuing the solicitation, the CO shall return the
> sealed agency tender to the ATO. The CO shall then revise and reissue
> the solicitation.
>
> **(b)** []{#ImplementAgencyTender .anchor}**Implement the Agency
> Tender.** If the CSO decides to implement the agency tender, the CO
> shall proceed to evaluate the agency tender as required by this
> attachment and the solicitation. The agency shall complete the SCF,
> leaving Line 7 blank, omit the costs on lines 8-12 and annotate
> "agency" on Line 18. The SSA shall state, in the certification on the
> SCF, that the CSO implemented the agency tender because (1) the agency
> received no offers or tenders in response to the solicitation; (2) no
> offers or tenders received were responsive; or (3) no prospective
> providers were responsible. The SSA and CO shall sign the SCF to
> certify the performance decision and retain the SCF and agency tender
> with the competition file. The agency shall make a public announcement
> of the performance decision (at the local level and via
> *FedBizOpps.gov*). The CO shall make the SCF (including the
> documentation of no satisfactory private sector source) available to
> the public, upon request. The CO shall notify the ATO of the
> performance decision and the HRA shall notify directly affected
> employees (and their representatives).
>
> **5.** []{#SourceSelectionProcessAndPerformDecision .anchor}**The
> Source Selection Process and Performance Decision.** An agency shall
> select one of the procedures described below to conduct a standard
> competition and shall not employ any other procedure in conducting the
> standard competition.
>
> **a.** []{#SealedBidAcquisition .anchor}**Sealed Bid Acquisition.** An
> agency shall conduct a sealed bid acquisition in accordance with FAR
> Subparts 14.1 through 14.4 and this attachment. On the solicitation
> closing date, the CO shall open the agency tender, private sector
> bids, and public reimbursable tenders. The CO shall enter the price of
> the apparent lowest priced private sector bid or public reimbursable
> tender on SCF Line 7, to complete the SCF calculations. The CO shall
> then evaluate private sector bids for responsiveness and
> responsibility in accordance with the FAR and determine if SCF Lines
> 8-18 have been prepared in accordance with Attachment C. The CO shall
> certify the SCF in accordance with Attachment C. The CO makes the
> performance decision by certifying the SCF.
>
> **b.** []{#NegotiatedAcquisition .anchor}**Negotiated Acquisition.**
>
> **(1)** []{#LowestPriceTechnicallyAcceptableSour .anchor}**Lowest
> Price Technically Acceptable Source Selection.** An agency shall
> conduct a lowest price technically acceptable source selection in
> accordance with FAR 15.101-2 and this attachment. During the source
> selection process, the CO shall open and evaluate all offers and
> tenders (including the agency tender) to determine technical
> acceptability. The performance decision shall be based on the lowest
> cost of all offers and tenders determined to be technically
> acceptable. The CO shall conduct price analysis and cost realism as
> required by this attachment. The CO may conduct exchanges, in
> accordance with FAR Subpart 15.306 and this attachment, to determine
> the technical acceptability of each offer and tender. The CO shall
> enter the lowest contract price or public reimbursable cost on SCF
> Line 7 to complete the SCF calculations. The CO shall sign the SCF,
> and the SSA shall certify the SCF, in accordance with Attachment C.
> The SSA makes the performance decision by certifying the SCF.
>
> **(2)** []{#PhasedEvaluationSourceSelectionProcess .anchor}**Phased
> Evaluation Source Selection Process.** An agency shall conduct a
> phased evaluation source selection in accordance with FAR Part 15 and
> this attachment. In the phased evaluation process, an agency shall
> evaluate technical capability in phase one and cost in phase two. The
> performance decision shall be based on the lowest cost of all
> technically acceptable offers and tenders from all offerors, public
> reimbursable sources, and the ATO. The solicitation shall require the
> submission of complete offers and tenders, including separate
> technical proposals and cost proposals/estimates, by the solicitation
> closing date. The solicitation shall permit submission of alternate
> performance standards that differ from the solicitation's performance
> standards. To differentiate between the alternate standards and the
> solicitation's standards, the solicitation shall require that offers
> and tenders include a compliance matrix specifying (a) the alternate
> performance standards; (b) an explanation of how the alternate
> standards differ from the solicitation standards; (c) the cost of
> meeting each alternate standard; (d) the cost difference between the
> alternate and solicitation standard; (e) a cost-benefit analysis
> explaining the rationale for each alternate standard; and (f) proposed
> language to include alternate performance standards in an amended
> solicitation. If the agency receives no alternate performance
> standards, or does not accept any of the alternate standards, then the
> SSA shall determine a performance decision based on the solicitation's
> performance standards.
>
> **(a)** []{#PhaseOne .anchor}**Phase One.** In phase one, the CO shall
> open and evaluate the technical proposals (submitted by private sector
> offerors, public reimbursable sources, and the ATO). The CO shall not
> open or evaluate agency or public reimbursable cost estimates or
> private sector price proposals during phase one. The CO may conduct
> exchanges, in accordance with FAR Subpart 15.306 and this attachment,
> to determine the technical acceptability of each offer and tender. If
> an agency receives offers and tenders that include alternate
> performance standards, the CO shall (1) evaluate each alternate
> performance; (2) consider the discrete cost or price difference
> associated with the alternate standard; (3) determine, in consultation
> with the requiring activity, whether an alternate standard is
> necessary and, if so, within the agency's budget limitations; and (4)
> document, in writing, the evaluation of each alternate performance
> standard. If the SSA accepts an alternate performance standard, the CO
> shall issue an amendment to the solicitation to (1) identify the
> specific change to the solicitation's performance standard, without
> conveying proprietary information about technical approaches or
> solutions to meet the new performance standard; and (2) request the
> resubmission of offers and tenders in response to the amended
> solicitation. Upon receiving revisions to offers and tenders, the CO
> may conduct exchanges, in accordance with FAR Subpart 15.306 and this
> attachment, to determine the technical acceptability of each offer and
> tender.
>
> **(b)** []{#PhaseTwo .anchor}**Phase Two.** In phase two, the CO shall
> perform price analysis and cost realism of private sector cost
> proposals, public reimbursable cost estimates, and the agency cost
> estimate, in accordance with this attachment, on all offers and
> tenders determined to be technically acceptable at the conclusion of
> phase one. The CO then shall enter the lowest contract price or public
> reimbursable cost on SCF Line 7 to complete the SCF calculations. The
> SSA shall certify the SCF and the CO shall sign the SCF in accordance
> with Attachment C. The SSA shall make the performance decision by
> certifying the SCF, which is the performance decision document.
>
> **(3)** []{#TradeoffSourceSelectionProcess .anchor}**Tradeoff Source
> Selection Process.** A tradeoff source selection may be appropriate in
> a standard competition when an agency wishes to consider award to
> other than the lowest priced source. An agency may use the tradeoff
> processes under FAR Subpart 15.101-1 in a standard competition of (a)
> information technology activities (as defined in Attachment D); (b)
> commercial activities performed by a private sector source; (c) new
> requirements; or (d) segregable expansions. An agency also may use a
> tradeoff source selection process for a specific standard competition
> if prior to the public announcement of the competition, the CSO
> (without delegation) (a) approves, in writing, the use of the tradeoff
> source selection process; and (b) notifies OMB of the approval by
> forwarding a copy of the written approval. An agency shall not use a
> tradeoff source selection process for activities currently performed
> by government personnel except as provided in this paragraph. When an
> agency uses a tradeoff source selection process in a standard
> competition, an agency shall comply with FAR Part 15 unless otherwise
> noted in this attachment. Under a tradeoff source selection process,
> an agency may select an offer or tender that is not the lowest priced
> offer or tender only if the decision is within the agency's budgetary
> limitation. An agency shall not use a tradeoff source selection to
> justify increases in the agency's budgetary authorization. Prospective
> providers may propose alternate performance standards that differ from
> the solicitation's performance standards. The CO shall conduct price
> analysis and cost realism as required by this attachment. The CO may
> conduct exchanges, in accordance with FAR Subpart 15.306 and this
> attachment. The CO's rationale for tradeoffs shall be (a) documented,
> in writing; (b) attached to the SCF; and (c) retained with the
> competition file for the standard competition. The CO shall enter the
> contract price and public reimbursable cost estimate, for each offer
> and tender determined to be technically acceptable, on SCF Line 7. The
> CO then shall sign the SCF. The SSA may decide to award to the
> low-cost provider, or other than the low-cost provider, as follows:
>
> **(a)** []{#LowCostPerformanceDecision .anchor}**Low Cost Performance
> Decision.** For a decision to award to the low-cost provider, the SSA
> shall certify the SCF in accordance with Attachment C. The SSA makes
> the performance decision by certifying the SCF, which is the
> performance decision document.
>
> **(b)** []{#OtherThanLowCostPerformanceDecision .anchor}**Other Than
> Low Cost Performance Decision.** For a decision to award to other than
> the low-cost provider, the SSA shall certify the SCF, in accordance
> with Attachment C, and shall document the following on the SCF (1) a
> summary of the source selection decision document; (2) a narrative
> explanation of the tradeoffs performed; and (3) a rationale for the
> decision to award to other than the low-cost provider. The SSA makes
> the performance decision by certifying the SCF. The SCF, combined with
> the source selection decision document, is the performance decision
> document.
>
> **c.** []{#SpecialConsiderations .anchor}**Special Considerations.**
>
> **(1)** []{#EvaluationOfPrivateSectorOffersPubli .anchor}**Evaluation
> of Private Sector Offers, Public Reimbursable Tenders, and Agency
> Tender.** The CO shall not evaluate the private sector offers
> separately from the agency tender. The CO, SSA, and SSEB shall not (a)
> convey, require, make, direct, or request adjustments to a tender or
> offer that would identify any proprietary or procurement sensitive
> information from another offer or tender; or (b) require, direct, or
> make specific changes to an offer or tender, including the approach
> and staffing requirements (e.g., adding a specific number of employee
> positions to the MEO). The CO shall ensure that oral presentations do
> not provide an unfair advantage for or inherently benefit a
> prospective provider, public or private.
>
> **(2)** []{#ExchangesWithPrivateSectorPublicReimb .anchor}**Exchanges
> with Private Sector, Public Reimbursable, and Agency Sources.** If the
> CO conducts exchanges with private sector offerors, public
> reimbursable sources, and the ATO, during the course of the standard
> competition, those exchanges shall be in accordance with FAR 15.306,
> with the following exceptions. For an agency tender, the CO shall
> correspond with the ATO, in writing, and shall maintain records of all
> such correspondence as part of the competition file. The CO and ATO
> shall include clear, sufficient, and unambiguous information in the
> correspondence to adequately convey concerns, responses, or
> information regarding the agency tender.
>
> **(3)** []{#DeficienciesInOfferOrTender .anchor}**Deficiencies in an
> Offer or Tender.** If the CO perceives that a private sector offer,
> public reimbursable tender, or agency tender is materially deficient,
> the CO shall ensure that the ATO, private sector offeror, or the
> public reimbursable tender official receives a deficiency notice. The
> CO shall afford the ATO, the private sector offeror, or the public
> reimbursable tender official a specific number of days to address the
> material deficiency and, if necessary, to revise and recertify the
> tender or offer. If the ATO is unable to correct the material
> deficiency, the CSO shall determine if a commitment of additional
> resources will enable the ATO to correct the material deficiency
> within the specified number of days. If the CSO determines that the
> ATO cannot correct the material deficiency with a reasonable
> commitment of additional resources, the CSO may advise the SSA to
> exclude the agency tender from the standard competition. If the CO
> determines that a private sector offeror or public reimbursable tender
> official has not corrected a material deficiency, the SSA may exclude
> the private sector offer or public reimbursable tender from the
> standard competition. If the agency tender is excluded from the
> standard competition, an agency shall calculate the SCF as required by
> Attachment C and the SSA shall make the performance decision based
> upon the source selection decision document and shall document the
> reason for elimination of the agency tender on the SCF.
>
> **(4)** []{#PriceAnalysisAndCostRealism .anchor}**Price Analysis and
> Cost Realism of Private Sector Cost Proposals, Public Reimbursable
> Cost Estimates and Agency Cost Estimates.**
>
> **(a)** []{#GeneralPriceAnalysisAndCostRealism .anchor}**General.**
> Regardless of the contract type stated in the solicitation, the CO
> shall perform price analysis and cost realism (as defined in FAR Part
> 2) on all private sector cost proposals, public reimbursable cost
> estimates (SCF Lines 1a-6a), and the agency cost estimate (SCF Lines
> 1-6). Cost analysis (in accordance with FAR Part 15) is not required
> for a standard competition but may be performed at the discretion of
> the SSA.
>
> **(b)** []{#AgencyAndPuPriceAnalysisAndCostRealism .anchor}**Agency
> and Public Reimbursable Cost Estimates.** The CO shall ensure that the
> agency and public reimbursable cost estimates (1) are calculated in
> accordance with Attachment C; (2) are based on the standard cost
> factors in effect on the performance decision date; and (3) use the
> version of the COMPARE costing software that is in effect on the
> performance decision date.
>
> **(c)** []{#ConversionDifferential .anchor}**Conversion
> Differential.** All standard competitions shall include the conversion
> differential. The CO shall ensure that the conversion differential is
> calculated in accordance with Attachment C and reflected on SCF Line
> 14. The conversion differential is a cost that is the lesser of 10
> percent of the MEO's personnel-related costs (reflected on SCF Line 1)
> or \$10 million over all the performance periods stated in the
> solicitation. This conversion differential is added to the cost of
> performance by a [non-incumbent]{.underline} source. If the incumbent
> provider is a private sector or public reimbursable source, the
> conversion differential is added to the cost of agency performance. If
> the agency is the incumbent provider, the conversion differential is
> added to the cost of private sector or public reimbursable
> performance. The conversion differential precludes conversions based
> on marginal estimated savings, and captures non-quantifiable costs
> related to a conversion, such as disruption and decreased
> productivity.
>
> **(d)** []{#SCFOverview .anchor}**SCF Overview.** As part of the
> requirement to conduct price analysis and cost realism, the CO shall
> ensure that the SCF has been prepared in accordance with Attachment C
> and that the required signatures and certifications are on the SCF.
> Figure B4. provides an overview of the detailed guidance for
> developing the agency and public reimbursable cost estimates in
> Attachment C.

+-----------------------------------------------------------------------+
| ## Summary of the Standard Competition Form (SCF)                     |
+-----------------------------------------------------------------------+
| ## cost of agency performance                                         |
+-----------------------------------------------------------------------+
| SCF Line 1: **Personnel Costs.** Agency labor costs for direct and    |
| indirect labor necessary to meet the requirements in the              |
| solicitation.                                                         |
+-----------------------------------------------------------------------+
| SCF Line 2: **Material and Supply Costs.** Agency cost of materials   |
| and supplies such as office supplies, including handling and          |
| inflation.                                                            |
+-----------------------------------------------------------------------+
| SCF Line 3: **Other Specifically Attributable Costs.** Other agency   |
| costs such as the cost of capital, depreciation capital assets, rent, |
| utilities, insurance, and MEO subcontracts.                           |
+-----------------------------------------------------------------------+
| SCF Line 4: **Overhead Costs.** Twelve percent of agency personnel    |
| costs reflected on SCF Line 1.                                        |
+-----------------------------------------------------------------------+
| SCF Line 5: **Additional Costs.** Agency costs not otherwise          |
| accounted for on SCF Lines 1-4, such as phase-in costs and one-time   |
| conversion costs for an expansion, new requirement, or conversion     |
| from a private sector or public reimbursable provider to agency       |
| performance.                                                          |
+-----------------------------------------------------------------------+
| SCF Line 6: **Total Cost of Agency Performance**. The sum of SCF      |
| Lines 1-5.                                                            |
+-----------------------------------------------------------------------+
| ## cost of PUBLIC REIMBURSABLE performance                            |
+-----------------------------------------------------------------------+
| ## The guidance for a public reimbursable source to complete S        |
| CF Lines 1a-6a is the same as the guidance to complete SCF Lines 1-6. |
+-----------------------------------------------------------------------+
| ## ADJUSTED cost of PRIVATE SECTOR OR PUBLIC REIMBURSABLE performance |
+-----------------------------------------------------------------------+
| SCF Line 7: **Contract Price or Public Reimbursable Cost Estimate.**  |
| The contract price (based on the type of acquisition, source          |
| selection process, and contract type required by the solicitation),   |
| or the public reimbursable cost on SCF Line 6a.                       |
+-----------------------------------------------------------------------+
| SCF Line 8: **Contact Administration Costs.** Costs for administering |
| the contract.                                                         |
+-----------------------------------------------------------------------+
| SCF Line 9: **Additional Costs.** Costs incurred by the agency that   |
| are added to the private sector or public reimbursable provider's     |
| price/cost.                                                           |
+-----------------------------------------------------------------------+
| SCF Line 10: **One-time Conversion Costs**. Costs based on 5% of Line |
| 1, incurred by the agency as a result of awarding a contract.         |
+-----------------------------------------------------------------------+
| SCF Line 11: **Gain on Assets.** Revenue generated from the           |
| sale/transfer of agency assets when converting from agency            |
| performance.                                                          |
+-----------------------------------------------------------------------+
| SCF Line 12: **Federal Income Tax Adjustment.** Revenue for the       |
| government when a private sector provider pays federal income tax.    |
+-----------------------------------------------------------------------+
| SCF Line 13: **Total Adjusted Cost of Private Sector or Public        |
| Reimbursable Performance.** The sum of Lines 7-12.                    |
+-----------------------------------------------------------------------+
| ## COST OF PERFORMANCE DECISION CALCULATIONS                          |
+-----------------------------------------------------------------------+
| SCF Line 14: **Conversion Differential.** The lesser of 10% of agency |
| labor costs or \$10 M is added to the non-incumbent provider.         |
+-----------------------------------------------------------------------+
| SCF Line 15: **Adjusted Total Cost of Agency Performance.** If a      |
| private sector or public reimbursable source is the incumbent         |
| provider, the conversion differential is added to the cost of agency  |
| performance (SCF Line 6) and the sum is the "adjusted total cost of   |
| agency performance" on SCF Line 15.                                   |
+-----------------------------------------------------------------------+
| SCF Line 16: Adjusted Total Cost of Private Sector or Public          |
| Reimbursable Performance. If the agency is the incumbent provider,    |
| the conversion differential is added to SCF Line 13 and the sum is    |
| the "adjusted total cost of private sector or public reimbursable     |
| performance" on SCF Line 16.                                          |
+-----------------------------------------------------------------------+
| > SCF Line 17: **Cost Difference.** SCF Line 15 is subtracted from    |
| > SCF Line 16 to reflect the "cost difference" on SCF Line 17. A      |
| > positive number indicates performance decision for agency           |
| > performance and a negative number indicates a performance decision  |
| > for a private sector or public reimbursable provider.               |
+-----------------------------------------------------------------------+
| SCF Line 18: **Low-Cost Provider**. The low-cost provider based on    |
| the calculations on the SCF.                                          |
+-----------------------------------------------------------------------+
| []{#FigureB4SummaryOfSCF .anchor}**Figure B4.**                       |
+-----------------------------------------------------------------------+

> **6.** []{#PerformanceDecisionInStandardCompetition
> .anchor}**Performance Decision in a Standard Competition.**
>
> **a.** []{#Certification .anchor}**Certification.** To certify a
> performance decision in a standard competition, the SSA and CO shall
> sign the SCF.
>
> **b.** []{#EndDateStandardCompetition .anchor}**End Date.** The end
> date of a standard competition shall be the date that all SCF
> certifications are complete, signifying a performance decision. An
> agency shall not make any changes (including corrections) to the SCF,
> agency tender, or public reimbursable tender after this date, except
> in response to a contest under paragraph F of this Attachment.
>
> **c.** []{#PublicAnnouncementPerformanceDecisionSTD .anchor}**Public
> Announcement of the Performance Decision.** An agency shall make a
> formal public announcement (at the local level and via
> *FedBizOpps.gov*) of the performance decision. In the announcement of
> a performance decision for a sealed bid acquisition, the agency shall
> include the information made public at bid opening, under FAR Subpart
> 14.4. In the announcement of a performance decision for a negotiated
> acquisition, the agency shall include the information regarding offers
> and tenders identified in FAR 15.503(b). If an agency tender includes
> any MEO subcontracts, the agency shall not release proprietary
> information contained in these subcontracts.
>
> **d.** []{#Debriefing .anchor}**Debriefing.** The SSA shall ensure
> that the CO offers a debriefing to all private sector offerors, public
> reimbursable sources, the ATO, and directly affected government
> personnel (and their representatives), in accordance with FAR 15.503.
>
> **e.** []{#ReleaseOfTheCertifiedSCFandTenders .anchor}**Release of the
> Certified SCF and Tenders.** An agency shall release the certified
> SCF, agency tender, and public reimbursable tenders, only as provided
> in this paragraph. Until resolution of any contest under paragraph F.
> of this Attachment, or expiration of the time for filing a contest,
> only legal agents for directly interested parties shall have access to
> the certified SCF, agency tender, and public reimbursable tenders. The
> agency shall require, as a condition of access, that a legal agent of
> a directly interested party sign a non-disclosure agreement. The
> agreement shall provide that a signatory may share the information
> covered by the agreement only with other signatories, and only for
> purposes of challenging the performance decision. Upon resolution of a
> contest challenging a performance decision (i.e., when the agency
> renders a written decision in compliance with FAR Subpart 33.103, as
> required by paragraph F.1.b. of this Attachment), or expiration of the
> time for filing such a contest, the certified SCF, agency tender, and
> public reimbursable tenders, shall be available to the public, upon
> request. Proprietary information of private sector providers of
> sub-contracts included in agency or public reimbursable tenders shall
> not be released.
>
> **f.** []{#ImplementingPerformanceDecisionStandard
> .anchor}**Implementing a Performance Decision.** An agency shall
> implement the performance decision resulting from a standard
> competition as follows:
>
> **(1)** []{#PrivateSectorProviderStandard .anchor}**Private Sector
> Provider.**
>
> **(a)** []{#AwardingTheContract .anchor}**Awarding the Contract.** For
> a performance decision favoring a private sector source, the CO shall
> award a contract in accordance with the FAR.
>
> **(b)** []{#RightOfFirstRefusal .anchor}**Right of First Refusal.**
> When the agency is the incumbent service provider, the CO shall comply
> with FAR 7.305(c) regarding the right of first refusal. The HRA shall
> provide the CO with a list of adversely affected employees as soon as
> possible after the performance decision is made.
>
> **(2)** []{#PublicReimbursableProviderStandard .anchor}**Public
> Reimbursable Provider.** For a performance decision favoring a public
> reimbursable source, the CO shall develop a fee-for-service agreement
> with the public reimbursable source. The CO shall incorporate
> appropriate portions of the solicitation and public reimbursable
> tender into the fee-for-service agreement and distribute the agreement
> to the appropriate individuals.
>
> **(3)** []{#AgencyProviderStandard .anchor}**Agency Provider.** For a
> performance decision favoring the agency, the CO shall establish an
> MEO letter of obligation with an official responsible for performance
> of the MEO. The CO shall incorporate appropriate portions of the
> solicitation and the agency tender into the MEO letter of obligation
> and distribute the letter to appropriate individuals including the
> ATO.

**E.** []{#POSTCOMPETITIONACCOUNTABILITYSTREam .anchor}**[Post
Competition Accountability for Streamlined and Standard
Competitions]{.underline}.**

> **1.** []{#BestPracticesAndLessonsLearned .anchor}**Best Practices and
> Lessons Learned.** Agencies shall post best practices and lessons
> learned resulting from a streamlined or standard competition process
> on SHARE A-76! at <http://emissary.acq.osd.mil/inst/share.nsf/>. An
> agency shall maintain the accuracy and currency of their agency's
> information, including links, on SHARE A-76!
>
> **2.** **Execution Tracking of Streamlined and Standard
> Competitions.** Agencies shall maintain a database to track the
> execution of agency streamlined and standard competitions. Agencies
> shall maintain a database that (1) assigns a unique tracking number to
> each streamlined and standard competition, (2) includes data fields as
> defined on the OMB web site at [www.omb.gov](http://www.omb.gov/), (3)
> tracks each streamlined and standard competition as events occur
> (real-time) from the date of public announcement through either
> completion of the last performance period or cancellation of the
> competition, and (4) retains historical records of streamlined and
> standard competitions after the last performance period has been
> completed.
>
> **3.** []{#CompetitiveSourcingQuarterlyReport .anchor}**Competitive
> Sourcing Quarterly Report.** An agency shall submit a Competitive
> Sourcing Quarterly Report to OMB, by the end of each fiscal quarter
> (December, March, June, September), that includes the following (1)
> in-progress streamlined and standard competitions (i.e., competitions
> with start dates and pending performance decisions); and (2) completed
> streamlined and standard competitions (i.e., competitions with
> performance decisions). The required format for these reports can be
> found on the OMB web site at [www.omb.gov](http://www.omb.gov/).
>
> **4.** []{#MonitoringPerformance .anchor}**Monitoring Performance.**
> Regardless of the selected service provider, after implementing a
> performance decision, an agency shall (1) monitor performance for all
> performance periods stated in the solicitation; (2) implement the
> quality assurance surveillance plan; (3) retain the solicitation and
> any other documentation from the streamlined or standard competition
> as part of the competition file; (4) maintain the currency of the
> contract file, consistent with FAR Subpart 4.8, for contracts, MEO
> letters of obligation, and fee-for-service agreements; (5) record the
> actual cost of performance by performance period; and (6) monitor,
> collect, and report performance information, consistent with FAR
> Subpart 42.15, for purposes of past performance evaluation in a
> follow-on streamlined or standard competition. To record the actual
> cost of performance for a specific performance period, the agency
> shall adjust actual costs for scope, inflation, and wage rate
> adjustments made during a specific performance period. The agency
> shall compare the actual costs to the costs recorded on SCF Lines 6
> and 7 when the performance decision was made.
>
> **5.** []{#OptionYearsPerformanceFollowOn .anchor}**Option Years of
> Performance and Follow-on Competition.**
>
> **a.** []{#OptionYearsOfPerformance .anchor}**Option Years of
> Performance.** The CO shall make option year exercise determinations
> for agency, public reimbursable, and private sector performance
> decisions in accordance with FAR 17.207. Consistent with the FAR, the
> CO shall not approve performance periods that exceed the total number
> of years specified in the solicitation used in the standard
> competition**.**
>
> **b.** []{#FollowOnCompetition .anchor}**Follow-on Competition.** For
> agency or public reimbursable performance decisions, an agency shall
> complete another streamlined or standard competition of the activity
> by the end of the last performance period on the SCF or SLCF unless a
> specific exemption is granted by the CSO (without delegation) before
> the end of the last performance period. The CSO may extend the
> performance period for a high performing organization if the CSO (a)
> determines that continued cost savings justifies the extension; (b)
> documents these cost savings through the use of a COMPARE generated
> SCF or SLCF; (c) limits the extension to no more than 3 years after
> the last performance period; and (d) makes a formal announcement of
> the extension via *FedBizOpps.gov*. For private sector performance
> decisions, the CO shall comply with the FAR for follow-on competition.
>
> **6.** []{#Terminations .anchor}**Terminations.**
>
> **a.** []{#TerminationsBasedOnFailureToPerform .anchor}**Terminations
> Based on Failure to Perform.**
>
> **(1)** []{#Notification .anchor}**Notification.** Consistent with FAR
> Part 49, the CO shall notify a service provider (i.e., private sector
> contractor, public reimbursable provider, or MEO) of poor performance
> through cure notices and show cause notices. The CO shall inform the
> head of the requiring activity of such notices.
>
> **(2)** []{#Termination .anchor}**Termination.** If the CO determines
> that a service provider (i.e., private sector contractor, public
> reimbursable provider, or MEO) has failed to perform to the extent
> that a termination for default is justified, the CO shall issue a
> notice of termination, consistent with FAR Part 49. Upon terminating
> an MEO letter of obligation, an agency shall change the inventory
> coding to reflect that the activity is no longer performed by an MEO
> and shall perform either a streamlined or standard competition.
>
> **(3)** []{#TemporaryRemedies .anchor}**Temporary Remedies.** If the
> CO terminates a contract, fee-for-service agreement, or MEO letter of
> obligation for the service provider's failure to perform, an agency
> may use interim contracts, public reimbursable sources, or government
> personnel on an emergency basis. An agency shall not allow these
> temporary remedies to be used for longer than one year from the date
> of termination.
>
> **b.** []{#TerminationsBasedOnReasonsOtherThan .anchor}**Terminations
> Based on Reasons Other than Failure to Perform.** If an agency
> determines that performance by a service provider (i.e., private
> sector contractor, public reimbursable, or MEO) is to be terminated
> for reasons other than failure to perform, the CSO (without
> delegation) shall approve such terminations, in writing, and provide a
> copy to OMB before the termination. Examples of these terminations
> include, but are not limited to, elimination of an agency requirement
> through divestiture, privatization, reorganization, restructuring,
> national defense, or homeland security.

**F.** []{#CONTESTS .anchor}**[ContestS]{.underline}.**

> **1.** []{#CONTESTSStandardCompetitions .anchor}**Standard
> Competitions.** A directly interested party (see Attachment D) may
> contest any of the following actions taken in connection with a
> standard competition: (1) a solicitation; (2) the cancellation of a
> solicitation; (3) a determination to exclude a tender or offer from a
> standard competition; (4) a performance decision, including, but not
> limited to, compliance with the costing provisions of this circular
> and other elements in an agency\'s evaluation of offers and tenders;
> or (5) a termination or cancellation of a contract or letter of
> obligation if the challenge contains an allegation that the
> termination or cancellation is based in whole or in part on
> improprieties concerning the performance decision. The pursuit of a
> contest by a directly interested party and the resolution of such
> contest by the agency shall be governed by the procedures of FAR
> Subpart 33.103.
>
> **2.** []{#CONTESTSStreamlinedCompetitions .anchor}**Streamlined
> Competitions.** No party may contest any aspect of a streamlined
> competition.

####### CALCULATING PUBLIC-PRIVATE COMPETITION COSTS

**A.** []{#AtchCOVERVIEW .anchor}**[OVERVIEW]{.underline}.**

> **1.** []{#PublicPrivateCompetitionCosts .anchor}**Public-Private
> Competition Costs.** To reflect the full cost of performance by the
> government, agencies and public reimbursable sources shall calculate
> cost estimates in accordance with this attachment for public-private
> competitions. An agency shall not deviate from this attachment except
> as provided by paragraph 5.c. of this circular. A private sector
> source shall propose a price or estimated cost in accordance with
> Attachment B and the FAR.
>
> **2.** **COMPARE.** Agencies shall use COMPARE (the costing software
> that incorporates the costing procedures of this circular) in
> conjunction with this Attachment to develop cost estimates and
> generate the SCF or SLCF. The COMPARE version in effect as of the
> performance decision date shall be used when determining a performance
> decision.
>
> **a.** []{#COMPAREMaintenance .anchor}**COMPARE Maintenance**. The
> Department of Defense shall maintain the currency and accuracy of
> COMPARE, COMPARE User's Guide, and COMPARE tables (e.g., inflation
> cost factors, tax rates, useful life and disposal values, cost of
> capital cost factors, OPM wage rates) with OMB oversight. The
> Department of Defense shall maintain a COMPARE version control log for
> all changes to the costing software and shall coordinate COMPARE
> version changes with OMB prior to release. An agency shall submit
> requests for COMPARE changes to the Department of Defense and OMB. The
> Department of Defense shall evaluate the requested COMPARE changes and
> review the impact of the change with OMB. OMB shall approve version
> changes to COMPARE.
>
> **b.** []{#COMPARECalculations .anchor}**COMPARE Calculations**. Many
> of the calculations required by this attachment are embedded directly
> into the COMPARE software code. These COMPARE calculations are
> dependent upon accurate cost data that agencies shall determine and
> manually enter into COMPARE. For example, when cost data for the
> various costing requirements are manually entered, COMPARE will then
> automatically calculate costs such as basic pay, fringe benefits,
> insurance, inflation, FTEs, cost of capital, depreciation, minor item
> replacement, overhead, severance pay, and federal taxes.
>
> **(1)** []{#COMPAREStandardCompetitions .anchor}**Standard
> Competitions**. Agencies shall calculate and manually enter the
> required cost data for SCF Lines 1, 2, 3, 5, 9, and 11. COMPARE then
> automatically computes SCF Lines 4, 6, 8, and 10. After the CO enters
> the required data for SCF Lines 7 and 12, COMPARE automatically
> computes SCF Lines 12, 13, 14, 15, 16, 17 and 18 and no further manual
> calculations are required for the SCF. After all costs have been
> entered into COMPARE the SCF is automatically generated for signature
> and certification of the performance decision. Public reimbursable
> cost estimates shall be calculated and manually entered based on the
> required cost data for SCF Lines 1a, 2a, 3a, and 5a. COMPARE then
> automatically computes SCF Lines 4a and 6a.
>
> **(2)** []{#COMPAREStreamlinedCompetitions .anchor}**Streamlined
> Competitions**. Agencies shall calculate and manually enter the
> required data for SLCF Lines 1, 2, 3, 7 and 12. COMPARE then
> automatically computes SLCF Lines 4, 6, 8, 12, 13, 17 and 18 and no
> further manual calculations are required for the SLCF. After all costs
> have been entered into COMPARE the SLCF is automatically generated for
> signature and certification of the performance decision. For public
> reimbursable cost estimates, agencies shall calculate and manually
> enter the required cost data for SLCF Lines 1a, 2a, and 3a. COMPARE
> then automatically calculates SLCF Lines 4a and 6a.
>
> **3.** []{#CompetitionsBetweenPrivateSectorAndPubl
> .anchor}**Competitions Between Private Sector and Public Reimbursable
> Sources.** A public reimbursable source may only respond to a
> solicitation by submitting a public reimbursable tender that is
> developed in accordance with Attachment B. The public reimbursable
> tender includes a cost estimate that shall be calculated in accordance
> with this attachment and entered on SCF Lines 1a-6a. The CO shall
> determine the cost adjustments to be included on SCF Line 8 (Contract
> Administration) and SCF Line 12 (Federal Income Tax Adjustment). The
> CO shall ensure no costs are entered on SCF Lines 9, 10, 11, and 14.
>
> **4.** []{#ExcludedCosts .anchor}**Excluded Costs.** Agency and public
> reimbursable sources shall not include the following in cost estimates
> (a) retained rate of basic pay for civilian employees (5 C.F.R. Part
> 536); (b) costs for conducting the streamlined or standard
> competitions; and (c) agency separation incentive programs such as
> Voluntary Early Retirement Authority (VERA) and Voluntary Separation
> Incentive Pay (VSIP), which are programs used to preclude involuntary
> civilian separations resulting from reductions in force (RIF).
>
> **5.** **Conversion Differential.** In a standard competition, an
> agency shall determine the conversion differential, in accordance with
> paragraph D of this attachment. The conversion differential is added
> to a non-incumbent's cost of performance and is the lesser of 10
> percent of the MEO's personnel-related costs (SCF Line 1) or \$10
> million over all performance periods stated in the solicitation. (See
> Attachment B, Conversion Differential.) Agencies shall not calculate
> the conversion differential in a cost estimate for a streamlined
> competition.
>
> **6.** []{#AtchCPerformancePeriods .anchor}**Performance Periods.** An
> agency or a public reimbursable source shall reflect the same
> performance periods required by the solicitation on the SCF.
>
> **7.** []{#RoundingRule .anchor}**Rounding Rule.** An agency or a
> public reimbursable source shall round all line entries on the
> SCF/SLCF to the nearest dollar.
>
> **8.** []{#PhaseInCosts .anchor}**Phase-in Costs.** An agency or
> public reimbursable source shall reflect phase-in costs that are
> associated with the specific phase-in actions and are documented in
> the phase-in plan. Agency and public reimbursable sources shall
> calculate the phase-in costs associated with the change from the
> incumbent provider on SCF Lines 1-5 or SCF Lines 1a-5a, as
> appropriate.
>
> **9.** []{#Inflation .anchor}**Inflation.** OMB issues a transmittal
> memorandum in the Federal Register to identify changes to the federal
> pay raise assumptions and inflation factors (based on the President's
> annual budget). These annual pay raise assumptions and inflation
> factors shall be used in an agency or a public reimbursable cost
> estimate for pay and non-pay categories of cost as follows: (a)
> through the end of the **last** performance period for pay and non-pay
> categories of cost that are not subject to an economic price
> adjustment, and (b) through the end of the **first** performance
> period for pay and non-pay categories of cost that are subject to an
> economic price adjustment. COMPARE automatically computes inflation on
> a daily basis, which is calculated using 365.25 days per year to
> account for leap years.
>
> **10.** []{#StandardCostFactors .anchor}**Standard Cost Factors.**
> Agencies and public reimbursable sources shall use the standard A-76
> costing factors identified at Figure C1. to calculate cost estimates.
> Figure C1. identifies the types of and sources for standard costing
> factors as well as specific costing factors in effect at the time of
> publication of this circular. Updates to these cost factors will be
> posted on the OMB web site at [www.OMB.gov](http://www.OMB.gov/). When
> a standard cost factor changes, the Department of Defense shall update
> the tables in COMPARE and post the table update on SHARE A-76! Prior
> to posting a table update, the Department of Defense shall test the
> change to the software, and review the change with OMB. An agency
> shall not deviate from the cost factors required by this attachment
> except as provided by paragraph 5.c. of this circular, in which case
> the agency shall notify the Department of Defense of the change, fund
> any resulting modifications to COMPARE to accommodate the
> agency-specific cost factor, and maintain the currency of the
> agency-specific cost factor. When preparing cost estimates, agency and
> public reimbursable sources shall (a) use the standard cost factors
> that are in effect as of the solicitation closing date; and (b) apply
> known, projected changes to these standard cost factors, if the agency
> or public reimbursable source will incur these costs before the end of
> the first performance period. If a standard cost factor changes before
> the performance decision date, the CO shall ensure the agency and
> public reimbursable cost estimates reflect the standard cost factors
> that are in effect on the performance decision date.
>
> **11.** []{#StandardCompetitionForm .anchor}**Standard Competition
> Form (SCF).** Agencies and public reimbursable sources shall use the
> SCF at Figure C2. for a standard competition. The ATO, public
> reimbursable source, CO, and SSA shall sign the certification
> statements as reflected on the SCF in Figure C2.
>
> **a.** **Agency Cost Estimate.** Based on the agency tender, the
> solicitation, and Attachment B, the ATO shall calculate and certify
> the agency cost estimate on SCF Lines 1-6, and calculate SCF Lines
> 8-17.
>
> **b.** []{#PublicReimbursableCostEstimate .anchor}**Public
> Reimbursable Cost Estimate.** Based on the public reimbursable tender,
> the solicitation, and Attachment B, a public reimbursable source shall
> calculate and certify the public reimbursable cost estimate on SCF
> Lines 1a-6a.
>
> **c.** **Negotiated Acquisition.** For a negotiated acquisition, the
> CO shall determine, through price analysis and cost realism as
> required by Attachment B, if the agency cost estimate (SCF Lines 1-6)
> and a public reimbursable cost estimate (SCF 1a-6a) are calculated in
> accordance with this attachment. The SSA ensures the performance
> decision is based on evaluating offers and tenders in accordance with
> Attachment B, and certifies either a low-cost performance decision as
> supported by SCF Line 17 or an other-than-low-cost performance
> decision as supported by the source selection decision documentation.
>
> **d.** **Sealed Bid Acquisition.** For sealed bid and negotiated
> acquisitions, the CO shall determine (as required by Attachment B) if
> the costs entered on SCF Lines 8-18 are accurate and calculated in
> accordance with this attachment. Agencies and public reimbursable
> sources shall reflect cost estimates using the SCF in Figure C2.
>
> **12.** []{#StreamlinedCompetitionForm .anchor}**Streamlined
> Competition Form (SLCF).** When performing a streamlined competition,
> an agency shall calculate and certify SLCF Lines 1, 2, 3, 4, 6, 7, 8,
> 12, 13, 17, and 18 in accordance with Attachments B and C. The cost
> estimate for a public reimbursable source shall be calculated and
> certified on SLCF Lines 1a, 2a, 3a, 4a, and 6a. Agencies shall reflect
> cost estimates using the SLCF in Figure C3. The certification
> statements as reflected on the SLCF in Figure C3, shall be signed by
> different individuals, as required by Attachment B.
>
> []{#FigureC1TableOfStandardCostingFactors .anchor}Figure C1.

+------------------------+--------------------------+--------+-------+
| **Table of Standard    |                          |        |       |
| A-76 Costing Factors** |                          |        |       |
+========================+==========================+========+=======+
| **Title**              | **Originating Source**   | **Ca   | **F   |
|                        |                          | tegory | actor |
|                        |                          | of     | ^1^** |
|                        |                          | Cost** |       |
+------------------------+--------------------------+--------+-------+
| Casualty Insurance     | OMB Transmittal          | N      | 0.5%  |
| Cost Factor            | Memoranda                | on-pay |       |
+------------------------+--------------------------+--------+-------+
| Civilian Position Full | OMB Transmittal          | Pay    | 3     |
| Fringe Benefit Cost    | Memoranda                |        | 2.85% |
| Factor                 |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Contract               | OMB Circular A-76        | Pay    | F     |
| Administration Cost    |                          |        | igure |
| Factors and Allowable  |                          |        | C6.   |
| Grades                 |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Conversion             | OMB Circular A-76        | N      | 10%   |
| Differential           |                          | on-pay | or    |
|                        |                          |        | \$10  |
|                        |                          |        | mi    |
|                        |                          |        | llion |
+------------------------+--------------------------+--------+-------+
| Cost of Capital Cost   | OMB *Circular A-94,      | N      | De    |
| Factors                | Discount Rates to be     | on-pay | pends |
|                        | Used in Evaluating       |        | Upon  |
|                        | Time-Distributed Costs   |        | Ca    |
|                        | and Benefits (Appendix   |        | pital |
|                        | C)*                      |        | Asset |
+------------------------+--------------------------+--------+-------+
| Insurance and Health   | OMB Transmittal          | Pay    | 5.7%  |
| Benefit Cost Factor    | Memoranda                |        |       |
+------------------------+--------------------------+--------+-------+
| Federal Insurance      | Social Security          | Pay    | 7.65% |
| Contribution Act       | Administration           |        |       |
| (FICA) Cost Factor^2^  |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Federal Wage System    | Civilian Personnel       | Pay    | Mul   |
| (FWS) Pay Schedules    | Management Service Wage  |        | tiple |
|                        | and Salary Division      |        | Wages |
+------------------------+--------------------------+--------+-------+
| Foreign Country        | Local Determination      | N      | De    |
| Operations &           |                          | on-pay | pends |
| Maintenance Inflation  |                          |        | Upon  |
| Cost Factors           |                          |        | Loc   |
|                        |                          |        | ation |
+------------------------+--------------------------+--------+-------+
| Fuels Inflation Cost   | Office of the Under      | N      | De    |
| Factors                | Secretary of Defense     | on-pay | pends |
|                        | (Comptroller), *National |        | Upon  |
|                        | Defense Budget Estimates |        | F     |
|                        | for the FYxx Budget      |        | iscal |
|                        | (Green Book)*            |        | Year  |
+------------------------+--------------------------+--------+-------+
| Full-Time, Part-Time & | OMB Circular A-76        | Not    | 1,776 |
| Temporary Annual       |                          | Appl   | Hours |
| Productive Hours for   |                          | icable |       |
| Civilian Positions     |                          |        |       |
+------------------------+--------------------------+--------+-------+
| General Schedule (GS)  | OPM Office of            | Pay    | Mul   |
| Pay Schedules          | Compensation             |        | tiple |
|                        | Administration           |        | Sal   |
|                        |                          |        | aries |
+------------------------+--------------------------+--------+-------+
| Intermittent Annual    | OMB Circular A-76        | Not    | 2,007 |
| Productive Hours for   |                          | Appl   | Hours |
| Civilian Positions     |                          | icable |       |
+------------------------+--------------------------+--------+-------+
| Labor Inflation Cost   | OMB Transmittal          | Pay    | De    |
| Factors for Civilian   | Memoranda                |        | pends |
| Positions              |                          |        | Upon  |
|                        |                          |        | F     |
|                        |                          |        | iscal |
|                        |                          |        | Year  |
+------------------------+--------------------------+--------+-------+
| Labor Inflation Cost   | OMB Transmittal          | Pay    | Depe  |
| Factors for            | Memoranda                |        | ndent |
| Military/Uniformed     |                          |        | Upon  |
| Services Positions     |                          |        | F     |
|                        |                          |        | iscal |
|                        |                          |        | Year  |
+------------------------+--------------------------+--------+-------+
| Medicare Benefit Cost  | Social Security          | Pay    | 1.45% |
| Factor                 | Administration           |        |       |
+------------------------+--------------------------+--------+-------+
| Military/Uniformed     | **Military               | Pay    | De    |
| Services Composite Pay | Departments:** Office of |        | pends |
| Rates                  | the Under Secretary of   |        | Upon  |
|                        | Defense (Comptroller)    |        | Unif  |
|                        | *FYxx Department of      |        | ormed |
|                        | Defense Reimbursable     |        | Se    |
|                        | Rates Tab K (All         |        | rvice |
|                        | Services)*               |        | and   |
|                        |                          |        | F     |
|                        | ***Other Uniformed       |        | iscal |
|                        | Services:** Dependent    |        | Year  |
|                        | Upon Agency Comptroller  |        |       |
|                        | Determination*           |        |       |
+------------------------+--------------------------+--------+-------+
| Miscellaneous Fringe   | OMB Transmittal          | Pay    | 1.7%  |
| Benefit Cost Factor    | Memoranda                |        |       |
+------------------------+--------------------------+--------+-------+
| Non-Appropriated Fund  | Civilian Personnel       | Pay    | Mul   |
| Pay Schedules          | Management Service Wage  |        | tiple |
|                        | and Salary Division      |        | Wages |
+------------------------+--------------------------+--------+-------+
| Old Age and Survivors  | Social Security          | Pay    | \$8   |
| Death Insurance        | Administration           |        | 7,000 |
| Maximum Taxable        |                          |        |       |
| Earnings (salary       |                          |        |       |
| limit)                 |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Old Age and Survivors  | Social Security          | Pay    | 6.2%  |
| Death Insurance Cost   | Administration           |        |       |
| Factor                 |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Operations &           | Office of Management and | N      | De    |
| Maintenance Inflation  | Budget Transmittal       | on-pay | pends |
| Cost Factors           | Memoranda                |        | Upon  |
|                        |                          |        | F     |
|                        |                          |        | iscal |
|                        |                          |        | Year  |
+------------------------+--------------------------+--------+-------+
| Overhead Factor        | OMB Circular A-76        | Pay    | 12%   |
|                        |                          | and    |       |
|                        |                          | N      |       |
|                        |                          | on-pay |       |
+------------------------+--------------------------+--------+-------+
| Personnel Liability    | OMB Transmittal          | Pay    | 0.7%  |
| Insurance Cost Factor  | Memoranda                |        |       |
+------------------------+--------------------------+--------+-------+
| Other One-Time         | OMB Circular A-76        | N      | 1%    |
| Conversion Cost Factor |                          | on-pay |       |
+------------------------+--------------------------+--------+-------+
| Severance Pay One-Time | OMB Circular A-76        | Pay    | 4%    |
| Conversion Cost Factor |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Special Class          | OMB Transmittal          | Pay    | 38.2% |
| Retirement Cost Factor | Memoranda                |        |       |
|                        |                          |        |       |
| (Law Enforcement &     |                          |        |       |
| Fire Protection)       |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Special Class          | OMB Transmittal          | Pay    | 33.0% |
| Retirement Cost Factor | Memoranda                |        |       |
| (Air Traffic Control)  |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Standard Civilian      | OMB Transmittal          | Pay    | 24.0% |
| Retirement Benefit     | Memoranda                |        |       |
| Cost Factor            |                          |        |       |
+------------------------+--------------------------+--------+-------+
| Tax Rates              | Internal Revenue Service | N      | De    |
|                        | Statistics of Income     | on-pay | pends |
|                        | Division\                |        | Upon  |
|                        | *Statistics of Income    |        | Ind   |
|                        | Corporation Sourcebook   |        | ustry |
|                        | and North American       |        | Gro   |
|                        | Industry Classification  |        | uping |
|                        | System*                  |        | in    |
|                        |                          |        | S     |
|                        |                          |        | ource |
|                        |                          |        | Doc   |
|                        |                          |        | ument |
+------------------------+--------------------------+--------+-------+
| Useful Life and        | OMB Transmittal          | N      | De    |
| Disposal Values        | Memoranda                | on-pay | pends |
|                        |                          |        | Upon  |
|                        |                          |        | the   |
|                        |                          |        | Ca    |
|                        |                          |        | pital |
|                        |                          |        | Asset |
+------------------------+--------------------------+--------+-------+
| *^1^ The factors       |                          |        |       |
| listed in this column  |                          |        |       |
| are factors in effect  |                          |        |       |
| on the publication     |                          |        |       |
| date of this circular. |                          |        |       |
| ^2^ For social         |                          |        |       |
| security (i.e.,* Old   |                          |        |       |
| Age and Survivors      |                          |        |       |
| Death Insurance *and   |                          |        |       |
| Medicare).*            |                          |        |       |
+------------------------+--------------------------+--------+-------+

> []{#FigureC2StandardCostingForm .anchor}Figure C2.

<table>
<colgroup>
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 11%" />
<col style="width: 12%" />
<col style="width: 1%" />
<col style="width: 13%" />
<col style="width: 11%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 0%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="15"><strong>STANDARD COMPETITION FORM</strong></td>
</tr>
<tr class="even">
<td colspan="2">Agency:</td>
<td>Agency Component:</td>
<td colspan="3">Competition Number:</td>
<td colspan="4">Competition Title:</td>
<td colspan="5">Competition Location:</td>
</tr>
<tr class="odd">
<td colspan="6">Solicitation Closing Date:</td>
<td colspan="9">Solicitation Number:</td>
</tr>
<tr class="even">
<td><strong>Line #</strong></td>
<td colspan="4"><strong>Line Title</strong></td>
<td><strong>1st Performance Period (Phase-in Period)</strong></td>
<td colspan="2"><p><strong>2<sup>nd</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td colspan="3"><p><strong>3<sup>rd</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td colspan="3"><p><strong>4<sup>th</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td><strong>Total</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong>COST OF AGENCY PERFORMANCE</strong></td>
</tr>
<tr class="even">
<td>1.</td>
<td colspan="4">Personnel Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>2.</td>
<td colspan="4">Material and Supply Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>3.</td>
<td colspan="4">Other Specifically Attributable Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>4.</td>
<td colspan="4">Overhead Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>5.</td>
<td colspan="4">Additional Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>6.</td>
<td colspan="4"><strong>Total Cost of Agency Performance</strong></td>
<td><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="15"><strong><u>Agency Tender Certification</u>:</strong> I
certify, to the best of my knowledge, that this agency tender (1) meets
the requirements of the solicitation; (2) reflects a most efficient
organization (MEO) that is fully capable of performing the requirements
of the solicitation; (3) includes an agency cost estimate that is
accurate and calculated in accordance with OMB Circular A-76; and (4)
has the approval of the agency, allowing for implementation of the
organizational structure, the personnel requirements, capital
investments, and budgetary requirements.</td>
</tr>
<tr class="odd">
<td colspan="7"><strong>Agency Tender Official’s
Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="even">
<td colspan="5">Printed Full Name:</td>
<td colspan="7">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="odd">
<td colspan="15"><strong>COST OF PUBLIC REIMBURSABLE
PERFORMANCE</strong></td>
</tr>
<tr class="even">
<td>1a.</td>
<td colspan="4">Personnel Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>2a.</td>
<td colspan="4">Material and Supply Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>3a.</td>
<td colspan="4">Other Specifically Attributable Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>4a.</td>
<td colspan="4">Overhead Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>5a.</td>
<td colspan="4">Additional Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>6a.</td>
<td colspan="4"><strong>Total Cost of Public Reimbursable
Performance</strong></td>
<td><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="15"><strong><u>Public Reimbursable Tender
Certification</u>:</strong> I certify, to the best of my knowledge, that
this public reimbursable tender (1) meets the requirements of the
solicitation; (2) reflects an organization that is fully capable of
performing the requirements of the solicitation; (3) includes a cost
estimate that is accurate and calculated in accordance with OMB Circular
A-76; and (4) has the approval of my agency, allowing for implementation
of the organizational structure, the personnel requirements, capital
investments, and budgetary requirements.</td>
</tr>
<tr class="odd">
<td colspan="7"><strong>Official’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="even">
<td colspan="4">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="odd">
<td colspan="15"><strong>ADJUSTED COST OF PRIVATE SECTOR OR PUBLIC
REIMBURSABLE PERFORMANCE</strong></td>
</tr>
<tr class="even">
<td>7.</td>
<td colspan="4">Private Sector Price or Public Reimbursable Cost
Estimate</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>8.</td>
<td colspan="4">Contract Administration Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>9.</td>
<td colspan="4">Additional Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>10.</td>
<td colspan="4">One-Time Conversion Costs</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>11.</td>
<td colspan="4">Gain From Disposal or Transfer of Assets</td>
<td>($000)</td>
<td colspan="2">($000)</td>
<td colspan="3">($000)</td>
<td colspan="3">($000)</td>
<td>($000)</td>
</tr>
<tr class="odd">
<td>12.</td>
<td colspan="4">Federal Income Tax Adjustment</td>
<td>($000)</td>
<td colspan="2">($000)</td>
<td colspan="3">($000)</td>
<td colspan="3">($000)</td>
<td>($000)</td>
</tr>
<tr class="even">
<td>13.</td>
<td colspan="4"><strong>Total Adjusted Cost of Private Sector or Public
Reimbursable Performance</strong></td>
<td><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong>DECISION CALCULATIONS</strong></td>
</tr>
<tr class="even">
<td>14.</td>
<td colspan="13">Conversion Differential</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>15.</td>
<td colspan="13">Adjusted Total Cost of Agency Performance</td>
<td>$000</td>
</tr>
<tr class="even">
<td>16.</td>
<td colspan="13">Adjusted Total Cost of Private Sector or Public
Reimbursable Performance</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>17.</td>
<td colspan="13">Cost Difference (Enter: Line 16 – Line 15)</td>
<td>$000</td>
</tr>
<tr class="even">
<td><strong>18.</strong></td>
<td colspan="3"><strong>LOW-COST PROVIDER</strong></td>
<td colspan="5"><strong>□ Agency Provider</strong></td>
<td colspan="4"><strong>□ Private Sector Provider</strong></td>
<td colspan="2"><strong>□ Public Reimbursable Provider</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong>PERFORMANCE DECISION</strong></td>
</tr>
<tr class="even">
<td colspan="15"><strong>SEALED BID ACQUISITION</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong><u>CONTRACTING OFFICER’S
CERTIFICATION:</u></strong> I certify that, to the best of my knowledge
(1) the agency tender meets the requirements of the solicitation; (2)
the private sector offer meets the requirements of the solicitation, the
offeror is responsible, and the contract price is reasonable [include
only if a contract price is entered on Line 7],
<strong><u>or</u></strong> the public reimbursable tender meets the
requirements of the solicitation [include only if a public reimbursable
cost estimate is entered on both SCF Line 6a and 7]; and (3) the costs
on SCF Lines 8-18 are accurate and calculated in accordance with OMB
Circular A-76, and (4) the performance decision is a low-cost decision
supported by SCF Line 17.</td>
</tr>
<tr class="even">
<td colspan="7"><strong>Contracting Officer’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="4">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="even">
<td colspan="15"><strong>NEGOTIATED ACQUISITION</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong><u>CONTRACTING OFFICER’S
CERTIFICATION:</u></strong> I certify that price analysis and cost
realism (as defined in FAR Part 2) was performed on all offers and
tenders; and that, to the best of my knowledge (1) the agency tender
meets the requirements of the solicitation; (2) the agency cost estimate
reflected on SCF Lines 1-6 is accurate and calculated in accordance with
OMB Circular A-76; (3) the private sector offer meets the requirements
of the solicitation, the offeror is responsible, and the contract price
is reasonable [include only when a contract price(s) is entered on Line
7] <strong><u>and/or</u></strong> the public reimbursable tender meets
the requirements of the solicitation and the cost estimate reflected on
SCF Lines 1a-6a is accurate and calculated in accordance with OMB
Circular A-76 [include only when a public reimbursable cost estimate is
entered on SCF Line 6a]; and (4) the costs on SCF Lines 8-18 are
accurate and calculated in accordance with OMB Circular A-76.</td>
</tr>
<tr class="even">
<td colspan="7"><strong>Contracting Officer’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="4">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="even">
<td colspan="15"><strong><u>SOURCE SELECTION AUTHORITY’S
CERTIFICATION:</u></strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong><u>FOR A LOW-COST PERFORMANCE
DECISION:</u></strong> I certify that the performance decision on SCF
Line 18 is (1) based on evaluating offers and tenders in accordance with
Attachment B to OMB Circular A-76, and (2) a low-cost performance
decision supported by SCF Line 17.</td>
</tr>
<tr class="even">
<td colspan="7"><strong>Source Selection Authority’s
Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="4">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="even">
<td colspan="15"><strong><u>FOR AN OTHER-THAN-LOW-COST PERFORMANCE
DECISION:</u></strong> I certify that the performance decision on this
SCF is (1) is based on evaluating offers and tenders in accordance with
Attachment B to OMB Circular A-76, and (2) an other-than-low-cost
performance decision is supported by my source selection decision
document as summarized below.</td>
</tr>
<tr class="odd">
<td colspan="7"><strong>Summary of Source Selection Decision
Document::</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="even">
<td colspan="7"><strong>Narrative of Trade-offs Performed:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="15"><strong>Rationale for an Other-Than-Low-Cost
Provider:</strong></td>
</tr>
<tr class="even">
<td colspan="7"><strong>Source Selection Authority’s
Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="4">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
</tbody>
</table>

> []{#FigureC3StreamlinedCostingForm .anchor}Figure C3.

<table>
<colgroup>
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 11%" />
<col style="width: 12%" />
<col style="width: 0%" />
<col style="width: 1%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 11%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 0%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="17"><strong>STREAMLINED COMPETITION FORM</strong></td>
</tr>
<tr class="even">
<td colspan="2">Agency:</td>
<td>Agency Component:</td>
<td colspan="5">Competition Number:</td>
<td colspan="4">Competition Title:</td>
<td colspan="5">Competition Location:</td>
</tr>
<tr class="odd">
<td colspan="8">Solicitation Closing Date (if applicable)</td>
<td colspan="9">Solicitation Number (if applicable):</td>
</tr>
<tr class="even">
<td><strong>Line #</strong></td>
<td colspan="5"><strong>Line Title</strong></td>
<td colspan="2"><p><strong>1st Performance Period (Phase-in
Period)</strong></p>
<p><strong>(if applicable)</strong></p></td>
<td colspan="2"><p><strong>2<sup>nd</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td colspan="3"><p><strong>3<sup>rd</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td colspan="3"><p><strong>4<sup>th</sup> Performance</strong></p>
<p><strong>Period</strong></p></td>
<td><strong>Total</strong></td>
</tr>
<tr class="odd">
<td colspan="17"><strong>ESTIMATED COST OF AGENCY
PERFORMANCE</strong></td>
</tr>
<tr class="even">
<td>1.</td>
<td colspan="5">Personnel Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>2.</td>
<td colspan="5">Material and Supply Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>3.</td>
<td colspan="5">Other Specifically Attributable Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>4.</td>
<td colspan="5">Overhead Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>6.</td>
<td colspan="5"><strong>Total Cost of Agency Performance</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="odd">
<td colspan="17"><strong><u>Agency Tender Certification</u>:</strong> I
certify, to the best of my knowledge, that this agency cost estimate on
SLCF Lines 1, 2, 3, 4, and 6 is (1) based on the scope and requirements
of the activity being competed, and (2) is calculated in accordance with
OMB Circular A-76.</td>
</tr>
<tr class="even">
<td colspan="9"><strong>Agency Official’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="6">Printed Full Name:</td>
<td colspan="8">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="even">
<td colspan="17"><strong>ESTIMATED COST OF PUBLIC REIMBURSABLE
PERFORMANCE</strong></td>
</tr>
<tr class="odd">
<td>1a.</td>
<td colspan="5">Personnel Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>2a.</td>
<td colspan="5">Material and Supply Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>3a.</td>
<td colspan="5">Other Specifically Attributable Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>4a.</td>
<td colspan="5">Overhead Costs</td>
<td colspan="2">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td>6a.</td>
<td colspan="5"><strong>Total Cost of Public Reimbursable
Performance</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="17"><strong><u>Public Reimbursable Tender
Certification</u>:</strong> I certify, to the best of my knowledge, that
the cost estimate on SLCF Line 7 is based on (1) calculating SLCF Lines
1a, 2a, 3a, 4a, and 6a in accordance with OMB Circular A-76; and (2) the
scope and requirements of the activity being competed.</td>
</tr>
<tr class="odd">
<td colspan="9"><strong>Agency Official’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="even">
<td colspan="5">Printed Full Name:</td>
<td colspan="9">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="odd">
<td colspan="17"><strong>ESTIMATED COST OF PRIVATE SECTOR OR PUBLIC
REIMBURSABLE PERFORMANCE</strong></td>
</tr>
<tr class="even">
<td>7.</td>
<td colspan="6">Private Sector Price or Public Reimbursable Cost
Estimate</td>
<td>$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="odd">
<td colspan="17"><strong><u>Certification of Estimated Cost of private
sector performance</u>:</strong> I certify, to the best of my knowledge,
that the cost estimate on SLCF Line 7 is based on (1) documented market
research or soliciting cost proposals in accordance with the FAR [OR a
public reimbursable source estimate as reflected on SLCF Line 6a]; and
(2) the scope and requirements of the activity being competed.</td>
</tr>
<tr class="even">
<td colspan="9"><strong>Agency Official’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="odd">
<td colspan="5">Printed Full Name:</td>
<td colspan="9">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
<tr class="even">
<td colspan="17"><strong>ADJUSTED COST OF PRIVATE SECTOR OR PUBLIC
REIMBURSABLE PERFORMANCE</strong></td>
</tr>
<tr class="odd">
<td>8.</td>
<td colspan="3">Contract Administration Costs</td>
<td colspan="4">$000</td>
<td colspan="2">$000</td>
<td colspan="3">$000</td>
<td colspan="3">$000</td>
<td>$000</td>
</tr>
<tr class="even">
<td>12.</td>
<td colspan="3">Federal Income Tax Adjustment</td>
<td colspan="4">($000)</td>
<td colspan="2">($000)</td>
<td colspan="3">($000)</td>
<td colspan="3">($000)</td>
<td>($000)</td>
</tr>
<tr class="odd">
<td>13.</td>
<td colspan="3"><strong>Total Adjusted Cost of Private Sector or Public
Reimbursable Performance</strong></td>
<td colspan="4"><strong>$000</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="17"><strong>DECISION CALCULATIONS</strong></td>
</tr>
<tr class="odd">
<td>17.</td>
<td colspan="15">Cost Difference (Enter: Line 13 – Line 6)</td>
<td>$000</td>
</tr>
<tr class="even">
<td><strong>18.</strong></td>
<td colspan="4"><strong>LOW –COST PROVIDER</strong></td>
<td colspan="6"><strong>□ Agency Provider</strong></td>
<td colspan="4"><strong>□ Private Sector Provider</strong></td>
<td colspan="2"><strong>□ Public Reimbursable Provider</strong></td>
</tr>
<tr class="odd">
<td colspan="17"><strong>PERFORMANCE DECISION</strong></td>
</tr>
<tr class="even">
<td colspan="17"><strong><u>CERTIFICATION OF ADJUSTED
COSTS:</u></strong> I certify that to the best of my knowledge, the
costs on SLCF Lines 8, 12, 13, and 17 are accurate and calculated in
accordance with OMB Circular A-76; and that the performance decision
reflected on SLCF Line 18 is cost effective.</td>
</tr>
<tr class="odd">
<td colspan="9"><strong>Agency Official’s Signature:</strong></td>
<td colspan="8"><strong>Date:</strong></td>
</tr>
<tr class="even">
<td colspan="5">Printed Full Name:</td>
<td colspan="9">Title:</td>
<td colspan="2">Agency (Component):</td>
<td>Phone #:</td>
</tr>
</tbody>
</table>

**B.** []{#CostAgencyPerformanceSCF_SLCFLine1_6 .anchor}**[Cost of
Agency Performance (SCF/SLCF Lines 1-6)]{.underline}.**

**[COST OF PUBLIC REIMBURSABLE PERFORMANCE (SCF/SLCF lINES
1a-6a).]{.underline}**

> **1.** []{#AtchCScope .anchor}**Scope.** Unless otherwise provided,
> agency cost estimates and public reimbursable cost estimates shall be
> calculated in accordance with paragraph B of this attachment.
>
> **2.** []{#PersonnelCosts .anchor}**Personnel Costs (SCF/SLCF Line
> 1/1a).** Personnel costs for an agency cost estimate shall be entered
> on SCF Line 1 for a standard competition or SLCF Line 1 for a
> streamlined competition. Personnel costs in a public reimbursable cost
> estimate shall be entered on SCF Line 1a for a standard competition or
> SLCF Line 1a for a streamlined competition. Agency and public
> reimbursable sources shall include sufficient written documentation of
> all personnel costs included in cost estimates for the CO to conduct
> price analysis and cost realism as required by Attachment B. Personnel
> costs for agency and public reimbursable cost estimates shall be
> calculated as provided below. Agencies shall determine and manually
> input the cost data for this SCF/SLCF line into COMPARE. COMPARE
> automatically computes Line 1 and Line 1a totals based upon user
> inputs.
>
> **a.** []{#LaborCosts .anchor}**Labor Costs.** Agency and public
> reimbursable sources shall calculate all labor costs to reflect the
> staffing (e.g., MEO) necessary to meet the solicitation requirements
> and include these costs in cost estimates. These labor costs include,
> but are not limited to, direct labor; labor for supervision and
> management related support to the tender (e.g., MEO) such as labor for
> quality control, labor for MEO administration and inspection based on
> the MEO letter of obligation, labor for contract administration and
> surveillance for MEO subcontract, and indirect labor. An agency shall
> determine direct labor costs based on the government personnel costs
> for labor that will be dedicated to the MEO. To calculate direct
> labor, an agency shall identify the specific MEO staffing, wage/grade
> classifications, salaries, wages and other entitlements such as fringe
> benefits, overseas allowances, uniform allowances and overtime and
> other local personnel costs expended to perform the MEO. Direct labor
> includes resources dedicated to performing the requirements of the
> solicitation and labor for supervision and management related support
> to the tender (e.g., MEO) such as labor for quality control.
>
> **b.** []{#ProratedLabor .anchor}**Prorated Labor.** Agency and public
> reimbursable sources shall prorate the cost of government personnel
> who will not be 100 percent dedicated to the organization in the
> tender (e.g., MEO) based on the amount of dedicated time the agency
> expects these civilian positions to provide to the organization (e.g.,
> MEO). For example, if a GS-13 position spends 20 percent of their time
> performing management oversight of an activity being competed, the
> prorated cost is entered on SCF Line 1 as 0.20 FTE in the grade of
> GS-13, step 5. Agencies and public reimbursable sources shall
> calculate prorated labor in cost estimates and enter these costs on
> SCF Line 1 or Line 1a, as appropriate.
>
> **c.** []{#AdministrationInspectionMEOLtrObligatio
> .anchor}**Administration and Inspection Costs for an MEO Letter of
> Obligation.** The agency cost estimate shall include labor costs for
> MEO administration and inspection. These costs include, but are not
> limited to, monitoring performance and compliance with the MEO letter
> of obligation for all performance periods. A public reimbursable cost
> estimate shall not include these administration costs since they are
> accounted for on SCF/SLCF Line 8.
>
> **d.** []{#FullTimeEquivalents .anchor}**Full-Time Equivalents
> (FTE).** Based on workload requirements, agency and public
> reimbursable sources shall determine the productive work hours for the
> organization in the tender (e.g., MEO) and then convert these
> productive hours into FTE positions. After the FTE determination, an
> agency shall establish the staffing for the organization in the tender
> (e.g., MEO), which includes the number of positions and grades
> necessary to meet the FTE requirements. For example, if an agency
> determines that 35.789 FTEs of direct labor will be necessary to meet
> the workload requirements, the agency will then convert the 35.789 FTE
> requirement into the number of positions and corresponding grades
> necessary to fill these requirements, resulting in a staffing level of
> 36 positions for the organization in the agency tender. The agency
> then calculates the cost of the 36 positions and enters the cost on
> Line 1 or Line la, as appropriate. In this example, the work
> associated with the 0.789 FTEs was converted into a whole position
> based on a specific staffing approach; however, another agency might
> elect to use intermittent or part-time positions to accomplish the
> 0.789 FTE requirement. After these FTE calculations and staffing
> determinations, agency and public reimbursable sources shall determine
> and add the staffing for indirect labor to the organization in the
> tender to support the direct labor (man-year) requirements.
>
> **(1)** []{#FTERounding .anchor}**FTE Rounding.** An agency shall
> round FTE calculations to three decimal places (for example: 0.000
> FTEs).
>
> **(2)** []{#FullTimePartTimeTemporarySeasonalFTEs .anchor}**Full-time,
> Part-time, Temporary, and Seasonal FTEs.** An agency shall determine
> the required number of FTEs by identifying the total hours required,
> by skill and grade, and then divide by 1,776 annual productive hours.
> The productive hours shall exclude annual leave, sick leave,
> administrative leave, training, and other nonproductive hours.
>
> **(3)** []{#IntermittentFTEs .anchor}**Intermittent FTEs.** An agency
> shall determine the required number of FTEs by identifying the total
> hours required, by skill and grade, and then divide by 2,007 annual
> productive hours.
>
> **e.** []{#CivilianPositionPayAndWages .anchor}**Civilian Position Pay
> and Wages.**
>
> **(1)** []{#Calculation .anchor}**Calculation.** Agency and public
> reimbursable sources shall calculate civilian pay and wages for cost
> estimates using (a) local pay salaries and wages at a rate of step 5
> for GS, and step 4 for FWS, positions; (b) the mid-grade, or mid-band
> and mid-step level for pay-banded or demonstration project positions;
> (c) the locality pay for the location, or each location in a
> multi-location competition; and (d) the length of time in grade for
> each grade in a developmental series, as determined by the HRA.
>
> **(2)** []{#PayRateChanges .anchor}**Pay Rate Changes.** Agency and
> public reimbursable sources shall implement pay rate changes in cost
> estimates when the pay rate changes become "known." The specific point
> at which these pay rate changes become "known" is after the President
> signs the executive order approving the pay rate changes and the
> executive order is made available to the public. The cost of a pay
> rate change is incurred by the government based upon the effective
> date of the pay tables, regardless of whether the President signs the
> treasury/postal authorization bill for a given fiscal year. Therefore,
> agency and public reimbursable sources shall incorporate pay rate
> changes in cost estimates if (a) the effective date of the new pay
> table is prior to or the same day as the first day of the phase-in
> period; and (b) the signed Presidential executive order approving the
> pay rate changes is available to the public. If an agency or public
> reimbursable source has prepared a cost estimate but a performance
> decision is pending, the agency or public reimbursable source shall
> update the cost estimate to reflect these "known" pay rate changes
> prior to the performance decision being made.
>
> **f.** []{#CivilianPositionFringeBenefitsAndFICA .anchor}**Civilian
> Position Fringe Benefits and Federal Insurance Contribution Act
> (FICA).** Agency and public reimbursable sources shall calculate
> civilian fringe benefits and FICA based upon the basic pay for each
> position in the cost estimate. Basic pay for GS positions is the
> position's annual salary plus any applicable "other civilian position
> pay entitlements" (see "Other Civilian Pay Entitlements" paragraph
> below). Basic pay for FWS positions is the position's annual wages
> including shift differential pay and environmental pay plus any
> applicable "other civilian pay entitlements" (see "Other Civilian Pay
> Entitlements" paragraph below). Agency and public reimbursable sources
> shall multiply basic pay by the following government-wide standard
> factors. COMPARE automatically computes the costs for these entries.
>
> **(1)** []{#FullTimePartTimePermanentCivilian .anchor}**Full-time and
> Part-time Permanent Civilian Positions.** On the publication date of
> this circular, full-time and part-time permanent civilian positions
> receive the civilian position full fringe benefit cost factor of 32.85
> percent of the position's basic pay. The 32.85 percent civilian
> position full fringe benefit cost factor is the sum of the standard
> civilian position retirement benefit cost factor (24.0 percent),
> insurance and health benefit cost factor (5.7 percent), Medicare
> benefit cost factor (1.45 percent), and miscellaneous fringe benefit
> cost factor (1.7 percent).
>
> **(a)** []{#RetirementBenefitCostFactors .anchor}**Retirement Benefit
> Cost Factors.** The standard civilian retirement benefit cost factor
> represents the cost of the weighted Civil Service Retirement
> System/Federal Employees Retirement System to the government, based
> upon the full dynamic normal cost of the retirement systems, the
> normal cost of accruing retiree health benefits based on average
> participation rates, social security, and Thrift Savings Plan
> contributions. On the publication date of this circular, the standard
> civilian retirement benefit cost factor for civilian positions is 24
> percent of the position's basic pay (18.9 percent retirement pension
> plus 5.1 percent for retiree health). The retirement cost factors for
> special class civilian positions are: 33.0 percent of basic pay for
> air traffic controllers (27.9 percent retirement pension plus 5.1
> percent for retiree health) and 38.2 percent of basic pay for law
> enforcement and fire protection (33.1 percent retirement pension plus
> 5.1 percent for retiree health).
>
> **(b)** []{#InsuranceHealthBenefitCostFactor .anchor}**Insurance and
> Health Benefit Cost Factor.** On the publication date of this
> circular, the insurance and health benefit cost factor for civilian
> positions, based on actual cost, is 5.7 percent of the position's
> basic pay.
>
> **(c)** []{#MedicareBenefitCostFactor .anchor}**Medicare Benefit Cost
> Factor.** On the publication date of this circular, the Medicare
> benefit cost factor is 1.45 percent of the civilian position's basic
> pay.
>
> **(d)** []{#MiscellaneousFringeBenefitCostFactor
> .anchor}**Miscellaneous Fringe Benefit Cost Factor.** As of the
> publication date of this circular, the miscellaneous fringe benefits
> cost factor for civilian positions (workmen\'s compensation, bonuses,
> awards, and unemployment programs) is 1.7 percent of the position's
> basic pay. Based on the OPM civilian award policy, there are two
> general categories for civilian awards. Category one is for special
> acts (e.g., cash awards, bonuses) that are over and above a civilian
> employee's expected annual performance, and category two is for awards
> that are based on a civilian employee's annual performance rating
> (e.g., cash awards, bonuses, quality step increases). Category one
> civilian awards are not included in the 1.7 percent miscellaneous
> fringe benefit factor (these costs are entered under "Other Civilian
> Pay"). Category two civilian awards are included in the 1.7 percent
> miscellaneous fringe benefit factor.
>
> **(2)** []{#TemporaryIntermittentCivilianPositions .anchor}**Temporary
> and Intermittent Civilian Positions.** The full benefit factor is not
> applied to temporary and intermittent civilian positions. Agencies and
> public reimbursable sources shall apply the FICA cost factor to
> civilian positions not covered by Civil Servant Retirement System or
> Federal Employee Retirement System (typically intermittent and
> temporary civilian positions). On the publication date of this
> circular, the FICA cost factor is 7.65 percent of salaries or wages
> subject to federal income tax. The FICA cost factor equates to 6.2
> percent for Old Age and Survivors Death Insurance benefits and 1.45
> percent for Medicare benefits. There is an annual maximum earnings
> limitation of \$87,000 for the Old Age and Survivors Death Insurance
> benefit portion of the FICA tax.
>
> **(3)** []{#SeasonalCivilianPositions .anchor}**Seasonal Civilian
> Positions.** Seasonal civilian positions are employed on a recurring
> basis for less than 12 months each year. Agencies and public
> reimbursable sources shall calculate the cost of a seasonal position
> based on 1,776 annual productive hours, and determine the number of
> seasonal civilian positions as a seasonal full-time or seasonal
> part-time position based on the number of annual hours the civilians
> will be scheduled to work. Agencies and public reimbursable sources
> shall then calculate permanent seasonal civilian positions using the
> civilian position full fringe benefit cost factor, and temporary
> seasonal civilian positions using the FICA cost factor.
>
> **g.** []{#OtherCivilianPay .anchor}**Other Civilian Pay.** Agency and
> public reimbursable sources shall calculate other civilian pay for
> each position in the cost estimate, when applicable. Other civilian
> pay includes pay that is subject only to FICA taxes. Examples of this
> type of pay include, but are not limited to, premium pay, night
> differential pay for GS positions, overtime pay, holiday pay, category
> one civilian awards, civilian bonuses, and uniform allowances.
>
> **h.** []{#OtherCivilianPayEntitlements .anchor}**Other Civilian Pay
> Entitlements.** Agency and public reimbursable sources shall calculate
> other civilian pay entitlements for each civilian position in the cost
> estimate, when applicable. Agency and public reimbursable sources
> shall identify these entitlements and use current cost factors for
> each entitlement identified in cost estimates. In a standard
> competition, the HRA shall identify these entitlements and obtain the
> current cost factors for each entitlement identified in the agency
> cost estimate. Examples of these entitlements include, but are not
> limited to, night differential pay for FWS positions, environmental
> differential pay and premium pay (for civilian fire fighters and law
> enforcement officers). Agencies shall determine and manually input the
> cost data for this cost entry into COMPARE.
>
> **i.** []{#NonForeignAreaCivilianEmployeeCOLA .anchor}**Non-Foreign
> Area Civilian Employee Cost-Of-Living Allowance.** Agency and public
> reimbursable sources shall calculate cost-of-living allowances for
> each position in the cost estimate, when applicable. A cost-of-living
> allowance is applied to any civilian employee position that will
> physically perform work in the following locations: Alaska, Hawaii,
> Guam, Puerto Rico, the United States Virgin Islands, and the
> Commonwealth of the Northern Mariana Islands. Agencies shall determine
> and manually input the cost data for this cost entry into COMPARE.
>
> **j.** []{#AdministrationSurveillanceForMEOSubContr
> .anchor}**Administration and Surveillance for MEO Subcontracts.** If a
> mix of government positions and subcontracts is included in a tender,
> agency and public reimbursable sources shall calculate the cost of
> labor for the administration and surveillance of these subcontracts
> and enter the cost on Line 1 or 1a, as appropriate. An agency shall
> enter the actual costs of MEO subcontracts and fee-for-service
> agreements, as well as the cost of government-furnished material,
> equipment, facilities, and services for these subcontracts, on Line 3
> or Line 3a, as appropriate. A public reimbursable source shall enter
> the actual costs of subcontracts and fee-for-service agreements, as
> well as the cost of public reimbursable furnished material, equipment,
> facilities, and services for these subcontracts, on Line 3a. Agencies
> shall determine and manually input the cost data for this cost entry
> into COMPARE.
>
> **k.** []{#LaborEscalation .anchor}**Labor Escalation.** Inflation for
> wages and salaries of civilian positions and private sector service
> positions (often referred to as "labor escalation") is included in
> private sector cost proposals, agency cost estimates, and public
> reimbursable cost estimates based on the solicitation requirements for
> economic price adjustment for labor inflation. An economic price
> adjustment for services and construction labor is determined by the
> Service Contract Act (SCA), the Davis-Bacon Act and FAR Part 22. To
> calculate inflation for civilian positions in cost estimates, agency
> and public reimbursable sources shall comply with the following
> guidance, which is consistent with the requirements in FAR Part 22 for
> submission of private sector offers. COMPARE automatically computes
> the applicable inflation costs based on the user input selections in
> accordance with the following:

(1) If a solicitation **does not include** either FAR clause 52.222-43
    or 52.222-44, an agency shall apply inflation to all civilian
    positions for all performance periods through the end of the last
    performance period stated in the solicitation.

(2) If a solicitation **does include** either FAR clause 52.222-43 or
    52.222-44, agency and public reimbursable sources shall inflate
    labor costs in cost estimates as follows: (a) For civilian positions
    that are subject to an economic price adjustment (i.e., the position
    description states the position is nonexempt under the Fair Labor
    Standards Act, inflation is applied only through the end of the
    first period of full performance; or (b) For civilian positions that
    are not subject to an economic price adjustment (i.e., the position
    description states the position is exempt under the Fair Labor
    Standards Act inflation) is applied for all performance periods
    through the end of the last performance period stated in the
    solicitation.

(3) SCA and the Davis-Bacon Act do not apply to civilian positions;
    however, the Fair Labor Standards Act can be applied to civilian
    positions consistent with SCA since both the Fair Labor Standards
    Act and SCA use the same definitions for employees that perform
    services. On the basis of these common definitions, and since the
    private sector uses the SCA and the Davis-Bacon Act (as prescribed
    in FAR Part 22) to determine which private sector positions are
    subject to an economic price adjustment, agencies and public
    reimbursable sources shall use the Fair Labor Standards Act to
    determine which civilian positions are subject to an economic price
    adjustment in cost estimates. The determination of whether a
    civilian position is exempt or nonexempt under the Fair Labor
    Standards Act is required by OPM when civilian position descriptions
    are classified. Therefore, when an official civilian position
    description is classified as exempt under the Fair Labor Standards
    Act, the civilian position [is not subject]{.underline} to an
    economic price adjustment and labor costs are inflated for all
    performance periods through the end of the last performance period
    stated in the solicitation. When a position description is
    classified as nonexempt under the Fair Labor Standards Act, the
    civilian position [is subject]{.underline} to an economic price
    adjustment but **only** if the solicitation includes FAR clause
    52.222-43 or FAR 52.222-44; in that case, labor costs for non-exempt
    positions are inflated through the end of the first period of full
    performance.

> **l.** []{#LaborInflationCostFactors .anchor}**Labor Inflation Cost
> Factors.** As provided in paragraph A of this Attachment, an annual
> OMB Transmittal Memorandum identifies the federal pay raise
> assumptions and inflation cost factors (i.e., pay increases expressed
> in percentages) for civilian positions. This transmittal memorandum
> provides an update to the pay inflation cost factors used to estimate
> projected civilian pay costs and to specify the year in which these
> labor inflation cost factors become effective. Agency and public
> reimbursable sources shall apply the labor inflation cost factors
> (specified in the annual OMB transmittal memorandum) on the day
> immediately following the end of the effective period of the GS or FWS
> pay schedules used in the agency cost estimate.
>
> **(1)** []{#GeneralSchedule .anchor}**General Schedule (GS).** Since
> GS pay schedules are effective on the first day of the first full pay
> period beginning on or after January 1 of each year, agency and public
> reimbursable sources shall apply the labor inflation cost factors in
> January of each year following the end of the effective period for the
> pay schedule used in cost estimates for GS positions. For example, if
> the GS pay schedule in use is effective on January 12, 2003, the 2004
> pay inflation factor is applied on January 12, 2004. The labor
> inflation cost factor for each year provided in the transmittal
> memorandum is applied on January 12 of each subsequent year of
> performance included in the cost estimate as required by the
> performance periods stated in the solicitation.
>
> **(2)** []{#FederalWageSystem .anchor}**Federal Wage System (FWS).**
> FWS pay schedules are effective for a 12-month period, and differ from
> GS pay schedules in that effective dates for FWS pay schedules (a)
> occur during any month of the year and (b) vary by location. For FWS
> positions, agency and public reimbursable sources shall apply the
> labor inflation cost factors at the end of the effective period of the
> FWS pay schedule used in the cost estimates. Agency and public
> reimbursable sources shall apply FWS labor inflation cost factors to
> FWS pay as follows:
>
> **(a)** []{#JanuaryToSeptemberEffectiveDates .anchor}**January to
> September Effective Dates.** For FWS pay schedules with effective
> dates from January 1 through September 30, agency and public
> reimbursable sources shall use the labor inflation cost factor that
> corresponds to the year of the end date of the effective period for
> the FWS pay schedule. For example, if an FWS pay schedule is effective
> from April 20, 2003 to April 19, 2004, the 2004 labor inflation cost
> factor is used on April 20, 2004. On April 20 of each subsequent year,
> the labor inflation cost factor that corresponds to each subsequent
> year is used.
>
> **(b)** []{#OctoberToDecemberEffectiveDates .anchor}**October to
> December Effective Dates.** For FWS pay schedules with effective dates
> from October 1 through December 31, agency and public reimbursable
> sources shall use the labor inflation cost factor that corresponds to
> the year following the end date of the effective period for the FWS
> pay schedule. For example, if an FWS pay schedule is effective from
> October 20, 2003 to October 19, 2004, the 2005 labor inflation cost
> factor is used on October 20, 2004. On October 20 of each subsequent
> year, the labor inflation cost factor that corresponds to each
> subsequent year is used.
>
> **m.** []{#UniformedServicesLabor .anchor}**Uniformed Services
> Labor.** Agency and public reimbursable sources may include uniformed
> services labor in tenders, only under the following conditions: (a)
> uniformed services positions in the tender (e.g., MEO) shall not
> exceed the number of pre-competition uniformed services positions
> performing the activity and (b) civilian employee positions shall not
> be converted to uniformed services positions. If uniformed services
> labor is used in a tender, the agency or public reimbursable source
> shall develop productive hours for the uniformed services positions
> that include annual leave, sick leave, administrative leave, training,
> and other nonproductive hours. Agency and public reimbursable sources
> shall calculate the cost of uniformed services positions using the
> military/uniformed services composite pay rate, apply the labor
> inflation cost factor, and enter this cost data for Line 1 or Line 1a
> calculations, as appropriate. COMPARE automatically computes the Line
> 1 or Line 1a entry based on the user inputs.
>
> **3.** []{#MaterialSupplyCostsSCF_SLCFLine2_2a .anchor}**Material and
> Supply Costs (SCF/SLCF Line 2/2a).** Material and supply costs in an
> agency cost estimate shall be entered on SCF Line 2 for a standard
> competition or SLCF Line 2 for a streamlined competition. Material and
> supply costs in a public reimbursable cost estimate shall be entered
> on SCF Line 2a for a standard competition or SLCF Line 2a for a
> streamlined competition. Agency and public reimbursable sources shall
> include sufficient written documentation of all material and supply
> costs included in cost estimates for the CO to conduct price analysis
> and cost realism as required by Attachment B. Agencies and public
> reimbursable cost estimates shall calculate material and supply costs
> as follows. Agencies shall determine and manually input the cost data
> for this SCF/SLCF line into COMPARE.
>
> **a.** []{#GenerMaterialSupplyCostsSCF_SLCFLine2_2a
> .anchor}**General.** Material and supply costs are incurred in each
> performance period for goods such as raw materials, parts,
> subassemblies, components, fuel, and office supplies. Agency and
> public reimbursable sources shall adjust historical or engineering
> estimates of material and supply use, and cost data, to reflect the
> solicitation requirements in cost estimates. An agency shall calculate
> material and supply costs and include these costs in the agency cost
> estimate **only** if the materials and supplies are required for the
> agency tender but are not provided to all prospective providers as GFP
> in the solicitation. The CO includes instructions for material and
> supply costs in the solicitation (FAR 51.101). Agency and public
> reimbursable sources shall comply with the solicitation instructions
> for calculating the cost of materials and supplies in cost estimates
> and enter the costs on Line 2 or 2a, as appropriate. For material and
> supplies not provided as GFP but needed to meet the requirements of
> the solicitation, a public reimbursable source shall calculate the
> cost of materials and supplies in accordance with this paragraph,
> reflect these costs in the cost estimate, and enter the costs on Line
> 2a.
>
> **b.** []{#CostCeiling .anchor}**Cost Ceiling.** If the solicitation
> includes a material and supply cost ceiling, agency and public
> reimbursable sources shall include this ceiling cost in cost estimates
> and enter the cost on Line 2 or Line 2a, as appropriate. If a
> solicitation does not include a material and supply cost ceiling,
> agency and public reimbursable sources shall calculate the full cost
> of materials and supplies, including inflation if required, and enter
> these costs on Line 2 or 2a, as appropriate.
>
> **c.** []{#MaterialRelatedCosts .anchor}**Material Related Costs.**
> Agency and public reimbursable sources shall list required material by
> the quantity needed, unit price, inflation for out-years, and enter
> the total cost in cost estimates on Line 2 or Line 2a, as appropriate.
> Material costs include, but are not limited to, material, transport,
> handling, availability, delay costs, and established allowances for
> normal scrap, spoilage, overruns and defective work. Agency and public
> reimbursable sources may make a single entry for miscellaneous items
> such as office supplies in cost estimates.
>
> **d.** []{#InflationMaterialAndSupplies .anchor}**Inflation.** Agency
> and public reimbursable sources shall calculate an estimate for
> material and supply costs in cost estimates for all performance
> periods, including adjustments for non-pay inflation identified in the
> annual update of non-pay inflation factors issued by an OMB
> Transmittal Memorandum. Agency and public reimbursable sources shall
> calculate unit prices to the end of the first period of full
> performance and inflate and/or prorate the cost of materials and
> supplies in the cost estimate in accordance with instructions in the
> solicitation. Agency and public reimbursable sources shall review
> section B (Supplies or Services and Prices) and any special clauses in
> section H (Special Contract Requirements) of the solicitation to
> determine if an economic price adjustment applies to materials and
> supplies. If materials and supplies listed in section B are subject to
> an economic price adjustment, agency and public reimbursable sources
> shall inflate these costs through the end of the first period of full
> performance in cost estimates. If materials and supplies listed in
> section B are not subject to an economic price adjustment, agency and
> public reimbursable sources shall inflate these costs by applying the
> applicable inflation factors (if any) for all performance periods
> through the end of the last performance period stated in the
> solicitation. If fuel costs are entered on Line 2 or Line 2a, the
> fuels (non-pay) inflation cost factor shall be used to apply inflation
> to the fuel costs.
>
> **4.** []{#OtherSpecificallyAttributableCostsLine3 .anchor}**Other
> Specifically Attributable Costs (SCF/SLCF Line 3/3a).** Other
> specifically attributable costs in an agency cost estimate shall be
> entered on SCF Line 3 for a standard competition or SLCF Line 3 for a
> streamlined competition. Other specifically attributable costs in a
> public reimbursable cost estimate shall be entered on SCF Line 3a for
> a standard competition or SLCF Line 3a for a streamlined competition.
> Agency and public reimbursable sources shall include sufficient
> written documentation for all other specifically attributable costs
> included in cost estimates for the CO to conduct price analysis and
> cost realism as required by Attachment B. Agencies and public
> reimbursable cost estimates shall calculate other specifically
> attributable costs as follows:
>
> **a.** []{#Depreciation .anchor}**Depreciation.** Agency and public
> reimbursable sources shall use the Useful Life and Disposal Value
> Table to calculate residual value, and The Federal Accounting
> Standards for Property, Plant and Equipment (both documents are posted
> on the OMB website) to establish depreciation schedules, rates of
> depreciation, and other related guidance. If a capital asset is (1)
> fully depreciated; (2) used in the tender; and (3) not provided to all
> prospective providers as GFP in the solicitation, agency and public
> reimbursable sources shall extend the life of the capital asset for
> all performance periods through the end of the last performance period
> stated in the solicitation or until replacement. Agency and public
> reimbursable sources shall calculate the depreciation using the
> extended life and original acquisition cost. If a capital asset
> involves a capital improvement, agency and public reimbursable sources
> shall calculate the cost of the capital improvement as a separate
> asset in cost estimates and enter this cost on Line 3 or 3a, as
> appropriate. The cost of capital improvements shall be entered as a
> separate asset entry because capital improvement costs are depreciated
> from the date of the capital improvement, not from the original
> acquisition date. The total depreciable acquisition cost is the sum of
> the capital asset's acquisition, transportation, and installation
> costs minus the capital asset's residual value. COMPARE automatically
> computes the costs required for this entry based upon the cost data
> entered for this line.
>
> **(1)** []{#DepreciationMinorItems .anchor}**Minor Items.** Minor
> items are individual assets costing less than \$25,000. Agency and
> public reimbursable sources shall not depreciate minor items in cost
> estimates.
>
> **(2)** []{#DepreciationCapitalAssets .anchor}**Capital Assets.**
> Capital assets are major items costing \$25,000 or more. An agency
> shall depreciate capital assets not provided to all prospective
> providers as GFP in the solicitation and enter the depreciation cost
> on Line 3 or 3a, as appropriate. If a capital asset is (a) to be
> jointly used in the agency tender (e.g., MEO) and another agency
> activity that is not included in the streamlined or standard
> competition, and (b) not provided to all prospective providers as GFP
> in the solicitation, an agency shall prorate the cost of this joint
> usage of the capital asset on Line 3. For capital assets not provided
> as GFP but needed to meet the requirements of the solicitation, a
> public reimbursable source shall calculate depreciation costs for
> major items in the cost estimate and enter the cost on Line 3a
> beginning with the first performance period the major item is required
> and all subsequent performance periods stated in the solicitation.
> COMPARE automatically computes the costs required for this entry based
> upon the cost data entered for this line.
>
> **(3)** []{#CalculationMethod .anchor}**Calculation Method.** Agency
> and public reimbursable sources shall calculate depreciation using
> straight line accounting methods and enter this depreciation on Line 3
> or Line 3a, as appropriate, as annual depreciation for each
> performance period stated in the solicitation. If a major item was
> acquired through transfer, seizure or forfeiture, an industry specific
> standard or engineering appraisal may be used to establish the market
> or \"acquisition\" value of the asset. COMPARE automatically computes
> the costs required for this entry based upon the cost data entered for
> this line.
>
> **b.** []{#Facilities .anchor}**Facilities.** If facilities are not
> provided to all prospective providers as GFP in the solicitation, an
> agency shall use the useful life expectancies listed by type of
> facility in Figure C4. to estimate the cost of facilities in the
> agency cost estimate and enter this cost on Line 3 or 3a, as
> appropriate. If the useful life has been exceeded, an agency shall use
> an engineering projection of anticipated remaining useful life. An
> agency shall prorate these costs in the agency cost estimate by a unit
> of measure that varies directly with consumption (e.g., floor space,
> type of facility, number of telephones). An agency shall base
> estimates of expenses to be incurred for the first period of full
> performance on recent experience, appropriately adjusted for
> anticipated requirements. An agency shall use engineering estimates
> when historical data is not available. If an asset such as a facility
> has a capital improvement (such as renovation), an agency shall
> calculate the cost of the capital improvement (renovation costs) as a
> separate asset in the agency cost estimate. The cost of capital
> improvements is calculated as a separate asset because the capital
> improvement costs (renovation costs) are depreciated from the date of
> the capital improvement (renovation) not the original acquisition or
> construction date. An agency shall include costs for facilities and
> equipment used in the agency tender, but not provided to all
> prospective providers as GFP in the solicitation, on Line 3. For
> facilities not provided as GFP but needed to meet the requirements of
> the solicitation, a public reimbursable source shall calculate
> facilities costs in accordance with this paragraph, reflect these
> costs in the cost estimate, and enter the costs on Line 3a. COMPARE
> automatically computes the costs required for this entry based upon
> the cost data entered for this line.

  -----------------------------------------------------------------------
  **Table of Facility Useful Life    
  Expectancies**                     
  ---------------------------------- ------------------------------------
  **Facility Category**              **Useful Life**

  Permanent                          75 years

  Semi-Permanent                     50 years

  Temporary                          25 years
  -----------------------------------------------------------------------

[]{#FigureC4 .anchor}**Figure C4.**

> **c.** []{#CostOfCapital .anchor}**Cost of Capital.** An agency shall
> only calculate the cost of capital for capital assets included in the
> agency cost estimate if the item is (1) not provided to all
> prospective providers as GFP in the solicitation, and (2) scheduled
> for purchase within any of the performance periods stated in the
> solicitation. An Agency shall enter the appropriate cost of capital
> costs on Line 3. To estimate the annual cost of capital, an agency
> shall first identify the total depreciable acquisition cost of new
> purchased capital assets or the market value of capital assets
> acquired by transfer, forfeiture or seizure. An agency shall base the
> total depreciable acquisition cost on the value of the capital asset,
> plus transportation costs (if not already included in the purchase
> price) and installation costs to place the capital asset in operation
> minus any applicable residual value. An agency shall compute the cost
> of capital by applying the applicable nominal rate (cost of capital
> factors) provided by OMB Circular A-94, *Guidelines for Discount Rates
> for Benefit-Cost Analysis of Federal Programs*, to the determined
> total depreciable acquisition cost of the purchased capital assets or
> to the market value of capital assets acquired by transfer, forfeiture
> or seizure. If a major item is to be jointly used between the tender
> (e.g., MEO) and another agency activity that is not included in the
> streamlined or standard competition, an agency shall prorate the
> capital asset's cost of capital on Line 3 based on the percentage used
> by the agency. For capital assets not provided to all prospective
> providers as GFP in the solicitation, but needed to meet the
> requirements of the solicitation, a public reimbursable source shall
> calculate the cost of capital in accordance with this paragraph,
> reflect this cost in the cost estimate, and enter the costs on Line
> 3a. COMPARE automatically computes the costs required for this entry
> based upon the cost data entered for this line.
>
> **d.** []{#Rent .anchor}**Rent.** If rented or leased assets are used
> in the agency tender but are not provided to all prospective providers
> as GFP in the solicitation, an agency shall calculate rental and lease
> costs in the agency cost estimate and enter the cost on Line 3. Rent
> is incurred for, but not limited to, the use, operation and
> maintenance of land, building space, plant and machinery. An agency
> shall calculate rental or lease costs that are associated with the
> agency tender on an allocated basis for all performance periods for
> which the costs will be incurred. For rent not provided as GFP but
> needed to meet the requirements of the solicitation, a public
> reimbursable source shall calculate rental and/or lease costs in
> accordance with this paragraph, reflect these costs in the cost
> estimate, and enter the costs on Line 3a. Agencies shall determine and
> manually input the cost data for this cost entry into COMPARE.
>
> **e.** []{#Utilities .anchor}**Utilities.** If utilities are provided
> for the agency tender but are not provided for all prospective
> providers as GFP in the solicitation, an agency shall calculate and
> enter the cost of utilities on Line 3. Utility costs include, but are
> not limited to, electricity, telephone, water, and sewage services. An
> agency shall calculate the amount of these utility costs on an
> allocated or a metered basis for all performance periods for which
> costs will be incurred. For utilities not provided as GFP but needed
> to meet the requirements of the solicitation, a public reimbursable
> source shall calculate costs for utilities in accordance with this
> paragraph, reflect these costs in the cost estimate, and enter the
> costs on Line 3a. Agencies shall determine and manually input the cost
> data for this cost entry into COMPARE.
>
> **f.** []{#Insurance .anchor}**Insurance.**
>
> **(1)** []{#CasualtyInsurance .anchor}**Casualty Insurance.** Agency
> and public reimbursable sources shall calculate casualty insurance
> premiums in cost estimates and enter these costs on Line 3 or Line 3a
> as appropriate for all materials and supplies, minor items, and
> capital assets that are not provided to all prospective providers as
> GFP in the solicitation, or if the solicitation includes terms that
> specify that property losses may be assessed to private sector
> sources. Agency and public reimbursable sources shall calculate
> casualty insurance premiums for capital assets by multiplying the net
> book value of each capital asset as of the beginning of each
> performance period that the agency will use the capital asset by 0.005
> (the casualty insurance cost factor). Agency and public reimbursable
> sources shall calculate casualty insurance premiums for minor items
> not provided to all prospective providers by multiplying the annual
> cost, inflated as appropriate, of each minor item by 0.005 (the
> casualty insurance cost factor). Agency and public reimbursable
> sources shall calculate casualty insurance premiums for materials and
> supplies by multiplying a one-month average value of material and
> supplies by 0.005 (the casualty insurance cost factor) times a
> one-month average value of material and supplies. Agency and public
> reimbursable sources shall calculate casualty insurance premiums for
> each performance period that they will use the capital assets, minor
> items, materials, and supplies. COMPARE automatically calculates this
> entry if the items are not government furnished. Agencies shall
> determine and manually input the cost data into COMPARE for
> solicitations that specify that property losses may be assessed to
> private sector sources.
>
> **(2)** []{#GFPCasualtyInsurance .anchor}**Government Furnished
> Property (GFP) Casualty Insurance.** While the FAR includes many GFP
> clauses that may be included in a solicitation, the following table
> provides an extract of FAR GFP clauses that a solicitation is likely
> to contain for a standard competition. The GFP clause, included in the
> solicitation, determines whether casualty insurance costs for GFP
> should be included on Line 3 or Line 3a, as appropriate. For
> solicitations that include both firm-fixed-price and cost
> reimbursement CLINs in section B, the solicitation identifies the GFP
> clause that applies to a specific CLIN. For example, the solicitation
> may apply FAR clause 52.245-5 to the material and supply ceiling cost,
> indicating that insurance is not required for the material and supply
> dollars. The same solicitation may designate FAR clause 52.245-2 to
> GFP vehicles, indicating that the vehicles require casualty insurance.
> When vehicles leased from the General Services Administration are used
> in the agency tender but are not provided to all prospective providers
> as GFP in the solicitation, an agency shall include the cost of
> casualty insurance on Line 3 if the General Services Administration
> lease terms make the lessee liable for vehicle damage. Based upon the
> FAR provisions included in the solicitation, agencies may be required
> to determine and manually input the cost data into COMPARE.

  -----------------------------------------------------------------------------------
  **GFP Clauses                                                         
  and Casualty                                                          
  Insurance                                                             
  Requirements**                                                        
  ---------------- ---------------------- --------------- ------------- -------------
  **FAR            **Liability Assigned   **Is GFP                      
  Reference**      to Private Sector and  Casualty                      
                   Public Reimbursable    Insurance                     
                   Sources**              Required in the               
                                          Agency Cost                   
                                          Estimate?**                   

                                          **Materials**   **Capital     **Minor
                                                          Assets**      Items**

  52.245-2         Yes                    Yes             Yes           Yes

  52.245-2 Alt I   No                     No              No            No

  52.245-4         Yes                    Yes             Yes           Yes

  52.245-5         No                     No              No            No
  -----------------------------------------------------------------------------------

[]{#FigureC5 .anchor}**Figure C5.**

> **(3)** []{#LiabilityInsurance .anchor}**Liability Insurance.** Agency
> and public reimbursable sources shall calculate the cost of personnel
> liability insurance in cost estimates and enter the cost on Line 3 or
> Line 3a, as appropriate. Agency and public reimbursable sources shall
> calculate the cost of personnel liability insurance by multiplying the
> total personnel-related costs on Line 1 (or Line 1a, as appropriate)
> by 0.007 (the personnel liability insurance cost factor). Agency and
> public reimbursable sources shall calculate the cost of additional
> liability insurance (not associated with personnel liability) that is
> assigned to the private sector in the solicitation by multiplying the
> estimated liability ceiling identified in the solicitation by 0.007
> (the personnel liability insurance cost factor). If the solicitation
> requires additional liability insurance to cover certain high-risk
> activities (e.g., environmental, air traffic control, child care,
> ammunition handling, air cargo, nuclear fuel handling), agency and
> public reimbursable sources shall calculate the cost of this
> additional liability insurance in cost estimates and enter this cost
> on Line 3 or Line 3a, as appropriate. COMPARE automatically calculates
> this entry.
>
> **g.** []{#Travel .anchor}**Travel.** Agency and public reimbursable
> sources shall calculate the costs for travel not provided as
> government furnished to all prospective providers in the solicitation
> and enter these costs on Line 3 or Line 3a, as appropriate. Agency and
> public reimbursable sources shall calculate the projected cost of
> travel that will be expended by agency or public reimbursable sources
> and identified in tenders unless the solicitation includes a ceiling
> cost for travel reimbursement or states that travel is
> government-furnished for all prospective providers. If the
> solicitation includes a cost ceiling for travel, agency and public
> reimbursable sources shall include the cost ceiling in cost estimates
> and enter the cost on Line 3 or Line 3a, as appropriate. Unless a cost
> ceiling is provided, agency and public reimbursable sources shall
> inflate travel costs for all performance periods through the end of
> the last performance period stated in the solicitation or as required
> by the economic price adjustment clause in the solicitation. Agencies
> shall determine and manually input the cost data for this cost entry
> into COMPARE.
>
> **h.** []{#MEOSubcontracts .anchor}**MEO Subcontracts.** Agency and
> public reimbursable sources shall include the cost of each subcontract
> included in a tender but not made available to all prospective
> providers in the solicitation as a subcontract in cost estimates and
> enter the costs on Line 3 or Line 3a, as appropriate. Agency and
> public reimbursable sources shall calculate the total cost of a
> subcontract by including the following in cost estimates (1) the
> contract price for each contract, or cost estimate for each
> fee-for-service agreement; (2) the cost of any related
> government-furnished material**,** equipment, facilities, and services
> not provided to all prospective providers as GFP in the solicitation;
> (3) inflation for all performance periods through the end of the last
> performance period stated in the solicitation, as appropriate; and (4)
> the offset for federal income tax for each subcontract with the tax
> rate applicable to each subcontract (see paragraph C12. in this
> attachment). Agencies shall determine and manually input the cost data
> for this cost entry into COMPARE. COMPARE automatically computes the
> applicable inflation and federal income tax offset.
>
> **(1)** []{#NonrecurringWorkload .anchor}**Nonrecurring Workload.**
> Agency and public reimbursable sources may calculate overtime and
> surge or other types of nonrecurring workload as an MEO subcontract
> cost, if the services are purchased using either a government purchase
> card or a task order under an existing contract. When purchasing
> services with a government purchase card or task order under an
> existing contract, agencies and public reimbursable sources shall
> calculate the cost of the purchased services in the cost estimate and
> include (a) the offset for federal income tax for each subcontract
> with the tax rate applicable to each subcontract (see the "Federal
> Income Tax Adjustment" paragraph in this attachment), and (b)
> inflation for all performance periods through the end of the last
> performance period stated in the solicitation, as appropriate.
>
> **(2)** []{#AdministrationSurveillanceSubcontracts
> .anchor}**Administration and Surveillance of Subcontracts.** Agencies
> and public reimbursable sources shall calculate the cost of labor for
> (a) the administration and surveillance for each subcontract (for both
> recurring and nonrecurring workload); and (b) administration of the
> government purchase card program.
>
> **i.** []{#MaintenanceAndRepairCosts .anchor}**Maintenance and Repair
> Costs**. Agency and public reimbursable sources shall calculate the
> cost of maintenance and repair, if applicable, for capital assets and
> minor items to account for the cost of routine maintenance on
> buildings and for equipment and enter these costs on Line 3 or 3a, as
> appropriate. These costs do not include capital improvements that add
> value to a capital asset, which are calculated in depreciation costs.
> Agency and public reimbursable sources shall calculate maintenance and
> repair costs (1) for capital assets and minor items that are not
> provided to all prospective providers as GFP in the solicitation, and
> (2) for capital assets or minor items that are provided to all
> prospective service providers as GFP in the solicitation but
> maintenance, replacement, or repair are not provided as GFP in the
> solicitation. Agencies shall determine and manually input the cost
> data for this cost entry into COMPARE.
>
> **j. Other Costs.** Agencies and public reimbursable sources shall
> include costs that do not fit the other Line 3 or Line 3a categories
> of cost in the "other costs" category of Line 3 or Line 3a. Examples
> of \"other costs\" include, but are not limited to, purchased services
> for packaging and crating (if not already a included in the cost of
> material and supplies), transportation costs; royalties, overhead
> projectors, office equipment, tools, chairs, desks, and cabinets.
>
> **(1)** []{#MinorItems .anchor}**Minor Items.** As part of "other
> costs," agencies shall include 10 percent of the replacement cost of
> minor items not provided to all prospective providers as GFP in the
> solicitation, for each performance period included in the
> solicitation. If the minor item is (a) to be jointly used by the
> agency tender (e.g., MEO) and another agency activity that is not
> included in the streamlined or standard competition, and (b) not
> provided to all prospective providers as GFP in the solicitation, an
> agency shall prorate the cost of this joint usage of a minor item on
> Line 3 based upon 10 percent of the purchase price. For minor items
> not provided as GFP but needed to meet the requirements of the
> solicitation, a public reimbursable source shall calculate 10 percent
> of the replacement value of the minor items in the cost estimate and
> enter the cost on Line 3a, beginning with the first performance period
> the public reimbursable source expects to replace the minor item and
> for all subsequent performance periods stated in the solicitation. For
> minor items, and any necessary replacements, that are provided as GFP
> in the solicitation, agencies and public reimbursable sources shall
> not include costs. When minor items are provided as GFP and
> prospective providers are responsible for replacement, agencies and
> public reimbursable sources shall include 10 percent of the
> replacement cost of the minor items in cost estimates, beginning with
> the first performance period where replacement of the minor item is
> required and all subsequent performance periods stated in the
> solicitation. Agencies and public reimbursable sources shall include
> costs for casualty insurance of minor items that are not GFP,
> including instances where the replacement of the minor items is the
> responsibility of prospective providers. Agencies shall determine and
> manually input the cost data for this SCF/SLCF line into COMPARE.
> COMPARE automatically computes the 10 percent minor item replacement
> cost.
>
> **(2)** []{#AwardFeeLine3 .anchor}**Award Fee.** Before a solicitation
> may include an award fee for an agency source (in addition to other
> prospective providers), the CSO shall determine if an agency source
> may receive such an award fee. If the award fee arrangements are
> approved by the CSO and the solicitation states that the award fee
> will be available for all prospective providers, the agency shall
> include the award fee in the cost estimate and enter the fee on Line 3
> as "other costs." A public reimbursable source shall include the award
> fee in the cost estimate and enter the fee on Line 3a as "other
> costs." Agency and public reimbursable sources shall not inflate the
> cost of the award fee in cost estimates. Agency and public
> reimbursable sources shall not inflate the cost of the award fee in
> cost estimates. Agencies shall determine and manually input the cost
> data for this cost entry into COMPARE.
>
> **(3)** []{#TrainingCosts .anchor}**Training Costs.** Agency and
> public reimbursable sources shall calculate training costs for
> training not made available as government furnished to all prospective
> providers in the solicitation and enter these costs on Line 3 or 3a,
> as appropriate. Agency and public reimbursable sources shall calculate
> training costs, including travel costs, for recurring and/or
> specialized training necessary to maintain required licensing or
> certification. Agencies shall determine and manually input the cost
> data for this cost entry into COMPARE.
>
> **5.** []{#OverheadLine4 .anchor}**Overhead (SCF/SLCF Line 4/4a).**
> Agency and public reimbursable sources shall enter overhead in cost
> estimates on Line 4 or 4a, as appropriate. An agency shall include
> overhead for a standard or streamlined competition by overhead for
> each performance period by multiplying the SCF Line 1 civilian
> position costs, including fringe benefits, by 12 percent (the overhead
> factor). A public reimbursable cost estimate shall include overhead
> for a streamlined or standard competition by calculating overhead for
> each performance period by multiplying the SCF Line 1a civilian
> position costs, including fringe benefits, by 12 percent (the overhead
> factor). Agency and public reimbursable sources shall not calculate
> overhead for uniformed services labor costs. COMPARE automatically
> calculates this SCF/SLCF line.
>
> **6.** []{#AdditionalCostsLine5 .anchor}**Additional Costs (SCF Line
> 5/5a).** This SCF line includes costs not otherwise represented or
> accounted for on Lines 1-4 or Lines 1a-4a. An agency shall enter
> additional costs on SCF Line 5. A public reimbursable source shall
> enter additional costs on SCF Line 5a. Additional costs include, but
> are not limited to, costs resulting from unusual or special
> circumstances. When these costs are included the source shall provide
> additional documentation to explain the underlying assumptions and
> methods of computation. Agency and public reimbursable sources shall
> include sufficient written documentation of all additional costs
> included in cost estimates for the CO to conduct price analysis and
> cost realism as required by Attachment B. Agencies and public
> reimbursable sources shall not use Line 5 or Line 5a in a streamlined
> competition. Agencies shall determine and manually input the cost data
> for this SCF/SLCF line into COMPARE.
>
> **a.** []{#ExpansionsExistingActivities .anchor}**Expansions of
> Existing Activities, New Requirements, or Conversions From Private
> Sector to Agency Performance.** An agency shall enter the one-time
> additional costs of an expansion, new requirement or conversion from a
> private sector or public reimbursable source to agency performance on
> Line 5. An agency shall not include any new investment by the agency
> in facilities and equipment as one-time costs. An agency shall include
> the costs incurred when acquiring facilities or equipment and
> installing the equipment in the capitalized cost. Government
> facilities and equipment shall not normally be expanded to accommodate
> new or expanded agency requirements if cost-effective private sector
> or public reimbursable facilities and equipment are available. If the
> agency tender is dependent upon the agency's purchase or construction
> of new facilities or other capital asset purchases, the standard
> competition should be delayed until the approval to purchase or
> construct such items is obtained.
>
> **b.** []{#MedicalPhysicalExams .anchor}**Medical Physical Exams.**
> Agency and public reimbursable sources shall calculate the costs
> associated with the civilian safety and health requirements of 29
> C.F.R., including medical physical examinations, and enter these costs
> on Line 5 or 5a, as appropriate. The cost of performing medical
> physical exams is not included in the 12 percent overhead factor.
> These medical physical exams are a direct cost to all prospective
> providers.
>
> **7.** []{#TotalCostAgencyPerformanceLine6 .anchor}**Total Cost of
> Agency Performance (SCF/SLCF Line 6/6a).** The total agency cost
> estimate calculated on Line 6 is the sum of Lines 1-5. The total
> public reimbursable cost estimate calculated on Line 6a is the sum of
> Lines 1a-5a. COMPARE automatically calculates this SCF/SLCF line.

**C.** []{#ADJUSTEDCOSTPRIVATESECTORorPUBLIC .anchor}**[Adjusted Cost of
Private Sector or Public Reimbursable Performance (SCF/SLCF Lines
7-13)]{.underline}.**

> **1.** []{#ContractPricePublicReimCostLine7 .anchor}**Contract Price
> or Public Reimbursable Cost Estimate (SCF/SLCF Line 7).** In a
> standard competition, the CO shall enter the private sector contract
> price(s), or public reimbursable cost estimate(s) on SCF Line 7, as
> appropriate. In a streamlined competition, the agency shall enter an
> estimated contract price or public reimbursable cost estimate on SLCF
> Line 7.
>
> **a.** []{#ContractPrice .anchor}**Contract Price.** If a contract
> price(s) is entered on Line 7, the CO shall comply with the source
> selection process requirements in Attachment B and shall determine the
> contract price based on the contract type stated in the solicitation.
>
> **(1)** []{#SealedBidAcquisitionLine7 .anchor}**Sealed Bid
> Acquisition.** The CO shall enter the firm fixed price of the low
> responsible, responsive private sector offeror on Line 7.
>
> **(2)** []{#NegotiatedAcquisitionLine7 .anchor}**Negotiated
> Acquisition.**
>
> **(a)** []{#FirmFixedPriceContract .anchor}**Firm Fixed Price
> Contract.** The CO shall enter the negotiated contract price on SCF
> Line 7.
>
> **(b)** []{#FirmFixedPriceIncentiveFeeContract .anchor}**Firm Fixed
> Price Incentive Fee Contract.** The CO shall enter the target cost and
> target profit on SCF Line 7.
>
> **(c)** []{#CostReimbursementContracts .anchor}**Cost-Reimbursement
> Contracts (FAR 16.3).**
>
> **[1.]{.underline}** []{#CostPlusIncentiveFeeContract .anchor}**Cost
> Plus Incentive Fee Contract.** The CO shall enter the negotiated
> estimated cost plus incentive fee.
>
> **[2]{.underline}.** []{#CostPlusAwardFeeContract .anchor}**Cost Plus
> Award Fee Contract.** The CO shall enter the negotiated estimated cost
> plus award fee.
>
> **[3.]{.underline}** []{#CostPlusFixedFeeContract .anchor}**Cost Plus
> Fixed Fee Contract.** The CO shall enter the negotiated estimated cost
> plus fixed fee.
>
> **[4.]{.underline}** []{#CostSharingContract .anchor}**Cost Sharing
> Contract.** The CO shall enter the negotiated estimate.
>
> **b.** []{#PublicReimbursableCostEstimateLine7 .anchor}**Public
> Reimbursable Cost Estimate.** If a cost estimate is submitted by a
> public reimbursable source(s), the CO shall make the following
> calculations to determine the cost to enter on SCF/SLCF Line 7 (1)
> calculate the federal tax adjustment for any private sector contract
> price(s); (2) subtract this federal tax calculation from the private
> sector contract price(s); (3) compare these adjusted private sector
> contract price(s), with all public reimbursable cost estimate(s) to
> determine the lowest cost provider; and (4) enter the lowest cost on
> SCF/SLCF Line 7. The CO shall enter the cost estimate submitted by a
> tax exempt organization on SCF/SLCF Line 7 only if the calculations
> required by this paragraph indicate the tax exempt organization is the
> lowest cost provider. The CO shall document these calculations as part
> of the SCF supporting documentation.

c.  []{#TaxExemptOrganization .anchor}**Tax-Exempt Organization.** If a
    cost estimate is submitted by a tax-exempt organization(s), the CO
    shall make the following calculations to determine the cost to enter
    on SCF/SLCF Line 7 (1) calculate the federal tax adjustment for any
    non-tax-exempt contract price(s); (2) subtract this federal tax
    calculation from non-tax-exempt contract price(s); (3) compare these
    adjusted private sector contract price(s), with any tax-exempt
    organization(s) cost estimates and any public reimbursable cost
    estimate(s) to determine the lowest cost provider; and (4) enter the
    lowest cost on SCF Line 7. The CO shall enter the cost estimate
    submitted by a tax exempt organization on SCF/SLCF Line 7 only if
    the calculations required by this paragraph indicate the tax exempt
    organization is the lowest cost provider. The CO shall document
    these calculations as part of the SCF supporting documentation.

> **d.** []{#PerformanceBondLine7 .anchor}**Performance Bond.** When a
> solicitation requires private sector sources to provide a performance
> bond, the CO shall exclude the cost from the private sector source's
> contract price on SCF Line 7. The solicitation bid structure should
> facilitate the elimination of this cost (see Attachment B).
>
> **2.** []{#ContractAdministrationCosts .anchor}**Contract
> Administration Costs (SCF/SLCF Line 8).** An agency shall calculate
> and enter contract administration costs on Line 8 using the Contract
> Administration Cost Factors and Allowable Grades in Figure C6. based
> on the total MEO staffing (total Line 1 FTEs plus an estimate of labor
> for MEO subcontracts).  These contract administration cost factors
> account for a full range of labor and non-labor requirements for
> contract administration. Contract administration costs include the
> costs associated with reviewing compliance with the terms of the
> contract, processing payments, negotiating change orders, and
> monitoring the closeout of contract operations.  An agency shall not
> include the cost of surveillance performed by quality assurance
> evaluators, as required by the quality assurance surveillance plan, on
> SCF Line 8, since these are common costs regardless of the source of
> the selected service provider (i.e., agency, public reimbursable,
> private sector). Agencies shall inflate contract administration costs
> using the Labor Inflation Cost Factors for Civilian Positions in
> Figure C1. COMPARE automatically computes the costs required for this
> SCF/SLCF line based on the factors in Figure C6. and agencies shall
> not include any other contract administration costs**.**

  -------------------------------------------------------------------------------------------
  **Contract                                                                       
  Administration                                                                   
  Factors** **and                                                                  
  Allowable                                                                        
  Grades**                                                                         
  ----------------- ----------------------- --------------- ----------- ---------- ----------
  **MEO             **CONTRACT              **GRADES**                             
  STAFFING\***      ADMINISTRATION FTE**                                           

                                            **GS-12**       **GS-11**   **GS-9**   **GS-6**

  10 or less        .5                      1               0           0          0

  11 -- 20          1                       1               0           0          0

  21 -- 50          2                       1               1           0          0

  51 -- 75          3                       1               1           1          0

  76 -- 100         4                       1               1           1          1

  101 -- 120        5                       1               1           2          1

  121 -- 150        6                       1               2           2          1

  151 -- 200        7                       1               2           2          2

  201 -- 250        8                       2               2           2          2

  251 -- 300        9                       2               2           3          2

  301 -- 350        10                      2               3           3          2

  351 -- 450        11                      2               3           4          2

  451 and above     2.5% of agency MEO      Distribution                           
                    staffing                automatically                          
                                            calculated by                          
                                            *COMPARE*                              
  -------------------------------------------------------------------------------------------

> []{#FigureC6 .anchor}**Figure C6.**
>
> **3.** **Additional Costs (SCF Line 9).** SCF Line 9 shall include any
> additional costs to the agency, such as transportation or purchased
> services, resulting from unusual or special circumstances. An agency
> shall document these additional costs to describe the nature of the
> cost item, and indicate the reason the additional cost will not be
> incurred if the activity is performed by the agency source. When
> performance of an activity is converted from agency performance to
> either a private sector or public reimbursable source and the agency
> elects to retain existing equipment and facilities on standby, solely
> for the purpose of maintaining an agency performance capability, an
> agency shall not add these standby costs to the cost of the private
> sector or public reimbursable performance on SCF Line 9. An agency
> source shall include sufficient written documentation of all
> additional costs included in cost estimates for the CO to conduct
> price analysis and cost realism as required by Attachment B. Agencies
> shall not calculate Line 9 in a streamlined competition. Agencies
> shall determine and manually input the cost data for this SCF/SLCF
> line into COMPARE.
>
> **a.** []{#NonprofitAgencyFees .anchor}**Nonprofit Agency Fees.** When
> a Javits-Wagner-O\'Day participating nonprofit agency (as defined by
> FAR Part 8), such as NISH or the National Institute for the Blind,
> participates in a standard competition, the CO shall include the 4
> percent fee paid to the Committee for Purchase from People Who Are
> Blind, NISH, or National Institute for the Blind on SCF Line 9. The CO
> shall determine if the 4 percent is included in or excluded from the
> contract price. If the 4 percent is included in the contract price,
> the CO shall enter the contract price on SCF Line 7 and shall not
> enter the 4 percent on SCF Line 9. If the 4 percent is excluded from
> the contract price, the CO shall enter the contract price on SCF Line
> 7 and shall enter the 4 percent fee on SCF Line 9.
>
> **b.** **Incentive Fees.** When an Indian Tribe competes as a private
> sector source in a standard competition, or is a subcontractor to a
> competing private sector source, and the Indian Incentive Program
> described in FAR Part 26 is authorized, the CO shall include the 5
> percent incentive fee identified in FAR Part 26 on SCF Line 9.
>
> **4.** []{#OneTimeConversionCosts .anchor}**One-time Conversion Costs
> (SCF Line 10).** When an agency converts an activity performed by
> government personnel to a private sector or public reimbursable
> source, one-time conversion costs may be incurred by the agency. An
> agency source shall include sufficient written documentation of all
> one-time conversion costs included in cost estimates for the CO to
> conduct price analysis and cost realism as required by Attachment B.
> Agencies shall not calculate Line 10 in a streamlined competition.
> Agencies shall calculate one-time conversion costs for severance costs
> and other costs as provided below and shall not calculate any other
> one-time conversions costs. COMPARE automatically calculates this
> SCF/SLCF line.
>
> **a.** []{#SeveranceCosts .anchor}**Severance Costs.** An agency shall
> calculate one-time conversion costs for severance pay at 4 percent
> (the Severance Pay One-time Conversion Cost Factor) of SCF Line 1
> basic pay, adjusted for inflation, for the first period of full
> performance (not the phase-in period) stated in the solicitation. If
> the first period of full performance is less than one full year, an
> agency shall annualize the basic pay only for the purpose of
> determining one full year of severance pay one-time conversion costs.
>
> **b.** []{#OtherCostsLine10 .anchor}**Other Costs.** An agency shall
> calculate other one-time conversion costs as 1 percent (the Other Pay
> One-time Conversion Cost Factor) of SCF Line 1 basic pay, adjusted for
> inflation, for the first period of full performance stated in the
> solicitation (not the phase-in period). Agencies shall not calculate
> any other one-time conversion costs except this 1 percent. This "other
> cost" accounts for all other one-time conversion costs such as
> relocation and retraining. If the first period of full performance
> (not the phase-in period) is less than one full year, an agency shall
> annualize the basic pay only for the purpose of determining one full
> year of other pay one-time conversion costs.
>
> **c.** []{#AnnualizeBasicPay .anchor}**Annualize Basic Pay.** To
> annualize basic pay, divide the total inflated basic pay reflected in
> the first period of full performance on SCF Line 1 by the number of
> days in the second performance period and then multiply the result by
> 365.25 days (which accounts for leap year).
>
> **5.** []{#GainOnAssets .anchor}**Gain on Assets (SCF Line 11).** An
> agency shall calculate the estimated gain on assets on SCF Line 11,
> with supporting documentation to justify the type and calculation of
> asset disposal or transfer. The SCF Line 11 entry is the gain from the
> sale or transfer of government assets at the net book value of the
> asset as of the start date of the first performance period. An agency
> shall calculate this gain to account for government material or
> equipment included in the agency tender when this material or
> equipment (a) is not provided to all prospective providers as GFP in
> the solicitation and (b) is not needed by the agency if the standard
> competition results in either a private sector or public reimbursable
> performance decision. This gain on assets generates revenue for the
> government; therefore, the cost reduces the total cost of private
> sector or public reimbursable performance. An agency shall only enter
> a negative number or zero on SCF Line 11 to represent a gain on
> assets. An agency source shall include sufficient written
> documentation of all gain on assets costs included in cost estimates
> for the CO to conduct price analysis and cost realism as required by
> Attachment B. Agencies shall not calculate Line 11 in a streamlined
> competition. COMPARE automatically calculates this SCF/SLCF line after
> the agency manually selects the period in which the capital asset is
> disposed of or transferred.
>
> **6.** []{#FederalIncomeTaxAdjustment .anchor}**Federal Income Tax
> Adjustment (SCF/SLCF Line 12).** The cost entered on Line 12
> represents revenue generated for the government that is subtracted
> from the total cost of private sector performance. An agency shall
> only enter these costs as a negative number, unless the private sector
> source is a tax-exempt organization. When entering the contract price,
> the CO shall determine and enter the appropriate industry code from
> the Tax Rate Table, which is based on the North American Industry
> Classification System, to calculate Line 12. An agency shall use the
> Tax Rate Table on the OMB website to calculate Line 12 for each
> performance period stated in the solicitation. An agency shall enter
> on Line 12 the net increase of federal income tax that is expected if
> a performance decision results in a conversion from agency performance
> to private sector performance. The Internal Revenue Service provides
> the Tax Rate Table by types of industry and appropriate tax rates in
> relation to business receipts. The industry groupings are based on the
> North American Industry Classification System. COMPARE automatically
> calculates this SCF/SLCF line based on the tax rate table entry input
> by an agency.

+------------------+-----------------+---------------+-----------------+
| **[Gain on       |                 |               |                 |
| Capital Assets   |                 |               |                 |
| (Sample          |                 |               |                 |
| Calculation      |                 |               |                 |
| )]{.smallcaps}** |                 |               |                 |
+==================+=================+===============+=================+
| **(A) Capital    | **(B)Original   | **(C)         | **(D) Net Book  |
| Asset**          | Acquisition     | Accumulated   | Value**         |
|                  | Cost**          | D             |                 |
|                  |                 | epreciation** | **(B minus C)** |
+------------------+-----------------+---------------+-----------------+
| Capital          | \$30,000        | \$24,900      | \$5,100         |
| Equipment = Bus  |                 |               |                 |
+------------------+-----------------+---------------+-----------------+
| Capital Facility | \$625,000       | \$502,000     | \$123,000       |
| = Cafeteria      |                 |               |                 |
+------------------+-----------------+---------------+-----------------+
| **Column**       | *               |               |                 |
|                  | *Instructions** |               |                 |
+------------------+-----------------+---------------+-----------------+
| A. Capital Asset | Identify the    |               |                 |
|                  | name of each    |               |                 |
|                  | specific        |               |                 |
|                  | capital asset   |               |                 |
+------------------+-----------------+---------------+-----------------+
| B. Original      | Enter the       |               |                 |
| Acquisition Cost | original        |               |                 |
|                  | acquisition     |               |                 |
|                  | cost of the     |               |                 |
|                  | asset, plus     |               |                 |
|                  | transportation  |               |                 |
|                  | and             |               |                 |
|                  | installation    |               |                 |
|                  | costs if not    |               |                 |
|                  | included in the |               |                 |
|                  | purchase price, |               |                 |
|                  | plus any        |               |                 |
|                  | capital         |               |                 |
|                  | improvement     |               |                 |
|                  | costs made to   |               |                 |
|                  | that asset      |               |                 |
+------------------+-----------------+---------------+-----------------+
| C. Accumulated   | Enter the       |               |                 |
| Depreciation     | accumulated     |               |                 |
|                  | depreciation    |               |                 |
|                  | for the asset   |               |                 |
+------------------+-----------------+---------------+-----------------+
| D. Net Book      | Enter the net   |               |                 |
| Value            | book value at   |               |                 |
|                  | the date of the |               |                 |
|                  | first           |               |                 |
|                  | performance     |               |                 |
|                  | period. This is |               |                 |
|                  | the gain on     |               |                 |
|                  | asset cost      |               |                 |
|                  | entered on the  |               |                 |
|                  | SCF. The cost   |               |                 |
|                  | of disposal or  |               |                 |
|                  | transfer is not |               |                 |
|                  | included in the |               |                 |
|                  | net book value  |               |                 |
+------------------+-----------------+---------------+-----------------+

[]{#FigureC7 .anchor}**Figure C.7**

> **7.** []{#TotalAdjustedCostPrivateSectorPublicReim .anchor}**Total
> Adjusted Cost of Private Sector or Public Reimbursable Performance
> (SCF/SLCF Line 13).** In a standard competition, the cost on Line 13
> represents the total cost to the government of private sector
> performance (or public reimbursable performance if a public
> reimbursable cost estimate is entered on SCF Line 7), which is the sum
> of SCF Lines 7, 8, 9, 10, 11, and 12. In a streamlined competition,
> the cost on Line 13 represents the total cost to the government of
> private sector performance (or public reimbursable performance if a
> public reimbursable cost estimate is entered on SLCF Line 7), which is
> the sum of SLCF Lines 7, 8, and 12. COMPARE automatically calculates
> this SCF/SLCF line.

**D.** []{#CONVERSIONDIFFERENTIALline14 .anchor}**[Conversion
Differential (SCF Line 14)]{.underline}.** An agency shall calculate the
conversion differential by multiplying SCF Line 1 personnel costs for
all performance periods by 10 percent. If the calculated conversion
differential is less than \$10 million, the agency shall enter the
calculated conversion differential on Line 14. If the calculated
conversion differential is greater than or equal to \$10 million, the
agency shall enter \$10 million on Line 14. Agencies shall not calculate
Line 14 in a streamlined competition. COMPARE automatically calculates
this SCF/SLCF line.

> **1.** []{#ExpansionsNewRequirementsLine14 .anchor}**Expansions, New
> Requirements, or Conversions From Contract To Agency Performance.** An
> agency shall add the conversion differential to SCF Line 6 of the
> agency cost estimate when an agency is performing a standard
> competition and the potential exists for (a) a conversion from a
> private sector provider (contract performance) to agency performance
> with government personnel; (b) agency performance of a new requirement
> with government personnel; or (c) agency performance with government
> personnel of an expansion of requirements for an existing commercial
> activity. Since agency performance of a new requirement or an
> expansion of an existing commercial activity is justified based upon a
> standard competition, an agency shall calculate the conversion
> differential as if the private sector source is the incumbent provider
> for a new requirement or an expansion of an existing commercial
> activity. For a standard competition of an expansion, the conversion
> differential is distributed to agency, private sector, and public
> reimbursable sources based on the percentage of SCF Line 1 attributed
> to the expansion workload, as follows:
>
> **a.** []{#SegregableExpansionLine14 .anchor}**Standard Competition of
> a Segregable Expansion.** For a standard competition of the segregable
> 30 percent of an expansion, an agency shall add all of SCF Line 14
> (conversion differential) to the total cost of agency performance
> reflected on SCF Line 6 to generate the adjusted total cost of agency
> performance on SCF Line 15.
>
> **b.** []{#StandardCompetitionOfActivityAndExpansio .anchor}**Standard
> Competition of Activity and Expansion.** For a standard competition of
> an entire expansion of a commercial activity (i.e., the existing
> commercial activity performed by government positions plus the 30+
> percent expansion), an agency shall (1) multiply the conversion
> differential on SCF Line 14 by the percentage of government position
> costs on SCF Line 1 that represents the expansion of recurring
> workload; (2) add the result to the total cost of agency performance
> reflected on SCF Line 6; and (3) enter the adjusted total cost of
> agency performance on SCF Line 15. The agency shall (1) multiply the
> percentage of SCF Line 1 (personnel) costs that represents the agency
> work currently performed by SCF Line 14 (conversion differential); (2)
> add the result to the total cost of private sector or public
> reimbursable performance on SCF Line 13; and (3) enter the total
> adjusted cost of private sector or public reimbursable performance on
> SCF Line 16. The agency shall divide the total SCF Line 1 costs
> assigned to the expanded work for all performance periods by the total
> SCF Line 1 costs for all performance periods to generate the
> percentage of agency position costs for the expanded work. To generate
> the percentage of agency position costs for the work performed by the
> agency, the agency shall divide the total SCF Line 1 costs assigned to
> the work performed by the agency for all performance periods by the
> total SCF Line 1 costs for all performance periods.
>
> **2.** []{#PartialConversionFromPrivateSectorToAgen .anchor}**Partial
> Conversion From Private Sector to Agency Performance.** For a standard
> competition of a commercial activity where the incumbent providers are
> a combination of private sector and agency sources, and the agency
> tender converts the portion of the work performed by the private
> sector performance to agency performance using government positions,
> the agency shall apportion the conversion differential to each source
> based upon the percentage of work performed by each incumbent source
> at the time of public announcement. Therefore, an agency shall
> calculate the conversion differential as follows: (a) calculate the
> conversion differential for the agency tender, (b) calculate the value
> of the conversion differential for the work performed by the private
> sector that will be converted to agency performance using government
> positions, and (c) enter the difference on SCF Line 14. If the agency
> tender includes an MEO subcontract, the agency shall not calculate any
> conversion differential for the MEO subcontract on the SCF.

**E.** []{#ADJUSTEDTOTALCOSTOFAGENCYPERFORMANCEline .anchor}**[Adjusted
Total Cost of Agency Performance (SCF Line 15)]{.underline}.** If a
standard competition is conducted to determine whether a commercial
activity should be converted from private sector or public reimbursable
performance to agency performance, the agency shall add the conversion
differential from SCF Line 14 to SCF Line 6 and enter the sum on SCF
Line 15. The total amount for all performance periods on SCF Line 13 is
then replicated on SCF Line 16. Agencies shall not calculate Line 15 in
a streamlined competition. COMPARE automatically calculates this
SCF/SLCF line.

**F.** []{#ADJUSTEDTOTALCOSTPRIVATESECTORPublic .anchor}**[Adjusted
Total Cost of Private Sector or Public Reimbursable Performance (SCF
Line 16)]{.underline}.** If a standard competition is conducted to
determine whether an activity should be converted from agency
performance to private sector or public reimbursable performance, the
agency shall add the conversion differential from SCF Line 14 to SCF
Line 13 and enter the sum on SCF Line 16. The total amount for all
performance periods on SCF Line 6 is then replicated on SCF Line 15.
Agencies shall not calculate Line 16 in a streamlined competition.
COMPARE automatically calculates this SCF/SLCF line.

**G.** []{#THECOSTDIFFERENCEline17 .anchor}**[The CoSt difference
(SCF/SLCF LINE 17)]{.underline}.** In a standard competition, the agency
shall calculate the cost difference by subtracting SCF Line 15 from SCF
Line 16 and shall enter the sum on SCF Line 17. In a streamlined
competition, the agency shall calculate the cost difference by
subtracting SLCF Line 13 from SLCF Line 6 and shall enter the sum on
SLCF Line 17. COMPARE automatically calculates this SCF/SLCF line.

**H.** []{#LOWCOSTPROVIDERLine18 .anchor}**[LOW-COST PROVIDER (SCF/SLcf
Line 18)]{.underline}.** For a low-cost decision in a standard
competition, a positive number on Line 17 indicates a decision for
agency performance by government personnel, and a negative number
indicates a decision for a private sector or public reimbursable
performance. For either a low-cost decision or an other-than-low-cost
decision in a standard competition, the SSA's decision is indicated by
an "x" on SCF Line 18. For an other-than-low-cost decision, the SSA
shall document the reasons for such a decision in accordance with
Attachment B. For a streamlined competition, the cost difference entered
on SLCF Line 17 indicates the low cost performance decision. COMPARE
automatically calculates this SCF/SLCF line.

####### ACRONYMS AND DEFINITIONS

[]{#AtchDACRONYMSANDDEFINITIONS .anchor}

**A.** []{#ACRONYMS .anchor}**[ACRONYMS]{.underline}.**

  -----------------------------------------------------------------------
  **Acronym**     **Clear Text**
  --------------- -------------------------------------------------------
  ATO             Agency Tender Official

  CDRL            Contract Data Requirements List

  C.F.R.          Code of Federal Regulations

  CLIN            Contract Line Item Number

  CO              Contracting Officer

  CSO             Competitive Sourcing Official

  FAIR            Federal Activities Inventory Reform

  FAR             Federal Acquisition Regulation

  FICA            Federal Insurance Contribution Act

  FTE             Full-time Equivalent

  FWS             Federal Wage System

  GAO             General Accounting Office

  GFP             Government-Furnished Property

  GS              General Schedule

  HRA             Human Resource Advisor

  MEO             Most Efficient Organization

  OMB             Office of Management and Budget

  OPM             Office of Personnel Management

  PWS             Performance Work Statement

  SCA             Service Contract Act

  SCF             Standard Competition Form

  SLCF            Streamlined Competition Form

  SSA             Source Selection Authority

  SSEB            Source Selection Evaluation Board

  U.S.C.          United States Code

  VERA            Voluntary Early Retirement Authority

  VSIP            Voluntary Separation Incentive Pay
  -----------------------------------------------------------------------

**B.** []{#DEFINITIONS .anchor}**[DEFINITIONS]{.underline}.** Agencies
shall use these definitions to implement and comply with this circular
and the Attachments.

**Activity.** A specific task or grouping of tasks that provides a
specialized capability, service or product based on a recurring
government requirement. Depending on the grouping of tasks, an activity
may be an entire function or may be a part of a function. An activity
may be inherently governmental or commercial in nature.

**Adversely Affected Employees.** Federal civilian employees serving
competitive or excepted service appointments in Tenure Groups I, II, or
III, who are identified for release from their competitive level by an
agency, in accordance with 5 C.F.R. Part 351 and 5 U.S.C. Chapter 35, as
a direct result of a performance decision resulting from a streamlined
or standard competition.

**Agency Cost Estimate.** The part of the agency tender in a standard
competition that includes the agency's cost proposal and represents the
full cost of agency performance of the commercial activity, based on the
requirements in the solicitation and the costing policy in Attachment C.
The agency cost estimate for a streamlined competition is developed in
accordance with Attachments B and C.

**Agency Performance.** Performance of a commercial or inherently
governmental activity with government personnel. Often referred to as
"in-house performance."

**Agency Source.** A service provider staffed by government personnel.

**Agency Tender.** The agency management plan submitted in response to a
solicitation for a standard competition. The agency tender includes an
MEO, agency cost estimate, MEO quality control plan, MEO phase-in plan,
and copies of any MEO subcontracts (with the private sector providers'
proprietary information redacted). The agency tender is prepared in
accordance with Attachment B and the solicitation requirements.

**Agency Tender Official (ATO).** An inherently governmental agency
official with decision-making authority who is responsible for the
agency tender and represents the agency tender during source selection.

**Annualize.** The calculation method to convert a cost to an annual
basis. The calculation converts a cost for a performance period that is
less than one full year into an annual cost to correctly reflect the
cost in a government cost estimate. This calculation is performed by
first dividing the cost in the performance period by the number of days
in the performance period to determine the corresponding daily cost and
then multiplying the daily cost by 365.25 days to determine the
annualized cost. To account for leap years, 365.25 is the average number
of days in a year.

**Basic Pay.** Basic pay for GS employees is a position's annual salary
plus any other applicable civilian employee pay entitlements. Basic pay
for FWS employees is a position's annual wages including shift
differential pay and environmental pay, plus any other applicable
civilian employee pay entitlements. Examples of other civilian employee
pay entitlements include, but are not limited to, night differential pay
for FWS employees, environmental differential pay, and premium pay (for
civilian employee fire fighters and law enforcement officers).

**Capital Improvement.** An expenditure for a physical improvement to an
existing capital asset such as additions and major alterations that are
intended to improve performance or increase useful life.

**Civilian Employee.** An individual who works for a federal agency on
an appointment without time limitation who is paid from appropriated
funds, which includes working capital funds. A foreign national
employee, temporary employee, term employee, non-appropriated fund
employee, or uniformed personnel is not included in this definition.

**Commercial Activity.** A recurring service that could be performed by
the private sector. This recurring service is an agency requirement that
is funded and controlled through a contract, fee-for-service agreement,
or performance by government personnel. Commercial activities may be
found within, or throughout, organizations that perform inherently
governmental activities or classified work.

**Common Costs.** Specific costs identified in the solicitation that
will be incurred by the government regardless of the provider (private
sector, public reimbursable, or agency). Common costs are sometimes
referred to as wash costs. Examples of common costs include
government-furnished property, security clearances, and joint
inventories.

**COMPARE.** The windows-based A-76 costing software that incorporates
the costing procedures of this circular. Agencies must use COMPARE to
calculate and document the costs on the SLCF for a streamlined
competition or the SCF for a standard competition. The software is
available through the SHARE A-76! web site at
<http://emissary.acq.osd.mil/inst/share.nsf/>.

**COMPARE Version Control Log.** The document that describes each of the
changes made in a particular version of the COMPARE software. This
document includes a brief description of the change, the area of the
software program affected by the change, and the impact the change has
on the SCF/SLCF and/or documentation.

**COMPARE User\'s Guide.** A detailed guidebook for actual users of
COMPARE that includes an in-depth explanation of the use and features of
the COMPARE software program.

**COMPARE Tables.** A specific set of master tables incorporated into
the COMPARE costing software that includes all of the approved standard
cost factors and rates used to calculate the SCF/SLCF costs.

**Competition.** A formal evaluation of sources to provide a commercial
activity that uses pre-established rules (e.g., the FAR, this circular).
Competitions between private sector sources are performed in accordance
with the FAR. Competitions between agency, private sector, and public
reimbursable sources are performed in accordance with the FAR and this
circular. The term "competition," as used in this circular includes
streamlined and standard competitions performed in accordance with this
circular, and FAR-based competitions for agency-performed activities,
contracted services, new requirements, expansions of existing work, and
activities performed under fee-for-service agreement. The term also
includes cost comparisons, streamlined cost comparisons, and direct
conversions performed under previous versions of OMB Circular A-76.

**Competition File.** The documents used in a standard competition in
addition to the government contract files required by FAR Subpart 4.8.
Agencies maintain this file regardless of the source selected to perform
the activity.

**Competition Officials.** The agency officials appointed before a
standard competition is announced. These individuals perform key roles
and have essential responsibilities for the successful completion of the
standard competition. Competition officials are the agency tender
official, contracting officer, source selection authority, human
resource advisor, and PWS team leader.

**Competitive Sourcing Official (CSO).** An inherently governmental
agency official responsible for the implementation of this circular
within the agency.

**Component.** An organizational grouping within an agency, such as a
bureau, center, military service, or field activity.

**Contracting Officer (CO).** An inherently governmental agency official
who participates on the PWS team, and is responsible for the issuance of
the solicitation and the source selection evaluation methodology. The CO
awards the contract and issues the MEO letter of obligation or
fee-for-service agreement resulting from a streamlined or standard
competition. The CO and the SSA may be the same individual.

**Conversion From Contract.** A change in the performance of a
commercial activity from a private sector provider to agency
performance.

**Conversion To Contract.** A change in the performance of a commercial
activity from agency performance to a private sector provider.

**Depreciation.** The decline in the value of a capital asset.
Depreciation represents a cost of ownership and the consumption of an
asset's useful life.

**Direct Labor.** Manpower resources dedicated to performing the
requirements of the solicitation and labor for supervision and
management related support to the tender (e.g., MEO) such as labor for
quality control.

**Directly Affected Employees.** Civilian employees whose work is being
competed in a streamlined or standard competition.

**Directly Affected Government Personnel.** Government personnel whose
work is being competed in a streamlined or standard competition.

**Directly Interested Party.** The agency tender official who submitted
the agency tender; a single individual appointed by a majority of
directly affected employees as their agent; a private sector offeror; or
the official who certifies the public reimbursable tender.

**Divestiture.** An agency's decision to eliminate a government
requirement for a commercial activity. No service contract or
fee-for-service agreement exists between the agency and the private
sector after a divestiture. By divesting of a commercial activity, an
agency elects not to control the activity and cedes ownership and
control of the activity's associated assets (e.g., equipment,
facilities, property) and resources (agency manpower and budgeting for
the activity). The agency has no role in the financial support,
management, regulation, or oversight of a divested activity. Moving,
transferring, or converting a commercial activity from government
performance to private sector or public reimbursable performance is not
a divestiture.

**Employee Transition Plan.** A written plan developed by the HRA for
the potential transition of the agency's civilian employees to an MEO,
or to private sector or public reimbursable performance. This plan is
developed early in the streamlined or standard competition process,
based on the incumbent government organization, to identify projected
employee impacts and the time needed to accommodate such impacts,
depending on the potential outcomes of the competition. The employee
transition plan differs from a phase-in plan, which is developed by
prospective providers responding to a solicitation.

**End date.** The end date for a streamlined or standard competition is
the date that all SCF certifications are completed, signifying an
agency's performance decision.

**Expansion.** An increase in the operating cost of an existing
commercial activity based on modernization, replacement, upgrade, or
increased workload. An expansion of an existing commercial activity is
an increase of 30 percent or more in the activity's operating costs
(including the cost of FTEs) or total capital investment.

**FedBizOpps.gov.** The website where the government electronically
advertises solicitations or requirements.

**Fee-for-Service Agreement.** A formal agreement between agencies, in
which one agency provides a service (a commercial activity) for a fee
paid by another agency. The agency providing the service is referred to
in this circular as a public reimbursable source.

**First Period of Full Performance.** The performance period following
the phase-in period when the service provider becomes fully responsible
for performing the activity. The first performance period is used to
implement the new service provider's phase-in plan; therefore, full
performance of the service provider does not occur until the second
performance period, which may be referred to as the base period, full
performance, or the first period of full performance. This first period
of full performance may be less than or more than 12 months. The first
period of full performance is the second performance period (the
performance period immediately following phase-in period) regardless of
the second performance period's length.

**Foreign National Employee.** An employee that is not a United States
citizen who is employed by the United States Government and works
outside the United States, its territories or possessions, under a
system in which an Executive Agency is the official employer of the
foreign national employee and assumes responsibility for all
administration and management functions associated with the employee's
employment.

**Full-Time Equivalent (FTE).** The staffing of Federal civilian
employee positions, expressed in terms of annual productive work hours
(1,776) rather than annual available hours that includes non-productive
hours (2,080 hours). FTEs may reflect civilian positions that are not
necessarily staffed at the time of public announcement and staffing of
FTE positions may fluctuate during a streamlined or standard
competition. The staffing and threshold FTE requirements stated in this
circular reflect the workload performed by these FTE positions, not the
workload performed by actual government personnel. FTEs do not include
military personnel, uniformed services, or contract support.

**Function Code.** The numerical code used to categorize an agency's
commercial and inherently governmental activities for inventory
reporting purposes.

**Government Furnished Property (GFP).** Facilities, equipment,
material, supplies, or other services provided by the government for use
by all prospective providers in the solicitation. Costs for GFP included
in a solicitation are considered common costs. Replacement costs,
insurance, maintenance and repair costs for GFP may or may not be
government-furnished, depending on the provisions in the solicitation.

**Government Personnel.** Civilian employees, foreign national
employees, temporary employees, term employees, non-appropriated fund
employees, and uniformed services personnel employed by an agency to
perform activities.

**Human Resource Advisor (HRA).** An inherently governmental agency
official who is a human resource expert and is responsible for
performing human resource-related actions to assist the ATO in
developing the agency tender.

**Incumbent Service Provider.** The source (i.e., agency, private
sector, or public reimbursable source) providing the service when a
public announcement is made of the streamlined or standard competition.

**Information Technology.** Any equipment or interconnected system(s) or
subsystem(s) of equipment used in the automatic acquisition, storage,
manipulation, management, movement, control, display, switching,
interchange, transmission, or reception of data or information by the
agency. For purposes of this definition, equipment is used by an agency
if the equipment is used directly by the agency, or is used by a
contractor under a contract with the agency that requires (1) its use or
(2) to a significant extent, its use in the performance of a service or
the furnishing of a product. The term \"information technology\"
includes computers, ancillary equipment, software, firmware and similar
procedures, services (including support services), and related
resources, and does not include any equipment that is acquired by a
contractor incidental to a contract; or contains imbedded information
technology that is used as an integral part of the product, but the
principal function of which is not the acquisition, storage,
manipulation, management, movement, control, display, switching,
interchange, transmission, or reception of data or information. For
example, heating, ventilation, and air conditioning equipment, such as
thermostats or temperature control devices, and medical equipment where
information technology is integral to its operation, are not information
technology.

**Inherently Governmental Activities.** An activity that is so
intimately related to the public interest as to mandate performance by
government personnel as provided by Attachment A.

**Interested Parties.** For purposes of challenging the contents of an
agency's commercial activities inventory pursuant to the Federal
Activities Inventory Reform Act, an interested party is (1) a private
sector source that is an actual or prospective offeror for a contract or
other form of agreement to perform the activity and has a direct
economic interest in performing the activity that would be adversely
affected by a determination not to procure the performance of the
activity from a private sector source; (2) a representative of any
business or professional association that includes within its membership
private sector sources referred to in (1) above; (3) an officer or
employee of an organization within an executive agency that is an actual
or prospective offeror to perform the activity; (4) the head of any
labor organization referred to in section 7103(a)(4) of title 5, United
States Code, that includes within its membership officers or employees
of an organization referred to in paragraph (3).

**Inventory.** A list of government personnel, by location, function,
and position, performing either commercial activities or inherently
governmental activities.

**MEO Letter of Obligation.** A formal agreement that an agency
implements when a standard or streamlined competition results in agency
performance (e.g., MEO).

**MEO Subcontracts.** Contracts between an agency and the private sector
that are included in the agency tender or fee-for service agreements
with a public reimbursable source that are included in the agency
tender. In addition to the cost of MEO subcontracts, agency or public
reimbursable cost estimates must include support costs associated with
MEO subcontracts such as government-furnished property, and contract
administration, inspection, and surveillance.

**MEO Team.** A group of individuals, comprised of technical and
functional experts, formed to assist the ATO in developing the agency
tender.

**Military Personnel.** Officers \[as defined in 10 U.S.C. § 101(b)(1)\]
and enlisted members \[as defined in 10 U.S.C. § 101(b)(6)\] of the
military services (defined as the Army, Navy, Air Force, and Marine
Corps).

**Most Efficient Organization (MEO).** The staffing plan of the agency
tender, developed to represent the agency's most efficient and
cost-effective organization. An MEO is required for a standard
competition and may include a mix of government personnel and MEO
subcontracts.

**New Requirement.** An agency's newly established need for a commercial
product or service that is not performed by (1) the agency with
government personnel; (2) a fee-for-service agreement with a public
reimbursable source; or (3) a contract with the private sector. An
activity that is performed by the agency and is reengineered,
reorganized, modernized, upgraded, expanded, or changed to become more
efficient, but still essentially provides the same service, is not
considered a new requirement. New ways of performing existing work are
not new requirements.

**Non-Pay Categories of Costs.** Costs in a cost estimate that are not
related to pay. Non-pay categories of costs include, but are not limited
to, materials, supplies, equipment, facilities, capital assets, and
minor items and the inflation for these costs.

**Offer.** A private sector source's formal response to a request for
proposals or invitation for bid. The term "offeror" refers to the
specific source rather than the response.

**Overhead.** Overhead includes two major categories of cost, operations
overhead and general and administrative overhead. Operations overhead
includes costs that are not 100 percent attributable to the activity
being competed but are generally associated with the recurring
management or support of the activity. General and administrative
overhead includes salaries, equipment, space, and other tasks related to
headquarters management, accounting, personnel, legal support, data
processing management, and similar common services performed external to
the activity, but in support of the activity being competed. A standard
twelve percent overhead factor is an estimated federal agency overhead
factor that is calculated in agency and public reimbursable cost
estimates for streamlined and standard competitions.

**Past Performance.** An indicator that may be used in the source
selection process to evaluate a prospective provider's previous
performance on work comparable to that being competed, for the purpose
of predicting the quality of future performance relative to other offers
or public reimbursable tenders. FAR 42.1501 describes the information
used to evaluate past performance, and FAR 15.305(a)(2) provides
guidance for the consideration of past performance in the source
selection process.

**Pay Categories of Cost.** Costs in a cost estimate associated with the
payroll for government personnel, including inflation.

**Performance Decision.** The outcome of a streamlined or standard
competition, based on SLCF or SCF certifications.

**Performance Standards.** Verifiable, measurable levels of service in
terms of quantity, quality, timeliness, location, and work units.
Performance standards are used in a performance-based PWS to (1) assess
(i.e., inspect and accept) the work during a period of performance; (2)
provide a common output-related basis for preparing private sector
offers and public tenders; and (3) compare the offers and tenders to the
PWS. The requiring activity's acceptable levels of service are normally
stated in the PWS. The solicitation includes performance standards.

**Performance Work Statement (PWS).** A statement in the solicitation
that identifies the technical, functional, and performance
characteristics of the agency's requirements. The PWS is
performance-based and describes the agency's needs (the "what"), not
specific methods for meeting those needs (the "how"). The PWS identifies
essential outcomes to be achieved, specifies the agency's required
performance standards, and specifies the location, units, quality and
timeliness of the work.

**Phase-in Plan.** A prospective provider's plan to replace the
incumbent provider(s) that is submitted in response to the solicitation.
The phase-in plan is implemented in the first performance period and
includes details on minimizing disruption, adverse personnel impacts,
and start-up requirements. The phase-in plan is different from the
employee transition plan developed by the HRA.

**Privatization.** A federal agency decision to change a
government-owned and government-operated commercial activity or
enterprise to private sector control and ownership. When privatizing,
the agency eliminates associated assets and resources (manpower for and
funding of the requirement). Since there is no government ownership and
control, no service contract or fee-for-service agreement exists between
the agency and the private sector after an agency privatizes a
commercial activity or enterprise. Moving work from agency performance
with government personnel to private sector performance where the agency
still funds the activity is not privatization.

**Prospective Providers.** Private sector, public reimbursable, and
agency sources that may submit responses (offers or tenders) in response
to an agency's solicitation.

**Provider.** An agency, private sector, or public reimbursable source
that is performing, or will perform, a commercial activity; sometimes
referred to as a service provider.

**Public Announcement.** An agency's formal declaration that the agency
has made a (1) decision to perform a streamlined or standard
competition, or (2) performance decision in a streamlined or standard
competition. The CO makes these announcements via *FedBizOpps.gov*.

**Public Reimbursable Source.** A service provider from a federal agency
that could perform a commercial activity for another federal agency on a
fee-for-service or reimbursable basis by using either civilian employees
or federal contracts with the private sector.

**Public Reimbursable Tender.** A federal agency's formal response to
another federal agency's solicitation for offers or tenders. The public
reimbursable tender is developed in accordance with this circular and
includes a cost estimate, prepared in accordance with Attachment C.

**PWS Team.** A group of individuals, comprised of technical and
functional experts, formed to develop the PWS and quality assurance
surveillance plan, and to assist the CO in developing the solicitation.

**Quality Assurance Surveillance.** The government's monitoring of a
service provider's performance in accordance with the quality assurance
surveillance plan and the performance requirements identified in the
solicitation.

**Quality Assurance Surveillance Plan.** The government's inspection
plan. The quality assurance surveillance plan documents methods used to
measure performance of the service provider against the requirements in
the PWS. The agency relies on the service provider to monitor daily
performance using their own quality control plan, but retains the right
to inspect all services. When the agency makes a performance decision,
the agency re-evaluates and modifies the existing quality assurance
surveillance plan, based upon the selected provider and the selected
provider's accepted quality control plan.

**Quality Control Plan.** A self-inspection plan that is included in all
offers and tenders. The quality control plan describes the internal
staffing and procedures that the prospective provider will use to meet
the quality, quantity, timeliness, responsiveness, customer
satisfaction, and other service delivery requirements in the PWS.

**Representatives of Directly Affected Employees.** In the case of
directly affected employees represented by a labor organization accorded
exclusive recognition under 5 U.S.C. § 7111, a representative is an
individual designated by that labor organization to represent its
interests. In the case of directly affected employees not represented by
a labor organization under 5 U.S.C. § 7111, a representative is an
individual appointed by directly affected employees as their
representative.

**Residual Value.** The estimated value of a capital asset at the end of
its useful life as determined by application of the Useful Life and
Disposal Value Cost Factor.

**Resources.** Funding allocated for contracts, manpower, facilities,
material, or equipment to perform agency requirements.

**Segregable Expansion.** An increase to an existing commercial activity
that can be separately competed.

**SHARE A-76!** The Department of Defense A-76 knowledge management
system used to share knowledge, information, and experience about
public-private competitions. This public site contains A-76-related
guidance, sample documents, best practices, tools, and links to other
A-76 websites and sources for A-76-related information. Users may post
best practices used in public-private competitions, research A-76
through the use of search engines, and submit internet links to add to
the available links in SHARE A-76! The web site address is
<http://emissary.acq.osd.mil/inst/share.nsf/>.

**Solicitation Closing Date.** The due date for delivery of private
sector offers, public reimbursable tenders, and the agency tender, as
stated in the solicitation.

**Source.** One of three specific categories of service providers (i.e.,
agency, private sector, or public reimbursable) that can perform a
commercial activity for an agency.

**Source Selection Authority (SSA).** A competition official with
decision-making authority who is responsible for source selection as
required by the FAR and this circular. The SSA and CO may be the same
individual.

**Source Selection Evaluation Board (SSEB).** The team or board
appointed by the SSA to assist in a negotiated acquisition.

**Standard Competition Form (SCF).** The agency form that documents and
certifies all costs calculated in the standard competition.

**Start Date.** The start date for a streamlined or standard competition
is the date that the agency makes a formal public announcement of the
agency's decision to perform a streamlined or standard competition.

**Streamlined Competition Form (SLCF).** The agency form that documents
and certifies all costs calculated in the streamlined competition, in
accordance with Attachment C.

**Uniformed Services.** Members of the armed forces (i.e., Army, Navy,
Air Force, Marine Corps, and Coast Guard) and other uniformed services
(e.g., National Oceanic and Atmospheric Administration, Public Health
Service).

**Useful Life.** The estimated period of economic usefulness of a
capital asset.

**[INDEX]{.underline}**

**Acquisition**

Acquisition Process, B-10

Negotiated Acquisition, B-17, C-4, C-26

Strategy, B-10

**Activity**, **A-1**, C-32, D-3, D-4

Activity Based Costing, B-14

**Agency**

Performance, B-7, C-25, C-32, D-3

Priority Considerations, B-3

Provider, B-25, C-6, C-8

Source, B-21, D-3

Tender, B-2, B-11, B-14, B-20, C-6, C-8, D-1, D-3

Agency Tender Official, B-2, C-6, D-1, D-3

Annual Productive Hours, C-10, C-13

Annual Requirement, A-1

Apparent Lowest Priced Private Sector Bid, B-17

**Appeal**

Authorities, A-4

Inventory Challenge Decision, A-5

Asset Disposal, C-30

ATO, B-2, B-3, *B-4*, B-9, B-10, B-12, B-14, B-15, B-17, B-18, B-21,
B-24, B-25, C-3, C-4, D-1, D-3, D-8, D-9

Available to the Public, A-1, A-5, B-6, B-16, B-17, B-24, C-11

Award a Contract, B-7, B-25

Award Fee, B-13, C-24, C-27

**Awards**, **C-12**, C-13, D-5

Cash, C-12

Category One, C-12

Category Two, C-12

Civilian Award Policy, C-12

Best Practices, B-25

Bonuses, C-12, C-13

Budgetary Constraints, B-11

Business Case Analysis, B-14

**Cancellation**

Notice, B-4

Of a Solicitation, B-4

Of a Streamlined or Standard Competition, B-4

Cancellations, B-4

Capital Asset, B-22, C-18, C-20, C-21, C-23, C-26, C-30, C-31, D-4, D-6,
D-9, D-12, D-13

Capital Improvement, C-18, C-19, C-23, C-31

Certification, B-23, C-6, C-8

**Challenge**

Challenge to Agency Action or Inaction, 3

Changes to the Agency Tender, B-15

Civil Service Retirement System, C-12

Classified, A-1, A-4, B-14, C-15, D-4

**Code of Federal Regulations (C.F.R.)**

29 C.F.R, C-26

5 C.F.R. Part 330, B-3

5 C.F.R. Part 351, B-3, D-3

5 C.F.R. Part 536, C-2

Commercial Activity, 1, 2, 3, A-4, B-1, B-7, C-32, C-33, D-3, D-5, D-6,
D-7, D-10, D-11, D-12

Continued Private Sector Performance, 3

Commercial Services, 1

Committee for Purchase from People Who Are Blind, NISH, or National
Institute for the Blind, C-29

**COMPARE**, 2, B-15, B-22, B-26, C-1, C-2, C-3, C-9, C-11, C-13, C-14,
C-16, C-17, C-18, C-19, C-20, C-21, C-22, C-23, C-24, C-25, C-26, C-28,
C-29, C-30, C-31, C-32, C-33, C-34, D-4, D-5

version upgrades, B-15

**Competition**

Competition File, B-13, D-5

Competition Officials, B-2, D-5

Follow-on, B-26

multi-location competition, C-11

Standard, 1, 2, 3, A-4, B-1, B-2, B-3, *B-4*, B-8, B-9, B-10, B-12,
B-13, B-16, B-17, B-19, B-21, B-22, B-23, B-24, B-25, B-26, B-27, B-28,
C-2, C-3, C-9, C-13, C-16, C-18, C-19, C-20, C-21, C-24, C-25, C-26,
C-29, C-30, C-31, C-32, C-33, D-3, D-4, D-5, D-6, D-7, D-8, D-9, D-10,
D-11, D-12

Streamlined, 2, 3, 4, A-4, B-1, B-2, B-4, B-6, B-7, B-28, C-2, C-4, C-9,
C-16, C-18, C-25, C-26, C-29, C-30, C-31, C-32, C-33, C-34, D-3, D-4,
D-9, D-12

Type of Competition, B-1

**Competition:**, **B-2**, B-6, B-13, **B-23**, C-6, C-8, C-32, D-5

Competitive Agency Tender, B-2

Competitive Sourcing Officer

CSO, 1, 2, 3, A-2, A-4, B-2, *B-4*, B-6, B-8, B-12, B-13, B-16, B-17,
B-19, B-21, B-26, B-27, C-24, D-1, D-5

Compliance Matrix, B-11, B-12

Component, A-2, C-6, C-7, C-8, D-5

**Conflict of Interest**

Appearance Of, B-9

Consolidation, B-14

Consultation with the CSO, B-15

**Contest**, B-15, B-24, B-28

Contract Line Item Number (CLIN), B-11, B-12, B-13, C-21, D-1

expiration of the time for filing a contest, B-16, B-24

**Contract**

Contract Administration, C-2, C-4, C-6, C-8, C-28

Contract Data Requirements List (CDRL), B-11, B-12, D-1

Contract File, B-13, B-26, D-5

Contract Price, B-5, B-13, B-18, B-19, B-20, B-23, C-7, C-23, C-26,
C-27, C-28, C-29, C-31

Cost Plus Award Fee Contract, C-27

Cost Plus Fixed Fee Contract, C-27

Cost Plus Incentive Fee Contract, C-27

Cost Sharing Contract, C-27

Firm Fixed Price Contract, C-26

Firm Fixed Price Incentive Fee Contract, C-27

Contracting Officer, B-2, C-7, D-1, D-5

Contracting Officer (CO), B-2, B-3, B-4, B-7, B-9, B-10, B-11, B-13,
B-14, B-15, B-16, B-17, B-18, B-19, B-20, B-21, B-22, B-23, B-24, B-25,
B-26, B-27, C-1, C-2, C-3, C-4, C-9, C-16, C-17, C-18, C-25, C-26, C-27,
C-28, C-29, C-30, C-31, D-1, D-5, D-11, D-12

**Contracts**

Awarded, B-5, B-16

Awarding, B-25

Cost Reimbursement Contracts, C-27

**Conversion**

Conversion Differential, B-22, B-23, C-2, C-4, C-6, C-31

Conversion From Contract, D-6

Conversion To Contract, D-6

Conversions, C-25, C-32

Convert the Streamline Competition to a Standard Competition, B-6

**Cost**

Additional Costs, B-23, C-6, C-25, C-29

Adjusted Cost of Private Sector Or Public Reimbursable Performance, C-26

Adjusted Total Cost of Agency Performance, B-23, C-6, C-33

Calculating Public-Private Competition Costs, 4

common, B-13, C-28, D-4, D-7

Cost Adjustments, C-2

Cost Analysis, B-9

Cost Ceiling, C-17, C-22

Cost of Agency Performance, B-5, C-9

Cost of Capital, B-22, C-1, C-18, C-19, C-20

Cost of Private Sector/Public Reimbursable Performance, B-5

cost or price shall be at least equal to all other evaluation factors
combined, B-11

Cost Realism, B-18, B-19, B-20, B-21, B-22, C-4, C-7, C-9, C-16, C-18,
C-25, C-29, C-30

Cost-Benefit Analysis, B-18

Costing Variations, 2

**Excluded Costs**, **C-2**

Federal Insurance Contribution Act (FICA) cost factor, C-12, C-13

Full Cost of Performance, C-1

labor costs, C-9

Material and Supply Costs, B-22, C-6, C-8, C-16

Material Related Costs, C-17

Medicare Benefit Cost Factor, C-5, C-12

One-time Conversion Costs, B-23, C-29

original acquisition cost, C-18, C-31

Other Costs, C-24, C-30

Other Specifically Attributable Costs, B-22, C-6, C-8, C-18

Overhead Costs, B-22, C-6, C-8

pay and non-pay categories of cost, C-3

Pay Categories of Cost, D-10

Personnel Costs, B-22, C-6, C-8, C-9

Public-Private Competition Costs, C-1

Severance Costs, C-30

standard cost factors, B-15, B-22, C-3, D-5

standard costing factors, C-3

standby costs, C-29

target cost, B-13, C-27

Total Adjusted Cost, B-23, C-6, C-8, C-31

Total Cost of Agency Performance, B-23, C-6, C-8, C-26

Training Costs, C-25

wash costs, D-4

Cost Comparisons, 3, D-5

Cost Difference, B-23, C-6, C-8

**Cost Estimate**

Adjusted, B-6

Agency, B-1, B-3, B-5, B-6, B-7, B-10, B-14, B-15, B-19, B-21, C-4, C-6,
C-7, C-8, C-9, C-10, C-13, C-14, C-15, C-16, C-17, C-18, C-19, C-20,
C-26, C-32, D-3

Government, 2, D-4

**Cost Factor**

Full Benefit Factor, C-12

Miscellaneous Fringe Benefit Cost Factor, C-5, C-12

**Cost of Performance**

Actual, B-26

Cost-of-Living Allowances (COLA), C-13

Cure Notices, B-27

**Data**

Data Collection Systems, B-1

database, B-25

**Date**

Effective Date, 3

End Date, B-4, B-6, B-8, B-24, C-16, D-7

End Date (Performance Decision Date), B-4

Start Date, B-4, D-12

Davis-Bacon Act, C-14

Day, B-6, C-11, C-15

Debriefing, B-24

Decision Making, A-3

Declared War, 3

Deficiencies, B-21

Deficiency Notice, B-21

Demonstration Project, C-11

Department of Labor, B-10

**Depreciation**, **C-18**, C-31, D-6

Depreciation Schedules, C-18

rates of depreciation, C-18

Deviation Procedure, 2, B-6

**Deviations**

procedural, 2

Direct Conversions, 3, D-5

Direct Conversion of work performed by government employees, B-14

Directly Affected Government Personnel, D-6

Directly Interested Party, D-6

Discretionary Authority, A-3

Divestiture, D-6

Draft, B-10

**Economic Price Adjustment**, C-14, C-15, C-17, C-23

not subject to an economic price adjustment, C-3, C-14, C-15, C-18

subject to an economic price adjustment, C-3, C-14, C-15, C-17

**Employee**, **B-3**, C-12, C-13, D-4, D-6, D-7

Employee Placement Entitlements, B-3

Employee Transition Plan, D-6

Employment Restrictions to Employees, B-3

**Employees**

adversely affected, B-3, B-25

adversely affected federal employees, 2

Directly Affected Employees, B-3, B-4, B-10, B-17, D-6, D-11

Directly Affected Employees and their representatives, B-4

Representatives of Directly Affected Employees, D-11

Ethics, 1, B-6

**Evaluation**

specific weight given evaluation factors and sub-factors, B-11

Evaluation Factors, B-10, B-14, B-16

Evaluation Team, B-9

Exchanges, B-18, B-20, B-21

Execution Tracking, B-25

Executive Order, 3, C-11

Existing Information, B-10

Expansion, C-32, D-7

Extended Life, C-18

Facilities, A-3, B-10, B-12, B-14, C-14, C-19, C-23, C-25, C-29, D-6,
D-9, D-12

Failure to Perform, B-27

Fair Labor Standards, B-3, C-14

*FedBizOpps*, *B-4*, B-6, B-17, B-24, B-26, D-7, D-11

Federal Accounting Standards for Property, Plant and Equipment, C-18

**Federal Acquisition Regulation (FAR)**

FAR 15.101-2, B-17

FAR 15.307, B-15

FAR 15.503(b), B-24

FAR 16.3, C-27

FAR 17.207, B-26

FAR 51.101, C-17

FAR 7.305(c), B-3, B-7, B-10, B-25

FAR clause 52.222-43, C-14, C-15

FAR clause 52.222-44, C-14, C-15

FAR clause 52.245-5, C-21

FAR Part 15.303, B-3

FAR Part 2, B-21, C-7, C-14, C-15, C-29

FAR Part 22, C-14, C-15

FAR Part 26, C-29

FAR Part 49, B-27

FAR Part 8, C-29

FAR Provisions, B-10

FAR Subpart 14.4, B-24

FAR Subpart 15.101-, B-19

FAR Subpart 15.303, B-9

FAR Subpart 15.306, B-18, B-20

FAR Subpart 22.10, B-10

FAR Subpart 33.103, B-24, B-28

FAR Subpart 4.8, B-14, B-26, D-5

FAR Subpart 42.15, B-26

Federal Employees Retirement System, C-12

Federal Income Tax Adjustment, B-23, C-2, C-6, C-8, C-23, C-30

Federal Insurance Contribution Act (FICA), C-5, C-11, C-12, C-13, D-1

**Federal Wage System (FWS)**, **C-5**, C-11, C-13, C-15, C-16, D-1, D-4

Fee-for-Service Agreement, D-7

Final Management Decision, B-9

Firewalls, B-6

Foreign National, D-7

Full Time Equivalent (FTE), B-1, **C-9**, C-10, C-28, D-1, D-7

Rounding, C-10

Full-time, C-10, C-11, D-1

Full-Time Equivalents (FTE), C-10

Function Code, D-7

Functionality Assessment, B-14

Gain on Assets, B-23, C-30

General Schedule (GS), C-5, C-15

GS pay schedules are effective, C-15

Government Authority, A-2

**Government Furnished Property (GFP)**, **B-2**, B-9, B-12, C-17, C-19,
C-20, C-21, C-22, C-24, D-2, D-7

Casualty Insurance, C-21

Determining GFP, B-9

Government Personnel, 1, 2, 3, A-1, A-2, A-4, *B-4*, B-5, B-9, B-14,
B-16, B-19, B-24, B-27, C-9, C-29, C-32, C-33, D-3, D-4, D-7, D-8, D-9,
D-10

Government Purchase Card, C-23

Grouping, B-1, C-6

High Performing Organization, 2, B-26

**Human Resource Advisor (HRA)**, **B-2**, **B-3**, B-4, B-9, B-14,
B-17, B-25, C-11, C-13, D-2, D-6, D-8, D-10

human resource expert, B-2, D-8

**Implementation**

Implement the Agency Tender, B-17

Implementing a Performance Decision, B-24

Implementing the Streamlined Performance Decision, B-7

Incentive Fees, C-29

**Incumbent**

incumbent activity, B-5

incumbent agency organization, B-3, B-10

incumbent service provider, B-4, D-8

Independent, 2, A-5, B-2, B-3

Indian Incentive Program, C-29

Indian Tribe, C-29

Industrial Engineering, B-9, B-14

**Inflation**

inflation factors, C-3, C-17

non-pay inflation, C-17

**Inflation:**, **C-3**, **C-5**, C-14, C-15, C-17, C-28

**Information Technology**, D-8

information technology activities, B-19

Inherently Governmental, 1, A-1, A-2, A-3, A-4, A-5, B-2, B-3, D-3, D-4,
D-5, D-7, D-8

Inherently Governmental Activities, A-2, D-8

**Insurance**, C-5, C-6, C-12, C-21

Casualty Insurance, C-4, C-21, C-22

Casualty Insurance Premiums, C-21

Casualty Insurance Premiums for Materials and Supplies, C-21

Insurance and Health Benefit Cost Factor, C-5, C-12

Liability Insurance, C-5, C-22

personnel liability insurance, C-22

Interested Parties, A-5, B-2, B-24, B-28, D-8

Intermittent, C-5, C-10, C-12

Intermittent FTEs, C-10

International Agreement, 3

**Inventory**, 1, 4, A-1, A-4, A-5, D-1, D-8

Agency Inventories, A-1

Annual Inventories, A-1

Inventory Appeal Decision, A-5

Inventory Appeals, A-5

Inventory Challenge, A-4, A-5

Inventory Challenge Decision, A-5

Inventory Changes, A-5

Inventory Process, 4

inventory process deviations, 2

inventory summary report, A-1

Submission of an Inventory Challenge, A-5

**Items**

major items, C-18

minor items, C-18, C-22, C-24

replacement cost of minor items, C-24

Javits-Wagner-O\'Day, C-29

Joint Usage, C-19, C-24

Known, C-3, C-11

Labor Escalation, C-14

Labor Strike Plan, B-11

Law, 2, 3, A-3, C-12, C-13, D-4

Law Enforcement and Fire Protection, C-12

Lease, C-20, C-22

Legal Agent, B-24

Letter of Obligation, C-10, D-9

Licensing, B-11, C-25

**Low Cost**

Low Cost Performance Decision, B-20

low-cost provider, B-20, **B-23**

Management Analysis, B-9

**Market**

market analysis, B-3

market research, B-14

market research documented, B-5, C-8

Material Deficiency, B-21

Materially Deficient, B-21

Medical Physical Exams, C-26

Military Mobilization, 3

Monitoring Performance, B-26

**Most Efficient Organization (MEO)**

labor to staff the MEO, B-3

MEO letter of obligation, B-25, B-27, C-9, C-10, D-5

MEO self-inspection plan, B-15

MEO Subcontracts, C-23, D-9

MEO Team, B-3, B-9, D-9

**Most Efficient Organization (MEO) Subcontracts**

Administration and Surveillance, C-13

**Most Efficient Organization (MEO):**, **B-2**, B-3, B-5, B-6, B-9,
B-10, B-11, B-12, B-14, B-15, B-16, B-20, B-22, B-24, B-25, B-26, B-27,
C-2, C-6, C-9, **C-10**, C-14, C-16, C-19, C-20, C-23, C-24, C-28, C-33,
D-2, D-3, D-5, D-6, D-9

National Institute for the Blind, C-29

National Security, A-1

Negotiated Procedures, B-10

New Requirement, C-25, C-32, D-9

NISH, C-29

No Satisfactory Private Sector or Public Reimbursable Source, B-16

Non-disclosure Agreement, B-24

Non-Pay Categories of Costs, D-9

Nonprofit Agency Fees, C-29

Nonrecurring, C-23

Non-responsive, B-16

North American Industry Classification System, C-6, C-31

Not Responsible, B-16

Notice of Termination, B-27

**Notification**

Congressional and Public Notification, A-1

Offer, B-21, D-9

**Official**

official with decision-making authority, B-2, D-3, D-12

**OMB**

OMB Review and Consultation, A-1

OMB web site, A-1, A-4, B-25, B-26, C-3

written OMB approval, 2

Option Years of Performance, B-26

Oral Presentations, B-20

Overhead, B-22, C-5, C-6, C-8, C-25, D-9

Partial Conversion, C-32

Part-time, C-10, C-11

Part-time Permanent Civilian Positions, C-11

**Pay**

Basic, C-11, D-4

Environmental Differential Pay, C-13, D-4

Federal Pay Raise Assumptions, C-3, C-15

holiday pay, C-13

January to September Effective Dates, C-16

Locality Pay, C-11

night differential pay, C-13, D-4

October to December Effective Dates, C-16

Other Civilian Pay, C-11, C-12, C-13

other civilian pay entitlements, C-11, C-13

overtime, C-13

Pay Rate Changes, C-11

pay tables, C-11

pay-banded, C-11

premium pay, B-3, C-13, D-4

retained rate of basic pay, C-2

severance pay, C-1, C-30

**Performance**

Alternate Performance Standards, B-14, B-18, B-20

Past Performance, D-10

Performance Bond, B-13, C-28

Performance Decision, B-6, B-7, B-17, **B-23**, B-24, D-10

Performance Periods, B-5, B-6, B-12, B-22, B-26, C-2, C-10, C-14, C-15,
C-17, C-18, C-19, C-20, C-21, C-23, C-24, C-31, C-32, C-33

Performance Standards, D-10

**Performance Decision**

Other Than Low Cost Performance Decision, B-20

**Performance Work Statement (PWS)**

PWS Team, B-8, D-11

PWS Team Leader, B-2, B-8, D-5

**Performance Work Statement (PWS):**, **B-2**, B-8, B-9, B-10, B-11,
B-12, B-13, D-2, D-5, D-10, D-11

Personnel Requirements, A-1, C-6

**Phase**

Phase One, B-18, B-19

Phase Two, B-18, B-19

Phased Evaluation Source Selection Process, B-18

phase-in costs, B-13, B-15, B-23, C-3

phase-in period, B-12, B-13, C-11, C-30, D-7

Phase-in Plan, B-13, B-15, D-10

**Position**

classifying position descriptions, B-3

position classification, B-3, B-9

position descriptions, B-14, C-15

Post Competition Accountability, B-25

**Price**

Price Analysis, B-18, B-19, B-20, B-21, B-22, C-4, C-7, C-9, C-16, C-18,
C-25, C-29, C-30

Price Analysis and Cost Realism, B-21

price proposals, B-18

Private Sector, 1, 2, 3, A-3, A-4, B-1, B-3, B-5, B-6, B-7, B-12, B-13,
B-14, B-16, B-17, B-18, B-19, B-20, B-21, B-22, B-23, B-24, B-25, B-26,
B-27, C-1, C-7, C-8, C-14, C-21, C-22, C-25, C-26, C-27, C-28, C-29,
C-30, C-31, C-32, C-33, D-3, D-4, D-5, D-6, D-8, D-9, D-10, D-11, D-12

Privatization, D-10

**Procurement**

negotiated procurement, B-9

Procurement Integrity, 1, B-6

procurement sensitive, B-10, B-20

Procurement Sensitivity, B-15

**Procurement:**, 1, B-6, B-9, B-10, B-16, B-20

**Productive**

productive work hours, C-10, D-7

productivity assessment, B-14

**Proposal**

proposal revisions, B-15

soliciting cost proposals, B-5, C-8

**Proprietary**

proprietary information, B-7, B-14, B-16, B-19, B-24, D-3

**Prorate**

Prorated Labor, C-9

**Prorate:**, **C-9**, C-17, C-19, C-20, C-24

**Prospective**

Prospective Providers, B-12, D-10

prospective providers as GFP in the solicitation, C-17, C-18, C-19,
C-20, C-21, C-22, C-23, C-24, C-30

**Provider**

Private Sector Provider, B-24, C-6, C-8

service provider, B-1, B-4, B-6, B-7, B-10, B-13, B-15, B-25, B-26,
B-27, C-24, C-28, D-3, D-7, D-11, D-12

**Provider:**, **B-23**, C-7, D-11

**Public**

Public Announcement, B-4, B-6, B-24, D-11

Public Reimbursable Cost Estimate, B-21, B-22, B-23, C-4, C-6, C-8,
C-26, C-27

Public Reimbursable Provider, B-25, C-6, C-8

Public Reimbursable Source, C-2, C-22, D-11

Public Reimbursable Tender, B-14, B-16, B-20, C-6, C-8, D-11

Public-Private Competition, 4, C-1

**Quality**

Quality Assurance Surveillance, B-10, B-13, D-11

Quality Assurance Surveillance Plan, B-10, B-13, D-11

Quality Control Plan, B-13, B-15, D-11

quality step increases, C-12

Reason Codes, A-4

Recurring Service, A-4, D-4

Reduction-in-Force, B-3

Reemployment Priority List, B-3

Reengineering, B-14

Regulation, 3, A-2, D-6

Reinvention, B-14

**Release**

Release of Information, B-10

Release of the Certified SCF and Tenders, B-16, B-24

Rent, C-20

**Report**

Competitive Sourcing Quarterly Report, B-26

Resources, D-12

Responsiveness and Responsibility, B-17

Right of First Refusal, B-25

Roles and Responsibilities, B-1

**Rule**

rounding rule, C-3

**Rule:**, 3

**Schedule**

preliminary competition and completion schedules, B-1

**Schedule:**, **B-1**, D-2

Scope, 2, B-1, C-9

**Sealed**

sealed bid, B-10, B-17, B-24, C-4

Sealed Bid Acquisition, B-17, C-4, C-26

sealed package, B-14, B-15

Seasonal, C-10, C-13

Seasonal FTEs, C-10

Segregable Expansion, C-32, D-12

Separation Incentive Programs, C-2

Service Contract Act, C-14, D-2

SHARE A-76!, 2, B-25, C-3, D-4, D-12

Show Cause Notices, B-27

**Small Business**

small business strategy, B-11

small disadvantaged businesses, B-11

**Solicitation**

Amending the Solicitation, B-15

not-to-exceed cost clause, B-11

revisions, B-16

s olicitation amendment, B-15

Solicitation Closing Date, B-11, C-6, C-8, D-12

**Solicitation:**, **B-10**, B-11, B-17, C-6, C-8, D-12

**Source**

Lowest Price Technically Acceptable Source Selection, B-17

Source Selection, B-3, B-9, B-10, B-11, B-17, C-7, D-2, D-12

Source Selection Authority (SSA), B-2, B-3, B-9, B-17, B-18, B-19, B-20,
B-21, B-23, B-24, C-3, C-4, C-7, C-33, D-2, D-5, D-12

source selection decision document, B-20, B-21, C-4, C-7

Source Selection Evaluation Board (SSEB), B-2, B-3, B-9, B-20, D-2, D-12

source selection process, B-10, B-18, B-19, B-23, C-26, D-10

Tradeoff Source Selection Process, B-19

**Source:**, **B-3**, B-9, B-10, B-11, B-17, C-4, C-6, C-7, D-2, D-12

Special Acts, C-12

Staffing Plan, B-14, D-9

**Standard**

Standard Competition Form (SCF), B-4, B-13, B-15, B-17, B-18, B-19,
B-20, B-21, B-22, B-23, B-24, B-26, C-1, C-2, C-3, C-4, C-7, C-9, C-10,
C-16, C-18, C-24, C-25, C-26, C-27, C-28, C-29, C-30, C-31, C-32, C-33,
D-2, D-4, D-5, D-7, D-10, D-12

Standard Competition Form (SCF) Overview, B-22

Standards of Conduct, 1, B-6

Statutory restrictions, A-3

**Streamlined**

Streamlined Competition Form (SLCF), B-4, B-5, B-6, B-26, C-1, C-2, C-3,
C-4, C-8, C-9, C-10, C-16, C-18, C-24, C-25, C-26, C-27, C-28, C-29,
C-30, C-31, C-32, C-33, C-34, D-2, D-4, D-5, D-10, D-12

Streamlined Competition Form (SLCF) Certifications, B-6

Streamlined Competition Form (SLCF) Review, B-6

streamlined cost comparisons, 3, D-5

**Subcontract**

Administration and Surveillance, C-23

subcontracting plan goal, B-11

Submission of the Agency Tender, B-15

Substantial Discretion, A-2, A-3

Target Profit, B-13, C-27

Tax Rate Table, C-31

Team Designations, B-8

**Technical**

technical acceptability, B-18

technical and functional experts, B-8, B-9, D-9, D-11

**Technical:**, **B-8**, B-9, B-10, B-18, D-9, D-10, D-11

**Temporary**

Temporary Remedies, B-27

**Temporary:**, **B-27**, **C-5**, C-10, C-12, C-20

**Terminations**

termination for default, B-27

Terminations Based on Reasons Other than Failure to Perform, B-27

**Terminations:**, **B-27**

Thrift Savings Plan, C-12

**Time Limit**

12 months, B-8, C-13, D-7

135 calendar days, B-6

45 calendar days, B-6

90 calendar days, B-6

extensions, 2

waiver, B-6, B-8

**Time Limit:**, **B-6**, B-8

Transfer, B-23, C-19, C-20, C-30, C-31

Transition, 3, 4, B-3, D-6, D-10

Transition procedures, 3, 4

Transmittal Memorandum, C-3, C-15

Travel, C-22

Treaty, 3

Unambiguous, B-21

Unemployment, C-12

**Unfair**

unfair advantage, B-11, B-20

unfair competitive advantage, B-10

Uniform Allowances, C-9, C-13

**Uniformed Services**

**u**niformed services labor, C-16

uniformed services personnel, A-1, A-2, D-8

**Uniformed Services:**, **A-1**, C-5, C-16, D-12

**United States Code (U.S.C.)**

18 U.S.C. § 208, 1, B-6

5 U.S.C. § 101, 2

5 U.S.C. § 102, 2

5 U.S.C. § 104, 2

5 U.S.C. § 7111, D-11

**Useful Life**

remaining useful life, C-19

Useful Life and Disposal Value Table, C-18

useful life expectancies, C-19

Utilities, B-22, C-21

Utilization Studies, B-14

Value Engineering, B-9, B-14

Voluntary Early Retirement Authority, C-2, D-3

Voluntary Separation Incentive Pay, C-2, D-3

Wage Determinations, B-10

**Work**

work measurement, B-9

workload data, B-1, B-8

Workload Data and Systems, B-1

**Written Determination, A-4, B-16**