**Competitive Sourcing Glossary of Terms:**

**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
of OMB Circular A-76. The agency cost estimate for a streamlined
competition is developed in accordance with Attachments B and C of OMB
Circular A-76.

**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 of OMB Circular A-76 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 of OMB Circular A-76.

**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 of
OMB Circular A-76.

**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 of OMB Circular A-76.

**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.