# Presentation: 209549

## DOT FAIR Act and Inherently Governmental Inventories FY06 Guidance 

- The Department of Transportation
- Office of Competitive Sourcing

## Fraction FTE

**Notes:**
How do you determine the FC of an FTE?
Preponderance of duties

## Fraction FTE

**DO NOT split below .25 FTE**
**OMB: Except in rare instances, an FTE should be assigned a **_**single function code selected on the basis of the predominant type of work performed.**_  In reporting any fractional FTE, agencies shall not report fractions smaller than one-quarter unless a request for a waiver is granted by OMB.

## Inherently Governmental Activities

**Notes:**
Who can tell us what Inherently Governmental activity is ?

## 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.
- Require the exercise of _substantial discretion_ in applying government authority and/or in making decisions for the government.
*SOURCE: OMB Circular A-76*

## Substantial Discretion

- 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...
*SOURCE: OMB Circular A-76*
- Example: Negotiating on behalf of the government

**Notes:**
Example of interpretation: Negotiating on behalf of the government.

## What authority do they have?

- Ultimate control
- Signature
- Delegated
- Warranted
- Statute or legislation

**Notes:**
What does Ultimate control mean?
Budget, funds, finance
Signature Authority?
Selects, disciplines, awards, evaluations, and position descriptions for federal employment
Delegated?
Warranted?
Contracting
Statute or legislation?

## Inherently Governmental vs. Commercial Activities

**Inherently Governmental**
- Determine policies
- Sign contracts
- Controls budget priorities
- Certifies position descriptions
- Responds to congressional inquiries

**Commercial**
- Develop policies
- Oversee contracts
- Prepares and formulates the budget
- Develop position descriptions
- Organize congressional inquiries

## T701 Management Headquarters - Transportation

| FC | Agy_Bur | I | CA |
| --- | --- | --- | --- |
| T701 | FHWA | 45 | 2 |
| T701 | FRA | 458 |  0 |
| T701 | MARAD | 22 | 0  |
| T701 | OST | 1 | 0  |
|   | Totals | 526 | 2 |

## T701 Management Headquarters - Transportation

- This function includes overseeing, directing, and controlling transportation programs and subordinate organizations.  This includes conducting mid- and long-range planning, programming, and budgeting; developing and issuing policies; providing policy guidance; reviewing, analyzing, and evaluating program performance; and, allocating and distributing resources. This function is carried out in the Washington Headquarters offices.

## Writing Justifications

- Inherently Governmental

## Inherently Governmental Justification Criteria

- The key elements of a complete justification include:
- A thorough definition of the activities performed including the specific program, administration, etc...
- The authority they exercise

## Inherently Governmental Justifications

- These FAA FTE bind the government to a course of action by adjudication of contract cases pursuant to the Contract Disputes Act, 41 U.S.C. § 601 et seq. They  include the conduct of formal or informal hearings that accord appropriate due process.
- These FTE have ultimate control over FAA’s Office of Budget. They implement overall agency budgetary policies, standards, and systems.

**Notes:**
Other examples

## Do these meet the criteria?

- The activities of this function require the signing of a formal contract, policy, regulation, authorization or order which obligates the Federal Government.
- This function includes activities that significantly affect the life, liberty, or property of private persons.

**Notes:**
Why not?
Specific activities are missing and / or the authority they can do it

## Inherently Governmental Justification Criteria

- The key elements of a complete justification include:
- A thorough definition of the activities performed including the specific program, administration, etc...
- The authority they exercise

## Commercial Activities

**Notes:**
What is a commercial activity?

## OMB & DOT

- The rebuttable presumption is that FTE are commercial reason code “B” unless justified in writing as inherently governmental, commercial reason code “A”, or other reason code.

## Commercial Activities

- Program analysis, cost analysis, efficiency reviews, and fact-finding
- Conducting reorganization and planning activities
- Feasibility studies
- Developing policy
- Development of regulations
- Support of acquisition planning
- Oversees contracts (COTR)
- Performs maintenance on motor vehicles
- Operates and oversees cafeterias

## Assigning Reason Codes

**Notes:**
Who can tell us what reason codes A-F are?

## Reason Codes

| A | Not appropriate for private sector performance. |
| --- | --- |
| B | Suitable for streamline/standard competition. |
| C | Function is currently being studied. |
| D | Performed by government personnel as the result of a standard or streamlined competition within the past 5 years. |
| E | Pending approved restructuring, closure, major reorganization effort, etc. |
| F | Performance of the commercial activity by government personnel is required due to a statutory prohibition against private sector performance.  |

## Commercial Reason Code A

## Commercial Reason Code A Designation Criteria

- Function requires specialized expertise of agency systems and procedures unique to the public sector or only limited available in the private sector
- Agency requires a sufficient number of trained and experienced staff with historical knowledge to ensure continual performance of a core function. (Core to the Mission.)
- Agency has set aside FTE for employment of physically and or mentally challenged individuals
- Function is performed by a student intern as a part of formalized program for federal recruitment

## C300 Accounting Technicians

| FC | Agy_Bur | I | CA | CB |
| --- | --- | --- | --- | --- |
| C300 | FHWA | 8 | 35.5 | 22.5 |
| C300 | MARAD | 0 | 3 | 0 |
| C300 | RITA | 1 | 1 | 0 |
|   | Totals | 9 | 39.5 | 22.5 |

## C300 Accounting Technicians

- This function includes account maintenance clerical and accounting technician _support activities requiring a basic understanding of accounting systems, policies, and procedures in performing or supervising the examination, verification, and maintenance of accounts and accounting data_.  Also included are technical audits, develop or install revised accounting procedures, or _perform similar quasi-professional accounting activities_.  Activities in this function require a knowledge of _existing accounting systems, standard accounting codes, classifications, and terminology_; an understanding of agency accounting policies, procedures, and requirements; and the ability to apply various accounting methods, forms and techniques, _but less than the broad understanding and theoretical knowledge of accounting acquired through professional education and training._

**Notes:**
C300 Accounting Technicians
C activities and C A

## Writing Justifications

**Commercial reason code A**

## Commercial Reason Code A Justification Criteria

- The key elements of a complete justification include:
- Justifications should reflect an appropriate and consistent application of criteria
- A thorough definition of the function performed, including required skills and responsibilities
- Clear explanation of why it is necessary for the commercial function to be categorized as unsuitable for competition
- They should contain enough information to enable a reasonable lay person to validate the function and reason code designations

## Commercial Reason Code A Justification Criteria

- Commercial reason code A justifications should answer the following questions:
- What _core _activities are performed by these FTE?
- What special skills or knowledge is required to perform the activity?
- Why are they not suitable for competition?

## Do these meet the criteria?

- Specialized knowledge and expertise of the FAA’s acquisition systems is required to adequately perform these functions
- A portion of the commercial work performed within this functional category requires retention of a sufficient number of FTE with specialized expertise in administering FHWA’s human resources systems, programs, and procedures

**Notes:**

Post it board

What is missing?
What are the functions.
Why they are core.
What special skills or knowledge is required.

## Commercial Reason Code A Justification Criteria

- Commercial reason code A justifications should answer the following questions:
- What _core _activities are performed by these FTE?
- What special skills or knowledge is required to perform the activity?
- Why are they not suitable for competition?

## Commercial Reason Code A Justification

- These FTE are responsible for leading the development and evaluation of new human resources information systems. They must have a broad knowledge of FHWA’s organization, operations, and business processes. FHWA requires a sufficient amount of FTE to ensure continual performance of a core function.

**Notes:**
What can be improved?

## Open Discussion

## Contacts

- Tom Kaplan
- Phone: **202-366-7784**
- Thomas.Kaplan@dot.gov
- Ames Owens
- Phone: **202-366-9614**
- Ames.Owens@dot.gov
- Robert Knauer
- Phone: **202-366-5143 **
- Robert.Knauer@dot.gov
- Lori Barbee, Consultant
- Phone: **202-863-4010**
- Lori.Barbee@quasars-inc.com

## A300 Safety

| FC | Agy_Bur | I | CA |
| --- | --- | --- | --- |
| A300 | FAA | 5 | 2 |
| A300 | FMCSA | 24 | 1 |
|   | Totals | 29 | 3 |

## A300 Safety

- This function includes the activities associated with facility inspection and monitoring to ensure a safe work environment.