Army Regulation 5–20

Management

Commercial

Activities

Program

Headquarters

Department of the Army

Washington, DC

1 October 1997

UNCLASSIFIED
SUMMARY of CHANGE

AR 5–20

Commercial Activities Program

This regulation--

o Implements Office of Management and Budget Circular A-76, DOD Directive

4100.15, and DOD Instruction 4100.33, as amended in 1996. It provides

guidance for managing and carrying out the Commercial Activities (CA)

program. It provides standards for determining if an activity is included in

the program, establishes procedures for review of activities to determine if

they must be operated by government personnel, and provides instructions for

studies to compare costs of contract vs in-house performance.

o Prescribes forms: DA Forms 5473-R, 5475-R, 5476-R, 5477-R, 5478-R, 5479-R,

5481-R, 7196-R, 7197-R, 7375-R, 7376-R, 7377-R, 7378-R, 7379-R, 7384-R and

7385-R. All references, uses, and instructions, for these prescribed forms

can be located in DA Pam 5-20. All of the above forms may be electronically

generated. The electronically generated forms must contain all data elements

and follow the exact format of the existing printed forms. All required

signatures must appear on the electronically generated forms. The form

numbers of the electronically generated forms will be shown with an ’-E’ after

the form number and the date will be the same as the date of the current

edition of the printed forms.
Headquarters

Department of the Army

Washington, DC

1 October 1997

Management

Commercial Activities Program

*Army Regulation 5–20

Effective 1 November 1997

History. This printing publishes a revision of

this publication. Because this publication has

been extensively revised, the changed portions

have not been highlighted.

Summary. This regulation implements Office of Management and Budget Circular A76, DOD Directive 4100.15, and DOD Instruction 4100.33. It provides guidance for

managing and carrying out the Commercial

Activities (CA) program. It provides standards for determining if an activity is included

in the program, establishes procedures for review of activities to determine if they must

be operated by government personnel, and

provides instructions for studies to compare

costs of contract vs in-house performance.

Decisions to perform work under contract are

made under the authority of the Armed Services Procurement Act and the Federal Acquisition Regulation and their supplements.

Applicability. This regulation applies to the

U. S. Active Army and the Active Army Reserve. It applies to all organizations that include commercial activities.

P r o p o n e n t a n d e x c e p t i o n a u t h o r i t y .

The proponent of this regulation is the Assistant Chief of Staff for Installation Managem e n t . T h e p r o p o n e n t h a s t h e a u t h o r i t y t o

approve exceptions to this regulation that are

consistent with controlling law and regulation. Proponents may delegate the approval

a u t h o r i t y , i n w r i t i n g , t o a d i v i s i o n c h i e f ,

within the proponent agency in the grade of

colonel or the civilian equivalent.

A r m ym a n a g e m e n tc o n t r o lp r o c e s s .

This regulation contains management control

provisions, but does not identify key management controls that must be evaluated.

Supplementation. Supplementation of this

r e g u l a t i o n a n d e s t a b l i s h m e n t o f c o m m a n d

and local forms are prohibited without prior

approval from HQDA (ACSIM), Washington, DC 20310-0600.

Suggested Improvements. Users are invited to send comments and suggested imp r o v e m e n t s o n D A 2 0 2 8 ( R e c o m m e n d e d

C h a n g e s P u b l i c a t i o n s a n d B l a n k F o r m s )

t h r o u g h a p p r o p r i a t e c o m m a n d c h a n n e l s t o

H Q D A ( A C S I M ) , A T T N : D A I M - O P , 6 0 0

A r m y P e n t a g o n , W a s h i n g t o n , D C 2 0 3 1 0 -

0600.

Distribution. Distribution of this regulation

is made in accordance with initial distribution

n u m b e r ( I D N ) 0 9 2 0 1 0 , i n t e n d e d f o r c o m -

mand levels C, D, and E for Active Army,

Army National Guard, and the U.S. Army

Reserve.

Contents (Listed by paragraph and page number)

Chapter 1

Introduction, page 1

Purpose • 1–1, page 1

References • 1–2, page 1

Explanation of Abbreviations and Terms • 1–3, page 1

Responsibilities • 1–4, page 1

General Policy • 1–5, page 2

Legislative/Administrative Exclusions • 1–6, page 2

Program Goal • 1–7, page 3

Chapter 2

Review of Commercial Activities, page 3

The Army Commercial Activities Inventory • 2–1, page 3

Inherently Governmental Activities • 2–2, page 3

Cost Competition Study Waivers • 2–3, page 3

New Requirements and Expansions • 2–4, page 3

Contract Reviews • 2–5, page 3

Post-MEO Performance Reviews • 2–6, page 4

Chapter 3

Personnel Considerations, page 4

Civilian Personnel Management • 3–1, page 4

Requirement to Consult with Employees • 3–2, page 4

Right of First Refusal • 3–3, page 4

Reduction-in-force (RIF) planning • 3–4, page 4

Military personnel • 3–5, page 4

Chapter 4

Cost Competition and Direct Conversion Studies, page 4

Section I

Study Criteria and Requirements, page 4

General • 4–1, page 4

Direct Conversions • 4–2, page 5

Streamlined Cost Competition Studies • 4–3, page 5

Intragovernmental Support (IGS) • 4–4, page 5

Reporting Requirements • 4–5, page 6

Releasing Program Information • 4–6, page 6

Section II

Acquisition Procedures, page 7

Performance Work Statements (PWS) • 4–7, page 7

Wage Rates (DA Pam 5-20, para 6-10) • 4–8, page 7

Solicitation (Invitation for Bids (IFB) or Request for Proposals

(RFP)) • 4–9, page 7

Contract Administration • 4–10, page 7

*This regulation supersedes AR 5-20 dated 21 October 1986.

AR 5–20 • 1 October 1997 i

UNCLASSIFIED
Contents—Continued

Occupational Safety and Health Act (OSHA) • 4–11, page 7

Section III

Management Study Procedures, page 7

Requirements for Management Studies • 4–12, page 7

Certification and Implementation of Most Efficient Organization

(MEO) • 4–13, page 8

Section IV

Independent Review, Cost Comparison, and Administrative

Appeals, page 8

Independent Review of the In-house Cost Estimate (DA Pam 5-20,

para 5-36) • 4–14, page 8

Cost Comparison Bid Opening (DA Pam 5-20, Chapter 7) • 4–15,

page 8

Administrative Appeals Procedure (DA Pam 5-20, para 7-6) 

• 4–16, page 8

Section V

Final Decisions, page 8

Final Decision Approval • 4–17, page 8

Economic Effects Analysis • 4–18, page 8

Appendix A. References, page 9

Glossary

Index

ii AR 5–20 • 1 October 1997
Chapter 1

Introduction

1–1. Purpose

T h i s r e g u l a t i o n p r o v i d e s p o l i c y a n d p r o c e d u r e s f o r d e t e r m i n i n g

whether recurring commercial activities should be operated (a) inhouse using Army facilities and personnel or (b) under contracts or

agreements with commercial sources, state and local governments,

and federal agencies outside the Department of Defense. This regulation implements Office of Management and Budget (OMB) Circular A-76, OMB Circular A-76 Revised Supplemental Handbook,

DOD Directive 4100.15, and DOD Instruction 4100.33. Deviations

from this regulation require prior written approval from HQDA

(DAIM-OP).

1–2. References

Required and related publications are listed in Appendix A.

1–3. Explanation of Abbreviations and Terms

Abbreviations and terms used in this regulation are explained in the

glossary.

1–4. Responsibilities

a. Assistant Secretary of the Army (Installations, Logistics and

Environment) (ASA(IL&E)). The ASA(IL&E) represents the Army

on CA Program issues with the Office of the Secretary of Defense

(OSD), other services, other federal agencies, the Office of Management and Budget, and the Congress, except as designated. The

ASA(IL&E) provides broad oversight for CA Program policies and

exceptions to policy.

b. Assistant Secretary of the Army (Research, Development, and

Acquisition) (ASA(RD&A)). The ASA(RD&A) provides acquisition

m a n a g e m e n t e x p e r t i s e a n d d e v e l o p s , c o o r d i n a t e s , a n d p u b l i s h e s

guidance on all aspects of procurement, such as but not limited to:

acquisition planning, source selection, service contracting, contract

administration, and quality assurance to support Army CA Program

implementation.

c. Assistant Secretary of the Army for Manpower and Reserve

Affairs (ASA(M&RA)). The ASA (M&RA) provides civilian personnel and manpower management expertise and reviews the uses

of anticipated and actual civilian space savings resulting from CA

program implementation.

d. Department of the Army (DA), Director, Small and Disadvantaged Business Utilization (SADBU). The DA, Director, SADBU

provides Small Business Program and Small Disadvantaged Business (SDB) expertise and develops, coordinates, and publishes guidance on SADBU policies and procedures to support Army CA

Program implementation.

e. General Counsel of the Army (GC). The GC advises the Army

Secretariat on all legal matters related to the CA Program.

f. Assistant Secretary of the Army (Financial Management &

Comptroller (ASA(FM&C)). The ASA(FM&C) provides financial

management and cost estimating expertise and, through its Budget

Liaison, SAFM-BUL, represents the Army on program issues before

the congressional appropriations committees.

g. Chief of Legislative Liaison (CLL). The CLL:

(1) Represents the Army on program issues before the congressional authorization committees.

(2) Monitors the development and passage of legislation affecting

the CA Program and provides ACSIM with timely reports on pertinent legislation.

(3) Notifies Congress of the Army’s intent to conduct cost competition studies, informs Congress of cost competition studies progress as required by statute, notifies Congress of cost competition

study results, and responds to specific congressional inquiries regarding cost competition studies.

h. Chief of Public Affairs (CPA). The CPA represents the Army

on CA Program issues before the news media and the public.

i. The Auditor General:

(1) Develops, coordinates, and publishes guidance for performing

independent reviews of CA cost competitions.

(2) Performs the independent review of CA cost competitions

involving more than 65 civilian FTEs. For cost competition studies

involving 65 or fewer civilian FTEs, the Auditor General will cond u c t t h e r e v i e w w h e n r e q u e s t e d , b a s e d o n t h e a v a i l a b i l i t y o f

resources.

(3) Publishes audit guides for performing independent review of

CA cost competitions.

(4) Reviews and approves contracts for CA independent reviews.

(5) In the independent review, the Auditor General will:

(a) Verify the reasonableness of cost estimates used in cost competition studies.

(b) Verify that the Most Efficient Organization (MEO) is based

o n t h e s a m e p e r f o r m a n c e r e q u i r e m e n t s a s i n c l u d e d i n t h e

solicitation.

j. The Inspector General (TIG). TIG conducts special assessments/inspections of the CA process upon request.

k. The Judge Advocate General (TJAG). TJAG provides legal

guidance, advice on legislation affecting the CA Program, and guidance to MACOM and installation Staff Judge Advocates (SJA) to

support CA Program implementation.

l. The Assistant Chief of Staff for Installation Management (ACSIM). The ACSIM serves as the single point of contact for HQDA

on issues affecting the CA Program. The ACSIM:

(1) Develops, coordinates, and publishes policies and procedures

to implement the CA Program.

(2) Maintains an inventory of all Army commercial activities and

cost competition studies.

(3) Reviews and approves all Army training criteria involving the

CA Program.

(4) Monitors and supports the execution of the program through

the MACOMs.

(5) Provides periodic reports to the senior leadership on cost

competition study progress and milestone management.

(6) Responds to requests for deviation from this regulation.

m. Deputy Chief of Staff for Operations and Plans (DCSOPS).

The DCSOPS:

(1) Provides force structure and skill sustainment expertise and,

in coordination with DCSPER and ASA (M&RA), reviews the uses

of anticipated and actual military space savings resulting from CA

program implementation.

(2) Reviews requests for functions to revert to in-house operations when contracted work is recommended for transfer to MTOE

units.

n . D e p u t y C h i e f o f S t a f f f o r P e r s o n n e l ( D C S P E R ) . T h e

DCSPER:

(1) Provides military personnel management expertise.

(2) In coordination with DCSPER and ASA (M&RA), reviews

the uses of anticipated and actual military space savings resulting

from CA Program implementation.

(3) Develops, coordinates, and publishes rotation base policy.

o. Functional proponents. HQDA elements that are functional

proponents for commercial activities will:

(1) Designate an official as the point of contact for resolving CA

program-related issues.

(2) Participate in review of proposed exceptions to CA policies

and procedures.

(3) Review guidance on improvements in staffing, organization

structure, and work methods to increase the operating efficiency and

competitiveness of the commercial activities for which they are

proponent.

(4) Provide lessons learned on competitions.

p. Field operating agency (FOA) and staff support agency (SSA)

proponents. HQDA elements that are proponents for FOAs and

SSAs have CA Program management responsibility for the FOA or

SSA equivalent to the MACOM for management of installation CA

Programs.

q. MACOM commanders. Commanders of Major Army Commands will:

AR 5–20 • 1 October 1997 1
(1) Ensure that cost competition studies are conducted until all

identified potential CAs have been studied.

(2) Direct, manage, and implement the Army CA program by:

(a) Providing written guidance and on-site assistance to installation cost competition study efforts.

(b) Maintaining an inventory record of all commercial activities

in the command.

(c) Conducting post-MEO performance reviews of not less than

20 percent of the functions performed in-house or by IGS as a result

of cost competition studies.

(3) Maintain and document actual resource savings (funds and

military and civilian authorizations) resulting from CA program

implementation.

(4) Provide training on the policies and procedures of the CA

program to ensure the skills necessary to meet the requirements of

this regulation.

r. Installation Commanders. Commanders of installations, FOAs,

SSAs, and of other organizations that report directly to a MACOM

will:

(1) Ensure that personnel are trained in policies and procedures

of the CA program to obtain the skills necessary to meet the requirements of this regulation.

(2) Maintain an inventory of all commercial activities.

(3) Review the cost of commercial activities (in-house, contract,

and IGS), identify ways to improve efficiency, and implement identified improvements (para 2-5).

(4) Select the commercial activities for direct conversion (para 4-

2) and cost competition studies.

(5) Conduct direct conversion and cost competition studies following the procedures outlined in this regulation and in DA Pam 5-

20.

(6) For CAs with 11 or more civilian employees, certify before

cost comparison bid opening (also known as initial decision or

tentative decision) that the in-house organization reflected in the

cost comparison is the MEO.

(7) Ensure that the in-house, contract, or IGS activities operate in

the most cost effective and efficient manner after the cost comparison decision.

(8) Maintain and document actual resource savings (funds, and

military and civilian authorizations) resulting from CA program

implementation.

(9) Make every effort to avoid the involuntary separation of permanent employees and assist all employees adversely affected by

direct conversions and CA cost competitions in finding suitable

employment. These efforts will include retraining, job placement

assistance, and first-refusal rights to jobs with the contractor (Federal Acquisition Regulation (FAR) 52.207-3). (DA Pam 5-20, Chapter

10.)

(10) Provide contracting and other support that tenants need to

implement their CA program.

(11) Complete cost competition studies in the shortest time possible. (DA Pam 5-20, paragraph 2-4). Report through the MACOM to

HQDA on all cost competition studies that exceed 18 months for a

single-function study and 36 months for a multi-function study (paragraph 4-5c below).

(12) Appoint a CA program manager to manage the implementation of the CA Program. (DA Pam 5-20, paragraph 2-3)

(13) Provide information on the CA competition process to managers, employees, labor unions, and other employee representatives

to promote understanding of the program’s objectives, to provide

the opportunity to contribute to the competition process, and to gain

support for program implementation.

1–5. General Policy

a. Operate with the minimum required resources.

b. Obtain commercial activities services at the required quality

and quantity of work at the lowest possible cost.

c. Perform a Full or Streamlined Cost Competition study IAW

DA Pam 5-20, CA Study Guide—

(1) Before converting a CA from in-house to contract performance or from contract to in-house performance, except as provided

in paragraph 4-2.

(2) Before starting or expanding any CA, as provided in paragraph 2-4.

(3) Before converting a CA to or from performance by a nonDOD Intragovernmental Support (IGS) provider, except as provided

in paragraph 4-4.

(4) Before converting a CA to or from performance by State or

local government agency except for emergency circumstances such

as disaster relief requirements.

d. Obtain MACOM approval before converting any activity to or

from contract, in-house or IGS performance, as provided in paragraph 4-5d.

e. Use procedures in DA Pam 5-20, paragraph 5-1 for Cost Competition studies for Federal Aircraft or Aviation Services and Motor

Vehicle Fleet Management Services.

f. Complete cost competition studies in the shortest time possible,

but not to exceed 18 months for a single-function activity or 36

months for a multi-function activity (from public announcement to

cost comparison bid opening).

g. Obtain HQDA approval before providing commercial activities

to the private sector.

h. Manpower requirements determination processes will not be

conducted on functional areas announced for cost competition study

or on which cost competition study has been completed in the last

year.

i. Commercial activities shall not be modified, reorganized, divided, or in any way changed for the purpose of circumventing the

requirements of this regulation.

j. This regulation does not apply in times of war or military

mobilization.

1–6. Legislative/Administrative Exclusions

a. Depot-level maintenance of mission-essential materiel at Army

depots (core logistics). The Secretary of Defense may waive this

exclusion on a case-by-case basis. (10 USC 2464, 2466, and 2469).

MACOM requests to waive this exclusion and use the procedures in

this regulation will confirm all of the following:

(1) Private sector performance will not adversely affect mobilization requirements or other readiness considerations.

(2) The private sector is capable of providing the technical competence and resources necessary to perform the activity.

(3) The private sector is capable of performing if surges occur.

(4) The activity is separable from those core logistics activities

that do require performance by Army personnel.

(5) The Army retains essential management responsibility.

(6) The Army retains ownership and accountability of essential

facilities and equipment.

b. Fire protection and security guard services performed by Army

personnel (10 USC 2465). However, the cost competition requirements apply to fire protection and security guard services already

under contract. This prohibition does not apply to purely civil works

fire protection and security guard functions, as these are funded

through separate civil works appropriations and not through DOD

appropriated funds.

c. Operation of the Crane and McAlester ammunition plants.

(Public Law 99-661)

d. Installations that are 180 days from closure as a result of

BRAC action. Contracts must not start before the announced closure

date. Police services, fire protection services, and airfield operations

at BRAC installations may be contracted with the local government.

(Public Law 103-160, section 2907)

e. Production operations performed in contractor-owned plants

(10 USC 4532, often known as the “Arsenal Act” ).

f. Purely civil works functions funded entirely by civil works

appropriations. CA Program policy and procedures for purely civil

works and mixed funded activities are contained in U.S. Army

Corps of Engineers regulation ER 5-1-3.

g. OCONUS commanders may conduct cost competition studies

2 AR 5–20 • 1 October 1997
for commercial activities when doing so conforms with applicable

laws, treaties, and international agreements.

h. Consulting services (governed by AR 5-14).

i. Operations funded entirely by non-appropriated funds (NAF).

However, this regulation is mandatory for CA when they are staffed

partially with DoD employees paid by or reimbursed from appropriated funds, such as libraries, child development centers, and other

morale, welfare, and recreation (MWR) activities. Also, when rel a t e d i n s t a l l a t i o n s u p p o r t f u n c t i o n s a r e b e i n g s t u d i e d , t h e c o m -

mander may decide that it is practical to include these functions.

j. Privatization of a commercial activity, when the Army transfers

ownership, control, and responsibility for performance of the activity, is not a commercial activity conversion to contractor performance. For example, privatization of a wastewater treatment plant or

an electrical distribution system may be accomplished by transferring ownership of facilities, with or without land, along with the

operation and maintenance responsibility for the plant or system, to

a commercial utility company. The transfer to a non-federal entity

ends Army involvement in the activity and provision of service. The

Army no longer determines requirements or provides quality assurance for the service, and does not have control of provision of the

service or operation and maintenance of the facility. These privatizations are not subject to the cost competition requirements of this

regulation.

1–7. Program Goal

The goal of the Army’s Commercial Activities (CA) Program is to

obtain the most cost effective commercial services through fair and

o p e n c o m p e t i t i o n , c o n s i s t e n t w i t h t h e A r m y ’ s n a t i o n a l d e f e n s e

requirements.

Chapter 2

Review of Commercial Activities

2–1. The Army Commercial Activities Inventory

The Army CA Inventory, a listing of all CAs performed by or for

the Army, provides information on the location of the CAs, the

functions they perform, and the resources spent to perform them. All

CAs will be entered in the CA Inventory, including those currently

exempted from cost competition study. The CA Inventory provides

the information necessary for annual reports to the Congress required by law.

2–2. Inherently Governmental Activities

a. Governmental functions are services that are so intimately

related to the public interest that only government personnel can

perform the work. These include activities which require the exercise of discretionary authority to set or change regulatory policies,

or to make value judgments in the act of governing. Office of

Federal Procurement Policy Letter 92-1 (DA Pam 5-20, Appendix

D ) p r o v i d e s g u i d a n c e o n i d e n t i f y i n g i n h e r e n t l y g o v e r n m e n t a l

functions.

b. Activities considered contractible may include individual positions that perform noncontractible (governmental) functions. Competition planners should identify the governmental functions (not

positions) at the outset of the cost competition study process. The

management study conducted during the cost competition study

process will identify MEO for both governmental and contractible

functions, but the governmental functions will not be included in the

cost comparison and may not be converted to contract.

2–3. Cost Competition Study Waivers

Requests for waivers to allow conversion to or from in-house, contract or IGS without cost competition study must be submitted

through command channels to the ASA(IL&E) for approval.

a . T h e w a i v e r r e q u e s t m u s t c o n t a i n d o c u m e n t a t i o n t h a t

demonstrates:

(1) The conversion will result in a financial improvement (greater

than the conversion differential) or service quality improvement and

will not significantly reduce the level or quality of competition of

future performance of the work; or

(2) In-house or contract offers have no reasonable expectation of

w i n n i n g a c o s t c o m p e t i t i o n c o n d u c t e d i n a c c o r d a n c e w i t h t h i s

regulation.

b. The waiver request must also contain documentation that demonstrates that the various legal restrictions on converting DOD funct i o n s t o c o n t r a c t ( s u c h a s S e c t i o n 8 0 1 5 o f t h e F Y 9 7 D O D

Appropriations Act and 10 USC 2461, 2462, and 2465) do not

apply. (Approval of an “OMB Circular A-76 waiver” does not

constitute a waiver of any law.)

c. Justification for a waiver is subject to administrative appeal

procedures, but a decision not to issue a waiver is not subject to

appeal.

d. Federal employees adversely affected by a decision to waive a

cost competition study shall be afforded the same personnel considerations provided in Chapter 3 of this regulation.

2–4. New Requirements and Expansions

a. New Requirements. A new requirement will be obtained by a

competitively awarded contract. If there is reason to believe that the

contract service quality or price may be unreasonable, a cost competition study is conducted to justify in-house or IGS performance. A

DA Form 7375-R (Commercial Activities Proposed Action Summar y ) ( C P A S - p a r a g r a p h s 4 - 5 d & e ) w i l l b e s u b m i t t e d t o t h e

MACOM for approval before beginning the cost competition study.

(DA Pam 5-20, paragraph 2-5)

b. Expanding In-House Activities. An expansion is the modernization, replacement, upgrading or the enlargement of an in-house

commercial activity or capability. If the expansion involves a 30-

percent increase in the operating cost of the activity, a 30-percent

increase in the total capital investment to perform the activity, or an

increase of 65 civilian FTEs or more, a cost competition study of

the entire activity is required prior to authorizing in-house performance of the expanded workload. A consolidation of two or more

existing commercial activities is not an expansion unless the total

operating cost is 30 percent greater than the total of the individual

components or it requires an increase of 65 civilian FTEs or more.

A DA Form 7375-R will be submitted to the MACOM for approval

before beginning the cost competition study.

2–5. Contract Reviews

a. Contracted CAs will be continually monitored to ensure that

performance is satisfactory and cost effective.

b. If a contractor selected through the cost competition study

defaults during the first year of performance, the following procedures apply:

(1) If the next offeror in line for award from the cost competition

study is still available and is willing to accept the balance of the

work at the offered price, adjusted on a pro rata basis for the

remainder of the contract term, the contracting officer will award to

that offeror.

(2) If the MEO is the next lowest price, and MEO implementat i o n i s s t i l l f e a s i b l e , t h e n t h e a c t i v i t y w i l l r e t u r n t o i n - h o u s e

performance

(3) If (1) and (2) above do not apply, then either issue a solicitation to return activities to the private sector without a cost competit i o n s t u d y , r e p r o c u r e f r o m a n o t h e r c o n t r a c t o r w h o o f f e r e d a

reasonable price on the original solicitation, or initiate a Transfer

Cost Competition Study to justify conversion to in-house or IGS not

later than six months after the original contractor defaults.

c. If the contractor defaults after the first year of performance,

the following procedures apply:

(1) Seek interim contract support. If interim contract support is

not feasible, MACOM may approve in-house or IGS performance

on a temporary or emergency basis not to exceed one year. Installations will staff interim commercial activities solely with temporarystatus civilian employees, permanent employees on temporary assignment, or the use of soldiers on special duty. Impacts of special

AR 5–20 • 1 October 1997 3
duty on readiness must be reported in accordance with provisions of

AR 220-1.

(2) Issue a solicitation to return interim activities to the private

sector without a cost competition, reprocure from another contractor

who offered a reasonable price on the original solicitation, or initiate

a Transfer Cost Competition Study to justify conversion to in-house

o r I G S n o t l a t e r t h a n s i x m o n t h s a f t e r t h e o r i g i n a l c o n t r a c t o r

defaults.

d. In case of an emergency, the procedures in paragraph c(1)

above apply.

e. If the contract quality is unacceptable or the price increases

significantly, the contracting officer will negotiate with the contractor to obtain reasonable prices or acceptable quality. If negotiation

fails, and resolicitation does not result in reasonable prices, the

installation will conduct a Transfer Cost Competition Study to just i f y c o n v e r s i o n t o i n - h o u s e o r I G S p e r f o r m a n c e . N o t i f y t h e

MACOM that the manpower required to perform the activity inhouse is or is not available prior to issuing solicitation.

f. Before beginning a Transfer Cost Competition Study (DA Pam

5-20, Chapter 9) and transferring contracted work to in-house performance, the commander will submit a DA Form 7375-R to the

MACOM for approval.

g. Commanders may temporarily transfer contracted work to inhouse performance by MTOE units without a cost competition study

when required for unit training or sustainment of critical skills.

C o m m a n d e r s w i l l r e q u e s t a n d o b t a i n H Q D A a p p r o v a l t h r o u g h

MACOM before transferring contracted work to a MTOE unit.

When the unit departs the installation or no longer requires the work

to satisfy training requirements, the installation will resolicit to return the work to contract performance.

2–6. Post-MEO Performance Reviews

a. When services are performed in-house as a result of a cost

competition study, including those involving IGS, a Post-MEO Performance Review of the MEO will be conducted at the end of the

first full year of performance (DA Pam 5-20, paragraph 10-10). If

the review reveals failure to implement the MEO in accordance with

transition and management plans and deficiencies are not corrected,

the contracting officer will reaward the work to the next offeror who

participated in the cost competition study. If award to the next

offeror in line is not feasible, a cost competition study will be

initiated.

b. The organization, position structure, and staffing of the reorganized activity (MEO) will not normally be altered for at least one

year after the final decision. The exception is that the MEO may be

changed in the first year if significant changes are made to the

f u n c t i o n s a n d w o r k l o a d s i n t h e P e r f o r m a n c e W o r k S t a t e m e n t

(PWS). After the activity is reorganized into the MEO, it will

operate under the performance standards established by the PWS

and solicitation package just as a contractor would have been expected to do. The performance standards will be modified when any

changes in functions or workloads occur after the initial reorganization. Any reorganization or changes to the MEO during the first

year will be fully documented to show the reasons for the change

and will be included in the cost study records.

c. The MACOM will review not less than 20% of the functions

performed in-house as a result of a cost competition study completed in the prior year. This review will be conducted after one full

year of performance.

Chapter 3

Personnel Considerations

This chapter provides guidance on impact of CA cost competition

studies and direct conversions on civilian and military personnel.

3–1. Civilian Personnel Management

Commanders will ensure that the Civilian Personnel Activity Center

(CPAC) is brought into the CA planning, review, and conduct of

cost competition studies from the beginning of the process. The

CPAC, as a representative of the commander, should coordinate

with the Civilian Personnel Operations Center (CPOC), management

officials, the Equal Employment Opportunity Office, employees,

and union officials to minimize personnel turbulence and adverse

effects on employees.

3–2. Requirement to Consult with Employees

At least monthly during the conduct of the cost competition or

direct conversion study, commanders shall consult with civilian employees who will be affected by the study and consider their views

on the development and preparation of the PWS and management

study. (10 USC 2467)

3–3. Right of First Refusal

Federal employees and existing Federal support contract employees

adversely affected by a decision to convert to contract or IGS

performance have the Right-of-First-Refusal for jobs for which they

are qualified. A standard clause is included in direct conversion and

cost competition study solicitations notifying potential contractors of

this requirement (see FAR 52.207-3).

3–4. Reduction-in-force (RIF) planning

The goal of RIF planning is to minimize adverse personnel actions.

Every reasonable effort will be made to place or retrain civilian

employees displaced as a result of CA cost competition studies and

direct conversions. Where no vacancies exist or are projected, coordinate with appropriate state employment offices to pursue possibilities for retraining opportunities under the Job Training Partnership

Act or similar retraining programs for transitioning to the private

sector. A RIF may be unavoidable even after all reasonable placement efforts have been made. In that event, every effort will be

made to help separated employees find continuing employment elsewhere, particularly through first refusal rights with the CA contractor. (DA Pam 5-20, paragraph 2-10)

3–5. Military personnel

Military positions may be included in the MEO and retained if the

cost comparison results in an in-house decision, provided they meet

the military essentiality criteria of AR 570-4 and are properly documented in authorization documents. In the event of a contract or

IGS decision, military personnel will be reassigned IAW appropriate

Army regulations. While uniformed positions may or may not be

converted to civilian positions as a part of this process, the conversion of in-house civilian positions to military is not authorized.

Chapter 4

Cost Competition and Direct Conversion Studies

Section I

Study Criteria and Requirements

4–1. General

Cost competition studies determine whether a CA will be performed

by in-house, contract, or IGS personnel. This method of performance is used for future work unless a later cost competition study

changes the determination. Except where criteria in paragraphs 1-6

or 4-2 are met, activities shall not be converted to or from in-house,

contract, or IGS performance without a cost competition study. A

DA Form 7375-R paragraphs 4-5d & e will be submitted to the

M A C O M f o r a p p r o v a l b e f o r e b e g i n n i n g a n d a F i n a l D e c i s i o n

Report before implementing a Full Cost Competition Study, a direct

conversion study (para 4-2) or a Streamlined Cost Competition

Study (para 4-3). The six major process components of a Full Cost

Competition Study are:

a. Development of a Performance Work Statement (PWS). (DA

Pam 5-20, Chapter 3)

b . D e v e l o p m e n t o f a Q u a l i t y A s s u r a n c e S u r v e i l l a n c e P l a n

(QASP). (DA Pam 5-20, para 8-6)

4 AR 5–20 • 1 October 1997
c. Performance of a management study which includes the development of the in-house Most Efficient Organization (MEO). (DA

Pam 5-20, Chapter 4)

d. Cost estimating. (DA Pam 5-20, Chapter 5)

e. Issuance of a Solicitation (Request for Proposals (RFP) or

Invitation for Bids (IFB)). (DA Pam 5-20, Chapter 6)

f. Cost Comparison (comparison of the in-house bid against a

proposed contract or IGS price) and the administrative appeal process. (DA Pam 5-20, Chapter 7)

4–2. Direct Conversions

A Full or Streamlined Cost Competition Study is required unless the

function meets one of the following conditions:

a. Ten or fewer in-house civilian employees. The commander

may convert in-house or IGS activities performed by 10 or fewer inhouse civilian employees (and any number of military personnel) to

contract, without a cost competition study, if (1) the contracting

officer determines that offerors will provide required levels of service quality at fair and reasonable prices and (2) the Table of Distribution and Allowances (TDA) for the activity had 10 or fewer

civilian authorizations on 30 Mar 94, the date of the passage of the

Federal Workforce Restructuring Act of 1994 (Public Law 103-

226).

b. Small contracts. The commander may convert contracted activities to in-house or IGS without a cost competition study if (1) the

work can be performed in-house by 10 or fewer civilian FTEs and

(2) the contracting officer determines that performance is unsatisfactory or that fair and reasonable prices cannot be otherwise obtained.

c. Eleven to forty-five civilian employees. The commander may

convert in-house activities performed by 11 to 45 civilian employees

and any number of military personnel to contract or IGS, without a

cost competition study, if (1) fair and reasonable prices can be

obtained through competitive award, (2) all directly affected Federal

employees serving on permanent appointments are reassigned to

other comparable Federal positions for which they are qualified, and

(3) the existing in-house organization is certified as the MEO.

d. Preferential Procurement Programs. The commander may convert in-house activities of any size to contract performance without a

cost competition study if the contract is awarded to a required

source of supplies and services as defined in FAR Part 8 at a fair

market price, even if the conversion results in adverse employee

actions.

e. Installations scheduled to close within 180 days.

f. Functions designated for termination on a specified date. Req u e s t s w i l l b e s u b m i t t e d t h r o u g h t h e M A C O M t o H Q D A f o r

approval.

g. IGS. (See para 4-4 for criteria under which conversions are

authorized without cost competition study).

h. National Defense or Intelligence Security. Commercial activities may be performed by in-house, contract or IGS, without cost

competition study, when required to assure the national defense or

national intelligence security. The Secretary of Defense, or designee,

approves national defense justifications. The Director of Central

Intelligence, or designee, approves national security justifications.

i. Patient Care. Commercial activities at government-owned hospitals or other health facilities may be performed by in-house, IGS

or contract, without cost competition study, when needed to maintain the quality of direct patient care. Requests will be submitted

through the MACOM to HQDA for approval.

j. Research and Development (R&D). R&D activities may be

converted to or from in-house, contract or IGS without cost competition study. However, severable R&D support activities are subject

to the cost competition study provisions of this regulation.

k. CAs staffed solely with military personnel, regardless of size,

may be converted to contract without a cost competition study when

the contracting officer determines that offerors will provide required

levels of service quality at fair and reasonable prices.

4–3. Streamlined Cost Competition Studies

Streamlined Cost Competition study procedures (DA Pam 5-20, para

5-22) may be used to convert in-house activities to contract or IGS

performance when all of the following criteria are met:

a. The activity is staffed with 65 or fewer civilian FTEs and any

number of military personnel (and the study has been announced to

Congress IAW paragraph 4-5e(1) below if the activity is being

performed by more than 45 civilian employees);

b. The commander or designee certifies the existing in-house

organization as the MEO;

c. The activity is one that competes largely on a labor and material cost basis such as, but not limited to, custodial, grounds, refuse,

pest control, warehousing, and maintenance services;

d. The activity will not require significant capital asset purchases

or all equipment requirements will be government furnished/contractor operated; and

e. The activity is commonly contracted by the government and/or

private sector; for example, there are not less than four comparable

Defense contracts of the same general type and scope and the range

of the existing service contract costs are reasonably grouped.

4–4. Intragovernmental Support (IGS)

IGS may offer the opportunity to reduce costs through economies of

scale. The cost competition study procedures established by this

regulation are to be used to determine when services should be

performed by in-house, contract, or IGS resources. For the purpose

of the IGS provisions of this regulation, the term IGS is defined as

support provided by or to a Federal agency outside DOD. Support

agreements with other Army, Navy, or Air Force installations or

with other DOD activities are not governed by this regulation, with

the following two exceptions: (1) A cost competition study is required when a Support Agreement with another DOD activity would

result in a change to or from contract performance and (2) pursuant

to OMB Circular A-126, a cost competition study shall be conducted before providing aviation services (DA Pam 5-20, App C).

a. Prior to 1 Oct 97. To encourage consideration of IGSs, commanders may consolidate existing, new, or expanded work requirements to IGSs, without cost competition study, if:

(1) That work is transferred prior to 1 Oct 97.

(2) The consolidation does not result in a conversion of work to

or from contract performance.

(3) The conversion is not otherwise authorized by this regulation.

b. Effective 1 Oct 97.

(1) Existing IGS may be continued or renewed without cost competition study. Also, support services may be consolidated into new,

intra-service revolving or franchise funds without cost competition

study provided the consolidation does not change the method of

performance.

(2) New or expanded IGS support requests must be justified by a

cost competition study.

(3) If the IGS provider has competed the same type work with

the private sector, the provider may increase capacity up to 30

percent or 65 civilian FTEs without a cost competition study. If a

new or expanded IGS would result in a conversion of work to or

from in-house or contract performance and a cost competition study

has not previously justified the provider’s method of performance, a

cost competition study is required.

c. Cost competition studies conducted to justify IGS are subject

to independent review and appeal.

d. The commander may, with proper notification to the provider,

terminate an IGS and convert directly to contract performance without a cost competition study. However, a cost competition study is

required to convert the work to in-house performance..

e. A prospective provider responding to a formal solicitation shall

submit to the requesting agency a synopsis, management plan, and

c e r t i f i c a t i o n t h a t t h e p r o v i d e r ’ s r e i m b u r s a b l e c o s t e s t i m a t e i s

developed in accordance with this regulation. A complete response

as required by the FAR is not required.

f. Under no conditions shall cost comparison bid opening or contract award be canceled or otherwise delayed in order to permit an

IGS offeror to submit a price or reimbursable rate.

g. The requester may accept or reject the prospective provider’s

AR 5–20 • 1 October 1997 5
offer as technically qualified or unqualified as it deems appropriate

and without appeal.

h. Commanders who wish to provide commercial activities to

another agency may petition the agency to conduct a cost competition study.

i. Cost competition studies must be conducted prior to offering to

provide or receive commercial services to or from state or local

government agencies except for emergency circumstances such as

disaster relief requirements.

4–5. Reporting Requirements

a. CA Inventory. Inventory of all Army commercial activities

will be maintained at all command levels. The Army CA Inventory

includes information, by CA Function Code (DA Pam 5-20, App E),

on all in-house and contracted activities, whether or not such activities are subject to the cost competition requirements of this regulation. Commanders may update their CA Inventory as changes are

m a d e a n d w i l l s u b m i t t h e i r u p d a t e d C A I n v e n t o r y ( R C S D D -

A & L ( A ) - 1 5 4 0 ) i n a c c o r d a n c e w i t h a n n u a l g u i d a n c e i s s u e d b y

HQDA. As specified in DODI 4100.33, HQDA submits the CA

Inventory to OSD by the first workday in January each year.

b. ACAMIS. The Army CA Management Information System

(ACAMIS) provides information on and status of all cost competition and direct conversion studies. Upon receipt of a CPAS, the

MACOM will obtain a study number from HQDA and provide it to

the installation to include in ACAMIS. Commanders should initiate

a record in ACAMIS upon receipt of the study number and update

ACAMIS as changes are made. Commanders will submit their updated ACAMIS (RCS DD-A&L(Q)-1542) in accordance with guidance issued periodically by HQDA.

c. 18-month/36-month report. Commanders will forward a report

through the MACOM to HQDA for each cost competition study that

may exceed 18 months for a single-function study or 36 months for

a multi-function study (from public announcement to cost comparison bid opening). Include in the report the location/function studied,

number of FTEs affected, description of problems encountered, remedial actions, status, announcement date, originally projected cost

c o m p a r i s o n d a t e , a n d l a t e s t p r o j e c t e d c o s t c o m p a r i s o n d a t e .

MACOM will forward the report to HQDA 30 calendar days before

t h e d a t e t h e a b o v e t i m e f r a m e s m a y b e e x c e e d e d . I A W D O D I

4100.33, HQDA submits this report to OSD one month before the

date the above timeframes may be exceeded.

d. CPAS and Final Decision Report. Commanders will submit for

MACOM approval a DA Form 7375-R (Commercial Activities Proposed Action Summary) (CPAS) (RCS CSCOA-112) before beginning and a DA Form 7379-R (Commercial Activities Final Decision

Report) (RCS CSCOA-113) before implementing the results of any

cost competition or direct conversion (in-house to contract or contract to in-house) — but must wait for Congressional notification

before proceeding in the instances covered in paragraph 4-5e below.

(DA Pam 5-20, paras 2-5 and 7-8.) MACOMs will forward a copy

of the approved DA Form 7375-R to HQDA (DAIM-OP) within 5

business days of approval.

e. Congressional Notifications.

(1) Pre-study Announcement (over 45 civilian employees). IAW

10 USC 2461, a pre-study Congressional announcement is required

before beginning a cost competition study of an in-house activity

being performed by more than 45 civilian employees. The MACOM

submits a request for Congressional announcement to the HQDA

Office of the Chief Legislative Liaison (OCLL) upon receipt of a

DA Form 7375-R from an installation. (DA Pam 5-20, para 2-6)

(2) Final Decision Notification (over 10 civilian employees). This

notification is required after final decision but before the decision is

implemented, for a cost competition study of an in-house activity

being performed by more than 10 civilian employees. The MACOM

submits a request for Congressional notification to OCLL upon

receipt of the DA Form 7379-R from an installation. The report

must be received at MACOM not later than 10 working days before

the desired final decision implementation date. The desired final

decision implementation date is the date desired to cancel the solicitation and award the contract, provide authority to proceed with

conditional award, or implement the MEO. (DA Pam 5-20, para 7-

8)

(3) Military personnel are not counted when determining if congressional notification is required.

4–6. Releasing Program Information

a. Release of Public Announcements. Periodic announcements

will be made to affected employees and other interested parties on

direct conversion and cost competition study plans and progress.

This includes the following as a minimum:

(1) The local commander announces the intent to conduct a cost

competition study or direct conversion immediately after OCLL

announces the study to Congress (if required) and the MACOM

returns the approved DA Form 7375-R to the installation. (DA Pam

5-20, paras 2-5 & 2-6) By law (10 USC 2467), the commander must

consult with the affected work force at least monthly throughout the

course of the study and consider their views on the development and

preparation of the PWS and management study. (DA Pam 5-20,

paras 2-8 & 2-9) (Note: Management reserves the authority to determine MEO resources, but affected employees or their representat i v e s a r e e n c o u r a g e d t o p a r t i c i p a t e i n d e v e l o p i n g m a n a g e m e n t

improvements.)

(2) At the cost comparison bid opening for a full cost competition study, the contracting officer announces the initial results as

well as the start date and duration of the public review and appeals

period.

(3) For a Streamlined Cost Competition Study, the initial decision will be announced after completing the comparison of in-house

and contract or IGS costs.

( 4 ) F o r d i r e c t c o n v e r s i o n s a n d S t r e a m l i n e d C o s t C o m p e t i t i o n

Studies, the local commander announces the conversion after the

contract is signed but before it is provided to the contractor.

b. Information Requests and the Freedom of Information Act

(FOIA). The FOIA (Exemption 5), DODD 5400.7-R, and AR 25-55

exempt from disclosure the cost competition study information listed below before cost comparison bid opening. The commander will

appoint an installation official to receive information requests and

release information related to the cost competition study. That official is normally the contracting officer. The releasing official will

follow the guidelines in the FOIA, DODD 5400.7-R, and AR 25-55

when responding to all information requests.

(1) The releasing official will consult with the CA Program Manager, legal advisor, the study team leader, the contracting officer,

and the manager of the competing CA before responding to each

information request.

(2) The releasing official will not release any information that

reveals the in-house cost estimate or from which the in-house estimate could be readily derived before the cost comparison. Such

information is exempt from release under the FOIA. This includes:

(a) The in-house cost estimate.

(b) The proposed TDA for the MEO.

(c) The management study report.

(d) Preliminary management studies and products of manpower

requirements determination processes if they reveal the in-house

staffing estimates.

(e) Budgets for the activity if they show the projected operating

costs or personnel resources of the MEO.

(3) For Streamlined Cost Competition Studies only, cost competition study information and backup documentation is provided to

affected parties prior to solicitation.

(4) The installation will provide contractors or IGS offerors with

the information required to fully understand the nature and scope of

work in the commercial activity. Information that normally should

be provided to requesters includes:

(a) Past, current, or projected workload requirements necessary

for a contractor or IGS offeror to prepare an offer.

(b) Past or current TDA documents and staffing information unless past or current TDA is the MEO.

(c) Past or current operating procedures.

6 AR 5–20 • 1 October 1997
(d) Past budget execution reports or other historical reports on

resource consumption and the total cost of operations.

c. Contractors’ Tours of Army Facilities. The functional manager

should caution affected employees about talking with contractor

representatives during site visits and establish guidelines for recognizing authorized and unauthorized visitors. The contracting officer

is the contractors’ only authorized source of information on questions relating to the competing activity.

Section II

Acquisition Procedures

Action to conduct a cost competition of an activity will proceed

with the assumption that commercial sources are available and fair

and reasonable prices and acceptable service can be obtained. Determination that there are no available commercial sources will be

made only if there is no acceptable response to an unrestricted

solicitation for the activity being studied.

4–7. Performance Work Statements (PWS)

A PWS will be developed for all Cost Competition Studies. The

PWS will describe all functional and performance requirements of

the work, the location of the work, the units of work, the quantity of

work units, and the quality and timeliness of the work units. (DA

Pam 5-20, Chapter 3)

a. Facilities and equipment. According to general policy set forth

in the FAR, the government will offer or not offer existing facilities

and equipment to a contractor depending on which is in the government’s best interest. Offering the facilities and equipment on hand,

and programmed for use by the MEO, to prospective contractor is

normally in the government’s best interest as the most economical

and competition-enhancing alternative. The decision not to offer

existing facilities and equipment to prospective contractors will be

based on a comprehensive, documented analysis of the costs and

benefits of offering versus reprogramming the facilities and equipment. (DA Pam 5-20, paragraph 3-10)

b. Supplies and materials. The contractor will normally provide

the supplies and materials necessary to perform the work described

in the contract or IGS agreement. The policy regarding contractor

use of government supply sources is set forth in FAR 51.101. The

contracting officer may authorize contractors to use government

supply systems under cost-reimbursement contracts after contract

award, based on specific requests, justification, and adherence to

stated procedures for ordering, furnishing assistance, payment and

title transfer. (DA Pam 5-20, para 3-10)

4–8. Wage Rates (DA Pam 5-20, para 6-10)

Commercial activities contracts may require the application of the

Service Contract Act (SCA) or the Davis-Bacon Act (DBA). Work

will not be separated or aggregated to avoid the applicability of

either the SCA or the DBA. Service call or work order estimates

used to determine the applicability of either act will be based on the

least cost alternative.

a. Service Contract Act (41 USC 351-358). Contracts for $2500

or more subject to the SCA require wage determinations from the

Department of Labor. The contracting officer will request a wage

determination from Department of Labor no earlier than 120 calendar days, and no later than 60 calendar days, before the solicitation

release date. When a delay of 60 or more calendar days occurs in

the solicitation process, the contacting officer will request an updated wage determination from Department of Labor.

b. Davis-Bacon Act (40 USC 601 et seq).

(1) Normally, construction projects are not included in CA studies and will be competed separately. However, requirements in a

contract (subject to the SCA) calling for construction, alteration,

renovation, and painting performed in response to a service call or

work order in excess of $2,000 are subject to the DBA.

(2) Installation support services such as building maintenance,

grounds maintenance, plant operations, custodial services and snow

removal are subject to the SCA. When the service call or work

order is clearly for maintenance work, the SCA will apply regardless of dollar value.

(3) When the service call or work order is clearly for construction, alteration, renovation or painting, the DBA will apply unless

the value of the work order is less than $2,000 in which case the

SCA will apply.

4–9. Solicitation (Invitation for Bids (IFB) or Request for

Proposals (RFP))

a. The cost competition study process identifies the least costly

method of performance of a commercial activity. Since the least

costly method of performance is not known in advance, the Army

compares the cost of in-house, contract or IGS performance to

identify whether it is less expensive to continue the current method

of performance or convert. To compare these costs requires soliciting offers from contractors through an IFB or RFP. (DA Pam 5-20,

Chapter 6)

b. Solicitations may be issued at any time after appropriate command approval, but not until the PWS is completed and management study is approved, as required. (DA Pam 5-20, para 4-7)

c. When a solicitation or unrestricted resolicitation fails to produce an acceptable bid or offer, the commander will request approval from the MACOM to end the study.

4–10. Contract Administration

Although many people are important in ensuring that a contractor

performs according to the specifications, the contracting officer is

responsible for the overall administration of the contract. The roles

and responsibilities of the functional managers, the Contracting Officer’s Representative (COR) and the Quality Assurance Evaluator

(QAE) during the transition and after conversion will be clearly

defined and documented in the contract administration plan. (DA

Pam 5-20, Chapter 8)

4–11. Occupational Safety and Health Act (OSHA)

As employers, both the government and the private sector are required to provide a safe workplace. With the exception of military

unique equipment, systems and operations, the standards established

under the OSHA for private sector employers are the Army safety

standards. Solicitations will list the deficiencies in work sites identified in the most recent annual inspection. Solicitations will not

include work to bring government furnished facilities into compliance with OSHA. Likewise, OSHA-required repairs will not be

included in the in-house cost estimate. Offerors will be informed of

the government’s intention to correct the deficiencies, or any deficiencies later discovered, at its expense, taking into account safety

and health priorities.

Section III

Management Study Procedures

4–12. Requirements for Management Studies

a. A management study will be conducted for all Full Cost Competition Studies. (A management study may not be performed after

receipt of MACOM approval to perform a Streamlined Cost Competition Study.) The primary products of the management study are the

MEO and, if required by the solicitation, the technical performance

plan. (DA Pam 5-20, Chapter 4)

b. The MEO describes the staffing and position structure required

to perform the work. The MEO is the basis for the in-house cost

estimate. The technical performance plan reflects the MEO and

equates to an achievable level of performance that corresponds to

the quantity and quality of work described in the PWS. (DA Pam 5-

20, para 4-1)

c. Required approvals for acquisition of equipment and facilities

must be obtained before approval of the management study. This

applies unless such approval depends on the approval of the management study or the outcome of the cost comparison. Effort to

obtain conditional approval will be documented.

d. The management study will be completed and approved before

the independent review (para 4-14). Commanders will ensure that

AR 5–20 • 1 October 1997 7
the solicitation and the MEO are based on the most current workload data. Changes that require revisions of the in-house cost estimate after the independent review is complete also require another

review by the independent reviewer. In any event, changes to the

MEO are prohibited after receipt of bids or initial offers, except if

required following comparison of the in-house and selected contractor’s technical performance plans. (DA Pam 5-20, para 6-22)

e. If essential information in the management study is classified,

t h e c l a s s i f i e d m a t e r i a l w i l l b e i n c l u d e d i n a s e p a r a t e c l a s s i f i e d

appendix.

4–13. Certification and Implementation of Most Efficient

Organization (MEO)

a. MEO Certification. The MEO is certified in Item 19 of the

cost comparison form. (DA Pam 5-20, para 5-6) The certifying

official may be any technically competent individual (1) organizationally independent of the function under study or (2) at least two

levels above the most senior official included in the in-house cost

estimate. The certifying official must also be able to commit to the

provision of necessary resources to perform the activity. Such certification is made before the review of bids or proposals.

b. MEO Implementation.

(1) The MEO will begin to be implemented upon the commander’s approval. This precludes continued expenditure of resources at

levels higher than necessary and allows the MEO and methods

improvements to be tested.

(a) If the management study team discovers unauthorized work

being performed, that work will be discontinued when that study

finding is verified by the functional manager.

(b) More cost effective methods will be implemented as they are

identified.

(c) Where practical, attrition and management-initiated reassignments of employees from excess positions will be used to implement the MEO. There is no policy in this regulation that further

restricts the commander’s authority to locally determine whether to

use reduction-in-force procedures to reorganize into the MEO prior

to cost comparison bid opening.

(2) Once a decision is reached to retain a CA as an in-house

operation, commanders and managers at all levels will ensure that -

( a ) T h e i n - h o u s e w o r k f o r c e c o m p l i e s w i t h t h e m a n a g e m e n t

study, including the MEO.

(b) The work and mission requirements performed by the inhouse work force are in accordance with the PWS.

(c) The function is performed within the cost levels established in

the in-house cost estimate.

(d) The in-house work force implements levels of performance

and QA measures required of potential contractors and described in

the PWS and the resulting solicitation upon which commercial firms

submit offers.

Section IV

Independent Review, Cost Comparison, and

Administrative Appeals

4–14. Independent Review of the In-house Cost Estimate

(DA Pam 5-20, para 5-36)

a. The in-house cost estimate shows the cost to the government

of performing the work in the PWS with the proposed in-house

organization (MEO). The in-house cost estimate also establishes the

costs to be added to the contract price to arrive at the full cost of

contract performance. The completed estimate, supporting documents, the PWS, and the management study will be provided to the

independent reviewer. USAAA will review in-house cost estimates

for functions with over 65 civilian FTEs. For functions with 65 or

fewer civilian FTEs, the installation may use their Internal Review

Office, the MACOM, or other government or commercial sources

approved by the MACOM.

b. The independent reviewer will be notified when work begins

and may begin review before the estimate is completed. The completed estimate for a single-function activity will be provided to the

independent reviewer at least 30 days before it is due to be submitted to the contracting officer. If the estimate is for a multi-functional

activity, the estimate must be provided to independent reviewer at

least 60 days before it is due to be submitted to the contracting

officer.

4–15. Cost Comparison Bid Opening (DA Pam 5-20,

Chapter 7)

The cost comparison bid opening is the actual comparison of the inhouse costs to those of the selected contractor bid or proposal. At

cost comparison bid opening, the in-house cost estimate is opened

and the bid or proposal cost is entered on the cost comparison form.

4–16. Administrative Appeals Procedure (DA Pam 5-20,

para 7-6)

a. Any interested party may appeal waivers (para 2-3), based on

factual questions regarding justifications to waive a cost competition

study, or direct conversion and cost competition studies, based on

noncompliance with requirements and procedures set forth in OMB

Circular A-76 or specific items entered on the cost comparison

form. The appeals process is intended to protect the rights of all

interested parties. An Administrative Appeals Board (AAB) decision

is not subject to negotiation, arbitration, or agreement. Interested

parties include employees of the activity under study, unions and

other employee organizations representing affected federal employees, and bidders or offerors responding to the solicitation. Appeals

must as a minimum (1) identify specific instances of denial of

information not otherwise protected by law or regulation, or (2)

demonstrate that the items appealed, individually or in aggregate,

would reverse the initial decision.

b. Appeals of waivers are submitted directly to the ASA(IL&E).

Cost competition study and direct conversion appeals are submitted

to the contracting officer. In either case, the appeal must be submitted in writing and received within 20 calendar days after the date

that all supporting documents are made public. The MACOM may

extend the appeal period up to 30 calendar days if the cost competition study is particularly complex.

c. Cost competition study and direct conversion appeals will be

forwarded to the MACOM within five calendar days. The MACOM

will assign an official or officials to serve as Administrative Appeals

Board (AAB) for that appeal. The AAB must render its decision

within 30 calendar days of receipt of the appeal by the MACOM.

Section V

Final Decisions

4–17. Final Decision Approval

After the AAB has issued decisions on all appeals, and after all

protests have been resolved, the DA Form 7379-R will be forwarded

through the MACOM to HQDA for congressional notification and

clearance to end the study (para 4-5). (DA Pam 5-20, para 7-8 for a

full cost competition, paragraph 7-15 for a streamlined cost competition, or para 7-16 for a direct conversion).

4–18. Economic Effects Analysis

If the decision in a cost competition study is to convert to contract

and more than 75 civilian employees are directly affected, an economic effects analysis must be included with the final decision

report. (DA Pam 5-20, App G)

8 AR 5–20 • 1 October 1997
Appendix A

References

Section I

Required Publications

OMB Circular A–76

Revised Supplemental Handbook (Performance of Commercial

Activities), March 1996 (Cited in para 1-1.)

DA PAM 5–20

Commercial Activities Study Guide (Cited throughout.)

Section II

Related Publications

A related publication is merely a source of additional information.

The user does not have to read it to understand this regulation.

AR 1–35

Basic Policies and Principles for Interservice Support Agreements

AR 25–55

Freedom of Information Act

AR 5–14

Managing Analytical Support Services

AR 570–4

Manpower Management

DFARS

Defense Federal Acquisition Regulation Supplement

FAR

Federal Acquisition Regulation

DODI 4100.15

Commercial Activities Program Procedures

DOD 4100.33

Operation of Commercial and Industrial-Type Activities

DODD 5400–7–R

Defense Freedom of Information Act

10 USC 2461

Commercial or industrial type functions: required studies and

reports before conversion to contractor performance

10 USC 2462

Contracting for certain supplies and services required when cost is

lower

10 USC 2464

Core logistics functions

10 USC 2465

Prohibition on contracts for performance of firefighting or securityguard functions

10 USC 2466

Limitations on the performance of depot-level maintenance of

materiel

10 USC 2467

Cost comparisons: requirements with respect to retirement costs and

consultation with employees

10 USC 2468

Contracts to perform workloads previously performed by depot-level

activities of the DOD: requirement of competition

10 USC 4532

Factories and arsenals: manufacture at; abolition: of Section 8015 of

the FY 97 DOD Appropriations Act

Section III

Prescribed Forms

DA Form 5473–R

Performance Requirements Summary (See para 3-10, DA Pam 5-

20.)

DA Form 5475–R

Surveillance Activity Checklist (See para 8-7, DA Pam 5-20.)

DA Form 5476–R

Surveillance Activity Checklist (See paras 8-7 and 8-9, DA Pam.)

DA Form 5477–R

Customer Complaint Record (See paras 8-3 and 8-9, DA Pam 5-20.)

DA Form 5478–R

Decision Table (See paras 8-7 and 8-9, DA Pam 5-20.)

DA Form 5479–R

Contract Discrepancy Report (See paras 8-7 and 8-9, DA Pam 5-

20.)

DA Form 5481–R

Tally Checklist (See paras 8-7 and 8-9, DA Pam 5-20.)

DA Form 7196–R

Analysis of Most Efficient Organization Tasks and Staffing (See

para 4-17f, DA Pam 5-20.)

DA Form 7197–R

Analysis of Governmental-in-Nature Tasks and Staffing (See para 4-

17h, DA Pam 5-20.)

DA Form 7375–R

Commercial Activities Proposed Action Summary (CPAS) (See para

2-5, DA Pam 2-3.)

DA Form 7376–R

Generic A-76 Cost Comparison Form (CCF) (See paras 4-17 and 5-

2, DA Pam 5-20.)

DA Form 7377–R

Streamlined A-76 Cost Comparison Form (SCCF) (See paras 5-22

and 7-9, DA Pam 5-20.)

DA Form 7378–R

Pre-audit Cost Study Checklist (See para 5-37, DA Pam 5-20.)

DA Form 7379–R

Commercial Activities Final Decision Report (See para 4-5, DA

Pam 5-20.)

DA Form 7384–R

Aircraft and Aviation Cost Comparison (See Appendix C, DA Pam

5-20.)

DA Form 7385–R

A-76/MV Cost Comparison For Motor Vehicle Fleets (See

Appendix D.)

Section IV

Referenced Forms

DA Form 3820

Procedure Chart

AR 5–20 • 1 October 1997 9
DA Form 3953

Purchase Request and Commitment

DD Form 1423

Contract Data Requirements

DD Form 1664

Data Item Description

DD Form 1723

Flow Process Chart

DD Form 1724

Work Distribution Chart

DD Form 2030

Activity and Task List

DD Form 2033

Operations Chart

DD Form 3825

Layout Chart

OF 612

Optional Application for Federal Employment

SF 98

Request for Wage Determination

10 AR 5–20 • 1 October 1997
Glossary

Section I

Abbreviations

ACAMIS

A r m y C o m m e r c i a l A c t i v i t i e s M a n a g e m e n t

Information System

ACSIM

A s s i s t a n t C h i e f o f S t a f f f o r I n s t a l l a t i o n

Management

AFARS

A r m y F e d e r a l A c q u i s i t i o n R e g u l a t i o n

Supplement

AMC

Army Materiel Command

AMEC

Army Management Engineering College

AMEDD

Army Medical Department

ALP

Acceptable Level of Performance

AR

Army Regulation

ASA(FM&C)

Assistant Secretary of the Army (Financial

Management & Comptroller)

ASA(IL&E)

A s s i s t a n t S e c r e t a r y o f t h e A r m y ( I n s t a l l a -

tions, Logistics & Environment)

ASA(M&RA)

Assistant Secretary of the Army (Manpower

and Reserve Affairs)

ASA(RD&A)

Assistant Secretary of the Army (Research,

Development & Acquisition)

BRAC

Base Realignment and Closure

CA

Commercial Activity(ies)

CAS

Commercial Activities System

CBD

Commerce Business Daily

CCF

Cost Comparison Form

CG

Commanding General

CLL

Chief Legislative Liaison

COCO

Contractor-owned, Contractor-operated

COE

Chief of Engineers

CONUS

Continental United States

COR

Contracting Officer’s Representative

CPA

Chief of Public Affairs

CPAC

Civilian Personnel Advisory Center

CPAS

C o m m e r c i a l A c t i v i t i e s P r o p o s e d A c t i o n

Summary

CPOC

Civilian Personnel Operations Center

DA

Department of the Army

DBA

Davis-Bacon Act

DCSINT

Deputy Chief of Staff for Intelligence

DCSLOG

Deputy Chief of Staff for Logistics

DCSOPS

Deputy Chief of Staff for Operations

DCSPER

Deputy Chief of Staff for Personnel

DPW

Directorate of Public Works or Director of

Public Works

DFARS

D e f e n s e F e d e r a l A c q u i s i t i o n R e g u l a t i o n

Supplement

DISC4

Director of Information Systems for Comm a n d , C o n t r o l , C o m m u n i c a t i o n s &

Computers

DOC

D i r e c t o r a t e o f C o n t r a c t i n g o r D i r e c t o r o f

Contracting

DOD

Department of Defense

DOL

D i r e c t o r a t e o f L o g i s t i c s o r D i r e c t o r o f

Logistics

DPCA

Directorate of Personnel and Community Activities or Director of Personnel and Community Activities

DRM

Directorate of Resource Management or Director of Resource Management

FAR

Federal Acquisition Regulation

FLSA

Fair Labor Standards Act

FOA

Field Operating Agency

FOIA

Freedom of Information Act

FSC

Federal Supply Code

FTE

Full-time Equivalent

G&A

General and Administrative

GAO

General Accounting Office

GFE

Government Furnished Equipment

GFP

Government Furnished Property

GIN

Governmental-in-Nature

GOCO

Government-owned, Contractor-operated

GOGO

Government-owned, Government-operated

GS

General Schedule (Civilian Personnel)

GSA

General Services Administration

HQDA

Headquarters, Department of the Army

IFB

Invitation for Bid

IG

Inspector General

IGE

Independent Government Estimate

IGS

Intragovernmental Support

JAG

Judge Advocate General

KO

Contracting Officer

MACOM

Major Army Command

AR 5–20 • 1 October 1997 11
MTF

Medical Treatment Facility

MEDDAC

Medical Department Activity

MEO

Most Efficient Organization

MOS

Military Occupational Specialty

MS

Management Study

MTOE

M o d i f i c a t i o n T a b l e o f O r g a n i z a t i o n a n d

Equipment

NAF

Non-appropriated Fund

NAFI

Non-appropriated Fund Instrumentality

NISH

N a t i o n a l I n d u s t r i e s f o r t h e S e v e r e l y

Handicapped

OCONUS

Out of the Continental United States

OMB

Office of Management and Budget

PoP

Period of Performance

PR

Purchase Request

PRS

Performance Requirements Summary

PWS

Performance Work Statement

QA

Quality Assurance

QAE

Quality Assurance Evaluator

QASP

Quality Assurance Surveillance Plan

RDT&E

Research, Development, Test, and Evaluation

RFP

Request for Proposals

RIF

Reduction-in-Force

SADBU

S m a l l a n d D i s a d v a n t a g e d B u s i n e s s

Utilization

SBA

Small Business Administration

SCA

Service Contract Act

SCCF

Streamlined Cost Comparison Form

SOP

Standard Operating Procedure

SIMOS

S p a c e I m b a l a n c e d M i l i t a r y O c c u p a t i o n a l

Specialty

SJA

Staff Judge Advocate

SSA

S o u r c e S e l e c t i o n A u t h o r i t y S t a f f S u p p o r t

Agency

SSAC

Source Selection Advisory Council

SSEB

Source Selection Evaluation Board

SSP

Source Selection Plan

TE

Technical Exhibit(s)

TPP

Technical Performance Plan

TJAG

The Judge Advocate General (at HQDA)

TDA

Table of Distributions and Allowances

TIG

The Inspector General

TOE

Table of Organization and Equipment

TSG

The Surgeon General

USAAA

U.S. Army Audit Agency

U.S.C.

United States Code

VE

Value Engineering

WDC

Work Distribution Chart

Section II

Terms

ACCEPTABLE LEVELS OF

PERFORMANCE (ALP)

The ALP is the maximum percent defective

o r t h e m a x i m u m n u m b e r o f d e f e c t s p e r

hundred units considered satisfactory for purposes of a sampling inspection. It is the allowable variance from a standard expressed

by narrative description before the Government will reject the specific service.

ACQUISITION PLAN (AP)

T h e A P a d d r e s s e s t h e t e c h n i c a l , b u s i n e s s ,

management, and other significant considerations that will control acquisition. The Cont r a c t i n g O f f i c e r e p r e s e n t a t i v e o n t h e C A

study team will prepare and maintain the AP.

ACTIVITY ANALYSIS

A c t i v i t y a n a l y s i s s t a t e s w h a t s t a r t s a j o b ,

what takes place when doing the job, and the

outcome of the job.

ACQUISITION PLANNING

The process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated for a comprehensive

plan for fulfilling the agency need in a timely

manner and at a reasonable cost.

ADMINISTRATIVE APPEAL BOARD

(AAB)

The independent forum or body of individuals designated by the appropriate MACOM to

review cases submitted on appeal to ensure

that all costs are properly accounted for in

a c c o r d a n c e w i t h t h e p r i n c i p l e s a n d p r o c e -

dures of AR 5-20 and DA Pam 5-20. The

AAB shall also ensure that all participants

have full and equal access to the decision

process.

ADVANCED ACQUISITION PLANNING

(AAP) SYSTEM

Dollar thresholds for acquisition strategy development are lower than those for acquisition plans. Some acquisitions over MACOM

established dollar thresholds but under the

AP dollar threshold require preparation of an

AAP system. Although less formal than an

A P , t h e p r i n c i p l e s o f A P s h o u l d s t i l l b e

incorporated.

ASSET ACQUISITION COST

Sum of the purchase price and of the costs

( f o r t r a n s p o r t a t i o n ; p a c k i n g , c r a t i n g , h a n -

dling; installation, etc.) incurred to place an

asset in use.

ASSET USEFUL LIFE

Estimated period of economic usefulness of

an asset in a particular operation.

AUGMENTATION CONTRACT

Means of performing recurring projects or

continuing services portions of a CA workload without using MEO personnel. Augmentation contracts may be awarded without cost

competition, IAW the direct conversion, new

requirement, and expansion criteria in this

regulation.

BASE PAY

C i v i l i a n w a g e s ( i n c l u d i n g s h i f t / h a z a r d o u s

duty differentials) that earn fringe benefits.

BENCH STOCK

On-hand supplies appropriate for assignment

to the individual worker in advance of need.

12 AR 5–20 • 1 October 1997
BIDDER

A bidder is a prospective contractor who submits a one time offer, called a ’bid’, to the

government in response to the government’s

Invitation for Bid (IFB). The IFB is the solicitation document used in sealed bid contracti n g . C o n t r a c t a w a r d w i l l b e m a d e t o t h e

responsible bidder who was responsive to the

requirements stated in the IFB and whose bid

was the lowest price.

BID OPENING

For a sealed bid procurement, bid opening is

the date and time established to open, read

aloud, and display the bids received in response to an IFB. For negotiated procurement

action the term is solicitation closing date—

t h e t i m e s e t i n t h e R e q u e s t F o r P r o p o s a l

(RFP) and monitored by the contracting office at which time all proposals must be received. For a sealed bid procurement, ’bid

opening’ is the same as ’cost comparison bid

o p e n i n g ’ b e c a u s e t h e c o n t r a c t b i d s a r e

opened at the same time as the in-house cost

estimate. For a negotiated procurement, only

the price negotiated with the selected cont r a c t o r a n d t h e i n - h o u s e c o s t e s t i m a t e a r e

opened at ’cost comparison bid opening.’

CAPITAL ASSETS (TANGIBLE)

Structures, machinery and equipment having

a n o r i g i n a l a c q u i s i t i o n c o s t o f $ 5 , 0 0 0 o r

greater.

CA STUDY GUIDE

DA Pam 5-20, Commercial Activities Study

G u i d e p r o v i d e s t h e m e c h a n i c s o f t h e C A

process.

CAPITAL IMPROVEMENT COSTS

Costs of major overhauls and modifications

that add to the value or prolong the life of

capital assets.

CASUALTY AND LIABILITY

INSURANCE COSTS

Costs of government self-insurance against

casualty losses and liability claims.

CASUALTY LOSSES

C o s t s o f r e p l a c i n g e q u i p m e n t , f a c i l i t i e s ,

materials/supplies, and minor items destroyed

by fire/flood, and so forth.

COLLECTIVE BARGAINING

AGREEMENT

The negotiation of employment matters between employers and employees through the

use of a bargaining agent designated by an

uncoerced majority of the employees within

the bargaining unit. Under the Federal Labor

Relations Act contractor employees have a

statutory right to organize, join unions, and

bargain collectively. The fact that these employees are working on government facilities

under a government contract does not deprive

them of their statutory rights.

COMMERCE BUSINESS DAILY (CBD)

C B D i s t h e p u b l i c n o t i f i c a t i o n m e d i a b y

w h i c h U . S . G o v e r n m e n t a g e n c i e s i d e n t i f y

p r o p o s e d c o n t r a c t a c t i o n s a n d c o n t r a c t

awards. The CBD is published in five or six

daily editions weekly, as necessary.

COMMERCIAL ACTIVITY

An activity providing a product or service

that can be performed by a private source.

(See definition for ’recurring commercial activities,’ which are the functions to which

this regulation applies.)

COMMERCIAL SOURCE

A commercial source is any business or other

concern that is eligible for contract award in

a c c o r d a n c e w i t h F e d e r a l A c q u i s i t i o n

Regulations.

COMMON/’WASH’ COSTS

Costs that will be incurred regardless of the

o u t c o m e o f t h e c o s t c o m p e t i t i o n a n d a r e ,

therefore, not included in the cost comparison

(e.g. government furnished property, security

clearance processing, quality assurance, utilities, and other facilities support services.

CONDITIONAL AWARD

A contract award made upon the initial decision in a cost competition involving a negotiated acquisition. Contractor performance is

conditioned on the offeror’s proposal being

the most advantageous offer.

CONTRACT ADMINISTRATION

C o n t r a c t a d m i n i s t r a t i o n i n c l u d e s t h o s e i n -

h e r e n t l y g o v e r n m e n t a l a c t i v i t i e s p e r f o r m e d

b y w a r r a n t e d c o n t r a c t i n g o f f i c e r s , c o n t r a c t

administrators, the contracting officer’s representative, and related payment evaluation

s t a f f . C o n t r a c t a d m i n i s t r a t i o n i s n o t t o b e

confused with contract quality control, performance evaluation, or inspection which are

defined as commercial activities by AR 5-20.

CONTRACT DISCREPANCY REPORT

A report, used by QAE, to document unsatisfactory performance by the contractor.

CONTRACTING OFFICER (KO)

A Contracting Officer is the only person with

the authority to create, modify or terminate a

contract. The Contracting Officer is the only

o f f i c i a l w h o c a n o b l i g a t e t h e g o v e r n m e n t

through a contract.

CONTRACTING OFFICER’S

REPRESENTATIVE (COR)

The COR is the individual appointed in writing by the contracting officer and delegated

s p e c i f i c a u t h o r i t y t o m o n i t o r c o n t r a c t o r

performance.

CONTRACTOR-OWNED

CONTRACTOR-OPERATED (COCO)

A f a c i l i t y o w n e d a n d o p e r a t e d b y a

contractor.

CONVERSION TO CONTRACT

A conversion to contract is the change of

performance of a commercial activity from

in-house performance by Federal employees

to performance by a commercial source.

CONVERSION FROM CONTRACT

C o n v e r s i o n f r o m c o n t r a c t t o i n - h o u s e p e r -

formance (sometimes referred to as ’re-federalization’) means the change of a commercial

activity from performance by contract with a

commercial source to performance by Federal

employees with government resources. Unless the activity is performed by ten or fewer

contract employees, a Transfer Cost Competition Study must be conducted before the

conversion. ’Conversion from contract’ also

includes the conversion of expansions and/or

new requirements (work) from contract performance to in-house performance.

CONVERSION DIFFERENTIAL

The conversion differential is the minimum

savings to be gained from converting from

one method of operation to another. The differential reflects the unpredictable costs inh e r e n t i n c h a n g i n g t h e s t a t u s q u o . T h e s e

include such costs as retained pay and the

t e m p o r a r y l o s s o f p r o d u c t i v i t y a s s o c i a t e d

with a conversion. The conversion differential is the lesser of ten percent of personnel

costs or $10 million over the performance

period.

CORE CAPABILITY

A core capability is a commercial activity

operated by a cadre of highly skilled employees, in a specialized technical or scientific

development area, to ensure that a minimum

capability is maintained. The core capability

does not include the skills, functions or FTE

that may be retained in-house for reasons of

National Defense, including military mobilization, security or rotational necessity, or to

the patient care or research and development

activities as provided in AR 5-20.

COST COMPARISON BID OPENING

The process of formally comparing the estimated cost of in-house performance with the

c o s t o f c o m m e r c i a l o r I G S s o u r c e s . C o s t

comparison bid opening results in the initial

decision. (See definitions for ’bid opening’

and ’initial decision.’)

COST COMPETITION

The process of conducting a study that leads

to a cost comparison bid opening between

potential in-house, IGS and/or contract providers of a commercial activity. A cost comp e t i t i o n t h a t i s n o t c o n d u c t e d I A W

Streamlined Cost Comparison Study procedures is referred to as a Full Cost Comparis o n S t u d y . A d i r e c t c o n v e r s i o n s t u d y i s

generally not considered a cost competition

study.

COST-PLUS-AWARD-FEE CONTRACT

A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee

consisting of a base fee amount (which may

be zero) fixed at inception of the contract,

a n d a n a w a r d a m o u n t , b a s e d u p o n a

j u d g m e n t a l e v a l u a t i o n b y t h e g o v e r n m e n t ,

AR 5–20 • 1 October 1997 13
s u f f i c i e n t t o p r o v i d e m o t i v a t i o n f o r e x c e l -

lence in contract performance.

COST-REIMBURSEMENT CONTRACT

Cost reimbursement contracts are suitable for

use only when uncertainties involved with

contract performance do not permit costs to

be estimated with sufficient accuracy (FAR

16.301). The contractor would then be reimbursed for allowable expenses within a preestablished ceiling.

CROSSWALK

The comparison between manpower, budget

and functional requirements.

CURRENT OPERATIONS

This describes the organization as it exists at

the outset of the study, including staffing,

o r g a n i z a t i o n f a c i l i t i e s , e q u i p m e n t , a n d a n y

problems that affect efficient operation.

DECISION TABLE

T h e d e c i s i o n t a b l e i d e n t i f i e s t h e p o s s i b l e

causes of the unsatisfactory performance and

lists a number of questions which, when answered will probably pinpoint the source of

the problem.

DEPRECIATION

Method used to spread the total cost of a

t a n g i b l e c a p i t a l a s s e t , l e s s r e s i d u a l v a l u e ,

over an asset’s useful life. [Annual depreciation cost is computed by dividing the deprec i a b l e b a s i s ( a c q u i s i t i o n c o s t p l u s c a p i t a l

improvements less residual value) by the useful life of the asset.]

DIRECT CONVERSION

Conversion to contract without a formal cost

competition study.

DIRECT STAFFING

Personnel directly involved in producing the

outputs of the function under study whose

efforts can be directly traced to a unit of

output.

DISPOSAL VALUE (SAME AS

RESIDUAL VALUE)

Value at disposition (less costs of disposal/

transfer) estimated at the time of an asset’s

acquisition.

DISPLACED EMPLOYEE

Any DA employee, including a temporary

employee, adversely affected by a conversion

to contract. Adverse actions include job elimination, grade reduction, and reassignment to

a n o t h e r p o s i t i o n . D i s p l a c e d e m p l o y e e s i n -

clude those in the function converted to contract and those outside the function who are

affected adversely by reassignment or the exercise of bumping or retreat rights related to

a RIF resulting from the conversion.

EXCLUSION

Activities outside the scope of the CA Program because of legislative (e.g. RDT&E act i v i t i e s , d e p o t l e v e l m a i n t e n a n c e , a n d

firefighting and security guard functions) or

administrative requirements.

EXEMPTION

See ’waiver.’

EXPANSION

An expansion is the modernization, replacement, upgrading or the enlargement of an inhouse commercial activity or capability. If

the expansion involves a 30-percent increase

in the operating cost of the activity, a 30-

percent increase in the total capital investment to perform the activity or an increase of

65 FTE or more, a cost competition study is

required prior to authorizing in-house performance. A consolidation of two or more

existing commercial activities is not an expansion, unless the total operating cost is 30

percent greater than the total of the individual

components or it requires an increase of 65

FTE or more.

FIRM-FIXED-PRICE CONTRACT

A f i r m - f i x e d - p r i c e c o n t r a c t u s e s t h e b a s i c

profit motive of business enterprise. It is used

when the risk involved is minimal or can be

p r e d i c t e d w i t h a n a c c e p t a b l e d e g r e e o f

certainty.

FINAL DECISION

The decision made after the resolution of appeals, conduct of preaward surveys, and resol u t i o n o f G A O p r o t e s t s . ( S e e “ i n i t i a l

decision.") The installation implements the

final decision after the installation submits

the Final Decision Report and the HQDA

O f f i c e o f t h e C h i e f L e g i s l a t i v e L i a i s o n

(OCLL) makes the Final Decision Notification to Congress.

FRINGE BENEFITS

Retirement (e.g., CSRS, FERS), health insurance, life insurance, disability insurance, unemployment compensation, bonuses, awards,

and MEDICARE.

FULL COST COMPETITION STUDY

A process that develops the PWS and MEO,

solicits bids or offers, and compares the inhouse cost with the cost of the bidder or

offeror to determine whether to continue or

change the method of performance. (Also see

“cost competition.”)

FULL TIME EQUIVALENT

A position that involves the planned use of

2,087 straight time paid hours in a fiscal year

(to include authorized leave and paid time off

for training); for example, two part-time emp l o y e e s , e a c h w o r k i n g a t o t a l o f 2 , 0 8 7

straight time paid hours in a FY equals one

FTE.

FUNCTIONAL ACTIVITIES

Those installation-level activities responsible

for producing a product or service.

GENERAL AND ADMINISTRATIVE

OVERHEAD

Identifies personnel outside the organization

under study and exclusive of the first superv i s o r y l e v e l a b o v e t h e o r g a n i z a t i o n u n d e r

study. This includes such functions as civilian personnel, resource management, legal,

procurement, and so forth.

GENERAL AND ADMINISTRATIVE

(G&A) OVERHEAD COSTS

All support costs, other than operations overhead costs, incurred for the function under

study.

GOVERNMENTAL-IN-NATURE (GIN)/

INHERENTLY GOVERNMENTAL

GIN functions are government functions that

are so intimately related to the public interest

as to mandate performance by Government

employees or military personnel. These functions include those activities that require either the exercise of discretion in applying

Government authority or the making of value

judgments in making decisions for the Gove r n m e n t . G o v e r n m e n t a l f u n c t i o n s n o r m a l l y

fall into two categories: (1) the act of governing, i.e., the discretionary exercise of Gove r n m e n t a u t h o r i t y , a n d ( 2 ) m o n e t a r y

transactions and entitlements. All functions

are either GIN functions or commercial activities. See OFPP Policy Letter 92-1 at Appendix B of DA Pam 5-20.

GOVERNMENT-FURNISHED

PROPERTY (GFP)

G o v e r n m e n t f a c i l i t i e s a n d e q u i p m e n t o n

hand, programmed for use by the MEO, and

offered to prospective bidders ’as is.’

GOVERNMENT-OWNED

CONTRACTOR-OPERATED

A facility owned by the government and operated by a contractor.

IMPLEMENTATION DATE

The date the contract becomes effective and

the contractor begins operation or the date

the installation fully implements the MEO.

INDEPENDENT GOVERNMENT

ESTIMATE (IGE)

The IGE is the government’s estimate of the

costs the private sector would charge to do

the work. Not to be confused with the inhouse cost estimate (which may not be revealed to any official involved with the selection of the contractor to compete against the

in-house cost estimate), the IGE is used by

the Contracting Officer during negotiations

with contractors for comparing the cost of

doing business. It is used to ensure the cont r a c t o r s ’ c o s t e s t i m a t e s a r e n o t b u y - i n s o r

their costs elevated. Therefore, the IGE documents cost estimates for all of the elements

that contribute to the contract price.

INDEPENDENT REVIEW

The independent review is completed by an

a c t i v i t y o u t s i d e t h e a c t i v i t y d o i n g t h e C A

study. The independent reviewer will subs t a n t i a t e t h e c u r r e n c y , r e a s o n a b l e n e s s , a c -

curacy, and completeness of costs that can be

14 AR 5–20 • 1 October 1997
determined before cost comparison. This includes assuring the in-house cost estimate is

based on the same PWS contained in the

solicitation.

INDEPENDENT REVIEWER

T h e o f f i c i a l ( s ) w h o c e r t i f i e s p r i o r t o b i d

opening that the government’s performance

and cost comparison estimates have been prepared in accordance with AR 5-20.

INDIRECT STAFFING

Personnel involved in support of producing

t h e o u t p u t s o f t h e f u n c t i o n s u n d e r s t u d y

whose efforts cannot be traced directly to a

unit of output.

IN-HOUSE COST ESTIMATE

T h e i n - h o u s e c o s t e s t i m a t e i s t h e g o v e r n -

ment’s bid. It is based on the MEO, which is

d e v e l o p e d d u r i n g t h e M a n a g e m e n t S t u d y .

T h e s t a f f i n g r e q u i r e d t o d o t h e w o r k l o a d

specified in the PWS is the basis for the inhouse cost proposal (estimate).

IN-HOUSE PERFORMANCE

The performance of work by Army employees, including military, civilian, and non-appropriated fund employees.

INITIAL DECISION

Initial decision is the decision made at the

time of cost comparison bid opening to retain

a CA as is or convert a CA to contract, inhouse, or IGS performance. The initial decision may differ from the final decision because of actions such as public review of the

competition, determinations of contractor res p o n s i b i l i t y , a d m i n i s t r a t i v e a p p e a l b o a r d

(AAB) decisions, and contractor protests to

the General Accounting Office (GAO). (’Initial decision’ as used in this regulation is

synonymous with ’tentative decision’ as used

in the OMB Circular A-76 Revised Supplemental Handbook.)

INTRAGOVERNMENTAL SUPPORT

(IGS)

Support provided by a DoD activity to a nonDOD Federal activity and vice versa.

INVENTORY

The CA Inventory is a listing of all in-house

and contracted commercial activities governed by AR 5-20, including the workyears or

FTEs expended on each CA during the preceding fiscal year.

INVITATION FOR BID (IFB)

A document that communicates government

requirements to prospective contractors and is

used in the sealed bid process.

LIABILITY CLAIMS

Claims against the government for damage/

injury caused/sustained by its employees.

LOT SIZE

The lot is the group of service output, such

as work orders; therefore, the number of outputs in a lot is the lot size.

MANAGEMENT STUDY

The management study is the document that

outlines the changes that will result in the

Government’s MEO to perform the commercial activity in-house. It provides the staffing

patterns and operating procedures that serve

a s a b a s e l i n e f o r i n - h o u s e c o s t e s t i m a t e s .

(This document is referred to as the ’Management Plan’ in the OMB Circular A-76

Revised Supplemental Handbook.)

MINOR ITEMS

Non-depreciable durable items whose current

replacement cost is less than $5,000.

MOST EFFICIENT ORGANIZATION

(MEO)

The MEO refers to the Government’s streamlined in-house organization to compete with

contractors to perform a commercial activity.

It may include a mix of Federal employees

and contract support. It is the basis for all inhouse costs entered on the Cost Comparison

Form. The MEO is the product of the Management Study and is based upon the PWS.

MULTI-FUNCTION STUDY

A s t u d y t h a t i n c l u d e s m o r e t h a n o n e C A

Function Code identified in DA Pam 5-20,

Appendix E.

NEW REQUIREMENT

A newly established need for a commercial

service.

NET BOOK VALUE

D e p r e c i a b l e b a s i s l e s s a c c u m u l a t e d a n n u a l

depreciation costs (see ’depreciation’).

OFFEROR

A n o f f e r o r i s a p r o s p e c t i v e c o n t r a c t o r o r

service provider who submits an offer to the

government in response to the government’s

RFP. The RFP is the solicitation document

used in the negotiation. The RFP has the

same purpose as the IFB: to communicate

government requirements to prospective contractors and to solicit offers from them. The

R F P u s u a l l y c a l l s f o r s e p a r a t e t e c h n i c a l

(how) and cost (how much) proposals from

the offeror.

OPERATIONS OVERHEAD COSTS

Those costs incurred by the first supervisory

work center one element above and in support of the function under study.

ORGANIZATIONAL ANALYSIS

This process is used to determine the accurate and complete mission statement of the

function. It provides a framework for determining what services (outputs) are provided

by the function under study.

OUTSOURCING

The transfer of a function previously performed in-house to an outside provider.

OVERHEAD

Overhead is included in the in-house estimate

and is defined as those costs that are not

d i r e c t l y a t t r i b u t a b l e t o t h e a c t i v i t y u n d e r

study. Overhead is calculated by multiplying

Line 1 (personnel) of the cost comparison

form by 12%. (This is a change in the March

1996 OMB Circular A-76 Revised Supplemental Handbook.)

PERFORMANCE INDICATOR/

MEASURE

The performance indicator is the tool used to

measure actual occurrence to the performance

s t a n d a r d . T h e p e r f o r m a n c e i n d i c a t o r d e t e r -

mines if the work performed was below, met

or exceeded the standard.

PERFORMANCE MEASURES

Performance measures provide a series of indicators, expressed in qualitative, quantitative

or other tangible terms, that indicate whether

current performance is reasonable and cost

effective. Performance measures can include

workload and output-to-cost ratios, transaction ratios, error rates, consumption rates, inv e n t o r y f i l l r a t e s , t i m e l i n e s s m e a s u r e s ,

completion and back order rates, etc. Quality

service measures may include responsiveness

rates, user satisfaction rates, etc.

PERFORMANCE REQUIREMENTS

SUMMARY (PRS)

The PRS lists those tasks that are key performance indicators of the function. The res u l t i s a l i s t o f k e y r e q u i r e d s e r v i c e s ,

standards of performance, associated ALPs,

the identification of the services to be counted, and the determination of appropriateness

of the performance standards for evaluation.

PERFORMANCE STANDARD

A p e r f o r m a n c e s t a n d a r d r e f l e c t s t h e m i n i -

mum, sector-specific, Federal requirement for

the performance of a commercial activity It

incorporates both quality measures and cost

m e a s u r e s . C o s t m e a s u r e s r e f l e c t t h e c o s t

comparability procedures of AR 5-20.

PERFORMANCE WORK STATEMENT

(PWS)

A performance work statement is a statement

of the technical, functional and performance

characteristics of the work to be performed,

identifies essential functions to be performed,

determines performance factors, including the

location of the work, the units of work, the

quantity of work units, and the quality and

timeliness of the work units. It serves as the

scope of work and is the basis for all cost

entered in the Cost Comparison Form.

PERSONAL SERVICES CONTRACT

A personal services contract, by its expressed

terms or how it’s administered, makes contractor personnel appear to be government

employees. This happens when it appears that

contractor personnel are subject to relatively

c l o s e a n d c o n t i n u o u s g o v e r n m e n t

supervision.

AR 5–20 • 1 October 1997 15
POST-MEO PERFORMANCE REVIEW

When services are performed in-house, as a

result of a cost competition, including those

involving an IGS agreement, a formal review

and inspection of the MEO should be conducted. Typically, this review should be conducted following the end of the first full year

of performance. Post-MEO Performance Reviews: confirm that the MEO has been implem e n t e d i n a c c o r d a n c e w i t h t h e T r a n s i t i o n

Plan; establish the MEO’s ability to perform

the services of the PWS; and confirm that

a c t u a l c o s t s a r e w i t h i n t h e e s t i m a t e s c o n -

tained in the in-house cost estimate. Adjustments may be made for formal mission or

scope of work changes.

PREFERENTIAL PROCUREMENT

PROGRAM

See definition of ’required source of supplies

and services.’

PRE-AWARD INQUIRIES

Written questions and comments about PWS

specifications, terms, and conditions in the

solicitation.

PRE-BID OR PRE-PROPOSAL

CONFERENCE

A meeting held to provide a site visit, provide an opportunity for bidders/offerors to

view the publications library assembled for

their use in preparing a realistic bid or offer,

explain any revisions made to the PWS and/

or solicitation requirements, and answer any

questions from bidders/offerors.

PRIVATIZATION

A subset of ’outsourcing,’ privatization is the

process of changing a federal government entity or enterprise to private or other non-fede r a l c o n t r o l a n d o w n e r s h i p . I t d o e s n o t

include determinations as to whether a support service should be obtained through publ i c o r p r i v a t e r e s o u r c e s , w h e n t h e

G o v e r n m e n t r e t a i n s f u l l r e s p o n s i b i l i t y a n d

control over the delivery of those services.

PRODUCTIVE HOURS

The number of man-hours per year that an

employee would have available to do his/her

primary duties—after subtracting time off for

holidays, leave (sick, annual, and administrative), training, and so forth—if the employee

worked an 8-hour day all year. [For full-time/

part-time employees 1,776 hours/year; for intermittent employees = 2,007 hours/Year.]

PROPOSED ORGANIZATION

A detailed description of the MEO, including

staffing, organization chart, facilities, equipm e n t , a n d o p e r a t i n g p r o c e d u r e s . T h i s a l s o

gives the staffing and organization for the

GIN functions and discusses the relationship

of the MEO to the GIN operation or of a

contractor and the GIN operation.

QUALITY ASSURANCE (QA)

T h i s i s a s t r u c t u r e d p r o g r a m u s e d b y t h e

Army to monitor the actions of either the

contractor or the MEO to ensure the Army

gets the work done that is required by the

PWS.

QUALITY ASSURANCE EVALUATOR

(QAE)

Q A E s a r e p e r s o n n e l t e c h n i c a l l y q u a l i f i e d

with work experience in the type functions

they will inspect. They also should be skilled

in preparing reports.

QUALITY ASSURANCE

SURVEILLANCE PLAN (QASP)

The QASP is a formal document prepared by

the Army to ensure a systematic inspection of

the required services. The QASP is not part

of the PWS, and should not be issued with

t h e s o l i c i t a t i o n . S o m e t i m e s r e f e r r e d t o a s

Quality Assurance Plan.

QUALITY ASSURANCE

SURVEILLANCE

Quality Assurance Surveillance is the method

by which Federal employees will monitor inhouse or contract performance to ensure that

the standards of the PWS are met within the

costs agreed to.

QUALITY CONTROL (QC)

Refers to actions taken by a contractor or the

MEO to control the production of goods or

services so that they will meet the requirements of the PWS.

RDT&E SUPPORT

BASOPS support functions for an RDT&E

installation.

REAL PROPERTY

Buildings and grounds, utilities system, structures, surfaced areas, and improvements identified in the category codes of AR 415-28.

Includes equipment affixed and built into a

facility as an integral part.

REASONABLE OR COMPETITIVE

PRICES

The expected range of prices resulting from

experience obtained through the competitive

free enterprise system for like or similar activities. Determinations are to be made by the

contracting officer.

RECURRING COMMERCIAL

ACTIVITIES

A recurring commercial activity is one that is

required by the Government on a consistent

and long term basis. This definition does not

imply an hourly, daily, monthly or annual

requirement, but must, in a general sense, be

r e p e t i t i v e i n n a t u r e , w h e r e i n t h e e x p e c t e d

workload can be reasonably estimated.

REDUCTION-IN-FORCE

Release of civilian employees by separation,

demotion, or reassignment requiring displacement resulting from lack of work, reorganization, or reclassification due to a change of

duties. An involuntary reduction of civilian

personnel.

REQUEST FOR PROPOSALS (RFP)

The solicitation document used in the negotiation method is the RFP. The RFP usually

calls for separate technical (how to perform

P W S r e q u i r e m e n t s ) a n d c o s t ( h o w m u c h )

proposals from the offeror.

REQUIRED SOURCE OF SUPPLIES

AND SERVICES

As used in paragraph 4-2d of AR 5-20, these

sources are those specified in FAR Part 8. As

of the date of publication of this Appendix,

these sources included (1) Federal Prison Industries and (2) the workshops administered

by the Committee for the Purchase from the

Blind and Other Severely Handicapped under

the Javits-Wagner-O’Day Act (41 USC 46-

48c).

SAMPLE

A sample consists of one or more service

outputs drawn from a lot, the outputs being

chosen at random. The number of outputs in

the sample is the sample size.

SAMPLING GUIDE

The sampling guide identifies the ALP associated with the requirement, the lot and samp l e s i z e , h o w t h e o u t p u t s a m p l i n g a n d

inspection will be performed, and the number

of defects that will be allowed before the

performance is considered unsatisfactory.

SEVERABLE EXPANSIONS

A severable expansion is an expansion of

currently contracted, in-house or IGS agreement provided work that could be provided

using the current approach or could, without

severe additional administrative burden, be

p r o v i d e d b y a n o t h e r c o m p e t i t i v e o f f e r o r .

Economy of scale is not justification for dismissing new or expanded work as severable;

these economies will be tested through competitive offer.

SINGLE-FUNCTION STUDY

A study that includes one CA Function Code

as identified in DA Pam 5-20, Appendix E.

SOLICITATION

The formal document containing the PWS,

attachments to the PWS such as maps and

t e c h n i c a l e x h i b i t s , a n d t h e c o n d i t i o n s a n d

terms prospective bidders/offerors must meet

for procuring services by contract. (See definitions for Invitation for Bid (IFB) and Request for Proposal (RFP).)

SOURCE SELECTION

T h e p r o c e s s s t a r t i n g w i t h a c q u i s i t i o n a n d

continuing through receipt and evaluation of

proposals.

SOURCE SELECTION ADVISORY

COUNCIL (SSAC)

Senior military and civilian officials who represent the various functional areas involved

in the CA study, and who serve as advisors

to the SSEB during the selection process.

16 AR 5–20 • 1 October 1997
SOURCE SELECTION AUTHORITY

(SSA)

A manager at a level in the installation hierarchy above the CA Manager.

SOURCE SELECTION EVALUATION

BOARD (SSEB)

A group of government personnel representing the various functional and technical disciplines relevant to an acquisition that conduct

a comprehensive evaluation of each offeror’s

proposal.

SOURCE SELECTION PLAN (SSP)

The written guide for the source selection

process. It describes how proposals will be

solicited from industry and how they will be

negotiated. It reflects who will evaluate proposals, composition of the SSEB, functional

areas required to be presented, determination

of security needs, and a timetable for contract

execution.

STREAMLINED COST COMPETITION

STUDY

A process that uses the current cost of inhouse work force performance for comparison to not less than four existing comparable

service contracts or IGS offers in the cost

comparison in order to determine whether to

change the method of performance.

SURVEILLANCE ACTIVITY

CHECKLIST

Used for those required services which cann o t b e s u r v e i l l e d u s i n g r a n d o m s a m p l i n g

techniques.

SURVEILLANCE SCHEDULE

A schedule based on the QASP requirements

which indicates when the various PWS requirements will be monitored. The surveillance must cover all hours of operation to

include nights, holidays, and week-ends.

TECHNICAL PERFORMANCE PLAN

(TPP)

The TPP provides a description of managem e n t c a p a b i l i t i e s , p e r s o n n e l q u a l i f i c a t i o n s ,

performance history, delivery schedule compliance, and technical capability to perform

the workload specified in the PWS. If it is

required of prospective contractors by the sol i c i t a t i o n ( u s u a l l y f o r n e g o t i a t e d p r o c u r e -

ments), a TPP will also be developed by the

in-house activity. The installation’s TPP reflects the MEO and is sealed prior to the

c o n s i d e r a t i o n o f a n y p a r t o f a n y c o n t r a c t

offer.

TENTATIVE DECISION

See “initial decision.” “Initial decision” as

used in this regulation is synonymous with

’tentative decision’ as used in the OMB Circular A-76 Revised Supplemental Handbook.

TRANSFER

A change in the method of performance from

contract to in-house.

TRANSFER COST COMPETITION

STUDY

See definition for ’conversion from contract.’

TRANSITION PERIOD

The period of time during which functional

operations transfer from the current organization or method of operation to a successor

organization or method of operation.

TALLY CHECKLIST

The tally checklist is used to tally information on inspection observations and defects.

TREE DIAGRAM

T r e e d i a g r a m m i n g b r e a k s w o r k d o w n i n t o

specific sub-divisions of that work. The tree

diagram resembles an organization chart, but

t h e b r e a k - o u t i s f u n c t i o n a l l y , n o t

organizationally.

WAIVER

A w a i v e r i s a d e t e r m i n a t i o n b y t h e A S A

(IL&E), made in accordance with AR 5-20,

that specified commercial activities may be

converted to or from in-house, contract or

IGS performance, without cost competition

study. A waiver may be justified by reasons

other than cost.

WAGE DETERMINATION

The wage determination sets the minimum

w a g e s a n d f r i n g e b e n e f i t s t h a t c o n t r a c t o r s

a n d / o r t h e i r s u b c o n t r a c t o r s m u s t p a y t h e i r

e m p l o y e e s s u b j e c t t o t h e D a v i s B a c o n o r

Service Contract Act. The wage determination becomes part of the solicitation.

Section III

Special Abbreviations and Terms

This section contains no entries.

AR 5–20 • 1 October 1997 17
Index

Acquisition Procedures

Contract Administration, 4-10

Occupational Safety and Health

Administration (OSHA), 4-11

Performance Work Statements (PWS), 4-7

Solicitations, 4-9

Wage Rates, 4-8

Administrative Appeals, 4-16

Bid Opening, 4-15

Contract Administration, 4-10

Contract Reviews, 2-5

Cost Competition

Direct Conversions, 4-2

Streamlined Cost Competition Studies, 4-3

Intragovernmental Support (IGS), 4-4

Reporting Requirements 4-5

Releasing Program Information, 4-6

Study Waivers, 2-3

Direct Conversions, 4-2

Economic Effects Analysis, 4-18

Expansions, 2-4

Final Decision Approval, 4-17

Independent Review, 4-14

Inherently Governmental Activities, 2-2

Intragovernmental Support (IGS), 4-4

Inventory, 2-1

Management Studies

Requirements for, 4-12

Most Efficient Organization (MEO), 4-13

New Requirements, 2-4

Occupational Safety and Health

Administration (OSHA), 4-11

Performance Work Statements (PWS), 4-7

Personnel

Civilian Personnel Management, 3-1

Consult with Employees, 3-2

Right of First Refusal, 3-3

Reduction-In-Force (RIF) Planning, 3-4

Military Personnel, 3-5

Post-MEO Performance Reviews, 2-6

Releasing Information, 4-6

Right of First Refusal, 3-3

Solicitations, 4-9

Streamlined Cost Competition Studies, 4-3

Study Waivers, 2-3

Wage Rates, 4-8

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