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                            Subpart 7.3 - Contractor Versus Government Performance
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart7.07.17.27.37.47.5
Section7.3007.3017.3027.3037.3047.305
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Subpart 7.3 - Contractor Versus Government PerformanceSubpart 7.3 - Contractor Versus Government Performance    **Parent topic:**  Part 7 - Acquisition Planning7.300 [Reserved]7.301 Definitions.       Definitions of "inherently governmental activity" and other terms applicable to this subpart are set forth at Attachment D of the Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (the Circular).7.302 Policy.       (a)                    						            The Circular provides that it is the policy of the Government to-                                                         (1)                          								                Perform inherently governmental activities with Government personnel; and                                                            (2)                          								                Subject commercial activities to the forces of competition.                                                                             (b)                    						            As provided in the Circular, agencies shall-                                                         (1)                          								                Not use contractors to perform inherently governmental activities;                                                            (2)                          								                Conduct public-private competitions in accordance with the provisions of the Circular and, as applicable, these regulations;                                                            (3)                          								                Give appropriate consideration relative to cost when making performance decisions between agency and contractor performance in public-private competitions;                                                            (4)                          								                Consider the Agency Tender Official an interested party in accordance with   31 U.S.C. 3551 to 3553 for purposes of filing a protest at the Government Accountability Office; and                                                            (5)                          								                Hear contests in accordance with OMB Circular A-76, Attachment B, Paragraph F.                                                                             (c)                    						            When using sealed bidding in public-private competitions under OMB Circular A-76, contracting officers shall not hold discussions to correct deficiencies.7.303 [Reserved]7.304 [Reserved]7.305 Solicitation provisions and contract clause.       (a)                    						            The contracting officer shall, when soliciting offers and tenders, insert in solicitations issued for standard competitions the provision at  52.207-1, Notice of Standard Competition.                                          (b)                    						            The contracting officer shall, when soliciting offers, insert in solicitations issued for streamlined competitions the provision at  52.207-2, Notice of Streamlined Competition.                                          (c)                    						            The contracting officer shall insert the clause at  52.207-3, Right of First Refusal of Employment, in all solicitations which may result in a conversion from in-house performance to contract performance of work currently being performed by the Government and in contracts that result from the solicitations, whether or not a public-private competition is conducted. The 10-day period in the clause may be varied by the contracting officer up to a period of 90 days.
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