The Federal Activities Inventory Reform (FAIR) Act (P.L. 105-270) requires each Federal agency to conduct an inventory of the commercial activities its Federal employees perform. The FAIR Act assigned the Office of Management and Budget (OMB) to monitor agency compliance, and OMB issued Circular A-76 to provide additional guidance. Each Federal agency must prepare and submit to OMB an inventory of the activities performed by its Federal employees, classifying each activity as either commercial or inherently governmental.
HHS divisions submit their inventories to the HHS Office of Business Management and Transformation each year for review and consolidation in preparation for submission to OMB. By annually reviewing and revising a complete workforce inventory, HHS can better understand the functions its workforce is performing. HHS managers can use this analysis to improve human capital resource distribution. This inventory becomes the starting point in the analysis of functions that an agency may review under the A-76 program, also known as Competitive Sourcing. Functions found to be inherently governmental or commercial, but not suitable for competition, may undergo reengineering efforts or management reviews. Functions deemed suitable for competition may be examined as potential candidates for competitive sourcing studies.
Office of Business Management and Transformation
U.S. Department of Health and Human Services
200 Independence Ave., S.W.
Washington, D.C. 22201