Definitions
FAR 7.301 requires contracting professionals to use definitions from OMB Circular A-76, Attachment D, to determine whether functions are inherently governmental or commercial for sourcing decisions.
Overview
FAR 7.301 provides definitions for terms used in Subpart 7.3, specifically referencing the definitions found in Attachment D of OMB Circular A-76 (Revised), dated May 29, 2003. This section is crucial for understanding what constitutes an "inherently governmental activity" and other key terms that determine whether a function should be performed by government personnel or can be contracted out. By referencing OMB Circular A-76, FAR 7.301 ensures consistency in terminology and interpretation across agencies when making sourcing decisions between government and contractor performance.
Key Rules
- Definitions Source
- All definitions relevant to Subpart 7.3, including "inherently governmental activity," are found in Attachment D of OMB Circular A-76 (Revised).
- Application of Definitions
- These definitions must be used when interpreting and applying the requirements of Subpart 7.3 regarding contractor versus government performance.
Responsibilities
- Contracting Officers: Must use the definitions from OMB Circular A-76 when determining if a function is inherently governmental or commercial.
- Contractors: Should understand these definitions to assess eligibility for contract opportunities and compliance with performance requirements.
- Agencies: Must ensure sourcing decisions are based on the correct definitions as set forth in the referenced Circular.
Practical Implications
- This section exists to standardize the terminology used in sourcing decisions, reducing ambiguity and ensuring compliance with federal policy.
- It impacts daily contracting by clarifying which activities can be outsourced and which must remain with government employees.
- Common issues include misinterpretation of what constitutes an inherently governmental function, leading to compliance risks or improper contracting.