How does the FAIR Act relate to A-76?
The FAIR Act provides that each time the head of an executive agency considers contracting with a private sector source for the performance of an activity included on the FAIR Act inventory, the agency must use a competitive process to select the source and must ensure that, when a cost comparison is used or otherwise required for the comparison of costs, all costs are considered and the costs considered are realistic and fair. OMB has directed that in carrying out these requirements, agencies must rely on the guidance contained in OMB Circular A-76 and its Supplemental Handbook.
Essentially, the FAIR Act inventory is the planning document from which candidates are selected for A-76 (public-private) competitions. The FAIR Act Inventory should fairly, accurately, and completely represent an agency’s requirements in meeting its mission. For those commercial activities identified on the inventory that an agency deems could be performed by the private sector, OMB Circular A-76 requires that an executive agency must use a competitive process to select the appropriate source to perform the commercial activities. Whether or not a commercial activity is sourced through the private sector, or through the public sector, the A-76 process ensures that the process is realistic, fair, and transparent.
