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The FAIR Act and OMB policy requires each agency to submit an annual inventory of its commercial and inherently governmental functions to OMB and Congress.



In 1998, the Federal Activities Inventory Reform (FAIR) Act (P.L. 105-270) was signed into law. This Act mandated Executive Branch compliance with a revised inventory process and assigned the Office of Management and Budget (OMB) with the responsibility to guide and monitor compliance. Circular A-76 and OMB memorandums provide guidance on how to comply with the FAIR Act.

The FAIR Act requires Federal agencies to prepare and submit to the OMB inventories of commercial​ activities performed by Federal employees. OMB Circular A-76 further requires agencies to submit inventories of their inherently governmental activities to OMB.

By annually reviewing and revising complete workforce inventories, agencies are better able to understand the functions the workforce is performing and how those functions relate to the agency’ s mission. Agency managers use this analysis to improve ways of managing their 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.


Additional Reference​

FAIR Act Overview ​​
FAIR Act Laws, Policies and Memoranda​​​​
FAIR Act Coordinators​​​​​​​​

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Contacting FairAct

Division of Compliance Management

Lead, Charlotte Dick-Shannon

Office of Management Assessment

Office of Management

Office of the Director

6705 Rockledge Dr.
Suite 601
Bethesda, MD 20892

Phone:(301) 402-5743