A-76 ACRONYMS AND GLOSSARY

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Business Opportunities
FTE Full Time Equivalent
GAO General Accounting Office
GFP Government Furnished Equipment
HRA Human Resource Advisor
IRS Internal Revenue Service
MEO Most Efficient Organization
OCS Office of Competitive Sourcing
OMB Office Of Management and Budget
POP Period of Performance
PWS Performance Work Statement
SCF Standard Competition Form
SLCF Streamlined Competition Form
SSA Source Selection Authority
SSEB Source Selection Evaluation Board
GLOSSARY
Term Definition
Activity A specific task or grouping of tasks that provides a specialized
capability, service or product based on a recurring government
requirement. Depending on the grouping of tasks, an activity may be
an entire function or may be a part of a function. An activity may be
inherently governmental or commercial in nature.
Adversely Affected
Employees
Federal civilian employees serving competitive or excepted service
appointments in Tenure Groups I, II, or III, who are identified for
release from their competitive level by an agency, in accordance with
5 C.F.R. Part 351 and 5 U.S.C. Chapter 35, as a direct result of a
performance decision resulting from a streamlined or standard
competition
Agency Cost Estimate The part of the agency tender in a standard competition that includes
the agency’s cost proposal and represents the full cost of agency
performance of the commercial activity, based on the requirements in
the solicitation and the costing policy in Attachment C [of Circular A-
76]. The agency cost estimate for a streamlined competition is
developed in accordance with Attachments B and C of Circular A-76].
GLOSSARY
Term Definition
Agency Performance Performance of a commercial or inherently governmental activity with
government personnel. Often referred to as “in-house performance.”
Agency Tender The agency management plan submitted in response to a solicitation
for a standard competition. The agency tender includes an MEO,
agency cost estimate, MEO quality control plan, MEO phase-in plan,
and copies of any MEO subcontracts (with the private sector
providers’ proprietary information redacted). The agency tender is
prepared in accordance with Attachment B [of Circular A-76] and the
solicitation requirements.
Agency Tender
Official (ATO)
An inherently governmental agency official with decision-making
authority who is responsible for the agency tender and represents the
agency tender during source selection.
Annualize The calculation method to convert a cost to an annual basis. The
calculation converts a cost for a performance period that is less than
one full year into an annual cost to correctly reflect the cost in a
government cost estimate.
Basic Pay Basic pay for GS employees is a position’s annual salary plus any
other applicable civilian employee pay entitlements. Basic pay for
FWS employees is a position’s annual wages including shift
differential pay and environmental pay, plus any other applicable
civilian employee pay entitlements. Examples of other civilian
employee pay entitlements include, but are not limited to, night
differential pay for FWS employees, environmental differential pay,
and premium pay (for civilian employee fire fighters and law
enforcement officers).
Capital Improvement An expenditure for a physical improvement to an existing capital
asset such as additions and major alterations that are intended to
improve performance or increase useful life.
Civilian Employee An individual who works for a federal agency, in this case the IRS, on
an appointment without time limitation who is paid from appropriated
funds, which includes working capital funds. A foreign national
employee, temporary employee, term employee, non-appropriated
fund employee, or uniformed personnel is not included in this
definition.
Commercial Activity A recurring service that could be performed by the private sector.
Commercial activities may be found within, or throughout,
organizations that perform inherently governmental activities or
classified work.
Common Costs Specific costs identified in the solicitation that will be incurred by the
government regardless of the provider (private sector, public
reimbursable, or agency). Common costs are sometimes referred to as
wash costs. Examples of common costs include government-furnished
GLOSSARY
Term Definition
property, security clearances, and joint inventories.
COMPARE The windows-based A-76 costing software that incorporates the
costing procedures of this circular. Agencies must use COMPARE to
calculate and document the costs on the SLCF for a streamlined
competition or the SCF for a standard competition. The software is
available through the SHARE A-76! website at
http://emissary.acq.osd.mil/inst/share.nsf.
COMPARE Version
Control Log
The document that describes each of the changes made in a particular
version of the COMPARE software. This document includes a brief
description of the change, the area of the software program affected
by the change, and the impact the change has on the SCF/SLCF
and/or documentation.
COMPARE User's
Guide
A detailed guidebook for actual users of COMPARE that includes an
in-depth explanation of the use and features of the COMPARE
software program.
COMPARE Tables A specific set of master tables incorporated into the COMPARE costing
software that includes all of the approved standard cost factors and
rates used to calculate the SCF/SLCF costs.
Competition A formal evaluation of sources to provide a commercial activity that
uses pre-established rules (e.g., the FAR, this circular). Competitions
between private sector sources are performed in accordance with the
FAR. Competitions between agency, private sector, and public
reimbursable sources are performed in accordance with the FAR and
this circular. The term “competition,” as used in this circular includes
streamlined and standard competitions performed in accordance with
this circular, and FAR-based competitions for agency-performed
activities, contracted services, new requirements, expansions of
existing work, and activities performed under fee-for-service
agreement. The term also includes cost comparisons, streamlined cost
comparisons, and direct conversions performed under previous
versions of OMB Circular A-76.
Competition File The documents used in a standard competition in addition to the
government contract files required by FAR Subpart 4.8. Agencies
maintain this file regardless of the source selected to perform the
activity.
Competition Officials These are agency officials appointed before a standard competition
is announced. These individuals perform key roles and have essential
responsibilities for the successful completion of the standard
competition. Competition officials are the agency tender official,
contracting officer, source selection authority, human resource advisor,
and PWS team leader.
Competitive Sourcing An inherently governmental agency official responsible for the
GLOSSARY
Term Definition
Official (CSO) implementation of this circular within the agency.
Component An organizational grouping within an agency, such as a bureau,
center, military service, or field activity.
Contracting Officer
(CO)
An inherently governmental agency official who participates on the
PWS team, and is responsible for the issuance of the solicitation and
the source selection evaluation methodology. The CO awards the
contract and issues the MEO letter of obligation or fee-for-service
agreement resulting from a streamlined or standard competition. The
CO and the SSA may be the same individual.
Conversion From
Contract
A change in the performance of a commercial activity from a private
sector provider to agency performance.
Conversion To
Contract
A change in the performance of a commercial activity from agency
performance to a private sector provider.
Depreciation The decline in the value of a capital asset. Depreciation represents a
cost of ownership and the consumption of an asset’s useful life.
Direct Labor Manpower resources dedicated to performing the requirements of the
solicitation and labor for supervision and management related
support to the tender (e.g., MEO) such as labor for quality control.
Directly Affected
Employees
Civilian employees whose work is being competed in a streamlined or
standard competition.
Directly Affected
Government
Personnel
Government personnel whose work is being competed in a
streamlined or standard competition.
Directly Interested
Party
The agency tender official who submitted the agency tender; a single
individual appointed by a majority of directly affected employees as
their agent; a private sector offeror; or the official who certifies the
public reimbursable tender.
Divestiture An agency’s decision to eliminate a government requirement for a
commercial activity. No service contract or fee-for-service agreement
exists between the agency and the private sector after a divestiture.
By divesting of a commercial activity, an agency elects not to control
the activity and cedes ownership and control of the activity’s
associated assets (e.g., equipment, facilities, property) and resources
(agency manpower and budgeting for the activity). The agency has
no role in the financial support, management, regulation, or oversight
of a divested activity. Moving, transferring, or converting a
commercial activity from government performance to private sector or
public reimbursable performance is not a divestiture.
Employee Transition A written plan developed by the HRA for the potential transition of
GLOSSARY
Term Definition
Plan the agency’s civilian employees to an MEO, or to private sector or
public reimbursable performance. This plan is developed early in the
streamlined or standard competition process, based on the incumbent
government organization, to identify projected employee impacts and
the time needed to accommodate such impacts, depending on the
potential outcomes of the competition. The employee transition plan
differs from a phase-in plan, which is developed by prospective
providers responding to a solicitation.
End Date The end date for a streamlined or standard competition is the date
that all SCF certifications are completed, signifying an agency’s
performance decision.
Expansion An increase in the operating cost of an existing commercial activity
based on modernization, replacement, upgrade, or increased
workload. An expansion of an existing commercial activity is an
increase of 30 percent or more in the activity’s operating costs
(including the cost of FTEs) or total capital investment.
FedBizOpps.gov The website where the government electronically advertises
solicitations or requirements.
Fee-for-Service
Agreement
A formal agreement between agencies, in which one agency provides
a service (a commercial activity) for a fee paid by another agency.
The agency providing the service is referred to in this circular as a
public reimbursable source.
First Period of Full
Performance
The performance period following the phase-in period when the
service provider becomes fully responsible for performing the activity.
The first performance period is used to implement the new service
provider’s phase-in plan; therefore, full performance of the service
provider does not occur until the second performance period, which
may be referred to as the base period, full performance, or the first
period of full performance. This first period of full performance may
be less than or more than 12 months. The first period of full
performance is the second performance period (the performance
period immediately following phase-in period) regardless of the
second performance period’s length.
Foreign National
Employee
An employee that is not a United States citizen who is employed by
the United States Government and works outside the United States, its
territories or possessions, under a system in which an Executive Agency
is the official employer of the foreign national employee and assumes
responsibility for all administration and management functions
associated with the employee’s employment.
Full-Time Equivalent
(FTE)
The staffing of Federal civilian employee positions, expressed in terms
of annual productive work hours (1,776) rather than annual available
hours that includes non-productive hours (2,080 hours). FTEs may
reflect civilian positions that are not necessarily staffed at the time of
GLOSSARY
Term Definition
public announcement and staffing of FTE positions may fluctuate
during a streamlined or standard competition. The staffing and
threshold FTE requirements stated in this circular reflect the workload
performed by these FTE positions, not the workload performed by
actual government personnel. FTEs do not include military personnel,
uniformed services, or contract support.
Function Code The numerical code used to categorize an agency’s commercial and
inherently governmental activities for inventory reporting purposes.
Government
Furnished Property
(GFP)
Facilities, equipment, material, supplies, or other services provided by
the government for use by all prospective providers in the solicitation.
Costs for GFP included in a solicitation are considered common costs.
Replacement costs, insurance, maintenance and repair costs for GFP
may or may not be government-furnished, depending on the
provisions in the solicitation.
Government
Personnel
Civilian employees, foreign national employees, temporary
employees, term employees, non-appropriated fund employees, and
uniformed services personnel employed by an agency to perform
activities.
Human Resource
Advisor (HRA)
An inherently governmental agency official who is a human resource
expert and is responsible for performing human resource-related
actions to assist the ATO in developing the agency tender.
Incumbent Service
Provider
The source (i.e., agency, private sector, or public reimbursable source)
providing the service when a public announcement is made of the
streamlined or standard competition.
Information
Technology
Any equipment or interconnected system(s) or subsystem(s) of
equipment used in the automatic acquisition, storage, manipulation,
management, movement, control, display, switching, interchange,
transmission, or reception of data or information by the agency. For
purposes of this definition, equipment is used by an agency if the
equipment is used directly by the agency, or is used by a contractor
under a contract with the agency that requires (1) its use or (2) to a
significant extent, its use in the performance of a service or the
furnishing of a product. The term "information technology" includes
computers, ancillary equipment, software, firmware and similar
procedures, services (including support services), and related
resources, and does not include any equipment that is acquired by a
contractor incidental to a contract; or contains imbedded information
technology that is used as an integral part of the product, but the
principal function of which is not the acquisition, storage, manipulation,
management, movement, control, display, switching, interchange,
transmission, or reception of data or information. For example,
heating, ventilation, and air conditioning equipment, such as
thermostats or temperature control devices, and medical equipment
where information technology is integral to its operation, are not
GLOSSARY
Term Definition
information technology.
Inherently
Governmental
Activities
An activity that is so intimately related to the public interest as to
mandate performance by government personnel as provided by
Attachment A [of Circular A-76].
Interested Parties For purposes of challenging the contents of an agency’s commercial
activities inventory pursuant to the Federal Activities Inventory Reform
Act, an interested party is (1) a private sector source that is an actual
or prospective offeror for a contract or other form of agreement to
perform the activity and has a direct economic interest in performing
the activity that would be adversely affected by a determination not
to procure the performance of the activity from a private sector
source; (2) a representative of any business or professional
association that includes within its membership private sector sources
referred to in (1) above; (3) an officer or employee of an
organization within an executive agency that is an actual or
prospective offeror to perform the activity; (4) the head of any labor
organization referred to in section 7103(a)(4) of title 5, United States
Code, that includes within its membership officers or employees of an
organization referred to in paragraph (3).
Inventory A list of government personnel, by location, function, and position,
performing either commercial activities or inherently governmental
activities.
MEO Letter of
Obligation
A formal agreement that an agency implements when a standard or
streamlined competition results in agency performance (e.g., MEO).
MEO Subcontracts Contracts between an agency and the private sector that are included
in the agency tender or fee-for service agreements with a public
reimbursable source that are included in the agency tender. In
addition to the cost of MEO subcontracts, agency or public
reimbursable cost estimates must include support costs associated with
MEO subcontracts such as government-furnished property, and
contract administration, inspection, and surveillance.
MEO Team A group of individuals, comprised of technical and functional experts,
formed to assist the ATO in developing the agency tender.
Military Personnel Officers [as defined in 10 U.S.C. § 101(b)(1)] and enlisted members
[as defined in 10 U.S.C. § 101(b)(6)] of the military services (defined
as the Army, Navy, Air Force, and Marine Corps).
Most Efficient
Organization (MEO)
The staffing plan of the agency tender, developed to represent the
agency’s most efficient and cost-effective organization. An MEO is
required for a standard competition and may include a mix of
government personnel and MEO subcontracts.
GLOSSARY
Term Definition
New Requirement An agency’s newly established need for a commercial product or
service that is not performed by (1) the agency with government
personnel; (2) a fee-for-service agreement with a public reimbursable
source; or (3) a contract with the private sector. An activity that is
performed by the agency and is reengineered, reorganized,
modernized, upgraded, expanded, or changed to become more
efficient, but still essentially provides the same service, is not
considered a new requirement. New ways of performing existing
work are not new requirements.
Non-Pay Categories
of Costs
Costs in a cost estimate that are not related to pay. Non-pay
categories of costs include, but are not limited to, materials, supplies,
equipment, facilities, capital assets, and minor items and the inflation
for these costs.
Offer A private sector source’s formal response to a request for proposals
or invitation for bid. The term “offeror” refers to the specific source
rather than the response.
Overhead Overhead includes two major categories of cost, operations overhead
and general and administrative overhead. Operations overhead
includes costs that are not 100 percent attributable to the activity
being competed but are generally associated with the recurring
management or support of the activity. General and administrative
overhead includes salaries, equipment, space, and other tasks related
to headquarters management, accounting, personnel, legal support,
data processing management, and similar common services performed
external to the activity, but in support of the activity being competed.
A standard twelve percent overhead factor is an estimated federal
agency overhead factor that is calculated in agency and public
reimbursable cost estimates for streamlined and standard
competitions
Past Performance An indicator that may be used in the source selection process to
evaluate a prospective provider’s previous performance on work
comparable to that being competed, for the purpose of predicting the
quality of future performance relative to other offers or public
reimbursable tenders. FAR 42.1501 describes the information used to
evaluate past performance, and FAR 15.305(a)(2) provides guidance
for the consideration of past performance in the source selection
process.
Pay Categories of
Cost
Costs in a cost estimate associated with the payroll for government
personnel, including inflation.
Performance Decision The outcome of a streamlined or standard competition, based on SLCF
or SCF certifications.
Performance Verifiable, measurable levels of service in terms of quantity, quality,
timeliness, location, and work units. Performance standards are used in
GLOSSARY
Term Definition
Standards a performance-based PWS to (1) assess (i.e., inspect and accept) the
work during a period of performance; (2) provide a common outputrelated
basis for preparing private sector offers and public tenders;
and (3) compare the offers and tenders to the PWS. The requiring
activity’s acceptable levels of service are normally stated in the PWS.
The solicitation includes performance standards.
Performance Work
Statement (PWS).
A statement in the solicitation that identifies the technical, functional,
and performance characteristics of the agency’s requirements. The
PWS is performance-based and describes the agency’s needs (the
“what”), not specific methods for meeting those needs (the “how”). The
PWS identifies essential outcomes to be achieved, specifies the
agency’s required performance standards, and specifies the location,
units, quality and timeliness of the work.
Phase-in Plan A prospective provider’s plan to replace the incumbent provider(s)
that is submitted in response to the solicitation. The phase-in plan is
implemented in the first performance period and includes details on
minimizing disruption, adverse personnel impacts, and start-up
requirements. The phase-in plan is different from the employee
transition plan developed by the HRA.
Privatization A federal agency decision to change a government-owned and
government-operated commercial activity or enterprise to private
sector control and ownership. When privatizing, the agency eliminates
associated assets and resources (manpower for and funding of the
requirement). Since there is no government ownership and control, no
service contract or fee-for-service agreement exists between the
agency and the private sector after an agency privatizes a
commercial activity or enterprise. Moving work from agency
performance with government personnel to private sector
performance where the agency still funds the activity is not
privatization.
Prospective Providers Private sector, public reimbursable, and agency sources that may
submit responses (offers or tenders) in response to an agency’s
solicitation.
Provider An agency, private sector, or public reimbursable source that is
performing, or will perform, a commercial activity; sometimes referred
to as a service provider.
Public Announcement An agency’s formal declaration that the agency has made a (1)
decision to perform a streamlined or standard competition, or (2)
performance decision in a streamlined or standard competition. The
CO makes these announcements via FedBizOpps.gov.
Public Reimbursable
Source
A service provider from a federal agency that could perform a
commercial activity for another federal agency on a fee-for-service
or reimbursable basis by using either civilian employees or federal
GLOSSARY
Term Definition
contracts with the private sector.
Public Reimbursable
Tender
A federal agency’s formal response to another federal agency’s
solicitation for offers or tenders. The public reimbursable tender is
developed in accordance with this circular and includes a cost
estimate, prepared in accordance with Attachment C [of Circular A-
76].
PWS Team A group of individuals, comprised of technical and functional experts,
formed to develop the PWS and quality assurance surveillance plan,
and to assist the CO in developing the solicitation.
Quality Assurance
Surveillance
The government’s monitoring of a service provider’s performance in
accordance with the quality assurance surveillance plan and the
performance requirements identified in the solicitation.
Quality Assurance
Surveillance Plan
The government’s inspection plan. The quality assurance surveillance
plan documents methods used to measure performance of the service
provider against the requirements in the PWS. The agency relies on
the service provider to monitor daily performance using their own
quality control plan, but retains the right to inspect all services. When
the agency makes a performance decision, the agency re-evaluates
and modifies the existing quality assurance surveillance plan, based
upon the selected provider and the selected provider’s accepted
quality control plan.
Quality Control Plan A self-inspection plan that is included in all offers and tenders. The
quality control plan describes the internal staffing and procedures
that the prospective provider will use to meet the quality, quantity,
timeliness, responsiveness, customer satisfaction, and other service
delivery requirements in the PWS.
Representatives of
Directly Affected
Employees
In the case of directly affected employees represented by a labor
organization accorded exclusive recognition under 5 U.S.C. § 7111, a
representative is an individual designated by that labor organization
to represent its interests. In the case of directly affected employees
not represented by a labor organization under 5 U.S.C. § 7111, a
representative is an individual appointed by directly affected
employees as their representative.
Residual Value The estimated value of a capital asset at the end of its useful life as
determined by application of the Useful Life and Disposal Value Cost
Factor.
Resources Funding allocated for contracts, manpower, facilities, material, or
equipment to perform agency requirements.
Segregable Expansion An increase to an existing commercial activity that can be separately
competed.
GLOSSARY
Term Definition
SHARE A-76! The Department of Defense A-76 knowledge management system
used to share knowledge, information, and experience about publicprivate
competitions. This public site contains A-76-related guidance,
sample documents, best practices, tools, and links to other A-76
websites and sources for A-76-related information. Users may post
best practices used in public-private competitions, research A-76
through the use of search engines, and submit internet links to add to
the available links in SHARE A-76! The website address is
http://emissary.acq.osd.mil/inst/share.nsf/.
Solicitation Closing
Date
The due date for delivery of private sector offers, public
reimbursable tenders, and the agency tender, as stated in the
solicitation.
Source One of three specific categories of service providers (i.e., agency,
private sector, or public reimbursable) that can perform a commercial
activity for an agency.
Source Selection
Authority (SSA)
A competition official with decision-making authority who is
responsible for source selection as required by the FAR and this
circular. The SSA and CO may be the same individual.
Source Selection
Evaluation Board
(SSEB)
The team or board appointed by the SSA to assist in a negotiated
acquisition.
Standard Competition
Form (SCF)
The agency form that documents and certifies all costs calculated in
the standard competition.
Start Date The start date for a streamlined or standard competition is the date
that the agency makes a formal public announcement of the agency’s
decision to perform a streamlined or standard competition.
Streamlined
Competition Form
(SLCF)
The agency form that documents and certifies all costs calculated in
the streamlined competition, in accordance with Attachment C [of
Circular A-76].
Uniformed Services Members of the armed forces (i.e., Army, Navy, Air Force, Marine
Corps, and Coast Guard) and other uniformed services (e.g., National
Oceanic and Atmospheric Administration, Public Health Service).
Useful Life The estimated period of economic usefulness of a capital asset.

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