This Directive was canceled November 16, 2004.
U.S. Department of Transportation
Federal Highway Administration
May 15, 1981
(1) Approve new starts of CI activities or the conversion of existing in-house CI activities to contract, where the capital investment or annual operating cost is $500,000 or more.
(2) Approved waivers for future A-76 reviews of an in-house CI activity with a capital investment or annual operating cost of $500,000 or more.
(3) Serve as the FHWA appeals official, who will conduct an independent review of and decide on written appeals made by parties affected by A-76 approval actions of paragraph 5b(5).
(1) Notify the FHWA contact point (Office of Management Systems, Systems and Surveys Division (HMS-30)) of a proposed new or expanded CI activity at such a time as a decision has been made to acquire the product or service in order to determine a schedule for an A-76 review of the activity.
(2) Approve changes in the A-76 review schedule listed in the FHWA inventory of in-house and contract CI activities, where such changes will be in the interest of the Government.
(3) Notify affected employees and their representatives providing 60 days notice of A-76 reviews scheduled; such notice is also required when changes are approved in the review schedule.
(4) Conduct an A-76 review of each CI activity to determine whether in-house or contract performance is required (where appropriate, other staff offices will participate in the review process -- see paragraph 6b).
(5) Following A-76 reviews, approve:
(a) new starts of CI activities or the conversion of existing in-house CI activities to contract, where the capital investment or annual operating cost is less than $500,000;
(b) expansions of existing in-house activities;
(c) continuation of existing in-house or contract activities; and
(d) waivers for future A-76 reviews of an in-house CI activity with a capital investment or annual operating cost under $500,000.
(6) Following A-76 reviews, recommend approval to the Administrator of:
(a) new starts of CI activities or the conversion of existing in-house CI activities to contract, where the capital investment or annual operating cost is $500,000 or more; and
(b) waivers for future A-76 reviews of an in-house CI activity with a capital investment or annual operating cost of $500,000 or more.
(1) The Office of Management Systems, Systems and Surveys Division (HMS-30). This office, which will act as the FHWA contact point for OMB Circular A-76, has overall responsibility for coordinating implementation of A-76 actions, and shall:
(a) prepare and maintain an inventory of and review schedule for FHWA's in-house and contract CI activities;
(b) in cooperation with other responsible offices, assist in implementation of the A-76 review process; and
(c) monitor the implementation of the A-76 review process to ensure effective accomplishment.
(2) The Office of Contracts and Procurement. This office is responsible for any procurement actionsrelative to the cost comparison process, including review of the statement of work, issuance of a solicitation, bid openings or negotiations, and contract award (if appropriate).
(3) The Office of Fiscal Services. This office shall conduct an independent validation of comparative cost studies prepared in connection with reviews of FHWA CI activities, to ensure conformance with the A-76 Cost Comparison Handbook.
(1) The inventory covering the FHWA's in-house and contract CI activities is updated at the beginning of each fiscal year. The inventory contains a schedule to review each activity to determine whether in-house or contract performance of the activity is appropriate. The current inventory and schedule is provided as Attachment 1.
(2) Initial review of in-house activities will be performed during a 3-year period ending in March 1983 in accordance with the current inventory schedule. Subsequently, each in-house activity will be reviewed on a 5-year cycle, unless a waiver is obtained. A waiver is obtainable where the initial review indicates that the circumstances which supported approval for continued in-house performance of the activity are not subject to change. After initial review of a contract activity, a subsequent review will be conducted prior to completion of the contract or the final contract option period.
(3) A-76 reviews are scheduled and conducted in conjunction with the annual budget process to assure that the necessary resources are available to implement A-76 review decisions.
(1) The review of a CI activity required by A-76 isbasically a two-step process. The first step involves the application of non-cost criteria to determine whether any of these criteria require or justify in-house performance of the CI activity. Such criteria would include a determination that (a) the activity is by nature a governmental function, (b) no satisfactory commercial source is available, or (c) use of a private commercial source would cause unacceptable delay or disruption of an essential program. If non-cost criteria do not apply, the second step, a comparative cost analysis, is performed. Due to the time and expense of such a cost analysis, it is normally only undertaken for CI activities where annual operating costs exceed $100,000.
(2) Where a comparative cost analysis is required, several FHWA staff functions will be involved. To coordinate the responsibilities related to these staff functions, meet established scheduling requirements, and ensure responsiveness to affected parties, a task group approach should be utilized. For CI activities in the Washington Headquarters, the task group will consist of representatives from the offices listed in paragraphs 5b and c of this Order and other staff functions as appropriate, and be chaired by the office responsible for the A-76 review.
R. A. Barnhart
Federal Highway Administrator