Glossary

The following are commonly used terms in the commercial services management process.

Action Plan A document used to guide the implementation of business process improvements. It contains task assignments, milestones, timelines, resource allocations, data collection methodology, and evaluation cri

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.

Administrative Appeal Authority With receipt of an appeal, the official designated in paragraph 9a of the Circular A-76, or designee, assigns an official(s) to serve on an A-76 Administrative Appeal Authority for that appeal. The individual(s) selected must be: (a) independent of the activity under review or, (b) at least two organizational levels above the official who certified the Government's Management Plan and MEO. The Appeal Authority reviews appeals to ensure that all costs are properly accounted for in accordance with the principles and procedures of this Supplemental Handbook. The Authority shall also ensure that all participants have full and equal access to the decision process.

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.

Agency Performance Performance of a commercial or inherently governmental activity with government personnel. Often referred to as “in-house performance.

Agency Source A service provider staffed by government personnel.

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 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. This calculation is performed by first dividing the cost in the performance period by the number of days in the performance period to determine the corresponding daily cost and then multiplying the daily cost by 365.25 days to determine the annualized cost. To account for leap years, 365.25 is the average number of days in a year.

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).

Benchmarking Performance comparison of organization business processes against an internal or external standard of recognized leaders. Most often the comparison is made against a similar process in another organization considered to be "world class."

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 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 (CA) A recurring service that could be performed by the private sector. This recurring service is an agency requirement that is funded and controlled through a contract, fee-for-service agreement, or performance by government personnel. Commercial activities may be found within, or throughout, organizations that perform inherently governmental activities or classified work.

Commercial source A commercial source is any business or other non-Federal activity that is eligible for contract award in accordance with Federal Acquisition Regulations.

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 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! web site at http://emissary.acq.osd.mil/inst/share.nsf/.

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.

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 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.

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 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 The 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 The process of obtaining the best value in the provision of commercial activities; utilizing Circular A76 standard competition process to develop a performance work statement (PWS), structure a most efficient organization (MEO) of the in-house government work force, and then compare the MEO with any qualified commercial providers based on the requirements developed in the PWS. Standard competitions are mandated by OMB circular A-76 for commercial activities involving more than 65 FTE positions. In this process, there is no assumption that the private sector will win the competition. This process has been referred to as "outsourcing" or "contracting-out", but only "competitive sourcing" accurately describes and refers to the A-76 process.

Competitive Sourcing Official (CSO) An inherently governmental agency official responsible for the implementation of Circular A-76 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 Differential The minimum gained savings projected before converting from one method of operation to another. The differential reflects the unpredictable costs inherent in changing the status quo. These include such costs as retained pay and the temporary loss of productivity associated with a conversion. The conversion differential is the lesser of ten percent of government personnel cost or $10 million over the performance period.

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.

Core Competency A set of skills that an organization must perform well for the organization to be successful. Core competencies define the essence of "who the organization is."

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 Presonnel 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 Plan