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M-00-11, Year 2000 Inventory of Commercial Activities

April 27, 2000



FROM:Sylvia M. Mathews 
Deputy Director

SUBJECT:Year 2000 Inventory of Commercial Activities

The "Federal Activities Inventory Reform Act of 1998," P.L.105-270 (the FAIR Act), requires Federal agencies to prepare and submit to OMB, by June 30 th of each year, inventories of their commercial activities performed by Federal employees. OMB is required to review each agency's inventory and consult with the agency regarding its content. Upon completion of this review and consultation, the Agency Head must transmit a copy of the inventory to the Congress and make it available to the public. The FAIR Act then establishes a two-step administrative challenge and appeals process under which an interested party may challenge the omission or the inclusion of a particular activity on the inventory as a commercial activity. While the FAIR Act does not require agencies to privatize, outsource or compete its commercial activities, it does require the Agency Head to review the final inventory. Each time that the Agency Head considers outsourcing to the private sector a competitive process is required.

As in the case of any new process, the first round of implementation reveals areas where improvements can be made. As OMB completed its review of the 1999 inventories and began looking towards the 2000 inventory process, OMB asked interested parties from Congress, the private sector, the Federal employee unions and the agencies to provide their views and recommendations on how the process could be improved. As a result, OMB is making several supplemental changes for the upcoming Year 2000 inventory process. Agencies are requested to prepare their Year 2000 Inventory of Commercial Activities in accordance with the FAIR Act, OMB Circular A-76 Transmittal Memorandum No. 20 and the attached supplemental guidance.

Year 2000 FAIR Act Commercial Activities Inventory Data Call

Year 2000 Reporting Instructions and Definitions

Reason Code Clarifications

Year 2000 Revised/Updated Function/Activity Codes