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A Study of Overhead Rate Behavior at a U.S. Air Force Base in the Context of A-76 Competitions

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Doctoral thesis

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If the Air Force decides that a specific function is required, it can acquire it three different ways. It can 1 perform the function itself i.e., in-house, 2 contract out i.e., outsource to another government organization e.g., General Services Administration in what is called an Interservice Support Agreement ISSA, or 3 outsource to a private organization. When choosing the source that should perform a particular function, there are a number of issues that should be considered, including cost, quality, legislation, and the policy environment. In accordance with current Department of Defense DoD policy, the Air Force is increasingly looking toward the private sector to achieve cost-effective performance of what the Office of Management and Budget OMB calls commercial activities. A commercial activity CA is one which is operated by a Federal executive agency and which provides a product or service that could be obtained from a commercial source. It is the policy of the United States Government to 1 achieve economy and enhance productivity through the use of competition, 2 retain governmental functions in-house, and 3 rely on the commercial sector to provide a commercial product or service if it can be procured more economically. This national policy was promulgated through Bureau of the Budget Bulletins issued in 1955, 1957 and 1960. OMB Circular No. A-76, which establishes Federal policy regarding the performance of commercial activities, was originally issued in 1966. It was revised in 1967, 1979, 1983, and again in 1999. The Circular A-76 Supplemental Handbook, which describes procedures for determining whether commercial activities should be performed under contract with commercial sources or in-house using Government facilities and personnel, was initially issued in 1979. It was updated in 1983 and again in March 1996.

Subject Categories:

  • Administration and Management
  • Personnel Management and Labor Relations

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