Inherently Governmental Functions - Essay Example

In accordance with the circular, its main purpose is to achieve economy and enhance productivity, retain governmental functions in-house, and rely on the commercial sector. Though it provides a structure to the government for outsourcing functions but did not provide clear guidance to the contractors. Government personnel is the “inherently governmental” performing work in which policy and law functions in accordance to the “intimately related to the public interest”. Federal Activities Inventory Reform (FAIR) Act of 1998, legally defines the functions of the “inherently government”.

The fact is a difference between the work that must be performed by government employees versus what type of work should be performed by government employees. In 2009, Congress noticed the lack of clarity over whether the functions should only be performed by government employees or can be performed by either government employees or contractors. In Obama’s administration, this debate over the “inherently governmental” has prioritized the contracting policy memorandum on 4 March 2009 (Obama, 2009).

The memorandum states: Government outsourcing for services also raises special concerns. For decades, the Federal Government has relied on the private sector for necessary commercial services used by the Government, such as transportation, food, and maintenance. Office of Management and Budget Circular A-76, first issued in 1966, was based on the reasonable premise that while inherently governmental activities should be performed by Government employees, taxpayers may receive more value for their dollars if non-inherently governmental activities that can be provided commercially are subject to the forces of competition.

(Obama, 2009) The line between inherently governmental activities has been defined inadequately. And as a result, the contractors are performing inherently governmental functions. In response to the debate, the Office of Management and Budget has issued a policy letter. The Office of Federal Procurement Policy added functions and clarifications and define the line between Federal employees and contractors.