4/2/10: NTEU applauded a victory for federal workers it has been pursuing for seven years—a return to the definition of ‘inherently governmental’ work contained in federal law that clearly identifies the work of the public that should remain in the hands of federal employees. A 2003 Circular had improperly narrowed this definition.

NTEU had strongly recommended the adoption, as the sole definition of inherently governmental, of the statutory language contained in the Federal Activities Inventory Reform (FAIR) Act of 1998. The FAIR Act language defines inherently governmental as “a function which is so intimately related to the public interest as to mandate performance by government employees.”

“The bottom line is ensuring that federal employees perform the essential work of government and that agencies have control over their missions and operations,” said NTEU National President Colleen Kelley. “This proposal makes great strides in that direction.” Throughout the previous administration, Kelley was a leader in ongoing efforts to curb the runaway contracting to the private sector of government work. The change comes in the form of a proposed policy letter advanced by the Office of Federal Procurement Policy (OFPP).

“I commend the Obama administration for its willingness to address this important and complex subject and to take these steps that will result in more effective and efficient delivery of services to the public,” said President Kelley. “The administration’s intent is clear: that federal employees should perform key work.”

Last July, NTEU sent comments to the Office of Management and Budget (OMB) emphasizing that the FAIR Act definition of inherently governmental “is long-standing and provides both sufficient guidance and needed flexibility in determining which functions are best reserved for government workers.” OMB is the lead agency in administration efforts to return a balance to federal contracting.

In 2003, OMB revised its Circular A-76, which governs federal contracting, to open up significantly more federal work to the private sector. Largely as a result of those change in the rules, federal contracting soared, reaching some $400 billion in 2008, up from $207 billion in 2000.

“We are looking closely at questions posed in the letter,” Kelley said, “and we will address them in detail in comments to OMB,” which are due by June 1. “There are so many important issues addressed here—accountability, loss of institutional knowledge, oversight, fiscal responsibility—getting it right is critical,” said Kelley.

Kelley also reiterated NTEU’s continuing support for legislation addressing a variety of federal contracting issues, including reforming Circular A-76 and giving federal employees a chance to compete for certain types of work that already has been outsourced by agencies. The companion measures are H.R. 2637, introduced by Rep. John Sarbanes (D-Md.), and S. 924, introduced by Sen. Barbara Mikulski (D-Md.)