According to OMB Circular A-76, one approach to improving government efficiency is?

According to OMB Circular A-76, one approach to improving government efficiency is?

• A. Expanding federal mandates
• B. Centralizing procurement
• C. Promoting the use of commercial activities
• D. Increasing government payroll

Answer: (D)

A main concept here is driving efficiency by using private-sector capabilities through competition with in-house work. OMB Circular A-76 guides agencies to compare in-house performance with private-sector performance and to use competition to pick the most cost-effective method. A central approach is promoting the use of commercial activities—relying on private contractors when they can perform the function cheaper or with equal or better quality, thereby improving overall efficiency and reducing costs. Looking at the options, expanding federal mandates tends to add requirements and costs rather than improve efficiency; centralizing procurement can yield some savings but isn’t the primary mechanism A-76 promotes for efficiency; increasing government payroll increases costs and would run counter to efficiency goals. Promoting the use of commercial activities directly reflects A-76’s method for achieving efficiency.

A main concept here is driving efficiency by using private-sector capabilities through competition with in-house work. OMB Circular A-76 guides agencies to compare in-house performance with private-sector performance and to use competition to pick the most cost-effective method. A central approach is promoting the use of commercial activities—relying on private contractors when they can perform the function cheaper or with equal or better quality, thereby improving overall efficiency and reducing costs.

Looking at the options, expanding federal mandates tends to add requirements and costs rather than improve efficiency; centralizing procurement can yield some savings but isn’t the primary mechanism A-76 promotes for efficiency; increasing government payroll increases costs and would run counter to efficiency goals. Promoting the use of commercial activities directly reflects A-76’s method for achieving efficiency.