Which circular addresses the Performance of Commercial Activities?

Which circular addresses the Performance of Commercial Activities?

• A. OMB Circular A-11
• B. OMB Circular A-76
• C. OMB Circular A-123
• D. OMB Circular A-136

Answer: (B)

Determining whether a commercial activity should be performed in-house or by a contractor is governed by a circular that lays out the public-private competition framework. This circular requires agencies to conduct an objective cost comparison and an unbiased evaluation to determine the most efficient way to deliver the service, aiming for the most efficient organization and best value for the government. The other circulars address budgeting, internal controls, and financial reporting requirements, not the decision process for performing commercial activities. That focused competition framework is why this circular is the right one to govern the performance of commercial activities.

Determining whether a commercial activity should be performed in-house or by a contractor is governed by a circular that lays out the public-private competition framework. This circular requires agencies to conduct an objective cost comparison and an unbiased evaluation to determine the most efficient way to deliver the service, aiming for the most efficient organization and best value for the government. The other circulars address budgeting, internal controls, and financial reporting requirements, not the decision process for performing commercial activities. That focused competition framework is why this circular is the right one to govern the performance of commercial activities.