Reason Foundation

Reason Foundation

The Lowdown on the New Federal Competition Circular

Guidelines encourage competitive sourcing

Geoffrey Segal
May 30, 2003

Today the Office of Management and Budget released the long awaited revision of the A-76 circular, the regulations that guide competitive sourcing for the federal government. The new guidelines streamline and rationalize the process, bringing them in-line with the broader evolution of government contracting and existing federal acquisition regulations.

Some of the major changes in the A-76 circular:

While the new guidelines signal a significant improvement over the original A-76 guidelines, OMB unfortunately removed language that would have required Inter-Service Support Agreements (ISSAs) opened to competition.

Ultimately, the revisions encourage department and agency managers to significantly expand their use of competitive sourcing. The new guidelines make competitions easier while also reducing the time it takes to conduct them. The guidelines take effect immediately.

Geoffrey Segal is director of privatization and government reform at Reason Foundation.

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