(1) balance the interests of the parties to a make or buy cost comparison,
(2) provide a level playing field between public and private offerors to a competition, and
(3) encourage competition and choice in the management and performance of commercial activities. It is designed to empower Federal managers to make sound and justifiable business decisions.
This Supplement is divided into two parts (with a table of contents at the beginning of each Part) as follows:
Part I Policy Implementation Sets forth the principles and procedures for implementing OMB Circular A-76. Part II Preparing the Cost Comparison Estimates Provides instructions for calculating the financial advantage to the Government of acquiring a product or service through in-house, contract or interservice support agreement resources. Appendices Definition of Terms Defines terms within the context of OMB Circular A-76. Commercial Activities Inventory Provides information and reporting guidance. Useful Life and Disposal Provides useful expected life and Values disposal values for equipment. Tax Tables Provides Federal tax rate tables for use in A-76 cost comparisons by industry type. OFPP Policy Letter 92-1 Provides guidance and criteria for determining whether activities may be considered inherently governmental and not subject to the requirements of the Circular or this Supplement. Aviation/Motor Vehicle Provides sector-specific alternatives to the cost comparison methodologies in Part II.
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