U. S. Department of Housing and Urban Development
Washington, D.C. 20410-0100





Ms. Carolyn Federoff


AFGE Council of HUD Locals, 222

P.O. Box 5961

Boston, MA 02114


Subject:            Challenge to the inclusion of the following positions on the Office of the

Chief Financial Officer A-76/FAIR Act Inventory:

C401 Financial Analyst

Dear Ms. Federoff


This is in response to your letter dated November 27, 2002, and your challenge to functions classified as commercial activities on our OMB A-76 2002 FAIR Act inventory. The functions cited above are located in the office of the Chief Financial Officer (CFO), Assistant CFO for Accounting.


As you stated in your letter, the Office of Federal Procurement Policy (OFPP) Policy Letter 92-1, dated September 23, 1992, in part, defines an inherently governmental function as "... a function that is so intimately related to the public interest as to mandate performance by Government employees. These functions include those activities that require either the exercise of discretion in applying government authority or the making of value judgments in making decisions for the Government."


The subject functions are of critical value to the Department's core accounting operations, but they are not inherently governmental. The performance of these functions requires the application of a body of technical knowledge and expertise within the parameters of established governmental policy. Such performance does not constitute applying government authority nor making value judgments for the Government.


In addition, the subject functions were classified as commercial in the Department's OMB A-76 submission for the year 2001. The classification of these functions as commercial is consistent with OMB's guidance concerning the determination of commercial and inherently governmental activities.


The positions at Sequence Number 173 in the inventory, to which you referred in the attachment to your letter, are in the CFO's Financial Policy and Procedures Division, and entail activities of a different nature than those at Sequence Number 166.


In accordance with FAIR Act provisions, please be advised that you have the right to appeal this determination. Appeals should be addressed to:

U.S. Department of Housing and Urban Development
Office of the Chief Financial Officer
451 7th Street SW, Room 2214
Washington, DC 20410
Attn: Janice W. Blake-Green



Margaret E. White
Assistant CFO for Accounting