U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410-3000

OFFICE OF THE ASSISTANT SECRETARY

FOR ADMINISTRATION

JAN - 9 2003

Ms. Carolyn Federoff, President

AFGE Council of HUD Locals, 222

P.O. Box 5961

Boston, MA 021114

Dear Ms. Federoff:

Thank you for your November 27, 2002 letter to Janice Blake-Green, Office of the Chief Financial Officer, challenging the classification of Function Code L200, Grants Monitoring and Support, as a commercial function. There were six FTEs classified as L200s in the 2002 FAIR Act Inventory submitted by the Office of Administration, so we were asked to respond to you directly.

The Office of Federal Procurement Policy (OFPP) Policy Letter 92-1, "Inherently Governmental Functions" dated September 23, 1992, 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. Governmental functions normally fall into two categories: (1) the act of governing, i.e., the discretionary exercise of Government authority, and (2) monetary transactions and entitlements."

The Office of Administration classified each position in accordance with the work activities performed in the position. The functions performed in the Office of Departmental Grants Management and Oversight (ODGMO) are very important functions; however, they are not inherently governmental functions. The mission of this office is to assist the grantees in the Department to develop a Department-wide perspective on grants management and improve management efficiencies by streamlining procedures. The performance of these duties does not require either the "exercise of discretion in applying Government authority or the making of value judgments in making decisions for the Government" as stated in the definition in the OFPP policy letter. Therefore, the six L200 function codes in ODGMO should not be classified as inherently governmental.

In accordance with the FAIR Act provisions, 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 7^th Street, SW; Room 2214

Washington, DC 20410

Attn: Janice W. Blake-Green

Sincerely,

Vickers B. Meadows
Assistant Secretary for Administration

cc: Janice Blake-Green