U.S. Department of Housing and Urban Development

Washington, D.C. 20410-7000



JAN - 9 2003

Ms. Carolyn Federoff, President

AFGE Council of HUD Locals, 222

P.O. Box 5961

Boston, MA 02114

Dear Ms. Federoff

This is in response to your letter to the Office of the Chief Financial Officer in which you challenged the classification of the following function as a commercial activity in the OMB A-76 2001 FAIR Act Inventory for the Office of Community Planning and Development (CPD):

D000 Administrative Support --- Category B

As 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."

Administrative support functions are certainly a significant aspect of CPD's day-­to-day operations. However, as defined by OFPP Policy Letter 92-1, they are not inherently governmental. The performance of these functions requires the application of technical knowledge within the parameters of established agency policy and procedures. Such performance does not constitute applying government authority nor the making of value judgments for the Government. Excluding the performance of time and attendance duties, some elements of these functions are currently performed throughout the Department by contract employees. As such, this function is properly classified as a commercial activity.


In accordance with 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 7th Street, SW, Room 2214

Washington, DC 20410

Attn: Janice W. Blake-Green




William H. Eargle, Jr.

Deputy Assistant Secretary

for Operations