U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON,
D.C. 20410-8000
OFFICE
OF THE ASSISTANT SECRETARY
FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Ms. Carolyn Federoff
President
Boston, MA 02114
Subject: Challenge to the inclusion of the
following positions on the Assistant Secretary for Housing-Federal Housing
Commissioner A-76/Federal Activities Inventory Reform (FAIR) Act:
D000 Administrative
Support
D606 Asset Appraisal and
Valuation D708 Application Receipt/Processing D709 Mortgage Underwriting
T804 Architect-Engineering
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 Assistant Secretary for Housing - Federal Housing
Commissioner, Deputy Assistant Secretary for Multifamily Housing Programs.
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 multifamily insurance operations but they are not inherently
governmental. The performance oŁ 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 or making value judgments for the Government.
In
addition, with the exception of Function Code C408 (which is not in the
Department's inventory), the subject functions were classified as commercial in
the Department's 2002 OMB A-76 submission. The classification of these
functions as commercial is consistent with OMB's guidance concerning the
determination of commercial and inherently governmental activities.
Finally, you expressed concern that the classification of the subject
functions as commercial activities could result in the release of confidential
business information to contractors. However, OMB procurement policy guidance
(OFPP Policy Letter 92-1, Appendix B, Item 1-1.) specifically states that
"Contractors working in any situation that permits or might permit them to
gain access to confidential business information, and/or any other sensitive
information . . . " does not constitute an inherently governmental
function.
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, S.W., Rm. 2214
Attn: Janice W. Blake-Green
Sincerely,
Michael
F. Hill
Deputy Assistant Secretary Operations