What does OMB Circular A-76 address?

Prepare for the Society of Defense Financial Management Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Ready yourself for your exam!

OMB Circular A-76 primarily addresses the performance of commercial activities within federal agencies. It establishes guidelines for determining whether these activities should be carried out by federal employees or contracted out to private sector entities. The focus is on ensuring that the government operates efficiently and effectively, utilizing market competition to assess the best value for taxpayers.

The circular sets forth procedures for conducting cost comparisons between government performance and private-sector bids, ultimately aimed at optimizing the use of resources and enhancing efficiency in the federal workforce. By facilitating a structured approach to assessing the viability of outsourcing versus in-house performance, OMB Circular A-76 plays a crucial role in modernizing government operations and improving the quality of services provided to the public.

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