What percentage does a contractor have to bid to be awarded under OMB Circular A-76?

The correct percentage a contractor must bid to be awarded under OMB Circular A-76 is 10% or more lower than the government's cost estimate. This circular outlines the policy for assessing whether commercial activities should be performed by the government or contracted out to private companies. According to the guidelines, when contracting work through a competition process, a contractor's bid must be at least 10% lower than the government’s estimated cost for the contractor to be considered for the contract award. This additional margin serves as a protective measure to ensure that the government achieves cost savings and incentivizes contractors to offer competitive prices. The 10% threshold plays a critical role in the cost comparison process outlined in A-76. Since the correct answer aligns with these established guidelines, it underscores the importance of competitive bidding in government contracts.