FAIR Act Report - VA Reason Codes
Listing of Reason Codes Used in FAIR Act Inventory
The following reason codes were used in the Commercial Activities Inventory. OMB has advised Agencies that they may add additional sub-groupings (A1, A2 for example) within any reason code, as deemed necessary.
| Reason Code | Explanation | FAIR Act Category |
| A | Indicates that the function is performed by Federal employees and is specifically exempt by the agency from the cost comparison requirements of OMB Circular A-76 and OMB Circular A-76 Supplemental Handbook. | Commercial In-House |
| B | Indicates that the activity is performed by Federal employees and is subject to the cost comparison or direct conversion requirements of OMB Circular A-76 and OMB Circular A-76 Supplemental Handbook. | Commercial Competitive |
| C | Indicates that the activity is performed by Federal employees, but is has been specifically made exempt from the provisions of OMB Circular A-76 and OMB Circular A-76 Supplemental Handbook by Congress, Executive Order, or OMB. | Commercial Exempt |
| D | Indicates that the function is currently performed by in-house Federal employees and is in the process of being cost compared or converted directly to contract or interservice support agreement performance. | Commercial Competitive |
| E | Indicates that the function is retained in-house as a result of a cost comparison. | Commercial Competitive |
| F | Indicates the function is currently being performed by Federal employees, but a review is pending force restructuring decisions (i.e., base closure, realignment, consolidation, etc.). | Commercial Competitive |
| G | Indicates that the function is prohibited from conversion to contract because of legislation. | Commercial Exempt |
| H | Waiver issued. | Commercial Competitive |
| I | Indicates the function is being performed in-house as a result of a cost comparison resulting from a decision to convert from contract to in-house performance. | |
Source: OMB Circular A-76, Appendix 2, Commercial Activities Inventory, Section E
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