- Agencies are allowed to convert a federal activity if it involves 10 or fewer jobs.
- If a function involves 11 or more jobs, an agency must place all affected federal workers in comparable jobs before conversion.
- Federal activities of any size may be outsourced to contractors who qualify as "preferential procurement sources" under section 8(a) of the 1953 Small Business Act. Preferential procurement sources include Alaska native-owned corporations, Federal Prison Industries, and the workshops administered by the Committee for the Purchase from the Blind and Other Severely Handicapped under the Javits-Wagner-O'Day Act of 1971. In addition, Native American and Native Hawaiian owned-businesses of any size may receive direct conversions under a provision in the 2001 Defense Appropriations Bill.
- Agencies may also apply for a waiver from A-76 cost comparison requirements to directly convert jobs.
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