[Federal Register Volume 63, Number 9 (Wednesday, January 14, 1998)]
[Notices]
[Pages 2288-2290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-818]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF MANAGEMENT AND BUDGET
Proposed Revision of OMB Circular A-97
AGENCY: Office of Management and Budget, Executive Office of the
President.
ACTION: Proposed revision of OMB Circular A-97.
-----------------------------------------------------------------------
SUMMARY: The Office of Management and Budget requests agency and public
comments on a proposed revision of OMB Circular No. A-97, ``Rules and
Regulations Permitting Federal Agencies to Provide Specialized or
Technical Services to State and Local Units of Government, Under Title
III of the Intergovernmental Cooperation Act of 1968.'' The proposed
revision establishes and updates Circular A-97 requirements with regard
to the provision or receipt of commercial support services to or from
Federal agencies and State and local governments. Circular A-97 was
issued on April 29, 1969, and was last revised on March 27, 1981.
DATES: Agency and public comments are due to the Office of Management
and Budget (OMB) not later than March 16, 1998.
ADDRESSES: Written comments should be sent to the Budget Analysis and
Systems Division, NEOB Room 6002, Office of Management and Budget, 725
17th Street, N.W., Washington, D.C. 20503. FAX terminal comments may be
sent to (202) 395-7230.
AVAILABILITY: Copies of Circular A-97 may be obtained by contacting The
Executive Office of the President, Office of Administration,
Publications Office, Washington, D.C. 20503, at (202) 395-7332.
FOR FURTHER INFORMATION CONTACT: The Budget Analysis and Systems
Division, NEOB Room 6002, Office of Management and Budget, 725 17th
Street, N.W., Washington, D.C. 20503, Telephone Number: (202) 395-6104,
FAX Number (202) 395-7230.
Background: Circular A-97 has become an integral part of the Federal
privatization and outsourcing discussion. Federal support to meet State
and local workload requirements has been suggested for a wide range of
commercial services, including payroll services, background
investigations services, leasing management, fleet management, geodetic
and mapping services, prison requirements and health care services.
Economies of scale, similarities of purpose and approach, and the
possibility of a partnership to meet common data requirements suggest
there may be opportunities for Federal or State and local taxpayer
savings. On the other hand, special care must be taken to ensure that
the Federal Government does not, unnecessarily, become a reimbursable
competitor with or otherwise displace private sector, State or local
employees. To address these concerns, OMB has prepared a revised and
updated Circular A-97. OMB requests comments on this revision.
Franklin D. Raines,
Director.
To the Heads of Executive Departments and Establishments
Subject: Rules and regulations permitting Federal agencies to provide
specialized or technical services to State and local units of
government under Title III of the Intergovernmental Cooperation Act of
1968
1. Purpose
This Circular promulgates the rules and regulations that the
Director of the Office of Management and Budget (OMB) is authorized to
issue pursuant to Section 302 of the Intergovernmental Cooperation Act
of 1968 (Pub. L. 90-577; 82 Stat. 1102). It also provides for the
coordination of the action of Federal departments and agencies
(hereinafter referred to as ``Federal agencies'') in exercising the
authority contained in Title III of said Act as directed by the
President's Memorandum of November 8, 1968 (33 FR 16487).
2. Background
a. Title III of the Intergovernmental Cooperation Act of 1968 is
intended to:
1. Encourage intergovernmental cooperation in the conduct of
specialized or technical services and provision of facilities essential
to the administration of State or local governmental activities.
2. Enable State and local governments to avoid unnecessary
duplication of special service functions.
3. Authorize Federal agencies that do not have such authority to
provide reimbursable specialized and technical services to State and
local governments.
b. Title III of the Act authorizes the head of any Federal agency,
upon a written request from a State or political subdivision thereof,
to provide specialized or technical services, upon payment to the
Federal agency by the unit of government making the request, of
salaries and all other identifiable direct and indirect costs of
performing such services. These costs shall be established in
accordance with all applicable statements of Federal financial
accounting standards.
c. Title III of the Act requires that:
1. Any services provided pursuant to Title III shall include only
those that the Director of the Office of Management and Budget through
rules and regulations determines Federal agencies have special or
unique competence to provide.
2. The Director's rules and regulations shall be consistent with,
and in furtherance of, the Government's policy of relying on the
private enterprise system to provide those services that are reasonably
and expeditiously available through ordinary business channels.
3. All moneys received by any Federal agency in payment of
furnishing specialized and technical services under
[[Page 2289]]
Title III of the Act shall be deposited to the credit of the principal
appropriation, franchise or working capital fund from which the cost of
providing such services has been paid or is to be charged.
4. The head of any Federal agency shall furnish annually to the
Director a summary report on the scope of the services provided under
Title III.
3. Reservation of Existing Authority
The authority contained in Title III of the Act and this Circular
is in addition to, and does not supersede, any existing and specific
authority now possessed by any Federal agency with respect to
furnishing services, whether on a reimbursable or non-reimbursable
basis, to State and local units of government. The requirements and
conditions contained in this Circular shall not apply to services
specifically provided in accordance with existing statutory
authorities.
4. Definitions
For purposes of this Circular: a. The term State means any of the
several States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United
States, or any agency or instrumentality of a State, but does not
include the governments of the political subdivisions of a State.
b. The terms political subdivision or local government mean a local
unit of government, including specifically a county, municipality,
city, town, township, or a school or other special district created by
or pursuant to State law, or combinations thereof.
c. Specialized or technical services means statistical and other
studies and compilations, development projects, technical tests and
evaluations, surveys, reports, documents, or any other similar service
functions that a Federal agency is uniquely equipped and authorized by
law to perform. Specialized or technical services do not include common
administrative support services.
5. Policy
Federal agencies will cooperate to the maximum extent possible with
State and local units of government to provide the specialized or
technical services as may be authorized. Such services shall generally
supplement, not supplant existing services, and Federal agencies should
not provide services with full reimbursement under this Circular that
have heretofore been furnished for less than full reimbursement under
other authorities, unless specifically requested to do so by the
Director of OMB.
6. Types of Services That May Be Provided
a. It is hereby determined that Federal agencies have the special
competence to provide, and may provide, the following specialized or
technical services and facilities related thereto, pursuant to Title
III of the Intergovernmental Cooperation Act of 1968:
1. Any existing statistical or other studies and compilations,
where the data gathering is conducted as a joint effort to meet the
ongoing requirements of both a Federal and a State or local government
requirement. This authority shall not extend to State or local data
requests to conduct Federal surveys or other compilations in advance of
Federal schedules for collecting the same data or compilations, unless
specifically approved by OMB.
2. Preparation of unique statistical and other studies and
compilations, tests and evaluations, surveys, reports, and documents,
and assistance in the conduct of such activities and in the preparation
of such materials, provided they are of a type that the Federal agency
is authorized by law to conduct or prepare for itself.
3. Highly specialized training of the type that the Federal agency
is authorized by law to conduct for Federal personnel involved in
inherently governmental activities or which is similar to such
training.
4. Technical aid in the preparation of proposals for development
and other projects for which the Federal agency provides grants-in-aid
or other assistance, provided such aid primarily strengthens the
ability of the recipient in developing its own capacity to prepare
proposals.
b. Any of the above specialized or technical services provided to
the States and their political subdivisions by existing statutory
authorities may also be provided under Title III of the Act and the
terms of this Circular.
c. If a Federal agency receives a request for specialized or
technical services that are not covered in subparagraph ``a.'' above,
and that it believes is consistent with the Act and that it has a
special competence to provide, it should forward the request to the
Director for approval. Similarly, if there is doubt as to whether the
service requested is covered by subparagraph ``a.,'' the request should
be forwarded to the Director for consideration.
7. Conditions Under Which Services May Be Provided
The specialized or technical services provided under Title III of
the Act and this Circular may be provided, only under the following
conditions:
a. Such services will be provided only to the States, political
subdivisions thereof, and combinations or associations of such
governments or their agencies and instrumentalities.
b. Such services will be provided only upon the written request of
a State or a political subdivision thereof. Requests will normally be
made by the chief executives of such entities and will be addressed to
the head of the agency involved.
c. Such services will not be provided unless the agency providing
the services is providing similar services for its own use and, if
commercial in nature, are being provided in accordance with a cost
comparison conducted under the policies set forth in the Office of
Management and Budget's Circular No. A-76, ``Performance of Commercial
Activities,'' (Revised August 3, 1983) and its March 1996 Revised
Supplemental Handbook. In addition, in accordance with the policies set
forth in Circular No. A-76, the requesting entity must certify that
such services cannot be procured reasonably and expeditiously by it
through ordinary business channels.
d. Such services will not be provided if they require any additions
of staff or if they involve outlays for additional equipment or other
facilities solely for the purpose of providing such services.
e. Such services will be provided only upon payment or provision
for reimbursement to the Federal agency involved, by the unit of
government making the request, of salaries and all other identifiable
direct and indirect costs of performing such services to the Federal
taxpayer. For cost determination purposes, Federal agencies will be
guided by the policies set forth in the Statement of Federal Financial
Accounting Standards No. 4, ``Managerial Cost Accounting Concepts and
Standards,'' Circular A-76, as revised, and Circular No. A-25, ``User
Charges'' (July 8, 1993), or subsequent guidance.
f. Any payments or reimbursements received by Federal agencies for
the costs of such services will be deposited to the credit of the
principal appropriation, franchise, working capital or other account
from which the costs of providing the services have been paid or are to
be charged.
g. In the event a request for a service is denied, the Federal
agency shall furnish the entity making the request with a statement
indicating the reasons for the denial.
8. Effective date. This revised Circular is effective immediately.
9. Inquiries. Inquiries regarding this Circular may be addressed to
the Budget
[[Page 2290]]
Analysis Branch, Budget Analysis and Systems Division, Office of
Management and Budget, 725 17th Street, N.W., Washington, DC 20503;
telephone: (202) 395-6104 or FAX (202) 395-7230.
Franklin D. Raines,
Director.
[FR Doc. 98-818 Filed 1-13-98; 8:45 am]
BILLING CODE 3110-01-P
