Cover Memo to OMB

Mr. Joshua Gotbaum
Acting Deputy Director for Management
Office of Management and Budget
Washington, D.C.  20503

Dear Mr. Gotbaum:

I am pleased to submit the U. S.  Patent and Trademark Office (USPTO)  “Annual Report on Management of Commercial Activities” (Enclosure 1) and “Commercial Activity Inventory” (Enclosure 2) for fiscal year 2000 as required by the Federal Activities Inventory Reform (FAIR) Act of 1998 and Office of Management and Budget (OMB Circular A-76, “Performance of Commercial Activities.”   The USPTO is committed to the objectives of the FAIR Act and the OMB Circular, i.e., increasing cost efficiency by maximizing opportunities for private sector firms to compete with Federal entities to provide commercial services to the Federal government. 

Service contracts in particular have presented an excellent opportunity to expand outsourcing.  During the period 1997 through 1999, spending for service contracts has increased by approximately 44 percent.  In addition, contractual services average over one fourth of total USPTO personal services, both federal and contractor.  Therefore, competitive free market forces have been brought into play to ensure that required services are obtained at the lowest cost and greatest value to the Federal Government.

The USPTO’s inventory identifies commercial core (Reason Code A) and commercial competitive (Reason Code B) activities representing approximately 12 percent and 22 percent, respectively, of our total FTE of 6197.  Total FTE on-board was calculated using the April 22, 2000 payroll report for the USPTO.

We look forward to receiving feedback from OMB on our inventory.   Please direct any questions that may arise to Frances M. Michalkewicz, Acting Deputy Chief Financial Officer and Comptroller, at (703) 305-8175.  Enclosure 3 contains detailed information on whom to contact regarding the challenge and appeals process we have established.

Sincerely, 

Clarence C. Crawford

Enclosures