Under the Federal Activities Inventory Reform Act (FAIR), P. L. 105-270, federal agencies are required to identify the activities performed by their employees. By June 30 of each year, agencies must submit to the Office of Management and Budget (OMB) an inventory of all of the activities that an agency performs-inherently governmental activities as well as commercial activities-and the reasons for certain designations. Only federal employees can perform inherently governmental functions, which means that those functions cannot be subject to competition. Determining whether or not a function is inherently governmental is a difficult task. Usually, the amount of discretion used in performing the duties of the position is an important consideration. Agencies must justify their inherently governmental classifications in writing.
OMB reviews the inventory and may request additional justification for certain classifications. Once the inventory is finalized, OMB places a notice in the Federal Register announcing the availability of the agency's inventory on the agency's web site. If an interested party disagrees with the designation of an activity, a challenge may be filed. Interested parties include affected employees, unions, executive steering committees and any other stakeholders.
FAIR Act Inventories
Please direct all FAIR Act inventory inquires to the Director of the Office of Resource and Asset Management at 202-693-4546.