Fairnet
Home About Fairnet Query Fairnet Frequently Asked Questions Inquiries & Challenges
 
Defense Human Resources Activity (DHRA)
 
PROCEDURES FOR CHALLENGES UNDER THE FEDERAL ACTIVITIES INVENTORY REFORM ACT OF 1998

A. Challenges

To be considered valid, a challenge must meet all of the requirements in paragraphs 1-10 below. Challenges that do not meet all of these requirements will be rejected. Challengers are encouraged to read and become familiar with the Federal Activities Inventory Reform Act of 1998 (FAIR) and the Office of Management and Budget (OMB) Circular A-76 (Revised), "Performance of Commercial Activities."

1. The challenge must be in writing. Telephone calls, verbal inquiries, voice mail, and electronic mail are not acceptable and will be rejected.

2. The challenge must be sent by United States mail, express delivery or similar service, or facsimile transmission to the office listed under Component Address to Receive Challenges. (To assist in processing, challengers may mark "FAIR Challenge" on the envelope.) The challenge may be delivered in person, if the person making the delivery is authorized access to the office listed under Component Address to Receive Challenges. Challenges sent or delivered to other offices or locations will be rejected.

3. The challenge must be submitted to the office listed under Component Address to Receive Challenges within 30 working days after the date that the OMB notice, stating that the Department of Defense inventory is available to the public, appears in the Federal Register. This date is the date that the inventory actually becomes available to interested parties through the Department of Defense FAIRNET site on the World Wide Web and in reading rooms in the Washington, D.C. area.

4. The person or organization making the challenge must be an interested party. Interested parties are defined in the FAIR Act of 1998 as:

(a) A private source that-

(i) is an actual or prospective offeror for a contract, or other form of agreement, to perform the activity; and

(ii) has a direct economic interest in performing the activity that would be adversely affected by a determination not to procure the performance of the activity from a private sector source.

(b) A representative of any business or professional association that includes within its membership private sector sources referred to in paragraph (a).

(c) An officer or employee of an organization within an executive agency that is an actual or prospective offeror to perform that activity.

(d) The head of any labor organization referred to in section 7103(a)(4) of title 5, United States Code, that includes within its membership officers or employees of an organization referred to in paragraph (c)."

5. The challenge must explain why the challenger qualifies as an "interested party" in the challenge letter.

6. Members of the Uniformed Armed Forces and their Reserve and National Guard Components, do not qualify as interested parties.

7. The challenge must identify the activity being challenged as specifically as possible; that is, it must give a sufficient description of the activity being challenged so DHRA can identify it. For example, the challenger may reference the inventory entry for challenges to activities included on the inventory, or provide activity, function, organization, location, state, or other identifying information for challenges to activities that were excluded from the inventory.

8. The challenge must state whether the challenger is challenging: (1) the decision to include the activity on the Department of Defense FAIR Act inventory as a commercial activity, (2) the decision to exclude the activity from the Department of Defense FAIR Act inventory as an "inherently governmental function" or, (3) a decision regarding an OMB reason code designation. Only these three decisions are subject to challenge. Attempts to challenge other items on the Department of Defense inventory or other decisions related to the inventory will be rejected.

9. The challenge must state the reason or reasons for the challenge; that is, it must explain the reasons why the challenger believes that DHRA should change its decision: (1) to include the activity on the Department of Defense inventory list as a commercial activity, (2) to exclude the activity from it as an inherently governmental function, or (3) regarding an OMB reason code designation.

10. The challenge must include the name of the challenger and the address to which the decision on the challenge should be sent.

B. Decisions

1. A decision on a challenge will be made within 28 working days from the date that the office listed under Component Address to Receive Challenges actually receives the challenge.

2. The decision will be in writing and will:

a. Identify the activity and the omission/inclusion or reason code designation being challenged;

b. State whether the challenge is rejected on procedural grounds, or upheld or denied;

c. Explain the rationale for the decision; and

d. Provide an explanation of the challenger's appeal rights, if the challenge is rejected or denied.

3. A decision to reject a challenge will be made by a Responsible Official at DHRA. A decision to uphold or deny a challenge will be made by a Responsible Official at DHRA.

4. Decisions will be transmitted to challengers by United States mail or facsimile transmission.
C. Appeals 1. The specific procedures for submitting an appeal to a decision on a challenge that is rejected or denied will be provided to the challenger in the decision letter.

2. Appeals must be in writing and transmitted by United States mail, express mail delivery or other similar service, or facsimile transmission, or may be delivered in person only if the person making the delivery is authorized access to the Office Designated to Receive Appeals, to the address of the office identified in the challenge decision letter as the Office Designated to Receive Appeals. (To assist in processing, appellants may mark "FAIR Appeal" on the envelope.) Appeals must be submitted to the designated office within 10 working days after the challenger received the decision denying or rejecting the challenge. Decisions on appeals will be in writing and will state the determination and the rationale for it.

D. Definitions

1. The definition of the term "interested party" is found in section 3(b) of the Federal Activities Inventory Reform Act of 1998. It is also quoted in paragraph A.4. above.

2. The term "inherently governmental function" is defined in section 5(2) of the Federal Activities Inventory Reform Act of 1998. It is also defined in Attachment A, Section B.1. of the Office of Management and Budget Circular A-76, "Performance of Commercial Activities."

3. The term "commercial activity" is defined in Attachment A, Section B.2. of the OMB Circular A-76, "Performance of Commercial Activities."

4. The term "reason codes for commercial activities" is defined in Attachment A, Section C, Figure A2 of the OMB Circular A-76, "Performance of Commercial Activities."

5. Before submitting a challenge, challengers are encouraged to read the definitions listed above in the FAIR Act of 1998 and the OMB Circular A-76, "Performance of Commercial Activities" to understand the differences between a commercial activity and an inherently governmental function.

 
Back to Challenges and Appeals  
Back to main DoD Component list