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Inherently governmental functions: at a tipping point? Should the government rethink its long-standing policy on contracting out work?

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More than 15 years ago, the U.S. Office of Management and Budget (OMB) Office of Federal Procurement Policy issued Policy Letter 92-1, Subject: Inherently Governmental Functions. This 1992 document offered the first government-wide guidance to help executive branch officers and employees avoid making "an unacceptable transfer of official responsibility to government contractors." Implemented in Subpart 7.5 of the Federal Acquisition Regulation, the policy has remained relatively unchanged since its issuance. Even the comptroller general's 2003 Commercial Activities Panel proposed no significant adjustments to this guidance as the panel addressed the ...

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