U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410-5000

JAN - 6 3

OFFICE OF THE ASSISTANT SECRETARY

FOR PUBLIC AND INDIAN HOUSING

Ms. Carolyn Federoff, President

AFGE Council of HUD Locals, 222

P.O. Box 5961

Boston, Massachusetts 02114

Subject: Challenge to the inclusion of the following positions on the Assistant Secretary for Public and Indian Housing A-76/FAIR Act Inventory:

C401 Financial Analysis-------------Category B

D000 Administrative Support--------Category B

L200 Grants Monitoring and Support---Category B T804 Architect-Engineering----------Category B

Dear Ms. Federoff:

This is in response to your letter dated November 27, 2002, and your challenge to functions classified as commercial activities on our OMB A-76 2001 FAIR Act inventory. The functions cited above are located in the office of the Assistant Secretary for Public and Indian Housing.

As you stated in your letter, the Office of Federal Procurement Policy (OFPP) Policy Letter 92-1, dated September 23,1992, in part, defines an inherently governmental function as "... a function that is so intimately related to the public interest as to mandate performance by Government employees. These functions include those activities that require either the exercise of discretion in applying government authority or the making of value judgments in making decisions for the Government."

The functions listed above were classified as commercial in accordance to the instructions provided in the OMB Circular No. A-76, as provided by the Chief Financial Office (CFO) in May of 2002. Upon further investigation, which was generated due to the AFGE Council's challenge, we still find that the functions in question do not meet the inherently governmental requirements as defined in OMB Circular No. A-76 (Revised) Transmittal Memorandum No. 20, attachment 2. Consequently, we see no need to modify our Commercial Activities Inventory submission.

In accordance with FAIR Act provisions, please be advised that you have the right to appeal this determination. Appeals should be addressed to:

U.S. Department of Housing and Urban Development Office of the Chief Financial Officer

451 7th Street SW, Room 2214 Washington, DC 20410

Attn: Janice W. Blake-Green

Sincerely,

Michael Liu

Assistant Secretary
Office of Public and Indian Housing