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Questions for Outsourcing Decisions

Public Administration Research

OMB Circular A-76

State Action Doctrine

Does the function require the exercise of sovereign powers (e.g., representing the United States before an intergovernmental body, use of coercive authority to arrest a person)?

Is there a lack of competition for the service?

Will public values be jeopardized if services are outsourced?

Has the function been defined as “inherently governmental” by statute?

Has the function been defined as “inherently governmental” by agency policy or practice?

Is the function such that the contractor’s involvement is so extensive as to preempt government officials’ authority, decision making process, or discretion?

Is the function critical to the agency’s function such that the function is necessary to the agency being able to effectively perform and maintain control of its mission and operations?

Is necessary oversight of the supplier extensive and costly?

Is oversight of the supplier constrained or limited?

Is the service a public function as narrowly defined by State Action Doctrine?

Does the agency have sufficient internal capability to control its mission and operations and to ensure it is cost-effective to contract out?

Table 1.

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Questions for Outsourcing Decisions

Questions for Outsourcing Decisions	Public Administration Research	OMB Circular A-76	State Action Doctrine
Does the function require the exercise of sovereign powers (e.g., representing the United States before an intergovernmental body, use of coercive authority to arrest a person)?	E	E	E
Is there a lack of competition for the service?	E	E	I
Will public values be jeopardized if services are outsourced?	E	I	I
Has the function been defined as “inherently governmental” by statute?	I	E	I
Has the function been defined as “inherently governmental” by agency policy or practice?		E
Is the function such that the contractor’s involvement is so extensive as to preempt government officials’ authority, decision making process, or discretion?	I	E	I
Is the function critical to the agency’s function such that the function is necessary to the agency being able to effectively perform and maintain control of its mission and operations?		E
Is necessary oversight of the supplier extensive and costly?	I	E	I
Is oversight of the supplier constrained or limited?			E
Is the service a public function as narrowly defined by State Action Doctrine?	I	E	E
Does the agency have sufficient internal capability to control its mission and operations and to ensure it is cost-effective to contract out?		E

Questions for Outsourcing Decisions	Public Administration Research	OMB Circular A-76	State Action Doctrine
Does the function require the exercise of sovereign powers (e.g., representing the United States before an intergovernmental body, use of coercive authority to arrest a person)?	E	E	E
Is there a lack of competition for the service?	E	E	I
Will public values be jeopardized if services are outsourced?	E	I	I
Has the function been defined as “inherently governmental” by statute?	I	E	I
Has the function been defined as “inherently governmental” by agency policy or practice?		E
Is the function such that the contractor’s involvement is so extensive as to preempt government officials’ authority, decision making process, or discretion?	I	E	I
Is the function critical to the agency’s function such that the function is necessary to the agency being able to effectively perform and maintain control of its mission and operations?		E
Is necessary oversight of the supplier extensive and costly?	I	E	I
Is oversight of the supplier constrained or limited?			E
Is the service a public function as narrowly defined by State Action Doctrine?	I	E	E
Does the agency have sufficient internal capability to control its mission and operations and to ensure it is cost-effective to contract out?		E

Notes: E = Explicit in source; I = Implicit in source.

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