What is the policy of the US Government according to the policy guidance in OMB Circular A-76?

• A. To achieve economy and enhance productivity, to retain governmental functions in-house, and to rely on the commercial sector when appropriate
• B. To privatize all functions
• C. To outsource everything
• D. To centralize procurement

Answer: (A)

OMB Circular A-76 focuses on getting the best value for the government by weighing in-house performance against private-sector competition for commercial activities. The policy is to pursue economy and productivity improvements, keep governmental functions in-house when that is appropriate for control and accountability, and rely on the private sector when it can perform the work more efficiently or cost-effectively. This balanced approach is why the statement that emphasizes achieving economy and productivity, retaining in-house functions where appropriate, and using the commercial sector when suitable is the best fit. It’s not a blanket push to privatize everything or to outsource all tasks, and it’s not about centralizing procurement.