Which OMB Circular covers Commercial Activities?

• A. A-11
• B. A-109
• C. A-76
• D. A-123

Answer: (C)

OMB Circular A-76 governs how a federal agency decides if a function that could be performed by the private sector should be kept in-house or contracted out. It provides the framework for conducting cost comparisons and the competition process for commercial activities, including how in-house costs are prepared and how private-sector bids are evaluated. The aim is to choose the option that delivers the best value for taxpayers. Other circulars cover budgeting (A-11), internal controls (A-123), or major system acquisitions (A-109), but not the outsourcing framework for commercial activities. So the regulation that covers commercial activities is A-76.