The Federal Activities Inventory Reform (FAIR) Act of 1998 (P.L. 105-270), requires Federal agencies to prepare and submit to the Office of Management and Budget (OMB) inventories of commercial activities performed by Federal employees. The OMB Circular A-76
, Performance of Commercial Activities, further requires agencies to submit inventories of their inherently governmental activities to OMB. Agencies are required to submit their inventories to OMB by June 30.
The annual inventory submission includes all government full-time equivalent (GFTE) authorized positions categorized on the basis of the type of work performed vs. who is performing the work. Agency submissions comprise a list of the inherently governmental and commercial activities that "reasonably equate" to budgeted FTE totals.
The FAIR Act process is a key way to track the number of GFTE currently working at the Department of State (Department) and gain a better understanding of how Federal employee labor is being used to carry out the Departmentís mission. The ongoing guidance emerging from OMB also requires Federal agencies to create a Service Contract Inventory, which will catalog the number of contractor full-time equivalents (CFTE). The Service Contract Inventory together with the FAIR Act Inventory provides a snapshot of the Department's workforce by bureau and function.