The Office of Federal Procurement Policy

Today more than ever, the government must ensure that it spends money wisely and eliminates waste and abuse of taxpayer dollars. With approximately one out of every ten dollars of Federal government spending going to contractors, it is imperative that contract actions result in the best value for the taxpayer.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget plays a central role in shaping the policies and practices federal agencies use to acquire the goods and services they need to carry out their responsibilities. OFPP was established by Congress in 1974 to provide overall direction for government-wide procurement policies, regulations and procedures and to promote economy, efficiency, and effectiveness in acquisition processes. OFPP is headed by an Administrator who is appointed by the President and confirmed by the Senate.

Policy Information

Resources

Office of Federal Procurement Policy Guides

• Contracting Guidance to Support Modular Development (June 14, 2012) (26 pages, 965 KB)
• Emergency Acquisitions Guide (January 14, 2011) (25 pages, 198 KB)
• Update to FAC Manager’s Guide to Competitive Sourcing: 2nd Edition (February 20, 2004) (28 pages, 229 KB)
  • Managers’ Guide to Competitive Sourcing (October 2, 2003) (24 pages, 151 KB)

  
  Office of Federal Procurement Policy Memoranda

  • Strengthening Domestic Sourcing for Critical Items (March 13, 2024)
    (6 pages, 175 KB)
  • Increasing Small Business Participation on Multiple-Award Contracts (January 25, 2024) (7 Pages, 182 KB)
  • Reciprocity Memorandum of Understanding between the Federal Acquisition Certification in Contracting (Professional) and the Department of Defense Contracting Professional Certification (October 19, 2023) (6 Pages, 228 KB)
  • Federal Acquisition Certification in Contracting (FAC-C) Modernization (January 19, 2023) (16 Pages, 1 MB)
  • Strategies for Meeting and Exceeding the Small Disadvantaged Business Goal for Fiscal Year 2022Digitally Signed Non 508 (June 29, 2022) (5 Pages, 152 KB)
  • FAR Council Memo on Executive Order 14005 MIA Deviation (November 15, 2021) (8 Pages, 396 KB)
  • Improving the Transparency of Made in America Waivers (October 26, 2021) (6 Pages, 243 KB)
  • FAR Council Guidance on Agency Issuance of Deviations to Implement Executive Order 14042 (September 30, 2021) (5 Pages, 433 KB)
    Note: The FAR Council has rescinded this guidance effective May 12, 2023.
  • Reducing Procurement Administrative Lead Time Using Modern Business Practices (January 15, 2020) (12 pages, 452 KB)
  • Limiting Use of Educational Requirements in Federal Service Contracts
  • Increasing the Participation of Americans with Disabilities in Federal Contracting
  • “Myth-Busting #4” Strengthening Engagement with Industry Partners through Innovative Business Practices (May 2, 2019) (16 pages, 5,388 KB)
  • Establishment of Federal Acquisition Certification in Contracting Core-Plus Specialization in Digital Services (FAC-C-DS) (May 18, 2018) (4 pages, 203 KB)
  • “Service Contract Inventories (January 17, 2017)” (January 18, 2017) (5 pages, 1.66 MB)
  • ”Myth-Busting 3”: Further Improving Industry Communication with Effective Debriefings (January 5, 2017) (9 pages, 153.04 KB)
  • M-16-14, Category Management Policy 16-2: Providing Comprehensive Identity Protection Services, Identity Monitoring, and Data Breach Response (July 1, 2016) (3 pages, 1745 KB)
  • M-16-12, Category Management Policy 16-1: Improving the Acquisition and Management of Common Information Technology: Software Licensing (June 2, 2016) (10 pages, 13724 KB)
  • Acquisition Innovation Labs & Pilot for Digital Acquisition Innovation Lab (March 9, 2016) (14 pages, 431KB)
  • Reducing the Burden of Certifying Earned Value Management Systems (October 23, 2015) (4 pages, 909 KB)
    • Agreement between NASA and the FAA to Recognize EVMS Certifications
    • ​Forecast of Contract Support for IT Program Activities for Fiscal Year 2016 through Fiscal Year 2017 (1 page, 38 KB)
    • Blog: Greater Accountability and Faster Delivery Through Modular Contracting (3 pages, 266 KB)
    • Contracting Guidance to Support Modular Development (26 pages, 965 KB)
    • Blank spreadsheet (Excel)
    • Example of completed spreadsheet (Excel)
    • Agency Report for Fiscal Year 2008 (Word, 150 KB)
    • FY 2005 Competitive Sourcing Worksheets (Excel)
    • Congressional Reporting Worksheet (Excel)

    
    Office of Federal Procurement Policy Policy Letters

    • Policy Letter 11-01: Performance of Inherently Governmental and Critical Functions (March 26, 2019)
    • Federal Register Notice (2 pages, 71 KB)

    
    Office of Federal Procurement Policy Reports

    • Acquisition Innovation & Small Business Participation in Federal Procurement Report to Congress (May 6, 2024) (74 pages, 2 MB)
      • Acquisition Innovation Fact Sheet (May 6, 2024) (2 pages, 194 KB)
      • Enclosure 2 (5 pages, 1.03 mb)
      • President of the Senate (3 pages, 34 KB)
      • Speaker of the House (3 pages, 34 KB)
      • Competitive Sourcing Update (1 page, 24 KB)
      • Competitive Sourcing Achievements (1 page, 21 KB)
      • FY 2005 Competitive Sourcing Worksheets (Excel)

      Government-wide Acquisition Legislative Proposals

      • Letter transmitting the FY 2020 Proposals to Streamline and Improve the Agility and Efficiency of Federal Acquisition Processes (April 30, 2019) (44 pages, 642 KB)

      Office of Federal Procurement Policy Other Policy

      • Readout of White House Roundtable on the Responsible Acquisition of Artificial Intelligence
      • FACT SHEET: Procurement Co-Pilot
      • FACT SHEET OMB Circular A-137 Strategic Management of Acquisition Data and Information
      • Frequently Asked Questions to Accompany OMB Memorandum M-23-11, Creating a More Diverse and Resilient Federal Marketplace through Increased Participation of New and Recent Entrants
      • Dan Gordon’s Testimony before the House Committee on Oversight and Government Reform
      • Testimony on the Federal Acquisition Workforce
      • Testimony on Improving Federal Acquisition
      • Testimony on Interagency and Agency-wide Contracting Vehicles
      • Alternative Dispute Resolution Awards in Acquisition (February 11, 2008) (4 pages, 50 KB)
      • Status of Buy American Reports for FYs 2005 and 2006 (July 20, 2007) (1 page, 46 KB)
      • 2005 Alternative Dispute Resolution Awards in Acquisition (November 7, 2005) (5 pages, 57 KB)
      • Buy American Reporting Requirement (September 13, 2005) (1 page, 31 KB)
      • OFPP Pamphlet No. 7, Use of Irrevocable Letters of Credit (December 1991) (30 pages, 1,465 KB)

      Cost Accounting Standards Board

      The Cost Accounting Standards Board (CAS Board) has the exclusive authority to make, promulgate, and amend standards and interpretations designed to achieve uniformity and consistency in the cost accounting practices governing the measurement, assignment, and allocation of costs to contracts with the United States Government. The CAS Board is an independent statutorily-established Board (41 U.S.C. 1501 et seq.) consisting of five members: the Administrator for Federal Procurement Policy, who serves as the chairman, and four members with experience in Government contract cost accounting, two from the Federal government (DOD and GSA), one from industry, and one from the accounting profession.

      The Board’s regulations are codified at 48 CFR, Chapter 99. The standards are mandatory for use by all executive agencies and by contractors and subcontractors in estimating, accumulating, and reporting costs in connection with pricing and administration of, and settlement of disputes concerning, all covered negotiated prime contract and subcontract procurements with the United States Government. Covered contracts and subcontracts are those in excess of $750,000, provided that, at the time of award, the contractor or subcontractor is performing any CAS-covered contracts or subcontracts valued at $7.5 million or greater. As a result of changes made by section 811 the National Defense Authorization Act for FY 2018, the $750,000 threshold will be raised to $2 million for contracts awarded after June 30, 2018.

      • CAS Board Members
      • CAS Board Meetings
        • February 13, 2018 Meeting Agenda and Minutes
        • March 14, 2018 Meeting Agenda and Minutes
        • April 12, 2018 Meeting Agenda and Minutes
        • May 18, 2018 Meeting Agenda and Minutes
        • CAS Disclosure Forms
          • Cost Accounting Standards Board Disclosure Statement-1 (42 pages, 2 MB)
          • Cost Accounting Standards Board Disclosure Statement-2 for Educational Institutions (24 pages, 1 MB)
          • Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Compensated Personal Absence and Depreciation of Tangible Capital Assets (CASB 2021-02)
            • Advanced Notice of Proposed Rule Making
            • 85 FR 70572 Notice re: Availability of Advanced Notice of Proposed Rulemaking:Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Operating Revenue and Lease Accounting
            • Advanced Notice of Proposed Rulemaking: Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Operating Revenue and Lease Accounting
            • Notice of Proposed Rule Making
            • 85 FR 58399 Notice re Availability of Staff Discussion Paper: Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Capitalization of Tangible Assets and Accounting for Acquisition Costs of Material
            • Staff Discussion Paper (SDP): Conformance of CAS to GAAP for Capitalization of Tangible Assets and Accounting for Acquisition Costs of Material
            • 78 FR 40665, Public Meetings for Fact-Finding (July 8, 2013)
              • Fact-Finding Public Comments
              • 85 FR 15817 CAS-GAAP Guiding Principles (March 19, 2020)
                • Supplement to FRN CAS-GAAP Guiding Principles
                • Public Comments on SDP: Conformance of CAS to GAAP
                  • -00c commenter list 190513
                  • -01 bowee, ben indiv 190417 0810
                  • -02 asset ldrship ntwk 190512 2232 CASB Comments CAS 408 and 409 ALN RCC 20190512
                  • -03 FEI 190513 0924 FEI CGB Responce to CAS-GAP SDP 051019 final
                  • -04 aia 190513 1123 AIA Comments on CAS -GAAP Final 5-13-19
                  • -05 ndia 190531 1341 CAS Board 2019-01 Detailed Comment
                  • -06 J&J 190605 1406 JJ Comment Letter RE CASB 2019 01
                  • -07 aba 190607 1901 ABA PCLS Comments re CASB Conformance CAS and GAAP
                  • 83 FR 33146, Final Rule (July 17, 2018)
                  • 83 FR 8634, Final Rule (February 28, 2018)
                  • CASB 2021-01 IDVS Notice (June 18, 2024)

                  
                  Contractor Employee Compensation Cap

                  • Contractor Employee Compensation Cap Overview
                  • Contractor Compensation Cap for Contracts Awarded Before June 24, 2014
                  • Contractor Employee Compensation Cap for Contracts Awarded on or after June 24, 2014

                  
                  Federal Activities Inventory Reform (FAIR) Act

                  The FAIR Act (31 U.S.C. 501 note) and Office of Management and Budget (OMB) Circular A-76 require executive agencies, with certain exceptions, to prepare inventories of the commercial and inherently governmental activities performed by their federal employees. Development of workforce inventories can help agencies gain a better understanding of how Federal employee labor is being used to carry out the agency’s mission and improve human capital resource distribution. Inventories are available on agency websites or through the following links.

                  • Broadcasting Board of Governors
                  • Commodity Futures Trading Commission
                  • Consumer Financial Protection Bureau
                  • Consumer Product Safety Commission
                  • Court Services and Offender Supervision Agency
                  • Defense Nuclear Facilities Safety Board
                  • Department of Agriculture
                  • Department of Commerce
                  • Department of Defense
                  • Department of Education
                  • Department of Energy
                  • Department of Health and Human Services
                  • Department of Homeland Security
                  • Department of Housing and Urban Development
                  • Department of Justice
                  • Department of Labor
                  • Department of State
                  • Department of the Interior
                  • Department of the Treasury
                  • Department of Transportation
                  • Department of Veterans Affairs
                  • Environmental Protection Agency
                  • Equal Employment Opportunity Commission
                  • Farm Credit Administration
                  • Federal Communications Commission
                  • Federal Election Commission
                  • Federal Energy Regulatory Commission
                  • Federal Housing Finance Agency
                  • Federal Labor Relations Authority
                  • Federal Maritime Commission
                  • Federal Mediation & Conciliation Service
                  • Federal Retirement Thrift Investment Board
                  • Federal Trade Commission
                  • General Services Administration
                  • International Trade Commission
                  • Merit Systems Protection Board
                  • National Aeronautics and Space Administration
                  • National Archives and Records Administration
                  • National Endowment for the Arts
                  • National Endowment for the Humanities
                  • National Labor Relations Board
                  • National Science Foundation
                  • National Transportation Safety Board
                  • Nuclear Regulatory Commission
                  • Office of Personnel Management
                  • Office of Special Counsel
                  • Peace Corps
                  • Railroad Retirement Board
                  • Securities and Exchange Commission
                  • Selective Service System
                  • Small Business Administration
                  • Social Security Administration
                  • U.S. Agency for Global Media
                  • U.S. Agency for International Development
                  • US Holocaust Memorial Museum
                  • US Trade Representative

                  Service Contract Inventory (SCI)

                  Section 743 of Division C of the FY 2010 Consolidated Appropriations Act, Pub. L. 111-117, requires certain executive agencies to report annually to the Office of Management and Budget (OMB) on their service contracts. Section 743 applies to executive agencies, other than the Department of Defense (DoD), covered by the Federal Activities Inventory Reform (FAIR) Act, Pub. L. 105-270. By statute, DoD has a separate process. Reports are available on agency websites or through the following links.

                  • Commodity Futures Trading Commission
                  • Consumer Financial Protection Bureau
                  • Consumer Product Safety Commission
                  • Court Services and Offender Supervision Agency
                  • Defense Nuclear Facilities Safety Board
                  • Department of Agriculture
                  • Department of Commerce
                  • Department of Defense
                  • Department of Education
                  • Department of Energy
                  • Department of Health and Human Services
                  • Department of Homeland Security
                  • Department of Housing and Urban Development
                  • Department of Justice
                  • Department of Labor
                  • Department of State
                  • Department of the Interior
                  • Department of the Treasury
                  • Department of Transportation
                  • Department of Veterans Affairs
                  • Environmental Protection Agency
                  • Equal Employment Opportunity Commission
                  • Farm Credit Administration
                  • Federal Communications Commission
                  • Federal Election Commission
                  • Federal Energy Regulatory Commission
                  • Federal Housing Finance Agency
                  • Federal Labor Relations Authority
                  • Federal Maritime Commission
                  • Federal Mediation & Conciliation Service
                  • Federal Retirement Thrift Investment Board
                  • Federal Trade Commission
                  • General Services Administration
                  • International Trade Commission
                  • Merit Systems Protection Board
                  • National Aeronautics and Space Administration
                  • National Archives and Records Administration
                  • National Endowment for the Arts
                  • National Endowment for the Humanities
                  • National Labor Relations Board
                  • National Science Foundation
                  • National Transportation Safety Board
                  • Nuclear Regulatory Commission
                  • Office of Special Counsel
                  • Peace Corps
                  • Railroad Retirement Board
                  • Securities and Exchange Commission
                  • Selective Service System
                  • Small Business Administration
                  • Social Security Administration
                  • U.S. Agency for Global Media
                  • U.S. Agency for International Development
                  • US Holocaust Memorial Museum
                  • US Trade Representative