Memo to OMB
Mr. Joshua Gotbaum
Acting Deputy Director for Management
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Gotbaum:
I am pleased to submit the
U. S. Patent and Trademark Office (USPTO) “Annual Report on Management of
Commercial Activities” (Enclosure 1) and “Commercial Activity Inventory” (Enclosure
2) for fiscal year 2000 as required by the Federal Activities Inventory Reform
(FAIR) Act of 1998 and Office of Management and Budget (OMB Circular A-76, “Performance
of Commercial Activities.” The USPTO is committed to the objectives of the
FAIR Act and the OMB Circular, i.e., increasing cost efficiency by maximizing
opportunities for private sector firms to compete with Federal entities to provide
commercial services to the Federal government.
Service contracts in particular
have presented an excellent opportunity to expand outsourcing. During the period
1997 through 1999, spending for service contracts has increased by approximately
44 percent. In addition, contractual services average over one fourth of total
USPTO personal services, both federal and contractor. Therefore, competitive
free market forces have been brought into play to ensure that required services
are obtained at the lowest cost and greatest value to the Federal Government.
The USPTO’s inventory identifies
commercial core (Reason Code A) and commercial competitive (Reason Code B) activities
representing approximately 12 percent and 22 percent, respectively, of our total
FTE of 6197. Total FTE on-board was calculated using the April 22, 2000 payroll
report for the USPTO.
We look forward to receiving
feedback from OMB on our inventory. Please direct any questions that may arise
to Frances M. Michalkewicz, Acting Deputy Chief Financial Officer and Comptroller,
at (703) 305-8175. Enclosure 3 contains detailed information on whom to contact
regarding the challenge and appeals process we have established.
Clarence C. Crawford