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Clay Johnson III
Deputy Director for Management
Office of Management and Budget
Executive Office of the President
725 17th Street, NW
Washington, D.C., 20503

Dear Mr. Johnson:

In accordance with the Federal Activities Inventory Reform (FAIR) Act (P.L. 105-270), the FY 2004 Commercial Activities Inventory for the National Science Foundation is enclosed. We have followed the guidance from the revised A-76 Circular and from your memo M-04-09 dated April 6, 2004 to prepare this year’s inventory.

NSF has developed an Administration and Management (A&M) strategy as part of its overall strategic planning process that is consistent with the President’s Management Agenda priorities and other external requirements. A key element of NSF’s A&M strategy is a comprehensive, multi-year business analysis, which began in July 2002. The Business Analysis involves the concurrent consideration of human capital and next- generation technology-enabled systems in an analysis framed around the Agency’s core business processes. Interim outcomes of the Business Analysis have begun to guide long-term integrated administration and management investments that promise important mission-focused results. The Business Analysis responds directly to issues raised in the President's Management Agenda, to government-wide issues identified by the General Accounting Office (GAO) and others, and to agency-specific challenges such as the effective management of an increasingly multidisciplinary science and engineering research and education portfolio, and the management and oversight of an increasing number of complex large facility projects.

In the area of Human Capital Management, NSF is developing a strategic approach to workforce planning and deployment that: evaluates mission needs, customer expectations and workload; identifies competencies; develops strategies to obtain, develop and retain skills; and reduces excess organizational layers and redundancies. Clearly, this effort is likely to suggest significant changes to NSF’s organizational structure and staff composition over time. Initial results from the business analysis effort have led to the development of a competency-based “Job Family” framework for evaluating the Foundation’s human capital needs. Following discussions with OMB and OPM, NSF utilized the framework while developing the 2004 FAIR Act Inventory. Initial results from the business analysis effort and the “Job Family” framework have been integrated into NSF’s efforts to develop a competitive sourcing plan or an alternative strategy for implementing the competitive sourcing initiative. The strategy will be informed by additional findings of the business analysis regarding possible structural or functional realignments across the agency.

NSF’s 2004 FAIR Act Inventory continues its use of Reason Code A to identify those commercial activities that are not appropriate for private sector performance pursuant to a written determination. The justification for the use of Reason Code A remains unchanged from previous years. Because interim findings from the business analysis have yielded the framework for evaluating the Foundation’s human capital needs, and initial restructurings have been completed, NSF has discontinued the use of Reason Code E, “The Commercial Activity is pending an agency approved restructuring decision,” this year and has identified a significant number of commercial activities that are suitable for a streamlined or standard competition

Guidance provided for preparing the 2004 Inventory requires that agencies explain differences between the control number of FTE allocated by OPM and the number of FTE identified in the agency’s inventory. NSF has been allocated 1300 FTE, but has removed its Office of the Inspector General and its National Science Board FTE allocations for the Inventory. The 1229 FTE identified in the 2004 Inventory are the 1300 FTE allocated to NSF less the 71 FTE allocated to the OIG and NSB.

As we gather more information through the Business Analysis process, and as decisions continue to be made affecting our organizational structure and staffing levels, NSF will continue to refine our inventory and review the use of competitive sourcing as a tool for effecting changes suggested by the business analysis findings. We appreciate OMB’s ongoing support of this effort and will continue to work closely with you as we move forward.

Please contact Joseph Burt, Acting Director, Division of Human Resource Management, at 703-292-8180, for further information.


Arden L. Bement, Jr.
National Science Foundation


Last Modified: 03/24/17


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