FAR 7.301—Definitions.
Plain-English Summary
FAR 7.301 is a cross-reference provision that tells readers where to find the operative definitions for the A-76 commercial activities subpart, especially the definition of "inherently governmental activity" and other related terms. Rather than restating those definitions in the FAR text, this section incorporates them by reference to Attachment D of OMB Circular No. A-76 (Revised), dated May 29, 2003. In practice, this means agencies, contracting officers, and contractors must consult the Circular itself when determining whether work may be performed by federal employees or contracted out, and when applying the commercial activities procedures in this subpart. The section matters because the definitions drive the threshold questions in A-76 analysis: what work is inherently governmental, what work is commercial, and what terms control the competition or sourcing decision. It also signals that the FAR text here is not self-contained, so users must read the incorporated OMB definitions to apply the subpart correctly and avoid misclassifying work.
Key Rules
Use A-76 definitions
The definitions applicable to this subpart are not stated in FAR 7.301 itself. Instead, users must rely on Attachment D of OMB Circular No. A-76 (Revised) for the controlling definitions.
Inherently governmental is defined externally
The meaning of "inherently governmental activity" comes from the Circular, not from the FAR text in this section. That definition is central to deciding whether an activity must remain in-house and cannot be contracted out.
Other terms also come from A-76
Any other terms applicable to the subpart are likewise defined in Attachment D of the Circular. This ensures consistent interpretation across agencies when applying commercial activities procedures.
Cross-reference governs interpretation
Because this section is a reference provision, the Circular’s definitions control the meaning of key terms used throughout the subpart. Users should read the definitions together with the rest of the A-76 procedures to apply them correctly.
Responsibilities
Contracting Officer
Identify and apply the correct A-76 definitions when evaluating whether an activity is inherently governmental or commercial, and ensure sourcing decisions under the subpart use the Circular’s terminology accurately.
Agency
Use the OMB Circular A-76 definitions as the authoritative source for terms under this subpart and train personnel to apply those definitions consistently in commercial activities reviews.
Contractor
Understand that the agency’s sourcing and competition decisions may depend on A-76 definitions outside the FAR text, and review the Circular when assessing the scope of work or the nature of the activity.
Practical Implications
This section is a reminder that you cannot interpret A-76 issues from FAR 7.301 alone; you must consult OMB Circular A-76, Attachment D.
A common pitfall is treating "inherently governmental" as a general-sense phrase instead of using the specific A-76 definition, which can lead to improper outsourcing or flawed sourcing decisions.
Contracting officers should verify the applicable definitions before starting a commercial activities review, because the classification of the work drives the entire process.
Agencies should keep current copies of the Circular and ensure acquisition staff use the correct version, since outdated definitions can undermine the validity of the analysis.
Contractors should be aware that disputes over scope, performance source, or competition strategy may turn on these incorporated definitions rather than on FAR text alone.
Official Regulatory Text
Definitions of "inherently governmental activity" and other terms applicable to this subpart are set forth at Attachment D of the Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (the Circular).