The Office of Management and Budget's Circular A-76 provides policy guidance and implementation procedures for government agencies to use in deciding whether to contract out for commercial activities--a product or service that could be obtained from a private sector source. This testimony (1) discusses the purpose and usefulness of A-76 in the current federal environment; (2) shows that A-76 is not being used extensively by civilian agencies and then examines the effectiveness of OMB's efforts to lead the implementation of A-76--efforts that, in GAO's view, could be enhanced; and (3) provides observations on the necessary elements of a more active A-76 program.