[Federal Register Volume 65, Number 87 (Thursday, May 4, 2000)]
[Notices]
[Pages 25967-25968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11156]


-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET


Issuance of Transmittal Memorandum No. 21 Amending OMB Circular 
No. A-76, ``Performance of Commercial Activities''

AGENCY: Office of Management and Budget, Executive Office of the 
President.

ACTION: Issuance of Transmittal Memorandum No. 21, amending OMB 
Circular No. A-76, ``Performance of Commercial Activities.''

-----------------------------------------------------------------------

SUMMARY: This Transmittal Memorandum updates the annual Federal pay 
raise assumptions and inflation factors used for computing the 
Government's in-house personnel and non-pay costs, as generally 
provided in the President's Budget for Fiscal Year 2001.

DATES: All changes in the Transmittal Memorandum are effective 
immediately and shall apply to all cost comparisons in process where 
the Government's in-house cost estimate has not been publicly revealed 
before this date.

FOR FURTHER INFORMATION CONTACT: Mr. David C. Childs, Office of Federal 
Procurement Policy, NEOB Room 9013, Office of Management and Budget, 
725 17th Street, NW, Washington, DC 20503, Tel. No. (202) 395-6104.

AVAILABILITY: Copies of the OMB Circular A-76, its Revised Supplemental 
Handbook and currently applicable Transmittal Memoranda may be obtained 
at the OMB Homepage on the Internet. The online address (URL) is http://www.whitehouse.gov/OMB/circulars/index.html#numerical.

Sylvia M. Mathews,
Deputy Director.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 21
To the Heads of Executive Departments and Agencies
Subject: Performance of Commercial Activities

    This Transmittal Memorandum updates the annual Federal pay raise 
assumptions and inflation factors used for computing the Government's 
in-house personnel and non-pay costs, as generally provided in the 
President's Budget for Fiscal Year 2001.
    The non-pay inflation factors are for purposes of A-76 cost 
comparison determinations only. They reflect the generic non-pay 
inflation assumptions used to develop the FY 2001 Budget baseline 
estimates required by law. The law requires that a specific inflation 
factor (FY/FY G.D.P. chain price index) be used for this purpose. These 
inflation factors should not be viewed as estimates of expected 
inflation rates for specific major long-term procurement items or as an 
estimate of inflation for any particular agency's non-pay purchases 
mix.

------------------------------------------------------------------------
                                                               Military/
        Federal pay raise assumptions  effective date           civilian
                                                               (percent)
------------------------------------------------------------------------
January 2000.................................................        4.8
January 2001.................................................        3.7
January 2002.................................................        3.7
January 2003.................................................        3.2
January 2004.................................................        3.2
January 2005.................................................        3.2
------------------------------------------------------------------------


------------------------------------------------------------------------
      Non-pay categories (supplies and equipment, etc.)         Percent
------------------------------------------------------------------------
FY 1999......................................................        1.3
FY 2000......................................................        1.5
FY 2001......................................................        2.0
FY 2002......................................................        2.0
FY 2003......................................................        2.0
FY 2004......................................................        2.0
FY 2005......................................................        2.0
------------------------------------------------------------------------

    The pay rate (including geographic pay differentials) that are in 
effect for 2000 shall be included for the development of in-house 
personnel costs. The pay raise factors provided for 2001 and beyond 
shall be applied to all employees, with no assumption being made as to 
how they will be distributed between possible locality and ECI-based 
increases.
    Agencies are reminded that OMB Circular No. A-76, Transmittal 
Memoranda 1 through Transmittal Memorandum 14 are canceled. Transmittal 
Memorandum No. 15 provided the Revised Supplemental Handbook dated 
March 27, 1996 (Federal Register, April 1, 1996, pages 14338-14346) and 
remains in effect. Transmittal Memoranda No. 16, 17 and 18, which 
provided previous A-76 related Federal pay raise and inflation factor 
assumptions are canceled.

[[Page 25968]]

Transmittal Memorandum No. 19, to the extent that it provided last 
year's A-76 related Federal pay raise and inflation factor assumptions, 
is canceled. The standard retirement cost factors for the weighted 
average CSRS/FERS pension and Federal retiree health cost numbers and 
the post-retirement health costs also provided by Transmittal 
Memorandum No. 19, remain in effect. Transmittal 20, with implemented 
the Federal Activities Inventory Reform (FAIR) Act, remains in effect. 
Current A-76 guidance can be accessed at OMB's Homepage at http://www.whitehouse.gov/OMB/circulars/index.html#numerical

Sylvia M. Mathews,
Deputy Director.
[FR Doc. 00-11156 Filed 5-3-00; 8:45 am]
BILLING CODE