25966 Federal Register / Vol. 65, No. 87 / Thursday, May 4, 2000 / Notices

ADDRESSES: Ledia Esther Bernal, OSHRC

Clearance Officer, 202–606–5390,

Occupational Safety and Health Review

Commission, 1120 20th Street, N.W.,

Ninth Floor, Washington, DC 20036–

3419, Stuart Shapiro, OMB Reviewer,

(202) 395–7857, Office of Management

and Budget, Room 10202, New

Executive Office Building, Washington,

DC 20503.

Patricia A. Randle,

Executive Director.

[FR Doc. 00–11081 Filed 5–3–00; 8:45 am]

BILLING CODE 7600–01–P

OFFICE OF MANAGEMENT AND

BUDGET

Request for Agency and Public

Comments

AGENCY: Office of Management and

Budget, Executive Office of the

President.

ACTION: Request for agency and public

comments.

SUMMARY: The Office of Management

and Budget (OMB) publishes a request

for agency and public comments on

three proposed technical changes to the

OMB Circular A–76 Revised

Supplemental Handbook.

DATES: Agency and public comments on

the proposed changes are due to OMB

not later than June 19, 2000.

ADDRESSES: Address all comments to

the Office of Federal Procurement

Policy, NEOB Room 9013, Office of

Management and Budget, 725 17th

Street, NW, Washington, DC 20503,

FAX Number (202) 395–5105.

FOR FURTHER INFORMATION CONTACT: Mr.

David C. Childs, Office of Federal

Procurement Policy, Telephone 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 Home page. The

online address (URL) is http://

www.whitehouse.gov/OMB/circulars/

index.html#numerical.

Interested parties 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.

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,

which implemented the Federal

Activities Inventory Reform (FAIR) Act,

remains in effect.

SUPPLEMENTARY INFORMATION:

1. In last year’s Federal Activities

Inventory Reform Act (FAIR) guidance

(OMB Circular A–76 Transmittal

Memorandum No. 20), OMB stated that

the statutory 30-day and 28-day

challenge and challenge response

periods would be calendar days, while

the 10-day appeal period would be

working days. OMB is aware that the 30-

day deadline for filing challenges was

very difficult to meet in 1999. OMB

therefore proposes to change, Appendix

2, paragraph g.3., of the Revised

Supplemental Handbook to provide for

30-working days. It is likewise proposed

that Appendix 2, paragraph g.4., be

changed to reflect 28-working days.

2. When asked what, if any, other

changes are needed to the Supplemental

Handbook, the Department of Defense

expressed only one concern—that Part

1, Chapter 3, paragraph K.1.e., which

requires appellants to ‘‘demonstrate that

the items appealed (in an A–76 cost

comparison) individually or in

aggregate, would reverse the tentative

decision,’’ appears to be in conflict with

the statement at Part 1, Chapter 3,

paragraph K.7., that provides that

sequential appeals are not authorized. It

has been suggested that these two

statements create an inappropriate

standard for the initial winner of the

tentative decision. We agree. All

concerns regarding the conduct of a cost

comparison should be brought forward

to the appeal authority within the single

appeal period. Therefore, to ensure that

all relevant concerns with the conduct

of a cost comparison are brought

forward, it is proposed that Part 1,

Chapter 3, paragraph K.1.e. be voided.

3. Recently, the General Accounting

Office expressed concerns regarding the

inclusion of Federal employees, whose

jobs are included in an A–76 cost

comparison study, as members of a

related A–76 Source Selection Team. As

a result, OMB has decided to strengthen

its long standing policy limiting such

participation, as a better business

practice. Individuals who hold positions

in an A–76 study should not be

members of the Source Selection Team,

unless an exception is authorized by the

head of the contracting activity.

Exceptions may be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity will provide a written statement

of the reasons for the action. OMB has

also been concerned that serving on a

Source Selection Team develops certain

important skills among the employees

that the Government could be in greater

risk of losing, if this ‘‘workforce

investment’’ became subject to being

outsourced. OMB has, therefore,

determined that restrictions on source

selection evaluation or advisory team

membership should be clarified. OMB

proposes to revise Part 1, Chapter 3

paragraph H. 3.b. of the Revised

Supplemental Handbook as follows:

b. ‘‘The Government should establish

a source selection evaluation or

advisory team. Individuals who hold

positions in the function under study

should not be members of the team,

unless an exception is authorized by the

head of the contracting activity.

Exceptions will be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity shall provide a written

statement of the reasons for the action.’’

Sylvia M. Mathews,

Deputy Director.

Circular No. A–76 (Revised)

Transmittal Memorandum No. 22

To the Heads of Executive Departments

and Agencies

Subject: Performance of Commercial

Activities

This Transmittal Memorandum

implements changes to the OMB

Circular A–76 Revised Supplemental

Handbook in furtherance of the

requirements of the Federal Activities

Inventory Reform Act (‘‘The FAIR Act’’),

Public Law 105–270 and to clarify other

issues of concern. The March 1996

Revised Supplemental Handbook was

issued through Transmittal

Memorandum 15, published in the

April 1, 1996, Federal Register at pages

14338–14346. The March 1996 Revised

Supplemental Handbook was further

revised to implement the requirements

of the FAIR Act on June 14, 1999,

Federal Register at pages 33927–33935.

The Federal Activities Inventory

Reform Act (FAIR) provides that there

shall be a 30-day administrative

challenge period available to interested

parties who might wish to challenge and

agency’s decision to include or omit an

activity from the list of potential

commercial activities. As a part of OMB

Circular A–76 Transmittal

Memorandum No. 20, dated June 14,

Federal Register / Vol. 65, No. 87 / Thursday, May 4, 2000 / Notices 25967

1999, OMB stated that the statutory 30-

day and 28-day challenge and challenge

response periods would be calendar

days, while the 10-day appeal period

would be working days. OMB is aware

that the 30-day deadline for filing

challenges was very difficult to meet in

1999. Appendix 2, paragraph g.3., of the

Revised Supplemental Handbook is,

therefore, revised to reflect 30-working

days. Appendix 2, paragraph g.4., is also

changed to reflect 28-working days.

Concern has been expressed that Part

1, Chapter 3, paragraph K.1.e., may be

in conflict with the statement at Part 1,

Chapter 3, paragraph K.7., that provides

that sequential administrative cost

comparison appeals are not authorized.

It is OMB’s view that all concerns

regarding the conduct of a cost

comparison should be brought forward

to the designated appeal authority

within the single appeal period.

Therefore, to ensure that all relevant

concerns with the conduct of a cost

comparison are brought forward, Part 1,

Chapter 3, paragraph K.1.e. is hereby

voided.

And finally, OMB has been concerned

that the use of Federal employees on

Source Selection Teams, when those

employees are subject to losing their

jobs or otherwise being adversely

affected by the award of the contract

being reviewed by that Source Selection

Team, is a poor business practice. OMB

is also concerned that such a practice

puts certain important skills that are

developed by participating on a Source

Selection Team at Risk. Therefore, OMB

revises Part 1, Chapter 3 paragraph H.

3.b. of the Revised Supplemental

Handbook as follows:

b. ‘‘The Government should establish

a source selection evaluation or

advisory team. Individuals who hold

positions in the function under study

should not be members of the team,

unless an exception is authorized by the

head of the contracting activity.

Exceptions will be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity shall provide a written

statement of the reasons for the action.

As a result, OMB has decided to

strengthen its long standing policy

limiting such participation, as a better

business practice. Individuals who hold

positions in an A–76 study should not

be members of the Source Selection

Team, unless an exception is authorized

by the head of the contracting activity.

Exceptions may be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity will provide a written statement

of the reasons for the action.’’

All changes in this Transmittal

Memorandum are effective immediately

and shall apply to all cost comparisons

in process where the Government’s inhouse cost estimate has not been

publicly revealed before this date.

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. 00–11155 Filed 5–3–00; 8:45 am]

BILLING CODE 3110–01–P

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 inhouse 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 inhouse 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.

Federal pay raise assumptions

effective date

Military/

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.