Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Proposed Rules 6469 

provided the official file clearly 

documents the recipient’s voluntary 

election. 

(10) Unrecovered indirect costs. In 

accordance with 2 CFR 200.405, indirect 

costs not recovered due to deviations to 

the federally negotiated rate are not 

allowable for recovery via any other 

means. 

(b) [Reserved] 

§ 1403.402–1403.999 [Reserved] 

Dated: January 20, 2016. 

Kristen J. Sarri, 

Principal Deputy Assistant Secretary—Policy, 

Management and Budget. 

[FR Doc. 2016–02039 Filed 2–5–16; 8:45 am] 

BILLING CODE 4334–63–P 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR PART 250 

RIN 3206–AL98 

Personnel Management in Agencies 

AGENCY: Office of Personnel 

Management. 

ACTION: Proposed rule. 

SUMMARY: The Office of Personnel 

Management is issuing proposed 

regulations that introduce updated 

systems and regulatory definitions for 

managing human resources in the 

Federal Government. The rulemaking 

also proposes to reduce and clarify the 

reporting procedures that agencies are 

required to follow, creates a data-driven 

review process (HRStat); and describes 

workforce planning methods that 

agencies are required to follow. 

Additionally, the proposed regulation 

aligns Strategic Human Capital 

Management to the Government 

Performance and Results Act 

Modernization Act of 2010 (Pub. L. 111– 

352). It also sets forth the new Human 

Capital Framework (HCF), which 

replaces the Human Capital Assessment 

Accountability Framework (HCAAF). 

DATES: Comments must be received on 

or before April 8, 2016. 

ADDRESSES: You may submit comments, 

identified by RIN number 3206–AL98, 

using any of the following methods: 

Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

Mail: Veronica Villalobos, Principal 

Deputy Associate Director, Employee 

Services, Office of Personnel 

Management, Room 7460, 1900 E Street 

NW., Washington, DC 20415. 

FOR FURTHER INFORMATION CONTACT: For 

information contact Jan Chisolm-King 

by email at janet.chisolm-king@opm.gov 

or by telephone at (202) 606–1958. 

SUPPLEMENTARY INFORMATION: The Office 

of Personnel Management (OPM) is 

issuing proposed regulations to revise 5 

CFR part 250, subpart B, Strategic 

Human Capital Management and 5 CFR 

part 250, subpart C, Employee Surveys. 

5 CFR part 250, subpart B, 

implements the requirements of 5 U.S.C. 

1103(c) and the Chief Human Capital 

Officers Act (CHCO Act). Section 

1103(c)(1) requires OPM to design a set 

of systems, including appropriate 

metrics, for assessing the management 

of human capital by Federal agencies 

and to define those systems in 

regulation. Section 1103(c)(2) requires 

OPM to define the systems in 

regulations and include standards 

addressing a series of specified topics. 

Subpart B of part 250 of title 5, Code of 

Federal Regulations, contains those 

regulations. Subpart B also provides an 

avenue for Chief Human Capital Officers 

(CHCOs) to carry out their required 

functions under 5 U.S.C. 1402(a). 

Current regulations implement 5 

U.S.C. 1103(c) by adopting the systems 

currently comprising the Human Capital 

Assessment and Accountability 

Framework (HCAAF) to constitute the 

systems required by 5 U.S.C. 1103(c)(1) 

and to provide the systems definitions 

and standards required by 5 U.S.C. 

1103(c)(2). The HCAAF is a framework 

that integrates four human capital 

systems—Strategic Planning and 

Alignment, Talent Management, 

Performance Culture, and Evaluation. 

These systems define practices for the 

effective and efficient management of 

human capital and support the steps 

involved in the planning and goal 

setting, implementation, and evaluation 

of human capital policies, programs, 

and initiatives in the Federal 

Government. 

Proposed August 2011 Regulations 

In August, 2011, OPM issued 

proposed regulations (FR Doc No: 2011– 

19844) that sought to make several 

changes to the regulatory definitions 

related to the strategic management of 

human capital. The current regulations 

implement 5 U.S.C. 1103(c) by adopting 

the systems comprising the Human 

Capital Assessment and Accountability 

Framework (HCAAF) to constitute the 

systems required by 5 U.S.C. 1103(c)(1) 

and to provide the systems definitions 

and standards required by 5 U.S.C. 

1103(c)(2). Having the HCAAF written 

into regulation makes it difficult to keep 

current. OPM concluded in 2011, as it 

does again today, that it would be more 

effective to provide definitions in the 

regulations that establish broad, 

overarching concepts, and to treat some 

of the system-specific material in the 

framework as guidance that is subject to 

change as Federal human capital 

management evolves. This removal of 

the HCAAF from the stated regulation 

into guidance would allow OPM to 

refresh aspects of the framework, 

without requiring a change to the 

specific regulations, thereby 

encouraging flexibility and adaptability. 

An additional change in the earlier 

proposal was the elimination of the 

requirement for the Strategic Human 

Capital Plan (SHCP) and Human Capital 

Management Report (HCMR) to reduce 

the burden of reporting requirements for 

the agencies. 

In addition, the earlier proposed 

regulation would have clarified 

requirements imposed by two separate 

legal authorities. In the past, there was 

some confusion regarding whether 

agencies must establish separate 

accountability systems in order to 

satisfy the statutory requirements of 5 

U.S.C. 1103(c)(2)(F) and any 

requirement OPM previously imposed 

under Civil Service Rule X (5 CFR 10.2). 

The proposed regulations were expected 

to make clear that the requirements of 

these two legal authorities are satisfied 

by the establishment of the Human 

Capital Accountability System (HCAS) 

set forth in section 250.205 of the 

proposed regulation. 

Recent Developments 

OPM did not make the proposed 

regulation final because of several 

developments that required additional 

changes to what had been written in the 

proposed regulation. One major change 

was the enactment of the Government 

Performance and Results Act 

Modernization Act of 2010 (Pub. L. 111– 

352), and the issuance of the Diversity 

and Inclusion Executive Order (E.O. 

13583). 

The Government Performance and 

Results Act (GPRA) Modernization Act 

(GPRAMA) 

Before the enactment of GPRAMA, 

agencies were required to develop 

Strategic Human Capital Plans that 

identified human capital (HC) strategies 

and resources that support agency 

missions and strategic goals. Under 

GPRAMA, agency strategic HC plans are 

no longer required; however, agencies 

must now integrate the human capital 

strategies and resources within their 

agency strategic plan. Human Capital 

Management Reports (HCMRs) also 

were eliminated. Implementation 

guidance for GPRAMA states that 

CHCOs will address in their Annual 

Performance Plan, ‘‘how performance 


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goals are to be achieved with respect to 

training, skills, and other HC resources 

required to meet those performance 

goals’’ (Pub. L. 111–352). 

This information was previously 

reported in the agency HCMR. OPM is 

now introducing a requirement that 

agencies develop a process to monitor 

how the design and implementation of 

their respective human capital policies 

and programs support an agency’s 

mission and strategic goals. Thus, the 

Annual Performance Plan and annual 

Human Capital Operation Plan (HCOP) 

will eliminate the requirement currently 

stated in section 250.203 to maintain a 

human capital plan. 

In addition, the Diversity and 

Inclusion Executive Order supports the 

elimination of the SHCP and the HCMR 

through its emphasis on report 

consolidation— 

review applicable directives to agencies 

related to the development or submission of 

agency human capital and other workforce 

plans and reports in connection with 

recruitment, hiring, promotion, retention, 

professional development, and training 

policies and practices, and develop a strategy 

for consolidating such agency plans and 

reports where appropriate and permitted by 

law (E.O. 13583, Sec. 2(b)(ii)) 

HCAAF Revitalization 

A third reason that OPM did not make 

the proposed regulation final was 

because at the same time new 

regulations and executive orders were 

being proposed, OPM launched an 

initiative called Human Capital 

Assessment and Accountability 

Framework (HCAAF) Revitalization. 

The intent of the initiative was to 

update the set of systems and standards 

that have direct impact on how agencies 

carry out the planning, implementation, 

and evaluation of their HC initiatives/

programs. The HCAAF Revitalization 

initiative identified innovative 

approaches that will help ensure that 

the framework continues to add value to 

Federal human capital professionals and 

program managers. As part of this 

revitalization effort, OPM conducted a 

thorough analysis of the current HCAAF 

framework, including a review of the 

initial goals and objectives of the 

framework, its flexibility, and how 

effectively it has been used in the 

current Federal environment, and 

identification of implementation 

challenges. Data on the current HCAAF 

and how it is used was obtained through 

the following venues: 

• Interviews conducted with a wide 

range of subject matter experts (SMEs) 

knowledgeable about the HCAAF; 

• administration of a questionnaire to 

human resources directors and program 

managers throughout the Federal 

Government; 

• reviews of relevant documentation/ 

literature provided by OPM, academic, 

and practitioner communities; and 

• a roundtable meeting of noted 

human capital practitioners and experts 

from public and private sectors. 

Based on this exhaustive review, OPM 

concluded that it would be more 

effective to discharge its obligations 

under 5 U.S.C. 1103(c)(2) by developing 

a Human Capital Framework (HCF) that 

is composed of four systems—Strategic 

Planning and Alignment, Performance 

Culture, Talent Management, and 

Evaluation. 

New Human Capital Framework 

The Human Capital Framework (HCF) 

is a framework that integrates four 

human capital systems—Strategic 

Planning and Alignment, Talent 

Management, Performance Culture, and 

Evaluation. These systems define good 

practices for effective and efficient 

human capital management and support 

the steps involved in the planning and 

goal setting, implementation, and 

evaluation of human capital initiatives 

in the Federal Government. 

The proposed framework contains 

standards and focus areas. A standard is 

a consistent practice within human 

capital management in which agencies 

strive towards in each of the four HCF 

systems. The standards ensure that an 

agency’s human capital management 

strategies, plans, and practices: (1) Are 

integrated with strategic plans, annual 

performance plans and goals, and other 

relevant budget, and acquisition plans; 

(2) contain measurable and observable 

performance targets; (3) are 

communicated in an open and 

transparent manner to facilitate crossagency collaboration to achieve mission 

objectives; and (4) inform the 

development of human capital 

management priority goals for the 

Federal Government. The introduction 

of standards and monitoring of how 

they are implemented fosters an 

environment to establish progress 

measures. Focus areas are sound 

approaches that further define the 

system and must be integrated within 

agency strategic plans, annual 

performance plans and goals that 

contain measurable and observable 

performance targets and are 

communicated in an open and 

transparent manner to facilitate crossagency collaboration to achieve mission 

objectives. 

Finally, the proposed framework will 

include resources that can assist in the 

development, implementation, and 

monitoring of sound strategic human 

capital practices. 

Proposed Regulation 

OPM is now issuing proposed 

regulations to revise 5 CFR part 250, 

subpart B, Strategic Human Capital 

Management. The proposed regulation 

will: 

• Revise definitions to better align 

with statute. 

• Implement 5 U.S.C 1103 by 

adopting the proposed new systems as 

required by 5 U.S.C. 1103(c)(1) and the 

proposed new systems, definitions, and 

standards as required by 5 U.S.C. 

1103(c)(2). This new framework will 

integrate four human capital systems— 

Strategic Planning and Alignment, 

Performance Culture, Talent 

Management, and Evaluation. We 

expect that the new systems and system 

definitions will facilitate more effective 

alignment of human capital programs 

with agency mission objectives. 

• Define the new systems and include 

the new standards as required by 5 

U.S.C. 1103(c)(2) as a set of overarching 

concepts in regulation to be 

supplemented with details in guidance. 

OPM continues to believe that, under 

the current regulation, the incorporation 

of the full text of the HCAAF to satisfy 

the 5 U.S.C. 1103(c)(2) requirements has 

proven to undermine the original 

concept of the HCAAF with respect to 

flexibility and adaptability. The original 

HCAAF document was integrated 

several years ago into a web-based 

Resource Center that was updated based 

on feedback, analysis, and emerging 

agency practices and results. Once the 

entire text of the HCAAF was brought 

into regulation, it became difficult to 

keep current. OPM concluded that it 

would be more effective to discharge its 

obligations under 5 U.S.C. 1103(c)(2) by 

providing definitions in the regulations 

that establish broad, overarching 

concepts, and treating the specific 

material in the HCAAF as guidance that 

can be updated, as appropriate, as 

Federal human capital management 

evolves. This will allow OPM to refresh 

some aspects of the framework without 

requiring a change to the specific 

regulations thus encouraging flexibility 

and adaptability. 

• Create the Human Capital Strategic 

Review (HCSR) process. The HCSRs 

will: 

Æ Enable OPM and agencies to 

monitor progress with achieving 

organizational outcomes by the 

presentation of synthesized evidence 

and information (indicators, 

evaluations/audits, and HRStat 

reviews); 


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Æ provide OPM with the opportunity 

to identify cross-cutting themes to 

position OPM to develop 

governmentwide policies and strategies; 

Æ afford agencies with the 

opportunity to receive feedback from 

OPM to improve strategies and 

evaluation processes; and 

Æ identify opportunities for 

improvement that will enable decision 

making that leads to the prioritization of 

resources. 

• Institutionalize a human capital 

performance improvement process, 

referred to as ‘‘HRStat’’ that identifies, 

measures, and analyzes human capital 

data to improve human capital 

outcomes. HRStat, a data-driven review 

process, will drive performance and 

alignment of achieving human capital 

goals related to the agency mission. 

• Define the annual Human Capital 

Operation Plan, which supports an 

Agency Performance Plan. 

• Restructure the requirements of 

Subpart B of Part 250 for agencies by 

removing the regulatory requirement for 

the HCMR. OPM proposes to monitor 

agency outcomes in human capital 

management through the Human Capital 

Evaluation Framework. 

• Introduce workforce planning 

methods agencies are required to follow. 

• Ensure consistency by clearly 

defining key human capital 

management terms. 

The purpose of these proposed 

changes is to focus the regulations on 

the specific requirements that are the 

most significant for establishing and 

maintaining efficient and effective 

human capital management systems 

now and into the future, while 

providing agencies with flexibility in 

determining how they will accomplish 

their human capital activities. 

Employee Survey Enhancements 

5 CFR part 250, subpart C, 

implements the requirements of section 

1128 of the National Defense 

Authorization Act for Fiscal Year 2004 

(Pub. L. 108–136, sec.1128, codified at 

5 U.S.C. 7101 note). Section 1128 of 

Public Law. 108–136 requires each 

Executive agency to conduct an annual 

survey of its employees to assess 

leadership and management practices 

that contribute to agency performance 

and employee satisfaction as it relates to 

five enumerated areas of work life. The 

law also requires OPM to ‘‘issue 

regulations prescribing survey questions 

that should appear on all agency 

surveys.’’ In addition, the law requires 

agencies to make the survey results 

available to the public and post the 

results on their Web sites, unless the 

head of the agency determines that 

doing so would jeopardize or negatively 

impact national security. 

Survey Background 

OPM issued a final regulation (5 CFR 

part 250, subpart C) including 45 

specific survey questions on August 24, 

2006. The requirement was for agencies 

to conduct an annual survey (‘‘Annual 

Employee Survey’’) with prescribed 

questions beginning in calendar year 

2007. OPM’s centralized Federal 

Employee Viewpoint Survey (FEVS) 

administration includes these survey 

questions. When the FEVS is 

administered governmentwide the 

burden for individual agencies to 

administer its own survey is alleviated. 

To modernize the survey, OPM is 

issuing proposed regulations to revise 5 

CFR part 250, subpart C, Employee 

Surveys. The proposed regulation will: 

• Reduce the number of specifically 

prescribed questions in the regulation: 

A critical review of the FEVS 

questions currently in regulation was 

conducted by: (1) A cross-governmental 

agency task force convened by OPM 

(2011); and (2) by university researchers 

and published in the Public 

Administration Review (PAR) 

(Fernandez, Resh, Moldogaziev, and 

Oberfield, 2015) for the purpose of 

reviewing and revising the current 

questions. These reviews led to the 

formation of a group of OPM 

psychologists tasked with addressing 

these recommendations to further 

advance the survey program. 

The cross-governmental agency task 

force, made up of survey experts from 

several agencies (e.g., ODNI, DOD, 

OMB, DOI, VA) reviewed the FEVS 

through a stepwise process of data 

analysis, stakeholder engagement, 

solicitation of expert opinion and input 

from OMB and recommended a concise 

subset of questions critical to the intent 

of the original statute. 

The PAR article, which reviewed 

more than 40 research articles based on 

FEVS data, indicates the validity of the 

FEVS would largely benefit from a 

revision to include stronger, relevant 

and unambiguous questions as well as 

questions that capture a single concept. 

The study also addressed the notion that 

in a revision of survey questions, the 

selection of relevant concepts and 

proper instrumentation should be 

grounded in a thorough review of the 

literature and sound theoretical 

reasoning. 

The group of OPM psychologists 

analyzed and confirmed the external 

recommendations and proposed a final 

set of 11 questions that were selected 

based on adherence to and measurement 

of the areas in statute. The identified 

questions exhibit appropriate properties 

as metrics as reflected through 

psychometric analysis; and are clear and 

unambiguous in nature. These 

independent efforts support the 

inclusion of the set of questions 

proposed in this regulation. OPM will 

address specific item concerns at the 

conclusion of the open comment period. 

• Modify the definitions of the terms 

used in the questions in regulation. 

Definitions were modified and clarified 

in response to comments received 

during the course of FEVS 

administration from (1) survey 

respondents, (2) agency leaders, and (3) 

the Senior Executive Association; and 

• Modify the requirement for 

notification to OPM. Process 

improvements achieved by technical 

advances eliminate the regulatory need 

for agencies to submit data to OPM as 

OPM can readily access data from posts 

of agency results to their Web sites as 

required under § 250.303(a). 

Executive Order 13563 and Executive 

Order 12866, Regulatory Review 

The Office of Management and Budget 

has reviewed this proposed rule in 

accordance with E.O. 13563 and 12866. 

Paperwork Reduction Act 

This document does not contain 

proposed information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (Pub. L. 104–13). 

Regulatory Flexibility Act 

I certify that these regulations will not 

have a significant economic impact on 

a substantial number of small entities 

because they apply only to Federal 

agencies and employees. 

List of Subjects in 5 CFR Part 250 

Authority for personnel actions in 

agencies, Employee surveys, Strategic 

human capital management. 

Office of Personnel Management. 

Beth F. Cobert, 

Acting Director. 

Accordingly, OPM is proposing to 

amend title 5, Code of Federal 

Regulations, as follows: 

PART 250—PERSONNEL 

MANAGEMENT IN AGENCIES 

Subpart B—Strategic Human Capital 

Management 

■ 1. Subpart B is revised to read as 

follows: 

Subpart B—Strategic Human Capital 

Management 

Sec. 

250.201 Coverage and purpose. 


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250.202 Definitions. 

250.203 Strategic human capital 

management. 

250.204 Agency roles and responsibilities. 

250.205 Metrics. 

250.206 Consequences of improper agency 

actions. 

Subpart B—Strategic Human Capital 

Management 

Authority: 5 U.S.C. 105; 5 U.S.C. 1103 

(a)(7), (c)(1), and (c)(2); 5 U.S.C. 1401; 5 

U.S.C. 1402(a); 31 U.S.C. 1115(a)(3); 31 

U.S.C. 1115(f); 31 U.S.C. 1116(d)(5); Public 

Law 103–62; Public Law 107–296; Public 

Law 108–136, 1128; Public Law 111–352; 5 

C.F.R 10.2; FR Doc No: 2011–19844; E.O. 

13583; E.O. 13583, Sec 2(b)(ii) 

§ 250.201 Coverage and purpose. 

Pursuant to 5 U.S.C. 1103(c), this 

subpart defines a set of systems, 

including standards and metrics, for 

assessing the management of human 

capital by Federal agencies. These 

regulations apply to all Executive 

agencies as defined in 5 U.S.C. 105 and 

support the performance planning and 

reporting that is required by sections 

1115(a)(3) and (f) and 1116(d)(5) of title 

31, United States Code. 

§ 250.202 Definitions. 

Chief Human Capital Officer (CHCO) 

is the agency’s senior leader whose 

primary duty is to: 

(1) Advise and assist the head of the 

agency and other agency officials in 

carrying out the agency’s 

responsibilities for selecting, 

developing, training, and managing a 

high-quality, productive workforce in 

accordance with merit system 

principles; and 

(2) Implement the rules and 

regulations of the President, the Office 

of Personnel Management (OPM), and 

the laws governing the civil service 

within the agency. 

CHCO agency is an Executive agency, 

as defined by 5 U.S.C. 105, which is 

required by 5 U.S.C. 1401 to appoint a 

CHCO. 

Director of OPM is, among other 

things, the President’s advisor on 

actions that may be taken to promote an 

efficient civil service and a systematic 

application of the merit system 

principles, including recommending 

policies relating to the selection, 

promotion, transfer, performance, pay, 

conditions of service, tenure, and 

separation of employees. The Director of 

OPM provides governmentwide 

leadership and direction in the strategic 

management of the Federal workforce. 

Evaluation system is an agency’s 

overarching system for evaluating the 

results of all human capital planning to 

inform the agency’s continuous process 

improvement efforts. This system also is 

used for ensuring compliance with all 

applicable statutes, rules, regulations, 

and agency policies. 

Federal Workforce Strategic Priorities 

Report is a strategic human capital 

report, published by OPM by the first 

Monday in February of any year in 

which the term of the President 

commences. The report communicates 

key governmentwide human capital 

priorities and suggested strategies. The 

report informs agency strategic and 

human capital planning. 

Focus areas are areas that agencies 

and human capital practitioners must 

focus on to achieve a system’s standard. 

HRStat is a strategic human capital 

performance evaluation process that 

identifies, measures, and analyzes 

human capital data to inform the impact 

of agency human capital on 

organizational results and to improve 

human capital outcomes. HRStat is a 

component of an agency’s strategic 

planning and alignment, and evaluation 

systems that are part of the Human 

Capital Framework.. 

Human Capital Evaluation 

Framework underlies the three human 

capital evaluation mechanisms (e.g., 

HRStat, Audits, and Human Capital 

Strategic Reviews) to create a central 

evaluation framework that integrates the 

outcomes from each to provide OPM 

and agencies with an understanding of 

how human capital policies and 

programs are supporting missions. 

Human Capital Framework (HCF) 

provides comprehensive guidance on 

the principles of strategic human capital 

management in the Federal 

Government. The framework provides 

direction on human capital planning, 

implementation, and evaluation in the 

Federal environment. 

Human Capital Operation Plan 

(HCOP) is an agency’s annual human 

capital implementation document, 

which describes how an agency will 

support the human capital elements 

stated within its Annual Performance 

Plan (APP). Program specific workforce 

investments and strategies (e.g., hiring, 

closing skills gaps, etc.) should be 

incorporated into the APPs as 

appropriate. The HCOP should clearly 

execute each of the four systems of the 

HCF. The HC Strategy, HCOP, and 

HCSR should align with GPRAMA 

annual performance plans and 

timelines. 

Human Capital Strategic Review 

(HCSR) is OPM’s annual review of an 

agency’s design and implementation of 

its HCOP, independent audit, and 

HRStat programs to support mission 

accomplishment and human capital 

outcomes. 

Independent audit program is a 

component of an agency’s evaluation 

system designed to review all human 

capital management systems and select 

human resources transactions to ensure 

efficiency, effectiveness, and legal and 

regulatory compliance. 

Skills gap is a variance between the 

current and projected workforce size 

and skills needed to ensure an agency 

has a cadre of talent available to meet 

its mission, and make progress towards 

its goals and objectives. 

Standard is a consistent practice 

within human capital management in 

which agencies strive towards in each of 

the four HCF systems. The standards 

ensure that an agency’s human capital 

management strategies, plans, and 

practices: 

(1) Are integrated with strategic plans, 

annual performance plans and goals, 

and other relevant budget, finance, and 

acquisition plans; 

(2) Contain measurable and 

observable performance targets; 

(3) Are communicated in an open and 

transparent manner to facilitate crossagency collaboration to achieve mission 

objectives; and 

(4) Inform the development of human 

capital management priority goals for 

the Federal Government. 

§ 250.203 Strategic human capital 

management systems and standards. 

Strategic human capital management 

systems, standards, and focus areas are 

defined within the Human Capital 

Framework (HCF). The four systems 

described below provide definitions and 

standards for human capital planning, 

implementation, and evaluation. OPM 

may augment the definitions and 

standards set forth in this section with 

additional focus areas that the Director 

of OPM will publish in such form as the 

Director determines appropriate. The 

HCF systems and standards are: 

(a) Strategic planning and alignment. 

A system that ensures agency human 

capital programs are aligned with 

agency mission, goals, and objectives 

through analysis, planning, investment, 

and measurement. The standards for the 

strategic planning and alignment system 

require an agency to ensure an agency’s 

human capital management strategies, 

plans, and practices— 

(1) Integrate strategic plans, annual 

performance plans and goals, and other 

relevant budget, finance, and 

acquisition plans; 

(2) Contain measurable and 

observable performance targets; and 

(3) Communicate in an open and 

transparent manner to facilitate crossagency collaboration to achieve mission 

objectives. 


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(b) Talent management. A system that 

promotes a high-performing workforce, 

identifies and closes skills gaps, and 

implements and maintains programs to 

attract, acquire, develop, promote, and 

retain quality and diverse talent. The 

standards for the Talent Management 

system require an agency to— 

(1) Plan for and manage current and 

future workforce needs; 

(2) Design, develop, and implement 

proven strategies and techniques and 

practices to attract, hire, develop, and 

retain talent; and 

(3) Make progress toward closing any 

knowledge, skill, and competency gaps 

throughout the agency. 

(c) Performance culture. A system that 

engages, develops, and inspires a 

diverse, high-performing workforce by 

creating, implementing, and 

maintaining effective performance 

management strategies, practices, and 

activities that support mission 

objectives. The standards for the 

performance culture system require an 

agency to have— 

(1) Strategies and processes to foster 

a culture of engagement and 

collaboration; 

(2) A diverse, results-oriented, highperforming workforce; and 

(3) A performance management 

system that differentiates levels of 

performance of staff, provides regular 

feedback, and links individual 

performance to organizational goals. 

(d) Evaluation. A system that 

contributes to agency performance by 

monitoring and evaluating outcomes of 

its human capital management 

strategies, policies, programs, and 

activities by meeting the following 

standards— 

(1) Ensuring compliance with merit 

system principles; and 

(2) Identifying, implementing, and 

monitoring process improvements. 

§ 250.204 Agency roles and 

responsibilities. 

(a) An agency must use the systems 

and standards established in this part, 

and any metrics that OPM subsequently 

provides in guidance, to plan, 

implement, evaluate and improve 

human capital policies and programs. 

These policies and programs must— 

(1) Align with Executive branch 

policies and priorities, as well as with 

individual agency missions, goals, and 

strategic objectives. Agencies must align 

their human capital management 

strategies to support the Federal 

Workforce Strategic Priorities Report, 

agency strategic plan, agency 

performance plan, and budgets prepared 

under OMB Circular A–11; 

(2) Be based on comprehensive 

workforce planning and analysis; 

(3) Monitor and address skills gaps 

within governmentwide and agencyspecific mission critical occupations by 

using comprehensive data analytic 

methods and gap closure strategies; 

(4) Recruit, hire, develop, and retain 

an effective workforce, especially in the 

agency’s mission-critical occupations; 

(5) Ensure leadership continuity by 

implementing and evaluating 

recruitment, development, and 

succession plans for leadership 

positions; 

(6) Implement a knowledge 

management process to ensure 

continuity in knowledge sharing among 

employees at all levels within the 

organization; 

(7) Sustain an agency culture that 

engages employees by defining, valuing, 

eliciting, and rewarding high 

performance; and 

(8) Hold the agency head, executives, 

managers, human capital officers, and 

human capital staff accountable for 

efficient and effective strategic human 

capital management, in accordance with 

merit system principles. 

(b) Each agency must meet the 

statutory requirements of the 

Government Performance and Results 

Act Modernization Act (GPRAMA) by 

including within the Annual 

Performance Plan (APP) human capital 

practices that are aligned to the APP. 

The human capital portion of the APP 

must include performance goals and 

indicators. Guidance on preparing the 

human capital portions of an agency’s 

APP can be found in OMB Circular A– 

11, part 6, section 200. 

(c) An agency’s Deputy Secretary, or 

equivalent, is responsible for ensuring 

that the agency’s strategic plan includes 

a description of the operational 

processes, skills and technology, and 

human capital information required to 

achieve the agency’s goals and 

objectives. Specifically, the Deputy 

Secretary, or equivalent will— 

(1) Allocate resources; 

(2) Ensure the agency incorporates 

applicable priorities identified within 

the Federal Workforce Strategic 

Priorities Report and is working to close 

governmentwide and agency-specific 

skills gaps; and 

(3) Participate with the senior 

management team in their agency’s (at 

a minimum) quarterly HRStat reviews. 

(d) Each agency must develop an 

annual Human Capital Operation Plan 

(HCOP) in support of the Federal human 

capital assessment and agency APP, to 

be reviewed annually, and updated if 

needed, as part of the agency’s efforts to 

improve its human capital processes. 

The HCOP must demonstrate how an 

agency’s human capital implementation 

strategies will meet an agency’s mission 

and strategic goals (e.g., human capital 

policies, goals, objectives, and day-today operational needs). The HCOP will 

be made available to OPM upon request. 

Guidance on preparing the human 

capital portions of an agency’s APP can 

be found in OMB Circular A–11, part 6, 

section 200. The HCOP must— 

(i) Be established through the 

coordination of a working group that is 

led by the agency’s Chief Human Capital 

Officer and which should include the 

agency’s Chief Operating Officer (COO), 

Performance Improvement Officer (PIO), 

Chief Information Officer (CIO), Chief 

Financial Officer (CFO), and Equal 

Employment Opportunity (EEO) 

Director to ensure that budget, 

technology, and performance processes 

are integrated to support human capital 

strategies and outcomes; 

(ii) Support the design and 

implementation of the human capital 

strategy by approving the agency fouryear annual Human Capital Operation 

Plan (AHCOP); 

(iii) Be used to inform the 

development of an agency’s strategic 

plan, because an agency’s human capital 

can affect whether or not a strategy or 

strategic goal is achieved; 

(iv) Explicitly describe the agencyspecific skill and competency gaps that 

must be closed through the use of 

agency selected human capital 

strategies; 

(v) Include annual human capital 

performance goals and measures that 

will support the evaluation of the 

agency’s human capital strategies, 

through HRStat reviews, and that are 

aligned to support mission 

accomplishment; 

(vi) Reflect the systems and standards 

defined in 250.203 above, consistent 

with their agency strategic plan and 

annual performance plan, to address 

strategic human capital priorities and 

goals; and 

(vii) Address the governmentwide 

priorities identified in the Federal 

Workforce Strategic Priorities Report. 

(e) Each agency must participate with 

OPM in a Human Capital Strategic 

Review (HCSR). The HCSR will be 

conducted during the evaluation phase 

and OPM will issue guidance about the 

HCSR requirements. 

(f) The Chief Human Capital Officer 

must design, implement and monitor 

agency human capital policies and 

programs that— 

(i) Ensure human capital activities 

support merit system principles; 

(ii) Use the OPM designated method 

to identify governmentwide and agencyspecific skills gaps; 


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6474 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Proposed Rules 

(iii) Demonstrate how the agency is 

using the principles within the Human 

Capital Framework (HCF) to address 

strategic human capital priorities and 

goals; 

(iv) Use the HRStat reviews, in 

coordination with the agency 

Performance Improvement Officer (PIO), 

to assess the agency’s progress toward 

meeting its strategic and performance 

goals; 

(v) Implement the HRStat Maturity 

guidelines specified by OPM; 

(vi) Use HRStat reviews to evaluate 

their agency’s progress; 

(vii) Establish and maintain an 

Evaluation System to evaluate human 

capital outcomes that is— 

(A) Formal and documented; and 

(B) Approved by OPM; 

(viii) Maintain an independent audit 

program, subject to full OPM 

participation and evaluation, to review 

periodically all human capital 

management systems and the agency’s 

human resources transactions to ensure 

legal and regulatory compliance. An 

agency must— 

(A) Take corrective action to eliminate 

deficiencies identified by OPM, or 

through the independent audit, and to 

improve its human capital management 

programs and its human resources 

processes and practices; and 

(B) Based on OPM or independent 

audit findings, issue a report to its 

leadership and OPM containing the 

analysis, results, and corrective actions 

taken; and 

(ix) Improve strategic human capital 

management by adjusting strategies and 

practices, as appropriate, after assessing 

the results of performance goals, 

indicators, and business analytics. 

(g) The agency’s human capital 

policies and programs must support the 

implementation and monitoring of the 

governmentwide Strategic Human 

Capital Strategy, which is published by 

OPM every four years, and— 

(1) Improve strategic human capital 

management by using performance 

goals, indicators, and business analytics 

to assess results of the human capital 

management strategies planned and 

implemented; 

(2) Ensure human capital activities 

support merit systems principles; 

(3) Adjust human capital management 

strategies and practices in response to 

outcomes identified during quarterly 

data-driven reviews of human capital 

performance to improve organizational 

processes; and 

(4) Use the governmentwide and 

agency-specific human capital strategies 

to inform resource requests (e.g., staff 

full-time equivalents, training, 

analytical software, etc.) into the 

agency’s annual budget process. 

§ 250.205 System metrics. 

OPM reserves the right to provide 

additional guidance regarding metrics as 

the need arises. 

§ 250.206 Consequences of improper 

agency actions. 

If OPM finds that an agency has taken 

an action contrary to a law, rule, 

regulation, or standard that OPM 

administers, OPM may require the 

agency to take corrective action. OPM 

may suspend or revoke a delegation 

agreement established under 5 U.S.C. 

1104(a)(2) at any time if it determines 

that the agency is not adhering to the 

provisions of the agreement. OPM may 

suspend or withdraw any authority 

granted under this chapter to an agency, 

including any authority granted by 

delegation agreement, when OPM finds 

that the agency has not complied with 

qualification standards OPM has issued, 

instructions OPM has published, or the 

regulations in this chapter. OPM also 

may suspend or withdraw these 

authorities when it determines that 

doing so is in the interest of the civil 

service for any other reason. 

Subpart C—Employee Surveys 

■ 2. Subpart C is revised to read as 

follows: 

Subpart C—Employee Surveys 

Sec. 

250.301 Definitions. 

250.302 Survey requirements. 

250.303 Availability of results. 

Subpart C—Employee Surveys 

Authority: 5 U.S.C. 105; 5 U.S.C. 7101 

note; Public Law 108–136 

§ 250.301 Definitions. 

Agency means an Executive agency, 

as defined in 5 U.S.C. 105. 

Senior leaders are the heads of 

departments/agencies and their 

immediate leadership team responsible 

for directing the policies and priorities 

of the department/agency. May hold 

either a political or career appointment 

and is typically a member of the senior 

executive service. 

Managers are those in management 

positions who typically supervise one or 

more supervisors. 

Supervisors are first-line supervisors 

typically responsible for employees’ 

performance appraisals and leave 

approval. Does not supervise other 

supervisors. 

§ 250.302 Survey requirements. 

(a) Each executive agency must 

conduct an annual survey of its 

employees to assess topics outlined in 

the National Defense Authorization Act 

for Fiscal Year 2004, Pub. L. 108–136, 

sec.1128, codified at 5 U.S.C. 7101. 

(b) Each executive agency may 

include additional survey questions 

unique to the agency in addition to the 

employee survey questions prescribed 

by OPM under paragraph (c) of this 

section. 

(c) The 11 prescribed survey 

questions are listed in the following 

table: 

(1) Leadership and Management practices that contribute to agency performance 

My work unit has the job-relevant skills necessary to accomplish organizational goals. 

Managers communicate the goals of the organization. 

(2) Employee Satisfaction with— 

(i) ...................... Leadership Policies and Practices 

How satisfied are you with your involvement in decisions that affect your work? 

How satisfied are you with the information you receive from management on what’s going on in your organization? 

(ii) ...................... Work Environment 

The people I work with cooperate to get the job done. 

My workload is reasonable. 

(iii) ..................... Rewards and Recognition 

In my work unit, differences in performance are recognized in a meaningful way. 

How satisfied are you with the recognition you receive for doing a good job? 

(iv) ..................... Opportunities for professional development and growth 

I am given a real opportunity to improve my skills in my organization. 

My talents are used well in the workplace. 


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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Proposed Rules 6475 

(v) ..................... Opportunity to contribute to achieving organizational mission 

I know how my work relates to the agency’s goals. 

§ 250.303 Availability of results. 

(a) Each agency will make the results 

of its annual survey available to the 

public and post the results on its Web 

site unless the agency head determines 

that doing so would jeopardize or 

negatively impact national security. The 

posted survey results will include the 

following: 

(1) The agency’s evaluation of its 

survey results; 

(2) How the survey was conducted; 

(3) Description of the employee 

sample, unless all employees are 

surveyed; 

(4) The survey questions and response 

choices with the prescribed questions 

identified; 

(5) The number of employees 

surveyed and number of employees who 

completed the survey; and 

(6) The number of respondents for 

each survey question and each response 

choice. 

(b) Data must be collected by 

December 31 of each calendar year. 

Each agency must post the beginning 

and ending dates of its employee survey 

and either the survey results described 

in paragraph (a) of this section, or a 

statement noting the decision not to 

post, no later than 120 days after the 

agency completes survey 

administration. OPM may extend this 

date under unusual circumstances. 

[FR Doc. 2016–02112 Filed 2–5–16; 8:45 am] 

BILLING CODE 6325–39–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2016–0462; Directorate 

Identifier 2015–NM–144–AD] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for certain 

The Boeing Company Model 737–600, 

–700, –700C, –800, –900, and –900ER 

series airplanes. This proposed AD was 

prompted by a report of wire chafing 

damage, which caused an electrical arc 

to an adjacent hydraulic tube located on 

the forward bulkhead of the main 

landing gear (MLG) wheel well, 

resulting in a hole in a hydraulic tube 

and consequent total loss of system B 

hydraulic fluid. This proposed AD 

would require an inspection for chafing 

damage of wire bundles and a hydraulic 

tube in the right side of the MLG wheel 

well, and corrective action if necessary; 

and installation of clamps between the 

wire bundles and hydraulic tube. We 

are proposing this AD to prevent chafing 

damage, which could result in electrical 

arcing that can cause a hole in the 

hydraulic tube and consequent loss of 

hydraulic fluid, possibly resulting in a 

fire in the MLG wheel well. 

DATES: We must receive comments on 

this proposed AD by March 24, 2016. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this NPRM, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P. O. Box 3707, MC 2H– 

65, Seattle, WA 98124–2207; telephone 

206–544–5000, extension 1; fax 206– 

766–5680; Internet https://

www.myboeingfleet. You may view this 

referenced service information at the 

FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221. It is also available on the Internet 

at http://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2016–0462. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2016– 

0462; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(phone: 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Sean J. Schauer, Aerospace Engineer, 

Systems and Equipment Branch, ANM– 

130S, FAA, Seattle Aircraft Certification 

Office (ACO), 1601 Lind Avenue SW., 

Renton, WA 98057–3356; phone: 425– 

917–6479; fax: 425–917–6590; email: 

sean.schauer@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposal. Send your comments to 

an address listed under the ADDRESSES

section. Include ‘‘Docket No. FAA– 

2016–0462; Directorate Identifier 2015– 

NM–144–AD’’ at the beginning of your 

comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http://

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

We have received a report of damage 

to wire W6128–0506–10. The wire had 

chafed and arced to an adjacent 

hydraulic tube located on the forward 

bulkhead of the MLG wheel well. The 

chafing and electrical arc created a 

small hole in a system B hydraulic tube 

and caused damage to the wire bundle, 

which resulted in a ground fault 

detection on the system A electrical 

motor-driven pump (EMDP). The small 

hole led to a total loss of system B 

hydraulic fluid and the ground fault 

resulted in removal of power from the 

system A EMDP and illumination of the 

system A EMDP low power light. An 

investigation found that there was not 

sufficient separation between the wire 

bundles W6128, W8122, and the 

adjacent hydraulic tube at that location. 

This condition, if not corrected, could 

result in electrical arcing that can cause 


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