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DCMA Administrative Record for FY 2013 Furlough Appeals

TABLE OF CONTENTS

Part 1

Location

(tab)

Agency 

File Part

Date Document Source

1 Part 1 of 5 9/16/2013 DOD Comptroller Hale affidavit Agency

2 8/6/2013 Background Briefing on the Status of the DOD 

Civilian Furlough Planning Efforts in The Pentagon 

Briefing Room

Agency

3 8/6/2013 SECDEF Chuck Hagel’s Message on Reducing 

Civilian Furloughs

Agency

4 7/10/2013 DCMA Furlough Information (Web) Agency

5 7/6/2013 DCMA Furlough Resources and Info Agency

6 6/28/2013 ASD memo “Civilian Furloughs and Total Force 

Management”

Agency

7 5/30/2013 FY 13 Administrative Furlough Requirements

For Deciding Officials

Agency

8 5/23/2013 Additional Guidance for Handling Budgetary 

Uncertainty in FY 2013”

Agency

9 5/21/2013 OASD Supplemental Guidance on LWOP For DOD 

Civilian Employees on Administrative Furlough”

Agency

10 5/14/2013 Department of Defense Background Briefing on 

Civilian Furloughs from the Pentagon

Agency

11 5/14/2013 SECDEF Memo, “Furloughs” Agency

12 5/14/2013 DCMA Director Williams Message on Furloughs Agency 

13 5/6/2013 DCMA Director Williams Message on Furloughs Agency

14 4/4/2013 Ongoing Implementation of the Joint Committee 

Sequestration

Agency

15 3/21/2013 DCMA Director Williams Message on Furloughs Agency

16 3/21/2013 OSD Statement Delay of Implementing Furlough 

Notices

Agency
Personal Background 

UNITED STATES OF AMERICA 

MERIT SYSTEMS PROTECTION BOARD 

DECLAMTION OF ROBERT F. HALE 

I, Robert F. Hale, beving personal knowledge of the facts contained in this declaration 

and being competent to testify to them, hereby state as follows: 

1. I currently serve as the Under Secretary of Defense (Comptroller)/ChiefFinancial 

Officer in the United States Department of Defense ("DoD" or "the Department"). I have held 

this position since February 2009 following my nomination by President Barack Obama. 

confirmation by the United States Senate, and appointment by President Obama. 

2. Prior to my appointment, I served as the Executive Director of the American 

Society of Military Comptrollers (ASMC), the professional association of Defense financial 

managers. As Executive Director, I led the ASMC's certification program (the Certified Defense 

Financial Manager program), and oversaw other training programs, the society's professional 

journal, and the ASMC's National Professional Development Institute, an mmual conference 

attracting more than 3,500 participants. Prior to my ASMC tenure, from 1994 to 200 I, I served 

in the Pentagon as the Assistant Secretary of the Air Force (Financial Management and 

Comptroller), where I was responsible for armual budgets in excess of$70 billion, efforts to 

streamline Air Force financial management, and compliance with the Chief Financial Officers 

Act. In addition, from 1982 to 1994, I headed the National Security Division at the 

Congressional Budget Office, developing quantitative analyses of major defense budget issues 

and testifying frequently before congressional committees. During my career, I was also a 

senior fellow and bead of the acquisition and grants management group at LMI, a consulting finn 

DCMA Administrative Record for FY 2013 Furlough Appeals 001
specializing in service to the Federal government. I also spent 3 years as an active duty officer in 

the U.S. Navy and served as a staff analyst and study director at the Center for Naval Analysis. 

3. I graduated with honors from Stanford University with a Bachelor of Science 

(B.S.) in mathematics and statistics. I also hold a Master's degree in operations research from 

Stanford and a Master of Business Administration (MBA) degree from the George Washington 

University. I am a Certified Defense Financial Manager (CDFM). I am a fellow of the National 

Academy of Public Administration and a past member of the Defense Business Board, a highlevel Pentagon advisory panel. In addition, I am the recipient of the Department of Defense 

Exceptional Public Service Award, the Air Force Distinguished Service Award, and the National 

Defense Medal. 

4. In my current position as Under Secretary of Defense (Comptroller), I am the 

principal advisor to Secretary of Defense Hagel on all budgetary and fiscal matters, including the 

development and execution of DoD's annual budget of more than $500 billion, which pays for 

day-to--day and wartime requirements. As Chief Financial Officer, I also oversee the 

Department's financial policy, financial management systems, and business modernization 

efforts. I served in the same capacity for former Secretaries of Defense Panetta and Gates. 

Qyeniew of Seauestration and Its Impact on the Department of Defense 

5. As the Department's Comptroller, I have advised both Secretary Hagel and 

former Secretary Panetta regarding the Department's reduced funding levels and the impact of 

sequestration on the Department's budget and the various options, including furloughs, for 

addressing such impact. I advised that an administrative furlough was a management tool that 

would result in a predictable, recurring amount of money being available for use by the 

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DCMA Administrative Record for FY 2013 Furlough Appeals 002
Department to contribute to addressing the negative fiscal impacts of sequestration, operating for 

a full-year under a continuing resolution, and increasing war requirements. 

6. By way of background, the Budget Control Act (BCA) of2011, which was 

enacted in August 2011, provided for a projected $1.2 trillion in automatic spending cuts, if 

Congress failed to enact deficit reduction legislation by adopting the recommendations of the 

Joint Select Committee on Deficit Reduction by January 15,2012. The cuts were to be evenly 

divided: (1) over a 9-yearperiod beginning in 2013 and ending in 2021, and (2) between defense 

spending and discretionary domestic spending. Known as sequestration (or sequester). the above 

process of automatic spending cuts was intended as a means of encouraging compromise on 

deficit reduction efforts. When no such compromise was reached, however, the mandatory 

budget cuts (including $109 billion in total cuts for fiscal year 2013) were scheduled to go into 

effect on January 2, 2013. Passage of the American Taxpayer Relief Act on January 2, 2013, 

delayed the mandatory budget cuts until March I, 2013. 

7. As of February 2013, the Department anticipated, absent another postponement or 

a compromise, that by the end of the following month, its share of the sequester for fiscal year 

2013 would result in an approximate $42 billion reduction in the Department's total 

discretionary budgetary topline (later recalculated by the Office of Management and Budget at 

$37 billion) with virtually every budget account in the Department's budget- including wartime 

funding but excluding military personnel accounts - cut by as much as 9 percent. 

8. In addition to sequestration, the Department anticipated further budgetary 

constraints if the funding levels for the remainder of fiscal year 2013 were to stay in effect at the 

then-current funding levels allowed by the continuing resolution (CR). A CR is an 

appropriations act that funds specified Federal agencies or the entire Federal government until a 

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DCMA Administrative Record for FY 2013 Furlough Appeals 003
specified date or for the remainder of the fiscal year when agreement cannot be reached on one 

or more of the regular appropriation acts. Typically it proportionally allocates budget authority 

into accounts based on amounts appropriated in the prior year appropriations acts. Thus, the lack 

of a regular DoD appropriations act for fiscal year 2013 created, among other things, the 

additional constraint of having money in the wrong appropriation accounts. Specifically, under 

the then-existing CR, the Department had too many dollars in the investment accounts and too 

few dollars in the operation and maintenance (O&M) accounts. 

9. Finally, by February 2013 the Department faced costs of wartime operations in excess 

of those that were estimated two years earlier when budgets were prepared. At that point we 

estimated that we could be short as much as $10 billion in wartime operating costs. 

10. These various factors- sequestration, misallocation of funds under the CR., 

unexpectedly high wartime costs- all affected the DoD budget, especially the Operation and 

Maintenance (O&M) portion of the budget, which funds the costs for many of our civilian 

employees. Taken together, these factors left us facing shortfalls of$40 billion or roughly 20 

percent of O&M funding for active forces. 

Initial Considerations Regarding tbe Furlough of Department of Defense Civilian 

Employees 

11. In response to sequestration and other shortfalls, the DoD determined that if it had 

to operate under reduced funding levels for an extended period of time, it would have to consider 

furloughs and other actions to ensure it could execute its core mission and to bring its 

expenditmes down to appropriated levels. As an initial overriding objectiv~. the Department had 

to protect the warfighter. This objective meant, however, that there would be larger and more 

disproportionate cuts in the MiJitary Departments' O&M accounts supporting the base budget for 

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DCMA Administrative Record for FY 2013 Furlough Appeals 004
the active forces and from which most civilian Positions are funded. The need to protect 

warfighter funds added to the Department's O&M problems. 

12. As of late February 2013, the Department had already begun taking many nearterm actions in an attempt to slow spending and avoid more draconian cuts at a later time. Such 

actions included severe cutbacks in travel and training conferences; civilian hiring freezes; 

layoffs of more than 7,500 temporary and tenn employees; sharp cutbacks in facilities 

maintenance (by as much as 90 percent in the remainder of the year); cutbacks in base 

> 

operations; reduction of the number of aircraft carriers, embarked air wings, and accompanying 

defensive and support ships deployed to the Persian Gulf; reductions in the scope of and period 

of perfonnance of contracts; and delay of contracting actions until the next fiscal year. However, 

the Department recognized at that time that if sequestration and the CR were to last throughout 

fiscal year 2013, many more far-reaching changes would be required, including cutbacks and 

delays in virtually every investment program in the Department (some 2,500 of them) and the 

furlough of civilian personnel. 

13. As a result, on February 20, 2013, Secretary of Defense Panetta notified DoD 

civilian employees and the Congress about the potential for such furloughs for up to 22 days 

(176 hours). As I noted that same day in a DoD Press Briefing on "Civilian Furlough Planning 

Efforts," although the Department would strongly prefer not to impose furloughs, the 

Department believed that it had no choice but to do so absent further action by Congress, given 

the severe budget constraints outlined above. As I then stated, 

We're more than 20 percent short in O&M, with 7 months to go, much higher in 

some of the services, particularly the Anny. Civilian personnel make up a 

substantial part of DoD O&M funding. We can't do reductions in force, 

especially at this point in the year. They'd cost us money in this year because of 

unused leave and severance pay, so furloughs are really the only way we have to 

quickly cut civilian personnel funding. 

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DCMA Administrative Record for FY 2013 Furlough Appeals 005
14. During the plaitning for possible furloughs, the Secretary detennined that, 

as a matter of policy, there would be only limited exceptions to any furloughs that were 

imposed. Exceptions would include civilians directly involved in support of wartime 

operations, those needed for protection of life and property, and those involved in a few 

programs of particularly high priority (especially programs directly and significantly 

affecting military readiness). Remaining furloughs would be implemented in a fair and 

even manner across the breadth of the Department (including the Military Departments). 

We estimated that furloughs of22 days would reduce DoD expenditures by $4 to $5 

billion. 

15. On March 21,2013, Congress passed H.R. 933, the "Consolidated and Further 

Continuing Appropriations Act, 2013," (hereafter referred to as "the Act") which, in part, 

provided fiscal year 2013 full-year appropriations through September 30, 2013, for various 

Federal agencies, including the Department of Defense, and which modified some aspects of 

sequestration. Although it retained the overall sequestration spending cuts and their across-theboard nature, and did not provide sufficient funding to cover the OCO shortfalls, it aligned 

funding closer to the fiscal year 2013 budget request for DoD and provided limited transfer 

authority to the Department, which is an authority to move money from one account (e.g., 

Procurement) to another (e.g., O&M) in order to provide some flexibility during budget 

execution. In anticipation of the President's signing Public Law No. 113-6, on March 21,2013, 

the Department delayed issuance of furlough notices to allow the Department to analyze 

carefully the impact of the Act on the Department's resources. After March 26,2013, when 

President Obama signed H.R. 933 into law as Public Law No. 113~6, the Department no longer 

operated under the CR tenns and conditions. This corrected approximately $11 billion of the 

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DCMA Administrative Record for FY 2013 Furlough Appeals 006
shortfall in the Militaiy Departments' base O&M accounts that resulted from operating under the 

CR at the fiscal year 2012 funding levels and authorized a total of$7.5 billion in general and 

special transfer authority under sections 8005 and 9002, respectively. 

16. However, even after enactment of this appropriations legislation, the Department 

still faced an O&M shortfall in excess of $30 billion. In efforts to minimize the adverse effects 

of the sequester, and of the overall O&M shortfall, the Department pursued various courses of 

action. In addition to the short-term actions mentioned above, the Department imposed farreaching cutbacks in training and maintenance. In April the Air Force began shutting down all 

flying at 12 combat-coded fighter and bomber squadrons and curtailed exercises, acts that 

seriously reduced military readiness. By April the Army had already cancelled seven combat 

training center rotations - culminating training events that are necessary to ready units for 

deployment- and five brigade-level exercises. The Department of the Navy also cut back 

steaming days and flying hours across the Navy and Marine Corps. The military services also cut 

back funding for weapons maintenance. In addition, the Department of the Navy delayed 

deployment of the USS TRUMAN carrier strike group to the Persian Gulf, curtailed the sailing 

of the USNS COMFORT to the United States Southern command area of responsibility, and 

cancelled four other ship deployments. 

17. By late April these various actions had reduced the estimated O&M shortfall to 

about $11 billion, mostly in our wartime budget and mostly in the Army. Faced with a limited 

number of options to close this gap, and with wtcertainty about the Department's ability to 

identify and gain Congressional acceptance of further budget cuts, on May 14 the Secretary 

announced his intention to impose furloughs on civilian personnel rather than making even larger 

cuts in training and maintenance that would have further eroded military readiness. Overall, the 

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DCMA Administrative Record for FY 2013 Furlough Appeals 007
furloughs impacted approximately 650,000 (or about 85%) of the Department's approximately 

767,000 civilian employees paid directly by DoD funds. Rather than the 22 days estimated 

earlier, the Secretary reviewed budget projections and decided that furloughs could be limited to 

a maximum of 11 days (88 hours). We estimated that furloughs of 11 days would save DoD 

about $2 billion, avoiding substantial further cuts in training and maintenance. The Department 

began the required "impact and implementation" bargaining with unions and began the process 

of issuing required notifications to employees and furloughs began during the week of July 8. 

Inclusion of Working Capital Fund Employees 

18. On June 21,2013, a bipartisan group of31 Members of Congress sent a letter to 

the Secretary of Defense expressing "concern about the determination that civilian workers at 

enrities funded through Defense Working Capital funds are subject to furlough." Specifically, 

the members inquired as to the legality of furloughing civilians in these funds in light of 

section 129 of title 10 of the United States Code. 

19. On July 5, 2013, acting based on the Advice of the DoD Office of General 

Counsel, I responded on behalf of Secretary Hagel. In my letter, which is attached hereto as 

Attachment l, I noted that the short-term furlough directed by the Department of Defense does 

not contradict any of the various prohibitions which are set forth in section 129. As I further 

explained, to the contrary, 

Section 129 directs the Department to manage our civilian workforce based on 

workload and on the "funds made available to the department for such fiscal 

year." The $37 billion reduction levied on the Department by sequestration is a 

m<\ior cause of these furloughs, and therefore our actions satisfy the requirements 

of section 129. Indeed, section 129 directs the Department to manage our civilian 

workforce based on workload and funding. 

As for your cost concerns, furloughs of all DoD civilians will save about $2 

billion in fiscal year 2013, including more than $500 million associated with 

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DCMA Administrative Record for FY 2013 Furlough Appeals 008
reduced personnel costs in working capital fund activities. These working capital 

fund personnel savings provide us the flexibility to adjust maintenance funding 

downward to meet higher-priority needs. The Air Force, for example. currently 

expects to reduce funded orders in their working capital funds by about $700 

million to meet higher-priority needs while the Army expects to reduce orders by 

$500 million. 

See Attachment 1. 

20. Having imposed furloughs, the Department undertook extensive efforts to identify 

budget changes that would close the remaining gap and, if possible, reduce cutbacks in training 

and impose fewer furlough days. In mid-May the Department prepared and submitted two 

Omnibus reprogramming requests that sought permission from the congressional defense 

committees to move funds totaling about $9.6 billion from lower priority budget lines to higher 

priority budget lines. When the congressional committees did not approve all of the Omnibus 

reprogramming requests, the Department submitted two additional reprogramming actions on 

July 22, 2013, that included about $1 billion of replacement sources for those sources that one or 

more of the committees had denied or deferred. These reprogrammings moved furlough savings 

and funds for lower-priority activities to areas of highest budgetary need. The law limits the 

amount of funds that can be transferred annually under reprogrammings, and these two 

reprogramming actions used aimost all of DoD's transfer authority for FY 20!3. Second, 

pursuant to existing authorities, the Department transferred responsibilities for some specific 

programs and missions from one Department of Defense component to another and used other 

available means to reallocate the financial burden for supporting the warfighter. For example, on 

July IS, 20I3, pursuant to section 16S(c) of title 10 of the United States Code, the Deputy 

Secretary of Defense assigned to the Secretary of the Navy the responsibility for providing up to 

$450 million for support to U.S. Forces in Afghanistan that previously had been the 

responsibility of the Army under the Logistics Civil Augmentation Program (LOGCAP). The 

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DCMA Administrative Record for FY 2013 Furlough Appeals 009
Navy ultimately provided $310 million for the support to U.S. Forces in Afghanistan using the 

Army's LOGCAP contract. On July 15,2013, pursuant to section 257I(b) of title 10 of the 

United States Code, the Deputy Secretary also directed the Director for the Defense Logistics 

Agency to reduce the standard prices for jet and grotu1d fuel procured under the authority of 

section 2208 of title 10 of the United States Code and provided to DoD customers in connection 

with military operations conducted in Afghanistan, retroactive to March 1, 2013 (to coincide 

with the President's sequestration order). This effectively tapped funds av&lable to the Defense 

Logistics Agency to support the warfighting costs that would otherwise have been borne by the 

military departments. 

The Furlough Outcome 

21. Since Congress approved most of the Department's large reprogranuning requests 

that were submitted in mid-May and late-July, giving the Department flexibility to move funds 

across accounts, together with the facts that the Military Departments were aggressive in 

identifYing ways to hold down costs, and that the Department was able to transfer some 

responsibilities for funding specific programs and missions using existing authorities, the 

Department was successful in shifting savings (including furlough savings) to meet its highest 

priority needs. As a result, the Department was able to close the remaining budgetary gap and 

abide by legally binding spending caps. DoD was also able to accomplish two high-priority 

goals: a reduction in furlough days, and modest improvements in training and readiness. 

Specifically, DoD was able to reduce furloughs from a maximum of II days to 6 days (48 hours) 

for most DoD civilian employees. 

I certify under penalty of perjury that the foregoing is true and correct. 

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DCMA Administrative Record for FY 2013 Furlough Appeals 010
Dated: September 16,2013 

Robert F. Hale 

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DCMA Administrative Record for FY 2013 Furlough Appeals 011
COMPTROLLER 

UNDER SECRETARY OF DEFENSE 

1 1 00 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1 100 

The Honorable Derek Kilmer 

U.S. House of Representatives 

Washington, DC 20515 

Dear Congressman Kilmer: 

JUl -5 2013 

Thank you for your letter of June 21,2013 concerning the furlough of working capital 

fund civilians of the Department of Defense (DoD). Secretary of Defense Hagel asked me to 

respond on his behalf. I can say in summary that in FY 2013 DoD faced a budget cut of$37 

billion caused by sequestration, in addition to shortfalls in wartime funding. The Department 

does not want to furlough any of its valued civilian employees but must do so to help meet these 

budgetary shortfalls. Furloughs of civilians at working capital fund activities are legal and result 

in personnel cost savings. 

Secretary Hagel regrets having to furlough any DoD civilian employees, whether they 

serve in the Department's working capital fund activities or elsewhere. Unfortunately, in FY 

2013 DoD faces a large shortfall in our operating budgets both because of sequestration and a 

lack of funds to meet all our wartime operating requirements. The Department has taken many 

steps to close this shortfall including sharp cuts in facilities maintenance, hiring freezes, and 

layoffs of temporary and term employees. DoD has asked Congress to let us "reprogram" or 

move money from our investment accounts into operating accounts to help pay DoD's wartime 

bills, though our Congressional Committees have not yet approved a significant part of that 

request. The Department has also cut back sharply on training and maintenance, actions that 

have led to serious damage to our readiness. Finally, and reluctantly, DoD has imposed 

furloughs for up to 11 days on most of its civilian employees. 

You requested the Department's views on the legality of furloughing civilians in working 

capital fund activities, in particular with respect to section 129 of title 10, United States Code. 

The Department believes short-term furloughs of working capital fimd civilians- who are 

indirectly fimded Govenunent employees -- are permissible under that statute. Indirectly funded 

Government employees may not be subjected to constraints or limitations based on the number 

of such personnel who may be employed on the last day of a fiscal year, and may not be 

managed on the basis of man years, end strength, full-time equivalent positions, or maximwn 

nwnber of employees. They also may not be controlled Wider any policy of a Military 

Department Secretary with respect to civilian manpower resources. A short-term furlough 

directed by the Secretary of Defense does not contradict these prohibitions. Further, Section 129 

directs the Department to manage our civilian workforce based on workload and on the "funds 

made available to the department for such fiscal year". The $37 billion reduction levied on the 

Department by sequestration is a major cause of these furloughs, and therefore our actions satisfy 

the requirements of section 129. Indeed, section 129 directs the Department to manage our 

civilian workforce based on workload and funding. 

DCMA Administrative Record for FY 2013 Furlough Appeals 012
As for your cost concerns, furloughs for all DoD civilians will save about $2 billion in 

FY 2013, including more than $500 million associated with reduced personnel costs in working 

capital fund activities. These working capital fund personnel savings provide us the flexibility to 

adjust maintenance funding downward to meet higher-priority needs. The Air Force, for 

example, currently expects to reduce funded orders in their working capital funds by about $700 

million to meet higher-priority needs while the Army expects to reduce orders by $500 million. 

Because Congress has not yet approved about $2.5 billion of our reprogramming request as of 

the date of this letter, it is unfortunately possible that these maintenance cutbacks may have to be 

increased. 

The Secretary and the Department appreciate and share your concerns for the efficiency 

of our operations, the welfare of our civilian employees, and the impact of furloughs on our 

defense communities. The Department is also seriously concerned with the adverse effects on 

readiness caused by cutbacks in training and maintenance. The best way for Congress to address 

all these concerns to is to pass a balanced deficit reduction plan that the President can sign and 

then repeal sequestration. 

An identical letter is being provided to the other signatories to your letter. 

Sincerely, 

Robert F. Hale 

DCMA Administrative Record for FY 2013 Furlough Appeals 013
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Pl'flenter: Senior Defense Offtclale Atlllllst06,2013 

Background Briefing on the Stllllla of the Detanse Departmanra ClYman FUrlough Planning £frorts In lhe Pentagon Briefing Raom 

SENIOR DEFENSE OFFICIAL: Qkey. Wei~ !Oday, Seaalary Hagel announced -and llhiic you now tiave ~-thai as pert of DOD's Dfforts to 

Improve prcdudMty and ~ess. we'll be reduci'lg the furlough days for OOD's civilian emplcyees from up to 11 days to six day$. Mel for most DOD 

civilian employees, lhatwill mean~ will encr no:d week. 

Last May, when we raluetMtly decided to Impose~ of up to 11 days, we faced a .tlatlallln cxr oparallng budge! at lhat lima of about $11 

billion, pm.;:lpally ourwartkne budget We had anady Imposed tiring fraezell. at facilities' mainl111111110e, and laid ell' temporary employatls, as wem as many 

other actlons. We had sharp!~ cut lrElnJng and maln!erlance, whit1l litis 8dllenaly atracted military madileas. 

So as of three montha ago, furloughs ol11 days, which would havB savad about $.2 billion, ware one o1 the Jlmllld available options lhat we had to 

~ lh9 ramalning budgetary gap v.ilhotrt further<:Uisln training and maJI'IIenlwlca. Sui 8VIIO at the tina he DllllOU"ICed- 8'ld 10 Sacmary Hagel raJuc:tantl)' 

mB<!a tha dedaicn to Impose them. But even as he made thsl antiOtii"ICamenl, tha seaalaly said thai he'd lly to l"llduca the I"I<RI!bar of days If he could do 10 

without further cuts In !raining and malnlenenca • 

Since then. Congrasa h1111lmi1(0"Hef 111081 of ala-ga raprogrammlng that WBI'l!qUaS!ed to li!t I.IS move money Into cur oparaHng acoounta.. The l8fV!c:as 

havaldanlified $00la chwlgas that 181 us redJce costs. And wa'va been aggressive about shifting 1\.nds into lhoaa saMc:e accounta !hat have the most 

problems. . 

As a result, wa"ve been able to aecomplllh two goala, two kay QO.Sia. Wrlve made $00le modest lmproyemen!sln tranlng. The Ar Faroe, for example, 

is ~ egain for most ollts squadron8, 8'ld tha Army is lna"aasing $0018 organizational training. And wa"ve baan able to reduce the number elf furloughed 

-

v.tlila this is Y«Y poai!lve /I8W8 for the department and for our valued civilian workers -and I CliO say parsonally, it's great - I fael groat abaul H -

wa'ra stru facing some ~or chullengea. M~ readiness is dagraciad heading Into 2014. We stJl Mild several monlha and substantial fi.Jncf01g to racovar. And yet. 2014 Is a year lhal's gong to feature groat uncer1alnty, as much as I c:en remember any lima In wor100g with the defense budge~ and ij may faatura 

soma additiooalaurtarity. 

Fac:ad with all of ltlls unoettairiy, wa cannot be IIII"D wtlal wiU hDppeo next year, but Sacratary liagelwallslo assll"fl our civilian employeaslhal we"U 

do eYel)'lhing posslbla to avoid lmpos11g furloughs again ll8ld year. The IMK'rBiar)l and au of us want to thank oor clviia'lworkers ror their padance and 

dedication dumg lh=a extraordlnOOiy Iough tlmaa. OW dadica!ad cMiiao &mployaas make a miJoreonll"itMioo to national &eQ.Irity. And we a~ look forward 

to ona day puWng this d"dfiCUH parlod behind us. 

And with !hal. m stop and wa would ba glad to enlartaln yo<.r questions. 

FACILITATOR: If I ClllOJd and ff ~ c!Gesn1 upsatW"I)'body. wa'va got time to taka 8Y81ybodys quasliorls, I think, jL:Sito make it easy, ifwaall!rt with 

Tony and just want dcwn lha front row and than go 10 the leCOIId row and go down, we o;:eo gat ava')'body's questions. If you dcrlt hav& one or it"8 been 

passed. you JUSI pas.s. okay? 

0: Two questions. One, roughly irs about $1 billion In &BYi'lqs you found. And een you explain how you foW"KI K from tho l'$lrograda of equipment In 

Afghanislan? In English, explain what INI meMo. 

SENIOR DEFENSE OFFICIAL: Wal~ yeah. we went from $2 billion In savings, right, Tooy, to-from flnoughs to about $1 billion. I mean. !hera ora 

lots or ways thai we accomplished thai and the lntJoJng tocreases, but let rna adches lha QU8SiiOn you a.sk 

Thera's a numbor of piacas ol equipment 0"1 Afghanlslan !hal we Identify that ~ 1"101 going to have to move in fi50111'13. It doesn"l mean at aoma 

ful""' poln! soma o1 !hom will not need to coma home, but that ill what led 10 the cootai'lerl from the Army 10 reduce what'S e&llad second d&sllnatloo 

transpot!ation. 

0: Rooghly how much was thai at the billion? 

SENIOR DEFENSE OFFICIAL: That's about a billion dollars that !hey won't need 1n roscal '13 for sarond destination transportation. 

0: Okay, lhanko. 

a: aut they wiH need 111n tis<:al '14? 

SENIOR DEFENSE OFFICIAL: Possibly. I mean. ifs 11 fluid sllualion. And wa11 be maldng 8S$8ssmants of cosl-benati! analyses o1 what to bring homalhars possible. 

0: Sony. IN! wasn1 mY question. 

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SENIOR DEFENSE OFFICIAL: Okay. Thai CCII.Vlts. (laughlor.) No. 

Q: Yeah. Can you - can you jus! give us sort rJ like a COUple of the, like, hiGher PfOflle oc more In Englioh-y k01d of rucplanalion of the reprogramming requests? Ul<.e can we -that we can po;nt to as speeHic things !hat have made this change possible? 

SENIOR DEFENSE OFFICIAL: It totaled $9.6 toUlon It ptlmerily moved money from our acqu;sition accounts, and !hera there ware about :200 

programs that had varying sizes of reductOO.. Soma!imes ccntn>cts had been delay<l<l Some!imes we just made a decision lhiu was lower priorily. And 

~OS! of the money got moved i11o otr operating accoll'l!s, pnncipally the OVEtls&as contingency opemlion fuods Md princip&Jiy lh9 Army, which had the 

b<ggest shortfalls. Doeo that help? 

0: So - so money was reprogrammed from olhBr areas ilto - primarily into ~hose two accounts? And thai was th9 $liVIngs that allowed .. 

SENIOR DEFENSE OFFICIAL: It was p;rt or it I mean. you know, we did a lot of different things. It reminds me of pouring water and mUk in the glass at some lima and when II overflows blaming the milk. I mean, I ean1 pld< one thing. There were a whole sanas of actions ....., took, rnding reduced <XlStt. 

Reprogramming was very Important. And we ara also able to shift around 50mll olherlixlding from the Navy, som111Dwer priolity Navy programs into the 

Army. So It's a bunch of different things. 

And ~ wasn't just furlough days. We biOOQht back same training. 

a: Oh, ol<ay. 

SENIOR DEFENSE OFFICIAL: The Air Fore~!, as I said. is flying all Hs combat -as squadroos again. thoU{tl it will take them months to catch up frOm 

a three-mon!h stand«Jwn - or oot flying, and the Army has mEKia !IOITle sma111oaeases in training of about six brigade combat teams. 

a: trs groat that you're able to do this, but !hera ant going to be some people \100 say, well. you know, they crlad wcH, basically. They rucaggerated 

the axtent of the problem and now they've - yoo know. theYve fixad \!. How 00 yoo respond to that? 

SENIOR DEFENSE OFFICIAL: Welt. I respond by going back lhree months ago and sa)'ing Wll faced enormous uncartaioty. I think as graat as I can remember any time in the defensu bulget And at that point. we were short $11 bittlcn. M05t of it was OCO func:tng. And I got to ten you, you know, ~ was 

one of the things yoo wake up and niltl! and you go, how am I going to make th~ WOO'!<? Or how's the departmeot going to maku this work? 

We d<ln'l know. I mean, Wll know- the reprogramming was there, but irs nol e guarantee. Thooe ere single comnit!eu veto Items. And w11 didn1.oet 

all of it We didn't know about somu of the things like identifying funding Wll wouldn1 neud for trensportation cc•t•. The Air Force found some reductions r. weapons system sustainment We era able. est mentioned, to mDVB 6001e lower priority Navy money to areas we needed a more. 

So there were a whets bunch of things that bo"oke in our favor, but three months ego. with $11 b~lion short, I doo"l think we had a lot of chclice, unless 

we weffl willing to cut more training and maintenance. And we feR that we hadl done that as much as wa shoold. 

But I hear yc:o.r point. And. you know. hindsight- there's a old saying in the budget world that lime is the best budgut analyst If yoo wea longer. you'll 

know mora. And we do know more than wa did three months ego. 

0: Just maybe onu qulck sort of question on the nurnbenl. The buying back the furlough days Is going to cost about -is n $900 mmion -

SENIOR DEFENSE OFFICIAL Yeah. about - a little iltss than $1 biJiion We ware goilg to save about $2 bUJion with 11 days. 1111 bit a little more than $1 billion with six. 

a: So thll<ll"s lila!. And then how much In some of the other changea lor the Air Force combat flying snd the Arnly - 110 what's -can you give ua sort of a brood total of tho amount savings? 

SENIOR DEFENSE OFFICIAL: You know, it's prcbebly another l>alf-bltrJcn or !10 lor tralnlng. around $400 million in the Air Force, and l don1 have a 

precisa numbur for the Atmy, but- but probably around $1 bimon in buying back fu1ough days and then some - perllaps $500 million of add&d ccais 

associated with buying back some training. 

0: So - okay. And then ovemll. then, lhars lika $1.5 b~lion or somalh~ that in recent wee~<s you've been able to find. And was some of that 

identified, would you ~~By, as a raw~ cf. you know, all the services looking lor m-oney or everyone look!ng lor money? And have you kind of come -do you 

thillr. )'llu're nearing kind ot the and of all these liltlu typea of savings you can fnd? Or ls this sometlllng you can do again aod again and again, as nruct year 

dawns? 

SENIOR DEFENSE OFFICIAl: So, remember, we statted $11 billion in the hole three months ago. We had to find thut. plus a l~tle more to allow us to 

make somu of these restorels. And as rve said. ~ cama through a variuly offac!OI"S, reprogramming, identifying some costs we could 11ilher put off or, in SQme 

cases. 00 without, put oflln the case of a second deslination transportation, llr\d some aggressive movilg money around of some Marine Corps money. lor 

rucample. into the Almy. 

All of tho» got us to that point Is thura more? Wet~ probably e liUie bit, but I suspect that we'va largely- you know. we"ve largely com11lo the end of 

the ropu. I mean, sometimes toward the end of tOO year, there w.iU a~ays be some la~oul. but wa feel at this point we're conr.dent we can gel dcrwn to six, but 

six is where irs going to stop. 

0: Wall, I guess. just to make my- I wll'llto be clear. As you look ahead to next year, I mean, with that whole $54 bitUon. have you sort of done all 

the tittle whining )'OU can? Or can you just dolt all ovar a~? 

SENIOR DEFENSE OFFICIAL Oh. there will be-there's atweys- ~ probably dousn'l soond good PnaudibleJ to ~~BY wiggling, but there era always 

chan""s that go on. And, yes, !hera w~t be again next year, oopecielty when yoUre in lhB middle of a war. I mean, we put together tha budget we're going to 

star1 executing on October 1st mora than a year ago. And then there w~l -there era uncartslntie!l and there will be changes. 

And, of course. looking IOIWM:l to ne>rt year, we don't reatly have any idea right 0011 whafs going to be appropriated. l meen, ff we - ff we go with the 

sequester-level capa, we"m going to be down $52 blCion from the pmsldoors requesl 

a: Two kinds of gl"lll"K.IIar-level questionS. fll"$\ for defenn official lwei. Doos this mean that DODEA schools are not going to be furloughed? 

SENIOR DEFENSE OFFICIAL So DOOEA schools have several different categorius. They have t2-monlh employees that will be furloughed. And 

then hod lhe tO-month umplcyees. those that am the educatots and the support staff. So they were to be furloughed five days altha beginning of the next 

school year, which would have sun been in fiscal '13. 

W... have decided to exempt them from fu'lough, and so !heir school years. wm •tM on time, and then the teachers and tile suppc~r1 staff that wera 

iniUally g.Sng to be lurloulfled are now not go"ng to be !Woug-.ed 

a' Okay. And -thanks. The se<Xlnd question, delern;e otf!Cial one, you menliCinad somehow lha Navy had given some money to the Almy or - does 

that- does that happen nonnally? And how- I mean, irs nlcu of them. How did they do it? 

SENIOR DEFENSE OFFICIAL: 'Nell, in that case. they pllid a bill thsllhe)l had the legal authority to pay, one of the OCO bills for lOGCAP. l woulc'n' 

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say its routine. but these are 1101 routna limes. And we've had to look 110"0.!.11 1M department and try to malce some $hills il order to get ttrougtl this year. 

Q: How much WBII H? 

SENIOR DEFENSE OFFICIAL: • was about $300 mil/On, if I recaft'. 

Q: So they just wrote a cheek rot the Army, soSENIOR DEFENSE OFFICIAL: Wall, they jus! paid a bllllhat they had the legal authority lo pay, or the ~~~directed them to pay a billlhey had 

I&Qal authority to pay. 

Q: O!cay. 

0: MY ~flit question for senior dsrense clllcial ilwnber lwg. Given !hat we're just less !han two months ooA from fiscal '14, WI\IJl contingency piMs are you mekhg In Ierma of clvflan worl<force, e/thw fUrlough, reductions In fOR;:e, 91 cetera. for f.scal '14 If aequestnltlon does OQCU(1 

SENIOR DEFENSE OFFICIAL: Well, 1-yoolo'lcMr, rm goilg to ra~81'11te what -wha! defense oll"ocial m.mbetone said, that these a-e hugely 

I..I10J!tah tMnes. 1 mean, the de,Dmtmant's 1101 gone lh'ough this before .. AOO I also reiterate what Seae!ary Hagel•ays. 111111 we will try lo avoid li.noughs as 

m~aswe possiblycannexl year, 

But we haven't receilled our budgeL Wa don't know what wa face going ~o '14. And we're going to haw! to make piDml based vpon that oomber. But 

riglll. na.v. we're really going to WCI!Ic to avolO' a_ f<rlouglt 

0: And h<:lw about a redUction In Ioree? 

SENIOR DEFENSE OFFICIAL: I think evety -you know, everythk'lg Is on lhe table. And !hat can pccentially be on the table, should It be needed. 

Andteductlon n force Is not SOiflOihlng !hal we 11m on and turn Dff. H can -we'Ve dQoe reduclicrn In forces \rihln lha hlsl year, and It has notlllng to do wtth 

tequeslnlllon. H hu somelhng to do wilh theping lhe Ioree u ~ Is n&eded. So it's potenU&IIy not as widespread, but~ Is dooe as 11 shap'rlg tool. 

O: Mil no ptennng o.nc~erwey at lhls paint? 

SENIOR OEFE~SE OFFICIAL: Righi now, everything Is an the lebls. 

Q; Okay. Question for 800ior defense of!icial ru:J1ber one. Once Wfire peat lisc:al'13, Is there going to be -do you have any plan on producing a1y 

sort cf -1111y 11flar-ect1on report on how ~ achlavad !he $37 billion cd.7 Bacause from the outside, fi'lridy, it looks rather m)'Sfarious. 

SENIOR DEFENSE OFFICIAL: Wei~ I mea1, we will, In the sen$8 lhat you'll-~~ budget next yesrthal has an eclual i'l it And irs 11 good point lhat 

we maybe fiB9d to be helpful. About 20- I can give you some rough Ideas- about S20 billion <::ame out of the "fl''nnlons and malnlananca acoounls. The 

olhar$17 blllioncameoulolour i'lvutmentecc;ounts. I'm talked sial about !hem, bu!Wtuallyeveryoneofour tneftemawasad a percanl81d]ustlhe 

whol& array of changes !hat got made to aocommodate those, Bul I heir you-;, our spare tine, we prttlabiy owe you aoms help to understand how we got 

·~ a: so youwll provideSENIOR DEFENSE OFFICIAL: Let me-let me taka lhat one. rm concemed -I mlla'1, we're teeing, furloughs or OOl an enormous workload as we try to get e ,_ budgot for '14 poCentldy. I hope not, 1M poten~ally, and 1111 weU aa budgeta f<K !he out.years. 

a: 1 guess my onty quullon would be, 110 these furloughs end !hls week: or naxl week? rn have toSENIOR DEFENSE OFFICIAL: For mOll! employees, theyWdlendnext week. 

Q: Do you have a n.mber? 

SENIOR DEFENSE OFFICIAL: H malty depends upon -If the kldMdualreceivlld theitftrlgugh leiter on the week cf a July, and If they pertlcipatlld in 

the lu:lough one dey a week, that would take them air days, whil::h would ~ '18 IKM.n, to the 17th of~ And so that'11he cak:ulation. So mO&t Dllhe 

1orc:e thai WliS furloughed w1111l'urlollohed in !hat mamll', 

a: okay. 

Q: Senior ofl1c:lal two, rm sony, can l11!1\ about schools again? 

SENIOR DEFENSE OFFICIAL: Yes. 

0: To go llvcugh -ere you saying no -no Ml<lughs now for any school per&Ofl'l9l? Vot!sl'sthe llituation? 

SENIOR DEFENSE OFFICIAL: So there was a g<~~~.~p of i'ldiv!duats. educators and support staff !hat were goi'lg to be furloughed lor fills furblgh 

daya B! Ilia b&glnni'lg of the na)d sdlool year, which IO<!Uiclstart at lha end of AugJSI2013. So lhay were going lo have five furlough days between Augus! 

and Saplsmber of2013. which WDUid be the '13-'14 school year. These lodividue!s Wit not recel'le IWly fur1cugh days. The &chool year wiU start and and 

without furlough days. 

0: Okay. 

SENIOR OEFENSE OFFICIAL: Well, let me say, tho school year for fiscal year '13 will not have any IUrfcugh d~ We ere really trying not to flxtoug/1 

in fiscal Y1J&' '14, but we havanl raeeived a bu(!get yet 

o: ntpess. 

0: First of au, 1 really like the milk-watarthilg. (laughter.] I wish k was en the reeord. f4llyway, my real que$1icn, t mey hava missed it at the top, but 

the $300 mlllon transfer or the bill thatlha Navy paid, arelhere olhar bills fike that, lhat either the Navy cr anolhar S«Vica paid, aey, on behalf of the Army? Or ... 

SENIOR DEFENSE OFFICIAL: No other satvices. We ware eble to transfer some money -fool fUnds by lclwaring fuel prices thai would have come OU1 of !he worldng cap~al fund, but I don't beUeve there are any other lllrVice bills. 

a: So only that one- $300 m~lion bNI? 

SENIOR DEFENSE OFFICIAL: H's sctuatty lha Marine Corps, but in lha J)e.partment cl lhe Navy, it's Marine C<lrp.'l. 

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· Defense.gov News Transcript: Background Briefing on the Status of the Defense Depart ... Page 4 of6 

Q: Okay. 

0: For daten.sa official ,...,.,ber one, you !elk about unce11ainly in tlscal '14. How helpful would it 00 to know what post-2014 troop m.mbers SfB in 

Af9'laolslal for )'DU 1M'S? 

SENIOR DEFENSE OFFICIAL: Well, I think !hal one - !hare am bigger issues there lhan budgaL Cer!ainly at some point we're going to need to know 

thai in ardor lo do a foscal '1S budge~ but Wll're 110! a - llhlnk the timing ot !hoM depends more- or <s more impottant than we know It in order to -to execute a respoosibkl c!rawdown than ~ Is lor !he budget. 

0: Quesllon for senior defense offldal one. You mentioned some ol the money was moved using legal authorities given lo DOD to shift funds around. 

Thera's been some criticism that the Pentagon hasn't fully laken advantage of some of theS&- these atilltorilies while, on lhe same hand, arguing for more 

llexililily in spending of these funds. I guess what I wanted 10 ask you Is, is this move sort of a precursor to using more of lhasa alllhonlies as - more of 

these aulhorilles even more, as the number aunch ~ind of contlnoas? 

SENIOR DEFENSE OFFICIAL: WeU, our auti\Qitles are praltyllmited, frrily, and nonnally we doo't do shifts of !hal sort, because the oilier serv>ces 

plamed on lhall\.nding and how to usa n, but lhasa wara extmordinaly time&. If we face extmordinary tlmas again next year, ~·11 probably look at everything 

we can tagaUy do. 

1 realize the tsSIJe of flexibility has been raised, but rm trying to think of spear-.e eoncams that !lava bean ra-..ed that we 'IW!ran"t using flexib~"Y that we 

Q; Did you think that- yooh. there were- there were some areas, patticule~y in - llhlnk ~was 01 O&M that -that Congress had legislated and that 

DOD halt>"! fuUy exercised 

SENIOR DEFENSE OFFICIAL: Yeah, I mean. I think we did. We got a budget from them in Mardi, which helpod a lot, because we got the money in 

the light pots. but ij didn't add any money, but ~ wculd - th~ would ha¥9 been much worse without thaL so that was helpful. W.. certainly made fuU use of 

'"" 

So t"m not sure- not sure of the spocif!Cll. but, you know, we will look again nBlCt year. Let's hope next year Is more stable. but n irs not. then we witt 

look at everything ~ can do to try to carry out what was our goal throoghout this, and that is to minimize the adverse etrects on our mtssO:ln. Everything we 

did was with that In mind, including the modest buybacks of training and the - and the raduc!O:lns in ft.Wiough days. 

Q: Are there any others that ara being I!Xe<npted because of this change? 

SENIOR DEFENSE OFFICIAL: No, juslthe teachers. well the teacher$ and support staff 

0: Right. 

a: One minor one. Has anybodySENIOR DEFENSE OFFICIAL: l dorlt know how many teachers, t can take ~ for the reconi 

SENIOR DEFENSE OFFICIAl: Let me get back to you with the numbet" about It 

FACIUTATOR Accupie more minutes. 

0: I know some people OOJid take/ike a week cr take all - has anyone taken mora sUe days? 

SENIOR DEFENSE OFFICIAL: There is po1ential 

SENIOR DEFENSE OFFICIAL: We don't know. 

SENIOR DEFENSE OFFICIAL: Thall don1 know. 

Q: Cooldbe? 

SENIOR DEFENSE OFFICIAL: Pardon me? 

Q: That could ha•e happened. ff you had the authority to ... 

SENIOR DEFENSE .OFFICIAL: It couldha•ehappened, yes. 

SENIOR DEFENSE OFFICIAL: rm pleased to say wa didn"t manage this from hera. 

0: No. but I wouid assume lhay would just get their money back. 

SENIOR DEFENSE OFFICIAL: Well, we're working 1l1foogh that issue. 

SENIOR DEFENSE OFFICIAL: rm SU"aw!l'll hear about il 

Q: Sure. {laughter.) 

0: How would you eharadllril:a tha Impact of the furloughs <>n the department? Do you see" any laoting repereuulcns? 

SENIOR DEFENSE OFFICIAL: You want to go ahead and !"II follow? 

SENIOR DEFENSE OFFICIAL: I woold tell you that this was one of the hardest things we e.erl\ad to do. And - and I can't emphas-Ize enough the 

uncerteinty of the world that we're Iring In right now. And I a!so can't emphasize enough the qual<ty and the ;>fofeas;,ausm and the dedication Qf our civilian 

employees. 1 meM. they -they really am the glue that holds us tOgether. I mean. they're hera all the time doing their Jab. 

So their morale has drastlcally been atrected. And not only tha~ the producUvily of the WOik that theY do has been affected. All acrosa the board- and 

if you were hera lor the fnt ~me we had a pross conference, what I said was that 80 - about 85 percent of our eiviian wor100rce works outside of this natklnal 

capital region. So ~·s not just a Washington. D.C., phenomenon. Thia Is a worldwide phenomeoon. hew it el!eds the total Department of Defunse, whether 

it"& in ovr depots or whetl1er trs in shipbuilding or whether irs people that pmcess promotions or people who WOik ill our hospitals. It is across the bQard. 

And it'• boon devastaling lor DUf civilian empTO)'e<.ls. end It's been very har-d lor the servlcamember who relies on ff'IB days a week, of work from these 

people. 

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SENIOR DEFENSE OFFICIAL: Let me give you a couple of examples. II slowed wak at depots, which is going 10 mesn w~va gat mah!sneoce that 

dlait get acccmpJiehecf, -going 10 gel pushed ctr until n8Jd year. rm worried about our contracting ol!iciall having enough tlma to ge1 all those func;!s obligated· 

• I fhink they will, and we wiJI -we will!<' back to normal overtime ntes Bflar th91ur1ough is over. It has eert8lnly adver.ely afleeted llnancial management and how many people Sllln~ gelling the rapcrto done on time. We've m!ued some deadlines at DFAS becBusa we cfocln't have the paop/8 to do 1t. o.....- call 

carter tmes are growing In DFAS. v.tlen people ask llboullhalr pay, they're having to wa~ Ianger. AU cllhese thhgs, I think, ail tangible signs lhsl it has 

reciJced OU" productivity, llhlnk. signifk:anb'y. 

FACILITATOR: Tlmeforonemore ••• 

0: The billion dollars -the buD< of the furlough buyback was from the Nmy'1 deciSion on the second destination lrMsportation? 

SENIOR DEFENSE OFFICIAL; You don1lika my wa!er and mine, do yoo? I mean, look al ft lhat way, bu! there are a Whole bl.nch of olher things lha1 

cortribule lo the p/11$ $Ide and a bundl to !he mioos si:le, as wall. It's hatd to pick Dna and SB)IIhat lhars what caused It 

0: You said a bil~on dclllar$? 

SENIOR DEFENSE OFFICIAL: Yes, I mean, lhey'fe about the oama siza, sa I suppose, but- but, Tony, we made a let ol-found a numbet of ways 

10 AVil funds and a runber ofwaya we wanled lo apend money. And k's hard forma to pick ona 8lld malch it up. 

0: 111a1 was ona or !he blgoesl cat&Qol1es, lhcugh. Is thai COI'I'OCI? 

SENIOR OEFENSE OFFICIAL; II waa a algnilicanl eav!ngs. 

0: Thank you. 

SENIOR OEFENSE OFFICIAL; The reprogram was probably !he bfiXIG&t alngle lhlng. 

FACILITATOR: Waif, thank you, again, for shorl notica and the Interest n lhls topic, tu we have to gal alleast ona of our offlcials off to a meeting right now. So thankl again. If you got additional qvestlona, you should have lhG aacratwy'a atalameot You have !he m8100 going out to lha department And 

wa'rehappylo taka quasllons In lhe press ollice. 

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http://www.defense.gov/transcripts/transcript.aspx?transcriptid=5283 8/14/2013 

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Secretary Of Deranse Chuck Hagal'a Mes~ on Reducing Clvlll•n Fui'IDUghs 

No. 565-13 

August 06, 2013 

llitlon I SMOU'lCIId my dec:isk>o on May 14 to impose fu~oughs oh.p 10 11 days on civilian employeea to help elcsa the budget gap caused by 

sequestrllllon, I alSO SBid we wou~ do everythi-og possllle to lind the money to reduce furklugh days for our people. Wth the end of the fiscal year next 

month, m1109gers acros.s the DoD are making f~nal decisions nacesaary to ensure we make lhe $37 billion spending Cltls mandated by sequslrallon, while 

also dolng evelylhlng possible to lim~ damage to flililsry readlness and our WO/IdorQI. We are joined In this rega-d by manegers in noo..:lefensa agencies 

who are also working to aceommodale sequestm!lon CUis while minimizing mluion damage. As part of that elfort at lhe D<:lpenment ll( Defense, ram 

aniiO\.O"ICing today that, thanks lo the DoD's effort• to Identify aavings and help from Congress, we wiU reduce the lo!al numbers of furlough days fer DoD 

civilian employees from 11 to sbc. 

'Mlen sequaslralioo look affect en March 1, DoD laced shortfal~ ol more th~ $30 bnlioo in its budget lor day-I<Hiay openllhg costs beceusa of 

sequeslralioll and problems with wartime funding. At thai point we faced the WKY real pcsslb~ity ol unpaid fu1oughs for c:Miien employees ol up lo 22 day~-

As early as Jaruary, DoD leaders began makilg p.WnfuJ and far ""'d:llng changes lo close th~ shortfall'. civilian hhingfl'e9.1:es, layoff$ of lempormy 

workers, signifiCB!l! culs in facilities malnlei\Snc:e, and mom. We elso shio:ply cut tminlng and malnlenance. The Ai' Foree Slopped flying in many squadroos, 

the NS\Iy kept ships In port, and the Army cenc:elled tralni-og 8'/MIS. These actions have seriously reduced multary readiness. 

By early May, even slle.r taking lhasa Slep$. we sl~l faced day-to-day budgatary mortfalls o1 $11 b<micn. At !hat point I decided that Cltttlng any deeper 

into traln"ll19 and maintenance wouid jeopWizu ou- core reac~;,au mission and natklnal security, which is why 1 Mnounc:ecf furloughs of 11 days. 

Hoping to be able lo redUCa furloughs, we submitted a large reprogr..,rning proposello Congress in May, asking !ham to let us move funds from 

acquisitial accounts into day-1<>--da)t operaUng accounts. Congress approved most ll( this requesl in lela July, and we are working with them to meal 

remaining IIBedS. We are also expeflancing less lhsn ~~>pectad cosls in some areas, such as transportaUon ct equipment out of Afl1umlstan. lr'oh!!r-e 

nacessmy, we have talcan aggmssi'la ectial to IrMa!« funds among setVic:as and ageo:::ies. And the l'urlcoctos have saved us money, 

As arasult of these management in~ialives, reduced costs, and reprogramming from Congress, we have detemlinad lhel we can make some 

improvements in training and readineu end stin meat !he saquestm!lon cuto_ The Ait Fotca has beg\.ollly!ng again In key squadrons, the lvmy has Increased 

fUnding for organizational training al oolacted un~s. anct the Navy has raalarted some maintenance anct ordered deployment• that Olherwloo wou1c:1 not have happened. 'Mli!e we are stm depending en furlough saW!gs, we wU! be able to make o.p our bu:!getary shortfall In this fiscal year with fewer furlough days than 

ln~ially announced 

This has be9n one of the mOll! votati~ and uncertain bu:!get cydes the Department of Defenoo has ever experienc:ecf. Our fiscal plaming haa been 

conducted under a cloud of uncarteintywlth the impos~OO of Hquestration and changing rules as Congress made adjUSiments to our spending authorities. 

All we look ahead to f<Seal year 2014, less than two months away, the Department of Defense s~ll faces major fiscal challangas. Jf Congress doos not change the Budget Conllol Act, DoD wiU be foreed lo Cit! an add~k>nal $52 biUion in FY 2014, startng en Oclcllar 1. ThO. raprannla 40 peiC:en\ mora than this 

yea~s sequestar-mandaled cuts of $37 bi!rlcn. Facing this uncertainty, I cannot be SUIB what will happen OOXI year, 1M I wanllo assure our civilian employees 

lhal we wiU do everylhlng possible 10 avoid mora furloughs. 

1 want to thank our cMf1all workEns lor their patience and dedication dlli"hg lhasa extraordinarily tough fimes; and lor their oon!O-luad seiYice and 

devotion to our department end our country. I know hON d'dfiCUH thio has been for all of you and your famUies, Your C<>ntribuliorl to national aec:urily Is 

invaluable, and I fool< forward to one day pv!Ung this dfficuH perifld behlrid us. Thank you and God Bleu you and your families. 

Secretary Hagers Memorandum can be viewed at hH?•ffw:ml.d!lle!>AA-$WifhcmeAAll!ures/2013/docs.P0&!613 Furloll9h Reciuc!lons 00! 

--------------------~'"::""=:·=·''~'"'~" -~-·------ --

Main Menu 

http://www.defense.gov/releases/release.aspx?releaseid=I6191 R/14/?01 1 

DCMA Administrative Record for FY 2013 Furlough Appeals 019
DCMA Furlough Information Page I of2 

OCMA Fur1ough Guidance 

Welcome to the DCMA Furlough Guidance Webpage. 

DCMA has established this Furlough Pla110lng web page to ensure all OCMA employees have access to information m!ated to lhB 2013 Administrative Fur1ough. This web 

page Is dedi;:ated to answering your qu651Jons and addressing your concerns. 

OCMA has been direc!ed to conduct a furlough. We have provided Information and links on this web page that may answer your questions as "you plan for your furlough. We 

wHI conllnueto update this page as lnlormatlon is rncelved. For any questions !hat o;:annot be answered via lhBse sites, you are encouraged to send your questions to 

furlough@dcma.mil. 

The Defense Department has revised from 14 to 11 the numberoldaya clvman employees are to be fur1oughed this year due 10 the budget sequSBter. Employees will be 

discontinuously furloughed no earlier than July 8, 2013 through the end oflhe fiscal year. 

Important New lnfonnallon: 

Assistant Secretary of Defense, Readiness and Force Management, F. Vollrath, provided in a memorandum dated June 28, 2013, "On furlough days, furloughed civilians are 

no1aulhorized to perform official duties at their permanent or temporary duty station. at home, or at an allamate site, including communicating by BlackBeny oro !her mobile 

device. In ali:Htion, civilian personnel subject to furloi.!Qh shall not be required to worl<. beyond their regu~rly scheduled and compansated times on non· furlough days to malle 

up lor wor11. lost as a result of furlough. nor shall employees in peY status perform wor11. beyond their regularly scheduled hore to compensate lor worldoadlprt>duclivlly loss of 

!hooo who are in tur1oi.!Qh smrus.· The memorandum Is posted below under"Additlonal Documenmfion." 

It is important to note that DCMA continues to maintain flexible and compressed worl<.schedules during the 2013 furlough period. therefore furlough times may be calculated 

in terms of hours rather than days. In lhese cases, the prwfslon above refere to furlough houre. 

Director's MesBBges: 

DCMA Speelflc Information: 

DCMA employees have askBd the questions provided In the attached··simi~rquastrons have been grouped together. Additional questions and answers will be posted delly.j 

DCMA frequently Asked Questions 122-May-13) 

Process Covering Potential for Administrat<ve Furlough for FY 2013 !Between DCMA & AFGEl 

Amendment (30-May-13) 

Employee Resoun:es Related to Furlough: NEW I 

2013 Furlough ReSOUI'CGS 

Supporting Documentation: 

ASD Memo Total Force Manaaement and Budoetarv U/\Cer1Sinlv !21-Feb-13) 

SECDEF Memo PreparaUons for Potential Seguestratlon on March 1 and Furlough Ngtificatlons (20-Feb-131 

Additional Documents: 

http://www .dcma.mil/furlough/ 

r Bargaining Obligations, (5·Mar-13) 

Program- Administrative Furlough, 23-May-13) 

7110/2013 

DCMA Administrative Record for FY 2013 Furlough Appeals 020
DCMA Furlough Information 

OPM Gulda~e- Addendum 7 (TravelTime as Hoors of Work. 10-Jun-13) 

Additional Links: 

http://www.dcma.mil/furlough/ 

Page2 of2 

7110/2013 

DCMA Administrative Record for FY 2013 Furlough Appeals 021
DEFENSE CONTRACT MANAGEMENT AGENcY 

2013 Furlough Resources and Information 

With Department of Defense furloughs scheduled to begin on Monday, July 8, 2013, DCMA is 

providing resource information to help everyone navigate effectively through this difficult 

period. 

1 Furlough Website and E-mail Address 

Furlough Website: Employees can access extensive information about the furlough to include 

OPM Guidance, furlough overview, guides on budgeting, TSP Furlough Fact Sheet, overall 

guidance and policy, and much, much more at www.dcma.mil/furlough. 

Furlough E-mail Address: Email furlough@dcma.mil to get answers to your questions. 

EAP Services I 

The Employee Assistance Program (EAP) is available 24/7 to assist you as you cope with the 

effects oftbe furlough. Calll-800-222-0364 (TTY: 1-888-262-7848) or go online at 

WW'N.worklife4you.com for assistance. International callers should call314-387-4701 and ask 

the operator to reverse the charges. For international TTY callers, please have the relay operator 

make the initial call because collect calls can only be authorized by voice. Once authorized, the 

TTY machine may be used. New website users should use registration code "dcma" to register. 

PERSONALIZED REFERRALS: Specialists are accessible 24/7 to help you find a variety of 

resources including legal and financial support, alternate child and senior care options that meet 

your budget, community services, assistance programs (food, utilities, transportation, etc.), 

housing options, and much more. 

ONLINE TOOLS: Access tips, checklists, articles, podcasts, webinars, calculators, and other 

resources on topics including guidance for hard times, budgeting, saving, credit and debt, 

mortgages/foreclosure, staying healthy, coping with stress, conquering substance abuse, 

understanding child and senior care options, and more. 

DCMA Administrative Record for FY 2013 Furlough Appeals 022
FREE EDUCATIONAL GUIDES: Get helpful guides including Building a Better Credit 

Report, Choosing and Using Credit Cards, Finding a Lawyer That is Right for You, and more. 

LIVE INTERACTIVE WEBINARS: Interact with the presenter to ask questions and clarifY 

information. You can attend from anywhere-all you need is a computer and an internet 

connection. Please visit https://dcma.motivation.cc to register. 

• July 10,2013: "Emergency Preparedness" 12:00-1:00 p.m. EDT• 

• July 24,2013: "Planrdng, Prioritizing, & Organizing Your Time" 12:00-1:00 p.m. EDT' 

• August 7, 2013: "Smart Shopping" 2:00-3:00 p.m. EDT* 

• August 21,2013: "Overcoming Debt" 12:00-1:00 p.m. EDT' 

*These are live webinars, so please remember to adjust the start time for your time zone. 

View past webinars, including "Budgeting Basics," "Stress Management," and other previously 

recorded webinars, at www.worklife4you.com. Just click the On Demand Library module on the 

right hand side of the home page to access webinars on a variety of topics. 

Please note that the webinars carmot be currently accessed using DCMA computers due to issues 

with the webhost. The technology needed to allow access has been procured and is slated to be 

deployed by September 2013. Until then, they can be accessed at any time using a non-DCMA 

computer. 

Other Resources 

CFC-Supported Charities 

With the furlough fast approaching, the loss of income may put some employees in a particularly 

tough spot economically, in the short-term. Reach out to the Combined Federal Campaign 

(CFC) programs to help you get through it. They have a wide-variety of programs that can assist 

with finding community services such as food assistance, shelter, non-emergency medical care, 

and prescription discounts; scholarships and loans; substance abuse assistance; adult and child 

care~ and more. Visit www.opm.gov/combined-federal-campaignl and click "Finding Local 

Campaigns" to discover resources in your area. 

United Way 

Over 300 United Ways and their local community partners are engaged in activities and 

initiatives to help build the fmancial stability of families in their communities. Visit their 

. website at www.unitedway.org for information on the education, income, and health resources 

they offer. 

DCMA Administrative Record for FY 2013 Furlough Appeals 023
DCMA Specific Frequently Asked Questions 

Pay/Leave/Schedules 

I. Q. Does DCMA plan to shut down operations one day a week and remain open daily 

with employees opting for Fridays or Mondays off? 

A. Currently, there is no overall plan to shut down operations one day a week. 

Decisions regarding furlough days will be made to minimize adverse impact to the 

mission and ensure continuity of operations and may vary, but as a general rule will 

be scheduled for 8 hours per week. 

2. Q. Can an employee elect to take the II furlough days consecutively? 

A. Currently, the guidance from the Department of Defense requires employees to be 

furloughed on discontinuous (intennittent) days for no more than 16 hours per pay 

period. 

3. Q. Will employees be removed from Alternate Work Schedules and moved to 8 

hour work days during the furlough? 

A. Employees will not automatically be removed from alternate work schedules; 

however, some work schedules may be impacted due to pressing mission needs. 

4. Q. How will furlough affect employees working part time? 

A. Furlough time off for part-time employees will be prorated based on the 

employee's work schedule. For further guidance, please reference OPM's F AQ's 

(Section L/Furlough Time Oft). 

https :1/swww .dcma.mil/furlough/files/OPM Adminstrative Furlough Guidance. pdf 

5. Q. Will the telework benefit be available for employees during the furlough? 

A. Employees will not automatically be removed from telework; however some 

telework arrangements may be impacted due to pressing mission needs. 

6. Q. Will use or lose be affected by the furlough? 

A. Employees should schedule use or lose leave in accordance with established 

procedures to avoid forfeiture at the end of the leave year. 

7. Q. How does an employee stop their contribution to the Combined Federal 

Campaign (CFC)? 

DCMA Administrative Record for FY 2013 Furlough Appeals 024
A. The employee must contact their local Customer Service Representative or make 

your request via the centralized mailbox (FinancialLiaisonCenter.Inbox@dcma.mil) 

to place a stop on funds being deducted from their Leave and Earning Statements 

(LES) for the purpose ofCFC. 

8. Q. Can an employee request to be furloughed as a way of reducing the hours of 

furlough required of other employees? 

A. An employee cannot request to be furloughed. A furlough is an agency adverse 

action that places an employee in a temporary non-duty, non-pay status because of 

lack of work or funds, or other non-disciplinary reasons. For full guidance please see: 

http://www.opm.gov/policy-data-oversight/pay-leave/fw·Iough-guidance/guidancefor-administrative-furloughs.pdf 

9. Q. How will an employee on FMLA utilizing sick leave for 3 months be affected by 

sequestration? 

A. Agencies have discretion in determining whether to furlough employees who are in 

L WOP status, since both furloughs and LWOP are periods of non-pay status. 

Employees may already be scheduled for L WOP for a variety of reasons and for 

various lengths oftime on either a continuous or discontinuous basis. Agencies are 

responsible for determining (1) whether employees already scheduled for 

L WOP during a period when administrative furloughs are being conducted will be 

subject to furlough and (2) the hours of furlough required of such employees. For 

additional guidance on this topic, please see: 

https://swww.dcma.miVfurlough/files/addendum4.pdf 

10. Q. Will there be provisions for the continued incurrence of Travel Comp Time 

(earned) during the furlough? 

A. Employee entitlements to earn compensatory time for travel. will not be affected by 

furlough. 

11. Q. Will civilian employees be able to schedule their furlough hours in blocks when 

they are performing reserve duty? For example, if an employee takes two weeks of 

leave without pay during the furlough period, will all 80 hours ofLWOP is 

applicable to the 176 hours each employee will be required to take as furlough? 

A. Employees who are in L WOP status during an administrative furlough will receive 

credit for their time in that status towards any remaining scheduled furlough hours. 

DCMA Administrative Record for FY 2013 Furlough Appeals 025
12. Q. Can agencies furlough employees who are on approved leave without pay 

(L WOP) during a time when administrative furloughs are being conducted for other 

employees? 

A. Employees who are in L WOP status during an administrative furlough will receive 

credit for their time in that status towards any remaining scheduled furlough hours. 

• During an administrative furlough, employees issued furlough notices will be 

subject to scheduled furlough time until an approved period ofLWOP begins. 

• Once the previous furlough hours served plus LWOP hours taken during an 

administrative furlough equals the number of furlough hours required during 

the administrative furlough, no additional furlough time will be required. 

• When a period ofL WOP ends during the administrative furlough, the 

employee will be subject to the remaining balance of furlough time, if any. 

13.Q. !fan employee is on approved leave without pay (L WOP), but affected by the 

furlough, would the employee be furloughed and L WOP terminated? 

A. Employees who are in L WOP status during an administrative furlough will receive 

credit for their time in that status towards any remaining scheduled furlough hours. 

During an administrative furlough, employees issued furlough notices will be subject 

to scheduled furlough time until an approved period ofLWOP begins. 

14.Q. How will employees be compensated during the furlough if they work outside of 

their basic workweek? 

A. Employees who are required to work hours outside of a basic workweek during 

which they have been furloughed are compensated with their rate of basic pay if 

overtime thresholds have not been met, and/or with overtime pay or compensatory 

time off in lieu of overtime pay, as appropriate, once the threshold have been met. 

Most employees are subject to a 40-hour weekly overtime threshold and an 8-hour 

daily overtime threshold. For example, if an employee is ordered to work 8 additional 

hours outside the basic workweek, these hours are substituted for the 8/urlough 

hours, and in essence the employee has worked a regular 40-hour workweek. 

15. Q. Will overtime pay be calculated based on an 8 hour work day or a 40 hour work 

week? 

A. Overtime pay provided under title 5 USC is pay for hours of work officially 

ordered or approved in excess of 8 hours in a day or 40 hours in an administrative 

workweek. 

DCMA Administrative Record for FY 2013 Furlough Appeals 026
• FLSA exempt employees who work full-time, part-time, or intermittent tours 

of duty are eligible for title 5 overtime pay. Employees in SL and ST positions 

are covered by the premium pay provisions under title 5. 

• For employees with rates ofbasic pay equal to or less than the rate of basic pay 

for GS-10, step 1, the overtime hourly rate is the employee's hourly rate of 

basic pay multiplied by 1.5. For employees with rates of basic pay greater than 

the basic pay for GS-1 0, step I, the overtime hourly rate is the greater of: the 

hourly rate of basic pay for GS-10, step I, multiplied by 1.5, or the employee's 

hourly rate of basic pay. 

Overtime pay for nonexempt employees is computed under the Fair Labor Standards 

Act (FLSA). A non-exempt employee is compensated for all hours of work in excess 

of 8 in a day or 40 in a workweek. All overtime work that is ordered or approved or 

"suffered or permitted" must be compensated. 

• Under the FLSA, overtime pay is determined by multiplying the employee's 

"straight time rate of pay" by all overtime hours worl<ed PLUS one-half of the 

employee's "hourly regular rate of pay" times all overtime hours worked. 

• Any applicable special rate supplement or locality payment is included in the 

"total remuneration" and "straight time rate of pay" when computing overtime 

pay under the FLSA (ex. Sunday premium pay, night pay) 

17. Q. May compensatory time off be utilized during furlough? 

A. Yes. Compensatory time off is merely an alternative form of payment for 

overtime work. As such, the value of an hour of compensatory time off is equal to 

the overtime hourly rate that is payable in dollars. 

• Compensatory time off may be approved in lieu of overtime pay for irregular 

or occasional overtime work for both FLSA exempt and nonexempt 

employees. Compensatory time off can also be approved for a prevailing rate 

employee, but there is no authority to require that any prevailing rate (wage) 

employee be compensated for irregular or occasional overtime work by 

granting camp time off. 

• An employee must use accrued compensatory time off by the end of the 26th 

pay period after the pay period during which it was earned. If the accrued 

camp time is not used within this timeframe, the employee is paid for the 

earned comp time off at the overtime rate in effect when earned. 

DCMA Administrative Record for FY 2013 Furlough Appeals 027
18. Q. Where can I find help ifl encounter financial difficulties as a result of 

furlough? 

A. Furlough financial assistance is available through the Employee Assistance 

Program. DCMA Furlough Resources at https://www.dcma.mil/furlough. 

19. Q. If an employee has already taken L WOP for military duty in this fiscal year, is 

any of that applicable towards that employee's furlough requirement? 

A No. During an administrative furlough, an employee may not substitute leave 

or other forms of paid time off for any hours or days designated as furlough time 

off(e.g. annual, sick, court, or military leave, etc.) 

20. Q. Employee is taking two weeks of military leave during the furlough period, do 

they still need to count two furlough days within the period or are they exempt 

while charging to military leave. 

A. An employee who uses paid military leave must still take furlough days. If the 

employee chooses instead to use LWOP for his military AT, he would receive 

credit for time in L WOP status towards any remaining scheduled furlough hours; 

in other words, all days in L WOP status would be credited towards his remaining 

furlough days. 

TSP/High 3NERANSIP 

I. Q. Will an employee's High 3 be affected by Furlough/Sequestration? 

A. Generally, furlough will not impact a High 3 computation. Please refer to OPM 

Furlough Guidance Section: Employee Assistance, Question l at 

http://www.opm.gov/furlough. 

2. Q. What ramifications are there for items that are based on a percentage of earnings 

like TSP and Life insurance? 

A. See TSP Fact Sheet at https://www.tsp.gov/index.shtml 

3. Q. Will VERANSIP be offered this fiscal year? 

A. VERANSIP will not be offered to DCMA employees this fiscal year as a result of 

budget uncertainties or furlough. These authorities are used to permanently reduce 

the number of personnel employed or to restructure the workforce to meet mission 

objectives without reducing the overall number of personnel. 

DCMA Administrative Record for FY 2013 Furlough Appeals 028
Performance 

1. Q. Will performance awards be affected by furlough? 

A. Consistent with guidance from the Office of Management and Budget (OMB 

Bulletin #M-13-05), DCMA will not issue discretionary monetary awards (e.g., 

performance awards, special acts, QSis, etc.) Wltil further notice. 

2. Q. Will metrics be adjusted to offset the reduced time employees have to complete 

their work? 

A. Supervisors will guide adjustments of plans. 

Keystone/Pathways/852 Fundingffraining 

I. Q. If Keystones are unable to get the training they need due to budgetary issues, will 

the employee be penalized? 

A. Employees will not be penalized if required training becomes Wiavailable due to 

conditions beyond the employee's control. 

2. Q. If sequestration cuts take effect for FY13 and FY14, and all travel is restricted, will 

employees be penalized for not completing non-CBT core DAWIA courses? 

A. There is currently no restriction plarmed for DA WIA related training; in the event 

restrictions must be placed on DA WIA related training events, any modification to the 

24 month requirement will be addressed by AT &L for implementation across the 

Department. 

3. Q. How will I be furloughed if! am attending an extended training class such as the 

two week DAU class? 

A. The Department guidance is to generally target 8 hours per week but it is 

recognized this may not always be feasible, achievable, or a smart business decision 

to keep rigidly to that guidance. I want to remind you all as you are making 

scheduling decisions for your folks that some degree of :flexibility exists. Extended 

TDY or training, critical mission requirements, employee requests, etc., may occur 

that will necessitate that furlough hours be taken on a slightly modified basis - and 

hours in a week or pay period may be modified to accommodate specific situations. 

For example, an employee attending a two-week training course during the pay period 

DCMA Administrative Record for FY 2013 Furlough Appeals 029
may not be able to have furlough hours scheduled that pay period. The 16 hours 

"missed" during that pay period should be redistributed immediately before and/or 

after the training. For long-term TDY and training, it is feasible to schedule furlough 

days at the TDY/training site--the employee will continue to receive per diem and 

lodging for the day, but no work or training would be performed and the employee 

would not be paid. To the extent possible, these employees should follow the 

furlough guidance from the school they are attending. This is something that, as a 

supenrisor, you will need to closely monitor. 

General Questions 

I. Q. Am I allowed to file for unemployment compensation if we are furloughed? 

A. Rules for unemployment eligibility vary by State. Please refer to OPM Furlough 

Guidance in Section H (Employee Assistance). http://www.opm.gov/policy-dataov ers ightlpay -leave/furlough-guidance/ guidance-for-administrative-fur toughs. pdf 

2. Q. Will I be able to seek additional employment during a furlough to compensate for 

lost wages? 

A. While on furlough, an individual remains an employee of the Federal Government. 

Therefore, executive branch-wide standards of ethical conduct and rules regarding 

outside employment continue to apply when an individual is furloughed (specifically, 

the executive branch-wide standards of ethical conduct at 5 CFR part 2635). In 

addition, there are specific statutes that prohibit certain outside activities, and agencyspecific supplemental rules that require prior approval of, and sometimes prohibit, 

outside employment. Therefore, before engaging in outside employment, an employee 

should review these regulations and then consult his or her agency ethics official to 

learn if there are any agency-specific supplemental rules governing the employee. 

3. Q. Who determines whether someone is deemed ''mission essential"? 

A. The term 11Mission Essentialrr is not entirely relevant to a furlough action of this 

type. DCMA employees will be deemed "excepted" during furlough if they fall into 

one of two categories: foreign national employee or a civilian deployed to a combat 

zone. Every other civilian employee--852 funded mission essential, veterans, 

supenrisors, or SES members, will be furloughed and treated in the exact same 

marmer. 

DCMA Administrative Record for FY 2013 Furlough Appeals 030
4. Q. Bargaining Unit employees will be given 30 days advance notice prior to furlough 

taking place. Will Non-Bargaining Unit employees be treated the same? 

A. Yes. All employees, regardless of bargaining unit status, will receive a 30-day 

advance notice period. 

5. Q. How will veterans be treated during a furlough? 

A. Veterans will not be exempt from furlough. 

6. Q. Could there be a RIF? 

A. RIF actions are not anticipated this fiscal year. They could actually cost more 

money this year than they would save due to separation expenses and payout of 

accrued leave. 

7. Q. Will there be a freeze on PCS? 

A. There is no plan to freeze PCS at this time but approvals are decided on a case-bycase basis. 

8. Q. What are the status of negotiations between DCMA and AFGE Council 170? 

A. A Memorandum of Understanding between DCMA and AFGE Council 170 has 

been signed and can be viewed at 

http://www.dcma.mil/furlough/files/MOU Furlough.pdf 

9. Q. IfDCMA's budget is cut due to sequestration, will the Notice of Transfer of Work 

letter sent in early November to certain HQ and Center employee's be rescinded? 

A. No, the HQ Center Realignment effort is still in process. 

10. Q. Will any work-life programs be cut as a result of the sequestration or furlough; 

such as authorized time for physical fitness activity? 

A. Generally, work-life programs, such as authorized time for physical fitness, will 

not be affected as a result of sequestration or furlough, unless mission requirements 

warrant. 

II. Q. Will DCMA's OCONOS employees lose LQA on the day they are furloughed? 

A. In accordance with DSSR 132.2.b, an employee would not lose LQA. DSSR 

l32.2.b- while the employee is in non-pay status not in excess of30 calendar days at 

any one time, LQA grants will continue. For periods in non-pay status longer than 30 

DCMA Administrative Record for FY 2013 Furlough Appeals 031
calendar days, payment shall be suspended as of the day the employee enters such 

status, and payment is not made for any part of such period. 

12. Q, How does an employee stop their contribution to the Thrift Savings Plan (TSP)? 

A, In order to stop or change your Thrift Savings Plan (TSP) you must do so 

electronically tbru the Employee Benefits Information System (EBIS). This database 

can be found at https://www.abc.army.mil/index.htm. If you are having difficulty 

navigating the system, please call the Army Benefits Center (ABC) at (877) 276-

9287. If you are having a CAC issue and are unable to access your AKO email 

address or you are a new DCMA employee, the ABC hotline will be able to make 

your election for you. 

13. Q. Will OPM consider an "open season" for employees to change benefits 

(particularly FEHB)? 

A. Although there will not be an Open Season just for the impending furlough, there 

are FEHB Event Codes that are applicable in a furlough situation. For example, the 

following FEHB events codes may be used: 

IE code- Should be used in the event the employee is working on a Part-time 

schedule and an SF-50 is completed to change their work schedule (from part-time to 

full-time or vice-versa) or work hours. This event code will allow an employee to 

change to self-only, self-family or cancel their coverage. 

1 G code- Should be used for full-time employees who have insufficient pay to cover 

their FEHB premiums. These employees will be provided the option to cancel or 

change to self-only coverage within 31 days of insufficient pay notice. When full pay 

resumes, the employee has 60 days to elect to continue coverage. 

lD code- Should be used when an employee terminated their coverage and is 

returning to a full pay status, the employee will have 60 days from the date of their 

return to full pay status to elect health coverage. 

You can view other qualifYing life event (QLE) codes that can be made outside of 

Open Season at the link below: 

http://www.opm.gov/healthcare-insurancelhealthcare!referencematerials/reference/enrollment/ 

DCMA Administrative Record for FY 2013 Furlough Appeals 032
Subsequently, you will be notified by your employing agency if your salary becomes 

insufficient to pay your FEHB premiums. When notified you will be given the option 

to pay directly, incur a debt, or pre-pay premiums. Consequently, if you choose to 

incur a debt, you must agree to pay the resulting debt in full and allow the debt to be 

collected from your pay once you return to a full pay status. 

14. Q. What are the procedures or policies for participants in the event of a furlough 

schedule? 

A. The same MTBP procedures/policies apply whether in regular status or furlough. 

Participants in the mass transit benefit program should always claim monthly benefits 

in amormts up to their most recently approved mass transit enrollment application (not 

to exceed the maximum statutory monthly limit). , they need only adjust their 

monthly claims according to the days they will actually be commuting (taking into 

accormt furlough days, and as always, A WS, telework, etc.). Any benefits not used 

by participants expire at the end of each month. Unused benefits do not roll over to 

the next month. 

15. Q. If a new employee comes on board during the furlough period, what rules apply 

when placing the employee under the furlough? 

A. Per OPM guidance, an agency must give a 30 day notice to employees who are 

being furloughed, employees must be given a 7 day response period before they can 

be placed on furlough. The Notice ofFurlough can be given to the employee on the 

first day of employment and the furlough will go into effect after the requisite periods 

have passed. 

16. Q. What PLAS code do employees use for furlough days? 

A. The week of July 8, 2013 officially started the furlough period for all 

Department of Defense (DoD) employees. During this time, the correct PLAS code 

on the day of furlough will be KE. 

17. Q. How many days or hours of :furlough will a new employee have to serve? 

A. The number of days required for furlough will be pro-rated based on the week the 

employee begins the furlough. Examples are provided in the scheduling guidance 

document posted below under DCMA Specific Information. 

18. 

DCMA Administrative Record for FY 2013 Furlough Appeals 033
18. Q. Does placement in furlough status cause a full-time employee to be converted to 

part-time or a part-time employee to be converted to a reduced part-time work 

schedule? 

A. No. Placement in furlough status or any other kind of temporary nonpay, nonduty 

status does not affect the nature of an employee's official work schedule as full-time 

or part-time. For a full-time employee who is furloughed during a 40-hour basic 

workweek, the employee continues to have a full-time 40-hour basic workweek. For 

a part-time employee who is furloughed, the part-time tour of duty established for 

leave usage pmposes also remains the same. 

19. Q. May an employee volunteer to do his or her job on a nonpay basis during any 

hours or days designated as furlough time off? 

A. No. Unless otherwise authorized by law, an agency may not accept the voluntary 

services of an employee. (See 31 U.S. C. 1342.) 

20. Q. Will an employee's Federal Flexible Spending Account Program (FSAFEDS) be 

impacted during an administrative furlough? 

A. The employee's FSAFEDS coverage continues, and allotments made by the 

employee continue if the employee's salary in each pay period is sufficient to cover 

the deduction(s). If the employee's salary is insufficient to cover his or her 

allotment(s), then incurred eligible health care expenses will not be reimbursed until 

the allotments are successfully restarted (in which case the remaining allotments 

would be recalculated over the remaining pay periods to match the employee's annual 

election amount). Incurred eligible dependent care expenses may be reimbursed up to 

whatever balance is in the employee's dependent care account, as long as the 

expenses incurred allow the employee (or employee's spouse if married) to work, 

look for work or attend school full-time. Once dependent care allotments are 

successfully restarted, remaining allotments would be recalculated over the remaining 

pay periods to match the employee's annual election amount. 

Security Questions 

1. Q. If I can't meet my financial obligations can it impact my security clearance? 

A. Security clearance determinations are made based on a "whole person" principle. 

Decisions regarding eligibility for access to classified information take into account 

factors that could·cause a conflict of interest and place a person in the position of 

having to choose between his or her commitment to the United States, including the 

commitment to protect classified information, and any other compelling loyalty. 

When a person's life history shows evidence of unreliability or untrustworthiness, 

DCMA Administrative Record for FY 2013 Furlough Appeals 034
questions arise whether the person can be relied on and trusted to exercise the 

responsibility necessary for working in a secure environment where protecting 

classified information is paramount. Financial issues are one of many considerations 

taken into account when trying to determine whether a person is an acceptable 

security risk. As a category, financial problems are a leading reason a security 

clearance is revoked or not granted. A single financial misfortune may not in and of 

itself cause a loss of clearance. Rather, it would be a factor to be considered among 

many others: 

•Are they unable or unwilling to pay their debts? 

• Is there evidence of unexplained affluence? 

•Do they file annual Federal, state, or local income tax returns as required? 

•Is the financial difficulty a result of drug use or alcohol abuse? 

•Do they have a history of gambling or other risky financial behavior? 

• Was the financial misfortune an isolated incident or part of a pattern, or cycle of 

debt? 

•Has the individual acted responsibly? (i.e. notified and worked with creditors) 

•Has the individual been open and honest with his or her leadership about the issue 

or have they tried to cover it up? 

2. Q. What should I do to minimize the effects on my security clearance if and when I 

find myself unable to meet my financial obligations? 

A. You should immediately contact your creditors and explain the situation. You 

should document each interaction with the creditor to the maximum extent possible. 

Many creditors are willing to work with their customers in such situations. For 

example, if the creditor agrees to lower payments for a period oftime, you should ask 

for that agreement in writing or email. This will allow you to provide the adjudicator 

with the documented evidence that you were acting responsible given the situation. 

Additionally, you should keep your security office informed if you are experiencing 

or beginning to experience difficulty meeting your financial obligations. 

3. Q. What kinds offmancial hardships should I report to my Security Office if they 

occur? 

DCMA Administrative Record for FY 2013 Furlough Appeals 035
A. You should notifY the DCMA Security Office at 

PERSONNELSECURITYMAILBOX@DCMA.MIL and your supervisor in writing 

if, because of furlough, you: (I) face bankruptcy, (2) are unable to pay Federal, state 

or other taxes required by law or ordinance, (3) require credit counseling, ( 4) become 

delinquent on alimony or child support payments, (5) have a judgment entered against 

you for failure to meet financial obligations, (6) have liens placed against you, (7) 

become delinquent on a Federal debt, (8) have possessions or property repossessed, 

(9) default on loans, (10) have accounts turned over to a collection agency, (II) have 

credit accounts suspended, charged off, or cancelled for failure to pay as agreed, (12) 

are evicted for non-payment, (13) have wages garnished in order to satisfy a fmancial 

obligation, or (14) become over 120 days delinquent on a debt. Providing 

notification demonstrates responsibility which can mitigate any security concerns 

about the debts themselves. 

DCMA Administrative Record for FY 2013 Furlough Appeals 036
ADMINISTRATIVE FURLOUGH SCHEDULING GUIDANCE FOR NEW 

EMPLOYEES 

New employees reporting for duty at DCMA must be given a Notice of Proposed 

Furlough by the new supervisor upon arrival. The employee will have seven calendar 

days from the date this notice is received to make a written and/or verbal reply to the 

deciding official. The proposal provides the employee a 30-calendar day notice period 

starting from the date the proposal is received. After the seven-calendar day reply period 

has expired, the employee must be given a Notice of Decision to Furlough prior to the 

expiration of the 30-calendar day notice period. If the decision is to furlough the 

employee, the employee will begin the furlough no sooner than 30 calendar days after the 

proposal notice is received. The number of days required for furlough will be pro-rated 

based on the week the employee begins the furlough. 

Examples: 

Employee A-Enters on duty with DCMA effective 17 June 2013 and receives the 

Notice of Proposed Furlough on the same date (30-calendar day notice period begins). 

The employee's seven-calendar day reply period expires on 24 June 2013. The employee 

receives the Notice of Decision to Furlough on 25 June 2013. 

The employee's first effective date of furlough is 18 July 20!3. The employee will serve 

one furlough day (eight hours) on either 18 or 19 July 2013. The employee's furlough is 

reduced by one day (eight hours) and will serve ten days of furlough for the remaining 

furlough period. 

The employee is identified as an exception in AutoNOA (Reason #21, Delayed issuance 

of furlough proposal notice). A manual furlough RPA is submitted through DCPDS with 

an effective date of 18 July 2013. 

Employee B- Enters on duty with DCMA effective I July 2013 and receives the Notice 

of Proposed Furlough on the same date (30-calendar day notice period begins). 

The employee's seven-calendar day reply period expires on 8 July. The employee 

receives the Notice ofDecision to Furlough on 9 July 2013. 

The employee's first effective date of furlough is I August 2013. The employee will 

serve one furlough day (eight hours) on either I or 2 August 2013. The employee's 

furlough is reduced by three days (24 hours) and will serve eight days of furlough for the 

remaining furlough period. 

DCMA Administrative Record for FY 2013 Furlough Appeals 037
The employee is identified as an exception in AutoNOA (Reason #21, Delayed issuance 

of furlough proposal notice).A manual furlough RP A is submitted through DCPDS with 

an effective date of l August 20!3. 

Employee C-Enters on duty with DCMA effective 15 July 20!3 and receives the 

Notice ofproposed Furlough on 16 July 20!3 (30-calendar day notice period begins). 

The employee's seven-calendar day reply period expires on 23 July 20!3. The employee 

receives the Notice of Decision to Furlough on 29 July 20!3. 

The employee's first effective date of furlough is 16 August 20!3. The employee will 

serve one furlough day (eight hours) on 16 August 2013. The employee's furlough is 

reduced by five days (40 hours) and will serve six days of furlough for the remaining 

furlough period. 

A manual furlough RP A is submitted through DCPDS with an effective date of 

16 August 2013. 

DCMA Administrative Record for FY 2013 Furlough Appeals 038
ADMINISTRATIVE FURLOUGH SCHEDULING EXAMPLES FOR 

TDYffRAINING 

Employee A- Scheduled to attend a one-week training class 29 July- 2 August 2013. 

Employee travels on Sunday, 28 July, and either Friday, 2 August or Saturday, 3 August. 

The DCMA employee will adjust the one furlough day (eight hours) "missed" while in 

training to the week before or the week following the training. 

Employee B -Scheduled to attend a two-week DAU training class 30 July- 8 August 

2013. DAU scheduled furlough days are Monday, 29 July, and Friday, 9 August. The 

DCMA employee travels on Monday, 29 July, and Friday, 9 August. The DCMA 

employee will adjust the two furlough days (16 hours) "missed" while in training to the 

week before or the week following the training. For example, the DCMA employee will 

schedule two furlough days the week of22 July and two furlough days the week of 

12 August to make up the "missed" 16 hours of furlough while in training. 

Employee C- Scheduled to attend a four-week DAU training class 30 July- 21 August 

2013. DAU scheduled furlough days are Monday, 29 July; Friday, 9 August; and 

Thursday and Friday, 22 and 23 August. The DCMA employee travels on Monday, 

29 July, and Thursday, 22 August. The DCMA employee is furloughed on Friday, 

9 August, and Friday 23 August. The DCMA employee will adjust the two additional 

furlough days (16 hours) "missed" while in training to the week before or the week 

following the training. For example, the DCMA employee will schedule two furlough 

days the week of22 July and two furlough days the week of26 August to make up the 

"missed" 16 hours of furlough while in training. 

Employee D- Scheduled for TDY 23-26 July 2013. The employee's original furlough 

schedule included a furlough day on 22 July. The employee will travel on 22 July and 

reschedule the one furlough day (eight hours) to the week before or the week following 

the TDY. 

DCMA Administrative Record for FY 2013 Furlough Appeals 039
ASSISTANT SECRETARY OF DEFENSE 

4000 DEFENSE PENTAGON 

WASHINGTON, D.C. 20301-4000 

READiNESS AND 

FORCE MANAGEIIENT JUN 2 8 2013 

MEMORANDUM FOR: SEE DISTRJBUTION 

SUBJECT: Civilian Furloughs and Total Force Management 

Reference: (a) Secretary of Defense Memorandwn, "Furloughs", dated 14 May 2013 

The Secretary of Defense, per reference (a), directed civilian furloughs beginning July 8, 2013. 

Reference (a) also provided for certam exceptions to the civilian furloughs to minimize adverse effects 

on mission. Tbis memorandwn provides additional guidance related to the Total Force of active and 

reserve military, civilians, and contracted support during the time-period of civilian furloughs. 

While civilian furloughs will undoubtedly disrupt the mission and have a negative impact on 

productivity, it has been detennined that the risk associated with that workload loss, while 

unavoidable, is acceptable. On furlough days, furloughed civilians are not authorized to perform 

official duties at their permanent or temporary duty station, at home, or at an alternate site, including 

communicating by BlackBerry or other mobile device. In addition, civilian personnel subject to 

furlough shall not be required to work beyond their regularly scheduled and compensated times on 

non-furlough days to make up for work lost as a result of furlough. nor shall employees in pay status 

perform work beyond their regularly scheduled hours to compensate for the workload/productivity loss 

of those who are in furlough status. 

Accordingly~ Component heads, installation commanders, and line managers shall take steps to 

manage workload, but must ensure that borrowed military manpower is not used to compensate for 

work resulting from a civilian furlough. To do so would be inconsistent with the Secretary's intent and 

the Department's commitment to protect the viability of the All-Volunteer Force. 

Additionally. in accordance with the. Department's statutory requirements, contractors are 

prohibited from being assigned or pennitted to perfonn additional work or duties to compensate for the 

workload/productivity loss resulting from the civilian furlough. 

To protect against further hann to morale and productivity- which the Secretary of Defense 

warned against- compliance with the above is critical. Please ensure maximum distribution of this 

memorandwn throughout your organization. 

___:;j ~21/. ~ .. ~ .. '1 -- p; ~-- F. E. Vollrath 

DCMA Administrative Record for FY 2013 Furlough Appeals 040
DEFENSE CONTRACT MANAGEMENT AGENCY 

3901 A AVENUE, BUILDING 10500 

FORT LEE, VA23801·1809 

INTERNAL MANAGEMENT GUIDANCE- FOR OFFICIAL USE ONLY 

MEMORANDUM FOR DEPUTY DIRECTOR 

CHIEF OPERATING OFFICER MAY 3 0 2013 

REGIONAL COMMANDERS 

EXECUTIVE DIRECTOR, SPECIAL PROGRAMS 

EXECUTIVE DIRECTOR, INTERNATIONAL 

EXECUTIVE DIRECTOR, CONTRACTS 

GENERAL COUNSEL 

SUBJECT: TASKING: FY 13 Administrative Furlough Requirements for Deciding Officials 

Suspense: June 5, 2013 THROUGH NO LATER THAN July 5, 2013 

As indicated in the original Furlough Tasking Memorandum, an administrative furlough 

will be instituted for all DCMA civilian .employees, except direct and in-dir~t hire foreign 

national employees~ civilians deployed in combat zones and 9ivilians deployed in Africa; and 

Foreign MiJitary Sales (FMS) employees Whose positions are exclusiVely funded from FMS 

Administrative and FMS Case Funds and from Foreign Military Financing Accounts. The 

furlough will be on discontinuous (intermittent) days for no more than 11 workdays or 88_ hours. 

Generally, each employee will be furloughed for no more than 8 hours per week during the 

period between July 8, 2013 and September 30,2013. 

Proposing Officials (normally first line supervisors) were tasked with issuing the Notice 

of Proposed Furlough during the period May 28 through June 5, 2013. Management officials 

were designated to receive the employee's oral reply and will provide Deciding Officials a 

Memorandum for Record summarizing_ the employee's oral reply. The employee reply period 

ends during the period June 4 through June 12, 2013 (seven calendar days from the date the 

Notice of Proposed Furlough was received by the employee). 

As Deciding Officials, you are charged with fully considering any replies (written and/or 

oral) and issuing the Notice of Decision to Furlough. Deciding Officials are accountable for 

making final decisions on furloughs for individual employees after carefully considering the 

employee's reply, if any, and the needs of the Agency. Deciding Officials must also ensure final 

decisions are made in cases where an employee does not submit a reply. Deciding Officials will 

have the authority to execute the full range of options with respect to providing relief in 

individual employee cases. This authority includes, but is not limited to, reducing the number of 

days/hours an individual employee is furloughed, or granting the individual employee an 

exception from the furlough altogether. Agency templates have been developed for the Notice of 

Decision to Furlough and cannot be amended or changed. 

NOTE: If the decision is made to grant partial or total relief from the furlough, the 

Deciding Official must contact the servicing Labor and Employee Relations Specialist for 

assistance in preparing the Notice of Decision to Furlough. 

DCMA Administrative Record for FY 2013 Furlough Appeals 041
EMPLOYEES ON TEMPORARY APPOINTMENTS AND REEMPLOYED 

ANNUITANTS: These employees do not have the same statutory procedural rights as 

permanent employees. Therefore, employees on temporary appointments and reemployed 

annuitants will not receive a Notice of Proposed Furlough. The Notice of Furlough will be 

issued by the designated Deciding Officials during the period NOT EARLIER THAN June 5 

through NO LATER THAN July 5 (Previously provided as Attachment E in the original 

Furlough Tasking Memorandum). 

As a reminder, a DCMA Memorandum of Understanding addressing the Agency's 

Administrative Furlough Plan has been negotiated with the American Federation of Government 

Employees, Council I 70. Further negotiation of the Agency's Administrative Furlough Plan and 

supplemental guidance are not authorized at any leveL 

Attachment A provides a template for the Notice of Decision to Furlough where the 

employee made an oral and/or written reply 

Attachment B provides a template for the Notice of Decision to Furlough where the 

employee did not make a reply 

Attachment C provides procedures for issuing the Notice of Decision to Furlough 

Attachment D provides a liSting of Merit-Systems Protection Board Regional Offices 

(required for insertion in the Notice of Decision to Furlough} 

Attachment E provides the MSPB Appeal Form (attachment to Notice of Decision to 

Furlough) 

Reguirement{s) Summarv: 

TI1e foliowing outlines requirements and actions to be taken by Deciding Officials: 

• NOT EARLIER THAN June 5 through NO LATER THAN July 5: Deciding Officials 

issue the Notice of Decision to Furlough (Notice of Decision to Furlough templates 

and procedures are at Attachments A, B. and C) 

• Attach MSPB Appeal Form to Notice of Decision to· Furlough 

• Ensure a complete record of each individual actio.n is maintained (Notice of Proposed 

Furlough; Written Reply (if any); Memorandum for Record of Oral Reply (if any); 

Supporting Documents provided by employee (if any); and Notice of Decision to 

Furlough 

• June 5 through NO LATER THAN July 5: Issue Notice to Furlough to temporary 

employees and reemployed annuitants 

• July 8: First workday an en1ployee may be furloughed 

Reporting and Recordkeeping Requirements: A sep-arate Tasking Memorandum will follow 

to outline specific reporting and recordkeeping requirements. 

Resource Impact: 

• Approximately one to four hours per mnployee. 

2 

DCMA Administrative Record for FY 2013 Furlough Appeals 042
Administrative Information: 

• PLAS Code for this task: 223B 

• This tasking memo has been coordinated with appropriate headquarters operational 

leadership. 

• POC: The Labor and Employee Relations Specialist, Human Capital Directorate, in 

accordance with organizational assignments (Previously provided as Attachment I in the 

original Furlough Ta~ing Memorandum). 

Attachments: 

As stated 

'--""ecutive Director 

Human Capital 

3 

DCMA Administrative Record for FY 2013 Furlough Appeals 043
DISTRIBUTION: 

SECRETARIES OF THE MILITARY DEPARTMENTS 

CHAIRMAN OF THE JOINT CHIEFS OF STAFF 

UNDER SECRETARIES OF DEFENSE 

DEPUTY CHIEF MANAGEMENT OFFICER 

CO~ERSOFTHECOMBATANTCOMMANDS 

DIRECTOR, COST ASSESSMENT AND PROGRAM EVALUATION 

DIRECTOR, OPERATIONAL TEST AND EVALUATION 

GENERAL COUNSEL OF TilE DEPARTMENT OF DEFENSE 

INSPECTOR GENERAL OF TilE DEPARTMENT OF DEFENSE 

ASSISTANT SECRETARIES OF DEFENSE 

DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER 

ASSIST ANTS TO THE SECRETARY OF DEFENSE 

DIRECTOR, ADMINISTRATION AND MANAGEMENT 

DIRECTOR, NET ASSESSMENT 

DIRECTORS OF THE DEFENSE AGENCIES 

DIRECTORS OF THE DOD FIELD ACTIVITIES 

DCMA Administrative Record for FY 2013 Furlough Appeals 044
UNDER SECRETARY Of" DEFENSE 

1 1 CO DEFEi..,SE PENTAGON 

WASHINGTON .. DC 20301-1 100· 

UAY 23 2013 

MEMORANDUM FOR: SEE DISTRIBUTION 

SUBJECT: Additional Guidance for Handling Budgetary Uncertainty in Fiscal Year 2013 

References: (a) D_eputy Secre1ary ofDerense's memorandum on '"'Hnndling Bu~getary 

Uncertainty in Fiscal Year 2013." dated January 10,2013 

(b) USD(C) Memorandum "Additional Guid1Uice on Handling j3udget Uncertainty 

in fiscal Year 2013," March 5, 2013 ·Rescinded 

(c) DoD Directive 4515.12, DoD Support for Tmvel of Members and Employees of 

Congress · 

(d) Title 10, United Stl!tes Co.de § 10~1. "Bilateral or regional coQperatlon 

programs: payment of personnel expenses" . 

(e) DoD Instruction 10!5.15, Establishrnent,Managernent<l!ld Contrul of Non· 

appropriated Fund.ltWrurnentalities and Financial Management of Supporting 

Resoun;:es 

(f) Title 10, United States Code§ 14.91, "Funeml honors functions at funerals for 

veterans»· 

(g) Title 31 United Stotes.Code § 1353, "Acceptimce ofTravel and Related 

Expenses from Non-Federal Soufces,' 

The putpose of this memorandum is to provide additional guidance to reference (a) to 

ensure cons'istency in the-treatment of issues across the Department ofDefen.se {DoD) -as the 

Department implements sequestratiurt-D.Ild the funding provided in th~ Con.soUdated and Further 

Continuing Appropriations Act, 2013 (Public Law 113-6). All DoD Components need to ensure 

that funding for wartime opeiJitions is protected and critical priority requiremenls for national 

security are funded within the limited resources and flexibilities provided. Effective 

inlmediately. the guidance in tbis·memo~dum super$edes:the _guidance p_rovided in reference 

(b), und subsequent clarifications, \vhicb are hereby rescirtded. 

Congressional Tra,.·el-Sonport 

The Department will strictly enforce DoD's policies in its supponoftravel by 

congn>ssional delegationS (CODELs) imd congressional staffdelegstions (STAFFDELs). It is 

DoD policy that support for approved travel ofmcmbets and employees of Congress shall be 

provided on an economical basis. upon rcque.si _from Congress. pursmmt-to la\v or wbere 

necessary lo carry out DoD dUtie~HtrJd responsibilities~ Orgmiizatidns shaJl. enSure that trU\·el of 

members ond employees of Congress ls sponsored by1he DoD on/ywhere.lhe purpose- of the 

tra,·el is of primary interest to and be_ur.; a substamkil-re"lationship_ to _programs Or activities of· 

DoD and is not solely tOr the purpos-e of engendering goodwill or obtuining possible _future· 

he-nefits. Specific guidance is-included in reference (t;). Some specific poliCies worth 

hiehlilliltinl! include: - - -

DCMA Administrative Record for FY 2013 Furlough Appeals 045
• Military airlift will not be used for CODELs if commercial airlift is rea5onably available. 

• Within the Continentfll United State.!! (CONUS), no CODELs may use military 

airlift as commercial airlift is readily available. 

• Military airlift may be authorized for' CODELs Outside the CONUS if cmnmcrciul 

airlift is limited or unsafe; every eflOrt must be made to minimize costs. 

• Spouses may accompany members if there is ail official function as long as they 

pay their ovm expens€:s and do not increase the number or size of aircraft required. 

• Minimum number of congressional members for militnry airlift originating in CONUS, 

• No Jess than five m~Itlbers for large aircraft. 

• No tess than three members for small aircraft. 

• Tickets purchased by DoD for CODELs, STAFFDELs, and liaison escorts. 

• Must be economy cla..'ls; individuals may upgrade u.l their ovm expense. 

• DoD does not pay for a-member's personal staff traveling to his/her home 

Stnte/Distriet; this includes travel, lodging, meals, or escorts. 

• Ali itineraries for CODELs/STAFFDELs must be approved by the escorting Service's 

2-star Legislative Afthlrs Di'rectorto ensure that the itinerary is an e!licient use of 

taxpayer funds. 

Tuition Assistance 

The ServiceS are to restore-funding fortuitioh asSistance· to the budgeted level for the 

remainder of FiscaJ Year-2013, without reduction for sequestration. ·In addition. the Services 

will not implement any management controls/restrictions that did not exist prior to the tuition 

assistance stoppage. This will meet, .and- eXceed, the requirement in section 8129 (Requirement 

to Continue Provision of Tuition Assistance for Metnbers of the Anned Forces) of division C of 

Public Law 113-6 [Department of Defense Appropriations Act, 2013). 

Diseretiooary Monetary Awards for Civilians 

In the Office of Management and Budget (OMB) Bulletin #M-13-1 I. Ongoing 

Implementation of the Joint Committee Sequestration, dated April 4. 2013, the Controller 

provides the following guidance with regard to discretionary monetary awards: 

"OMB Memorandum fJ .. ()5{Agency Responsibilities tOr Implementation 

of Potential Joint Committee Sequestration] dircclS that discretionary monetary 

awilrds should not be issued wh.ile sequestration is in place, unless issuance of 

such awards is Iegaiiy required. Discretionary monetary awards include annual 

performance awards, group awludsj and special act cash awards 1 which comprise 

n sizeable mujoriry of awards and incentives provided by the Federal 

Government to employees. Until further notice~ agencies should not issue such 

monetary awards from sequestered accounts unless agency cow1sel detennines 

, 

DCMA Administrative Record for FY 2013 Furlough Appeals 046
the awards are legally required. legal requirements incl~de comP.Iiance with 

provisions i'n collective bargaining agteements.govem.ing awardS.1 

Consistent with past guidance, eenain types of incentives are.not 

considered discretionary monetary awards for the putpOses of this. policy. These 

include quality step increases (QSls); trnvel incentives recognizing employee 

savings on official tn,lvel; foreit.rn language awards for misSion-critical "language 

needs; recruitment, retention, 'a.J_ld- relocation· incentives· (3Rs ); s(Udent loan 

repayments; and time-off awards; Wllile tbese items are permitted, in light of 

current budgetary constrnints, they sbould be used only on a highly limited basis 

and in circwnstartCcs where they are necessary and "'tiiical to maintaining the 

agency's miSsion. In addition, consistent with ~he policy set foi:'th -in--the 

Guidance on Awards for Fiscal Yelll'l! 201 J .and 20J2,}ointly.issued by the 

Office of Personnel Management (OPM) and OMB otl Jcne 10, ZOI i, spending 

for QSis and 3 Rs should not exceed the level ofspending on such incentives for 

fiscal year 2010. · 

With respect to Federal poJiHCaJ appoin~ees, agertc~es,sho"uld continue to 

follow the policy set forth in the Auglist3, 2010 Presidential Memorandum, 

Freeze on Discretionary Awards, Bonus~s, and Similar Paymer)ts for FedetaJ 

Political Appointees. OPM pW~iously issued g·uidnnce-on intplementatioh. of 

this memorandum. !• 

The Office of the Undot Secretaiy of Defense for Persortnel and Readiness will be issuing 

supplemental guidance on award limitations forDoD civilians. · 

Participation in lbtetnationaJ Events 

The Department should limit its participatillll in international even~ except in those 

instances where individuals lll'e slU)poning Foreign.Milil!lty Sales and the funds supPorting these 

efforts ani not being seqUestered because .the a~Counts:are exempt from sequestration. 

Components may conlinue·to participate in military ex-erciseS and 1o conduct military~tomi1itW')' en-gagement activities. inc1uding participation by DoD personnel-in_ bilatercll or regional 

conferences. seminars, or- similar meetings if the appropriate conference approval authority 

detennines thnt- t.he .attendance of such personrtel at-suCh conference, setninar; or,sil'rii1at meeting 

is in the national security interests of the United States. In addition, Components may conrinue to 

use- in accordance with established guidance and npproval procedures- the authority provided 

by reference (d) to-pay travel and subsistcm:e·costs-for defen··se personnel- from- deve1oping 

countries in order for ilietn to attend coritCtences. seminars, Ot similar meetings c;onsidered in-the 

interest ofU.S. nariona:l-sccuri'ty. In this period Of sequestered budgeis. however, COmponent 

He01ds should take particular care to ensure that any mililary-to-militaryengagement activities. 

including corifercnces. seminnrs~ or similar meetin_gs,.are mission·criti~ and that the goals ofthe: 

l Consistent with legal TC(jUircments. :~gencits may consider engaging in,discussions with t=mploy~· excloSive. 

representatives to explore re\•isions to such provisions-in ex-isting c-ollective' bargaining agreements. in· RlCDghition of 

thi!' ~uiWmce' 

3 

DCMA Administrative Record for FY 2013 Furlough Appeals 047
activity cannot be deterred or Olet tluuugh other means. We also ask that vou take into account 

factors that could result in special SCilJtiny of an event 7 including size. cos~ and location. 

Utilization_ofmilitary musical units or cercmoi:Lial units in rni.l.itary~to-milhary engagement 

activities will require the cOncurrence of the: Office Of the AssistQJlt to the Secretary of Defense 

for Public Aftairs before approval. 

Demoustratioo Flving 

Ali aerial demonstrations. including flyovers~jump team demonstrations. and participation 

in civilian air-shows and military open houses were to cease· as of April 1. 2013. consistent with 

previous direction. Flyovers in support ofmilitar)• funerals will be given special consideration. 

To ensure consistency across the De~>aronent all exceptions and waivers for demonstration Hying 

will require the concurrence of the Office of the Assistant to the Secretary of Defense for Public 

Affairs before approval. 

Support to !\'on-DoD Organizations and Special Even Ill 

All military support to non-DoD organizations and speciaJ events tbr outreach purposes 

beyond a military installation*s local area is prohibited. MiJitmy support to outreach activities in 

the locaJ area is permitted so long as the support is provided using only local assets and 

personnel, and is at no cost tcdhe Department. This includes, but is not limited to, military 

equipment displays at civilian air·shows, military open houses, Fleet and Service weeks, and 

CONUS-based ship homeport visitS, and in parades and civic events. The use of nonappropriated funds (NAF) to hOst military installation open houses in support of authorized NAF 

programs is pennitted in accordance with reference (e). Tb ensure consistency across the 

Department, all eX"ceptions and waivt::rs for support to non-DoD organizationS and special events 

wiJl require the concurrence of the Office of the Assistant to the Secretary of Defense for Public 

Affairs before approvaL Thi.s section does not apply to DoD Cotnponl!nt Recruiting Marketing 

activities using Recruiting assets, National Guard outreach activities funded solely by State funds, 

and attendance by DoD personnel at u non·DoD hosted conference. 

Military Musical Unit(and Ceremonial Unit) Travel 

As a matter of policy, mi1itary musical and ceremonial units will not be permitted lo trnvd 

beyond their re.spective dut)' station~s local area for-any purpose, including support lo another 

military installation. even if such travel-could be conducted at no cost to DoD. Units may 

continue to perform locally both on and ofT military installations. including for the purpose of 

producing and distributing audio and video recordings~ as long as those performances, 

productions and distributions are at no cost to the Department. To ensure consistency across theDepartment, all exceptions and waivers will require lhc concuttencc of the Offici! of the Assistant 

to the Secretary of Defense for Public AtTairs before approval. Presidential Wreath-Laying 

Ceremonies are exempt from this restriction. In addition, MHitary Funeral Honors Details arc 

e.'i:empt from 1his restriction and \\il11:0ntinue to be executed in accordance \Yith Service 

Department policies and reference (f). 

·l 

DCMA Administrative Record for FY 2013 Furlough Appeals 048
Official Sncecbes and-Related Travel Expenses- for DoD Pei"5ollnel 

Department of Defense personnel may not travel beyond !he looal area at DoD cost, 

including to deJiver official speeches. unless the activity is deemetlmission·critical. Each 

organization in the Office oftlu! SecrelaryofDefens;: (OSD), Service Component or Combatant 

Cori1mand (COCOM) js responsible for making this ·~ission critical'f detennination, 

Expenditure of DoD travel funds to support a mission critical official speech musi be approved 

by the member' srespective OSD organization, service Component or COCOM leadership. The 

Department may continue to accept unsolicited .travel benefits from non·Fedetat sOu~s- in 

accordance 'With .reference (g). However, all expenses: for nQn-:mission ctiticnl travel must be 

covered by the non-Federal source, including pet diem, lodging, meals, tranSPortation and all 

other travel~ related expenses. 

Conference Attendance 

As you know, the Deputy Secretary of De fens;: has issued guidance requiring that all 

CQnferences. be misSiOn critical. There are aiso :certal~;U,dividlla1s wh·b musfapprove 

conferences. depending on their nature and·size. lfyou bave·quesHons1ibout t,bis.guidance.1t is 

available for review at: http://dcmo,defense.govlproducts-and-serviceslconference-policiescontrolslindex.html. 

Even under sequestraiion, we do not waot to probibitcoliferences, inCluding hosting of or 

attendance at DoD-hosled confereD£cs or attendance at confutenceshostedby noo•DoD entities. 

However, in this period of seq~eslered budgets, we ask that commanders: and rtumagers take 

particular care to be :certain that conferences are indeed rt:Lission critical. imd that the goaJs o(theconference cannot be met through ot_her IJl.DanS. ·we aleo.'ask.that you-take-into _account factors 

that could result in special scrutiny of conferences· including size. cost, and locations that are 

remote from the workplace of most participanis. Particular care shoul.d be exercised in assessing 

the nt.>ed for conferences held overselts"or in other 1ocations 'likely to attract special attention. 

If, after weighing the above considerations, travel approving officials determine that 

attendance at conferences hosted by non-Federal sources dw:ing sequestration is still appropriate. 

if asked. the host may he informed of DoD's authority to accept poyments for travel, subsistence, 

and related expenses pursu"!'t to reference (g). Payments for travel expenses under reference (g) 

may nol be solicited. Apart from this statute, we do not have authority to accept reimbursements 

ffom non~Federa1 entities in a manner that can be used to offset DoD's costs of participation in a 

non-Federal source•s ccnterem:e. All DoD travel approving officin1s should ensure that DoD 

employees attend only those conferences that satisfY the criteria set forth in the preceding 

paragraph and that. wherever appropriate. ali travel, subsistence-and _related expenses incurred by 

DoD are reimbursed in-accordance with reference (g). 

DCMA Administrative Record for FY 2013 Furlough Appeals 049
OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE 

4000 DEFENSE PENTAGON 

WASHINGTON, D.C. 20301-4000 

MAY 21 2013 

MEMORANDUM FOR: SEE DIS1RIBUTION 

SUBJECT: Supplemental Guidance on Leave Without Pay Status for the Department of 

Defense Civilian Employees during an Administrative Furlough 

On March 5, 2013, the Office of Personnel Management revised the Guidance for 

Administrative Furloughs. The revision states "Agencies have discretion in determining whether 

to furlough employees who are in Leave Without Pay (L WOP) status, since both furloughs and 

L WOP are periods of non-pay status." 

This memorandwn provides the Department of Defense supplemental guidance on the 

treatment of employees who are in L WOP status during an administrative furlough. For 

consistency and fairness, this guidance applies to emplOyees in all categories of L WOP, 

including employees on leave under the Family and Medical Leave Act (FMLA) and AbsentUniformed Service Leave (A-US). The guidance achieves required civilian payroll savings 

while maximizing productivity without creating additional financial burden for employees. 

Employees who are in L WOP status during an administrative furlough will receive credit 

for their time in that status towards any remaining scheduled furlough bows. 

• During an administrative furlough, employees issued furlough notices will be subject 

to scheduled furlough time until ao approved period of L WOP begins. 

• Once the previous furlough hows served plus L WOP hours taken during an 

arhninistrative furlough equals the number of furlough hours required during the 

arhninistrative furlough, no additional furlough time will be required. 

• When a period of L WOP ends during the administrative furlough, the employee will 

be subject to the remaining balance of furlough time, if any. 

• Managers and supervisors are advised to limit discretionary L WOP to the maximum 

extent practicable during the administrative furlough. 

• L WOP taken prior to or after the administrative furlough will not be credited toward 

required furlough time. 

• Tills guidance does not supersede any past practice or collective bargaining 

agreement. All bargaining obligations must be met prior to implementing a change in 

conditions of employment based on this guidance. 

DCMA Administrative Record for FY 2013 Furlough Appeals 050
If you have questions about this guidance, my point of contact is Mr. Seth Shulman, 

Chief, Compensation Division, Defense Civilian Personnel Advisory Service. He can be reached 

at (571) 372-1617, or seth.shulman@cprns.osd.mil. 

lf~i" JY(- B~ Paige Hinkle-Bowles 

Deputy Assistant Secretary 

Civilian Personnel Policy· 

2 

DCMA Administrative Record for FY 2013 Furlough Appeals 051
DISTRIBUTION: ASSISTANT G-I FOR CIVILIAN PERSONNEL POLICY 

(DEPARTMENT OF TilE ARMY) 

DEPUTY ASSIST ANT SECRETARY, CIVILIAN HUMAN RESOURCES 

(DEPARTMENT OF THE NAVY) 

DIRECTOR, PERSONNEL POLICY 

(DEPARTMENT OF AIR FORCE) 

DIRECTOR FOR MANPOWER AND PERSONNEL (11) 

(JOINT CHIEFS OF STAFF) 

DIRECTOR, PERSONNEL AND SECURITY 

(DEPARTMENT OF DEFENSE INSPECTOR GENERAL) 

DIRECTOR, HUMAN RESOURCES MANAGEMENT 

(DEFENSE COMMISSARY AGENCY) 

CHIEF, HUMAN RESOURCES MANAGEMENT DIVISION 

(DEFENSE CONTRACT AUDIT AGENCY) 

CHIEF, CIVILIAN PERSONNEL DIVISION 

(DEFENSE THREAT REDUCTION AGENCY) 

DIRECTOR, CIVILIAN HUMAN RESOURCES MANAGEMENT 

(UNIFORMED SERVICES UNIVERSITY OF THE HEAL Til 

SCIENCES) 

DIRECTOR FOR HUMAN RESOURCES 

(NATIONAL GUARD BUREAU) 

DIRECTOR FOR HUMAN RESOURCES (DEFENSE HUMAN 

RESOURCES ACTIVITY) 

DIRECTOR FOR CORPORATE RESOURCES 

(DEFENSE FINANCE AND ACCOUNTING SERVICE) 

DIRECTOR, MANPOWER PERSONNEL AND SECURITY 

(DEFENSE INFORMATION SYSTEMS AGENCY) 

CHIEF, OFFICE FOR HUMAN RESOURCES 

(DEFENSE INTELLIGENCE AGENCY) 

DIRECTOR, HUMAN RESOURCES OFFICER 

(DEFENSE SECURITY SERVICE) 

EXECUTIVE DIRECTOR, HUMAN RESOURCES 

(DEFENSE LOGISTICS AGENCY) 

DIRECTOR, HUMAN RESOURCES 

(NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY) 

DIRECTOR, HUMAN RESOURCES SERVICES 

(NATIONAL SECURITY AGENCY) 

DIRECTOR, HUMAN RESOURCES 

(DEPARTMENT OF DEFENSE EDUCATION ACTIVITY) 

DIRECTOR FOR HUMAN RESOURCES 

(WASHINGTON HEADQUARTERS SERVICES) 

EXECUTIVE DIRECTOR, HUMAN RESOURCES 

(DEFENSE CONTRACT MANAGEMENT AGENCY) 

3 

DCMA Administrative Record for FY 2013 Furlough Appeals 052
Defense.gov News Transcript: Department of Defense Background Briefing on Civilian F.,. Page I of 8 

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News Transcript 

Prvsenter: Senior Department of OefenMt Oflldala llay 14,2013 

Department of Defense Baekground Br!elfilg on Civilian Furloughs fronllhe pentagon 

MODERATOR: So !hank yru for jolrllr!g us this afternoon. 

AI yoo know, the seaetary /IQ made a decision with respect 10 furklugh&, whk:h he amoo.nce<~]ust about an IKKr ago. 8ut, we thought that you may 

haw aome ad!;litlooal questions about how the department came to this clacislon and llcMr the fmoughl will be Implemented. 

And so, we wanted to give you an oppato.nty to be able 10 talk to some of CJ.Jf"lnlor sullject matler experta on this. 

Pho_to ~ ... ,. 

Wook In Pilot<>•- -- It Is a backgrould briefingo, so we haVO proylded !he bona fides fa' eadl of <M" aenkr otrdllls he!v. bull guenfol' QU81tian ptJfpOS8S, we have senior 

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officiB! one and seniorolllcial two, If you want to direct ft to a partiaJlar ildMcbal, or you CIWl ask rot eilher one of !hem to a'ISW« a. 

Obviously, by their lilies !hera, they come -they have different experti58s 'Mthln the dep;lrtmoot. 

And our jHn Is we -you -I think most or you have gotlen the~ slalarnerrt on this, and ,Mlbably waldled What he said lo the department 

employees. So It's our plsn, realy, just 1o gat rlghl fnlo quostloot and take <:are of the busln&$s that you need to take care of and !hen get out or here. 

So, with that, Lila why don1 you start.,. oft then, and VHJtt go to Coll1n~ and then 1o Tony, and we'U eaew'-a we go from lheno. 

0: Senior Dele.-..e Olrociat Nt..mbw Ooa, the aactDtary alluded 1o this brieflydlri'lg lhls town hall, about next- ttis fiscal year 14. Cao you dear up 11 

litllu bit aOOut, there's " 1 pereent raise tot: Qv!llans, a,opan!nlly, In lhllt, but would sequaslra!ion -how- what doe• the outlook for nmo:t yur lock IQ<e. 

consldi!Mg sequestration 11ndSENIOR DEFENSE OFFICIAL: I wish I knew. I honestly don't There'& 11 wide rang1 or possllimies. We could geU budget 11Qf88menl. 11 brOIId one, In wllich case I thjnk we'd hllva 11 dec:ertt $hot at apprapriallOn near the president's budget luvel 

Both lhe Housa and Senata budget resolutions, these things they set- you're 18/lliliar'Mih them -ware at the ptesklanl's lavet torfOSCIII14. 

Al the other extreme, I gueu the proceaa could stay broken and we ooutd end up on a contrung rasolt.Aion 111 the sequester levels. 

M 1111" as the pay raise, sequester, doesn't- you can~ actually sffect raises 1'1!1" 118 In sequesll'lllion. So II Corlgresl wara lo llppi'OVe that 1 pen;ent 

raise, people would get ll 'Mtelher th~ will or no~ I clorl'l know. We propcsad 8 raise of 1 pereeo!for both military and ciY!Iiarlln fiScal year 14. but we also 

proposed 8 0.5 percent ...,;.., In 13 and that's not going to happen. 

Q: '..vould you- (tnaudllle)- two things. First off, do you know the total r"JJmber yet or how many c:lvlllaos this wilt Include, wj;h ell the &lCemptloos 

lhBt a'& now Included? And then, art you give us a aense of the ded&lorHnaklng behind making this art aeross.vta.boanf flXIough for au eivillaos despUa the 

fact that saveral of the services said that !hey may not have to, that they could fnd the money? 

tt saems - rm not- rm certainly not a budge! expert, buU seems liktl ir:sralatlvely unprecedented to say, "Welt. you know, Navy and M8ilne Colps, 

you doo'lllave to do this. bul we're going to make you do ~ 8tl'fW"Y·" And so can you tell u~ a little bll about the declsiorHnaking. pleesa? 

SENIOR DEFENSE OFFICIAL: Sura. There'' about 800,000 paid -civilians paid by tha Oepertment of Defense. About 120,000 will be exempt. so 

it's not really across the board. Thera are some catagoriQ of Bl«<mp!ions. And lllhou!d add, there are some Issues yet to be resolved with regard to 

intelligence personnel that couldlncraase that 120.000, but right now ir~ aboul15 parcenl 

kt terms or the dedsiDn. and spadfocetty like the Navy and some agendos. In any OI'QSII~IIon this broad, this complex, you're going to have 

organlzalloos with differing budgetary situatioos. And soma may tu.ve boon In a ailuatiDn where th~ could Oo leas furloughs. 

ft was Ot.M" judgment that we wanted to mlrlimil:a adverse affects on mission aaoss the enti"a departmeni. And so whet we '11111 do to the exlant we1ra 

perm~led by IIIW 1•. axcep1 fer lhDsa who are axcapted, we wm furlough tha remall'lder of our civiRansl!lld then move mllllll)' 8I'IIUld ID try to mlrtimlztt adverse 

aff&cts 011 readioen And we '11111 do probably SOII'Ill of lhsl n thiS r&pn:>grarnmlnlil that hasnl made~ up ID tha Hill ye~ bu! I hope wJl soon. AndW<:I may look at O!heroptiDIII 8S well. 

a: I dorlt undenttaod what -wt>eo you say "min&nlze adVarM elfec:ts 011 readiness," how doeS Increasing the number of civilians to be li.xtoughed 

mlnimil:e -the lmpaet -(Inaudible)? 

SENIOR DEFENSE OFFICIAl.: WeU, ifW<l- I!" the Navy has the funds, say, 1D avoid l<lfloughs. and now they 1\Jrtough, we may be able to move some 

mOOB)IIniO the other seMces tllel. have mora problems. And the Army and lha Navy deflllllely need to flx!ough, and thB)I're the ones that have mada the big cuts In trai"lilg and readin&lls -the Army, Navy. Tile Air Fa""'. I should say, has stopped !lying In 12 5QUadrtll18. Army has canceled its combat training 

rolalion for the most part, et c;etera. 

http://www.defeose.gov/transcripts/traoscript.aspx?transcriptid=5239 8/14/2013 

DCMA Administrative Record for FY 2013 Furlough Appeals 053
Defense.gov News Transcript: Department of Defense Backgronnd Briefing on Civilian F... Page 2 of 8 

0: - (inaudible) -money that would, ff they wwe furtoughiog Ovilians n IM Navy and Maline Corps, &Om a of that money that will be saved from the 

furloughs will now go to the Amly - (inalldible)? 

SENIOR DEFENSE OFFICIAL: Right, or we maY just and up dolng a fdtle less for the Navy, and the repi'Cigmmmlrlg is probably the way we do it. 

0: Can y<>u ro<:oncilfl !he figures on total runberof civilians? From 1ha podUn a m.mber of times, clfl<:lals have stated that ;rs about 750,000 who 

would be ellgble. Yoo)ust sa\<1800,000. 

SENIOR DEFENSE OFFICIAL: The 800,000 indudes foreign naUonal emplcyees. Theta are about 50,000 of them. So H depends -foreign na1ional 

employees are ;n the 800,000. so the 750,000 would excluda fO!eign nstional empklyeas. 

0: But for purposes of clear reporting, n•s 750,000 minus about 120,000. 

SENIOR DEFENSE OFFICIAL: No, I>Ciually It's 000,000 minus 120,000 because we've exempted the foreign national employees. You're looking st me- son n·s 750,000, it would be less 70,000, ~I'm ao;ng llv:tmath ~ghL 

So, all right? 

0: - {inaudibte) - really a ftgure of7SO.ooo- (~udible). 

SENIOR DEFENSE OFFICTAl: And, you knew, yoo can define II in lois of differen1 ways. And you couk:llogically BJCclude foreign na!ionals. They're 

nol U.S. citizens. obviously. But they am -some of them ata paid by the department and so wa normally include them in our totals. 

Q: 1 have a $OOOI1d quesTion. The appropriallons biU requests a reporllo Congress In sadion 807 - 0007, laying oul the elfecls of sequesTration kif 

baselinB purposes, kif raprogmmmlng- purposea. liloham does that sian<!? And wiU thai spell oul for the Industry wllo ca.-as how their particular programs will 

lis c:ut by sequestration? 

SENIOR DEFENSE OFFICIAL: Yeah,~ should. I m&a'l, we need lode- (inaud•ble)- 14 -I think I'Ve gollhat right- Senior Defense Official One isn1 entirely sura of !his answer so I'll gel tlack to you iftm wrong. But I believe thai it's the baseline rapor1 !hal we do before. And it's almost done. You can 

imagine !hat ~ is a lillie trickier 10 do this year, but ~is am~ dona. 

And if I'm wrong about that, give ma a chance tow~ through- {inaudiblo) -and I'll corrac!ll 

0: Thank you. 

MODERATOR: let's - Iars- finish the first rtiW befote we move lo lha second rrm. so we'll go to Luis and then we'll go over ham, and then wa•n M 

the second rr:m. I tlink we'll gat IIV"'YbodY !hal has quesUons. 

a: so justlo cli>"rfy, every single service Is now gonna have furloughs? And wer~~ltla ravels of civilians adjusted will-in each 011e? r mean, which one 

comes off gelling better? 

SENIOR DEFENSE OFFICIAL: Well, I don't know the answer lo that, actually, Yes, they'll aU have some furloughs for sure. I don't know who would 

have the highest parcentaga exemptions. It-rt - I'm just not sure. I naed lo chad< lhat 

We didn't really think about H in those !arms, frankly. 

0: But the Na"}' proposal was basically we can do wHhout the furloughs. Now they will hava lo cany out these furloughs, lhat's fi9ht? 

SENIOR DEFENSE OFFICIAL: Correct. Now we a"' excludiOg'lheir shipyard workers. These ar~~ the people that work in publiC shipyards and do 

nuclear maintenance. And we did that for m<ssion "'IISOflS. Irs a vary long planning process. And the"''re - there'm -a V91Y long periOd for maintananca. 

VefY I<Hie abiliTy to catch up, and we're dealing with ~\t>marinas and can18(S, which are small in number but high In value. And so on mission grounds we decided that we would exempt shipyerd WO<kers. 

MODERATOR: Go ever he"' to the right 

0: Theoks. I want to make su"' that I understlrldthe runbers correc;t~y. 'Mlen I added up the tabla !hats in this memo, comes out to aboul68,000 

worJ<ers. Thatlilcludas 11.000 OODEA [Department of Defense Education Aclivily] employees. IW !hay considered eKemptions or am they semi examp~ cr 

(CROSSTALK) 

SENIOR DEFENSE OFFICIAL: They are considered semi BJCempt. Them was a group DfOODEA employees that will be axempl and then the 

taacl1ers and the fac:u~y will be furloughed ror a tots! of five days at the begimlng of next school y&ar. 

Qu- wmm~marrt 10 -to our sa!VIca men and women who have children In thase schools ia that they will get a acaad~ad school year. Summer school 

wm be held, and then the begiMing of ne>ct school y~we will work with five furlough days. 

0: So follow-<~p. - {llaOO•ble) -out of the 68,000 -that was my rcughcalc;vlaUon - and !he 50,000 foreign nationals, is that where you gat the 

120,000-

(CROSSTALK) 

SENIOR DEFENSE OFFtCTAl: Soundssbou! righl tome. 

SENIOR DEFENSE OFFICIAL: Adds up. r havoo1 done that calc:ula!lorl either, a~h the nice gentleman who did all lhasa numbers is in -

(inaudible). So hB gave me the 120,000 and I think Irs right. 

MODERATOR: -(inaudible) -on thO fnt row? If not wejJ move- lora just go from my right lo left. So go ahead. 

a: Senior Defense OffiCial Two- r guess, eitharcf you- you just met1f10r1Bd frYe IUrlough days, as I understand it, for teachers. 

SENIOR DEFENSE OFFICIAL: ForDODEA. 

a: Right. 

Aside from the runber of people to be furloughed. are - is -are the- <s lha length of time of each particular furlough different or is it lha same? Am 

If it's d<l'lerent, whars the range of differenca- you know, one day to 14 days to- I mean, do you know tha parameters? 

http://www.defense.gov/transcripts/transcript.aspx?transcriptid~5239 8114/2013 

DCMA Administrative Record for FY 2013 Furlough Appeals 054
Defense.gov News Transcript: Deparbnent of Defense Background Briefing on Civilian F ... Page 3 of8 

SENIOR DEFENSE OFFICIAL: The-the gOOg VI proposition is tllat ltliJ majority of our employees Who wll be ~ed will be ~ up 1o 11 

days. And that's what tho secretarys reuer sald. DODEA is a &pecial category because of having very specific rules for educatifO Blld makrtg sore \hal they 

have an acaediled school year. 

They're, I think- I l'll!ed )'OOr cl8fillcatlon oollis. I think PFPA {Fentegon Force Proledion Aoeocy], the Pentagon police, might be furloughed a little 

dlfforenllySENIOR DEFENSE OFFICIAL: rm nol sura_ 

SENIOR DEFENSE OFFICIAL: Yeah. So I <:a1 get back to you en !:hal But the going-In proposition Is 11 da)lllSENIOR DEFENSE OFFICIAL: Yeah, forth& (rest m~ority hare 81 11. 

SENIOR DEFENSE OFFICIAL: Yeah, for11. 

Q: - (lnaudiblfl) -said up to 11 days. Does !hal meanltmight beonedaycrlwo days? 

SENIOR DEFENSE OFFICIAL: No, I think thai-what I'm saying lslilal righlncr.v our employees w!M be furlouQhed for 11 dsys. 

SENIOR DEFENSE OFFICIAl.:. Remember, Saaelary lfegal did osy ths! ~we C8"l and our budget p8mlita, 81 the end of the )'9'11" we may slop a bit 

aa~. And, the!Vfore, the up to 11. It could be alfWebit lass than 11. 

lhls? 

SENIOR DEFENSE OFFICIAL: rm sorry, The Oepartrnent or Del'enu Education Ae1ivity. 

SENIOR DEFENSE OFFICIAL: Come on, speak: Pentagon. (l.augh!w.) 

(CROSSTAU() 

Q: -eight years heno. 

SENIOR DEFENSE OFFICIAL: Eight years. Well, I don't know, 

lilt makes you feel bel!ar, I forge! them. 

SENIOR DEFENSE OFFICIAL: We have 8 wflola system oftnancial managamant lila\ !hay-\hallha employees c;:an eartaWyw«k tiYough. And, In 

fact. n was just recently thai we had a vary latgelnancial management fl!lrhere In the Penlagcn for them. 

0: But nolhlrlg speciG/ to this furlough ~ 

SENIOR DEFENSE OFFICIAL: No, it's not -lltla!evw we hava will oertaill)l take cere of that financial management arena 

Q; I have a couple questions. One, first for $econd Senior Defense Oflidal Two. 'Miars the anUcipa!ad Impact 011 the department's operations 

because c( thaH furloughs? 

SENIOR DEFENSE OFFICIAL: Weill think lhallhe anlicipalea' fmP8C:I is- can <;:1etr.1y be the morale of 01r employan I will tall you that we value 

fN8tY !ingla civilian employaa that-that works In the Department of Defense . .And 8S percent of them work cut.kle ollhe National Capjtal Region, and II1BY 

all add value to lhe mission lhet we do as a lot81 fofao. And lheYre <::leat1y pan <rf thai IolBI fo<oe. 

But when an fndivklual loses 20 perwnt <rf lheir pay, which, lhars what wiU happen when we furlough. \hal has to lmpad lhem, dearly, financially and 

clearly morels-win. 

r believe \hal \hay wnl COI'I!irua to partonn 10 en acrn~able mamar. Sui rm so.n that there witt be some morale Jmpaot. 

SENIOR DEFENSE OFFICIAL: I'd like to add lo that. I mean, lhasa people aren'l doing Powerf>onl 8lldes in the Pertagon. I mallll, they're mostly 

outsifa of lhe Pentagon. A$ (inaudobla) aid. \hay fix 01r ahP, our tanko, QUI' plenas. They stair Qlll'hospllels. lhay'ra teachers in our $Chools. 

Elgh!y pei'ClMI of lhe firiiW1081 manage,. in the department are cMtlans. And it's probably sin liar to \hal for contracting. 

We'ru going lo have p(Cblema In terms of getliiQ money obligated, In eJosa-out, penonnel81affs to handle fllfooghs. We're going to delay 

maintenance. I think we will sa~ousl)l adv<!rsaly alfact lhe produc!WI!y in almost allaeas - support 8'889 of the Dapartman! of Derensa. 

This Is 8 - it's 1101 somath!ng we want«! to do. 

1 hope -I hope thars clear from the sacretarys memo, but rd ~a to und81SC0i8 il 

Q: -(Inaudible) -the 20 percent figure \hal you just eieed? 

SENIOR DEFENSE OFFICIAL: 'Miat? 

a: 20 percent of their pay? 

SENIOR DEFENSE OFFICIAL: We~. ifthetra furloughed one day a week every week, thars 20 percent of their pa)'Chedl. 

0: How doe, lhal tie in with the 11 dayl.l? I'm SOlly. 

SENIOR DEFENSE OFFICIAL: OM day a weok, a will begin oo July Slh. And so 0<1!1 day a wee!<, they'll lose 20 percanl of their pay -of their weukly 

pay, right. 

a: I understand lha~ tu I thought you said 11 ft.riough day3 for the entire fiscal year. 

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DCMA Administrative Record for FY 2013 Furlough Appeals 055
Defense.gov News Transcript: Department of Defense Background Briefmg on Civilian F... Page 4 of 8 

SENIOR DEFENSE OFFICIAL: SIXEI. And durilg those - dOOng those weeks when they're furtoughed, eat:h week they"ll lose 20 percent 

{CROSSTALK) 

SENIOR DEFENSE OFFICIAl: Jl's not the whole year. 

{CROSSTALK) 

SENIOR DEFENSE OFFICIAl: Yeah, righl 

{CROSSTALK) 

Q: And do you anticfPata any impact - are you seeing any impact on attrition? I mean, are people retiring, voluntarily separeting, at this polrt? Do 

ycu anlicipata any? 

SENIOR DEFENSE OFFICIAL: Right now. we don't see a mejor Impact on thai, of people ratiring. rm sure that people will reUre, but wa haven1 seen 

a push tawards lhal 

SENIOR DEFENSE OFFICIAl: I might give yoo an anecdotaL We had one ind'Nidt~al that left my organ!zstil!fl and said ~ wes becausa of this, bull 

think he would have ret~ed alaome point fairly soon, So I wouldn1 exlrepolate; 7.8 pert:e11t unamploymen~ or whatever it Is right now. does Cteal& an 

eowronmsnl where there aren't a lot of jobs out there. · 

a: can you go back to what happens on the begi'lning of October, assuming you have astraight CR [contin<Jing resolution) that - then we just end 

sequester. IMlat'a the anticipated impoot on DOD's budget? And what are you doing at this point to prepare for it? Is them a posslbilityfurtOIJitls could 

conlh.Je in FY [~seal year) 14? 

SENIOR DEFENSE OFFICIAL: WeU. in tenns- ~ would be about a $:52 bimon cut below our request if we remain at sequester revels. So it wwr be 

Sl)(iQOJS. Secretary Ha~l has direded tho strategi= choices and management. review, lhe SCMR as we call i~ and it Is looking at the kinds of choices wa wii! 

have to make. 

As Sacretsry Hagel said today, we can1 nda out ti.rllughs, but we'ra sure going to do ou- demdast 10 avoid them. And lhls tinte, we will have more 

lima to prepare and we are thinking ac:tively about how, ff we have to, we wouk! acoomrnodala that So, as I said, I think wa'n do everything we can to avoid 

them. 

a: And lastly, on the shipyard rucemption, I'm anady hearing complaints that tha$e ere polillcally motivated; that members of Congrass who 

reprasenl thoSe shipyards were very vocal in defense o/ them. Haw do you re:spond 10 that? 

SENIOR DEFENSE OFFICIAl: Well, there wm be lob of members of Congrau who will oppDUI o!her ones, too. Sut it was based on mission 

grOUlds. I mean, we'ra talking about overhauls that- that last months, somatlmes more than a yaM. 1hay ara planned wall in advance. Had we delayed 

them, we would have - wa have very lltUe abjfity to make a up. These are highly tedwlical. We're talking aOOUI nuclear safety. All these worl<ars do nuclear 

maintenance. So that we- we coukln~just brilg n other people to make H up when we had mora funds. 1hay wouldn't have the tm'nlng. 

And so we wera really lalklng about seriously ad'lersely affocting our ability to deploy carriers end submarines. And we made a decision that that was 

too serious an advefsa ef!ecl on mission. 

{CROSSTALK) 

Q: - {Inaudible)- follow up on 008 of lllo5a last ones. &dually. {InaUdible) -the thlnki.-.g that furloughs are soma poteotial pos.sibility in 14. Is that a 

change? Because a senMJr dafunse otf!Cia~ who may or may not be in this room, has said baiera that you just would not do them io 14. You'd probably do 

RIFs [reductions ln force) or other knds of-{insudible), 

SENIOR DEFENSE OFFICIAL: Well, that was probably senior defense official one. speal<ng with hfs haar1, oat necessarily his head. J sure hope we 

don't, personally, butt understand we can't knaw the futtxe fully. But rn U'ldat&COIB what Saaatary Hagel said juet a few minutes ago. We'ra going 10 dO our 

damdB!It to avoid lt. 

a: Than quickly on the e.afaty o/ t~e and property exemptions, the Department of Navy has far and away the mostln that category - 7,500. Nobody 

ersa is evan dose. The next closest is 900 in the Air Fon:6 and !hera's a big GSP behind them. v.tly are there so many in the OON [Department of Navy]? 

SENIOR DEFENSE OFFICIAL: We'Ve got a lot of -I think there were s.hipyard ES.sues. I'm trying to remember now. This is a couple months ago wa 

did this. 

1 believe thara wara ln - In mx:lear safety and ship iSsues, but rd - I think t better gat bad!. to you with a better answer because I'm not - rm not 

lrackiJo fully. Let me get beck to you. 

0: let's go here and than we'll work the third and fourth row. 

Q: 1 just have 008 question. 1ve there -there are rul&s against civilian emp!Qyees working other jobs, ~ke. lel's say they wanted to work one deY s 

weak. Aren't there -can you describe what those rules are or-

(CROSSTALK) 

a: - if you're sml working for the govenvnan~ so even though they're off that dey, they're still und..- those rules, right? So whars the -

SENIOR DEFENSE OFFICIAL: They are sWI go•ernmant employees. Al>solutely. Even though that tlley are ~ for lhat one day. And OPM 

[Off'!a! of Personnel Management] has spacifoc rules in place, and they arathe Web sae al:>out what !hay are. 

There is -there is e- a waiver. ff you will, lor add~~~ employment, that the employee would need to follow, should they want to - to go through 

that process. 

Q: -{inaudible)-

SENIOR DEFENSE OFFICIAL: ! would have ll"t back to you. SUI rt- we follow- they ara not DOD !Department of Defense] rules, thay are OPM 

rules. 

MODERATOR: You gtly$ in the bacl< of the room. I saw a few hands. Go ahead. 

0: - {lnaudibla) -the memo, but when do the leHers QO out? 

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Defense.gov News Transcript: Department of Defense Background Briefing on Civilian F ... Page 5 of8 

SENIOR DEFENSE OFFICIAL: Tiley go out be1Ween the 28th of May anc!lhe 5th of Jooe. 

0; And lho5e receiving them have seven days to reply. Does that mean thai !hay can -they can make an argument, you know, don't- don't flxbugh me, fu1ough 80111ebody el$8? v.tlBI1 

SENIOR DEFENSE OFFICIAL: They can respond. Fh~ lhey can reopood to the designated - their d9$1gnated offic:lalln lhslseven days with 

iusf&slion of why 1/lay should be polantlally in !ha lllCempl category. 

Tha designated olliclal willrovisw al of !hatjustillcatioo and make a dedsian. 

0: 'M1o sends the leHers? Wlo signs the IIIII«$? 'Mio do they go out from? 

SENIOR DEFENSE OFFICIAL: lfsa deslgnaled cfficla~ which is Glower level, rH use the ta:m "CCmmander." They're not all commanders. 

Q; Can ycu just -can you des<:ribe. what do lha letlera actually "f? 

SENIOR DEFENSE OFFICIAL: The lotters 81'8 very spec/fie. Thay say that yoo w~l be- wt/re proposing a fU1oogh for X amOU'II ol days, $1artlng at 

X -at a cartaln lima, which would be on 8 July. ArtJ theYre addressad to each lndiY!dual employ&e. 

So irs nola - irs a- il'e a template letter. But HCh indtvkbal employee getS their own specific letter. 

MODERATOR; lei'S go over here and then bad! and then bac:k 

O: 'Mien H comes to !he aclulll ehooshg of a day, do the empbyees get some saY 11 what day they get oil? AAd at the same time, as you -you aa an agency, I mean, can we 8leped that 20 peteent cf lha 660,000 will be gone. on 1111)' given day, atartlng July 8th? 

Uke how are you -haw ara ~managing havilg ano<4l people lhal are on? 

SENIOR DEFENSE OFFICIAL: For «<ample, let me give you an aJCIII'Iple of commissariell, Commissaries more !han Mlelywi! be cbsGd one day a 

weak. lheywilt, more than likely, &elect one day tlvci.9lout au !he o:~~~~minaty S)'!llem. And they will do that bec:<luso lhal is -everybody will know when 

lhal day 18. They can plan !heir ~hopping atOind lhat particular day. And they ox.ld Qmft the delillerles on that particular day. 

So that would bee maeon lhal commlneOOs WOJid cb$ll on one particulllf day. 

The hospitals, the school svsteffls, ,PO(antlally lila dt!pQis, will be jtldged by lhek' personal supefVisor on which day $9V«<II employees could poten!lally 

be fu1oughed. so we won't dose e hospital. We won~ dose the depot. We'l keep lhilgs running, but the day will be l'lllgO!Iatlld by lhll hdMdual super -or 

dellgnaJed offlclal. 

a: How much monav doyouthlri< yrxJra golngtosaveifyoukeepall11 days-fiKiough 11 daya? How much money is lhat? 

SENIOR DE~ENSE OFFICIAl: $1.8 billiol'l for the 11 days, wfth the exeeptlons lhet we're planning now. 

(CROSSTALK) 

SENIOR DEFENSE OFFICIAL: Yes, 'blllon" withe 'b." 

a: Sacretery Hagel laft open the possibility of reducing this A.rthar. 'Mlat would have to happen to make that happen this year, short of sequestration .. .,_ 

SENIOR DEFENSE OFFICIAL: Well, fii'B!, nola"ge, unantic:lpalad costs W<lUid be very nice. The Uni!Bd Stales c'ongmss epprtl'o"ing the majority. if 

notal of the l"&pi"Ogltlmming lhall hclpe we'll sand to them wlhin a few days. And than wrtra going 1o just have to put our heads together and try to scoop up 

every dollllfwe e.... toward the end. 

I mean, It's a decantral!zed orgMizatlon and we deal, aspedafv with operations and mantenGnca dollats, and thou""' !he mejor 0r1e11 effected 

hete. And so oU'"eonvnands pass ~ out to lhlllr besea. lheYra executing II. We're going to have to work dosoly with them toward the end of the year to see 

whets they am aid Whether or not we can make this happen. 

But I'm CCIIr1&g on the Incentives. Allar ell, lhc¥m !he employers of mSfl)" of these ciYilians, 10 rm hclpi">g. and I ttink they wil work with us and we'll 

SIHI \Ohat we can do. 

0: You meniioned lhallhe teq.llramant to have an the sasvices implement some lOYal of furlough Is to actli&vtllarijar savings. How do you prlorit~ 

lhe distribution of those savings? In other words, islt raadi'leas? How do vou priorilla? 

SENIOR DEFENSE OFFICIAL: Wetl, first I want to make clear that the overall goal is to m~im!%11 adverse effects on missions. And I stale n that way 

b&CII\Isa we are devastating the maci"Ulells of lhls mii~IIIY right now, bvl we want to milimlze that 

Subject to meetng thai gael. consistency and la"mass was SQmethinel we conskleiBd. So as tho3a decisions were msde, )'1)11 know, ~a 8GfVice has 

mora readiless problema than another one, we might -we probably wouldn't take money from them. We'd jus! reprogram money less Into their- thek' 

par1icular eceaunt IVld llhlnk you'~ 11111 some oflhal as we send this reprogramming forward. 

So the g0111 if to meet lhal mission, mlni'nitilg adverse eft"ects, partlcula1y madness. ~ already made the euts we believe we can. In laclliUea 

melnt9111111Ce, we"Ve essentlalty stoppad n 8JCo;epl lor 3Sfety of lite end properly. WG've cut back on base operating costs. WG have hiring freezas. no1 across 

lhe board, bul. many ol them era In a11ect. 

1 mean, we've done a let of those tasks. Irs really now dawn to trailing Dnd malnt8tliii"IC:e. Irs actually mora m81rllenance at the moment ~·ve 

mede about as many ttairmg cuts es we can. end still meet ll&lll:ls In Afghanistan and depioym<:ln!s. So wdra really now dawn to further cuts would come out 

of msntar.anca, which buys "" prob~s in flscal14. II means we won'! have !he- weapons systems ready to deploy. 

So, we'll use lhe crilerta minimizing !hose aspect11. 

(CROSSTALK) 

MODERATOR: -(lnaudible)-wartto mal< a suraev!llyDnalhathadeqoostlon, had a chenca lo ask lhem. We'!Jsae nwe"ve go1 a fewmore-

(n&OObla). 

0: ihanks. (lnauclb!a)- the empklyeas whtl galluriQughed -(inaudible) - wr~a e IaUer slating why they shouldn't be futloughad Is financial 

hardship a ""'"on !hal !hay mlghC bo considered? 

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SENIOR DEFENSE OFFICIAL: No. ifs truly not, unfor!unately. You Mow. this is a very, very toogh decision and we o..nderstand that it will craale 

financial hardships across the boafd But !hat is not th&- a sura reason for -tot 8Xempting frQm furlougt1. ' 

a: So what would be some of the raasoos thai would? 

SENIOR OEFENSE OFFICIAl: Boy, I rea~y- yau know, at the lop oi my head - I don't know- {inaudible) - n yau can help rna out hera but 1 really 

can't-can1thinkofa -of a raaSOI11ightnow. ' 

I think the inc:tillk!ual supervisor- orlha indivkb..,l designated official would have to ravO.W what the employ&e &Ubmil$ to - lo weigh that against what he or she needs 10 do mission-wise in <><dar to accompjWJihat mission, 

SENIOR DEFENSE OFFICIAL: And I SUPJl(lse !hera could be a ciro.rnstaoce that where a person had a miss;on-critical asped that we jusl couldn'l 

recognize fran -from her<!, and that- thai a local commarnler mlghtlaka that ;,to aCCOU'll. 

And, Indeed, if you mila' the memo, they have soma ve;y small euthori1y 10 do SQme furlOUgh exemp1ions on their own. 

let me jusl say, SBilioo' Defanse Offlclal One would li<e to say, this conversation is kind of bloodless. And I understand we're tryjng 10 answer your 

questions. But I want to repeat wtlal you may have heard me say before, this is one of the most d.mstefut Iaska rve had ;, moo-a than 30 years of 

government service. 

I mean, we are- we depend on lhasa people to- to do all the things I milntioned befor<l. And many of them wotlt for me- nol many of them, but a 

sman numbers work for me. And I - I jusl -I find ~ vety distasleful I mean, I just want to- Senioo- OffiCial One woold Joke to be on I'BCO(d as not being 

bloodless. 

And now, rn gobadr.tobeingthe- [llllltJCiibie). (Laughter.) 

SENIOR DEFENSE OFFICIAL: But Senior Omclal Two woold lldlo what you sald, lhatlrsa -irs a YBtY pailful process. And it - It wasn1 made 

~ghlly; it was made with a lot of paln and anguish. · 

MODERATOR: All rigl1t - (Otaudoble) - Lat'a lake a couple real quid< ones, if we have0: Jusl a quick question. You mentioned at tha beg1Mi1g some posslble, dowMhe·road changes, something 81 DIA. I~ that - (inaudible)-

lnteiUgence, or -

(CROSSTALK) 

SENIOR OEFENSE OFFICIAl.: We need to wO<k out with the national inlelligance lclk8 BJclldly whet furloo,oghs the people funded by the national 

intellogence program, if any, have been. And they were not inclUded in the 120,000 estimate. 

0: Right. llhought- I gooss I thought I'd seen something where those- In 1he MIP [Mi~tary Intelligence Progawn] group would have furloughs and 

those In NIP [Nalionallntelllgence ProQillmJ would not Is that -

(CROSSTALK) 

SENIOR DEFENSE OFFICIAl.: 'Mlat lha memo' seys /S those in NIP, N-I.P, would be datermloed by the d~ectcr of national inle~igence_ And I don't 

know -1 mean I think he's -he's made pretty clear where he's headinQ, but I donl know if he's formally seld a. Ancll thought, heck, ask them, so that we can 

adjust our ml'l1ben. 

Q: Okay. So thars lhe part you're s.ayio(l is not sure. But enyone - are there e~emptions in- wijhjn the mil~ary? 

(CROSSTALK) 

SENIOR OEFENSE OFFICIAl: I dcn1 thii-k them are more. t mean, them may be a few of 1lleOO onesles and lwosies. And, you know, as they go 

bad< oot and - I don't -but I don1 think lhere are going to be ~changes. 

1 mean, we wam 10 give -we don1 want to run this with a 6,ll!Xknile SQ'BWd'iver ~ W9 can avoid it We r&elly wanl otr commanders to have some 

latitude. But we will -I also don~ expeet !hem to come back and say r want 5,000 moo-a 8)(81llpfoons. So them better be a heck ore good reason. 

(CROSSTALK) 

0: - (inaudible) -at one point - (inaudible)- a lot of 1he membefs of Congress and public are going to say, ''Mty the hell don't you cut oul an F-35 Of a Jntoral combat shlp or ground combat vehicle, ~a inSiolad of people?' 

This is not a lot of money for this department. Irs kind of staggeringly low amount And yet it"S causing all this pain - (inaudible). And I empathize 

with that. 

SENIOR DEFENSE OFFICIAL WeU, forst, wewot~ldn't haoe theauthoritylodo lhal, Tony, I mean, becalts.e thiS sequestration Is by ac;:count. And so, 

I have to get ft out of the O&M [Operations and Manegemeot )aceount. 

And 1 could only reprogram, but I'm us'ong avery dime- almost every dime ;, lmnsfer authority I have, so I wouldn't be able to toke anymore out of 

lnvestmenl 

And, second, 1 mean the problem is we've already made so many cuts. we've cut out almost all facilities malnlenance. We've stepped fiy;,g at 12 

combal-codad squadrons. We've cut cut ell training /Oialions, 8Xcepl for deploying U'lits at - at lrwfn and Polk. 

We've done -and -and a whole lot of otheraxtras I read otr weekly report and a just -dozens d 8Xercises w<lre stopping. We've stepped most 

ceremonial everything pretty much.' 

(CROSSTALK) 

SENIOR DEFENSE OFFICIAL So wdve already done au these things. lfw& were gonna gat that S1.8 bUilon- I krlaw it doesn't sound toke much - '" 

8 three-month period or even the six thai we have left, we would haoe had 10 go alter mere mainlananca or further shutdowns of ~r~its. And I think Secretary 

Hagel decided, and I befiBVe it was the righl del:l~icn. thai that isn~ something we ought to do -would go too far. 

a: (otr mic) lhls is - (inatJCiible) - didn1 have discretion to Cllt across from different accounts. You had to-

(CROSSTALK) 

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SENIOR DEFENSE OFFICIAl: Well, II certairlly didn't help. I mean, I would have preferred to have more lnltlsfer authority, We asked fori~ and it 

justdd11 happen and 1rs not goilg to happen. so~ eertailly didn1 help. 

Q: The number of days -said 11. All things being perfect \award the end ol'the year, whether lhere're eny llucluatlons - (Inaudible) - c;:an lh& 

number fluctuate above 11 or you're only talking about lluduations belowSENIOR DEFENSE OFFICIAL; No. 

(CROSSTALK) 

SENIOR DEFENSE OFFICIAL: Below. 

SENIOR DEFENSE OFFICIAl: Ire up lo 11. 

0: So eleven is the top lioe -

SENIOR DEFENSE OFFICIAL: Ril!hl 

0: Thanks. 

MODERATOR: The last question today. 

Q: And to fellow up on Tony's quo'1ioo &boullho relllllvely 11111aD amot.nt of money oompara!Wely -O>mpared to the amount of the sequesler, is there 

- I was talking Ia one union offiCial who SIIW this as a poitk:8!ly drMJn dadsion; !hat DOD hopes lhal now people on the Hill will respond by cenceling !he 

~est« or mitigating the Impact Oa you help with lha!? And is -was lhat a motive? 

SENIOR DEFENSE OFFICIAL: That doean'l sen llc& ire goma happlo to me. I mean, fd SU'flllke them to, but I'm not antieipotlng l. 

And, you know, I can tell p.~, ~was not polillcal)' motivated. I wa•ln oo these meetings. We wwe aayilg, 'All rigtt, what am we gonna do? How 

much m0111 m8lnlenanca are we goons cun Mia! &n~we QOMa all? A1u we gonna go after aviation marntananc:e? Are we gonna start CUlling ba$8 ops by 

cia~ airfields?' 

And we just fell thatlhoaa steps which we WO!Jd hiiYe had to taka to get !hat $1.8 billion, ~n everything elsa wa'vu dona, would hava had aericlu9 actverse Bf!ac:ts on OU' mission, ,and tll!lr' why we mads this decision. 

MOOI:RATOR: Okay, I WllOilo thank you all for coming !Oday. Wl'l have takan 8 couple 0( questions. The press offiee will havalll!l answers to the 

taken quastiona this afternoon So- (Inaudible)- righl here as wan 81-(Inaudible)- are tag-learning lh!$1n 1t1e press oii'Joe. so on lhl> taken quesllon9 11 

you went to c:hac;k back with them they'll hava lhem fcryw. 

Thanks very much. 

~ pr!n!or·f11end!y IJernloo llDI fmall A Cgoy 

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http://www.defense.gov/transcripts/traoscript.aspx?transcriptid=5239 8/14/2013 

DCMA Administrative Record for FY 2013 Furlough Appeals 059
SECRETARY OF DEFENSE 

1000 DEFENSE PENTAGON 

WASHINGTON, DC 20301-1000 

MAY 1 4 Z013 

MEMORANDUM FOR SECRETARIES OF THE MIUTARY DEPARTMENTS 

SUBJECT: Furlough. 

CHAIRMANOFTHEJOlNTCHIEFSOF STAFF . 

UNDER SECRETARIES OF DEFENSE 

DEPUlY CHIBFMANAGEMBNt OFFICER 

CH)llJJS OF THEMIUTARYSBl!.VICBS 

COMMANDBl!.s OF THE COMBATANT COMMANDS 

CHIEF OF THENATIONAL.GUARD BUREAU 

DIRECToR, .COST ASSESsMENT AND l'ROGRAM 

EVALUATION 

DIRB<:'J'O){. OPEMTIONAL TEST~ EVALUATION' 

GENERAVCOI)I'fSEL OF'nfB.J)g>Al!,~QF.IlBFEN~~. · . 

·INSPECTO!l:GENBRAL<WTHEDEPAR:TMBNT OF DEFENSE 

ASSISTANT SBCRETAIUBS OFbEFENSB 

DEI'ARTMBNtOFDEFltNSBCHIEFINFORMATIONOFFICER' 

ASSISTANts TO TilE SECRETARY OF DEFENSE 

DIRECTOR,ADMINtS'I'RATIOJ-1 AND M;\NAGEMEN'T 

DIRECTOR, NET AsSESsMENT . . ··. 

DIRBCTORs'()F THEDEE'ENSEAGENC!Jl.S. 

·DIRECTORS OF TfiE Dbt>'FIELD .1\.c'ttVrriEs . 

This memo directs defenSe lllllllagers to prepare to furloughJJIO!ll Dq>a!:lmeirt of Defense 

(DoD) civilians for up to 11 days, The sche<iule for furlougbs,,imd·SOID<>'~~~ns, are 

described later in tbis•mll!llO .and in the attachment. !•have.~ this decision vei:y rilltll;I!I!Jtly, 

because I know that the fildoughs Win tllsttlpt lives andjmpactboD o~OIIs, (ill~ With• 

the. senior civilian and.lirlJiiary leadership of the Department, have•spentconsidetable tin16 

reviewing information related to the need for furloughs,aod I would like to share.with you the 

reasoning that led me to this difficult de<iision. 

Major budgetary shortfall$ drove the basic furlough de<iision. Qn Maid> 1, sequeslralion 

went into effect across the federsl govemment DoD's budget forFY 2013 WIIS redUCed by $37 

billion, including $20 billion in the operation and maintenance(O&M) lleeounts that paym)my 

of our civilian worl<ers. In addition, because our wartime blldget is also subject to sequeS1ration, 

we must utilize funds originally blldgeted for other purposes in olller to provide.om troops at war 

with every resouroe they need. To compound our problems, whClll we estimaW<l future wartime 

operating costs more than a year ago, we planned on fuel costs below what we are currently 

experiencing. Taken together, all these factors lead to .a shortfall in our O&M accounts of more 

than $30 billion- a level that exceeds 15 percent of our budget request, withfewerthansix 

months left in the fiscal year in which to accommodare this dramatic reduction in available 

resources. 

DCMA Administrative Record for FY 2013 Furlough Appeals 060
We are taking actions to reduce this shortfall. One main priority has governed our 

decisions: to minimize the adverse effects on our-military mission, including military readiness. 

With this in mind, early this calendar year we cut back sharply on facilities maintenance and 

worked to hold down base operating costs- decisions we knew would build a backlog of 

maintenance and adversely affeci our bases. We are also preparing a request to Congress that 

would permit us to shift some funding from investment and military personnel accounts into the 

O&M accounts. If approved by Congress, this Initiative- known as a reprogremming -would 

help close the gap. 

But these actions are not en0ugh. We have begun making sharp cuts in the training and 

maintenance of our operating forees- cutbacks that are seriously harming military readiness. 

The Army, for example, has terminated most remaining FY 2013 training rotations at its combat 

training centers. The Air Force has or soon will stop all flying at about one-third ofits combatcoded squadrons in the active forces. The Navy and Marine Corps are cutting back on training 

and on deployments - including a' decision not to .send a second carrier slrike group to the Gulf. 

These are only a few of the many cutbacks we have made in training and maintenance. These 

actions reduce our ability to handle future military contingency needs, both this year and in 

subsequent years. 

Even after taking all these actions, we are still short of needed operating fundsfor FY 

2013, and we carmot rule out unexpected increases in costs during the next few months. So we 

confront a difficult set of trade offs. We can make even larger cutbacks in training and 

maintenance, further reducing readiness to handle contingency operations and putting into even 

greater jeopardy our military readiness in future fiscal years. Alternatively, we can furlough 

civilian personnel to help close the gap and, knowing that moraie, productivity and reediness 

would be affected. This is an unpleasant set of choices, but this is the situation we face. 

Before making a decision, I sought advice and inputs from senior leaders in the military 

departments and agencies as well as advice from my se-nior civilian and military staff. I asked 

them to keep in-mind our fimdamental criterion to minimize adverse mission dfe~ts and, subject 

to that criterion,_ to ensure reasOnable consistency ·and fairness across the Department for any 

furloughs tbst we impose. 

Based on all these inputs, I have decided to direct furloughs of up to II days for most of 

the Department's civilian personnel. Furloughs for up to II days represent about half of the 22 

days that can legaiJy be imposed in a year and also about half the number we had originally 

plarmed. This halving of previous furlough phms reflects vigorous efforts to meet our budgetary 

shortfalls through actions other than furloughs as well as Congressional passage of an 

appropriations bill in late March t]latreduced the shortfalls in our operating budget and 

expectations of CongreSsional action on our reprogramming-request. 

Furlougba will be imposed in every military department as well as aimost every agency 

and in our working capital funds. All of our civilian employees are important, and I would 

prefer not to furlough any of them. However, there will only be limited exceptions driven by law 

and by the need to minimize harm to mission execution. We will except civilians deployed to 

combat zones and civilians necessary to protect life and property (but only to the extent needed 

to provide that proteetion). A few categories of workers will be excepted for specific mission 

reasons while. some categories of workers will be excepted because furloughing them would not 

DCMA Administrative Record for FY 2013 Furlough Appeals 061
free up money for critical DoD mission needs. The attachment proVides details regatdiDg 

approved exceptions. Fewer than one fifth of all civilians paid with appropriated~ds will be 

excepted from furloughs. ·· 

The planning and implemen~tion of furloughs will be carried out based on the scbedule 

below: 

• May 28 - June S: Furlough proposal notices will be served to individual employees 

subject to furloughs. 

• JIUle 4- June·l2: Individna! employee reply periods end 7"cilletidardsys frol!l ~n 

the proposal was received, unless Com~ent procedures allow fo• a diffilrent ~ly 

period. 

• !IUle 5 -July 5: Furlough decision letters will be seryed to individual employees 

subject to furloughs, depending on wben the proposal was received: and prior to the 

first day of furlough. · 

• July 8: Furlough period &gins no earlierthantbis.date. 

We will begin furloughs oit:Tilly 8 attherate.Qfl'f\ltloughdayf>er-k.forli!Oit 

personnel. For now, we plan to continue furloughs thtough.lhe en:d ofFY2!!13. 'l'hatSclledule 

would lead to II furloughdays-onefifthofthe weekfor.aboutone quarteroftheyear .. 

Moreover, I am directing all componen~ to monitpr funding clo~y..for the ·relilalluler ofFY 

2013. If our budgetacy situation permitS us to end furloughs early ,I wmi!d.sttouSly Jl!"fufto do 

so. That is a decision I will ·lll!lki later in the year. 

Consistent ·with lhis memo and witlrapplicable.lawi'Blld.ruJes,i:OIDmaDden and · .. · 

managerS will have the ati!hority to develop the specifics offurloughJ>ro<;edures i'! ordet.to 

minimize adverse mission effects and also limit the bann to morale and·pl-qductivity,·"Furthet 

bargaining with unions may also be required. The lJnder Secretary fot Per8onnel and Readiness 

has already issued guidance as appropriate regatding per8Qllll01 and 110ionissues.related to 

furloughs and will issue addiiiona! guidance as needed. Overall. coordinaiionofsequester and 

furlough policies will betbe rtj!ponsibility of the t)nderSecretaryofbefense{<i=ptl)lller). 

Each of the Department's civilian employees makes an imporlailt contributi~ntotbe readiness of our Department.to meet the nation's national security needs. I uitderslaod'thst the 

decision to impose furloughs imposes finsncia! burdens on our valued emplOyees, banns overall 

morale, and corrodes the long-term ability oflhe Department to carry out.tbe natioua! aerense 

mission. I deeply regret this decision. I wiU conti®e to urge thst o\11' lllllion's leaders reach an 

agreement to reduce the deficit and de>-trigger sequestration. If no agreement is reaebed, !will 

continue to look fur ways to limit the. adverse effects pf sequestration and associated budgetsry 

shortfulls both on the men and women of the D~ent ofDefense, and on oUr natioua! 

defense. 

Attachment: 

All stated. 

DCMA Administrative Record for FY 2013 Furlough Appeals 062
Department of Defense Furlough Exceptions 

This attachment provides Components with final dispositions on categorical exceptions to 

the Department of Defense (DoD) plan to furlough civilian employees for a maximum of 88 

hours or 11 discontinuOus Workdays because of the current fmancial crisis caused by a 

sequestration for Fiscal Year (FY) 2013, increased costs for ongoing Overseas Contingency 

Operations,: and -other eme·rging-requiremfmts. In order to minimize adverse effects on miSsion, 

employees in the following categories are excepted from furlough for the reasons noted: 

a) In order to avoid harm to war ~orts, all employees deployed (in a Temporary Duty status) 

or temporarily assil:Ded (to include Temporary Change of Stl!tion) to a combat zone (as 

defined in notes below) are excepted from furlough. 

b) In order to avoid harm to mission, those employees necessary to protect safety oflife and 

properly are excepted to the extent necessary to protect life and properly. This includes 

selected medical personrtel. Laterp()rtions of this attae)unent provide details. 

c) Employees in Navy shipyards will be except~ from furl0ugh because it would be 

particularly diflicult to make up delays inmaintem\nce work on nuclear vessels and these 

vessels are_criticalto mission SU.cces~ .. AU·other·depot employees, whether mission~funded 

or working capital fund employees, will be subject to furlongh. 

d) Furloughs for employees funded with National Intelligence Program (NW) funds will be 

determined by the Director of National Intelligence. Employees funded with Military 

Intelligence Program (MJP) funds will be~ubject to furlougli 

e) Because there would be no saviQgs, Foreigo Military Sales (FMS) employees whose 

positions are exclusively funded from FMSAdministrative and FMS case funds (case 

number may be reqnired to validate fundiug source) and from Foreign Military Financing 

accounts are excepted frol!l furlougli Furloughing employees in this category would not 

reduce the expenditure of DoD budgetary resources and so would not assist in meeting 

sequestration reductions. The FMS case-funded positions funded in whole or part by DoD 

appropriations (to include ''pseudo'FMS"·cases)are subject to furlough. 

f) By law, all individuals appointed by the Presideot, with Senate confurnation, who are not 

covered by the leave system in title 5, U.S. Code, chapter 63, or an equivalent forrnalleave 

system, are eXcepted from furlough. 

g) All employees funded by non-appropriated funds (NAF) 1 (regardless of source ofNAF 

funding) are excepted from furlough. Furloughing employees in this category would not 

reduce the DoD bud'get and so would-not assist in meeting sequestration reductions. 

h) All Outside Contiguous United States foreigo national employees, many of whom are subject 

to Status of Forces Agreemeots, are excepted from furlough because their situation vary 

greatly by country/region and because, in some cases, they are paid by host governments. 

1 NAF employees are not covere'd by lhe requirements and procedures applicable to furloughs Qfappropriated fund 

employees under FY13 sequestration. However, NAF employees may be furloughed under DoD NAF and 

Component policies and procedures for business-based reasons. 

DCMA Administrative Record for FY 2013 Furlough Appeals 063
i) Any employees who are not paid directly by accounts included in tbeDepartmel)t of ": 

Defense-Military (subfunction 051) budget are excepted from furlough. For example, this 

would include employees funded by the Arlington National Ceme!llry (705 function) aild 

DoD Civil Works (various non-051 functions) programs. These excq>tionshave been 

identified by the Components. Furloughing these employees would not reduce the 

expenditure of DoD budgetary resources and so would .not assist in meeting sequestration 

reductions. 

The following portion of this document provides:th<i definil\velist.of additional.approved 

exceptions beyond those lis!lld in tile preceding paragt)iph. The excq>tions approVed for the 

safety of life and proteetion of property cstegory are granted with the understanding"thst these 

are the minimum exceptions needed to maintain openttliii!B and provide security on a 24/7 basis 

and that furloughing these employees would result in the Dqlllrtment incurring additiol1lll costs 

for premi001 pay. Sinillarly, the exceptions fur the tnt!Qical ~.are approved with the 

understanding these exceptions preserve the rilininlumJll,Yel ofpeisQ.!l.!le!" nee<l.ed to~~ 

quality of care in 241? etnergency"rooms and other cri:tlclil care,areas;:such ail IJehavi<>nl\ltcaith, 

wounded warrior support, aild diSabilitY evillnstion: Furlo(lgliing.thlos~H~tl!ployees Wt>U!d:result 

in unacceptable care being provided, aildthe"DOJ>artment.l'!ould ill•nr iru;reased costs f<»; " 

premium pay or 1RICARE. The "excq>tion for Child D.Velopmeut CenterS is grantedwtth:the 

understanding that this is the IqinimUI!llevel needed to ri>ailltain accreditation and mainiain " " 

quality care for children inmliitary fantilies. Some Departll)entofDer~ Education Aetivity 

employees, while not excepted from furlough, may onlY be furloughed When they lite in •PaY 

ststus. Therefore, they will on1y be subjectto furlough for up" to five days "Ill th<f"begl!11iing of!he 

20l3 .. school year. · 

Recognizing that circQD1stances can change in this dynamic environment, thoSecretaries 

of the Military DePartments, and the Principal Staff ASsistants for the Defense Agen¢ies and 

Field Activities, may approve up to SO additional individual, missi!ln-based, excq>tions ·~ · needed to OJ:!Sure safe and efficient operations of their resp()Ctive Departmeuts. Any such 

exception must be r<fJ)orted to the ActiDg Under Secretary ofDefense (US D) forPe~SPnnel and .. 

Readiness and the USD Comptroller. There are no otltet'spprov<>d exeeptiOils J>fbvidecl ~<>n 

the Components' submissions. Furlolighptoposal Mtioos slioU!d'beissuedto'a!Hmpa.;rted : · employees beginnirig May 28, 2013. · · 

Relative to the review and decision on individual employee requests for exception, per 

guidance issued via the Principal Deputy ASsistant Secretary of Defense, Readiness and Force 

Management, memorandum, dated March 13, 2013, activitieS. shon1d deSigna!!> the Deciding . Official. The desigtlsled Deciding Official will be no lower than a locallnstella,tion Commander, 

senior civilian or equivillent who would be in tile best position:· to detenuine thHairllrid equitable 

application of the furlough. Deciding Official responsibilities may not be further deleg~~ted. 

Deciding Officials are charged with, ·and are accountable for, malcil)g final decisions on furloughs 

for individual employees after oarefully considering the employee's r<fj)ly, if any, and the needs of 

the Department. Deciding Officials must also ensure they make final decisions in cases where an 

employee does not submit a reply. Deciding OfficiaiS will have the authority to execute the full 

range of options with respect to providing relief in individual employee cases. This authority 

includes, but is not limited ·to, reducing the munber of days/hours an individual employee is 

furloughed, or granting the individual employee an exc<fption from the fuilough altoget!ler. 

2 

DCMA Administrative Record for FY 2013 Furlough Appeals 064
Component Safety of Medical Others Comments 

Life& Personnel 

Pronertv 

DoN 7,543 1,418 212CIVPERS C!VPERS deployed at sea 

. at Sea are subject to furlough upon 

return from deployment 

4,712 CIVMARS are subject to 

CIVMARS furlough upon return from 

deployment 

514 Maintain safety standards 

Appropriated and quality of care 

Fund(APF) 

Child 

Development 

Centers 

(CDCs) 

15 Support tO clasSified 

programs 

28,000 Shipyard Workers, General 

1,657 Shipyard WOrkers, Nuclear 

and Naval Reactors Staff 

USA 263 Up to 555APF Maintain safety standards 

6,600 CDC and ·quality of care 

Employees 

75 ARNG Dual Status 

Technicians for Aleru, 

Firefighting, Personnel 

RecoVery and other 

missions 

17 Support to classified 

programs 

257 Non-immigrant employees 

requiring H-lB ·visas at 

Defense Language Institute 

3 

DCMA Administrative Record for FY 2013 Furlough Appeals 065
Component Safety of Medical Others Comments Lif•.:v PersOnnel 

Prone 

USAF 933 410 62 Support to classified 

ptogra!DS 

1,123 ANG Dual Status 

Technicians for Alerts, 

Firefjghting, Petsonnel . Rerovery.. Snd Other 

missioils 

30 Students Intel School & FLETC 

94 Multi-IOC Heating/Waste Water Plant 

2417 plan1 minim~ safe mftlllliog--

·. Operaton; 

2 Contingency Fhmner!! 

! . 

3 Special Low Enforcement . 

Pay 

1,634 APF Mainbliri ..u;,ty siiDJdards 

CDCs and~ity:Qt"!!ff< · .·· .. '-, " 

DLA 363 . . 

. 

DA&M 623 546 amli'Om tlie'Pentagon 

Force·.Profeption Agency; the 

remaining 77 are: WashingtOn 

Headquarters Services for 

Pentagon Sl!f"'y''and.'1fllergency ·. ¢onmlunleations,.. __ 

Mostwill be fifrloughed fewer 

than II days du~to the need to. 

maintain-Operations and· 

security 24/7. 

US Court of 59 The ChibfJudge Will:decide . . . 

Appeals for how.many days to futlorigh 

Anlled Services employees, ifat all. 

JIFCAPMED 368 165 @ Walter Reed 

203 @Fort Belvoir 

4 

DCMA Administrative Record for FY 2013 Furlough Appeals 066
Component Safety of Medical Others Comments 

Life& Personnel 

Pronertv 

USUHS 22 Animal Husbandly Technicians 

5 Non-immigrant employees 

requiring H-lB visas 

Office of the 9 Civilian Trial Practitioners 

Military 

CommissionsDefense Legal 

Services 

A~ency 

Department of 10,950 9-month DoDEA employees, 

Defense which includes teachers, 

Education educational aids, and support 

Activity staff may only be furloughed 

(DoDEA) for up to 5 days at the 

beginning of the 2013 school 

year. 

DCAA 1 Non~immigrant employees 

requiring H~ lB visa 

Notes: 

1. Safety of life and proper::tY exceptions are based on need for 24n coverage in most instances. 

It is expected all Coniponents 'Will furlough for less than 88 hours in these areas where 

feasible. 

2. Iildi vi duals for whom law enforcement premium pay would result in no loss of pay if 

furloughed will be excepted from the furlough. 

3. 20 CFR 655.731 requires that the employer of a H-IB non-immigrant who is not performing 

work and is placed in a nonproductive status due to a decision by the employer (e.g., placed 

in a non-pay/non-duty status due to administrative furlough) pay the salaried employee the 

full pro-rata amount due, or to pay the hourly-wage employee for a fuJI-time week (40 hours 

or such other number of hours as the employer can demonstrate to be full-time employment 

for hourly employees, or the full amount of the weekly salruy for salaried employees) at the 

required wage for the occupation. 

5 

DCMA Administrative Record for FY 2013 Furlough Appeals 067
1 . References. 

a) Title 26, U.S. Code, Section 112, Certain combat zone compensation ofmembers of the 

Anned Forces 

b) Executive Order 12744, January 21, 1991 

c) Executive Order 13119, April 13,· i999 

d) Executive Order 1 3239, December 12,2001 

e) Public Law 104-117, To providetbatmemben; of !he Armed Fol'ces.PerfQrming services 

for peacekeeping efforts in Bosnia and Herzegovina, Crolitia, and Macedonia Shall be 

entitled to We benefits in the same manner as if such services were performed in a combat 

zone. 

2, The following locations are deslgnsted as "CombetZones'' by la\v, Pte$dentia1Executiye 

Order or by DoD certification that 1nen.lbers of1heAmled F0rees;Scotving in snch Iacations ·ate· 

serving in direct support of military operations ina: comba:t :ZOne: . · 

Countries: 

Afgbsnistan (EO 1 3239) 

Albania (EO 131 1 9) 

Babraln (EO 12744) 

Bosnia(PL 104-117) 

Djibouti (DoD certification) 

Iraq (EO 12744) 

Kuwait (EO 12744) 

.Macedonia (PL 1 04-IJ70) 

Oman (EO 12744) 

Philippines (Only troops with orders 

referencing Operation Enduring Freedom) 

(DoD certification) 

Saudi Ambia (EO 12744) 

Somalia (DoD certification) 

6 

UnitedAmb Elnirates (EO 12744) . ' . . . ' 

Uzbel<:jStiui (DoD certification) 

Yemen (DoD certification) 

Croatia (PL I 04-117) 

Herzegovina (PL 1 04-ll7) 

Jordan (DoD certificati~) · 

Kyrgyzstan(DoDcerti:lication} · 

Moritenegro.(EO 13l19) 

Pakistan (DoD certification) 

Qatar (EO 12744) 

Serbia (includes Kosovo) (EO l3 1 1 9) 

Tajikistan (DoD certification) 

DCMA Administrative Record for FY 2013 Furlough Appeals 068
Sea Areas: 

Adriatic Sea (EO 131 I 9) 

Gulf of Aden (EO 12744) 

Ionian Sea north of the 39~ Parallel (EO 13119) 

Red Sea (EO 12744) 

That portion of the Arabiao Sea that 

lies north of I 0 degrees north latitude, 

and west of 68 ·degrees east longitude 

(EO 12744) 

GulfofOman (EO 12744) 

PetsiWl Gulf(EO 12744) 

3. Adherence to the .following principles ensures consistency in applying the "deployed to 

combat zone'' exemption to ciVilian einployees in the context of the administrative furlough: 

a) "Deployed civilian" is defined as a civiliWl employee who is deployed (in temporary duty 

(TDY) status) or temporarily assigned (to include temporary change of station (TCS)) to 

a "combat ~ne" as_. set forth above. 

b) "Combat zone" is defined as those locations listed as combat zones in ExecUtive Orders 

12744, 131 19 or 13239 and locations where military are eligible for.combat zone tal< 

benefits under law. or because DoD has certified that they are providing direct support to 

military operations. 

c) A "deployed civilian's" period ofdeployment includes time speht in attendance at 

mandatory pre-deployment training as well as in completing mandatory post-deployment 

requirements. 

d) A civilian employee who was deployed to a combat zone but tedeploys mid-way through 

the furlough period will receive a notice' of proposed furlough upon return to their parent 

organization and prior to any furlough. F'urther, the number of hours for which the 

employee will be furloughed will be pro-rated. 

7 

DCMA Administrative Record for FY 2013 Furlough Appeals 069
*EMBARGOED FROM PUBLIC/PRESS RELEASE* 

*UNTIL 1430 HRS, 14 MAY 2013* 

MESSAGE FROM SECRETARY HAGEL ON FURLOUGHS 

TUESDAY, MAY 14,2013 

To all Department of Defense personnel: 

As you are fully aware, the Department of Defense is facing a historic 

shortfall in our budget for the current fiscal year. This is the result of current law 

that went into effect March 1. It imposes deep across-the-board cuts on DoD and 

other federal agencies. Combined with higher than expected wartime operating 

costs, we are now short more than $30 billion in our operation and maintenance 

(O&M) accounts- which are the funds that we use to pay most civilian employees, 

maintain our military readiness, and respond to global contingencies. 

The Department has been doing everything possible to reduce this shortfall 

while ensuring we can defend the nation, sustain wartime operations, and preserve 

DoD's most critical asset- our world-class civilian and military personnel. To that 

end, we have cut back sharply on facilities maintenance, worked to shift funds 

from investment to O&M accounts, and reduced many other important but nonessential programs. 

Still, these steps have not been enough to close the shortfall. Each of the 

military services has begun to significantly reduce training and maintenance of 

non-deployed operating forces- steps that will adversely impact military 

readiness. And even these reductions are not enough. Since deeper cuts to training 

and maintenance could leave our nation and our military exposed in the event of an 

unforeseen crisis, We have been forced to consider placing the majority of our 

civilian employees on administrative furlough. 

After extensive review of all options with the DoD's senior military and 

civilian leadership on how we address this budget crisis, today I am announcing 

that I have decided to direct furloughs of up to 11 days for most of the 

Department's civilian personnel. I have made this decision very reluctantly, 

because I know that the furloughs will disrupt lives and impact DoD operations. I 

recognize the significant hardship this places on you and your families. 

DCMA Administrative Record for FY 2013 Furlough Appeals 070
After required notifications, we will begin the furlough period on July 8 at 

the rate of one furlough day per week for most personnel. We plan to continue 

these furloughs through the end of the current fiscal year. If our budgetary 

situation permits us to end furloughs early, I would strongly prefer to do so. That 

is a decision I will make later in the year. 

Furloughs for II days represent about half of the number we had originally 

planned, reflecting the Department's vigorous efforts to meet our budgetary 

shortfalls through actions other than furlough. There will be exceptions driven by 

law and by the need to minimize harm to the execution of our core missions. For 

example, all employees deployed or temporarily assigned to a combat zone will be 

excepted from furloughs. 

Your managers have been given authority to develop specific furlough 

procedures to minimize adverse mission effects and also limit the harm to morale 

and productivity. They will be in touch with you to provide guidance and answers. 

The President and I are deeply appreciative of your patience, your hard 

work, and your dedication and contributions to the critical mission of helping 

protect America's national security. I am counting on all of you to stay focused on 

this vital mission in the days ahead. As I said the day I assumed the 

responsibilities of Secretary of Defense, I'm proud to be part of your team and I'm 

proud to serve with you. 

### 

DCMA Administrative Record for FY 2013 Furlough Appeals 071
DIRECTOR'S FURLOUGH MESSAGE (14-MAY-2013) 

All, 

As many of you may have already heard, the Department issued formal guidance today for us to move 

forward with plans to furlough civilian employees for as many as 11 days beginning in July. For most of 

our employees, that will equate to 8 hours per week for the last 11 weeks of the fiscal year. The SECDEF 

also stated today that, if the Department is successful in further cost cutting efforts, the 11 days may be 

reduced to a lower number when it is clear that the Department as a whole will be able to come in 

within current fiscal guidance. While the exact number of furlough days may be Jess, we should all be 

planning for the 11 days at this point. Formal notification letters will likely be sent to each of you within 

the next two weeks. 

I know this will present serious personal challenges for many of us and critical workload challenges for 

all of us. For our part, DCMA will move forward with the plans and processes we have in place and we 

will carefully monitor our implementation ofthese reductions to ensure we minimize impacts to 

customers. We will continue to work closely with our union partners to work any issues as they arise. 

I will continue to provide updates as our plans unfold. As I've said before in earlier emails, please do 

your best to look out for your fellow employees and be sensitive to the issues we all will be facing. Now 

more than ever, it's important for us to "look out for our wingmen". I know I can continue to count on 

all of you to keep up the remarkable work that you do each and every day to look out for the interests of 

our war fighters and the taxpayers. 

Charlie E. Williams Jr. 

Director 

Defense Contract Management Agency 

DCMA Administrative Record for FY 2013 Furlough Appeals 072
~~---Original Message-----

From: Director, DCMA 

Sent: Monday, May 06, 2013 1:38 PM 

To: DCMA All Personnel 

Cc: Ft. Lee- 10500; Ft. Lee- Rivers Bend; Ft. lee- DSCR 

Subject: Updated Furlough Information 

All, 

I know we are all keenly interested in the status of furlough actions across the Department and the 

impacts they may have on each of us personally. I promised to keep you informed of any changes or 

updates as they occur. Unfortunately (or maybe fortunately), there just isn't much to Update you on at 

this point- and that's probably a good thing. Guidance from the Department is still to hold off on issuing 

formal furlough notifications to the workforce while they carefully work through the financial impacts 

that recent budget authorities/flexibilities from the Congress have provided. While the DoD is dearly 

not out of the financial woods yet and may still need to furlough before the end of the fiscal year, I can 

only view it as a good sign that they have directed us to delay formal notifications. 

We may know more in the next few weeks and, if so, I will update you all as soon as possible. But 

realistically, it is completely possible that we may go through the remainder of the year without a 

definitive answer on furloughs until the year is over. The Department will continue to look for belt 

tightening opportunities to solve current budget issues while further minimizing or eliminating the need 

for furlough actions. To the extent the Department is successful in finding other offsets, I'm fairly 

certain that furlough decisions will continue to be delayed. 

As for how DCMA is holding up through the current problematic budget times, I can only say how proud 

I am of our workforce, our leaders, and our financial management community for identifying ways to 

reduce, holding ourselves accountable, and generating savings for the Department to stay within our 

very restrictive top-line budget. It certainly has not been easy and tough choices continue to be made 

on a daily basis, but we are staying within our new budget guidelines and doing our part as good 

financial stewards. But what has been most impressive to me, is the way this Agency has pulled 

together in these tough times to ensure that our customer's most critical needs have been met and our 

service levels have remained so high. Thanks so much for your service, stewardship, and selfless 

commitment to the critical mission of DCMA. 

Charlie E. Williams Jr. 

Director 

Defense Contract Management Agency 

DCMA Administrative Record for FY 2013 Furlough Appeals 073
M-13-11 

Air Force Administrative Record fpr FY 2013 Furlough Appeals 

EXECUTIVE OFFICE OF THE PRESIDENT 

OFFICE OF MANAGEMENT AND BUDGET 

WASHINGTON, D.C. 20503 

Apri14, 2013 

MEMORANDUM FOR THE~S 0 EXE 

FROM: Danny Werfe1 

Controller 

SUBJECT: Ongoing Implementation of the Joint Committee Sequestration 

Section 251A of the Balanced Budget and Emergency Deficit Control Act (BBEDCA), as 

amended, on March 1, 2013, required the President to issue a sequestration order canceling $85 

billion in budgetary resources across the Federal Government for the remainder of fiscal year 

(FY) 2013. This action was required due to the failure of the Joint Select Committee on Deficit 

Reduction to propose, and the Congress to enact, legislation to reduce the deficit by $1.2 trillion. 

The Administration continues to urge Congress to take action to eliminate the Joint 

Committee sequestration and restore cancelled budgetary resources as part of a balanced 

agreement on deficit reduction. However, until Congress takes such action, executive 

departments and agencies (agencies) must continue to implement the reductions required by 

sequestration. 

This memorandum provides ftuther guidance on specific issues regarding the 

management and implementation of sequestration that the Office of Management and Budget 

(OMB) preliminarily addressed in prior memoranda OMB previously issued guidance on the 

appropriate implementation of sequestration in Memorandum 13-03,Planningfor Uncertainty 

with Respect to Fiscal Year 2013 Budgetary Resources; Memorandum 13-05, Agency 

Responsibilities for Implementation of Potential Joint Committee Sequestration; and 

Memorandum 13-06, Issuance of the Sequestration Order Pursuant To Section 251A of the 

Balanced Budget and Emergency Deficit Control Act of 1985, as Amended. 

Appropriate Use of Existing Reprogramming and Transfer Authority 

Sequestration provides an agency with little discretion in deciding where and how to 

reduce spending. All non-exempt budget accounts in a given spending category must be reduced 

by a uniform percentage, and the same percentage reduction must be applied to all programs, 

projects, and activities (PPAs) within a budget account. However, depending on an agency's 

account structure and any existing flexibilities provided by law, some agencies may have a 

limited ability to realign funds to protect mission priorities. As directed by Memorandum 13-03, 

in allocating reduced budgetary resources due to sequestration, agencies should generally "use 

1 

346 

DCMA Administrative Record for FY 2013 Furlough Appeals 074
Air Force Administrative Record for FY 2013 Furlough Appeals 

any available flexibility to reduce operational risks and minimize impacts on the agency's core 

mission in service of the American people!' Agencies should also "take into account funding 

flexibilities, including the availability of reprogramming and transfer authority." 

Consistent with this guidance, agencies with reprogramming or transfer authority should 

continue to examine whether the use of these authorities would allow the agency to minimize the 

negative impact of sequestration on core mission priorities. In doing so, agencies must consider 

the long-term mission, goals, and operations of the agency and not just short-term needs. For 

example, agencies should avoid taking steps that would unduly compromise the ability to 

perform needed deferred maintenance on facilities, invest in critical operational functions and 

support, conduct program integrity and fraud mitigation activities, and pursue information 

technology or other infrastructure investments that are essential to support the long-term 

execution of the agency's mission Similarly, while agencies with carryover balances or reserve 

funds should consider appropriate use of these funds to maintain core mission functions in the 

short term, it is important not to use these funds in a manner that would leave the agency 

vulnerable to future risks due to a potential lack of available funds in future years. 

Agencies should consult with their OMB Resource Management Office (RMO) to assess 

options for utilizing existing authorities and ensure that any proposed actions appropriately 

balance short-term and long-term mission priorities. Agencies must also consult closely with 

their OMB RMO on any proposed actions that would reduce carryover balances or reserve funds 

below histmicallevels. 

Funding for Agency Inspectors General 

Funds for agency Inspectors General (IGs) from nonwexempt accounts are subject to 

sequestration under the March 1, 2013 sequestration order. The head of each agency has the 

final responsibility for implerrienting the reductions required by sequestration. Upon making 

such determinations, !Gs have the final responsibility for determining how their authorized 

budgets will be allocated. 

To the extent an agency has discretion in implementing reductions to IG funding due to 

sequestration, agency heads should be mindful of the independence of the Office oflnspector 

General and should consult with the IG on a pre-decisional basis on matters that may impact IG 

funding. In particular, agencies must remain cognizant of the provisions in section 6 of the 

Inspector General Act of 1978, as amended, which outline the need for IGs to maintain the 

appropriate resources and services necessary to perform their statutory duties and describe the 

manner in which IG budgets are requested. 

In cases where IG funds are not intermingled with other agency funds and exist as their 

own PPA, the IG should be provided full discretion to determine how to implement the 

reductions required by sequestration. In cases where IG funds are intermingled with other 

agency funds within a PPA, while the specific amount of reductions will vary by agency and 

account, a benchmark that should be considered by the head of the agency-in consultation with 

the IG-is to apply a percentage reduction to IG funds that is same as the average percentage 

reduction for all other funds within the PP A. Upon determining the amount of the reduction for 

2 

347 

DCMA Administrative Record for FY 2013 Furlough Appeals 075
Air Force Administrative Record for FY 2013 Furlough Appeals 

IG funds in such cases, the agency head should then defer as appropriate to the IG in determining 

how the IG manages the reductions. 

Agencies should consult with their OMB RMO throughout this process as well. 

Discretionary Monetary Awards 

OMB Memorandum 13-05 directs that discretionary monetary awards should not be 

issued while sequesb:ation is in place, unless issuance of such awards is legally required. 

Discretionary monetary awards include annual performance awards, group awards, and special 

act cash awards, which comprise a sizeable majority of awards and incentives provided by the 

Federal Government to employees. Until further notice, agencies should not issue such 

monetary awards from sequestered accounts unless agency counsel determines the awards are 

legally required. Legal requirements include compliance with provisions in collective bargaining 

agreements governing awards.1 

Consistent with past guidance, certain types of incentives are not considered discretionary 

monetary awards for the purposes of this policy. These include quality step increases (QS!s); 

travel incentives recognizing employee savings on official travel; foreign language awards for 

mission-critical language needs; recruitment, retention, and relocation incentives (3Rs); student 

loan repayments; and time-off awards. While these items are permitted, in light of current 

budgetary constraints, they should be used only on a highly limited basis and in circumstances 

where they are necessary and critical to maintaining the agency's mission. In addition, 

consistent with the policy set forth in the Guidance on Awards for Fiscal Years 2011 and 2012, 

jointly issued by the Office of Personnel Management (OPM) and OMB on June !0, 2011, 

spending for QSis and 3Rs should not exceed the level of spending on such incentives for fiscal 

year 2010. 

With respect to Federal political appointees, agencies should continue to follow the 

policy set forth in the August 3, 2010 Presidential Memorandum, Freeze on Discretionary 

Awards, Bonuses, and Similar Payments/or Federal Political Appointees. OPM previously 

issued guidance on implementation of this memorandum. 

Reducing Burden for State, Local, and Tribal Governments 

To the extent agencies provide grants or other forms of :financial assistance to States, 

localities, or tribal governments, agencies should consider if there are ways to help such entities 

mitigate the effects of funding reductions due to sequestration through reducing administrative 

burdens or other standard administrative processes, consistent with applicable legal requirements 

associated with the funds provided. In doing so, agencies should consult closely with their State, 

local, and tribal partners to determine whether such steps enable public funds to be used in a 

more cost-effective manner. 

1 Consistent with legal requirements, agencies may consider engaging in discussions with employees' exclusive 

representatives to explore revisions to such provisions in existing collective bargaining agreements, in recognition of 

this guidance. 

3 

348 

DCMA Administrative Record for FY 2013 Furlough Appeals 076
-----Original Message-----

From: Director, DCMA 

Sent: Thursday, March 21, 2013 1:06PM 

To: DCMA All Personnel 

Cc: Ft. Lee- 10500; Ft. Lee- Rivers Bend 

Subject: Updated Furlough Information 

All, 

We have received notice, that should it be necessary, the release of furlough notices will not occur 

before 5 April2013. The purpose of the delay is to ensure the Department has time to fully assess the 

impacts of the pending Continuing Resolution legislation on the Department's resources. As usual, we 

wlll continue to keep you informed as things change during these difficult and dynamic times. 

Charlie E. Williams Jr. 

Director 

Defense Contract Management Agency 

DCMA Administrative Record for FY 2013 Furlough Appeals 077
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NEWS ARTICLE E-UAll A COPY I P11<NTER "'"ENDLY [lATEST N£WS 

Pentagon Delays Sending Furlough Notices to Civilian Workforce 

American Forces Press Service 

WASHINGTON, March 21, 2013- Pentagon officials have put off sending- lufioogh noUces to cMiiM employees 

until they'Ve had a chMce to analy>:e hOW pending legisla~on that woold lund the federal government for the rest 

of the fiscal year will affect lhe Defense Department. 

Officials now estimate that lurloogh notices will go out on or about April 5, Navy Cmdr. Leslie Huii-Ryde, a 

Pentagon spOkeswoman, said. 

'"The legislation could have some Impact on lhe 011erall number ollu~oogh days, but no decisions have ~en 

reached, especially since the legislation hasn't been signed into law," Huii·Ryde said. '"The number of furlough 

days at this point remains ar22: 

Pentagon Press Secretary George Unte said the delay mal<es sense. "We believe the delay Is a responsible step 

to talle In order to assum oor cfvi~an employees lhat we do not take lightly the prospect ol fu~ooghs Md lhe 

resuiUng decrease in employee pay," he s.aid. 

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