I
107TH CONGRESS
1ST SESSION
H. R. 2678
To amend title 5, United States Codes, to establish an exchange program
between the Federal Government and the private sector to develop exper-
tise in information technology management, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 31, 2001
Mr. TOM DAVIS of Virginia (for himself and Mr. MORAN of Virginia) intro-
duced the following bill; which was referred to the Committee on Govern-
ment Reform
A BILL
To amend title 5, United States Codes, to establish an ex-
change program between the Federal Government and
the private sector to develop expertise in information
technology management, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Digital Tech Corps Act of 2001’’.
(b) FINDINGS.—Congress finds that—
(1) unless action is taken soon, there will be a
crisis in government’s ability to deliver essential
services to the American people;
(2) by 2006, over 50 percent of the Federal
Government’s information technology workforce will
be eligible to retire, creating a huge demand in gov-
ernment for high-skill workers;
(3) despite a 44 percent decrease in the demand
for information technology workers in the private
sector, the Information Technology Association of
America reports that employers will need to fill over
900,000 new information technology jobs and will be
unable to find qualified workers for 425,000 of those
jobs;
(4) to highlight the urgency of this situation, in
January 2001, the General Accounting Office added
the Federal Government’s human capital manage-
ment to its list of high-risk problems for which an
effective solution must be found;
(5) despite efforts to increase flexibility in Fed-
eral agencies’ employment practices, compensation
issues continue to severely restrain recruitment for
Government agencies;
(6) failures in the Federal Government employ-
ment process are accelerating efforts by agencies to
implement outsourcing as a short-term solution to
skill gaps, further unbalancing efforts to reach the
proper government versus contractor mix of manage-
ment and skills; and
(7) an effective, efficient, and economical re-
sponse to this crisis would be to create a vibrant, on-
going exchange effort designed to share talent, ex-
pertise, and advances in management between lead-
ing-edge businesses and government agencies en-
gaged in best practices.
SEC. 2. INFORMATION TECHNOLOGY EXCHANGE PROGRAM.
(a) IN GENERAL.—Subpart B of part III of title 5,
United States Code, is amended by adding at the end the
following:
‘‘CHAPTER 37—INFORMATION
TECHNOLOGY EXCHANGE PROGRAM
‘‘Sec.
‘‘3701. Definitions.
‘‘3702. General provisions.
‘‘3703. Assignment of employees to private sector organizations.
‘‘3704. Assignment of employees from private sector organizations.
‘‘3705. Authority of the Office of Personnel Management.
‘‘§ 3701. Definitions
‘‘For purposes of this chapter—
‘‘(1) the term ‘agency’ means an Executive
agency, but does not include the General Accounting
Office;
‘‘(2) the term ‘detail’ means—
‘‘(A) the assignment or loan of an em-
ployee to a private sector organization without
a change of position from the agency by which
the individual is employed; and
‘‘(B) the assignment or loan of an em-
ployee of a private sector organization to an
agency without a change of position from the
private sector organization that employs the in-
dividual; and
‘‘(3) the term ‘transfer’ means the change of
position by an employee from an agency to a private
sector organization or from a private sector organi-
zation to an agency.
‘‘§ 3702. General provisions
‘‘(a) On request from or with the agreement of a pri-
vate sector organization, and with the consent of the em-
ployee concerned, the head of an agency may arrange for
the assignment of an eligible employee of the agency to
a private sector organization or an eligible employee of a
private sector organization to the agency. An eligible em-
ployee is an individual employed at the GS–12 level or
above (or equivalent) who—
‘‘(1) works in the field of information tech-
nology management
‘‘(2) is considered an exceptional performer by
the individual’s current employer; and
‘‘(3) is expected to assume increased informa-
tion technology management responsibilities in the
future.
An employee of an agency shall be eligible to participate
in this program only if the employee is serving under a
career or career-conditional appointment or an appoint-
ment of equivalent tenure in the excepted service.
‘‘(b) Each agency that exercises its authority under
this chapter shall establish a plan for implementing this
authority. The plan shall provide for a written agreement
between the agency and the employee concerned regarding
the terms and conditions of the employee’s assignment.
In the case of an employee of the agency, the agreement
shall—
‘‘(1) require the employee to serve in the civil
service, upon completion of the assignment, for a pe-
riod equal to the length of the assignment; and
‘‘(2) provide that, in the event the employee
fails to carry out the agreement (except for good and
sufficient reason, as determined by the head of the
agency from which assigned) the employee shall be
liable to the United States for payment of all ex-
penses (excluding salary) of the assignment. The
amount shall be treated as a debt due the United
States.
‘‘(c) Assignments may be terminated by the agency
or private sector organization concerned for any reason
at any time.
‘‘(d) Assignments under this chapter shall be for 1
year and may be extended for an additional period not
to exceed 1 year.
‘‘(e) The Chief Information Officers Council, by
agreement with the Office of Personnel Management, may
assist in the administration of this chapter, including by
maintaining lists of potential candidates for assignment
under this chapter, establishing mentoring relationships
for the benefit of individuals who are given assignments
under this chapter, and publicizing the program.
‘‘§ 3703. Assignment of employees to private sector or-
ganizations
‘‘(a) An employee of an agency may be assigned to
a private sector organization under this chapter either—
‘‘(1) as a detail to a regular work assignment;
or
‘‘(2) as a transfer to the private sector organi-
zation.
‘‘(b) Notwithstanding any other provision of law, an
employee assigned under subsection (a) is entitled—
‘‘(1) to receive supplemental pay from the agen-
cy in the amount equal to the difference between the
rate paid by the organization to which detailed or
transferred and the rate of basic pay (including lo-
cality pay, where applicable, subject to regulations of
the Office of Personnel Management) payable for
the employee’s Federal position, if the latter is
greater;
‘‘(2) in the case of an employee who is detailed
under subsection (a)(1), to credit for the period of
assignment under this chapter toward periodic step
increases, retention, and leave accrual;
‘‘(3) to retain coverage, rights, and benefits
under chapters 87 and 89, if necessary employee de-
ductions and agency contributions for the period of
the assignment are currently deposited in the Em-
ployees’ Life Insurance Fund and the Employees
Health Benefits Fund, respectively, and the period
of the assignment is deemed service as an employee
under chapters 87 and 89;
‘‘(4) to retain coverage, rights, and benefits
under any system established by law for the retire-
ment of employees, if necessary employee deductions
and agency contributions in payment for the cov-
erage, rights, and benefits for the period of assign-
ment are currently deposited in the system’s fund;
and the period of the assignment is deemed cred-
itable under the system, except that such service
shall not be considered creditable service for the pur-
pose of any retirement system for Federal employees
if such service forms the basis, in whole or in part,
for an annuity or pension under the retirement sys-
tem of the private sector organization; and
‘‘(5) to retain coverage, rights, and benefits
under subchapter I of chapter 81, and employment
during the assignment is deemed employment by the
United States, but if the employee or the employee’s
dependents receive from the private sector organiza-
tion any payment under an insurance policy for
which the premium is wholly paid by the private sec-
tor organization, or other benefit of any kind on ac-
count of the same injury or death, the amount of
such payment or benefit shall be credited against
any compensation otherwise payable under sub-
chapter I of chapter 81.
During the employee’s assignment to the private sector or-
ganization, the agency from which the employee is detailed
or transferred shall make contributions for retirement and
insurance purposes from the appropriations or funds of
that agency so long as contributions are made by the em-
ployee.
‘‘(c) The detail of an employee of an agency under
subsection (a)(1) may be made with or without reimburse-
ment by the private sector organization for the travel and
transportation expenses to or from the place of assign-
ment, subject to the same terms and conditions that apply
with respect to an employee of a Federal agency or a State
or local government under section 3375, and for the pay,
or supplemental pay, or any part thereof of the employee
during assignment. Any reimbursements shall be credited
to the appropriation of the agency used for paying the
travel and transportation expenses or pay.
‘‘(d) An employee assigned on detail under subsection
(a)(1) remains an employee of the agency from which de-
tailed. The Federal Tort Claims Act and any other Fed-
eral tort liability statute apply to the employee. The super-
vision of the duties of an employee on detail may be gov-
erned by an agreement between the agency and the organi-
zation to which detailed.
‘‘(e)(1) Notwithstanding any other provision of law,
an employee detailed under subsection (a)(1) is entitled
to accrue annual and sick leave to the same extent as if
the employee had continued working in the position from
which detailed.
‘‘(2) An employee who transfers to a private sector
organization under subsection (a)(2) may elect to retain
credit for all accumulated and currently accrued annual
leave to which entitled at the time of transfer which other-
wise would be liquidated by a lump-sum payment. At the
employee’s request at any time before returning to the
agency, the employee shall be paid for the annual leave
retained. Upon completion of the assignment under this
chapter, the agency shall restore the employee’s sick leave
account to its status at the time of transfer.
‘‘§ 3704. Assignment of employees from private sector
organizations
‘‘(a) Notwithstanding any other provision of law, an
employee of a private sector organization who is assigned
to an agency under section 3702(a) may be—
‘‘(1) transferred to the agency and appointed
without regard to the provisions of this title gov-
erning appointment in the competitive service for the
period of assignment; or
‘‘(2) detailed to the agency.
‘‘(b) An individual appointed under subsection (a)(1)
is entitled to pay in accordance with chapter 51 and sub-
chapter III of chapter 53 or other applicable law, and is
deemed an employee of the agency for all purposes
except—
‘‘(1) subchapter III of chapter 83, chapter 84,
or other applicable retirement system;
‘‘(2) chapter 87; and
‘‘(3) chapter 89 or other applicable health bene-
fits system unless the appointment results in the
employee’s loss of coverage in a group health bene-
fits plan the premium of which has been paid in
whole or in part by the private sector organization.
The exceptions set forth in paragraphs (1) through (3)
shall not apply to non-Federal employees who are covered
by chapters 83, 84, 87, and 89 by virtue of their non-
Federal employment immediately before appointment
under subsection (a)(1).
‘‘(c) An employee of a private sector organization who
is detailed to an agency under subsection (a)(2)—
‘‘(1) is not entitled to pay from the agency, ex-
cept to the extent that the pay for the position to
which detailed (including locality pay, where applica-
ble) exceeds the pay the individual was receiving
from the private sector organization immediately be-
fore the detail;
‘‘(2) may continue to receive pay and benefits
from the private sector organization from which he
is detailed;
‘‘(3) is deemed an employee of the agency for
the purposes of—
‘‘(A) chapter 73, except for section
7353(a)(1);
‘‘(B) sections 203, 205, 207, 208, 603,
606, 607, 643, 654, 1905, and 1913 of title 18;
‘‘(C) sections 1343, 1344, and 1349(b) of
title 31;
‘‘(D) the Federal Tort Claims Act and any
other Federal tort liability statute;
‘‘(E) the Ethics in Government Act of
1978 (5 U.S.C. App.);
‘‘(F) section 1043 of the Internal Revenue
Code of 1986, as amended (26 U.S.C. 1043);
and
‘‘(G) section 27(p)(8) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C.
423(p)(8)); and
‘‘(4) is subject to such regulations as the Presi-
dent may prescribe.
The supervision of an employee who is detailed under sub-
section (a)(2) may be governed by agreement between the
agency and the private sector organization concerned. A
detail under subsection (a)(2) may be made with or with-
out reimbursement by the agency for the pay, or a part
thereof, of the employee during the period of assignment,
or for any contribution of the private sector organization
to employee benefit systems.
‘‘(d) If a private sector organization fails to continue
the employer’s contribution to private sector retirement,
life insurance, and health benefit plans for an individual
who is appointed in an agency under this section, the em-
ployer’s contributions covering the period of the assign-
ment may be made from the appropriations of the agency
concerned.
‘‘(e) A private sector employee who is given an as-
signment in an agency under subsection (a) and who suf-
fers disability or dies as a result of personal injury sus-
tained while performing duties during the assignment
shall be treated, for the purpose of subchapter I of chapter
81, as an employee as defined by section 8101 who had
sustained the injury in the performance of duty, except
that if the employee or the employee’s dependents receive
from the private sector organization any payment under
an insurance policy for which the premium is wholly paid
by the private sector organization, or other benefit of any
kind on account of the same injury or death, the amount
of such payment or benefit shall be credited against any
compensation otherwise payable under subchapter I of
chapter 81.
‘‘§ 3705. Authority of the Office of Personnel Manage-
ment
‘‘The Director of the Office of Personnel Manage-
ment shall prescribe regulations for the administration of
this chapter.’’.
(b) CLERICAL AMENDMENT.—The analysis for part
III of title 5, United States Code, is amended by inserting
after the item relating to chapter 35 the following:
‘‘37. Information Technology Exchange Program.’’.
SEC. 3. ALLOWABILITY OF COSTS.
Within 120 days after the enactment of this Act, the
Federal Acquisition Regulations Council shall amend the
Federal Acquisition Regulation to recognize the costs as-
sociated with an employee’s participation in the program
authorized by section 2 as allowable training and edu-
cation costs. Such costs—
(1) include the employee’s salary and fringe
benefits for a period not to exceed the period of the
employee’s assignment under the program author-
ized by section 2, as well as moving and travel ex-
penses; and
(2) may be treated, for accounting purposes—
(A) as an indirect cost and accounted for
in—
(i) an established overhead account; or
(ii) an overhead account established
specifically for the program authorized by
section 2 and allocated exclusively to the
contractor’s Federal Government contracts;
or
(B) as a direct cost chargeable to fixed
price or time and material contracts.
SEC. 4. CONFORMING AMENDMENTS.
(a) Title 5, United States Code, is amended—
(1) in section 3111 by adding at the end the
following:
‘‘(d) Notwithstanding section 1342 of title 31, the
head of an agency may accept voluntary service for the
United States under chapter 37 of this title and regula-
tions of the Office of Personnel Management.’’; and
(2) in section 4108 by striking subsection (d).
(b) Section 125(c)(1) of Public Law 100-238 (5
U.S.C. 8432 note) is amended—
(1) in subparagraph (B) by striking ‘‘or’’ at the
end;
(2) in subparagraph (C) by striking ‘‘and’’ at
the end and inserting ‘‘or’’; and
(3) by adding at the end the following:
‘‘(D) an individual assigned from a Fed-
eral agency to a private sector organization
under chapter 37 of title 5, United States Code;
and’’.
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