Federal Managers Association

The letter concluded with Perkinson stating, “We want to ensure that the principles of fairness and transparency are tangible effects of this process.” For a copy of the letter, please visit FMA’s “Members Only” section at: www.fedmanagers.org.

FMA WORKING TO SUSTAIN SSA FUNDING LEVELS

The Federal Managers Association (FMA) was among nearly fifty organizations requesting that the funding for the Social Security Administration (SSA) remain at the level approved in the fiscal year 2008 Labor/HHS/Education conference report.

Last month, President Bush vetoed the FY08 Labor/HHS/Education spending bill (H.R. 3043), which included $9.872 for SSA administrative expenses. The amount is $275 million over the President’s request. The additional funding is absolutely crucial to maintain operations at SSA and work down the disability case backlog. There are currently about 758,000 pending requests for a hearing.

The letter, sent to House and Senate appropriators, detailed the dire situation the Social Security Administration is in. Over the past ten years, the President’s budget request for SSA’s administrative resources was lower than the Commissioner’s request, and Congress further reduced SSA’s budget by a cumulative total of almost $1.3 billion over the ten year period. Due to this prolonged underfunding, SSA has experienced serious staffing declines as workloads continue to increase. SSA has lost 4,000 positions in just the past two years.

It is uncertain at this time when Congress and the White House will agree on the Labor/HHS/Education spending bill. To view a copy of the letter, please visit FMA’s “Members Only” section at www.fedmanagers.org.

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WHAT’S HAPPENING ON CAPITOL HILL?  

TAX BREAK FOR CIVILIANS IN COMBAT ZONES REJECTED BY HOUSE  

Currently, military personnel and federal contractors serving in combat zones receive tax exemptions on their base pay. The moment a service members steps foot in a combat zone they no longer pay federal taxes. However, at any given time, there are roughly 5,000 federal civilian employees in combat zones, many of whom are in Iraq and Afghanistan alongside the military. These employees are not eligible for tax exemptions before one year in a danger zone.

Representative Frank Wolf (R-Va.) and Senator John Warner (R-Va.) have introduced legislation (H.R. 1974 and S. 1166, respectively) which would establish parity for federal employees serving in combat zones by extending to them the same tax credit available to members of the armed forces serving in combat zones. Recently, the provisions of the bills were included in a tax relief bill for the military (H.R. 3997), but they were ultimately removed when the House Ways and Means Committee passed the legislation.

“Some federal employees have no choice but to be deployed, while others are volunteers who hold important reconstruction jobs and the government relies heavily on civil service volunteers who have specialized expertise in fields not found in the military to fill critical positions in combat zones,” commented FMA National President Darryl Perkinson. “I recognize the price tag for these tax breaks is high, but I am disappointed the Committee failed to provide relief to civilians in combat zones while simultaneously providing tax credits for members of the Armed Services.”

To send your Member of Congress an action letter in support of the legislation introduced by Rep. Wolf and Senator Warner, please visit the Legislative Action Center on FMA’s Web site at: www.fedmanagers.org.

CR EXPIRES THIS WEEK, TENTATIVE PLAN FOR NEXT STEP

The current continuing resolution (CR), which is funding the federal government’s operations in the absence of the fiscal year 2008 spending bills, is set to expire this Friday, December 14th.

While the President has signed into law the FY08 Defense appropriations bill (PL 110-116), the remaining eleven funding bills have yet to be completed. As it stands, there is a difference of nearly $23 billion in spending between what the President proposed and what Congress wants for FY08; almost half of that was in the vetoed Labor/HHS/Education bill (H.R. 3043).

According to Congressional Quarterly, the House of Representatives is planning to roll the remaining bills into one large spending bill, or omnibus. The price tag of the super-bill will split the difference between what President Bush and Congress want to spend on domestic programs, with the total package about $11 billion more than the President’s request.

However, the President and Democratic leaders continue to publicly spar over the spending differences. In a statement over the weekend, Office of Management and Budget Director Jim Nussle commented, “If presented a bill like the one described in today's press reports, the President would veto it. If Congress insists on sending the President a budget-busting bill they know he will veto and that will not become law, they should also pass a continuing resolution that keeps the government running and provides the troops in the field the funds they need without disrupting the operations of the Department of Defense and the lives of hundreds of thousands of its employees and men and women in uniform.”

In response, House Speaker Nancy Pelosi shot back, “Although he admits he has not even seen the bipartisan legislation that would fund critical priorities such as border security, homeland security, and putting more police officers on the street, the President has recklessly threatened to veto it.  For a President already lacking in credibility, it is dangerous to issue veto threats based on press reports alone… America expects this President to lead – that means working in a bipartisan way with Congress to responsibly address our country’s priorities rather than issuing veto threats without even knowing what he is threatening to veto.”  

DEFENSE AUTHORIZATION CLEARS CONFERENCE COMMITTEE

House and Senate conferees have completed the National Defense Authorization Bill for Fiscal Year 2008 (H.R. 1585) conference report on December 6th. The legislation authorizes $506.9 billion in budget authority for the Department of Defense (DoD) and the national security programs of the Department of Energy (DOE).

The Senate Armed Services Committee Chairman Carl Levin stated, “I am pleased that this strong, bipartisan conference report contains a number of provisions to improve the quality of life for our men and women in uniform.” The legislation does more than expand on quality of life issues poignant to military personnel; it enhances quality of life issues affecting civilian personnel.

The legislation made several compromises on the NSPS (National Security Personnel System) front. The bill restores collective bargaining rights and access to an appeals system, while maintaining the Department’s ability to move forward with a flexible pay-for-performance system. The bill also allows for flexibility in hiring federal retirees who decide to return to work. The retired federal employee who opts to return to service will continue to receive their annuity and will not be penalized for their additional public service.

Following the 3.5 percent pay raise Congress passed and the President signed for those serving in the armed forces, the conference report authorizes the raise. Additionally, the measure guarantees that NSPS employees receive 60 percent of the annual pay raise that most other General Schedule employees receive. The remaining 40 percent would be used for performance-related salary increases based on an employee's job rating.

Many changes were made in the area of contracting activities and services at DOD. In light of the scandals that have plagued private security contractors operating in combat operation areas in Afghanistan and Iraq, H.R. 1585 requires private security contractors to comply with the department’s regulations on the use of force. The legislation establishes a Commission on Wartime Contracting in Afghanistan and Iraq to investigate contracts for reconstruction, logistics support and security. Section 828 prohibits the use of earmarks to award no bid contracts for services.

A different contracting issue being debated in the halls of the Capitol has been the Office of Management and Budget’s Circular A-76. Section 365 of the authorization bill modifies the public-private competition requirements before a government function is converted to a contractor position. The legislation requires that a contractor shall not receive an advantage for a proposal that would reduce costs for DOD by decreasing the contractor’s share of their employee’s contribution to health insurance or not providing health insurance coverage, or retirement benefits that may differ from those provided by DOD to their employees. The legislation attempts to make the contracting process equitable and ensure that contractors do not decrease their proposal’s cost by neglecting employee benefits. Additionally, Section 367 of the bill requires that jobs must be performed by civilian employees unless the contractor’s offer saves $10 million or 10 percent of the personnel related costs for the same activity. Section 369 restricts OMB from directing the Secretary of Defense or the Secretaries’ of military departments to conduct a public-private competition.

For further information on H.R. 1585, please visit: http://thomas.loc.gov/.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

BUSH SPARKS OUTCRY WITH ALTERNATIVE PAY RAISE PLAN  

In a letter to the House of Representatives and the Senate, President Bush detailed his plan to provide a three percent pay raise to federal civilian employees in 2008, despite Congress’ support for a 3.5 percent pay raise. The plan would limit the locality pay increase for civilian employees to 0.5 percent next year. Members of our nation’s Armed Forces will receive a 3.5 percent pay increase next year. The President said an increase of 3.5 percent for civilians “would unacceptably interfere with our Nation’s ability to secure the homeland and the war on terrorism.”  

“In the same breath the President says his proposal allows us to better protect our homeland, he’s punishing the very people who do the protecting,” commented FMA National President Darryl Perkinson. “Considering the magnitude of work our nation’s employees perform, this is quite simply a slap in the face.”  

Additionally, the President is ignoring several years of legislative precedent of providing pay parity to military and civilian federal employees. Congress has approved the same average annual pay raise for the military and civilian workforce in 22 of the last 26 years. Recently, the President signed the fiscal year 2008 Defense Appropriations bill ( PL 110-116) which provided a 3.5 percent pay raise for members of the Armed Forces.

Under federal law, the president has until the end of November to propose an alternative to pay levels. Under the Federal Employees Pay Comparability Act, employees would be due a 2.5 percent base pay raise in 2008, plus locality pay increases averaging 12.5 percent. The law was designed to close the ever-growing gap between federal and private sector salaries.

Perkinson went on to say, “The federal government will soon experience a retirement wave which will severely the challenge the government to recruit the best and the brightest to federal civilian and military service. Low, disparate pay raises do not help that cause. Federal employees are on the front lines of the War on Terror and on the ground in Iraq. Now, more than ever, we should be recognizing and rewarding the contributions of America’s workforce.”  

For more information on the President’s plan, please visit: http://www.whitehouse.gov/news/releases/2007/11/20071128-5.html.  

ECHOS OF 1995 – 1996: DOD EMPLOYEES MAY BE FURLOUGHED

The pitched battle between President Bush and Congress over Defense spending on the combat operations in Iraq threaten the employment status of 100,000 civilian defense employees and 100,000 defense contractors.

At the top of its Web site, the Department of Defense blasted an ominous message noting that those civilian federal employees who work for the Army may receive layoff notices before Christmas if Congress and the White House cannot ameliorate their defense policy differences. Under federal rules, DOD must give 60 days advance notice of impending layoffs to employees.

Federal employees may be experiencing déjà vu. During the 1995 – 1996 budget squabble between congressional Republicans and President Clinton, 800,000 federal employees were out of work for three weeks during the December to January holiday season.

The current dispute between President Bush and Congressional Democrats and some Republicans stems from Bush’s request of $196 billion in supplemental funding for continuing combat operations in Afghanistan and Iraq. The President has laid blame at the feet of congressional Democrats for voting against the funding and the continuation of the administration’s policies in Iraq. Democrats have balked at the President’s demand, but have been willing to provide $50 billion in funding with a caveat that requires troop withdrawals from Iraq effective immediately. The measure, H.R. 818, passed the House on November 14th and would have funded combat operations for four months. Senate Republicans blocked a vote in their chamber and Bush threatened to veto the measure because the legislation required troop withdrawals within thirty days of the enactment, with a goal of ending U.S. combat operations by December 15, 2008.

The President signed into law the DOD appropriations bill worth $459 billion which the U.S. Army can use to fund some of their combat operations until the impasse ends. The shift in resources has begun. In November, Defense Secretary Robert Gates requested permission to shift $3.7 billion from the Navy and Air Force and $800 million from a working capital fund to Army and Marine Corps operations. The President has made it clear that he will direct DOD appropriation funds to continue the combat operations in Iraq and Afghanistan and the result will be shorting the civilian employees who are a key element for maintaining operations in Iraq and those who were suppose to receive the funding in the first place.

Members of the House sent a letter to the Defense Secretary questioning the Army’s decision to furlough civilian employees and contractors. The joint letter detailed that DOD has not utilized every budgetary flexibility available to delay furloughing federal employees. The Representatives questioned DOD’s assessment of its working capital and implored DOD to account for additional budgetary tools at its disposal, such as transferring working capital funds cash that is in excess of operating balances and assigning contract obligations to other services. The letter notes that “[a]ny loss of experienced employees threatens the effectiveness of the Department of Defense.” The Congressmen are concerned about the effect the furloughs may have on employee morale, noting that many employees eligible to retire may not return to service. The letter was signed by the Washington Metropolitan area Representatives - James Moran (D-Va.), Tom Davis (R-Va.), Chris Van Hollen (D-Md.), Frank Wolf (R-Va.), C.A. Dutch Ruppersberger (D-Md.), Eleanor Holmes Norton (D-D.C.), John Sarbanes (D-Md.), and Elijah Cummings (D-Md.)

For more information on the potential furloughs, please visit: www.dod.gov.  

OPM GIVES APPROVAL FOR AGENCY RETENTION INCENTIVES

The Office of Personnel Management (OPM) issued rules giving federal agencies flexibility to determine employee retention incentives. Under OPM’s guidelines, an agency is allowed to pay up to 25 percent, or in rare cases 50 percent, of an employee’s basic pay for retention purposes. Members of the Senior Executive Service (SES), those in the Executive Schedule and other senior officials are ineligible. This retention mechanism can be employed if an employee is likely to leave for a different position in the federal service before the closure or relocation of the employee’s office. The rules give agencies elbow room when it comes to retaining mission-critical employees.

OPM’s decision has been culminating for the past several years. The 2004 Federal Workforce Flexibility Act allows agencies the ability to offer incentives to employees who were presented positions elsewhere in the federal government. However, OPM refrained from utilizing these financial incentives due to the cost associated with doing so.

Another reason for OPM’s rule change is a response to the relocation of many federal employees due to the Base Realignment and Closing (BRAC) that have taken place over the past several years. An additional 800 Defense installations will be realigned by September 15, 2011. The Departments of Defense (DOD) and Homeland Security (DHS) will be experiencing significant personnel changes in the near future. DHS plans to move 14,000 employees to a new headquarters starting in 2012 while DOD is shifting 66,000 civilian jobs under BRAC.

OPM’s rules will go in effect December 17th. The rules were published in the Federal Register on November 16th. To access the Register, please visit: http://www.gpoaccess.gov/fr/index.html. For information on DOD’s relocation process, visit http://www.defenselink.mil/brac/ and for DHS’s process, visit http://www.dhs.gov/.

OMB SETS THE BAR FOR CONTRACTING OFFICIALS’ TRAINING

The Office of Management and Budget’s (OMB) Office of Federal Procurement Policy (OFPP) issued a memorandum to Chief Acquisition Officers on November 26th delineating the requirements for Contracting Officer Technical Representatives (COTR), those federal employees assigned to acquisitions. The memorandum mandates a minimum of 40 hours of training for COTRs. All COTRs appointed to a contract after November 26th must be certified no later than six months from their date of appointment and must continue training. Current COTRs must be certified within twelve months from now. The directive states that the chief acquisition officer of each agency is responsible for the policies and programs necessary to implement this certification program.

The COTR program requires such courses as Market Research and Ethics for Acquisition through the Federal Acquisition Institute (FAI) and the Defense Acquisition University (DAU). Now it is possible to be certified with an agency, through a commercially run course or by those offered at universities. In order to keep their certification, COTRs are required to keep up-to-date on the current procurement policies and earn forty continuous learning points every two years.

OMB’s changes to COTR training is a result of the recommendations made by the Merit Systems Protection Board report entitled, Contracting Officer Representatives: Managing the Government’s Technical Experts to Achieve Positive Contract Outcomes. The report was sent to the President and Congress in December 2005.

To view the training requirements issued by OMB, please visit: http://www.whitehouse.gov/omb/procurement/. The MSPB study can be reviewed at: http://www.mspb.gov/sites/mspb/default.aspx/.

OPM AWARDS FEDERAL AGENCIES FOR MANAGEMENT EXCELLENCE

The Office of Personnel Management (OPM) Director Linda Springer presided over the 2007 Presidential Award for Management Excellence in Washington, D.C. on December 3rd. Six federal agencies received these prestigious awards out of the fifty-four agencies and programs that applied for the honor.

The President’s Quality Awards recognize the accomplishments of organizations that further the Administration’s objectives. Organizations are distinguished for their performance and results. The winners of the award are the poster child of the model agency that provides services that are “citizen-centered, results-oriented, and market-oriented.” The awards are based on agency scores under the President’s Management Agenda (PMA) Scorecard that was submitted by March 31st of this year. The award is broken down into three categories. To be eligible for a Category One award, an agency must have a yellow status or better for the Government Management Initiative. To apply for a Category Two award, an agency’s status must be green for the Government-wide Management Initiative. The Category Three award requires an agency to have achieved green status in four of the Government-wide Management Initiatives’ and at least a yellow in the other area.

The Environmental Protection Agency (EPA) received the federal government’s highest honor for strong and effective management. EPA was only one of two applicants for the highest tier of the award for Overall Management. EPA was honored for its success in integrating management systems identified under the Government-wide Management Initiatives. The initiatives focus on Strategic Management of Human Capital, Budget and Performance Integration, Expanded Electronic Government, Competitive Sourcing, and Improved Financial Performance. EPA has implemented a publicly available Quarterly Management Reporting (QMR) system that enables EPA to gauge progress in 60 priority areas.

The Department of Health and Human Services (HHS), the Agriculture Department (USDA) and the General Services Administration (GSA) were honored for Agency-wide Performance in Government-wide Management. HHS was recognized for its competitive sourcing efforts, especially the department’s establishment of monthly managers meetings and was the first to independently validate its cost savings from competitive sourcing. The USDA Food and Safety Inspection Service won recognition for its human capital performance for developing a public health human resources system that offers additional flexibilities and boosted the agencies’ flagging recruitment efforts. GSA’s USA Services initiative, including USA.gov and 1 (800) FED-INFO, were honored for providing a single portal for access to the government and decreasing the costs per use.

HHS and the Department of Housing and Urban Development (HUD) won for Innovation and Exemplary Practices. The Centers for Disease Control and Prevention’s (CDC) cost-saving partnership with OMB earned honors for its competitive sourcing efforts and the income verification system designed by a HUD employee to eliminate improper housing assistance payments, moving the department from OMB’s high-risk list was applauded for improved financial accountability.

"I am pleased to honor the extraordinary work done by the recipients of this important award," said OPM Director Springer. "Their outstanding contributions help our government work efficiently and effectively."

For information on the EPA award, please visit: http://www.epa.gov/. For OPM Director Springer’s remarks, visit: http://www.opm.gov/. The criteria for this year’s Presidential Award for Management Excellence can be located at: https://www.opm.gov/pqa/criteria_2007.pdf.

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GET INVOLVED AT THESE EVENTS!

FMA ZONE 1 CONFERENCE SET FOR FEBRUARY

For the ninth straight year, the FMA Zone 1 Conference will be held at the Pier 4 Hotel in Somers Point, NJ, February 1 – 3, 2008. The registration cost is $30 per delegate and the FMA room rate is $70. Hotel reservations can be made by calling 1-888-927-9141. Contact Zone 1 President Mike Donovan with any questions or for more information, donovanme@aol.com.

A full agenda can be found on FMA’s Web site. Please keep checking back with us online at www.fedmanagers.org for up-to-date information.

Human Capital Management for Defense 2008 (HCMD 2008)

Human Capital Management for Defense (HCMD 2008) is critical to your success in strategically managing human capital. Learn how senior leaders are developing the right mix of skills across the total force, aligning skills to requirements, and addressing competency gaps. Attend HCMD 2008 to gather best practices in the recruitment and retention of quality personnel and learn about exciting workforce development initiatives across DOD. For more information, please visit www.hcmd2008.com. FMA is an official cosponsor of this conference.

The event will be held February 26-29, 2008 at the Marriott Crystal Gateway, Arlington, VA.

PRELIMINARY AGENDA SET FOR FMA’S NATIONAL CONVENTION!

Planning for the Federal Managers Association 70th annual National Convention is underway! The event will take place March 9 – 13, 2008, at the Hilton Crystal City Hotel in Arlington, Virginia. Delegates can expect to receive a wealth of knowledge from private sector and government leaders under this year’s convention theme, Empowering America’s Workforce for the Challenges of Today, Tomorrow and Beyond.

Registration for the convention is now available. Please continue to check the “Events” section of the FMA Web site, www.fedmanagers.org, for the most up-to-date information. We look forward to seeing you in March!

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Long Term Care Partners, LLC, FMA Corporate Partner.  Long Term Care Partners is the administrator of the Federal Long Term Care Insurance Program.  Sponsored by the U.S. Office of Personnel Management, the Program is available to Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives.  With more than 210,000 enrollees, it is the largest employer-sponsored long term care insurance program in the country.  FLTCIP policies are simple to understand and offer enrollees some distinct advantages, including comprehensive coverage, competitive and stable rates, international coverage, and administrative service standards that are the highest in the long-term care insurance industry.  Policies are sold direct through a highly-trained, non-commissioned staff with no high pressure sales tactics – simply sound advice.  Visit www.LTCFEDS.com or http://www.opm.gov/insure/ltc/index.asp for more information.

Blue Cross Blue Shield Association Federal Employee Program , FMA Sustaining Corporate Partner:  The Blue Cross and Blue Shield Association represents the independent, locally operated Blue Cross and Blue Shield Plans. The 40 local member companies of the Blue Cross and Blue Shield Association have provided millions of families with top-quality, affordable health insurance for more than 70 years.  For the one in four Americans who carry Blue Cross and Blue Shield cards, the Blue Plans symbolize health security.  Visit www.fepblue.org and join the best, most-recognized group of health insurance providers in the world.

Wright & Co., FMA Sustaining Corporate Partner:  Wright & Co. has provided supplemental insurance programs to the Federal government for over 40 years.  They have built strong relationships with insurance companies and service providers to offer these comprehensive benefits at low, affordable group insurance rates.  Benefits include: Dental Insurance Plans; Term Life Insurance Plans; Accidental Death and Dismemberment Plan; and Personal Umbrella Plan.  Wright & Co. is also the originator of the Federal Professional Liability Program and provider of Disability Income Replacement coverage, underwritten by the Hudson Insurance Group, to all Federal employees.  For more information, please visit:  www.wrightandco.com.

GEICO, FMA Corporate Partner:  GEICO was created over 60 years ago to insure Federal employees.  Over the years GEICO has continuously strengthened its affiliation with the Federal workforce.  Today GEICO has a special program established to support the Federal community.  GEICO’s Federal program participates in the following organizations and programs: GEICO Public Service Awards, which  have honored Federal workers (active and retired) who have contributed to the public good since 1980; and GEICO Federal Leave Record Cards, which for over 40 years have been provided by GEICO to Federal employees, free of charge, to help them track their annual leave.  Find out how much you could save with GEICO auto insurance as an FMA member by getting a line-by-line rate quote at:  www.geico.com.

Shaw, Bransford, Veilleux and Roth, P.C., (SBVR) concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers.  SBVR serves as General Counsel to the Federal Managers Association and is uniquely situated to recognize the interests and viewpoints of Federal managers.  For up to two free half-hour legal consultations and reduced legal fees as an FMA member, please visit:  www.shawbransford.com.

The Federal Managers Association and Management Concepts have teamed up to present the Federal Managers Practicum — a targeted certificate program for Federal managers. As the official development program for FMA, the Federal Managers Practicum helps FMA members develop critical skills to meet new workplace demands and deepen their managerial capabilities.  FMA’s leadership fully recognizes the need to prepare career-minded federal employees to manage the demands of the 21st century workplace with greater competence and fully supports this unique and comprehensive certificate program.  For more information, please visit:  www.managementconcepts.com/fmp/fmpodp.asp.

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The Washington Report is published biweekly by the Federal Managers Association.
Jessica Klement, Editor; FMA Staff Writers.

The Federal Managers Association, established in 1913, is the oldest, largest, most influential association representing the interests of the nearly 200,000 managers, supervisors and executives serving in today’s Federal government.

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