The Human Resources Role in

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• The Human Resources Role in
• Competitive Sourcing

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Topics

• Presidents Management Agenda (PMA)
• Office of Management and Budget (OMB) Roles
• Competitive Sourcing Rules
• The FAIR Act and Inherently Governmental
  Inventory Process
• A-76 Competition Process Overview
• Human Resource Advisor (HRA)
• The HRA Five Step Organization Change Process
• Summary
• Questions
• Formal Guidance
• Acronyms
• Backup Materials

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The Presidents Management Agenda (PMA) Objectives

• Why does the President have a Management Agenda?
• The President has called for a Government that
  focuses on priorities and executes them well. By
  focusing on performance the Government can
  achieve the desired results at limited additional
  cost or, in some cases, a reduction in spending.
• What is the President's Management Agenda?
• It is a bold strategy for improving the
  management and performance of the Federal
  Government. The Agenda contains five
  Governmentwide goals to improve federal
  management and deliver results that matter to the
  American people.

Source www.results.gov
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The Presidents Management Agenda Goals

• What are the Five Governmentwide Goals?
• Strategic management of human capital
• Competitive sourcing
• Improved financial performance
• Expanded electronic government
• Budget and performance integration
• Why were these five goals chosen?
• The President's Management Agenda is designed to
  address the most apparent deficiencies where the
  opportunity to improve performance is the
  greatest
• The Presidents Management Agenda focuses on
  remedies to problems generally agreed to be
  serious, and commits to implement them fully

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The Office of Management and Budget (OMB) Roles

• Administers the Presidents Management Agenda
• Applies scorecard criteria to measure agencies
  progress toward achieving goals
• Is responsible for working with agencies to
  implement Proud to Be goals
• Oversees implementation of the Federal Activities
  Inventory Reform (FAIR) Act
• Publishes Circular A-76, Performance of
  Commercial Activities
• New rules as of May 29, 2003

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Competitive Sourcing Rules

• The Federal Activities Inventory Reform (FAIR)
  Act
• Has been a management tool since 1998
• Requires agencies to publish a list of commercial
  activities for challenge and appeal by interested
  parties
• Forms the basis for an agencys determination and
  selection of candidates for public-private
  competition
• OMB Circular A-76, Performance of Commercial
  Activities
• Has been a management tool since the 1950s
• Is a regulated and structured process for
  conducting public-private
  competition
• Requires agencies to publish lists of inherently
  governmental activities for challenge and appeal
  by interested parties

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The FAIR Act and Inherently Governmental
Inventory Process

• Annually
• Office of Management and Budget (OMB) transmits
  instructions to agencies for inventories
  preparation
• Agencies develop their inventories and submit
  them to OMB by June 30
• OMB consults with agencies on the composition of
  inventories
• OMB posts a Federal Register notice
  (www.nara.gov) stating inventories are available
  for public review and challenge
• Agencies
• Make their inventories publicly available
• Transmit copies of the inventories to both houses
  of Congress
• Initiate and resolve challenges and appeals
• If needed, transmit updated inventories to OMB
  and Congress

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The FAIR Act and Inherently Governmental
Inventory Process

• OMB Circular A-76, Inherently Governmental
  Definitions
• An inherently governmental activity is an
  activity that is so intimately related to the
  public interest as to mandate performance by
  government personnel. These activities require
  the exercise of substantial discretion in
  applying government authority and/or in making
  decisions for the government. Inherently
  governmental activities normally fall into two
  categories
• the exercise of sovereign government authority or
• the establishment of procedures and processes
  related to the oversight of monetary transactions
  or entitlements.
• The Competitive Sourcing Official shall justify,
  in writing, any designation of government
  personnel performing inherently governmental
  activities.

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The FAIR Act and Inherently Governmental
Inventory Process

• OMB Circular A-76, Inherently Governmental
  Definitions (continued)
• An inherently governmental activity involves
• binding the United States to take or not to take
  some action by contract, policy, regulation,
  authorization, order, or otherwise
• determining, protecting, and advancing economic,
  political, territorial, property, or other
  interests by military or diplomatic action, civil
  or criminal judicial proceedings, contract
  management, or otherwise
• significantly affecting the life, liberty, or
  property of private persons or
• exerting ultimate control over the acquisition,
  use, or disposition of United States property
  (real or personal, tangible or intangible),
  including establishing policies or procedures for
  the collection, control, or disbursement of
  appropriated and other federal funds.

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The FAIR Act and Inherently Governmental
Inventory Process

• Commercial Activity Definition
• A commercial activity is a recurring service that
  could be performed by the private sector and is
  presently resourced, performed, and controlled
  by the agency through performance by government
  personnel, a contract, or a fee-for-service
  agreement.
• A commercial activity is not so intimately
  related to the public interest as to mandate
  performance by government personnel.
• Commercial activities may be found within, or
  throughout, organizations that perform inherently
  governmental activities or classified work.

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The FAIR Act and Inherently Governmental
Inventory ProcessCommercial Activity Reason Codes
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A-76 Competition Process Overview
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OMB Circular A-76 Competition Officials

• Performance Work Statement (PWS) Team Leader
  leads a team of functional experts to develop the
  PWS and Quality Assurance Surveillance Plan
  (QASP).
• Contracting Officer (CO) works with the PWS Team
  Leader to publish the work requirements in
  FedBizOpps and conducts the competitive
  procurement process.
• Agency Tender Official (ATO) leads a team of
  functional experts (the Most Efficient
  Organization team) to prepare the agencys
  tender.
• Human Resource Advisor (HRA) performs employee
  relations assistance and assists the ATO to
  prepare the agencys tender.
• Source Selection Authority (SSA) is responsible
  for making the source selection decision and
  appoints the Source Selection Evaluation Board
  (SSEB) members.

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OMB Circular A-76 Competition Officials

• Required Independence (Firewalls)
• Red Boxes Centralized Oversight
• Green Boxes PWS Team Leader PWS Team, CO, SSA,
  SSEB, TET
• Blue Boxes ATO, MEO Team Leader, MEO Team, HRA

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Human Resource Advisor (HRA)

• The HRA shall
• be an inherently governmental agency official and
  a human resource expert,
• comply with this A-76 circular, and
• be independent of the
• Contracting Officer,
• Performance Work Statement team,
• Source Selection Authority, and
• Source Selection Evaluation Board.

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Human Resource Advisor (continued)Employee and
Labor-Relations Requirements

• The HRA shall, at a minimum, perform the
  following
• interface with directly affected employees (and
  their representatives) from the date of public
  announcement until full implementation of the
  performance decision,
• identify adversely affected employees,
• accomplish employee placement entitlements in
  accordance with 5 CFR Part 351 (reduction-in-force
  procedures),
• provide post-employment restrictions to
  employees,
• determine agency priority considerations for
  vacant positions and establish a reemployment
  priority list(s) in accordance with 5 CFR Part
  330, and
• provide the Contracting Officer with a list of
  the agencys adversely affected employees, as
  required by this attachment and FAR 7.305(c)
  regarding the right of first refusal for a
  private sector performance decision.

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Human Resource Advisor (continued)MEO Team
Requirements

• The HRA shall assist the ATO and MEO team in
  developing the agency tender. During development
  of the agency tender, the HRA shall be
  responsible for
• scheduling sufficient time in competition
  milestones to accomplish potential human resource
  actions in accordance with
  5 CFR Part 351 Reduction in Force,
• advising the ATO and MEO team on position
  classification restrictions,
• classifying position descriptions, including
  exemptions based on the Fair Labor Standards Act,
• performing labor market analysis to determine the
  availability of sufficient labor to staff the MEO
  and implement the phase-in plan,

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Human Resource Advisor (continued) MEO Team
Requirement

• The HRA shall assist the ATO and MEO team in
  developing the agency tender. During development
  of the agency tender, the HRA shall be
  responsible for
• assisting in the development of the agency cost
  estimate by providing annual salaries, wages,
  night differentials, and premium pay,
• assisting in the development of the timing for
  the phase-in plan based on MEO requirements, and
• developing an employee transition plan for the
  incumbent agency organization early in the
  standard competition process.

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Human Resource Advisor (continued)Additional
Responsibilities

• Cancellation of a Streamlined or Standard
  Competition
• The HRA shall notify directly affected employees
  and their representatives of the cancellation
• Cancellation of a Solicitation
• The HRA shall notify directly affected employees
  and their representatives of the cancellation
• Performance Decision
• The HRA shall notify directly affected employees
  (and their representatives) of the performance
  decision

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The HR Five Step Organization Change Process

• From The Human Resources Role in Managing
  Organization Change, FPMI, 2004.

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Step 1. Pre-plan the Organization Change Effort

• Begins when an activity considers conducting an
  A-76 competition
• Meet with the Activity Head to discuss the HR
  role
• Select HR advisors and team members who will
  participate in the effort
• Develop the HR Action Plan
• Assist the Activity Head in understanding union
  involvement

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Step 2. Plan the Organization Change Effort

• Begins upon announcement of A-76 competition
• Assist with developing the Action Plan and
  Communication Plan
• Review existing recruitment and promotion actions
• Plan and perform actions to manage employee
  attrition
• Assist with briefing the Activity Head
• Develop the employees information profile for
  verification
• Distribute the revised information profile to the
  affected employees
• Assist in preparing and presenting the Workforce
  Briefing
• Identify employees whose performance is less than
  satisfactory
• Address personnel issues from employees
• Establish a Human Resources technical reference
  library

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Step 3. Prepare to Develop the Organization
Change Management Plan

• Begins with development of the Performance Work
  Statement
• Collect position descriptions for all affected
  positions
• Determine and revise competitive areas, levels,
  and service computation dates
• Identify salaries and wage rate determinations
• Prepare the Labor Market Analysis
• Provide advice to the A-76 team on qualification
  and classification issues

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Step 4. Develop the Organization Change
Management Plan

• Begins with development of the Agency Tender
• Assist the A-76 team to develop the proposed Most
  Efficient Organization Staffing Plan
• Review and finalize all proposed Management Plan
  position descriptions for all affected positions
  in the activity
• Conduct the mock RIF and assist with computing
  one-time conversion costs
• Provide support to the A-76 team to develop the
  Most Efficient Organization
• Assist the A-76 team in developing personnel
  costs
• Determine and prepare recruitment actions
• Advise the Activity Head of RIF
  implications/timeliness issues
• Participate in writing the Phase-in or Transition
  Plan

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Step 5. Implement the Organization Change

• Begins upon Performance Decision
• Staff the Most Efficient Organization
• Conduct HRM transition actions
• Conduct outplacement actions
• Coordinate Right of First Refusal for contractor
  vacancies
• Maintain post-organization change accountability

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Summary

• The Human Resource Advisor
• communicates with labor representatives and
  employees throughout the competition to interpret
  and apply personnel rules,
• works with the Agency Tender Official and the
  Most Efficient Organization Team to correctly
  apply position classification standards in
  developing the MEO staffing plan, and
• develops and assists in implementing the HR
  transition plan as part of the Phase-in Plan.

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QUESTIONS?
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Formal Guidance

• Federal Activities Inventory Reform (FAIR) Act of
  1998
• OMB Circular A-76, Performance of Commercial
  Activities, May 29, 2003 (www.omb.gov)
• Federal Acquisition Regulation (FAR)
  (www.gsa.gov)
• Other applicable acquisition regulations
• Departmental guidance
• Presidents Management Agenda (PMA) for
  Competitive Sourcing (www.results.gov)

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Acronyms

• ATO Agency Tender Official
• CFR Code of Federal Regulations
• CO Contracting Officer
• CSO Competitive Sourcing Official
• FAIR Act Federal Activities Inventory Reform Act
  
• FAR Federal Acquisition Regulation
• FTE Full-Time Equivalent
• HRA Human Resource Advisor
• MEO Most Efficient Organization
• OMB U.S. Office of Management and Budget
• PMA Presidents Management Agenda
• PWS Performance Work Statement
• QASP Quality Assurance Surveillance Plan
• ROFR Right of First Refusal
• SCF Standard Competition Form
• SLCC Streamlined Competition Form
• SSA Source Selection Authority
• SSEB Source Selection Evaluation Board

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Backup Materials
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Successful organization change requires

• Active leadership involvement
• Ongoing communication
• Continuous project planning and execution
• Trained and motivated team members
• Pro-active human resource specialist involvement
• Timely resolution of issues
• Expert consultant support (as needed)

Remove one of these elements and the
organization change efforts success is
diminished.
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Competition Types

• Streamlined Competition
• 65 or fewer FTE
• 90 days to complete (Up to 135 days with approved
  waiver)
• Standard Competition
• any number of FTE
• 12 months to complete (Up to 18 months with
  approved waiver)

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Competition TypesAdvantages and Disadvantages

• Competition in General
• Advantages
• Can result in cost avoidance and hard dollar
  savings
• Can help achieve human capital planning goals
  (e.g., integration with staffing plans)
• Can help managers to better determine and
  allocate funding priorities
• Disadvantages
• Is generally disruptive to the organization
• Requires diversion of staff away from their
  routine duties
• Will likely negatively impact already existing
  organizational problems

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Competition TypesStreamlined Competition

• Activities with 65 or fewer FTE
• 90 days to complete (Up to 135 days with approved
  waiver)
• Requires FedBizOps postings
• May require issuing a solicitation
• Requires development of a MEO (11 or more FTE)
• Requires 10 Cost Differential be applied for 11
  or more FTE
• Compares cost of existing organization or MEO to
  comparable private sector or public reimbursable
  source cost
• Requires issuance and conformance with a Letter
  of Obligation if agency tender prevails
• Final decision is not contestable

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Competition TypesStandard Competition

• 12 months to complete (Up to 18 Months with
  approved waiver)
• The CSO may grant a waiver beyond 12 months if
  the CSO
• expects the competition to be particularly
  complex
• signs the time limit waiver before public
  announcement and
• provides a copy of the time limit waiver to the
  Deputy Director for Management, OMB, before
  public announcement.
• Requires FedBizOps postings
• Requires issuing a solicitation
• Requires development of an agency tender
• Requires issuance and conformance with a Letter
  of Obligation if agency tender prevails