NEWS RELEASE

Washington, DC - Following President George Bush's on-stage salute today of 410 career federal executives at DAR Constitution Hall, Kay Coles James, Director of the U.S. Office of Personnel Management, and two other Administration officials discussed the Administration's Managerial Flexibility Act of 2001.

The Managerial Flexibility Act, a supporting legislative piece of the Administration's Freedom to Manage Act of 2001, has been proposed by the President as a way to simplify and improve the environment under which government managers supervise employees, resources and other assets.

Among its features, the Managerial Flexibility Act would give greater latitude to agencies and managers to award recruitment and retention incentives, pay employee costs in obtaining an academic degree, and expand the use of buyouts and early retirements to restructuring exercises.

"The work of career employees and political appointees over the last nine months has been outstanding," Bush told the audience. "Our nation is grateful for all the men and women who serve and sacrifice." The President applauded the career executives -- members of the Senior Executive Service -- for their "dedication, integrity, commitment to excellence and love of country."

According to James, who was joined in the discussion by Sean O'Keefe, Deputy Director of the Office of Management and Budget, and Steve Perry, Administrator of the General Services Administration, the Managerial Flexibility Act will add muscle to existing compensation flexibilities. The Act also would allow for the speedy termination of regulations that agencies identify as hindrances to good business. Where required, the Act would serve as a proponent of legislation to remove obstacles to sound business practices, such as the termination of outdated regulations.