In Maryland, Senators Sarbanes and Mikulski, and Representatives Wynn and Van Hollen were notified. The names of directly affected PHMSA employees were not provided in order to protect their privacy.

If you are a directly affected PHMSA Headquarters employee, please let us know at A76@dot.gov if you would like us to provide your name to your Representative and/or Senators.

PHMSA established a working group, with members from each program office, to develop its 2003 inventory. In summary, PHMSA identified 983.8 FTE of which 520.2 FTE were coded Inherently Governmental, and 463.6 FTE were coded Commercial. Of the Commercial functions, 88.1 FTE were submitted with reason code B - which means they are suitable for competition. The RSPA 2003 FAIR Act inventory, as part of the DOT inventory, can be found at:
http://www.dot.gov/ost/m60/fairact/index.html#inventory1.

Continue performing your job as always. Interact with contractor personnel the way you always have. You should not discuss the planned A-76 competition with those employees, or answer any questions they may have about the competition.

Once PHMSA develops the Requirement Statement/Statement of Work, it will be provided to the Agency Tender Official - ATO who will work with you in preparing a proposal for submission to the Contracting Officer in a sealed envelope. The ATO is encouraged to develop a new "Most Efficient Organization" as part of the proposal. It is possible that the ATO, in attempting to submit a proposal with the best chance of winning, may develop a new "Most Efficient Organization" with some of the work (for example where there are current vacancies) planned to be subcontracted to the private sector. If that occurs, the proposal will consist of a certain amount of work proposed to be performed by Government employees, and a portion by contractor employees. To prepare that type of a proposal the ATO may be in contact with management personnel of private sector companies. It is important that you stay in touch with, work closely with, and share information with, the ATO during the critical proposal preparation process. (See Question 7).

Contractors who are potential bidders on a commercial function under study should not contact employees working in the functional area. However, in the event that you are contacted, please do not disclose any information about the operations of the functional area. Please refer the requestor to the Competitive Sourcing Coordinator (Tom Scott), who will in turn refer the matter to the assigned contracting officer.

The fact that a special rate has been authorized for a position does not preclude including that position as part of competitive sourcing. The reasons for establishing a special rate and for conducting a competition are different. Special rates are established for positions when the Office of Personnel Management (OPM) determines that the higher rates are necessary to assist Federal agencies to fill the positions. Special rates are usually defined by geographic area, series and grade. Thus, all the positions in a geographic area in a designated series and at the designated grade(s) are covered by the special rate regardless of the particular situation at an agency.

The Federal Activities Inventory Reform (FAIR) Act of 1998 requires functions performed by Federal employees to be designated either as inherently governmental or commercial. This designation is based solely on the nature of the function, not on the individual positions that are required to perform the function. The fact that a position is covered by a special rate has no bearing as to whether it is part of an inherently governmental or a commercial function.

If a function is determined to be commercial and the agency conducts a competition for that function, the key determination will be whether the Federal government or a contractor can perform the function in a more cost effective manner. The salaries paid to special rate employees will be considered as part of the Federal government's costs during the competition process versus the contractor's costs for performing the same functions.

If the government wins, RSPA will be required to implement the Most Efficient Organization (MEO) as it was proposed by the Agency Tender Official. If the MEO proposal calls for fewer full time equivalents (FTE) than the current number of FTEs performing the function, management will look at its options to meet the MEO, while minimizing adverse effects on RSPA employees

RSPA is committed to working hard to help affected employees and minimize personal impact. First, RSPA will assertively pursue voluntary actions and the full range of services to "soften the landing" of affected employees. (See Question 19). It is also RSPA's goal to either avoid or minimize the need for a reduction-in-force. (See Question 21.)

Yes. If the MEO establishes positions at lower grades than currently exist, and your position is abolished, RIF (see Question 21) procedures may allow you to be placed in a lower graded position. If this is the case, grade and pay retention regulations apply. (See Question 27.)

Yes. If the MEO wins the competition a Letter of Obligation (LOO) (similar to a contract with a commercial organization) is executed between the MEO (signed by the ATO) and the agency (signed by the CO). The LOO will contain a specified period of performance (e.g. five (5) years) for performance of the activity by the MEO. At the end of the LOO period of performance the agency is required to evaluate whether another competition of those functions is warranted.

First, RSPA will actively pursue "soft landing" alternatives for employees. (See Question 19.) It is also RSPA's goal to either avoid or minimize the need for a reduction-in-force. (See Question 21.) Employees whose functions undergo competition and subsequently are converted to a private sector contractor are also eligible for Right of First Refusal (ROFR). (See Question 13.) Federal Acquisition Regulations provide for the ROFR that requires the successful contractor to offer affected employees first consideration for open positions available under the contract for which they qualify. A standard clause indicating this is included in the Requirement Statement and the resulting contract.

If the contractor has vacancies under the new contract containing the functions that were awarded under the A-76 competition and the displaced employees are qualified, they have the Right of First Refusal. The Right of First Refusal does not guarantee employment by the contractor. The contract clause "Right of First Refusal of Employment" is from the Federal Acquisition Regulation (FAR) 52.207-3. The full text of that clause appears below:

52.207-3 Right of First Refusal of Employment. Right of First Refusal of Employment (Nov 1991)

(a) The Contractor shall give Government employees who have been or will be adversely affected or separated as a result of award of this contract the right of first refusal for employment openings under the contract in positions for which they are qualified, if that employment is consistent with post-Government employment conflict of interest standards.

(b) Within 10 days after contract award, the Contracting Officer will provide to the Contractor a list of all Government employees who have been or will be adversely affected or separated as a result of award of this contract.

(c) The Contractor shall report to the Contracting Officer the names of individuals identified on the list who are hired within 90 days after contract performance begins. This report shall be forwarded within 120 days after contract performance begins.

(End of clause)

A contractor must pay wages based on the Department of Labor Service Contract Act (SCA) wage determinations specified in the solicitation. Except for bona fide executive, administrative and professional positions exempt from SCA wage determination coverage, any employee must be paid the minimum wage determined by the Federal Labor Standards Act. Contractors do not have to pay the same as the government does and there is no requirement that the selected contractor be obligated to include any benefits not included in a SCA wage determination. However, there are contractors who have employee benefit packages that offer higher salaries and benefits than the government.

Post-Employment (18 U.S.C. 207), Representation (18 U.S.C. 203 and 205) and Procurement Integrity Act (41 U.S.C. 423) restrictions may apply to some A-76 team participants involved in the acquisition process (e.g., source evaluation or selection). Employees should check with their RSPA Ethics Counselor for specific guidance.

Time frames for start dates at the company would be determined by a Transition Plan and Memo of Understanding with the contractor which will be developed.

While the study is taking place, employees are expected to continue performing their work assignments in the same manner as before the study was announced. They are also given the opportunity to participate in the development of the statement of work that will be used and the design of RSPA's proposal to meet that statement of work. Until the study is completed and a decision made, it is impossible to predict the outcome or degree of impact. While feelings of uncertainty, stress, and/or anxiety are natural, RSPA is committed to providing a supportive atmosphere to help employees be pro-active in dealing with these emotions. Employees are free to explore other career options. However, we would encourage employees not to make hasty decisions with so many unknowns.

Human Resources staff is available to provide you information about your particular situation. If you feel you would like to meet with someone for a confidential counseling session, the employee assistance program is also available 24 hours a day, 7 days a week. RSPA HQ and field employees, other than the Volpe Center, call 1-800-222-0364 for a private appointment. RSPA/Volpe Center employees call 617-565-6533 or 1-800-869-8867. Volpe Center bargaining unit employees represented by NAGE Local R1-195 may also want to confer with their union representatives.

RSPA will assertively seek local reassignment opportunities within RSPA and DOT for employees and also work with the Department to request early retirement authority, as well as requesting authority to offer separation incentives (buy outs). (See Question 20.) Employees will be provided career transition services, e.g., training in resume writing and interviewing skills, and given certificates entitling them to priority consideration for positions inside and outside of RSPA. (See Question 24.) Retraining may also be provided to help employees close skill gaps or to equip the employees for transition to a new occupation. Retraining may consist of existing mechanisms such as cross-training, mentoring, and rotational assignments. Grade and pay retention will be provided within the regulations covering those benefits. (See Question 27.) If separated from the Federal service, employees will continue to receive placement assistance for a period of time and if eligible, severance pay and unemployment compensation. (See Question 23.) Numerous benefits are also provided through State employment services.

Voluntary Early Out Authority (VERA) enables employees with at least 20 years of service and age 50, or 25 years of service and at any age to retire during a period established by the agency. Civil Service Retirement System (CSRS) employees under age 55 will have their annuities reduced by 2% a year for every year under 55, but there is no reduction for Federal Employee Retirement Service (FERS) employees. Those employees who transferred fromCSRS to FERS receive an annuity comprised of a FERS component and a CSRS component. The CSRS component will be subject to the reduction. The authority must be granted by the Office of Personnel Management (OPM). More information about VERA may be found at the Departmental Office of Human Resources Website.

Voluntary Separation Incentive Payment (VSIP) authority - commonly known as buyouts - generally enables people to get the lesser of what their severance pay would be if they were separated by RIF or $25,000, if they voluntarily leave by resignation or retirement. This authority must be granted by OPM and the Office of Management and Budget. More information about VSIP may be found at the Departmental Office of Human Resources Website.

Reduction-in-Force (RIF) refers to the statutory and regulatory procedures Federal agencies must follow when it is necessary to lay off employees, furlough them for more than 30 days, reassign them when doing so would displace another employee, or demote them because of lack of funds, reorganization, changes in program or decreases in work. Any of these situations might arise when a function previously performed in-house is converted to contract or the MEO implementation results in fewer positions. In all RIF actions, RSPA will provide AT LEAST a 60-day notice to all adversely impacted employees. For more information, see the "OPM Employee's Guide to RIF".

The "Office of Personnel Management's Employee's Guide to Benefits for Those Affected by Reduction in Force" covers how an employee's retirement, health, life insurance and the Thrift Savings Plan are affected when the employee is separated under RIF regulations. A copy may be obtained online at http://www.opm.gov/rif/general/egrifben.htm.

Yes. If employees are separated under a RIF (see Question 21), employees are entitled to severance pay unless they are eligible to retire. Eligibility for unemployment compensation is dependent upon individual state rules. Human Resources can provide employees with severance pay estimates. Employees can also estimate the amount of their severance pay using the "OPM Employee's Guide to Benefits" for those affected by RIF. Human Resources can also provide information about unemployment benefits.

There are several programs that provide placement priority to employees who are expected to be separated by a RIF. (See Question 21.) All have specific eligibility requirements so you should consult with Human Resources if you need further information.

• Employees who are identified as surplus can be given a Certification that entitles them to special placement privileges even before they get a specific RIF notice. If they apply for a DOT job in their same commuting area and are well qualified, they must be placed in the position. After they get a specific RIF notice saying they will be displaced, they get the same special treatment outside DOT as well. These privileges are part of the Career Transition Assistance Program - CTAP - (before the RIF notice is issued) and the Interagency Career Transition Assistance Program - ICTAP - (after a specific RIF notice). This priority remains for up to one year after separation unless the employee turns down an equivalent offer or gets an equivalent Federal position.
• Employees separated by Reduction in Force can apply to be on the DOT-wide Reemployment Priority List (RPL). When these employees qualify for a specific vacant position that is in a DOT organization in the local commuting area and at the same grade level as the job from which they have separated, that position cannot be filled from outside DOT without first offering the job to the qualified RPL registrant. In specific circumstances, this benefit may be available before employees are separated. Employees must register to be considered and can also choose to be considered for lower graded positions. The benefit is in effect for up to two years for career employees and one year for career conditional employees unless they turn down an equivalent offer or accept a permanent Federal position.

If you receive a certification of surplus status (see question 24) or a RIF notice (see question 21), you will receive official time to pursue career transition activities.

An employee is eligible for discontinued service retirement under both CSRS and FERS only if the employee is adversely impacted by an involuntary action (such as job abolishment or reassignment to a position in a different commuting area), and does not receive an offer from his or her agency of another position in the same local commuting area that is within two grades of the employee's present position.

1. The employee must be at least age 50 and have completed 20 or more years of total creditable service, or
2. The employee may be any age, but must have completed a minimum of 25 years of total creditable service.

Under the Civil Service Retirement System (CSRS), the gross annual annuity of an employee who retires before age 55 on a discontinued service retirement is reduced by 2% a year (or the month fraction thereof) for each year the employee is under 55. Under the Federal Employees Retirement System (FERS), there is no annuity reduction for employees who retire on a discontinued service annuity under the age of 55. Those employees who transferred from CSRS to FERS receive an annuity comprised of a FERS component and a CSRS component. The CSRS component will be subject to the reduction.

Grade and pay retention apply in certain situations when an employee is demoted through no fault of his/her own. For example, if an employee's position is abolished by virtue of being converted to a private sector contractor or an MEO that is not "status quo" (i.e. the MEO proposes changes to the existing organization and positions to make the organization more efficient and more competitive), and that employee is placed in a lower graded position through RIF procedures, (see Question 21) then grade retention would apply as long as the employee had served 52 consecutive weeks (or more) at a grade level higher than the grade to which the employee was demoted.

Eligible employees may receive grade retention for two years commencing on the date in which the employee is placed in the lower graded position. During the two-year period, an employee's retained grade is considered the employee's grade for pay administration purposes, retirement, life insurance, eligibility for training, and noncompetitive promotion. The employee is entitled to receive within grade increases and comparability (cost of living) increases at the retained grade level.

Pay retention comes into play when the two-year grade retention period expires for employees who were changed to a lower grade due to RIF procedures (see Question 21) or when employees are not eligible for grade retention (see Question 27). If an employee whose job was converted to a private sector contractor or to a non-"status quo" MEO had been changed to a lower grade and was unable to find a job at his or her original grade during the two-year grade retention period, then at the end of the two-year grade retention period, he or she is reclassified to the lower grade but is placed on pay retention. The employee is then entitled to retain his/her rate of basic pay earned before the expiration of grade retention. Pay retention continues until the maximum rate for the grade the employee is occupying equals or exceeds the employee's retained pay rate, unless one of the conditions under Title 5, CFR 536.209 is met. Under pay retention, an employee receives the full locality adjustment and only 50 percent of the general pay increase. Thus, each year the gap between the employee's retained pay rate and the rate of pay for the position occupied gets smaller.

For example: Sam Jones was downgraded from a GS-13 to a GS-11 position. At the end of the two-year grade retention period Sam is reclassified to the GS-11, however his pay is set at his current rate of pay (which exceeds the GS-11, step 10). While in a pay retention status (indicated on his SF-50 as, GS-11 step 00), he will receive 50 percent of the Federal Government's annual pay adjustment. This will cause the pay gap between his rate of pay and the GS-11 step 10 to narrow. Over time Sam's rate of pay will equal the rate of pay for a GS-11 step 10, his pay retention will terminate, and he will be entitled to the government's full annual pay adjustment.

If an employee who is not on a time limited appointment has been on the rolls for at least the preceding 12 months prior to separation by RIF (see Question 21) and is not entitled to an immediate retirement annuity as a Federal employee or member of the uniformed services, he or she is eligible for severance pay. Regardless of whether an employee elects retirement, if he or she is entitled to an immediate annuity (Discontinued Service Retirement, Optional Retirement or retired military), an employee is not entitled to severance pay. Specific questions about severance pay should be addressed to the Human Resources.

If the government is successful in the A-76 competition, the Most Efficient Organization will determine the number and types of positions retained to accomplish the work. Regardless of the outcome (either government or private sector), any adversely affected term or temporary employees will be afforded "soft landing services" to the extent stipulated in the regulations for those categories of employees. (See Question 19.) If the last resort of a Reduction In Force (RIF) (see Question 21) is necessary, temporary employees do not have assignment rights, term employees have limited assignment rights. See your Human Resources Advisor or Competitive Sourcing Coordinator for further information.

The flowchart depicts the steps in the RSPA Headquarters Competitive Sourcing process for the Administrative Services streamlined competition. The flowchart does not contain estimated completion dates. The estimated completion dates for the major events in the process are as follows:

• April 23, 2004 - Prepare the Requirements Statement
• April 30, 2004 - Contracting Officer accepts the Requirements Statement
• May 15, 2004 - Contracting Officer announces the competition in FedBizOpps. Requirements statement is provide to the Agency tender Official. This starts the 90-day clock (OMB requires that a performance decision be made in streamlined competitions within 90 days of the announcement in FedBizOpps).
• July 15, 2004 - Agency Tender Official submits signed proposal to the Contracting Officer. If a Most Efficient Organization (MEO) is developed it is submitted as part of the proposal.
• July 15, 2004 - Contracting Officer completes the private sector cost estimate, using documented market research.
• July 30, 2004 - Contracting Officer evaluates the Agency Tender Official's proposal vs. the private sector cost estimate.
• August 6, 2004 - Performance decision (in-house vs. private sector) made by Source Selection Authority. This stops the 90-day clock.
• August 13, 2004 - Contracting Officer publishes performance decision in FedBizOpps.

If the in-house proposal is selected, then a Letter of Obligation is issued by the Contracting Officer to the in-house team, a transition plan is developed, and the in-house proposal is implemented.

If the private sector cost estimate is selected, then an Acquisition Strategy is developed and implemented, as well as a transition plan. Once a selection decision is made, a contract is awarded to a private sector firm, and the transition plan (from in-house to private sector) is implemented.

The determination of functions that are commercial, and available for competition, was based on the definitions of "inherently governmental" and "commercial" as stated in OMB Circular A-76. The incumbents performing the functions did not affect the designation. In fact, some of the functions subject to competition are currently vacant. Further, in a few cases, part of the functions performed by a given individual are subject to competition but the rest are not being competed. If a performance decision is made, by the Source Selection Authority (SSA), to convert the functions to the private sector, RSPA will issue a solicitation and award a contract/delivery order to a private sector firm to provide the services. The private contractor is solely responsible for all employee staffing decisions regarding who will provide services under the contract. The contract/delivery order will contain the Right of First Refusal clause which states "The Contractor shall give Government employees who have been or will be adversely affected or separated as a result of award of this contract the right of first refusal for employment openings under the contract in positions for which they are qualified, if that employment is consistent with post-Government employment conflict of interest standards," and the contractor will also be bound by an Equal Opportunity clause which states, in part, "The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin."

The Requirements Statement is now tentatively scheduled to be provided to the Contracting Officer on May 28, 2004. I will ensure that all affected employees and their supervisors have reviewed the portion of the requirements statement pertaining to the functions that they perform. This will occur prior to the Requirements Statement being submitted to the Contracting Officer. [NOTE: As of June 2, 2004 the planned date for providing the Requirements Statement to the Contracting Officer is June 18, 2004.]

It is important to note that the determination of functions that are commercial, and available for competition, was based on the definitions of "inherently governmental" and "commercial" as stated in OMB Circular A-76. The incumbents performing the functions did not affect the designation. In fact, some of the functions subject to competition are currently vacant. Further, the fact that a position is identified as commercial and suitable for competition does not automatically indicate that any current incumbents will leave the agency - data on many recently run competitions indicate that in the vast majority of cases, the government employees have won.

That having been said, we recognize that there is a delicate balance to be achieved between the varying goals and initiatives of the agency, particularly when the functions that are defined by outside standards as commercial are also in occupations where we have heretofore successfully attracted more diversity than in other occupations. We will continue to seek to attract and retain diversity in all kinds of positions, most especially where diversity is severely lacking, and we will also seek to run the organization in the most efficient and effective way possible as the best value for the tax payer. The two goals are not mutually exclusive, and neither is more important than the other.

In an email from the Deputy Administrator to all RSPA employees dated November 24, 2003, employees were advised that the RSPA FY2003 FAIR Act Inventory had been approved by OMB and was available for public review at http://www.dot.gov/ost/m60/fairact/index.html#inventory1. At that time a challenge period of 30 working days after publication (November 21, 2003) of OMB's Federal Register notice was available to all employees, and the public to question: (a) the reclassification of an activity as inherently governmental or commercial, or (b) the application of reason codes. Function codes are not subject to the inventory challenge process. No formal challenges were submitted regarding the RSPA inventory. This process complied with OMB Circular A-76.

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The notation "LE10FTE" means "less than 10 full time equivalents." The term "Core" was used in the 2002 DOT inventory (as directed by OMB), to identify a Commercial function for which a cost comparison was not required to convert from in-house to contract because the decision as to who should perform the work is not primarily a cost-based decision. For functions classified in that manner, in 2002, no A-76 cost comparison was to be conducted. The acronym "FCT" stood for "Function Code" in 2002. For example D100 is a function code which stands for "Regulatory Activities Support" according to OMB Circular A-76.

Neither RSPA or BTS are viewing RITA as an "agency approved restructuring." BTS coded their functions as "E" based on a pending internal reorganization completely separate from RITA. This has been confirmed with the BTS competitive sourcing coordinator and BTS legal.

I will ensure that all affected employees are notified when the start date for the HQ competition is officially announced in FedBizOpps.

The web site is: www.fedbizopps.gov. When it is announced we will provide a copy directly to all affected employees.

The term "Most Efficient Organization" is an official term directly out of the A-76 Circular. It defines an MEO as "The staffing plan of the agency tender, developed to represent the agency's most efficient and cost-effective organization." While the A-76 Circular does not require that an MEO be developed in some kinds of competitions (so agencies will not develop them), for DOT agencies, the MEO is not an option. The recently enacted OMNIBUS funding bill requires all DOT agencies to develop an MEO as part of their competitive sourcing competition process. Pat Burke as the ATO will be forming an MEO Team to assist her in the development of the agency tender. Pat Burke has scheduled a training session for all affected employees on the ATO/MEO process for June 3, 2004.

The affected employees will be given sufficient time to review the sections of the Requirements Statement that are applicable to their own functions prior to it being provided to the Contracting Officer. The above milestone dates are based on our best estimates at any given point in time. The Requirements Statement is not officially completed until it is officially approved and accepted by the Contracting Officer. There may be some additional revisions needed to the Requirements Statement based on the preliminary review by the Contracting Officer. These milestone dates may be subject to further revisions if additional time is needed to ensure that the requirements statement accurately reflects the functions being performed by the affected employees.

Affected employees have been apprised personally of their options should the Government proposal not be selected for award. In addition, that subject is addressed on the RSPA Competitive Sourcing web site. Go to http://www.phmsa.dot.gov/about/competitive/competitive.html and click on "Questions and Answers." Then scroll down to Questions 10 through 16, and 19 through 30 which address this subject.

Answer: Please refer to question 34.

One (1) RSPA employee who performs functions subject to the current Competitive Sourcing (CS) competition at Headquarters has been appointed to a new position as a result of completion of the Student Career Experience Program. Such placement occurs if a position is available and is the expected outcome of successful completion of the program.

Employees who perform functions included in a CS competition retain all of their prerogatives as Federal employees, which include the right to apply and compete for any position for which they are qualified (through experience, training, and/or education). When an employee moves to a new position, the functions he or she previously performed remain part of the CS competition. The position (FTE) is just vacant at the moment. The moving employee is no longer directly affected by the CS competition, however, the FTE is. Turnover is commonplace because of retirements, promotions, geographic moves, and changes in careers or family situations. A vacancy does not affect the status of a function under CS.

The responsibility of managers for achieving the mission of their offices also is unaffected by CS. That includes the ability to fill vacancies with appropriately qualified candidates. RSPA managers may (and indeed are encouraged to) train and develop staff to assume larger responsibility and select those staff for vacancies for which they are qualified when it is in the interests of the agency mission. Any selection would be subject to rules and regulations appropriate to the circumstances (such as completion of a Co-Op program or selection under merit promotion for a higher graded job or one with more promotion potential).

Congresswoman Eleanor Holmes-Norton's staff (Mr. Christopher Hicks) was notified on March 8, 2004 of the upcoming RSPA HQ A-76 competition, and the fact that constituents in her Congressional district are affected.

Per the RSPA Human Resources staff, there are no known DOT policies that would prohibit contractor support staff from inputting time and attendance data into the T&A database. Final approval and overall management responsibility of RSPA employee's time cards within each RSPA office however must be performed by government personnel. Contractors are prohibited from being issued purchase cards or from placing orders under purchase cards on behalf of a government card holder. This restriction is not waived in any way by the competitive sourcing process.

The Competitive Sourcing information that has been posted on the RSPA internet web site is publicly available. Note, however, per RSPA policy, when acting in one's official capacity as a RSPA employee, all media and Congressional requests and correspondence must be coordinated with RSPA's Office of Government and Public Affairs (DPP).

The BAE delivery order statement of work is to provide technical support services on behalf of the 2004 RSPA HQ competitive sourcing competition. The contractor will provide support to the RSPA Agency Tender Official (ATO) in developing a most efficient organization (MEO) and the agency tender. Support is also being provided to the Requirements Statement (RS) Team Leader in developing the RS document. The value of the BAE delivery order is $70,000.

Please note that the challenge period relates to whether a position is commercial or inherently governmental, not to whether or not a commercial position is to be competed at a particular time. It is now recognized that communications to employees regarding the 2003 inventory process could have been much better. For 2004 all managers and supervisors have been directed to share with their employees the classification of functions performed by employees and all supporting documentation in the proposed 2004 FAIR Act inventory. Members of Congress representing districts and states where affected employee live were notified to inform them that RSPA was starting a process for an A-76 competition and that constituents in the district/state may be affected. The FY03 inventory has been made available to the public and to Congress as required by A-76. Following DOT and OMB final approvals, the FY04 inventory will also be made available to the pubic and Congress. The milestone dates (are updated periodically) are available on the RSPA competitive sourcing website and to the general public.

The Administrator's email notice of November 24, 2004 contained a link to the DOT competitive sourcing website. http://www.dot.gov/ost/m60/fairact/index.html#inventory1. This site contained links to "CY03 FAIR Act Inventory Challenge Period" and "Challenge and Appeal Process". Please note that the challenge period relates to whether a position is commercial or inherently governmental, not to whether or not a commercial position is to be competed at a particular time. It is now recognized that communications to employees regarding the 2003 inventory process could have been much better. For 2004 all managers and supervisors have been directed to share with their employees the classification of functions performed by employees and all supporting documentation in the proposed 2004 FAIR Act inventory.

Please refer to questions #'s 36, 51 and 52.

The period of performance for the RSPA HQ competitive sourcing competition support services delivery order is April 8, 2004 to September 30, 2004. Funding for the delivery order is being provided by the Offices of: Pipeline Safety, Hazardous Materials Safety, and Administration.

The phrase "be independent of the ATO, HRA, and the MEO team" means that the SSA cannot be the ATO or the HRA or be a member of the MEO team - in other words, the SSA cannot participate in putting together and making decisions regarding the formulation of the agency's tender, and then make a decision on whether to accept it or not. For that purpose RSPA has established a firewall that will go into effect once the competition is formally announced at www.FedBizOpps.gov. At that time, the ATO, HRA, and MEO team members will act independently, and in private, from the SSA in preparing a proposal for submission to the Contracting Officer. The ATO, HRA, and MEO team members will be fire-walled from the SSA and instructed not to share any information, regarding the proposal they are preparing, with the SSA. In addition, the ATO, CO, CSC, HRA, SSA and MEO team members will be required to sign non disclosure statements.

The RSPA competitive sourcing website went live on March 18, 2004.

The OPM regulations do not specifically reference competitive sourcing. 5 CFR 831.114(c)(2)(v) (CSRS) and 5CFR 842.213(c)(2)(v) (FERS) require that agency requests for early retirement authority contain (among other things) "The total number of non-temporary employees in the agency who will be involuntarily separated or downgraded because of reduction in force or relocation during a major reduction in force, major reorganization, or major transfer of function". This determination cannot be made until decisions regarding the outcome of the competition are made.

Section 663 of PL 104-208, the law granting authority for Voluntary Separation Incentive Payments (buyouts) , requires agencies to submit a strategic plan that indicates:

(A) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level;

(B) the number and amounts of voluntary separation incentive payments to be offered; and

(C) a description of how the agency will operate without the eliminated positions and functions.

Parts A and C of this requirement cannot be determined until a decision is made on the outcome of a competitive sourcing competition.

1. What happened between when the FY 2001 inventory was completed and November 24, 2003?

There weren't any notifications issued that the FY 2001 inventory was complete. Each fiscal year, RSPA's Associate Administrators/Office Directors review the functions being performed in their offices and determine if the activities are Commercial or Inherently Governmental. This "coding" has been performed throughout the Government for many years.

Each year RSPA developed the Inventory in accordance with the version of OMB Circular A-76 that was in effect at the time. The latest revision to OMB Circular A-76 was published on May 29, 2003. The public availability of DOT's FY2002 inventory was announced in the Federal Register on 2/6/03 and FY2001 on 1/3/02.

The DOT FAIR Act Inventory, of which RSPA is a part, is published each year on the DOT web site. The DOT inventories can be viewed at: http://www.dot.gov/ost/m60/fairact/index.html#inventory1

After OMB review and consultation, an agency is required by OMB Circular A-76 dated May 29, 2003, to make its inventory available to Congress and the public. RSPA has complied with that requirement. In addition OMB, as required, published a notice of availability of agencies' inventories in the Federal Register. There is no requirement to directly notify employees.

2. What happened in FY 2002 in the CS process?

RSPA did not conduct any competitions in FY 2002. During FY 2002 all Government departments/agencies developed their annual FAIR Act inventories in accordance with the FAIR Act, OMB Circular A-76, and guidance from OMB. Based on the FY 2002 inventory, RSPA management decided to study, in FY 2003, a number of commercial functions at the Volpe Center.

3. The way the Deputy Administrator's November 24, 2003, email linked to the inventory was deceptive in the way in which it took readers directly to the inventory and not to the top of the link. It should have started the reader at the top of the page that contained critical information under the headings:

• FY 03 FAIR Act Inventory Challenge Period
• List of CY 03 Function Codes
• Reason Codes and Definitions for Commercial
• Activities Inventory
• DOT FAIR Act Inventory - CY00-CY 03 (Final Inventory)
• List of Points of Contact within DOT
• Challenge and Appeal Process
• Address for Challenges
• Address for Appeals
• FAIR Act and Circular A-76 OMB Web Site
• A-76 Resources

There was no mention of this critical information in the November 24, 2003, email as part of the link. Please let us know why this important information was not specifically pointed out or referenced knowing how critical it is. Without an explanation, I'm suspicious there was a desire to say as little as possible to assist the employees you knew were going to be affected by CS.

At the time, it was determined that the easiest navigation to the inventory, was to provide a link directly to the inventory. In addition, the Deputy Administrator's e-mail to all employees stated, in part, "Of the Commercial functions, 88.1 FTE were submitted with reason code B - which means they are suitable for competition. If you have any questions regarding this process, please contact Keith O'Neill at 202.366.4429." Although encouraged to contact Keith O'Neill (RSPA's Competitive Sourcing Coordinator at that time) with any questions, no employees availed themselves of that opportunity.

RSPA made the inventory available to Congress and the public as required by OMB Circular A-76. There is no requirement to directly notify employees.

The Deputy Administrator, in his role as RSPA's Competitive Sourcing Official (CSO), made a management decision that functions performed by employees in formal student programs (what we have traditionally called Co-Op and Stay-in-School program participants) should not be part of a Competitive Sourcing competition. The functions were removed from the competition because including them would be contrary to the Department's goal of developing a pipeline for future permanent DOT employees.

Yes, RSPA is in a financial position to fund buyouts that might be offered and approved as a result of competitive sourcing.

The implementation of the MEO is not affected by the new RSPA reorganization law. PHMSA is required to complete the implementation of the MEO when it succeeds RSPA.

AMS/MEO Staff will complete a time and attendance worksheet and submit to their respective functional lead. The lead will review and submit to AMS/MEO Manager. As the supervisor, the AMS Manager will approve.

The staff currently recruited for AMS/MEO positions should require little to no training outside that needed to address the nuances of working for DOT/PHMSA. Any training required by an AMS employee will be paid for by the office receiving the support of that employee.

The office receiving the support of that AMS/MEO employee.

The AMS/MEO Manager makes the final decision; however, it will be weighted heavily on the input of the Functional Lead.

The AMS/MEO Manager approves leave; however, it will be approved after consideration of workload/mission as described by the Functional Lead.

The salaries of MEO/AMS employees are reflected in the budgets of the offices for which they provide support. The salary of the MEO/AMS Manager is reflected in the budget of PHA.

The routing symbol for the AMS is "PHA-12." The AMS will not have its own budget or accounting string.

Awards are paid from the same allocation as the employee's salary. However, no award would be approved for an MEO employee without the input and concurrence of the office receiving support.