The Federal Activities Inventory Reform (FAIR) Act took the regulatory requirement of OMB Circular A-76 to conduct an annual inventory of commercial activities and made it the law in 1998. Under the provisions of the FAIR Act, each agency must annually provide OMB with a list of the commercial functions performed in that agency that are not inherently governmental. The definitions that led to designations of "commercial" and "inherently governmental" are published by OMB and must be applied in all government agencies. These lists of commercial functions are also made available to the public, after review by and consultation with OMB. The FAIR Act inventory and other information on the Department of the Interior competitive sourcing program may be accessed at: http://www.doi.gov/perfmgt/competitivesourcing/.

How does the FAIR Act relate to A-76?

The FAIR Act provides that each time the head of an executive agency considers contracting with a private sector source for the performance of an activity included on the FAIR Act inventory, the agency must use a competitive process to select the source and must ensure that, when a cost comparison is used or otherwise required for the comparison of costs, all costs are considered and the costs considered are realistic and fair. OMB has directed that in carrying out these requirements, agencies must rely on the guidance contained in OMB Circular A-76 dated May 29, 2003.

Will every function listed in the inventory be competed?

No. The inclusion of a function on the agency's inventory of commercial activities does not mean that the agency is required to compete the function. Rather, the FAIR Act requires that each agency review its inventory of commercial activities. Presumably, this review would include consideration of competition, consolidation, privatization, other reinvention alternatives or maintaining the status quo. Not all commercial activities performed by Federal employees must be performed by the private sector, though all such activities must be inventoried under the provisions of the FAIR Act and OMB Circular A-76. The decision as to which commercial functions represent "core capabilities," and thus should not be competed, remains with each agency head (bureau director or his/her designee).

Are there functions that cannot be contracted?

Yes. These are inherently governmental activities that are so closely related to the public interest that they require performance by Federal government personnel.

How are decisions made concerning which functions are inherently Governmental and which are not?

OMB has issued guidance in the OMB Circular A-76 delineating the criteria to be used in determining whether a function is inherently governmental. DOI used these criteria to develop its own guidelines to assist the bureaus' FAIR Act inventory points of contact in making their determinations regarding inherently governmental functions. Inventories are reviewed by the Departmental Center for Competition, Efficiency, and Analysis to ensure consistent designation of functions across the Department.

Can the inventory be challenged?

Under the FAIR Act, "interested parties" can challenge an agency's judgment about what is included on the inventory within 30 working days after the inventory is published; the inventory is published after review and consultation with OMB. Interested parties include current employees and their representatives and contractors who are actual or prospective bidders to perform the function.

What recourse do affected employees have to challenge the way that their functions have been classified on the FAIR inventory?

Interested parties, including current employees who are actual or prospective bidders for a function, can challenge what is included on the FAIR inventory. Any challenge must be made in writing within 30 working days of the date a notice is published in the Federal Register by OMB that the inventory is available. The Federal Register notice identifies the person to whom challenges should be sent.

OMB Circular A-76

What is Office of Management and Budget (OMB) Circular A-76?

First promulgated in 1955, OMB Circular A-76, Performance of Commercial Activities, is the traditional methodology for comparing the value of performing a function inside government with the value that could be produced by obtaining that service from outside the government. The new OMB Circular A-76 rejected the longstanding general principle that the government should not perform commercial functions. The new emphasis is selection of the best service provider, public or private, as determined through competition. Competition for these services will ensure they are provided to the public, either by government employees or the private sector, or other non-Federal entities such as a university, in the most cost-efficient and effective manner possible. The key concept behind A-76 is that competition enhances economy and productivity.

What is a commercial activity?

Commercial activities are products or services that are obtainable from a commercial source. One convenient, although not technically complete way to think of them is as activities that are listed in the yellow pages. Commercial activities fall into two categories: 1) functions performed in-house by Federal personnel, or 2) contracted activities provided by contractor personnel. OMB defines commercial activity as a recurring service that could be performed by the private sector and is an agency requirement that is funded and controlled through a contract, fee-for-service agreement, or performance by government personnel.

What is an inherently governmental activity?

An inherently governmental activity is a function so intimately related to the public interest that it mandates 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. An inherently governmental activity involves: 1) Binding the United States to take or not to take some action by contract, policy, regulation, authorization, order, or otherwise; 2) 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; 3) Significantly affecting the life, liberty, or property of private persons; or 4) 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 or appropriated and other federal funds.

Has any contractor won an A-76 study by appealing a tentative decision to award the work to the government?

Yes. There have been some decisions by the General Accounting Office's Comptroller General overturning A-76 decisions at other agencies to retain a function in-house. In those cases, the appealing contractor won the study on appeal.

Competitive Sourcing Background Information

What is Competitive Sourcing? Why is it being emphasized?

Competitive Sourcing is the process through which commercial-type activities that are currently performed by governmental agencies are evaluated, re-engineered for efficiency, and where appropriate are offered to the private sector for bidding on a competitive basis in order to ensure that customers, stakeholders, and citizens are provided services at the best possible value. It can be one of the most effective tools for improving the Federal workforce. It is one of the five elements of the President's Management Agenda. Collectively, these five elements are designed to provide better service to the American citizen by improving how government works. Competitive Sourcing can be accomplished using OMB Circular A-76 methodologies. Its purpose is improved service: not downsizing, streamlining, contracting out or cost-cutting.

Does Competitive Sourcing mean DOI does not value its employees?

Our employees are our most valued resource. The Department of the Interior is implementing the Competitive Sourcing process in accordance with the August 2001 President's Management Agenda in order to explore the potential for further improving citizen service and effectiveness. Every effort will be expended to ensure department employees receive fair and equitable treatment during Competitive Sourcing reviews. The President has emphasized the importance of government being accountable and up-to-date. Improvements resulting from competitive sourcing may relieve many current workplace frustrations because of efficiencies we can realize by working smarter.

Why is the Department of the Interior engaging in competitive sourcing?

We are always looking for ways to provide better value to our customers. We are also always looking for ways to work smarter so we can free up cash to reinvest in our mission. The Federal Activities Inventory Reform Act (FAIR) of 1998 requires that Federal agencies annually provide the OMB and the Congress a list of commercial functions they perform that are not considered inherently governmental. In FY 02/03, OMB required all agencies to begin to study their commercial functions. The results of the FY 02/03 studies at Interior yielded annual savings of $2.4 million at a one-time cost of $2.1 million. This has produced new cash for the bureaus to use to restore facilities, fight invasive species, and invest in other priorities. In FY 04, we completed 8 studies including 5 streamlined and 3 standard studies. DOI employees won all 8 studies with a projected annual savings of $3.155M at a one-time cost of $1.498M with the expectation that the annual savings will continue over at least the next 5 years. The Department has submitted a draft plan to OMB for projected studies in FY '05 -'08.

Are there FTE reduction goals or targets for DOI or its bureaus associated with Competitive Sourcing?

No. There are no FTE reduction goals. The focus of competitive sourcing is the efficient and effective delivery of services or products to the customer. Competitive sourcing is a process that implements change. One aspect of an organization that might change is the number of staff needed to deliver the service or product. The scope and nature of the changes required are a result of the process and are not to be guided by any predetermined expectations.

Does competitive sourcing target blue-collar jobs?

No. Competitive sourcing is equally applicable to commercial white collar and blue collar positions.

Which jobs will be studied under Competitive Sourcing?

The functions and positions to be studied are selected by management officials in the bureaus/offices, with subsequent consultation with the Office of the Secretary. Factors to be considered when choosing activities to study for competitive sourcing include: are there unusually large numbers of vacancies projected for this activity due to retirement or attrition, has the activity already been successfully outsourced within the agency or the Federal government, do private sector sources exist to perform the activity, are there chronic organizational performance problems in this functional area, does the agency currently have a skills gap, technology gap or staffing shortage in the activity, and might contracting allow us to avoid having to make a large capital investment in equipment in the functional area.

Are all Bureaus and Offices in the Department of the Interior participating in competitive sourcing?

Yes.

How many positions at Interior will be reviewed through FY 2005?

Interior is reviewing activities involving about 5,900 FTE for possible competitive sourcing through the end of fiscal year 2005. This represents about 17% of the DOI FTE on the FY 04 FAIR Act commercial inventory and about 8% of the total employment at Interior.

Will there be direct conversions in DOI?

Prior to the new OMB Circular A-76 disallowing direct conversions after May 29, 2003, DOI looked at direct conversions, formal A-76 cost comparison studies, and streamlined A-76 studies. As part of the Administration's competitive sourcing requirements, a number of FTEs across the Department were directly converted. Interior took extra steps to protect employee interests beyond what the old circular required for direct conversions. These conversions have not resulted in the separation of fulltime permanent employees. Any direct conversion at DOI required a complete business case analysis, and in the future can only happen in the context of Section 638 contracting in BIA.

Methodologies, Timetables and Responsibilities

What is the A-76 study methodology?

The key concept of A-76 is that competition enhances quality, economy and productivity. OMB Circular A-76 provides procedures to conduct managed competitions between the public and private sectors. Such competitions will determine whether it's better for a function to be performed by the private sector or by an in-house government workforce. In A-76 competitions, agencies and contractors are equal and viable competitors.

The A-76 process provides a level playing field between public and private providers of goods/services, encourages competition and choice in the performance of commercial activities, and helps ensure that sound and justifiable business decisions are made. Competition is important to ensuring financial flexibility and reducing costs. An A-76 study will examine and improve the processes and make them more cost-effective. An A-76 study does not necessarily result in "contracting out" a function. An A-76 study can help us develop a more efficient government operation and demonstrate its effectiveness through competition. A full A-76 cost comparison study generally takes 12 months to complete but may be extended up to 18 months for unusually challenging studies.

How does the A-76 competition process work?

Following the guidelines set forth in OMB Circular A-76, the managed public/private competition process examines the financial impact of continuing to provide certain services in-house or by contract. A team of employees or a consultant (or a combination of employees and consultant support) develops a performance work statement (PWS) and a quality assurance surveillance plan (QASP). A second team, the agency bid team, separately and confidentially, prepares a proposal for undertaking the function described in the PWS, much as a commercial source would do. Specific guidelines are included in the process to cover all costs and performance requirements. The government participates in the competition on an equal basis with the commercial sources. Using this process, the competition winner, whether commercial or governmental, must adhere to and meet the performance parameters contained in the PWS.

The agency bid team is established within an affected function to design and create a management plan that includes a Most Efficient Organization (MEO) to compete against industry. The creation of a management plan also includes developing an in-house cost estimate based on the MEO. The MEO estimates the number and type of government personnel required to perform the tasks cited in the PWS. The MEO/in-house cost estimate will be completed at the same time initial offers are due from private sector firms on the solicitation containing the PWS.

Once initial private sector offers are received, these offers are evaluated and rated like any other service contract solicitation. The government will determine, based on "best value" (performance value relative to cost), the best private sector offer. Once this selection is made, the best private sector offer is compared with the government's in-house cost estimate. A decision is made between the private sector offer and the MEO based predominantly on price (under a Standard Competition the government bid is automatically given a 10 percent advantage in personnel costs). Once this decision is made, conversion process to either the MEO or a private contract must begin.

How does competitive sourcing differ from privatization?

Some think competitive sourcing is synonymous with privatization. This is not correct. Under competitive sourcing there is managed competition between the public and private sector to determine the most cost effective methods of accomplishing a function. Privatization refers to a decision by the government to get out of a given line of business and turn over operations and possibly assets to the private sector, with or without competition. Privatization is the process of changing a government program to private management, control and/or ownership. Under privatization, the government no longer retains responsibility or control over the delivery of the privatized goods or services, depending on the privatization model used.

What is a Performance Work Statement (PWS)?

A PWS is a statement of the technical, functional and performance characteristics of the work to be performed, identifies essential functions to be performed, determines performance factors, including the location of the work, the units of work, the quantity of work units, and the quality and timeliness of the work units. It serves as the scope of work and is the basis for all costs entered on the Cost Comparison Form.

What is a Quality Assurance Surveillance Plan (QASP)?

The QASP is the government's plan to inspect either contract or in-house performance to determine if services meet required quality and quantity standards set forth in the Performance Work Statement (PWS). The plan describes methods of inspection to be used, the reports required, and the resources to be employed, with estimated work hours. A QASP should focus on performance outcomes.

How will the comparative evaluations be conducted?

The Performance Work Statement will define what is being requested, what the performance standards and measures are, and what time frames are required. The procurement will be conducted in accordance with the Federal Acquisition Regulation and OMB Circular A-76. The source selection board (as determined by the contracting officer and the managers in the activity under study) will evaluate all contractor proposals and select the best value, considering technical, cost evaluation and past performance. Then, after all necessary adjustments have been made to ensure that the government's in-house cost estimate and the other offers are based on the same scope of work and performance standards, the contracting officer will open the government's in-house cost estimate and/or provide it to the study team to complete the cost comparison.

Should an activity wait until it has been identified for cost comparison to begin optimizing work processes?

No. Begin immediately. Where an organization can begin to improve performance and service prior to initiating a competitive sourcing study it should do so. Improvements should not be undertaken once a study has been formally announced. Until such time as an activity has been identified for study, employees should work to prioritize tasks and identify those that could be contracted regardless of the competitive sourcing initiative. Improving service and product delivery should be an ongoing activity.

What should an employee do for himself or herself while the study is taking place?

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. Until the study is completed and a decision made, it is impossible to predict the outcome or degree of impact. At Interior, our employees have won about two-thirds of the competitions that took place in FY 2002/2003. Our employees won 100% of the competitions completed during FY 2004. While feelings of uncertainty, stress, and/or anxiety are natural, the organization is committed to providing a supportive atmosphere to help employees be proactive in dealing with these emotions. However, we would encourage an employee not to change jobs with so many unknowns.

How can an employee help safeguard information that may give prospective contractors an unfair advantage?

During the course of the study, employees should only discuss their jobs and the nature of their work with those who have a genuine need to know. While the study is underway, prospective contractors may try to find out about an employee's job through casual conversation with the employee. The employee may not even know that person is associated with a contractor. In short, employees should know who they are talking to and why. All persons with any knowledge of the functions under study are obligated to safeguard that information.

Personnel Issues

How and when will employees know that the work performed by their position is eligible for competitive sourcing?

As soon as any legally required union consultation has occurred, their bureaus will notify affected employees. Affected employees will be kept apprised of the status of the competitive sourcing initiative at every major milestone of the process or at least every 30 days.

How and when can unions participate in the competitive sourcing process?

The Department and individual Bureaus, as appropriate, will consult with national unions and local bargaining units prior to announcing any competitive sourcing studies. Unless otherwise provided for in existing bargaining unit agreements, unions will be limited to participating in the development of the PWS.

Will employees have any input into the review and cost comparison process?

There is opportunity for employees to participate in teams and workgroups that are involved in the process. It is the supervisor's responsibility to make assignments and determine how best to accomplish the work. Participation on the PWS, Management Plan and source selection teams needs to be carefully managed to minimize certain functional conflicts of interest and to protect the employees' rights of first refusal.

Where a formal Competitive Sourcing cost comparison is initiated, DOI will follow OMB Circular A-76. In addition, upon issuance, a solicitation used in the conduct of a cost comparison will be made available to directly affected Federal employees or their representatives for comment. The employees or their representatives will be given sufficient time to review the document and submit comments before final receipt of offers from the private sector. Private sector offerors shall also comment as provided by the Federal Acquisition Regulation (FAR).

Can employees bid on their own work? If employees can form groups and bid on their own work, don't they have the advantage over a contractor bidding on the same work? Is this fair?

The A-76 process allows employees to bid on their own work through the process of designing a Most Efficient Organization (MEO) and formulating a government cost estimate. The Department strongly supports MEOs as being good for employees and good for the taxpayer. The procedures in OMB Circular A-76 are designed with safeguards to ensure fairness to all affected parties. There is also the possibility that employees may wish to form their own company and bid on the work. If that is the case, certain government ethics limitations and Federal Acquisition Regulation (FAR) restrictions would apply and would need to be addressed. Contact the Competitive Sourcing Center, 202-219-0727, for more information on bidding or the Departmental Office of Ethics, 202-208-5916 for more information on ethics limits.

Can employees appeal the outcome of a cost comparison decision that results in the work of their positions being contracted out?

Yes. In standard competitions, a directly interested party which has been determined by case law to be the Agency Tender Official may contest any of the following actions taken in connection with a standard competition: (1) a solicitation; (2) the cancellation of a solicitation; (3) a determination to exclude a tender or offer from a standard competition; (4) a performance decision, including, but not limited to, compliance with the costing provisions of this circular and other elements in an agency's evaluation of offers and tenders; or (5) a termination or cancellation of a contract or letter of obligation if the challenge contains an allegation that the termination or cancellation is based in whole or in part on improprieties concerning the performance decision. The pursuit of a contest by a directly interested party and the resolution of such contest by the agency shall be governed by the procedures of FAR Subpart 33.103. No party may contest any aspect of a streamlined competition.

What happens to DOI employees if the function is awarded to the in-house DOI organization (the Most Efficient Organization)?

If the Most Efficient Organization is awarded the contract, DOI will work hard to help any affected employees.

Given the expected changing nature of the workforce in the coming years, it is the Department's goal to either avoid or minimize the need for Reductions in Force (RIFs). It is worth noting that of the nearly 3,000 positions studied to date under competitive sourcing or preliminary planning, only one fulltime permanent employee has been involuntarily separated from the Department. We have the ability to get early out and buyout authority, as well. If, as a last resort, RIF is necessary, affected employees have many rights and benefits of which DOI will make maximum use. Affected employees would be provided numerous career transition services and get placement consideration for positions elsewhere inside the bureau, in other DOI bureaus, and other Federal agencies. Where possible, we will also train affected employees for other DOI occupational areas. Employees should understand that there is no guarantee that these options will be available in all instances, or in a timely manner. If separated from the Federal service, employees will continue to receive placement assistance for one to two years and also be eligible for severance pay and unemployment compensation. Numerous benefits are also provided through the State employment services.

What happens to the DOI employees at the end of an A-76 study if the function is awarded to a private sector contractor?

In addition to the benefits available to employees who are affected if the contract is awarded to the MEO, employees whose functions undergo full A-76 studies and subsequently are converted to a private sector contractor are eligible for Right of First Refusal (ROFR). Federal acquisition regulations provide for the Right of First Refusal (ROFR), which requires that for full A-76 studies, the successful contractor offer affected Federal employees first consideration for open positions available under the contract for which they qualify. A standard clause indicating this is included in cost comparison solicitations. For streamlined competitions awarded to the private sector, contracting officers can negotiate that ROFR be included in the contract. As previously stated, to date only one fulltime permanent employee has been involuntarily separated from the Department as a result of competitive sourcing. We also have authority to offer early outs and buyouts to affected employees.

Is a contractor obligated to offer the same compensation and benefits package as DOI?

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. There have been actual experiences where seasonal DOI employees have gone to work for successful contractors and been given fulltime jobs with benefits.

What types of programs are available to assist federal employees who are separated or face separation by reduction in force?

The Department of the Interior (DOI) Career Transition Assistance Plan (CTAP) provides career transition and placement services for DOI employees who have been, or are faced with, separation by RIF:

Career Transition Training and Support Services: The Department of the Interior University (DOIU) will provide career transition services to surplus and displaced employees affected by RIF to help give them the skills and resources necessary to find other employment. Types of services offered may include skills assessment, resume preparation, counseling, job search assistance, etc. Eligible displaced employees can use the career transition services for up to one year following the separation. For further information contact the Director, DOIU Learning and Performance Centers, at (202) 208-5616.

Special Selection Priority (SSP): The SSP gives selection priority to well-qualified DOI employees who receive an official surplus or RIF notice and apply for DOI vacancies that are in the local commuting area and are at the same grade from which the employees are being separated (or have the same full performance level). This SSP is available to eligible employees while they are still on DOI rolls. Eligible employees must be selected before other candidates within or outside of DOI may be selected.

Reemployment Priority List (RPL): The RPL provides placement assistance for DOI positions in the local commuting area to employees who receive an official surplus or RIF notice and register for the program. RPL priority placement consideration is given for up to 2 years after separation. Eligible employees must be selected before other candidates outside of DOI may be selected.

Interagency Career Transition Assistance Plan (ICTAP): The ICTAP gives selection priority to well-qualified DOI employees who have received a specific RIF notice and apply for other Federal agency vacancies that are in the local commuting area and are at the same grade from which the employee is being separated (or have the same full performance level). ICTAP selection priority is available to eligible employees for up to 1 year after separation. Eligible employees must be selected before other candidates outside of the other Federal agency may be selected.

For more information regarding career transition services and programs, please see the OPM Employee's Guide to Career Transition. A copy may be obtained online at http://www.opm.gov/rif/general.htm.

When is an employee whose job has been abolished eligible for discontinued service retirement?

An employee is eligible for discontinued service retirement under both CSRS and FERS only if the employee is reached for 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 Federal Employees Retirement System (FERS), there is no annuity reduction for employees who retire on a discontinued service annuity under the age of 55.

What is RIF (reduction in force)? How does it apply to competitive sourcing?

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. For more information, see the OPM Employee's Guide to RIF. A copy may be obtained online at http://www.opm.gov/rif/general.htm.

What if an employee is not separated through RIF but instead experiences a change to lower grade as a result of RIF procedures. Do grade and pay retention provisions apply?

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 the MEO, and that employee is placed in a lower graded position through RIF procedures, then grade retention would apply as long as the employee had served the previous 52 consecutive weeks (or more) at a grade level higher than the grade to which the employee was demoted.

How long does grade retention last and how does it work?

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 increases at the retained grade level.

What is pay retention and how long does it last?

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. Example: If an employee whose job was converted to a private sector contractor or the 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 in the position prior to the RIF that is higher than the maximum rate of the lower graded position.

Unless terminated under the conditions spelled out in Title 5, Code of Federal Regulations (CFR) 536.209, pay retention continues until the maximum rate for the grade the employee is occupying equals or exceeds the employee's retained pay rate. Under pay retention, an employee only receives 50 percent of the annual pay adjustment. Thus, each year the gap between the employee's retained pay rate and the rate of pay for the position occupied gets smaller.

How are Federal benefits affected in a RIF situation?

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.

Do severance pay and unemployment compensation apply in RIF?

Yes. If an employee is separated under a RIF, is not eligible to retire, and is not drawing military retirement, that employee is entitled to severance pay and unemployment compensation. The employee's Servicing Personnel Office can provide him or her with estimates of what the severance pay will be. Employees can also estimate the amount of their severance pay using the OPM Employee's Guide to Benefits for those affected by RIF. Servicing Personnel Offices can also provide for information about unemployment benefits.

Does an employee have rights under the EEO process to file for alleged discrimination (age, race, etc.) when and if their position is (1) identified as commercial in the inventory phase or (2) outsourced at the end of a competitive sourcing study?

Any employee who believes that he/she has been subjected to discrimination on the basis of race, color, sex, national origin, religion, disability, or age, can file an EEO complaint on any employment matter. Therefore, this matter would be covered. Whether or not the conversion, etc., was discriminatory is a different issue. What is questionable is whether an employee can file a complaint concerning a conversion because of alleged discrimination based on sexual orientation. This is different from the other basis because the other basis (race, etc., is a matter of law), the sexual orientation is an internal administrative process.

Under existing rules, is there an appeal process for studies of 10 and Fewer FTE?

Under the revised OMB Circular A-76, studies of 10 and fewer FTE are considered streamlined studies. There is no provision on the part of any party to contest any aspects of a streamlined study.