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Contracting Out

A-76 Scope and Process  |  Arrangements/Adverse Impact
Compliance with Office and Management and Budget Circular A-76 and Agency Regulations
Notification/Information  |  Stays/Grievances  |  Miscellaneous


A-76 Scope and Process

  1. Prohibiting the contracting out of normal services that are deemed “mission/emergency essential” by the employer. NFFE, Local 1167, 6 FLRA 574, Proposal 4 [NN]
  2. Preventing management from contracting out work when it can be shown that the work can more economically and efficiently be performed in–house. NFFE, Local 1167, 6 FLRA 574, Proposal 1 [NN]
  3. Defining the scope of the agency’s contracting out circular and requiring the preparation, maintenance and review of agency contracting out records. AFGE, AFL–CIO, Local 3403, 6 FLRA 669, Proposals 1 and 2 [NN]
  4. Preventing management from contracting out work when it can be shown that the work can more economically and efficiently be performed in–house. IAM, Local 2424, 8 FLRA 679, Proposals 3 and 4 [NN]
  5. Restricting how a cost study, used in determining whether to contract out, could be conducted. On remand, AFGE, AFL–CIO, Local 2736, 14 FLRA 302, Proposals 1 and 2 [NN]
  6. Giving the union a seat on a steering committee established to determine the feasibility of contracting out agency functions. Federal Union of Scientists and Engineers, NAGE, Local R1–144, 14 FLRA 709 [NN]
  7. Agency will insure that any cost study for contracting out will reflect the most efficient in–house operation and will be based on the same scope of work as the contract proposal. AFGE, Local 225, AFL–CIO, 17 FLRA 417, Proposal 1 [NN]
  8. Wage determination area will coincide with the wage grade pay survey area if wage grade employees are involved. AFGE, Local 225, AFL–CIO, 17 FLRA 417, Proposal 2 [NN]
  9. Agency, among other things, to include all costs involved with contract and in-house performance when it prepares cost studies for comparison to determine which will provide lowest performance cost. AFGE, Local 225, AFL–CIO, 17 FLRA 417, Proposal 3 [NN]
  10. In a cost comparison analysis for contracting out, the fringe benefit factors must be fair and reasonable and derived from the agency’s actual local fringe benefit factors at the time of the cost study. AFGE, AFL–CIO, Local 1622, 17 FLRA 429 [NN]
  11. Prescribing specifically the standards to be used in making various calculations for a cost comparison analysis to be used in deciding whether to contract out. AFGE, AFL–CIO, Local 1923, 17 FLRA 661 [NN]
  12. Agency to freeze and suspend all consulting and contracting–out. AFGE, AFL–CIO, Local 12, 18 FLRA 418, Proposal 6 [NN]
  13. Prohibiting the agency from requiring unit employees to accept supervision from persons who are not officers or employees of the Government. Defense Logistics Agency Council of AFGE Locals, AFL–CIO, 24 FLRA 367, Provision 4 [NN]
  14. Cost–benefit analysis in certain newly established organizations that are identified for contracting–out, with the results being given to the union before impact bargaining and before the contract is signed. AFSCME, Local 3097, 24 FLRA 453, Proposal 2 [NN]
  15. Precluding the agency from contracting out solely to meet personnel ceiling or to avoid salary limitations. AFGE, AFL–CIO, Local 2052, 31 FLRA 529, Proposal 2 [NN]
  16. Establishing the conditions under which the agency will contract with the union for the services of instructors in the Agency Revenue officer training program. NTEU, 32 FLRA 544, Proposals 2–5 [NN]
  17. Prohibiting bargaining unit employees from being placed under the supervision of contract employees. NTEU, Chapter 213 and 228, 32 FLRA 578, Provision 5 [NN]
  18. Prohibiting the use of personal service contracts to establish an employer–employee relationship between Government employees and contractor personnel. AFGE, Local 2298, 35 FLRA 1128, Proposal 5 [N]
  19. Prohibiting the agency from placing employees under the supervision of non–Federal employees. NFFE, Local 405, 42 FLRA 1112, Proposal 7 [NN]
  20. Requiring the agency to notify the union of:  (1) agency solicitations of contracting-out bids under the Office of Management and Budget Circular A–76, and (2) bid opening times and locations so that a union official may attend. AFGE, AFL–CIO, Department of Education Council of AFGE Locals, 42 FLRA 1351, Proposal 2 [N]
  21. When feasible, the agency will contract out only when it would be economically efficient, effective to the agency’s mission, or in the best interest of the Government. NFFE, Local 1214, 45 FLRA 1222 [NN]
  22. Obligating the agency to conduct specific cost studies in addition to those required by Office of Management and Budget Circular A–76 before deciding to contract out. AFGE, Local 1345, 48 FLRA 168, Proposal 16 [NN, (a)(2)(B)]
  23. Preventing the agency from assigning unit employees to be supervised by non–Federal personnel. AFGE, Local 1345, 48 FLRA 168, Proposal 18 [NN, (a)(2)(B)]
  24. Preventing the agency from contracting out certain functions. NFFE, Local 1655, 49 FLRA 874, Provision 10 [NN, (a)(2)(B)]
  25. Preventing the agency from contracting out certain functions. IFPTE, Local 3, 51 FLRA 451, Proposal 2 [NN, (a)(2)(B)]
  26. Prohibiting Native Joint Venture Corporation (NJVC) employees from being assigned to serve on any of the committees identified in the proposal if the committee considers matters concerning any unit employee who occupies a position that the agency has targeted to contract out. AFGE, Local 1827, 58 FLRA 344, Proposal 5-2a [NN, (a)(2)(b)]
  27. Applying to work that is assigned to workgroups consisting of both contractor and federal employees. AFGE, Local 1827, 58 FLRA 344, Proposal 7-3 [NN, (a)(2)(b)]

Arrangements/Adverse Impact

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  1. Management, when it decides to contract out work, to minimize adverse impact by “considering” attrition patterns and restrictions on new hires. NFFE, Local 1167, 6 FLRA 574, Proposal 4 [N]
  2. Requiring a statement concerning arrangements to minimize impact on employees such as reassignment, retraining career employees and restricting new hires in the notice to the union of proposals to contract out. IAM, Local 2424, 8 FLRA 679, Proposal 3 [NN]
  3. Calling a meeting to discuss, among other topics, how to minimize any effects on employees of reassignment or restriction of contractual labor. IAM, Local 2424, 8 FLRA 679, Proposal 5 [N]
  4. Management to take all possible actions to minimize the impact on employees when a function is contracted out by reassigning affected employees to the extent possible and by providing for maximum retention of career employees through considering attrition patterns and restricting new hires. IAM, Local 2424, 8 FLRA 679, Proposal 6 [N]
  5. Management to negotiate the effect of certain contracting out decisions and to eliminate or minimize any potential adverse effect through reassignment or training and to take whatever other action may be necessary to protect bargaining unit employees. AFGE, AFL–CIO, National Council of EEOC Locals, 10 FLRA 3, Proposal 3 [NN]
  6. Management will make every reasonable effort to retain affected unit employees when contracting out. AFGE, AFL–CIO, Local 1808, 30 FLRA 1236, Provision 7 [NN]
  7. Requiring the agency not to separate employees until completion of negotiations over contracting–out. NFFE, Local 405, 42 FLRA 1112, Proposal 4 [N]
  8. Obligating the agency to include in contracts awarded to private entities a provision affording displaced Government employees a right of first refusal according to their seniority for positions with contractors. AFGE, Local 1345, 48 FLRA 168, Proposal 19 [NN, GWR]
  9. Requiring the agency to use both Voluntary Early Retirement Authority and Voluntary Separation Incentive Program to reduce the number of employees who are occupying positions the agency has determined will be contracted out. AFGE, Local 1827, 58 FLRA 344, Proposal 1–1 [N,(b)(3)]
  10. Requiring the agency to provide Voluntary Separation Incentive Program opportunities to applicants based on seniority, where there are more Voluntary Separation Incentive Program applicants than number of Voluntary Separation Incentive Program opportunities being offered. AFGE, Local 1827, 58 FLRA 344, Proposal 1–4 [N,(b)(3)]
  11. Requiring the agency to include in its contract with Native Joint Venture Corporation (NNC) a provision requiring NNC to have a written Equal Employment Opportunity (BEO) policy covering NJVC employees, which complies with Federal EEO requirements and includes a procedure for keeping records concerning the information identified in the proposal. AFGE, Local 1827, 58 FLRA 344, Proposal 2–1 [NN, LAW]
  12. Requiring the agency to include in its contract with Native Joint Venture Corporation (NNC) a provision providing that unit employees, who occupy a position targeted for contracting out, will have the right-of-first-refusal for NNC positions that require substantially the same skills as the positions those employees encumber and for which there is more than one applicant. AFGE, Local 1827, 58 FLRA 344, Proposal 4–1 [N]

Compliance with Office and Management and Budget

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  1. Reiterating the restrictions contained in Office of Management and Budget Circular No. A–76 which prescribes general policies for contracting out. NFFE, Local 1167, 6 FLRA 574, Proposal 2 [NN]
  2. Management to comply with Office of Management and Budget Circular A–76 and other applicable laws and regulations concerning contracting out. AFGE, AFL–CIO, National Council of EEOC Locals, 10 FLRA 3, Proposal 1 [N]
  3. Agency to correct data in the in-house cost estimate when the union demonstrates it is not prepared in accordance with the existing directives. NFFE, Local 1263, 14 FLRA 761, Provision 2 [N]. Reversed in Defense Language Institute v. Federal Labor Relations Authority, 767 F.2d 1398 (9th Cir. 1985).
  4. Agency to make contracting out determinations in conformity with whatever applicable law or regulations exist at the time of action. AFGE, AFL–CIO, Local 1858, 15 FLRA 273 [N]
  5. Agency to make contracting out decisions in accordance with A–76. AFGE, AFL–CIO, Local 1923, 22 FLRA 1071 [N]. Reversed in Health and Human Services v. Federal Labor Relations Authority, 844 F.2d 1087 (4th Cir. 1988).
  6. Agency to comply with A–76 and other applicable laws and regulations or cooperative agreements. AFGE, AFL–CIO, Local 3748, 23 FLRA 160, Proposal 2 [NN]
  7. No bargaining unit employees will be under the supervision of a non–Federal employee in event unit work is contracted out. AFGE, AFL–CIO, Local 1808, 30 FLRA 1236, Provision 8 [NN]
  8. Management to comply with Office of Management and Budget Circular No. A–76 and other laws and regulations in conducting a library study and in making contracting–out decisions. AFSCME, Local 3097, 31 FLRA 322, Proposal 1 [N]. Reversed and remanded in Justice v. Federal Labor Relations Authority, No. 88–322 (D.C. Cir. 1990). On remand, AFSCME, Local 3097, 42 FLRA 587 [N]. Reversed in Justice v. Federal Labor Relations Authority, 996 F.2d 1246 (D.C. Cir. 1993).
  9. Agency to comply with Office of Management and Budget Circular A–76, other applicable law and regulations, and provisions of the collective bargaining relating to contract out of work. AFGE, AFL–CIO, Local 2052, 31 FLRA 529, Proposal 1 [N]. Reversed in Bureau of Prisons v. Federal Labor Relations Authority, No. 88-3997 (4th Cir. 1988).
  10. Agency to adhere to Office of Management and Budget Circular No. A–76 and other applicable laws and regulations concerning contracting out. NTEU, 32 FLRA 975 [N]. Reversed and remanded in Public Debt v. Federal Labor Relations Authority, No. 88–1753 (D.C. Cir. 1990). On remand, NTEU, 42 FLRA 1333 [N]. Reversed in Treasury, Public Debt v. Federal Labor Relations Authority, No. 91–1463 (D.C. Cir. 1993).
  11. Agency to comply with Office of Management and Budget Circular No. A–76 when it makes determinations concerning contracting out. AFGE, AFL–CIO, Local 1931, 32 FLRA 1023, Provision 27 [N]. Reversed in Concord Naval Weapons Station v. Federal Labor Relations Authority, No. 88-7408 (9th Cir. 1989)
  12. Requiring the agency to comply with the Office of Management and Budget Circular A–76 and other laws and regulations concerning contracting out. NTEU, 47 FLRA 304 [N]. Reversed in Treasury, Public Debt v. Federal Labor Relations Authority, 996 F.2d 1246 (D.C. Cir. 1993).
  13. Requiring compliance with the prohibition in Office of Management and Budget Circular A–76 against contracting out solely to meet personnel ceilings or avoid salary limitations. AFGE, Local 1345, 48 FLRA 168, Proposal 17 [NN, GWR]

Notification/Information

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  1. Union access to milestone charts and pre-bid and bid–opening conferences. NFFE, Local 1167, 6 FLRA 574, Proposals 1 and 3 [NN]
  2. Milestones charts related to review or feasibility studies for contracting out of work will be made available to the union. IAM, Local 2424, 8 FLRA 679, Proposal 3 [NN]
  3. Notify the union of its intention to solicit bids for contract work which could result in a RIF or transfer or abolition of function affecting employees in the unit, with a full explanation of the reasons for such actions and give the union sufficient opportunity to respond in writing. AFGE, AFL–CIO, National Council of EEOC Locals, 10 FLRA 3, Proposal 2 [N]
  4. Notify the union of contracting out pre-bid and bid–opening conferences and allowing the union to attend those conferences. NFFE, Local 1263, 14 FLRA 761, Provision 1 [N]
  5. Notify the union that it has been directed to study the feasibility for contracting out before it effects a conversion to a commercial activity. AFGE, Local 1546, 19 FLRA 1016, Provision 2 [NN]
  6. Disclosure to the union of contracting out feasibility studies i.e., raw data and observations upon which management develops its internal management recommendations. AFGE, AFL–CIO, Local 1808, 30 FLRA 1236, Provision 6 [N]
  7. Provide the union with information obtained from surveys of its library work force and the library’s users. AFSCME, Local 3097, 31 FLRA 322, Proposal 4 [N]
  8. Obligating the agency to require that the information set forth in the proposal be in writing when that information derives from a contract employee and concerns a bargaining unit employee. AFGE, Local 1827, 58 FLRA 344, Proposal 6–2a [NN, (a)(2)(a)]

Stays/Grievances

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  1. Subjecting management’s contracting out determinations to challenge under the negotiated grievance procedure. AFGE, AFL–CIO, Local 3403, 6 FLRA 669 [NN]
  2. Delaying contract awards until all grievance procedures are exhausted if there is a dispute over agreement provisions concerning impact and implementation of the contracting–out decisions. On remand, AFGE, AFL–CIO, Local 2736, 14 FLRA 302, Proposal 3 [N]
  3. Subjecting the actual decision to contract out to the negotiated grievance procedure. AFGE, Local 225, AFL–CIO, 17 FLRA 417, Proposal 4 [NN]
  4. Delaying an agency’s implementation of certain contracting–out actions for one year following the abolition or downgrading of related agency job functions. AFGE, Local No. 12, 25 FLRA 987, Proposal 4 [N]
  5. Allowing the union to grieve matters arising from agency decisions to contract out. NTEU, 27 FLRA 976, Proposal 1 [N]. Reversed in Internal Revenue Service v. Federal Labor Relations Authority, 110 S. Ct. 1623 (1990).
  6. Agency to forestall the awarding of any contract until the exhaustion of all grievances concerning the impact and implementation of the decision to contract out. NTEU, 27 FLRA 976, Proposal 2 [N].
  7. Failure to abide by these provisions of Office of Management and Budget A–76 will be grounds for an appeal of a decision to contract out. AFGE, AFL–CIO, Local 2052, 31 FLRA 529, Proposal 1 [NN]
  8. The parties’ negotiated grievance procedure was the internal appeals procedure specified by Office of Management and Budget Circular A–76 to cover contracting out disputes. On remand, NTEU, 42 FLRA 377 [N]. Reversed in Internal Revenue Service v. Federal Labor Relations Authority, 996 F.2d 1246 (D.C. Cir. 1993).
  9. Requiring the agency to delay action to implement a contracting–out decision until a final agency decision has been reached on an appeal. NFFE, Local 405, 42 FLRA 1112, Proposal 4 [N]
  10. Requiring the agency to delay awarding a contract until grievance procedures, including arbitration, are exhausted. AFGE, Local 2077, 43 FLRA 344, Proposal 2 [NN]
  11. Requiring the agency to include in its contact with Native Joint Venture Corporation (NNC) a provision prohibiting NNC from requiring NNC employees to waive or modify the right to seek redress for alleged EEO or OWCP violations as a prerequisite to being hired or as a condition of employment. AFGE, Local 1827, 58 FLRA 344 [NN, LAW]

Miscellaneous

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  1. Defining the term “familiar” as used in the “Procurement Integrity Certification for Procurement Officials.” NFFE, Local 29, 45 FLRA 603, Proposal 8 [N]
  2. The union’s proposed “Procurement Integrity Certification for Procurement Official” form is inconsistent with 41 U.S.C. § 423(1)(2). NFFE, Local 29, 45 FLRA 603, Proposal 9 [NN]

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