[Federal Register: November 2, 1998 (Volume 63, Number 211)] [Proposed Rules] [Page 58659-58660] ----------------------------------------------------------------------- OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 532 RIN 3206-AI48 Prevailing Rate Systems; Lead Agency Responsibility AGENCY: Office of Personnel Management. ACTION: Proposed rule with request for comments. ----------------------------------------------------------------------- SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed rule that would change the lead agency responsibility for certain Federal Wage System (FWS) appropriated fund wage areas from the Department of Veterans Affairs (VA) to the Department of Defense (DOD). A lead agency under the FWS is the Federal agency designated by OPM to conduct local wage surveys and establish wage schedules for FWS employees according to local prevailing rates within a wage area. There are currently 133 FWS appropriated fund wage areas. DOD is currently the lead agency in 110 wage areas, and VA is the lead agency in 23 wage areas. VA has requested that OPM designate DOD as the lead agency in all of the wage areas where VA currently has lead agency responsibility. This change would make DOD the lead agency in all FWS wage areas and is proposed because it would make more efficient use of the resources devoted by agencies to determining FWS pay rates. DATES: Comments must be received on or before December 2, 1998. ADDRESSES: Send or deliver comments to Donald J. Winstead, Assistant Director for Compensation Administration, Workforce Compensation and Performance Service, Office of Personnel Management, Room 7H31, 1900 E Street NW., Washington, DC 20415, or FAX: (202) 606-4264. FOR FURTHER INFORMATION CONTACT: Mark A. Allen at (202) 606-2848, or email: maallen@opm.gov. SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 5343(a)(2), the Office of Personnel Management (OPM) is responsible for designating lead agencies in Federal Wage System (FWS) wage areas. Lead agencies are responsible for conducting surveys of private sector employers to establish wage schedules for FWS employees based on local prevailing rates. The Department of Defense (DOD) is the lead agency in 110 FWS wage areas, and the Department of Veterans Affairs (VA) is the lead agency in 23 FWS wage areas. VA is currently the lead agency in the New Haven- Hartford, Connecticut; Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-Urbana, Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des Moines, Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern Michigan; Minneapolis-St. Paul, Minnesota; New York, New York; Rochester, New York; Asheville, North Carolina; Charlotte, North Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon; Pittsburg, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, FWS wage areas. VA has requested that OPM designate DOD as the lead agency in the wage areas where VA is currently designated as the lead agency. Since the establishment of the FWS in 1972, VA has played a key role in the administration of the pay program for FWS employees. However, for the past few years, VA has experienced reductions in overall employment in the human resources management areas both in field and headquarters activities. At the headquarters level, two out of three experienced specialists assigned to oversee FWS wage surveys are no longer available to work in that area because of retirements and reassignments. VA believes that a consolidation of the FWS survey function within one agency would be more efficient and would provide a consistency in the survey process that would strengthen the FWS program nationwide. DOD has expressed its willingness and indicated its ability to assume lead agency responsibility in the wage areas where VA is currently assigned lead agency responsibility. This proposed change was reviewed by the Federal Prevailing Rate Advisory Committee (FPRAC), the national labor-management committee responsible for advising OPM on matters that affect the pay of FWS employees. The Committee recommended approval of the change by majority vote. The management members of FPRAC proposed this change because diminishing staff resources within VA headquarters have made it very difficult for VA to accomplish its wage survey work in an effective manner, and DOD has expressed its ability and willingness to assume lead agency responsibility in all FWS wage areas. All Committee members voted for the proposal except for the National Federation of Federal Employees, which abstained. The remaining labor members of FPRAC supported the proposed change with reservations, stating that although no reasonable alternative exists, they are concerned about the placement of Governmentwide FWS wage determinations within a single agency. Regulatory Flexibility Act I certify that these regulations would not have a significant economic impact on a substantial number of small entities because they would affect only Federal agencies and employees. List of Subjects in 5 CFR Part 532 Administrative practice and procedure, Freedom of information, Government employees, Reporting and recordkeeping requirements, Wages. Office of Personnel Management. Janice R. Lachance, Director. Accordingly, the Office of Personnel Management is proposing to amend 5 CFR part 532 as follows: PART 532--PREVAILING RATE SYSTEMS 1. The authority citation for part 532 continues to read as follows: Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5 U.S.C. 552. 2. Appendix A to subpart B is amended for the New Haven-Hartford, Connecticut; Miami, Florida; Tampa-St. Petersburg, Florida; Champaign- Urbana, Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des Moines, Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern Michigan; Minneapolis-St. Paul, Minnesota; New York, New York; Rochester, New York; Asheville, North Carolina; Charlotte, North [[Page 58660]] Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon; Pittsburg, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, wage areas by revising the lead agency listings for those areas from ``VA'' to ``DOD''. [FR Doc. 98-29190 Filed 10-30-98; 8:45 am] BILLING CODE 6325-01-P