1. Reviewing and Approving Compensation Increase Plans

Management System: Management and Operating (M&O) Contracting

Subject Area: Contractor Human Resource Management

Procedure 1. Reviewing and Approving Compensation Increase Plans

Subject Matter Expert:	MARGARET TRIASSI
Management System Owner:	JOHN LABARGE
Secondary Management System Owner:	DENNIS WILSON

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Issue Date: 09/18/2012
SCMS Revision: 3.2

1.0 Applicability

This procedure applies to Office of Science (SC) Headquarters (HQ) Office of Laboratory Policy and Evaluation (SC‑32), SC Integrated Support Center (ISC), and SC Site Office employees who are involved in the administration of SC contracts and the approval of contractually‑required Compensation Increase Plans (CIPs).

2.0 Required Procedure

Step 1	The appropriate SC ISC manager assigns an employee(s) as a Contractor Human Resource Management (CHRM) Subject Matter Expert (SME). The SC Site Office Manager assigns SC Site Office Staff Members as CHRM Points of Contact (POCs).
Step 2	During the salary freeze announced by the Secretary of Energy on December 17, 2010 (See Email from the Secretary of Energy, titled "Announcement Regarding Site and Facility Management Contractor Employees," dated December 17, 2010), the SC Site Office CHRM POC will provide guidance and requirement documents (Memorandum from the Procurement Executive for Heads of Contracting Activity and Procurement Directors, titled “Freeze on Management and Operating and Other Major Site and Facility Management Contractor Salaries,” dated December 17, 2010; and SC’s “Guidance on Freeze”) to the contractor to ensure compliance with temporary changes to CIP submittal requirements.
Step 3	Upon receipt of a contractually‑required CIP proposal from the contractor, the SC Site Office CHRM POC requests that the SC ISC CHRM SME review it and provide a recommendation.
Step 4	The SC ISC CHRM SME analyzes contractor’s CIP proposal for required elements and requests the submission of any missing elements. NOTE: See Chapter IV, "Compensation," of the U.S. Department of Energy Order on Contractor Human Resource Management Programs (see Section 3.0, "References"), for required elements, the October 24, 2011, policy memorandum from Ingrid Kolb, “Change in Contractor Salary Approval/Reporting Requirements”, and/or site-specific procedures or guidance for those contracts with an approved compensation system. During the salary freeze announced by the Secretary of Energy on December 17, 2010 (see Email from the Secretary of Energy, titled "Announcement Regarding Site and Facility Management Contractor Employees," dated December 17, 2010), refer to CIP guidance and requirements in the documents identified in Step 2 above.
Step 5	The SC ISC CHRM SME evaluates the elements of the contractor's CIP proposal and validates data (e.g., sample benchmarks, review formulas, and calculations), as necessary, to establish reasonableness. The SC ISC CHRM SME interacts with the contractor as necessary to obtain clarification and additional information or data.
Step 6	The SC ISC CHRM SME determines compliance with annual guidance letter issued by Director, DOE HQ Office of Resource Management (MA-63). For an example, see the SC Annual Compensation Guidance Letter (Example).
Step 7	The SC ISC CHRM SME discusses results of initial analysis with the SC Site Office CHRM POC and solicits input on factors, such as funding and additional considerations.
Step 8	The SC ISC CHRM SME makes a recommendation to the Contracting Officer (CO) and SC Site Office Manager.
Step 9	The CO obtains the necessary concurrences (e.g., SC Site Office Manager) on the CO determination and then issues the direction to the contractor on CIP decision.
Step 10	The CO sends a copy of the approved CIP to SC‑32 for information.

3.0 References

DOE O 350.1, Change 3, Contractor Human Resource Management Programs, Chapter IV, "Compensation"
DOE Acquisition Guide, Chapter 70.5, "Contractor Compensation – Variable Pay"
Email from the Secretary of Energy, titled "Announcement Regarding Site and Facility Management Contractor Employees," dated 12/17/2010
Memorandum from the Procurement Executive for Heads of Contracting Activity and Procurement Directors, titled “Freeze on Management and Operating and Other Major Site and Facility Management Contractor Salaries,” dated 12/17/2010
Memorandum from Ingrid Kolb, Director, Office of Management, to Under Secretaries, titled "Change in Contractor Salary Approval/Reporting Requirements," dated 10/24/2011
SC Annual Compensation Guidance Letter (Example)
SC's “Guidance on Freeze”

This is not the online OFFICIAL SCMS COPY of this file. Before using this printed copy, verify that it is the most current version by checking the Last Major Revision and Last Minor Revision dates (at the bottom of each document) on the SCMS Web site.

This is the online OFFICIAL SCMS COPY of this file. Before using a printed copy, verify that it is the most current version by checking the Last Major Revision and Last Minor Revision dates (at the bottom of each document) on the SCMS Web site.

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Last Major SCMS Revision: 02/02/2012