[Federal Register Volume 62, Number 37 (Tuesday, February 25, 1997)]
[Notices]
[Page 8463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4511]
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OFFICE OF MANAGEMENT AND BUDGET
Issuance of Transmittal Memorandum No. 17, Amending OMB Circular
No. A-76, ``Performance of Commercial Activities''
AGENCY: Office of Management and Budget.
SUMMARY: This notice contains Transmittal Memorandum No. 17, to OMB
Circular No. A-76, ``Performance of Commercial Activities.''
This Transmittal Memorandum updates the Federal pay raise
assumptions and inflation factors used for computing the Government's
in-house personnel and non-pay costs for Fiscal Years 1997 through
2003. The Federal pay raise assumptions and the non-pay category rates
are, generally, contained in the President's Budget for Fiscal Year
1998. The factors contained in OMB Circular No. A-76, Transmittal
Memorandum No. 16 are outdated. It should not be assumed that these
civilian pay raises will be those that will be in effect for
preparation of the FY 1999 Budget. Guidance on pay raise assumptions to
use for the FY 1999 Budget will be issued to agencies prior to the
Budget submission date.
The revision does not require any agency to (1) create or maintain
a duplicate control/monitoring/reporting system or (2) adopt any
additional controls, not presently in compliance with Federal
Acquisition Regulations (FAR).
Agencies are reminded that OMB Circular No. A-76, Transmittal
Memoranda 1 through 14 are canceled. Transmittal Memorandum No. 15
provided the Revised Supplemental Handbook, dated March 1996 (Federal
Register, April 1, 1996, pages 14338-14346).
DATES: As with previous OMB Circular A-76 Transmittals, the provisions
of Transmittal Memorandum No. 17 are effective immediately and shall
apply to all cost comparisons in progress that have not yet undergone
bid opening or where the in-house bid has not yet otherwise been
revealed.
FOR FURTHER INFORMATION CONTACT: Mr. David Childs, Budget Analysis and
Systems Division, NEOB Room 6002, Office of Management and Budget, 725
17th Street, N.W., Washington, D.C. 20503, Telephone Number: (202) 395-
6104, FAX Number (202) 395-7230.
Franklin D. Raines,
Director.
Executive Office of the President
Office of Management and Budget
Washington, D.C. 20503
February 13, 1997.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 17
To the Heads of Executive Departments and Agencies
Subject: Performance of Commercial Activities
This Transmittal Memorandum updates the Federal pay raise
assumptions and inflation factors used for the computing the
Government's in-house personnel and non-pay costs, as generally
provided in the President's Budget for Fiscal Year 1998. However,
because the 1998 Budget did not specify 1999-2003 pay raises for
civilian employees, for purposes of A-76 cost comparison
determinations only, the civilian pay raise percentages for 1999-
2003 shall be assumed to be the same as the military pay raise
assumptions for the corresponding years as shown below. It should
not be assumed that these civilian pay raises will be those that
will be in effect for preparation of the FY 1999 Budget. Guidance on
pay raise assumptions to use for the FY 1999 Budget will be issued
to agencies prior to the Budget submission date.
Similarly, the non-pay inflation factors are for purposes of A-
76 cost comparison determinations only. They reflect the generic
non-pay inflation assumptions used to develop the FY 1998 Budget
baseline estimates required by law. The law requires that a specific
inflation factor (GNP fixed-weight FY/FY index) be used for this
purpose. These inflation factors should not be viewed as estimates
of expected inflation rates for major long-term procurement items or
as an estimate of inflation for any particular agency's non-pay
purchases mix.
The following factors should be applied per paragraph B, pages
19-21 of the OMB Circular A-76 Revised Supplemental Handbook (March
1996).
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Military/
Federal pay raise assumptions effective date civilian
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January 1998................................................ 2.8
January 1999................................................ 3.0
January 2000................................................ 3.0
January 2001................................................ 3.0
January 2002................................................ 3.0
January 2003................................................ 3.0
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Non-Pay Categories (Supplies and Equipment, etc.)
FY 1996 ...........................................................2.2
FY 1997 ...........................................................2.5
FY 1998 ...........................................................2.6
FY 1999 ...........................................................2.6
FY 2000 ...........................................................2.6
FY 2001 ...........................................................2.6
FY 2002 ...........................................................2.6
FY 2003 ...........................................................2.6
Geographic pay differentials received in 1997 shall be included
for the development of in-house personnel costs. The above pay raise
factors shall be applied after consideration is given to the
geographic pay differentials. The pay raise factors provided for
1998 and beyond shall be applied to all employees, with no
assumption being made as to how they will be distributed between
possible locality and ECI-based increases.
These updates are effective as follows: all changes in the
Transmittal Memorandum are effective immediately and shall apply to
all cost comparisons in process where the Government's in-house cost
estimate has not been publicly revealed before this date.
Agencies are reminded that OMB Circular No. A-76, Transmittal
Memorandum 1 through Transmittal Memorandum 14 are canceled.
Transmittal Memorandum No. 15 provided the Revised Supplemental
Handbook, and is dated March 27, 1997 (Federal Register, April 1,
1996, pages 14338-14346). Transmittal Memorandum No. 16, which
provided last year's OMB Circular A-76 Federal pay raise and
inflation factor assumptions is also hereby canceled.
Sincerely,
Franklin D. Raines,
Director.
[FR Doc. 97-4511 Filed 2-24-97; 8:45 am]
BILLING CODE 3110-01-P
