[Federal Register Volume 64, Number 60 (Tuesday, March 30, 1999)]
[Notices]
[Pages 15190-15191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7666]
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OFFICE OF MANAGEMENT AND BUDGET
Performance of Commercial Activities
AGENCY: Office of Management and Budget, Executive Office of the
President.
ACTION: Issuance of Transmittal Memorandum No. 19, amending OMB
Circular No. A-76, ``Performance of Commercial Activities.''
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SUMMARY: 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, as generally provided in the
President's Budget for Fiscal Year 2000. In addition, the standard
retirement cost factors for the weighted average CSRS/FERS pension and
Federal retiree health cost numbers are revised.
DATES: All changes in the Transmittal Memorandum are effective
immediately on March 30, 1999, 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.
[[Page 15191]]
FOR FURTHER INFORMATION CONTACT: The Budget Analysis and Systems
Division, NEOB Room 6002, Office of Management and Budget, 725 17th
Street, NW., Washington, DC 20503, Tel. No. (202) 395-6104, FAX No.
(202) 395-7230.
Availability
Copies of the current OMB Circular A-76 and the March 1996 OMB
Circular A-76 Revised Supplemental Handbook may be obtained by
contacting the Executive Office of the President, Office of
Administration, Publications Office, Washington, DC 20503, at (202)
395-7332. These documents are also accessible on the OMB Home page. The
online OMB Home page address (URL) is http:/www.whitehouse.gov/WH/EOP/
omb.
Jacob J. Lew,
Director.
Executive Office of the President,
Office of Management and Budget, Washington, D.C. 20503
March 24, 1999.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 19
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 computing the Government's
in-house personnel and non-pay costs, as generally provided in the
President's Budget for Fiscal Year 2000.
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 2000 Budget baseline
estimates required by law. The law requires that a specific inflation
factor (GDP FY/FY chained price 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.
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military/civilian
Federal pay raise assumptions effective date (percent)
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January 2000...................................... 4.4
January 2001...................................... 3.9
January 2002...................................... 3.9
January 2003...................................... 3.9
January 2004...................................... 3.9
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Non-Pay Categories (Supplies and Equipment, etc.)
FY 1998--1.2%
FY 1999--1.3%
FY 2000--2.0%
FY 2001--2.1%
FY 2002--2.1%
FY 2003--2.1%
FY 2004--2.1%
Geographic pay differentials received in 1999 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
2000 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.
In addition, the standard retirement cost factors for the
weighted average CSRS FERS pension and Federal retiree health cost
numbers are reduced from those published in the March 1996 A-76
Supplemental Handbook. These numbers are being revised because of
downward estimates in actuarial normal cost estimates, which more
than offset the gradual shift toward FERS in the total. However, the
post-retirement health cost was revised up by a full percentage
point. The net result is that the cost factors provided at Part II,
Chapter 2, paragraph B.6. f. 1.a., are up by 0.3 to 0.6 percentage
points. In addition, the current benefit component for Federal
employee insurance and health benefits at Part II, Chapter 2,
paragraph 6. f. 1.b is revised up by 0.1 percentage points on the
health side to 5.7 percent. The Medicare factor of 1.45 at Part II,
Chapter 2, paragraph 6. f. 1.b and the cost of miscellaneous fringe
benefits of 1.7 percent at Part II, Chapter 2, paragraph 6. f. 1.c
., are unchanged.
Current Handbook--as printed in the March 1996 Revised
Supplemental Handbook at Part II, Chapter 2, Paragraph 6.f.1.a (page
20):
23.7% Regular (19.6 pension + 4.1 retiree health)
32.3% Air Traffic Controllers (28.2 pension + 4.1 retiree health)
37.7% Law Enforcement (33.6 pension + 4.1 retiree health)
Revised Handbook--as provided by this Transmittal at Part II,
Chapter 2, Paragraph 6.f.1.a (page 20):
24.0% Regular (18.9 pension + 5.1 retiree health)
33.0% Air Traffic Controllers (27.9 pension + 5.1 retiree health)
38.2% Law Enforcement (33.1 pension + 5.1 retiree health)
Other Current Benefits--as provided at Part II, Chapter 2,
Paragraph 6.f.1.b (page 20):
Current Handbook (March 1996) 5.6%
Revised per this Transmittal 5.7%
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
Memoranda 1 through Transmittal Memorandum 14 are canceled.
Transmittal Memorandum No. 15 provided the Revised Supplemental
Handbook, and is dated March 27, 1996 (Federal Register, April 1,
1996, pages 14338-14346). Transmittal Memoranda No. 16, 17 and 18,
which provided the last three year's OMB Circular A-76 Federal pay
raise and inflation factor assumptions are also canceled.
Sincerely,
Jacob J. Lew,
Director.
[FR Doc. 99-7666 Filed 3-29-99; 8:45 am]
BILLING CODE 3110-01-P
