98-5902. Issuance of Transmittal Memorandum No. 18, Amending OMB Circular No. A-76, ``Performance of Commercial Activities''

[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11462-11463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5902]


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OFFICE OF MANAGEMENT AND BUDGET


Issuance of Transmittal Memorandum No. 18, Amending OMB Circular 
No. A-76, ``Performance of Commercial Activities''

AGENCY: Office of Management and Budget.

ACTION: Notice.

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SUMMARY: This notice contains Transmittal Memorandum No.18, 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, as

[[Page 11463]]

generally provided in the President's Budget for Fiscal Year 1999.

DATES: 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.

FOR FURTHER INFORMATION CONTACT: The Budget Analysis and Systems 
Division, NEOB Room 6002, Office of Management and Budget, 725 17th 
Street, N.W., Washington, D.C. 20503, Telephone Number: [phone], 
FAX Number [phone].
Clarence Crawford,
Associate Director for Administration.

February 18, 1998.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 18

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 1999.
    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 1999 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.
    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                   civilian 
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Effective Date:                                                         
  January 1998.............................................          2.8
  January 1999.............................................          3.1
  January 2000.............................................          3.0
  January 2001.............................................          3.0
  January 2002.............................................          3.0
  January 2003.............................................          3.0
Non-Pay Categories (Supplies and Equipment, etc.):                      
  FY 1997..................................................          2.2
  FY 1998..................................................          1.9
  FY 1999..................................................          2.0
  FY 2000..................................................          2.1
  FY 2001..................................................          2.2
  FY 2002..................................................          2.2
  FY 2003..................................................          2.2
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    Geographic pay differentials received in 1998 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 
1999 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 
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 and 17, which 
provided the last two year's OMB Circular A-76 Federal pay raise and 
inflation factor assumptions are also canceled.

    Sincerely,
Franklin D. Raines,
Director.
[FR Doc. 98-5902 Filed 3-6-98; 8:45 am]
BILLING CODE 3110-01-P