[Federal Register Volume 60, Number 174 (Friday, September 8, 1995)]
[Proposed Rules]
[Pages 46780-46781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22317]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 60, No. 174 / Friday, September 8, 1995 / 
Proposed Rules  


[[Page 46780]]


OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 300

RIN 3206-AE80


Employment (General); Use of Private Sector Temporaries

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Office of Personnel Management (OPM) proposes to authorize 
Federal agencies to use private sector temporaries for 120 work days 
instead of 120 calendar days as currently permitted. Agencies would 
continue to purchase temporary help services through the Federal 
procurement process following all applicable laws and regulations 
relating to the purchase of goods or services from the private sector. 
The proposed change would give agencies more flexibility to conduct 
their operations, as recommended by the National Performance Review.

DATES: Comments must be received on or before November 7, 1995.

ADDRESSES: Send or deliver written comments to Leonard R. Klein, 
Associate Director for Employment, U.S. Office of Personnel Management, 
1900 E Street NW., Room 6F08, Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:
Ellen Russell on 202-606-0830, FAX 202-606-2329, or TDD 202-606-0023.

SUPPLEMENTARY INFORMATION: On January 25, 1989, OPM published [at 54 FR 
3762] regulations authorizing Federal agencies to use commercial 
temporary help services in two situations: certain employee absences 
and critical unexpected workload needs. Because the authority was new 
and there were concerns about the possibility of misuse, the timeframes 
were deliberately tight. Moreover, the regulations contained two sets 
of time limits: a 45-work day limit on using a particular individual 
from a temporary help service firm and an overall 120-calendar-day 
limit on using temporary help services for any one situation. When 
justified, OPM approved agency requests for extensions.
    Our review indicates that in the more than 6 years the authority 
has been in effect, Federal agencies have appropriately used the 
services of temporary help firms. Agencies indicated that their 
employees favor the policy because using temporary help services 
alleviates extra work pressure and stress during workload peaks and 
also makes it easier for employees to get time off for critical 
personal needs. Agencies recommended continuing the authority for 
temporary help service firms without the 45-day restriction on the use 
of same individual from a firm because it was inefficient to retrain a 
new person after 45 days.
    Although this proposal would permit agencies to use temporary help 
services for longer periods, there is no change in the Office of 
Personnel Management view that continuing work is most appropriately 
performed by permanent Federal employees. On September 13, 1994, OPM 
published final regulations [at 59 FR 46895] to ensure that temporary 
Federal appointments are used to meet truly short-term needs. As in 
those regulations, the limits in this proposal are designed to restrict 
the use of temporary help services to short-term needs.
    In exercising the discretion to use temporary help services, 
agencies are reminded of their labor relations obligations under 
Chapter 71 of Title 5 of the U.S. Code and Executive Order 12871.
    This proposal would lengthen the time agencies could use temporary 
help services for an individual situation from 120 calendar days to 120 
workdays. The new 120-workday limit would also apply to an agency's use 
of a particular individual from a firm; a change from the current 45-
workday limit in a 6-month period. The proposal would continue the 
provision for agencies to request an extension from local OPM service 
centers when the need for temporary help services continued beyond the 
initial 120 workdays and would specify that OPM could approve an 
extension for up to a total of 240 workdays. This would mean that an 
agency with OPM approval could use the same individual from a firm for 
up to 240 workdays on the same assignment or on a different assignment. 
In this context, ``agency'' means a major organizational element, 
headquarters or field, of an agency.
    The proposal continues the current prohibitions against using 
temporary help services to displace Federal employees or in place of 
regular civil service procedures for permanent appointment and would 
add a prohibition against use of temporary help services to circumvent 
controls on employment levels. The proposal also continues current 
provisions permitting the use of temporary help services only when 
there are no current agency employees who could be spared to do the 
work, there are no former employees available on the agency's 
reemployment priority list, and when there are no applicants available 
for temporary Federal employment within the timeframe needed.
    The proposal would change the reporting requirement to OPM from 
annual reports to reports on an as-requested basis. Agencies would have 
to maintain the records necessary for such reports and for internal 
evaluation. The proposed wording more accurately reflects the fact that 
agencies have the primary responsibility for oversight. Agency 
contracting officers are responsible for proper performance of the 
contract for temporary help services. Additionally, agency expenditures 
for temporary help services are subject to the full range of internal 
controls and oversight, Inspector General reviews, and audits which 
apply to every service contract. Agency adherence with these 
regulations is subject to review under OPM's regular compliance and 
evaluation activities.
    Finally, the proposal would make several editorial changes, for 
example, deleting reference to the Federal Personnel Manual, a document 
abolished on December 31, 1994, and adding a reference to temporary 
reassignments and time-limited promotions as mechanisms for agencies to 
accomplish work instead of using temporary help firms. The proposal 
would also clarify that agencies may not use temporary help services 
for the Senior Executive Service or for the work of managerial or 
supervisory positions.

[[Page 46781]]


Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities for the 
following reasons:
    1. OPM is not regulating entities (including businesses) of any 
size, or imposing record keeping, reporting, or other compliance 
requirements on them. OPM is regulating the conduct of Federal agencies 
if they choose to use temporary help firms.
    2. The requirements an entity must observe are generated through an 
agency-initiated contracting process featuring competitive bidding 
under the already-established, statutory Federal procurement system. 
That system applies to all contractors providing goods and services to 
the Government. The entities affected by that system are those who seek 
a contract. Those who win a contract receive a beneficial economic 
impact.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 300

    Freedom of information, Government employees, Reporting and 
recordkeeping requirements, Selective Service System.

Office of Personnel Management.
James B. King,
Director.
    Accordingly, OPM proposes to amend part 300 of title 5, Code of 
Federal Regulations, as follows:

PART 300--EMPLOYMENT (GENERAL)

    1. The authority citation for part 300 is revised to read as 
follows:

    Authority: 5 U.S.C. 552, 3301, 3302; E.O. 10577, 3 CFR, 1954-
1958 Comp., page 218, unless otherwise noted.

    Secs. 300.101 through 300.104 also issued under 5 U.S.C. secs. 
7201, 7204, 7701; E.O. 11478, 3 CFR, 1966-1970 Comp., page 803.
    Secs. 300.301 also issues under 5 U.S.C. 1104 and 3341.
    Secs. 300.401 through 300.408 also issued under 5 U.S.C. secs. 
1302(c), 2301, and 2302.
    Secs. 300.501 through 300.507 also issued under 5 U.S.C. 
1103(a)(5).
    Sec. 300.603 also issued under 5 U.S.C. 1104.
    Secs. 300.801 through 300.802 issued under 5 U.S.C. 3328.

    1. Section 300.502 is revised to read as follows:


Sec. 300.502  Coverage

    (a) The regulations in this subpart apply to the competitive 
service and to Schedules A and B in the excepted service.
    (b) Agencies may not use temporary help services for Senior 
Executive Service or for the work of managerial or supervisory 
positions.
    2. In Sec. 300.503 paragraph (c)(3) is added to read as follows:


Sec. 300.503  Conditions for using private sector temporaries.

* * * * *
    (c) * * *
    (3) To circumvent controls on employment levels.
    3. In Sec. 300.504, paragraphs (a) and (b) are revised to read as 
follows:


Sec. 300.504  Prohibition on employer-employee relationship.

* * * * *
    (a) In accordance with the regulations in this subpart, an agency 
may use private sector temporaries in a particular situation for no 
more than 120 workdays. If the situation justifies use of temporary 
help services beyond the initial 120 workdays, the agency may request 
OPM authorization for an additional period not to exceed 120 workdays, 
up to a total of 240 workdays.
    (b) An individual employee of a temporary help firm may work at a 
major organizational element (headquarters or field) of an agency for 
no more than 120 workdays in a 12 month period. An agency may request 
OPM authorization to keep the individual for an additional period not 
to exceed 120 workdays up to a total of 240 workdays:
    (1) In conjunction with an extension of the overall time limit for 
a particular situation, or
    (2) For a different situation if the using of the same individual 
would be in the interest of good administration.
* * * * *
    4. Section 300.505 is revised to read as follows:


Sec. 300.505  Relationship of civil service procedures.

    Agencies continue to have full authority to meet their temporary 
needs by various means, for example, redistributing work, authorizing 
overtime, using in-house pools, and making details or time-limited 
promotions of current employees. In addition, agencies may appoint 
individuals as civil service employees on various work schedules 
appropriate for the work to be performed.
    5. Section 300.507 is revised to read as follows:


Sec. 300.507  Documentation and oversight.

    Agencies are required to maintain records and provide oversight to 
establish that their use of temporary help service firms is consistent 
with the regulations in this subpart. As needed, OPM may request 
agencies to provide information on the extent of their use of temporary 
help service firms.

[FR Doc. 95-22317 Filed 9-7-95; 8:45 am]
BILLING CODE 6325-01-M