[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Notices]
[Page 26939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13405]



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OFFICE OF MANAGEMENT AND BUDGET


Issuance of Transmittal Memorandum No. 16, Amending OMB Circular 
No. A-76, ``Performance of Commercial Activities''

AGENCY: Office of Management and Budget.

SUMMARY: This notice contains Transmittal No. 16, 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 1996 through 
2002. The Federal pay raise assumptions and the non-pay category rates 
are, generally, contained in the President's Budget for Fiscal Year 
1997. The factors contained in OMB Circular No. A-76, Transmittal 
Memorandum No. 14 are outdated.
    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. 16 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 6104, Office of Management and Budget, 725 
17th Street NW., Washington, DC 20503, Telephone Number: (202) 395-
6104, FAX Number (202) 395-7230.
Alice M. Rivlin,
Director.

EXECUTIVE OFFICE OF THE PRESIDENT

Office of Management and Budget

Washington, D.C. 20503

May 23, 1996.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 16

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 1997. However, 
because the 1997 Budget did not specify 1998-2002 pay raises for 
civilians, for purposes of A-76 cost comparison determinations only, 
the civilian pay raise percentages for 1998-2002 shall be assumed to 
be the same as the military pay raise assumptions for the 
corresponding years as shown below. 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 1997 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 only 
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).

------------------------------------------------------------------------
                                                               Military/
         Federal pay raise assumptions effective date           civilian
------------------------------------------------------------------------
January 1997.................................................        3.0
January 1998.................................................        3.1
January 1999.................................................        3.1
January 2000.................................................        3.1
January 2001.................................................        3.1
January 2002.................................................        3.1
                                                                        
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            Non-Pay Categories (Supplies and Equipment, etc.)           
                                                                        
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FY 1995......................................................        2.9
FY 1996......................................................        2.6
FY 1997......................................................        2.7
FY 1998......................................................        2.7
FY 1999......................................................        2.7
FY 2000......................................................        2.7
FY 2001......................................................        2.7
FY 2002......................................................        2.7
------------------------------------------------------------------------

    Geographic pay differentials received in 1996 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 1997 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 No. A-76, Transmittal Memorandum 1 
through Transmittal Memorandum 14 are canceled. Transmittal Memorandum 
No. 15 provided the Revised Supplemental Handbook, dated March 1996 
(Federal Register, April 1, 1996, pages 14338-14346).

        Sincerely,
Alice M. Rivin,
Director.
[FR Doc. 96-13405 Filed 5-28-96; 8:45 am]
BILLING CODE 3110-01-M