[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Memorandum No. 16 are outdated.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).

------------------------------------------------------------------------
                                                               Military/
        Federal pay raise assumptions effective date           civilian 
------------------------------------------------------------------------
January 1998................................................         2.8
January 1999................................................         3.0
January 2000................................................         3.0
January 2001................................................         3.0
January 2002................................................         3.0
January 2003................................................         3.0
------------------------------------------------------------------------

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