[Federal Register Volume 63, Number 238 (Friday, December 11, 1998)]
[Notices]
[Pages 68441-68445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32906]


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DEPARTMENT OF ENERGY


Planning Guidance for Contractor Work Force Restructuring

AGENCY: Department of Energy.

ACTION: Notice of final planning guidance.

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SUMMARY: The Department of Energy publishes Final Planning Guidance 
that it has issued to its field organizations, which are responsible 
for planning and implementing contractor work force restructuring at 
defense nuclear facilities and other Department of Energy facilities. 
The Final Planning Guidance supercedes interim guidance published for 
comment in the Federal Register on March 5, 1996.

DATES: The changes made by the Final Planning Guidance will take effect 
January 11, 1999.

FOR FURTHER INFORMATION CONTACT: Terence L. Freese, U.S. Department of 
Energy, Office of Worker and Community Transition, WT-1, 1000 
Independence Avenue, S.W., Washington, D.C. 20585; phone: 202-586-5907.

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to the Atomic Energy Act of 1954 (AEA), the Department of 
Energy (DOE) owns defense nuclear facilities in various locations in 
the United States. These facilities are operated for DOE by management 
and operating contractors. As a result of the end of the Cold War, many 
DOE defense nuclear facilities are undergoing work force downsizing and 
restructuring as the result of changes in the activities at these 
facilities.
    Section 3161 of the National Defense Authorization Act for Fiscal 
Year 1993, 42 U.S.C. 7274h, requires DOE to develop a site-specific 
plan for restructuring the work force at any defense nuclear facility 
where DOE determines that a change in the work force is necessary. 
Defense nuclear facilities within the meaning of section 3161 include 
(1) facilities conducting atomic energy defense activities involving 
the production or utilization of special nuclear material, (2) nuclear 
waste storage or disposal facilities, (3) testing and assembly 
facilities, and (4) atomic weapons research facilities. The actual 
execution of any work force restructuring plan is subject to the 
availability of funds for that purpose.
    On March 5, 1996, DOE published a notice of Interim Planning 
Guidance in the Federal Register and invited comments from stakeholders 
and the general public (61 FR 8593). The Interim Planning Guidance set 
forth procedures and policies for coordinating work force restructuring 
activities by DOE field organizations, pursuant to section 3161 and the 
DOE's broad authority under the AEA (42 U.S.C. 161(i)(3) and 2201(p)) 
to develop generally applicable policies covering all aspects of 
defense nuclear facilities. The Interim Planning Guidance was preceded 
by use of preliminary guidance and extensive consultation with various 
stakeholders, including DOE and DOE contractor employees, 
representatives of bargaining units of employees, interested Federal, 
State and local government agencies, educational institutions, and 
groups in the communities that would be affected by restructuring at 
DOE defense nuclear facilities.
    DOE received written comments covering fifty issues from twelve 
commenters on the Interim Planning Guidance. These commenters included 
DOE employees, DOE contractors and contractor unions. DOE also sought 
comments on the Interim Planning Guidance at a national stakeholder 
meeting held in Atlanta, Georgia, on March 13-15, 1996. In response to 
concerns raised with respect to the process for reviewing and approving 
work force restructuring plans from DOE field organizations and other 
stakeholders, a team of DOE Headquarters and field organization 
representatives developed recommendations for streamlining the process 
for plan review and providing additional flexibility for development of 
such plans. Comments on subsequent revised drafts of the guidance based 
on these comments and recommendations were sought at national 
stakeholder meetings in Oakland, California, on April 9-11, 1997, and 
Alexandria, Virginia, on June 17-18, 1998.

II. Discussion of Stakeholder Comments and Final Planning Guidance

    The Final Planning Guidance is intended to streamline the process 
for review and approval of work force restructuring plans, and to 
provide increased flexibility for defense sites to meet the objectives 
of section 3161 consistent with changing missions, new contract 
mechanisms and business efficiencies. In addition, this document also 
reflects revised Congressional direction with respect to funding 
limitations for enhanced benefits under section 3161. Separate guidance 
on implementing this Congressional direction was provided to field 
organizations by the Office of Worker and Community Transition on March 
2, 1998.
    The Final Planning Guidance calls on each defense nuclear facility 
to develop a work force restructuring plan that will establish general 
strategies for work force restructuring as it may occur at a given 
site. This new emphasis on a general strategy instead of a detailed

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blueprint recognizes a shift in the nature of restructuring activities 
from large episodic reductions primarily driven by changes in the 
budget to restructuring that occurs on a smaller, but more frequent, 
scale and is more directly related to project completion, changes in 
skill mix requirements and improved business efficiency. In such an 
environment, many stakeholders, including DOE Field Managers and DOE 
contractors, commented that specific thresholds to trigger separate, 
detailed plans were unworkable.
    Many stakeholders perceived the itemized description of benefits 
set out for consideration in the Interim Planning Guidance as 
prescriptive rather than as suggestions for consideration by each 
facility. In light of Congressional direction limiting the funding for 
enhanced separation benefits under section 3161 to the Worker and 
Community Transition appropriation, and recognizing the increasingly 
varied requirements among facilities slated for early closure, those 
implementing new contracting mechanisms, and those continuing to 
utilize traditional management and operating contracts, it seemed more 
appropriate for DOE to limit discussion in the Final Planning Guidance 
to only those specific benefits that were prescriptive. Information on 
best practices, including model legal documentation, in restructuring 
will be provided through direct consultation between the Office of 
Worker and Community Transition and stakeholders, as well as through 
other published sources including the DOE's Annual Report on Contractor 
Work Force Restructuring, the Office of Worker and Community Transition 
web page at http://www.wct.doe.gov, and a handbook that the Office of 
Worker and Community Transition is preparing.

III. Congressional Notification

    Consistent with the Small Business Regulatory Enforcement Fairness 
Act of 1996, DOE will submit to Congress a report regarding the 
issuance of this notice of Final Planning Guidance prior to the 
effective date. The report will note that the Office of Management and 
Budget has determined that this notice of Final Planning Guidance does 
not constitute a ``major rule'' under that Act. 5 U.S.C. 804(2).

IV. Review Under the National Environmental Policy Act

    This guidance establishes procedures for work force planning. The 
planning guidance is intended to increase consistency and streamline 
reporting throughout the Department of plans for work force 
restructuring. Implementation of the guidance will not result in 
environmental impacts. The Department has reviewed this guidance in 
accordance with its procedures for implementing the National 
Environmental Policy Act, 10 CFR Part 1021 and has determined that this 
guidance is covered under the Categorical Exclusions found at paragraph 
A-13 of Appendix A to Subpart D of those regulations, which applies to 
administrative, organizational or procedural guidelines. Accordingly, 
neither an environmental assessment nor an environmental impact 
statement is required.

    Issued in Washington, D.C. on December 2, 1998.
Robert W. DeGrasse, Jr.,
Director, Office of Worker and Community Transition.

Final Planning Guidance for Contractor Work Force Restructuring

Table of Contents

I. INTRODUCTION
II. LEGISLATIVE PROVISIONS
III. GENERAL GUIDANCE
IV. WORK FORCE PLANNING
V. CONTRACTOR ROLES AND RESPONSIBILITIES
VI. DEVELOPING WORK FORCE RESTRUCTURING PLANS
    A. When Plans Are Needed
    B. Amendments to Established Plans
VII. ELEMENTS OF WORK FORCE RESTRUCTURING PLANS
    A. Long-Term Strategic Plan and Work Force Implications
    B. Stakeholder Input to Plans
    C. Work Force Planning
    D. Define Application of the Plan
    E. Departmental Policy on Benefits
    F. Local Impact Assistance to Communities
VIII. DEPARTMENTAL REVIEW AND APPROVAL
    A. Approval of Plans
    B. Notification and Approval of Plan Implementation
IX. Performance Evaluation
Appendices
    A. Section 3161 and 3163 of the Fiscal Year 1993 National 
Defense Authorization Act (Public Law 102-484, October 23, 1992)
    B. Listing of Defense Nuclear Facilities
    C. Preference in Hiring
    D. DOE Order 350.1 and Department of Energy Acquisition Letter 
No. 93-4

Planning Guidance for Contractor Work Force Restructuring

I. Introduction

    The Department of Energy's Office of Worker and Community 
Transition (the Office) has prepared this planning guidance to assist 
Department of Energy (DOE or Department) field organizations to plan 
for, and mitigate the impacts of, changes in the Department's 
contractor work force.
    This guidance supercedes the earlier interim guidance issued by the 
Office on February 1, 1996, and published in the Federal Register on 
March 5, 1996. This document is a product of the Department's 
experience over the past two years--an extensive process of employee 
and public stakeholder involvement in shaping our worker and community 
transition policies.
    This guidance provides common objectives for work force 
restructuring while emphasizing the importance of a tailored approach 
at each site to meet these objectives. This revision also addresses: 
(1) formal comments received in response to the publication of earlier 
guidance in the Federal Register; (2) steps to streamline and make more 
efficient the process for development, review and approval of work 
force restructuring actions; and (3) changes in Departmental 
contracting approaches and development of long-range strategic plans.
    Except as otherwise noted, this guidance is not intended to be 
prescriptive. Cognizant field organizations have primary responsibility 
for assuring planning and overseeing implementation of work force 
restructuring. The Department's field organizations are in the best 
position to consult with affected stakeholders on these plans, to 
understand the unique needs of work force restructuring at field 
facilities, and to develop work force restructuring strategies best 
suited to each individual facility. The Office will develop a Handbook 
for Contractor Work Force Restructuring that provides information on 
experiences at DOE sites for consideration by field organizations.

II. Legislative Provisions

    Section 3161 of the National Defense Authorization Act for Fiscal 
Year 1993 (the Act) requires the Secretary of Energy to develop a plan 
for restructuring the work force for a defense nuclear facility when 
there is a determination that a change in the work force is necessary. 
The plan is to be developed in consultation with local, state, and 
national stakeholders, and submitted to the Congress 90 days after 
notice of a planned work force restructuring has been given to the 
affected employees and communities.
    Section 3161 of the Act provides specific objectives to guide the 
preparation of the plan to minimize worker and community impacts. 
Relevant sections of the Act are included as Appendix A. DOE facilities 
that have been determined to be defense

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nuclear facilities for the purposes of section 3161 are listed in 
Appendix B. For reasons of fairness, the Secretary directed that the 
objectives set forth in section 3161 should be applied to the extent 
practicable whenever work force restructuring takes place in the 
Department.

III. General Guidance

    The Office encourages field organizations to utilize the 
combination of work force restructuring strategies that will most 
effectively accomplish a site's restructuring objectives. In developing 
these strategies, field organizations are expected to consider best 
practices in the public and private sectors. The cognizant field 
organization should administer work force changes consistent with the 
DOE Order 350.1 covering Reductions in Contractor Employment or any 
subsequent applicable DOE Order. A work force restructuring plan 
developed by the field organization should be consistent with program 
objectives, budget constraints, contractual provisions, collective-
bargaining agreements, and other legal obligations. The plan should be 
developed in consultation with the stakeholders at the affected 
facility and other appropriate stakeholders to ensure, among other 
things, the most effective expenditure of public funds.

IV. Work Force Planning

    The primary objective of work force planning and restructuring is 
to retain employees with the skills, knowledge and abilities necessary 
to effectively and safely meet assigned and future missions within 
budget constraints. Restructuring strategies must be closely integrated 
with planning based on identified work force requirements. Effective 
work force planning should consider both short-term requirements for 
immediate tasks, as well as long-term requirements for skills based on 
missions identified in strategic plans for the site. Improvements in 
organizational and operational efficiency should also be considered, 
including changes in internal organizational structure and contracting 
mechanisms.

V. Contractor Roles and Responsibilities

    The Department will of necessity seek the assistance of its 
contractors in developing work force restructuring plans. Nevertheless, 
the plans are Department of Energy products. In addition, it is 
generally the Department's policy to make information available to the 
public that has bearing on the plans and is available to the operating 
contractors, unless such information is protected by law or regulation. 
Contractors will have responsibility for implementing the provisions of 
the work force restructuring plan subject to oversight from the 
appropriate DOE field organization.

VI. Developing Work Force Restructuring Plans

A. When Plans Are Needed

    In order to provide appropriate long-term planning of site 
operations, and to allow potentially affected workers to know how their 
situations may be accommodated, work force restructuring plans should 
be developed that are not limited to a single episode of restructuring 
but will apply for any restructuring that may occur at a particular 
site. This planning differs from past practice where a new plan was 
developed with each restructuring action over a certain threshold. 
Plans may identify options that may be utilized in a particular 
restructuring action, subject to the availability of funds.
    The cognizant field organization for a non-defense site should 
consider whether a work force restructuring plan is appropriate based 
on the contracting arrangements at the site, the prospect for 
significant work force change, the potential impact on the community, 
and the extent to which provision of separation benefits beyond 
contract requirements would be consistent with best business practices 
and fair treatment of workers.

B. Amendments to Established Plans

    When modifications of established site work force restructuring 
plans are necessary due to changing circumstances, stakeholder input or 
implementation experience, proposed changes in the established plan 
shall be submitted to the Office for expeditious Headquarters review 
and approval.

VII. Elements of Work Force Restructuring Plans

A. Long-Term Strategic Plan and Work Force Implications

    Ongoing plans should identify a site's long-term strategic plan, 
including anticipated closure and the anticipated work force 
implications of that plan.

B. Stakeholder Input to Plans

    Consultation with local, state, and national stakeholders is an 
essential element of the work force restructuring process. Special 
attention should be given to consultation with the existing work force, 
their representatives, and local communities. Input should be solicited 
and considered at appropriate points throughout the development of 
plans for implementing work force restructuring. In order to facilitate 
participation by stakeholders, the Office has made this Final Planning 
Guidance available through the Federal Register and through electronic 
means.

C. Work Force Planning

    A description of the objectives and processes used to plan for 
short-and long-term work force requirements should be included in the 
plan. Plans should incorporate flexible work force planning and 
retraining to minimize layoffs in the work force.

D. Define Application of the Plan

    Each site has a unique mix of contractors and subcontractors 
performing work for the Department. Work force restructuring plans 
should identify the conditions under which categories of employees may 
be eligible for particular benefits.

E. Departmental Policy on Benefits

    It is the Department's policy that preference in hiring and 
displaced worker medical benefits, are to be offered to all eligible 
separating employees. Appendix C provides guidance that has been 
developed for implementing preference in hiring. The guidelines for 
displaced workers medical benefits are set out in DOE Order 350.1 and 
Department of Energy Acquisition Letter No. 93-4, as modified by 
memorandum on August 12, and December 2, 1993. These documents are 
included as Appendix D.
    Additional programs that may be provided to affected workers and 
any applicable eligibility requirements should be fully described in 
the plan. Plans should clearly state that enhanced benefits are subject 
to availability of funds from the Worker and Community Transition 
Appropriation. Plans should set out the considerations that will be 
used to determine when requests to seek funds to implement enhanced 
benefits programs will be considered, consistent with Congressional 
direction. Prior to implementing or announcing any program which 
anticipates providing enhanced benefits, field organizations shall 
submit to the Office an estimate of the number of participants and 
costs associated with a proposed benefit offering.
    In implementing the objectives of section 3161 of the Act, the 
Department recognizes a special responsibility to minimize the impact 
of work force restructuring on employees who participated in efforts to 
maintain the Nation's nuclear deterrent during the

[[Page 68444]]

Cold War. September 27, 1991, the day President Bush announced the 
first unilateral reduction of the Nation's nuclear weapons stockpile, 
has generally been recognized by this Department as the end of the Cold 
War. In developing a work force restructuring plan, the following are 
among the potential benefits that may be considered for affected 
workers.
1. Programs to Minimize Layoffs
    After work force planning has identified the classifications of 
workers at risk, consideration should be given to strategies that 
minimize involuntary separations while also retaining appropriate job 
skills. Strategies should be selected based upon prior work force 
planning and restructuring experience at the site and best practices in 
the public and private sectors, and may include early retirement 
programs, voluntary separation incentives, and retraining for new 
missions, including cleanup.
2. Involuntary Separation
    Each affected individual should be provided as much individual 
notice as practicable of his or her termination. In some cases, a 
minimum amount of specific notice is required by contract or 
collective-bargaining agreement. Involuntarily separated employees 
shall be fully advised of any benefits or services for which they are 
eligible. Appropriate notification to workers, labor representatives, 
and local, county and state governments shall be provided in accordance 
with DOE Order 350.1, or subsequent Order, and the Worker Adjustment 
and Retraining Notification Act (WARN), if applicable.
3. Programs to Assist Separating Workers
    Requests for funding educational, relocation, and outplacement 
assistance should be considered to minimize the social and economic 
impact of work force changes, as well as a one-time construction worker 
benefit.

F. Local Impact Assistance to Communities

    The work force restructuring plan should be developed in 
coordination with, and in support of, the regional development 
objectives of communities significantly impacted by the Department's 
downsizing. The local Community Reuse Organization should be contacted 
in the development of the plan to address anticipated economic and 
social impacts resulting from the Department's actions.

VIII. Departmental Review and Approval

A. Approval of Plans

    By law, the Secretary submits work force restructuring plans 
subject to the provisions of section 3161 to Congress, and thus, is the 
official responsible for final approval. In order to reduce the number 
of involuntary layoffs, and pending Secretarial transmittal of the plan 
to Congress, enhanced benefits may be provided after receipt of written 
approval by the Office. The Office will seek concurrence from the 
affected program office or offices, the Office of General Counsel, and 
the Office of Congressional Affairs prior to providing such approval. 
It is the policy of the Department to obtain from employees who 
separate under voluntary separation programs, including early 
retirement incentives, a release of claims related to their employment 
and separation. A sample release is available on the Office's web page 
at http://www.wct.doe.gov. The cognizant field organization should 
consult with the Office prior to approving enhanced benefits at non-
defense nuclear facilities. Draft plans should be submitted to the 
Office for Headquarters concurrence prior to their release to 
stakeholders.

B. Notification and Approval of Plan Implementation

    Advance notification of intent to implement work force 
restructuring actions should be provided as early as possible, to 
maximize notification to the work force and the community, with an 
objective of 90 days advance notice to Congress. This reflects the need 
to be able to respond to changing business requirements and budget 
uncertainties. Headquarters review of work force restructuring plan 
implementation will take into consideration the time sensitivity of 
actions to meet business requirements.

IX. Performance Evaluation

    The Office of Worker and Community Transition, in consultation with 
various stakeholders, has developed a set of performance objectives to 
determine the effectiveness of work force planning and restructuring 
activities. Those objectives--which are available upon request to the 
Office--are used to evaluate the effectiveness of those activities.

Appendix A--Section 3161 and 3163 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484, October 
23, 1992)

    The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/sec.3161.html.

Appendix B--Listing of Defense Nuclear Facilities

    The list below reflects facilities receiving funding for Atomic 
Energy Defense activities of the Department of Energy, with the 
exception of activities under Naval Reactor Propulsion. It is 
recognized that these facilities have varying degrees of defense 
activities, ranging from a total defense dedication to a small 
portion of their overall activity. This may cause certain 
difficulties in implementing the intent of the section 3161 
legislation. Regardless, this listing will be used by the Office for 
possible application of funding received for defense worker 
assistance and community transition purposes.

Kansas City Plant
Pinellas Plant
Mound Facility
Fernald Environmental Management Project Site
Pantex Plant
Rocky Flats Environmental Technology Site, including the Oxnard 
Facility
Savannah River Site
Los Alamos National Laboratory
Sandia National Laboratory
Lawrence Livermore National Laboratory
Oak Ridge National Laboratory
Nevada Test Site
Y-12 Plant
East Tennessee Technology Park
Hanford Site
Idaho National Environmental Engineering Laboratory
Waste Isolation Pilot Project
Portsmouth Gaseous Diffusion Plant
Paducah Gaseous Diffusion Plant

Appendix C--Preference in Hiring

    Section 3161 provides that, to the extent practicable, 
terminated employees at a defense nuclear facility should receive 
preference in filling vacancies in the work force of the Department 
of Energy and its contractors and subcontractors. The Department has 
determined that employees must be identified as having helped 
maintain the Nation's nuclear deterrent in order to qualify for this 
preference. The preference should be honored by all prime 
contractors, and subcontractors whose contracts with the Department 
equal or exceed $500,000 in value.
    The Department has established the following criteria for 
determining eligibility for the hiring preference. The individual 
must be a former employee who (1) was involuntarily terminated 
(except if terminated for cause); (2) meets the eligibility 
standards described below; and (3) is qualified for the job at the 
time the work is to begin. Where qualifications are approximately 
equal, eligible individuals will be given preference in hiring. 
However,

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the preference will be administered consistent with applicable law, 
regulation, or executive order, and collective-bargaining 
agreements. This preference is not immediately applicable through an 
outsourcing action or follow-on contract in which the current 
employees are first offered their same or similar jobs with the 
replacement contractor in order to avoid a layoff.
    An individual's hiring preference continues until termination by 
the action (or inaction) of that individual. Initially, and on an 
annual basis thereafter, eligible individuals must certify their 
desire to retain their hiring preference. Actions that would 
terminate an individual's hiring preference include: voluntary 
termination or termination for cause from a position that was 
obtained through the exercise of the preference, or failure to 
comply with the annual certification requirement.
    Each field organization should develop procedures to ensure that 
the hiring preference is being honored by all prime contractors and 
designated subcontractors. Field organization procedures should also 
describe how the Job Opportunity Bulletin Board System is to be 
utilized by affected contractors and eligible individuals.

Eligibility Criteria

A. Regular Employees

    1. Must have been working at a defense nuclear facility on 
September 27, 1991;
    2. Must have worked full-time (or regular part time) at a 
facility from that date through the date of the restructuring 
notification; and
    3. Must have been involuntarily separated other than for cause.

B. Intermittent Workers, Including Construction Workers

    1. Must have worked at a defense nuclear facility on or before 
September 27, 1991;
    2. Must have worked at a facility within 180 days preceding the 
work force restructuring notification;
    3. Must have worked at a facility a total time, including time 
worked prior to September 27, 1991, equivalent to an employee having 
worked full-time from September 27, 1991, to the date of the 
restructuring notification, or have actually worked the industry 
standard of full-time from September 27, 1991, through the date of 
the restructuring notification; and
    4. Must have been affected by the announced restructuring within 
a reasonable period of time (one year is suggested). For an 
intermittent worker, this includes the interruption of a project 
before its anticipated completion, or the completion of the 
assignment or project without prospect for a follow-on assignment at 
the site where the employee had a reasonable expectation of a 
follow-on assignment.

Appendix D--Department of Energy Order 350.1

Contractor Human Resource Management Programs, September 30, 1996

Chapter 1--Labor Relations

Chapter 2--Labor Standards

Chapter 3--Reduction in Contractor Employment

    The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/350order.html.

Department of Energy Acquisition Letter No. 93-4

    The Department of Energy is making the text available at http://
www.wct.doe.gov/owct/Documentation/acq93.html.

[FR Doc. 98-32906 Filed 12-10-98; 8:45 am]
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