[Federal Register Volume 63, Number 251 (Thursday, December 31, 1998)]
[Rules and Regulations]
[Pages 72097-72098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34394]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AI48


Prevailing Rate Systems; Lead Agency Responsibility

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing a final 
rule that will change the lead agency responsibility for certain 
Federal Wage System (FWS) appropriated fund wage areas from the 
Department of Veterans Affairs (VA) to the Department of Defense (DOD). 
VA requested that OPM designate DOD as the lead agency in all of the 
wage areas where VA currently has lead agency responsibility. This 
change will make DOD the lead agency in all FWS wage areas and will 
make more efficient use of the resources devoted by agencies to 
determining FWS pay rates.

DATES: This final rule is effective on January 1, 1999, except that VA 
will retain lead agency responsibility for the Roanoke, Virginia, wage 
area until the next wage schedule for that wage area is established on 
January 17, 1999.

FOR FURTHER INFORMATION CONTACT: Jennifer Hopkins at (202) 606-2848, or 
send an email message to [email protected].

SUPPLEMENTARY INFORMATION: On November 2, 1998, the Office of Personnel 
Management (OPM) published a proposed rule (63 FR 58659) to transfer 
lead agency responsibility for the New Haven-Hartford, Connecticut; 
Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-Urbana, 
Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des Moines, 
Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern Michigan; 
Minneapolis-St. Paul, Minnesota; New York, New York; Rochester, New 
York; Asheville, North Carolina; Charlotte, North Carolina; Cincinnati, 
Ohio; Cleveland, Ohio; Southwestern Oregon; Pittsburgh, Pennsylvania; 
Eastern Tennessee; Houston-Galveston-Texas City, Texas; Roanoke, 
Virginia; and Milwaukee, Wisconsin, FWS wage areas from the Department 
of Veterans Affairs (VA) to the Department of Defense (DOD).
    The proposed rule provided a 30-day period for public comment, 
during which OPM received one comment from a labor organization, which 
requested that OPM pursue enactment of appropriations legislation that 
would specifically designate funds for VA to conduct local FWS wage 
surveys. However, the commenter recognized that under present 
conditions there is no acceptable alternative but to make the proposed 
changes in lead agency responsibility effective. The possibility of 
requesting that Congress appropriate funds to VA specifically for 
conducting FWS wage surveys was raised and considered by the members of 
FPRAC. However, the Committee did not adopt this suggestion (which is 
outside the scope of our regulatory authority) as part of its 
recommendation to OPM.
    Under 5 U.S.C. 5343(a)(2), OPM is responsible for designating lead 
agencies in Federal Wage System (FWS) wage areas. Lead agencies are 
responsible for conducting surveys of private sector employers to 
establish wage schedules for FWS employees based on local prevailing 
rates. The Department of Defense (DOD) is the lead agency in 110 FWS 
wage areas, and the Department of Veterans Affairs (VA) is the lead 
agency in 23 FWS wage areas. VA is currently the lead agency in the New 
Haven-Hartford, Connecticut; Miami, Florida; Tampa-St. Petersburg, 
Florida; Champaign-Urbana, Illinois; Chicago, Illinois; Cedar Rapids-
Iowa

[[Page 72098]]

City, Iowa; Des Moines, Iowa; Augusta, Maine; Boston, Massachusetts; 
Southwestern Michigan; Minneapolis-St. Paul, Minnesota; New York, New 
York; Rochester, New York; Asheville, North Carolina; Charlotte, North 
Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon; 
Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas 
City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, FWS wage 
areas.
    VA requested that OPM designate DOD as the lead agency in the wage 
areas where VA is currently designated as the lead agency. Since the 
establishment of the FWS in 1972, VA has played a key role in the 
administration of the pay program for FWS employees. However, during 
the past few years, VA has experienced reductions in overall employment 
in the human resources management areas both in field and headquarters 
activities. At the headquarters level, two out of three experienced 
specialists assigned to oversee FWS wage surveys are no longer 
available to work in that area because of retirements and 
reassignments. VA believes a consolidation of the FWS survey function 
within one agency will be more efficient and will provide a level of 
consistency in the survey process that will strengthen the FWS program 
nationwide. DOD expressed its willingness and indicated its ability to 
assume lead agency responsibility in the wage areas where VA is 
currently assigned lead agency responsibility.
    The proposed change was reviewed by the Federal Prevailing Rate 
Advisory Committee (FPRAC), the national labor-management committee 
responsible for advising OPM on matters that affect the pay of FWS 
employees. The management members of FPRAC proposed this change because 
diminishing staff resources within VA headquarters make it very 
difficult for VA to accomplish its wage survey work in an effective 
manner, and because DOD expressed its ability and willingness to assume 
lead agency responsibility in all FWS wage areas. After considering all 
possible alternatives, the Committee recommended approval of the change 
in lead agency by majority vote. All Committee members voted for the 
proposal except for the National Federation of Federal Employees, which 
abstained. The remaining labor members of FPRAC supported the proposed 
change with reservations, stating that although no reasonable 
alternative exists, they are concerned about the placement of 
Governmentwide FWS wage determinations within a single agency.
    Pursuant to section 553(d)(3) of title 5, United States Code, I 
find that good cause exists to make this regulation effective in less 
than 30 days. This regulation is being made effective in less than 30 
days because of the recommendation of FPRAC that DOD assume lead agency 
responsibility for all FWS wage areas where practical at the start of 
the calendar year.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
will affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 532

    Administrative practice and procedure, Freedom of information, 
Government employees, Reporting and recordkeeping requirements, Wages.

U.S. Office of Personnel Management.
Janice R. Lachance,
Director.

    Accordingly, the Office of Personnel Management is amending 5 CFR 
part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

    1. The authority citation for part 532 continues to read as 
follows:

    Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5 
U.S.C. 552.

Appendix A to Subpart B of Part 532 [Amended]

    2. Appendix A to subpart B is amended for the New Haven-Hartford, 
Connecticut; Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-
Urbana, Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des 
Moines, Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern 
Michigan; Minneapolis-St. Paul, Minnesota; New York, New York; 
Rochester, New York; Asheville, North Carolina; Charlotte, North 
Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon; 
Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas 
City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, wage areas by 
revising the lead agency listings from ``VA'' to ``DOD''.

[FR Doc. 98-34394 Filed 12-30-98; 8:45 am]
BILLING CODE 6325-01-P