[Federal Register Volume 66, Number 50 (Wednesday, March 14, 2001)]
[Notices]
[Pages 14943-14944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6253]


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OFFICE OF MANAGEMENT AND BUDGET


Performance of Commercial Activities

AGENCY: Office of Management and Budget, Executive Office of the 
President.

ACTION: Issuance of Transmittal Memorandum No. 23, amending OMB 
Circular No. A-76, ``Performance of Commercial Activities.''

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SUMMARY: This Transmittal Memorandum updates the annual 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 2002.

DATES: 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.

FOR FURTHER INFORMATION CONTACT: Mr. David C. Childs, Office of Federal 
Procurement Policy, NEOB Room 9013, Office of Management and Budget, 
725 17th Street, NW, Washington, DC 20503, Telephone (202) 395-6104.
    Availability: Copies of the OMB Circular A-76, its Revised 
Supplemental Handbook and currently applicable Transmittal Memoranda 
changes may be obtained at the online OMB Home page address (URL) 
http:// www.whitehouse.gov/WH/EOP/omb.

 Mitchell E. Daniels, Jr.,
Director.

Attachment

March 7, 2001.

Circular No. A-76 (Revised)

Transmittal Memorandum No. 23

To the Heads of Executive Departments and Agencies

    Subject: Performance of Commercial Activities

    This Transmittal Memorandum updates the annual 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 2002.
    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 2002 Budget baseline 
estimates required by law. The law requires that a specific 
inflation factor (GDP FY/FY chained price index) be used for this 
purpose. These inflation

[[Page 14944]]

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.

------------------------------------------------------------------------
                                                              Military/
               Federal pay raise assumptions                   civilian
                                                              (percent)
------------------------------------------------------------------------
Effective Date:
    January 2000...........................................          4.8
    January 2001...........................................          3.7
    January 2002...........................................          3.6
    January 2003...........................................          3.9
    January 2004...........................................          3.9
    January 2005...........................................          3.9
    January 2006...........................................          3.9
Non-Pay Categories (Supplies and Equipment, etc.):
    FY 2000................................................          1.9
    FY 2001................................................          2.1
    FY 2002................................................          2.1
    FY 2003................................................          2.1
    FY 2004................................................          2.1
    FY 2005................................................          2.1
    FY 2006................................................          2.1
------------------------------------------------------------------------

    The pay rate (including geographic pay differentials) that are 
in effect for 2001 shall be included for the development of in-house 
personnel costs. The pay raise factors provided for 2002 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.
    Agencies are reminded that OMB Circular No. A-76, Transmittal 
Memoranda 1 through Transmittal Memorandum 14 are canceled. 
Transmittal Memorandum No. 15 provides the Revised Supplemental 
Handbook, and is dated March 27, 1996 (Federal Register, April 1, 
1996, pages 14338-14346). Transmittal Memoranda No. 16, 17, 18, and 
19 (to the extent it provided Circular A-76 Federal pay raise and 
inflation factors) are canceled. Transmittal Memorandum No. 20 
provided changes to the Revised Supplemental Handbook to implement 
the Federal Activities Inventory Reform Act of 1998 (P.L. 105.270). 
Transmittal Memorandum No. 21, which provided last year's Circular 
A-76 Federal pay raise and inflation factor assumptions is hereby 
canceled. Transmittal Memorandum No. 22 made additional technical 
changes to the Revised Supplemental Handbook regarding the 
implementation of the FAIR Act, A-76 administrative appeals, and the 
participation of directly affected employees on A-76 Source 
Selection Boards and their evaluation teams.

Mitchell E. Daniels, Jr.,
Director.
[FR Doc. 01-6253 Filed 3-13-01; 8:45 am]
BILLING CODE 3110-03-P