[Federal Register Volume 67, Number 42 (Monday, March 4, 2002)]
[Notices]
[Pages 9796-9797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4998]


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OFFICE OF MANAGEMENT AND BUDGET


Issuance of Transmittal Memorandum No. 24, Amending OMB Circular 
No. A-76, ``Performance of Commercial Activities''

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

ACTION: Notice.

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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 2003.

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, Tel. No. (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 Homepage address (URL): 
http:/www.whitehouse.gov/WH/EOP/omb/circulars.

Mitchell E. Daniels, Jr.,
Director.

February 26, 2002.
Circular No. A-76 (Revised)
Transmittal Memorandum No. 24

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 2003.
    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 fiscal year 2003 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 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.

                      Federal Pay Raise Assumptions
------------------------------------------------------------------------
                                                           Percent
                  Effective date                   ---------------------
                                                     Civilian   Military
------------------------------------------------------------------------
January:
  2001............................................        3.7        3.7
  2002............................................        4.6    \1\ 6.9
  2003............................................        2.6        4.1
  2004............................................        3.4        3.4
  2005............................................        3.4        3.4
  2006............................................        3.4        3.4
  2007............................................        3.4        3.4
  2008............................................        3.4        3.4
  2009............................................        3.4        3.4
  2010............................................        3.4        3.4
  2011............................................        3.4        3.4
  2012............................................        3.4       3.4
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\1\ Average of various longevity- and rank-specific increases for
  January 2002.


            Non-Pay Categories (Supplies and Equipment, etc.)
------------------------------------------------------------------------
                          Fiscal year                            Percent
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2001..........................................................       2.3
2002..........................................................       2.2
2003..........................................................       1.8
2004..........................................................       1.7
2005..........................................................       1.8
2006..........................................................       1.9
2007..........................................................       1.9

[[Page 9797]]

 
2008..........................................................       1.9
2009..........................................................       1.9
2010..........................................................       1.9
2011..........................................................       1.9
2012..........................................................       1.9
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    The pay rates (including geographic pay differentials) that are in 
effect for 2002 shall be included for the development of in-house 
personnel costs. The pay raise factors provided for 2003 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 they 
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 
provided A-76 federal pay raise and inflation factor assumptions and is 
canceled. Transmittal Memorandum No. 22 made 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. Transmittal Memorandum No. 23, which provided last year's 
Circular A-76 federal pay raise and inflation factor assumptions, is 
hereby canceled.

Mitchell E. Daniels, Jr.,
Director.
[FR Doc. 02-4998 Filed 3-01-02; 8:45 am]
BILLING CODE 3110-01-P