EASING UP ON CONTRACTING OUT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP96M01138R000400070006-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: August 18, 2011
• Sequence Number: 6
• Publication Date: December 24, 1984
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MO1138R000400070006-2
STAT
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MO1138R000400070006-2
 Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
3i
WEEKLY
FEDERAL EA . LO Y ES ` I-TE DIG. ST
O (ISSN: 0430-1692)
JOSEPH YOUNG, Editor
Don Mace, Associate Editor
PUBLISHED IN WASHINGTON, D.C.
Vol. 34, No. 21
December 24, 1984 Washington, D.C.
Copyright ? 1984 by FEDERAL EMPLOYEES' NEWS DIGEST, INC.
0
0
EASING UP ON CONTRACTING OUT-There is at least one bit of good news for federal employees these
days. The Reagan administration is easing up on the ambitious contracting-out plans it once had.
There are several reasons for this change of heart. First, the Congress took a dim view of contracting
out in-house federal work to the private sector that has historically been done well and cost-efficiently by
government career employees. Among other things, Congress this year approved legislation signed into law
by President Reagan that protects hundreds of thousands of defense jobs in so-called "core logistics func-
tions" from being turned over to the private sector. And there were other contracting-out restrictions im-
posed by Congress on the Veterans Administration and 15 other agencies.
A second reason is the huge budget deficit estimated to rise above $200 billion in fiscal 1986. When the
administration began its drive to contract-out federal jobs to the private sector -at one point it was talking
about upwards of 500,000 positions-cost factors appeared to be a minor consideration as long as industry
could do the job effectively.
But all this has changed with the huge budget deficit. Costs are definitely a major factor and the
administration realizes that in many instances it would cost more to contract-out these jobs.
So the administration has revised its thinking on contracting-out. It will proceed on a more modest
scale.
Cost comparison reviews will be limited to 14 specific areas: automated data processing, data tran-
scription and key punch, training, audiovisual, food service, facilities and ground maintenance, mail and
file, architecture and engineering, library, laundry and dry cleaning, warehousing and stock handling,
motor pool and vehicle maintenance, accounts management and loan processing.
Even in these areas the cost factors will be closely studied.
Also, specifically exempted from any review will be activities with less than 10 full-time employees;
with handicapped employees that can't be placed elsewhere; policy-making and contract-monitoring jobs;
and Defense Department activities exempted for national security reasons. And other government agencies
may now compete for work that otherwise would be contracted-out.
MSPB REVIEWING SECURITY CLEARANCE JURISDICTION-The Merit Systems Protection Board is in
the process of deciding if it (1) has the authority to review agencies' reasons for revoking or denying federal
employee security clearances and (2) if it can order an agency to reinstate an employee's security clearance.
-- It has under review several cases substantially involving those issues and solicited outside comments
(amicus briefs) in the Dec. 13, 1984, Federal Register.
The cases include: Bogdanowicz v. Navy, MSPB Doc. No. PH07528110587, Jan. 18, 1984; Egan v.
Navy, SE07528310257, Dec. 22, 1983; Griffin v. Defense Mapping Agency, SL07528410150; Peterson v.
Army, BN07528410010, July 6,1984; and Irving v. Navy, BN07528410005, Feb. 14,1984.
MSPB says comments must be filed no later than Jan. 14, 1985.
WINNER-The latest winner in our send-us-names contest is C.B. Harper of Stone Mountain, Ga., who
will receive a copy of the handsome pictorial book on Washington, D.C.
FEDERAL CIRCUIT DECISIONS-The U.S. Court of Appeals for the Federal Circuit has issued several in-
teresting decisions involving federal personnel policies and rules.
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
 Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
-2-
It upheld a two-grade demotion-from a GS-13 to GS-11-of a Defense Logistics Agency employee
for lying about his academic background. The employee had claimed college credits from schools he never
attended.
The appeals court said that in view of the employee "lying to the government," he was "fortunate that
the DLA did not levy a harsher penalty."
(Daniels v. Defense Logistics Agency, 84-1194.)
The court also upheld the Interior Department in firing an employee who refused a reassignment that
would have "inconvenienced" him. The employee who was ordered transferred from one town in Colorado
to another claimed he was unable to meet the physical requirements of the new job. But the court rejected
his contention, declaring his refusal of the reassignment was motivated by the "personal and financial in-
conveniences of the required move."
(Kimsey v. Dept. of Interior, 84-982.)
The court also affirmed the demotion of a guard at the Bureau of Engraving and Printing - from GS-7
to GS-5 - for physically attacking a fellow officer. "Obviously, the federal service cannot tolerate such un-
provoked assaults on a fellow employee, and the penalty of demotion can hardly be deemed excessive or in-
appropriate. . .," the court said.
(Wilson v. Dept. of Treasury, 84-1251.)
NEW EMPLOYEES-Those federal and postal workers hired after January 1, 1984, will pay 7.05 percent
for their Social Security coverage starting next month instead of the previous 6.7 percent. Also, they will
continue to pay 1.3 percent for civil service retirement coverage during 1985 or until a new supplemented
retirement system is enacted for them.
HAPPY HOLIDAYS-As per custom, we will not publish for the next two weeks. Our next issue will be that
of January 14, 1985. Meanwhile, our best wishes to you and yours for a Merry Christmas and a happy and
healthy New Year.
TRANSSEXUAL SUES USPS OVER REFUSAL TO HIRE-A person identified in court records as Jane
Doe has sued the U.S. Postal Service for withdrawing an offer of a clerk-typist job after he voluntarily dis-
closed he was about to undergo a sex-change operation and had been advised by doctors to wear a dress to
help mentally adjust to the surgery.
USPS declined to hire Doe (who has since had that operation) because officials thought it might dis-
rupt her co-workers.
Meanwhile, Doe says she has found work as a clerk-typist in another federal agency.
LUNCH TIME OVERTIME FOR LETTER CARRIERS REJECTED-The U.S. Court of Appeals for the
Sixth Circuit has ruled that modest restrictions on the lunch period activities of letter carriers does not enti-
tle them to be paid overtime for the 30-minute. lunch period. The decision. involved 12,000 letter carriers
who were part of the class action suit filed under the Fair Labor Standards Act. .
The representative plaintiff, Kenneth J. Hill, a letter carrier who works.out of the post office in the
Cleveland suburb of North Olmsted, may eat lunch at three places chosen by him and approved by his su-
pervisors, and must arrive at the lunch place by an approved route. Before eating, he is required to make
sure that the undelivered mail is secured in this postal vehicle. Also, during the entire length of the lunch
period, he is responsible for the safety of that undelivered mail, cash.on-delivery (COD) money, keys to the
vehicle and other valuables.
Hill contended that these responsibilities, plus the fact that he can be called upon by public while
eating, means that the half-hour lunch period is in fact duty tim that the USPS should pay for. Moreover,
courtesy requirements mean that he may have to stop eating and accept mail, provide information, and
perform other services during his lunch hour, the suit said.
However, the appeals court dismissed the suit, declaring that his lunch period is not being interfered
with. "There may be cases where letter carriers are obliged to conduct more substantial duties during lunch
Copyright ? 1984 by FEDERAL EMPLOYEES' NEWS DIGEST, INC.
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
 Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
time and would be entitled to compensation," but this is not one of them, the court concluded.
(Hill et al v. U. S., et al., CA 6, N. No. 83-3655, Nov. 21, 1984.)
WOMEN'S ACCEPTANCE OF LOWER PAY DOESN'T JUSTIFY BIAS-Just because women employees
are willing to accept lower pay for similar jobs held by men doesn't justify federal agencies paying them the
lower wage, the U.S. District Court for Northern Georgia has ruled.
The case involved a women employee of the U.S. Civil Rights Commission who accepted a GS-11 po-
sition to perform basically.the same work as a male GS-13. The agency justified its action by the fact that
she was willing to accept the lower paying job as proven by her lower salary history as compared to a man.
But the court rejected this argument, explaining that women traditionally have been willing to accept
depressed pay rates and have lower salary histories loffered the men a lower grade but hat alswo ld not act
that the Commission admitted that it could
cept the jobs at that rate.
liquidated
an damages
The court ordered the agency to pay woman
she and her GS- 13 malecounterpat s tperg-
out that her supervisor knew .that the Act applied to
formed basically the same work.
(Graboff v. Pendleton, USDC ND Ga., 36 FEP Cases 350, Sept. 27,1984.)
USE OF HEALTH CLUB FACILITIES HELD NON-NEGOTIABLE-The Federal Labor Relations Authority
has ruled that the use of a health club by employees at an Air Force base is not a condition of employment
and hence non-negotiable. The FLRA ruling came in a refusal-to-bargain case brought by American Feder-
ation of Government Employees Local 1138 against the Air Force Logistics Command (AFLC) at Wright-
Patterson Air Force Base, Ohio. The union sought to link health club participation to employee productivi-
ty by showing that workers are more alert at work as a result of using the club. But FLRA said the health
club use Lis more of an off-duty C and AFGE Local 1138,16 FLRA No.1
(AF 51, Case No S-CA-20017, Oct. 31, 1984.)
PRESIDENT'S BUDGET EXPECTED TO CALL FOR STABLE U.S. EMPLOYMENT-President Reagan's
budget message to Congress next month is expected to call for stablized overall federal employment for the
1986 fiscal year starting next October. Although there will be some employment fluctuations in various
agencies, the overall total is expected to remain somewhat the same.
Office of Management and Budget officials have been quick to disclaim the predictions of some Office
of Personnel Management spokesmen that a 125,000 federal personnel cut would be undertaken if the
Reagan's 5 percent federal pay cut proposal is rejected by Congress. OMB officials said they have no such
plan currently under consideration.
Meanwhile, Reagan's budget proposals are expected to call for the elimination of the Small Business
Administration and the Legal Services Corporation. Reagan previously sought abolishment of Legal Ser-
vices along with elimination of the Department of Energy and Education, all of which were rejected by
Congress.
HOUSE PANEL TO CONSIDER TOTAL 11ConductN extensive hearings early x House
ear on the full array of
Compensation and Employee Benefits pay and fringe benefits available to federal workers.
- The hearings are expected to be a big draw because the Reagan administration is mounting a fullscale
assault on pay (it has reworked the GS pay-setting formula by using smaller firms for comparison purposes
and is proposing a five percent federal pay cut next October, and massive reductions of federal retirement
benefits which it says are far too generous).
A recent review of the federal compensation system performed by the independent Hay Group for the
House Post Office and Civil Service Committee showed federal pay 10.3 percent behind that of the private
sector, health care by 2.2 percent, disability compensation by .7 percent, death benefits by .3 percent and
executive perquisites lagging by 1.2 percent.
Copyright ? 1984 by FEDERAL EMPLOYEES' NEWS DIGEST. INC.
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
 Sanitized Copy Approved for Release 2011/08/18: CIA-RDP96MOl 138R000400070006-2
December 24, 1984 -4-
But it also found federal retirement ahead by 6.4 percent and leave and holiday privileges .8 percent
above private industry practice.
Thus, the differential is about 7.2 percent in favor of the private sector employees, according to the
Hay findings.
FAA EMPLOYEES SATISFIED WITH PAY, BUT NOT WITH AGENCY'S HUMAN RELATIONS-An atti-
tude survey taken by the Federal Aviation Administration among its 47,097 employees reveals that they
generally are satisfied with their pay and challenged by their jobs. But they believe that management's hu-
man relations skills need improving. A total of 25,781 employees, or nearly 55 percent, answered the sur-
vey's questionnaire.
More than 75 percent said FAA pays well and offers good job security. About 70 percent felt challeng-
ed by their jobs, and an even higher percentage expressed respect for their co-workers.
But slightly more than 50 percent of the respondents faulted top management and supervisors for be-
ing uninterested in human relations, for not keeping employees informed about what is taking place within
the organization, and for not caring whether employees are satisfied in their work. Also, more than 50 per-
cent said they do not feel they are given a fair opportunity for promotion. There were a substantial number
of complaints that competition for slots is rigged.
FAA administrator Donald D. Engen said panels of management experts will be sent to FAA facilities
to analyze and suggest improvements in human relationship. He promised that another survey will be taken
in 1986 to measure progress as a result of action taken in response to this survey.
TIE QUIT RATE TO PAY-Declaring that the government employee "quit" rate is only 3.8 percent com-
pared to three or four times the turnover rate in the private sector, the Office of Personnel Management
announced it will seek a new federal compensation system based on this comparison of voluntary quit
rates.
The OPM said it will go ahead with its plan to add smaller firms of 20 or more employees to the PATC
Survey (for professional, administrative, technical and clerical) conducted by the Bureau of Labor Statis-
tics in the private sector and on which federal pay comparability is based. Also non-profit firms such as
hospitals and schools will be included.
In addition, state and local goverment pay rates will be included if Congress approves. The others can
be included without legislation. OPM said that the present PATC survey excludes 40 to 60 percent of the
American non-farm work force.
The OPM study asserted that federal workers are overpaid in comparison with private industry, but
gave no figures to support its contention. Its argument was that fewer federal workers quit their jobs com-
pared with those of the private sector because federal workers were so well compensated.
The OPM said that reducing federal pay by 5 percent for the fiscal year 1986 and then freezing pay
over three years would trim budget deficits by 13 billion dollars.
,
11 1 -1 - tie iefal bias rated that federal departments and agencies may purchase subscriptions to the Federal Employees'
51976
i
M
5
)
ssued
ay
91,
,
News Digest wdh governmartt funds The decision is No.; B 185
est is expressly forbidden by the Copyright
s News Di
l
e
l E
d
o
g
e
mp
oy
era
f the Fe
Photocopying or any other form of reproduction
law Permission tq rep!fnt lndividuaiItems maybe obtained from us upon written request
_ 1. i'. .. 1.' .._ .... ._. _ r _ -. . . ~~~-~ .. ~. .~. w....,.w? 1.r..,A ti././.l.T .a1A ?mit ~
~.~ s..":+.. a'_~+,~;'~,.~..: i.-Zvi