[House Report 108-380]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-380
======================================================================
GAO HUMAN CAPITAL REFORM ACT OF 2003
_______
November 19, 2003.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Tom Davis of Virginia, from the Committee on Government Reform,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2751]
[Including cost estimate of the Congressional Budget Office]
The Committee on Government Reform, to whom was referred
the bill (H.R. 2751) to provide new human capital flexibilities
with respect to the GAO, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Committee Statement and Views.................................... 6
Section-by-Section............................................... 8
Explanation of Amendments........................................ 13
Committee Consideration.......................................... 13
Rollcall Votes................................................... 13
Application of Law to the Legislative Branch..................... 13
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 14
Statement of General Performance Goals and Objectives............ 14
Constitutional Authority Statement............................... 14
Unfunded Mandate Statement....................................... 14
Committee Estimate............................................... 14
Budget Authority and Congressional Budget Office Cost Estimate... 14
Changes in Existing Law Made by the Bill, as Reported............ 17
Additional Views................................................. 23
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.
(a) Short Title.--This Act may be cited as the ``GAO Human Capital
Reform Act of 2003''.
(b) Amendment of Title 31.--Except as otherwise expressly provided,
whenever in this Act an amendment is expressed in terms of an amendment
to a section or other provision, the reference shall be considered to
be made to a section or other provision of title 31, United States
Code.
SEC. 2. AMENDMENTS TO PUBLIC LAW 106-303.
(a) Authorities Made Permanent.--Sections 1 and 2 of Public Law 106-
303 (5 U.S.C. 8336 note and 5597 note) are amended by striking ``for
purposes of the period beginning on the date of the enactment of this
Act and ending on December 31, 2003'' each place it appears and
inserting ``October 13, 2000''.
(b) Sense of Congress.--
(1) Voluntary early retirement authority.--Section 1 of
Public Law 106-303 is amended by adding at the end the
following:
``(e) Sense of Congress.--It is the sense of Congress that the
implementation of this section is intended to reshape the General
Accounting Office workforce and not downsize the General Accounting
Office workforce.''.
(2) Voluntary separation incentive payments.--Section 2 of
Public Law 106-303 is amended by adding at the end the
following:
``(g) Sense of Congress.--It is the sense of Congress that the
implementation of this section is intended to reshape the General
Accounting Office workforce and not downsize the General Accounting
Office workforce.''.
(c) Additional Limitation Relating to VSIPs.--Section 2(b) of Public
Law 106-303 is amended by striking paragraph (2) and inserting the
following:
``(2) subsection (a)(2)(G) of such section shall be applied--
``(A) by construing the citations therein to be
references to the appropriate authorities in connection
with employees of the General Accounting Office; and
``(B) by deeming such subsection to be amended by
striking `Code.' and inserting `Code, or who, during
the thirty-six month period preceding the date of
separation, performed service for which a student loan
repayment benefit was or is to be paid under section
5379 of title 5, United States Code.';''.
SEC. 3. ANNUAL PAY ADJUSTMENTS.
(a) Officers and Employees Generally.--Paragraph (3) of section
732(c) is amended to read as follows:
``(3) except as provided under section 733(a)(3)(B) of this
title, basic rates of officers and employees of the Office
shall be adjusted annually to such extent as determined by the
Comptroller General, and in making that determination the
Comptroller General shall consider--
``(A) the principle that equal pay should be provided
for work of equal value within each local pay area;
``(B) the need to protect the purchasing power of
officers and employees of the Office, taking into
consideration the Consumer Price Index or other
appropriate indices;
``(C) any existing pay disparities between officers
and employees of the Office and non-Federal employees
in each local pay area;
``(D) the pay rates for the same levels of work for
officers and employees of the Office and non-Federal
employees in each local pay area;
``(E) the appropriate distribution of agency funds
between annual adjustments under this section and
performance-based compensation; and
``(F) such other criteria as the Comptroller General
considers appropriate, including, but not limited to,
the funding level for the Office, amounts allocated for
performance-based compensation, and the extent to which
the Office is succeeding in fulfilling its mission and
accomplishing its strategic plan;
notwithstanding any other provision of this paragraph, an
adjustment under this paragraph shall not be applied in the
case of any officer or employee whose performance is not at a
satisfactory level, as determined by the Comptroller General
for purposes of such adjustment;''.
(b) Officers and Employees in the Office Senior Executive Service.--
Subparagraph (B) of section 733(a)(3) is amended to read as follows:
``(B) adjusted annually by the Comptroller General
after taking into consideration the factors listed
under section 732(c)(3) of this title, except that an
adjustment under this subparagraph shall not be applied
in the case of any officer or employee whose
performance is not at a satisfactory level, as
determined by the Comptroller General for purposes of
such adjustment;''.
(c) Conforming Amendment.--Section 732(b)(6) is amended by striking
``title 5.'' and inserting ``title 5, except as provided under
subsection (c)(3) of this section and section 733(a)(3)(B) of this
title.''.
SEC. 4. PAY RETENTION.
Paragraph (5) of section 732(c) is amended to read as follows:
``(5) the Comptroller General shall prescribe regulations
under which an officer or employee of the Office shall be
entitled to pay retention if, as a result of any reduction-in-
force or other workforce adjustment procedure, position
reclassification, or other appropriate circumstances as
determined by the Comptroller General, such officer or employee
is placed in or holds a position in a lower grade or band with
a maximum rate of basic pay that is less than the rate of basic
pay payable to the officer or employee immediately before the
reduction in grade or band; such regulations--
``(A) shall provide that the officer or employee
shall be entitled to continue receiving the rate of
basic pay that was payable to the officer or employee
immediately before the reduction in grade or band until
such time as the retained rate becomes less than the
maximum rate for the grade or band of the position held
by such officer or employee; and
``(B) shall include provisions relating to the
minimum period of time for which an officer or employee
must have served or for which the position must have
been classified at the higher grade or band in order
for pay retention to apply, the events that terminate
the right to pay retention (apart from the one
described in subparagraph (A)), and exclusions based on
the nature of an appointment; in prescribing
regulations under this subparagraph, the Comptroller
General shall be guided by the provisions of sections
5362 and 5363 of title 5.''.
SEC. 5. RELOCATION BENEFITS.
Section 731 is amended by adding after subsection (e) the following:
``(f) The Comptroller General shall prescribe regulations under which
officers and employees of the Office may, in appropriate circumstances,
be reimbursed for any relocation expenses under subchapter II of
chapter 57 of title 5 for which they would not otherwise be eligible,
but only if the Comptroller General determines that the transfer giving
rise to such relocation is of sufficient benefit or value to the Office
to justify such reimbursement.''.
SEC. 6. INCREASED ANNUAL LEAVE FOR KEY EMPLOYEES.
Section 731 is amended by adding after subsection (f) (as added by
section 5 of this Act) the following:
``(g) The Comptroller General shall prescribe regulations under which
key officers and employees of the Office who have less than 3 years of
service may accrue leave in accordance with section 6303(a)(2) of title
5, in those circumstances in which the Comptroller General has
determined such increased annual leave is appropriate for the
recruitment or retention of such officers and employees. Such
regulations shall define key officers and employees and set forth the
factors in determining which officers and employees should be allowed
to accrue leave in accordance with this subsection.''.
SEC. 7. EXECUTIVE EXCHANGE PROGRAM.
Section 731 is amended by adding after subsection (g) (as added by
section 6 of this Act) the following:
``(h) The Comptroller General may by regulation establish an
executive exchange program under which officers and employees of the
Office may be assigned to private sector organizations, and employees
of private sector organizations may be assigned to the Office, to
further the institutional interests of the Office or Congress,
including for the purpose of providing training to officers and
employees of the Office. Regulations to carry out any such program--
``(1) shall include provisions (consistent with sections 3702
through 3704 of title 5) as to matters concerning--
``(A) the duration and termination of assignments;
``(B) reimbursements; and
``(C) status, entitlements, benefits, and obligations
of program participants;
``(2) shall limit--
``(A) the number of officers and employees who are
assigned to private sector organizations at any one
time to not more than 15; and
``(B) the number of employees from private sector
organizations who are assigned to the Office at any one
time to not more than 30;
``(3) shall require that an employee of a private sector
organization assigned to the Office may not have access to any
trade secrets or to any other nonpublic information which is of
commercial value to the private sector organization from which
such employee is assigned;
``(4) shall require that, before approving the assignment of
an officer or employee to a private sector organization, the
Comptroller General shall determine that the assignment is an
effective use of the Office's funds, taking into account the
best interests of the Office and the costs and benefits of
alternative methods of achieving the same results and
objectives; and
``(5) shall not allow any assignment under this subsection to
commence after the end of the 5-year period beginning on the
date of the enactment of this subsection.
``(i) An employee of a private sector organization assigned to the
Office under the executive exchange program shall be considered to be
an employee of the Office for purposes of--
``(1) chapter 73 of title 5;
``(2) sections 201, 203, 205, 207, 208, 209, 603, 606, 607,
643, 654, 1905, and 1913 of title 18;
``(3) sections 1343, 1344, and 1349(b) of this title;
``(4) chapter 171 of title 28 (commonly referred to as the
`Federal Tort Claims Act') and any other Federal tort liability
statute;
``(5) the Ethics in Government Act of 1978 (5 U.S.C. App.);
``(6) section 1043 of the Internal Revenue Code of 1986; and
``(7) section 27 of the Office of Federal Procurement Policy
Act (41 U.S.C. 423).''.
SEC. 8. REDESIGNATION.
(a) In General.--The General Accounting Office is hereby redesignated
the Government Accountability Office.
(b) References.--Any reference to the General Accounting Office in
any law, rule, regulation, certificate, directive, instruction, or
other official paper in force on the date of enactment of this Act
shall be considered to refer and apply to the Government Accountability
Office.
SEC. 9. PERFORMANCE MANAGEMENT SYSTEM.
Paragraph (1) of section 732(d) is amended to read as follows:
``(1) for a system to appraise the performance of officers
and employees of the General Accounting Office that meets the
requirements of section 4302 of title 5 and in addition
includes--
``(A) a link between the performance management
system and the agency's strategic plan;
``(B) adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the performance
management system;
``(C) a process for ensuring ongoing performance
feedback and dialogue between supervisors, managers,
and employees throughout the appraisal period and
setting timetables for review;
``(D) effective transparency and accountability
measures to ensure that the management of the system is
fair, credible, and equitable, including appropriate
independent reasonableness, reviews, internal
assessments, and employee surveys; and
``(E) a means to ensure that adequate agency
resources are allocated for the design, implementation,
and administration of the performance management
system;''.
SEC. 10. CONSULTATION.
Before the implementation of any changes authorized under this Act,
the Comptroller General shall consult with any interested groups or
associations representing officers and employees of the General
Accounting Office.
SEC. 11. REPORTING REQUIREMENTS.
(a) Annual Reports.--The Comptroller General shall include--
(1) in each report submitted to Congress under section 719(a)
of title 31, United States Code, during the 5-year period
beginning on the date of enactment of this Act, a summary
review of all actions taken under sections 2, 3, 4, 6, 7, 9,
and 10 of this Act during the period covered by such report,
including--
(A) the respective numbers of officers and
employees--
(i) separating from the service under section
2 of this Act;
(ii) receiving pay retention under section 4
of this Act;
(iii) receiving increased annual leave under
section 6 of this Act; and
(iv) engaging in the executive exchange
program under section 7 of this Act, as well as
the number of private sector employees
participating in such program and a review of
the general nature of the work performed by the
individuals participating in such program;
(B) a review of all actions taken to formulate the
appropriate methodologies to implement the pay
adjustments provided for under section 3 of this Act,
except that nothing under this subparagraph shall be
required if no changes are made in any such methodology
during the period covered by such report; and
(C) an assessment of the role of sections 2, 3, 4, 6,
7, 9, and 10 of this Act in contributing to the General
Accounting Office's ability to carry out its mission,
meet its performance goals, and fulfill its strategic
plan; and
(2) in each report submitted to Congress under such section
719(a) after the effective date of section 3 of this Act and
before the close of the 5-year period referred to in paragraph
(1)--
(A) a detailed description of the methodologies
applied under section 3 of this Act and the manner in
which such methodologies were applied to determine the
appropriate annual pay adjustments for officers and
employees of the Office;
(B) the amount of the annual pay adjustments afforded
to officers and employees of the Office under section 3
of this Act; and
(C) a description of any extraordinary economic
conditions or serious budget constraints which had a
significant impact on the determination of the annual
pay adjustments for officers and employees of the
Office.
(b) Final Report.--Not later than 6 years after the date of enactment
of this Act, the Comptroller General shall submit to Congress a report
concerning the implementation of this Act. Such report shall include--
(1) a summary of the information included in the annual
reports required under subsection (a);
(2) recommendations for any legislative changes to section 2,
3, 4, 6, 7, 9, or 10 of this Act; and
(3) any assessment furnished by the General Accounting Office
Personnel Appeals Board or any interested groups or
associations representing officers and employees of the Office
for inclusion in such report.
(c) Additional Reporting.--Notwithstanding any other provision of
this section, the reporting requirement under subsection (a)(2)(C)
shall apply in the case any report submitted under section 719(a) of
title 31, United States Code, whether during the 5-year period
beginning on the date of enactment of this Act (as required by
subsection (a)) or at any time thereafter.
SEC. 12. TECHNICAL AMENDMENT.
Section 732(h)(3)(A) is amended by striking ``reduction force'' and
inserting ``reduction in force''.
SEC. 13. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), this Act and
the amendments made by this Act shall take effect on the date of
enactment of this Act.
(b) Pay Adjustments.--
(1) In general.--Section 3 of this Act and the amendments
made by that section shall take effect on October 1, 2005, and
shall apply in the case of any annual pay adjustment taking
effect on or after that date.
(2) Interim authorities.--In connection with any pay
adjustment taking effect under section 732(c)(3) or
733(a)(3)(B) of title 31, United States Code, before October 1,
2005, the Comptroller General may by regulation--
(A) provide that such adjustment not be applied in
the case of any officer or employee whose performance
is not at a satisfactory level, as determined by the
Comptroller General for purposes of such adjustment;
and
(B) provide that such adjustment be reduced if and to
the extent necessary because of extraordinary economic
conditions or serious budget constraints.
(3) Additional authority.--
(A) In general.--The Comptroller General may by
regulation delay the effective date of section 3 of
this Act and the amendments made by that section for
groups of officers and employees that the Comptroller
General considers appropriate.
(B) Interim authorities.--If the Comptroller General
provides for a delayed effective date under
subparagraph (A) with respect to any group of officers
or employees, paragraph (2) shall, for purposes of such
group, be applied by substituting such date for
``October 1, 2005''.
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 2751, as amended, would provide the U.S. General
Accounting Office (GAO) with additional human capital
flexibilities, make permanent the voluntary early retirement
and buyout authorities granted to the GAO in Public Law 106-
303, the GAO Personnel Flexibilities Act, and change the name
of the agency to the U.S. Government Accountability Office.
BACKGROUND AND NEED FOR THE LEGISLATION
One of the top priorities for the Government Reform
Committee in the 108th Congress is to advance comprehensive
civil service reform for the federal government. The current
system, put in place more than fifty years ago, does not
adequately address the priorities of a 21st century workforce.
This legislation builds on the management and human capital
tools and flexibilities already granted to the GAO. The
Congress relies on the GAO to support it in meeting its
constitutional responsibilities and to help improve the
performance and ensure the accountability of the federal
government for the American people. Unlike many executive
branch agencies, which have either recently received or are
just requesting broad-based human capital tools and
flexibilities, GAO has had certain human capital tools and
flexibilities for over two decades. This legislation will
further GAO's ability to accomplish its mission and meet its
strategic plan, assure its accountability, and help ensure that
it can attract, retain, motivate, and reward a top-quality and
high-performing workforce currently and in future years.
Until 1980, GAO's personnel system was indistinguishable
from those of executive branch agencies--that is, GAO was
subject to the same laws, regulations, and policies governing
executive branch agencies. With the expansion of GAO's role in
congressional oversight of federal agencies and programs,
concerns grew about the potential for conflicts of interest.
Congress passed the GAO Personnel Act of 1980 (Public Law 96-
191, February 15, 1980) to avoid potential conflicts by making
GAO's personnel system independent of the executive branch.
Along with this independence, the Act gave GAO greater
flexibility in hiring and managing its workforce. Among other
things, it granted the Comptroller General authority to
appoint, pay, promote, and assign employees on the basis of
fitness and merit but without regard to title 5 requirements in
the areas of pay and classification. Most significantly, the
Act no longer made GAO subject to the General Schedule pay
system and authorized the Comptroller General to establish a
merit pay system for appropriate officers and employees. By
excepting GAO from the above requirements, the GAO Personnel
Act of 1980 allowed GAO to pursue some significant innovations
in managing its people, including the establishment of a
``broad banding'' or ``pay banding,'' approach for classifying
and paying its Analyst and Attorney workforce in 1989.
Given GAO's role as a key provider of information and
analyses to the Congress, maintaining the right mix of
technical knowledge and subject matter expertise as well as
general analytical skills is vital to achieving the agency's
mission. GAO spends about 80 percent of its resources on its
people. And yet, like other federal agencies, GAO has faced
significant human capital challenges--challenges that if not
effectively addressed, could impair the timeliness and quality
of its work for its congressional clients and the American
people they represent. Therefore, in early 2000, GAO sought
legislation establishing narrowly tailored flexibilities that
would help to reshape the agency's workforce and recruit and
retain staff with needed technical skills. With the support of
the House Committee on Government Reform, Congress passed H.R.
4642 which became Public Law 106-303 on October 13, 2000. This
Act provided GAO with new personnel flexibilities and
authorized the Comptroller General to:
1. Offer voluntary early retirement to realign the
workforce to meet budgetary constraints or mission needs;
correct skill imbalances; or reduce high-grade, managerial, or
supervisory positions.
2. Offer separation incentive payments to realign the
workforce to meet budgetary constraints or mission needs;
correct skill imbalances; or reduce high-grade, supervisory, or
managerial positions.
3. Establish modified regulations for the separation of
employees during a reduction or other adjustment in force.
4. Establish senior-level scientific, technical, and
professional positions and provide those positions with the
same pay and benefits applicable to the Senior Executive
Service while remaining within GAO's current allocation of
super-grade positions.
5. Renew the appointments of experts and consultants for
additional terms beyond an initial 3-year term and pay them at
a rate up to level IV of the Executive Schedule.
Lastly, the 2000 Act required the Comptroller General to
report annually on the agency's use of the first three
authorities and a 3-year assessment of the effectiveness of the
Act and any suggestions for change.
GAO issued an assessment of Public Law 106-303 entitled
``The Role of Personnel Flexibilities in Strengthening GAO's
Human Capital'' in June 2003 (GAO-03-954SP). It concluded that
the additional flexibilities authorized in Public Law 106-303
have helped to ensure that GAO has the right staff, with the
right skills, in the right locations to better meet the needs
of the Congress and the American people. We believe that GAO
has used the narrowly tailored flexibilities granted by the
Congress in Public Law 106-303 responsibly, prudently, and
strategically. For this and other reasons, including GAO's
extensive experience with broad bands and pay for performance
systems, its human capital infrastructure, and its unique role
in leading by example in major management areas, we believe
that additional management flexibilities should be granted to
GAO.
This legislation would change existing law by: (1) making
permanent GAO's 3-year authority to offer voluntary early
retirement and voluntary separation incentive payments, (2)
allowing GAO to adjust annually the rates of basic pay on a
separate basis than the annual adjustment authorized for
employees of the executive branch, (3) permitting GAO to set
the pay of an employee demoted as a result of workforce
restructuring or reclassification at his or her current rate
with no automatic annual increase to basic pay until his or her
salary is less than the maximum rate of their new position, (4)
providing authority in appropriate circumstances to reimburse
employees for some relocation expenses when that transfer has
some benefit to GAO, but does not meet the legal requirements
for reimbursement, (5) providing authority to place key
officers and employees, as defined by regulations, with fewer
than 3 years of federal experience in the 6-hour leave
category, (6) authorizing an executive exchange program with
the private sector that will sunset after 5 years, (7) changing
GAO's legal name from the ``General Accounting Office'' to the
``Government Accountability Office,'' (8) codifying several
ongoing practices for GAO's Performance Management System
including, among other things, that there be a link between the
performance management system and the agency's strategic plan,
adequate training for all employees in the performance
management system, and a means to ensure that adequate
resources are allocated for the performance management system,
(9) requiring the Comptroller General to consult with
interested groups or associations that represent GAO employees
before implementing any of the new flexibilities under the Act;
and (10) requiring GAO to include in its annual reports to the
Congress for a 5-year period a summary of all actions taken in
regard to the new flexibilities provided under sections 2, 3,
4, 6, 7, 9, and 10 of the legislation as well as a final report
summarizing the annual reporting data and recommending any
changes to the legislation.
LEGISLATIVE HISTORY
On July 16, 2003, H.R. 2751 was introduced by subcommittee
Chairwoman Jo Ann Davis, for herself and full committee
Chairman Tom Davis. That same day, H.R. 2751 was referred to
the Government Reform Subcommittee on Civil Service and Agency
Organization, which Jo Ann Davis chairs. A hearing titled, GAO
Human Capital Reform: Leading the Way, was held on that same
day before the Government Reform Subcommittee on Civil Service
and Agency Organization. The witnesses included the Comptroller
General of the United States, David M. Walker, Chris Keisling,
GAO's Employee Advisory Council's representative, Paul Light of
the Brookings Institution, and Pete Smith of the Private Sector
Council. At a July 23, 2003, Subcommittee business meeting,
H.R. 2751 was marked-up, with the adoption of an en bloc
amendment offered by Congressman Danny Davis by voice vote, and
reported out of the Subcommittee. On November 6, 2003, the full
committee held a business meeting, to consider H.R. 2751. The
committee adopted an amendment in the nature of a substitute
offered by Jo Ann Davis. The amendment reflected changes
suggested by Ranking Minority Member Henry Waxman. By voice
vote, the committee ordered the bill favorably reported to the
House of Representatives.
Section-by-Section
Section 1. Short title; amendment of title 31
Section 1 of the bill entitles the Act the ``GAO Human
Capital Reform Act of 2003''.
Section 2. Amendments to Public Law 106-303
Section 2 of the bill makes permanent the authority of the
General Accounting Office (GAO) under Public Law 106-303,
sections 1 and 2, to offer voluntary early retirements and
voluntary separation payments to certain employees of GAO when
necessary to realign GAO's workforce in order to meet budgetary
or mission needs, correct skill imbalances, or reduce high-
grade positions. Originally, these authorities were to lapse on
December 31, 2003.
Additionally both sections 1 and 2 are amended by the
addition of a new provision expressing the ``sense of the
Congress'' that the implementation of these sections is
intended to reshape the Office's workforce and not downsize the
Office. The aforementioned ``sense of the Congress'' language
is not intended to contradict Section 1 and Section 2 of Public
Law 106-303. Lastly, in regard to voluntary separation
payments, a provision has been added to make ineligible for
this benefit an employee who during the 36-month period
preceding separation performed services for which a student
loan repayment benefit was or is to be paid.
Section 3. Annual pay adjustments
Section 3 enables the Comptroller General to annually
adjust the pay rates for officers and employees of GAO without
having to adjust the GAO pay rates at the same time and to the
same extent as the annual statutory adjustments are made to the
General Schedule. Subsection (a) accomplishes this for all GAO
employees other than members of the Senior Executive Service
(SES) and Senior Level (SL) staff. Subsection (b) accomplishes
this for members of the SES and SL staff.
Section 3 enables the Comptroller General to annually
adjust the pay rates for GAO officers and employees whose
performance is at a satisfactory level, as defined in advance
by regulations, after reviewing various factors such as the
need to protect the purchasing power of employees of the Office
and pay disparities between GAO employees and private sector
employees in the local pay areas. In considering certain of
these factors related to economic data, the data will be
specifically related to positions at GAO. This section also
enables the Comptroller General to determine what other
factors, such as the overall agency performance and funding
levels, would be relevant to adjusting pay rates for GAO
officers and employees. Methodologies to support the
compensation of employees would be developed only after
consultation with the Employee Advisory Council and Managing
Directors, and employees would be given the opportunity for
notice and comment to any regulations promulgated to implement
this provision.
Section 3 is designed, among other reasons, to afford
additional flexibility to the Comptroller General to increase
the amount of merit or performance-based compensation that
could be provided to reward employees at different rates, based
on their knowledge, skills, position, and performance rather
than on the passage of time, the rate of inflation and
geographic location. The funds made available from the annual
adjustments that would not be paid to GAO staff who are rated
as performing at a below satisfactory level would be applied
towards performance-based compensation. Additionally, this
would be accomplished in certain years by increasing the
funding for performance-based compensation, the amounts of
which can vary by performance category. At the same time,
employees could receive less annual across the board base pay
increases than they would receive under the existing law.
However, for some employees increases in performance-based
compensation would make up for this loss.
Section 4. Pay retention
Section 4 deletes the requirement that GAO provide grade
and pay retention consistent with the statutory provisions in
subchapter VI of chapter 53 of title 5, United States Code. The
passage of this provision will enable employees who are demoted
due to a reduction-in-force, other adjustment-in-force,
reclassification or other specified reasons as determined by
the Comptroller General to be placed immediately in a lower
grade or band but their pay would not be reduced if it exceeds
the maximum rate of the new band or grade. However, these
employees would not be eligible for increases to their basic
pay as long as their basic pay is at or exceeds the maximum
rate of the band or grade into which they are placed. Under the
chapter 53 provisions, employees who suffer a loss of grade or
band due to, among other things, reduction-in-force procedures
or reclassification receive full statutory increases for 2
years and then receive 50 percent of the statutory pay
increases until the pay of their new position falls within the
range of pay for that position. Essentially, this antiquated
system allows employees for extended periods of time to
fundamentally be paid at a rate that exceeds the value of the
duties that they are performing. Such provisions are
inconsistent with the merit principle that there should be
equal pay for equal work. This section allows the Comptroller
General to immediately place employees in the band or grade
that is commensurate with the roles and responsibilities of
their positions. At the same time, the Comptroller General
could not reduce the basic pay of employees whose basic pay
exceeds the maximum rate of the grade or band in which the
employees are placed. The employees would retain this rate,
without receiving any increases to basic permanent pay, until
their basic pay was less than the maximum for their grade or
band. These employees, however, could be eligible for
performance awards. As with section 3, this provision would be
implemented only after consultation with the Employee Advisory
Council and Managing Directors and opportunity for notice and
comment by employees to any pay retention regulations.
Section 5. Relocation benefits
Section 5 gives the Comptroller General the ability to
provide employees who relocate but do not qualify for the
relocation benefits set forth in subchapter II of chapter 57 of
title 5, United States Code, some relief from the high costs of
relocating if the Comptroller General determines that the
transfer giving rise to such relocation is of sufficient
benefit or value to GAO to justify relief. Presently, employees
whose transfer is deemed to be in the interest of the
Government are reimbursed for most of their costs (i.e. travel
expenses, real estate expenses, moving expenses, and other
related expenses) while employees who are not eligible receive
no reimbursements even though their transfer may be of some
benefit or value to the agency. This provision allows the
Comptroller General to promulgate regulations permitting
employees who would otherwise not receive any reimbursement for
their relocation costs to receive a portion of such costs in
appropriate circumstances.
Section 6. Increased annual leave for key employees
Section 6 allows the Comptroller General to provide 160
hours of annual leave to key officers and employees, as defined
by regulations, who have less than 3 years of Federal service.
Under the annual leave provision in section 6303 of title 5,
United States Code, employees earn annual leave based on
Federal years of service. Until an employee has 3 years of
service, the employee earns 104 hours (13 days) of annual leave
in a year. Between 3 and 15 years, the employee earns 160 hours
(20 days) of annual leave in a year. By increasing the annual
leave that certain newly hired officers and employees may earn,
this provision is designed to attract and retain highly skilled
employees needed to best serve the Congress and the country.
Section 7. Executive exchange program
Section 7 establishes an executive exchange program for
GAO. Under this program employees from GAO may work in the
private sector, and private sector employees may work at GAO.
This section is based on the existing Information Technology
Exchange Program in chapter 37 of title 5, United States Code.
Section 7 makes all private sector participants subject to the
same laws that are applicable to the participants in the
Information Technology Exchange Program, relating to such
matter as conflict of interest and financial disclosure. For
the other aspects of the program, the Comptroller General will
promulgate regulations that are consistent with most of the
provisions in chapter 37. However, some of the provisions of
the Information Technology Exchange Program (ITEP) would not be
relevant to GAO's program because ITEP involves technology
exchanges, whereas GAO's exchange program will cover not only
those who work in the field of information technology but also
accountants, economists, lawyers, actuaries, and other highly
skilled professionals.
In this regard, GAO's regulations are required to be
consistent with the general provisions in section 3702
concerning agreements, termination and duration of assignments.
Nevertheless, the definitional provision at section 3701 does
not apply to GAO and GAO's regulations need not be consistent
with subsections (a), (e) and (f) of section 3702, as they
specifically concern matters that relate to a technology
exchange program. Section 3703 sets out the rules relative to
the assignment of employees to private sector organizations.
This subsection would apply to GAO's program, except for
subsection (e), which covers matters related to small business
concerns and is not relevant to the GAO program. Section 3704
sets out the rules relative to assignment of employees from
private sector organizations and would be applicable to the GAO
program, except for the provision regarding regulations
prescribed by the President. Under this section, private sector
participants would receive their salary and benefits from their
employers and GAO need not contribute to these costs. Section
3705, which concerns the Office of the Chief Technology Officer
of the District of Columbia, is not applicable to the GAO
program. In addition, the reporting requirements of the Office
of Personnel Management in section 3706 will not cover GAO.
The number of GAO employees participating in the program is
limited to no more than 15 at any one time. Prior to approving
the assignment of an employee to a private sector organization,
the Comptroller General must determine that the assignment is
an effective use of the Office's funds, taking into account the
best interests of the Office and the costs and benefits of
alternate methods to accomplish the same results and objects.
For private sector employees, there is a limit of 30
individuals who may participate at any one time. Lastly, the
program has a sunset provision that disallows the commencement
of assignments under the program 5 years after the enactment of
this provision.
Section 8. Redesignation
Section 8 of the bill changes the name of the General
Accounting Office to the Government Accountability Office to
more accurately reflect the current mission of GAO and assist
the agency in its recruiting and public communication efforts.
While the U.S. General Accounting Office may be reflective of
the agency's role in its initial decades of existence, it is
not reflective of the modern agency. The modern agency is
focused on improving the performance and assuring the
accountability of the federal government for the benefit of the
American people. Importantly, although the name has been
changed, the well-known acronym for the agency, ``GAO'',
remains the same.
Section 9. Performance management system
Section 9 amends section 732(d)(1) of title 31 by retaining
the provision that the GAO performance management system must
meet the requirements of section 4302 of title 5 and including
several additional practices, as defined in advance by
regulations, to assure an effective system. These practices
include, among other things, that there be a link between the
performance management system and agency's strategic plan,
adequate training for all employees in the performance
management system, and a means to ensure that adequate
resources are allocated for the performance management system.
Section 10. Consultation
Section 10 requires that before the implementation of any
changes authorized under the Act, the Comptroller General will
consult with interested groups or associations that represent
GAO employees.
Section 11. Reporting requirements
Section 11 adds reporting requirements. Annually, the
Comptroller General reports to the Congress under section
719(a) of title 31. For a 5-year period beginning on the date
of enactment of the Act, the annual report will summarize all
actions taken under section 2, 3, 4, 6, 7, 9, and 10 of the
Act. Additionally, this section requires specific information
to be included in the report for certain provisions, such as
the number of employees separating under section 2, receiving
pay retention under section 4, and engaging in the Executive
Exchange Program under section 7. Furthermore, the report must
describe certain actions with regard to the pay adjustments
under the Act including the methodology applied, the amount of
the annual pay adjustments, and any extraordinary economic
conditions or significant budget constraints that significantly
impacted on the determination of the adjustments. Even after
the 5-year period has expired, the Comptroller General must
include in the annual report a description of extraordinary
economic conditions or serious budget constraints if these
significantly impacted on the annual adjustments.
This section also requires a final report not later than 6
years after the enactment of the Act, which summarizes the
information included for the prior 5 years in the annual report
regarding this Act, makes recommendations for any changes to
sections 2, 3, 4, 6, 7, 9, and 10, and includes any assessment
of the GAO Personnel Appeals Board or interested groups
representing employees.
Section 12. Technical amendment
Section 12 is a technical amendment correcting a reference
in subsection 732(h)(3)(A) of title 31, so that the existing
term ``reduction force'' is changed to ``reduction in force''.
Section 13. Effective dates
Section 13 provides that the effective date of the Act will
be the date of passage except for sections 3 and 4 that concern
annual adjustments to the pay rates for GAO employees. These
provisions are effective for any pay adjustments on or after
October 1, 2005, and until then, with two exceptions, the
existing statutory provisions will be in effect. The first
exception gives the Comptroller General the authority to
prescribe regulations that would immediately preclude employees
who are not performing at a satisfactory level from receiving
the annual adjustment to the pay rates, instead of having to
wait until section 4 is effective. The second exception
authorizes the Comptroller General to prescribe regulations
that would enable him to give less than the full amount of the
adjustments under existing law, if the agency encounters
serious budget constraints or extraordinary economic
conditions. However, the Comptroller General may delay the
implementation of sections 3 and 4 for groups of employees if
he deems this appropriate.
Explanation of Amendments
The provisions of the substitute are explained in this
report.
Committee Consideration
On November 6, 2003, the Committee met in open session and
ordered reported favorably the bill, H.R. 2751, as amended, by
voice vote.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. This bill provides the U.S. General Accounting Office
with additional human capital flexibilities, make permanent the
voluntary early retirement and buyout authorities granted to
the GAO in Public Law 106-303, the GAO Personnel Flexibilities
Act, and change the name of the agency to the U.S. Government
Accountability Office. Because the GAO is a legislative branch
agency, the employment provisions of this bill apply to
legislative branch employees who are employed by GAO. This bill
does not apply to other legislative branch employees.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(2) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
Because this bill does not authorize funding, a statement
of general performance goals pursuant to clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives is not
required.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 2751. The constitutional authority to set the
terms and conditions of legislative branch employees and to
rename a legislative branch agency is part of the general
legislative authority granted to Congress under Article I.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement whether
the provisions of the reported include unfunded mandates. In
compliance with this requirement the Committee has received a
letter from the Congressional Budget Office included herein.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2751. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 2751 from the Director of
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 12, 2003.
Hon. Tom Davis,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2751, the GAO
Human Capital Reform Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
H.R. 2751--GAO Human Capital Reform Act of 2003
Summary: H.R. 2751 would authorize the General Accounting
Office (GAO) to modify its personnel and workforce practices to
allow greater flexibility in determining pay increases, pay
retention rules, and other compensation matters. The bill also
would permanently extend GAO's authority to offer separation
(buyout) payments and early retirement to employees who
voluntarily leave GAO. Finally, H.R. 2751 would rename GAO as
the Government Accountability Office.
GAO estimates that enacting H.R. 2751 would increase direct
spending for retirement annuities and related health benefits
by about $1 million in fiscal year 2004, by $19 million over
the 2004-2008 period, and by $40 million over the 2004-2013
period. Several provisions of the bill could affect GAO
employee compensation costs, but the net budgetary effect of
such provisions would depend on how GAO exercises its new
authorities and on whether future agency appropriations are
adjusted to reflect any savings or costs. Finally, we expect
that any additional discretionary costs associated with
changing the agency's name would not be significant.
H.R. 2751 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
impact of H.R. 2751 on direct spending is shown in the
following table. The costs of this legislation fall within
budget function 800 (general government).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated budget authority...... 1 3 5 5 5 5 4 4 4 4
Estimated outlays............... 1 3 5 5 5 5 4 4 4 4
----------------------------------------------------------------------------------------------------------------
Basis of estimate
Direct spending
H.R. 2751 would give GAO permanent authority to offer
retirement to employees who voluntarily leave the agency early.
GAO's existing buyout authority, which will expire on December
31, 2003, allows the agency to offer certain employees a lump
sum payment of up to $25,000 to voluntarily leave the agency.
In addition, certain qualified employees who leave (whether
they collect a separation payment or not) are entitled to
receive immediate retirement annuities earlier than they would
have otherwise. CBO estimates that extending this authority
would increase direct spending by $1 million in 2004, by $19
million over the 2004-2008 period, and by $40 million over the
2004-2013 period.
Based on information provided by GAO about use of its early
retirement authority over the past several years, CBO estimates
that each year about 35 agency employees would begin receiving
retirement benefits three years earlier than they would have
under current law. Inducing some employees to retire early
results in higher-than-expected benefits from the Civil Service
Retirement and Disability Fund (CSRDF). CBO estimates that the
additional retirement benefits would increase direct spending
by $1 million in 2004, by $16 million over the 2004-2008
period, and by $32 million over the 2004-2013 period.
Extending GAO's buyout and early retirement authority also
would increase direct spending for federal retiree health
benefits. Many employees who retire early would continue to be
eligible for coverage under the Federal Employees' Health
Benefits (FEHB) program. The government's share of the premium
for retirees is classified as mandatory spending. Because many
of those accepting the buyouts under the bill would have
retired later under current law, mandatory spending on FEHB
premiums would increase. CBO estimates these additional
benefits would increase direct spending by less than $500,000
in 2004, by $3 million over the 2004-2008 period, and by $8
million over the 2004-2013 period.
Spending subject to appropriation
The authorities provided by H.R. 2751 would allow GAO to
create a performance-based employee compensation system to
govern basic pay adjustments, pay retention for employees
affected by reductions in force, relocation reimbursements, and
annual leave accruals beginning in fiscal year 2006. (Under
existing law, GAO is required to follow personnel management
policies determined by the Office of Personnel Management.)
Implementing the new authorities that would be provided by the
bill could affect GAO's total costs of providing employee
compensation, but CBO cannot predict any cost or saving
associated with these new authorities, or the net effect of all
such changes on the federal budget. Ultimately, the net
budgetary effect of the proposed authorities would depend on
the features of the compensation system adopted by GAO and on
how the agency applies that new system to individual employees.
Moreover, any savings or costs would only be realized if the
agency's annual appropriations are adjusted accordingly.
Providing GAO with the option of providing voluntary
separation payments could also increase GAO's costs, but CBO
estimates that any new costs would average less than $500,000
annually over the 2004-2013 period. Section 2 of the bill would
allow GAO to offer certain employees payments of up to $25,000
to voluntarily leave the agency. The buyout program also
requires that GAO make a deposit amounting to 45 percent of
each buyout recipient's basic salary toward the CSRDF. Unlike
an increase in retirement benefits, these two payments would be
from the agency's discretionary budget and are thus subject to
appropriation. Since GAO's current buyout authority was first
authorized in October 2000, no one at the agency has received a
buyout payment. CBO therefore expects that relatively few
employees would receive a buyout payment over the next 10 years
and that the cost of any buyout payments and required deposits
toward the CSRDF would be negligible in any given year.
Intergovernmental and private-sector impact: H.R. 2751
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO cost estimate: On November 4, 2003, CBO
transmitted a cost estimate for S. 1522, the GAO Human Capital
Reform Act of 2003, as ordered reported on October 22, 2003, by
the Senate Committee on Governmental Affairs. S. 1522 and H.R.
2751 are very similar, and their estimated costs are the same.
Estimate prepared by: Federal Costs: Ellen Hays, Geoffrey
Gerhardt, and Deborah Reis. Impact on State, Local, and Tribal
Governments: Sarah Puro. Impact on the Private Sector: Selena
Caldera.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ACT OF OCTOBER 13, 2000
(Public Law 106-303)
AN ACT To make certain personnel flexibilities available with respect
to the General Accounting Office, and for other purposes.
SECTION 1. VOLUNTARY EARLY RETIREMENT AUTHORITY.
(a) Civil Service Retirement System.--Effective [for purposes
of the period beginning on the date of the enactment of this
Act and ending on December 31, 2003] October 13, 2000,
paragraph (2) of section 8336(d) of title 5, United States
Code, shall, with respect to officers and employees of the
General Accounting Office, be applied as if it had been amended
to read as follows:
``(2)(A) * * *
* * * * * * *
(b) Federal Employees' Retirement System.--Effective [for
purposes of the period beginning on the date of the enactment
of this Act and ending on December 31, 2003] October 13, 2000,
subparagraph (B) of section 8414(b)(1) of title 5, United
States Code, shall, with respect to officers and employees of
the General Accounting Office, be applied as if it had been
amended to read as follows:
``(B)(i) * * *
* * * * * * *
(e) Sense of Congress.--It is the sense of Congress that the
implementation of this section is intended to reshape the
General Accounting Office workforce and not downsize the
General Accounting Office workforce.
* * * * * * *
SEC. 2. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.
(a) In General.--Effective [for purposes of the period
beginning on the date of the enactment of this Act and ending
on December 31, 2003] October 13, 2000, the authority to
provide voluntary separation incentive payments shall be
available to the Comptroller General with respect to employees
of the General Accounting Office.
(b) Terms and Conditions.--The authority to provide voluntary
separation incentive payments under this section shall be
available in accordance with the provisions of subsections
(a)(2)-(e) of section 663 of the Treasury, Postal Service, and
General Government Appropriations Act, 1997, as contained in
Public Law 104-208 (5 U.S.C. 5597 note), except that--
(1) * * *
[(2) subsection (a)(2)(G) of such section shall be
applied by construing the citations therein to be
references to the appropriate authorities in connection
with employees of the General Accounting Office;]
(2) subsection (a)(2)(G) of such section shall be
applied--
(A) by construing the citations therein to be
references to the appropriate authorities in
connection with employees of the General
Accounting Office; and
(B) by deeming such subsection to be amended
by striking ``Code.'' and inserting ``Code, or
who, during the thirty-six month period
preceding the date of separation, performed
service for which a student loan repayment
benefit was or is to be paid under section 5379
of title 5, United States Code.'';
* * * * * * *
(g) Sense of Congress.--It is the sense of Congress that the
implementation of this section is intended to reshape the
General Accounting Office workforce and not downsize the
General Accounting Office workforce.
* * * * * * *
----------
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE I--GENERAL
* * * * * * *
CHAPTER 7--GENERAL ACCOUNTING OFFICE
SUBCHAPTER III--PERSONNEL
* * * * * * *
Sec. 731. General
(a) * * *
* * * * * * *
(f) The Comptroller General shall prescribe regulations under
which officers and employees of the Office may, in appropriate
circumstances, be reimbursed for any relocation expenses under
subchapter II of chapter 57 of title 5 for which they would not
otherwise be eligible, but only if the Comptroller General
determines that the transfer giving rise to such relocation is
of sufficient benefit or value to the Office to justify such
reimbursement.
(g) The Comptroller General shall prescribe regulations under
which key officers and employees of the Office who have less
than 3 years of service may accrue leave in accordance with
section 6303(a)(2) of title 5, in those circumstances in which
the Comptroller General has determined such increased annual
leave is appropriate for the recruitment or retention of such
officers and employees. Such regulations shall define key
officers and employees and set forth the factors in determining
which officers and employees should be allowed to accrue leave
in accordance with this subsection.
(h) The Comptroller General may by regulation establish an
executive exchange program under which officers and employees
of the Office may be assigned to private sector organizations,
and employees of private sector organizations may be assigned
to the Office, to further the institutional interests of the
Office or Congress, including for the purpose of providing
training to officers and employees of the Office. Regulations
to carry out any such program--
(1) shall include provisions (consistent with
sections 3702 through 3704 of title 5) as to matters
concerning--
(A) the duration and termination of
assignments;
(B) reimbursements; and
(C) status, entitlements, benefits, and
obligations of program participants;
(2) shall limit--
(A) the number of officers and employees who
are assigned to private sector organizations at
any one time to not more than 15; and
(B) the number of employees from private
sector organizations who are assigned to the
Office at any one time to not more than 30;
(3) shall require that an employee of a private
sector organization assigned to the Office may not have
access to any trade secrets or to any other nonpublic
information which is of commercial value to the private
sector organization from which such employee is
assigned;
(4) shall require that, before approving the
assignment of an officer or employee to a private
sector organization, the Comptroller General shall
determine that the assignment is an effective use of
the Office's funds, taking into account the best
interests of the Office and the costs and benefits of
alternative methods of achieving the same results and
objectives; and
(5) shall not allow any assignment under this
subsection to commence after the end of the 5-year
period beginning on the date of the enactment of this
subsection.
(i) An employee of a private sector organization assigned to
the Office under the executive exchange program shall be
considered to be an employee of the Office for purposes of--
(1) chapter 73 of title 5;
(2) sections 201, 203, 205, 207, 208, 209, 603, 606,
607, 643, 654, 1905, and 1913 of title 18;
(3) sections 1343, 1344, and 1349(b) of this title;
(4) chapter 171 of title 28 (commonly referred to as
the Federal ``Tort Claims Act'') and any other Federal
tort liability statute;
(5) the Ethics in Government Act of 1978 (5 U.S.C.
App.);
(6) section 1043 of the Internal Revenue Code of
1986; and
(7) section 27 of the Office of Federal Procurement
Policy Act (41 U.S.C. 423).
Sec. 732. Personnel management system
(a) * * *
(b) The personnel management system shall--
(1) * * *
* * * * * * *
(6) provide that the Comptroller General shall fix
the basic pay of officers and employees of the Office
not fixed by law, consistent with section 5301 of
[title 5.] title 5, except as provided under subsection
(c)(3) of this section and section 733(a)(3)(B) of this
title.
(c) Under the personnel management system--
(1) * * *
* * * * * * *
[(3) except as provided under section 733(a)(3)(B) of
this title or section 5349(a) of title 5, basic pay
rates of officers and employees of the Office shall be
adjusted at the same time and to the same extent as
basic pay rates of the General Schedule are adjusted;]
(3) except as provided under section 733(a)(3)(B) of
this title, basic rates of officers and employees of
the Office shall be adjusted annually to such extent as
determined by the Comptroller General, and in making
that determination the Comptroller General shall
consider--
(A) the principle that equal pay should be
provided for work of equal value within each
local pay area;
(B) the need to protect the purchasing power
of officers and employees of the Office, taking
into consideration the Consumer Price Index or
other appropriate indices;
(C) any existing pay disparities between
officers and employees of the Office and non-
Federal employees in each local pay area;
(D) the pay rates for the same levels of work
for officers and employees of the Office and
non-Federal employees in each local pay area;
(E) the appropriate distribution of agency
funds between annual adjustments under this
section and performance-based compensation; and
(F) such other criteria as the Comptroller
General considers appropriate, including, but
not limited to, the funding level for the
Office, amounts allocated for performance-based
compensation, and the extent to which the
Office is succeeding in fulfilling its mission
and accomplishing its strategic plan;
notwithstanding any other provision of this paragraph,
an adjustment under this paragraph shall not be applied
in the case of any officer or employee whose
performance is not at a satisfactory level, as
determined by the Comptroller General for purposes of
such adjustment;
* * * * * * *
[(5) officers and employees of the Office are
entitled to grade and basic pay retention consistent
with subchapter VI of chapter 53 of title 5.]
(5) the Comptroller General shall prescribe
regulations under which an officer or employee of the
Office shall be entitled to pay retention if, as a
result of any reduction-in-force or other workforce
adjustment procedure, position reclassification, or
other appropriate circumstances as determined by the
Comptroller General, such officer or employee is placed
in or holds a position in a lower grade or band with a
maximum rate of basic pay that is less than the rate of
basic pay payable to the officer or employee
immediately before the reduction in grade or band; such
regulations--
(A) shall provide that the officer or
employee shall be entitled to continue
receiving the rate of basic pay that was
payable to the officer or employee immediately
before the reduction in grade or band until
such time as the retained rate becomes less
than the maximum rate for the grade or band of
the position held by such officer or employee;
and
(B) shall include provisions relating to the
minimum period of time for which an officer or
employee must have served or for which the
position must have been classified at the
higher grade or band in order for pay retention
to apply, the events that terminate the right
to pay retention (apart from the one described
in subparagraph (A)), and exclusions based on
the nature of an appointment; in prescribing
regulations under this subparagraph, the
Comptroller General shall be guided by the
provisions of sections 5362 and 5363 of title
5.
(d) The personnel management system shall provide--
[(1) for a system to appraise the performance of
officers and employees of the General Accounting Office
that meets the requirements of section 4302 of title
5;]
(1) for a system to appraise the performance of
officers and employees of the General Accounting Office
that meets the requirements of section 4302 of title 5
and in addition includes--
(A) a link between the performance management
system and the agency's strategic plan;
(B) adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the performance
management system;
(C) a process for ensuring ongoing
performance feedback and dialogue between
supervisors, managers, and employees throughout
the appraisal period and setting timetables for
review;
(D) effective transparency and accountability
measures to ensure that the management of the
system is fair, credible, and equitable,
including appropriate independent
reasonableness, reviews, internal assessments,
and employee surveys; and
(E) a means to ensure that adequate agency
resources are allocated for the design,
implementation, and administration of the
performance management system;
* * * * * * *
(h)(1) * * *
* * * * * * *
(3)(A) Except as provided in subparagraph (B), an employee
may not be released, due to a [reduction force] reduction in
force, unless such employee is given written notice at least 60
days before such employee is so released. Such notice shall
include--
* * * * * * *
Sec. 733. Senior Executive Service
(a) The Comptroller General may establish a General
Accounting Officer Senior Executive Service--
(1) * * *
* * * * * * *
(3) providing rates of basic pay--
(A) * * *
[(B) adjusted as the same time and to the
same extent as rates in the Senior Executive
Service under section 5382 of title 5 are
adjusted;]
(B) adjusted annually by the Comptroller
General after taking into consideration the
factors listed under section 732(c)(3) of this
title, except that an adjustment under this
subparagraph shall not be applied in the case
of any officer or employee whose performance is
not at a satisfactory level, as determined by
the Comptroller General for purposes of such
adjustment;
* * * * * * *
ADDITIONAL VIEWS
In general, we believe that civil service reform is best
pursued on a government-wide basis, not an agency-by-agency
basis. A piecemeal approach has the effect of creating a hodge-
podge of personnel systems, which limits the mobility of
employees and increases the potential for unfair treatment.
Nevertheless, Comptroller General David M. Walker made a strong
case for why GAO should be granted the personnel flexibilities
in H.R. 2751. On that basis, we support the bill. We are
writing to highlight several provisions in the bill.
Section 3 gives the Comptroller General discretion over
annual pay raises for GAO employees. Mr. Walker has assured GAO
employees that anyone performing satisfactory work will receive
at least a cost of living adjustment. Mr. Walker also has
assured this Committee that he will provide annual reporting on
the size of pay raises given to minorities, women, and
veterans. (A copy of Mr. Walker's letter is attached.) In the
past, these groups have received lower appraisal ratings than
the employee population as a whole. Although we support the
flexibility that Mr. Walker has requested, we want all GAO
employees to know that we will be vigilant in monitoring the
use of this pay flexibility.
As originally drafted, Section 6 gave GAO the authority to
provide increased annual leave, based on other relevant work
experience, only to upper-level employees. At the subcommittee
markup, Representative Danny Davis offered an amendment, which
was adopted, to ensure that increased annual leave could be
offered to all GAO employees, thus ensuring that supervisors
and managers were not the sole beneficiaries of these
flexibilities.
Section 7 relates to employee exchanges with private sector
companies. In general, we are skeptical about the
appropriateness of using taxpayer dollars to pay for federal
employees to work for private sector companies. However, Mr.
Walker and his staff worked to modify this provision to address
our concerns. The number of GAO employees who could participate
in such exchanges was decreased from 30 to 15. The provision
was clarified to ensure that private sector employees will be
subject to federal ethics laws and will not have access to
trade secrets. Language was added to ensure that any exchanges
must be an effective use of GAO's resources. Finally, GAO's
authority to engage in such programs sunsets after five years.
At the subcommittee markup, Representative Danny Davis
offered an amendment, which was approved, to add a reporting
requirement to the bill. This provision (section 11) requires
GAO to submit annual reports to Congress, detailing its use of
the flexibilities in the bill. This reporting requirement is
necessary for Congress to fulfill its oversight
responsibilities.
In sum, the inclusion of the minority during the
consideration of this bill has made this a better bill and
demonstrates the benefits of a collaborative approach to
legislation.
Henry A. Waxman.
Edolphus Towns.
Paul E. Kanjorski.
Carolyn B. Maloney.
Elijah E. Cummings.
Dennis J. Kucinich.
Danny K. Davis.
Wm. Lacy Clay.
Diane E. Watson.
Stephen F. Lynch.
------
General Accounting Office,
Washington, DC, July 28, 2003.
Subject: GAO Human Capital Reform Act of 2003.
Hon. Jo Ann Davis,
Chairwoman,
Hon. Danny Davis,
Ranking Minority Member,
Subcommittee on Civil Service and Agency Reorganization, Committee on
Government Reform, House of Representatives.
At the July 23, 2003, markup of H.R. 2751, the ``GAO Human
Capital Reform Act of 2003'', by the Subcommittee on Civil
Service and Agency Organization, Ranking Minority Member Danny
Davis offered an amendment which would require GAO to submit
annual reports to the Congress, detailing its use of numerous
flexibilities provided in the bill. Although Representative
Davis had originally planned to require GAO to report
information on its annual pay adjustments with respect to sex,
race and veteran's status, he did not do so. Instead he
indicated that, based on assurances from me that I would be
willing to provide this information in a non-public document
annually to the Subcommittee, he would not offer the amendment.
This letter is to confirm that I will provide the data
privately to the Subcommittee for the period covered by the
amendment for reporting on the annual pay adjustments, i.e.,
during the five-year period beginning on the date of enactment
of the Act but after the close of fiscal year 2006. This
arrangement will assist in providing reasonable transparency
and appropriate accountability to the members of the
Subcommittee on the decisions I make with respect to the annual
pay adjustment provision of the bill but will not require that
this information be made a part of the public record.
As you know, we already provide this type information to
our democratically elected Employee Advisory Council (EAC). In
addition, we provide certain summary data to all GAO employees.
As a result, I have no problem providing this information to
the Subcommittee. At the same time, I am opposed to providing
such information in a public document since, in my view, it
would be excessive, potentially counter-productive and far
beyond any requirement imposed on other federal agencies. If
you or your staff have any questions about this issue, please
contact me at (202) 512-5500 or Managing Associate General
Counsel, Legal Services & Ethics, Joan M. Hollenbach at (202)
512-8404.
Thank you for your interest and efforts in connection with
the GAO Human Capital Reform Act of 2003. I look forward to
continuing to work together on issues of mutual interest and
concern in the future.
Sincerely, yours,
David M. Walker,
Comptroller General of the United States.