April 27, 2000
Office of Management and Budget, Executive Office of the President
Issuance of Transmittal Memorandum No. 21, amending OMB Circular
No. A-76, "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 2001.
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
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.
Copies of the OMB Circular A-76, its Revised Supplemental Handbook
and currently applicable Transmittal Memoranda may be obtained at
the OMB Homepage on the Internet. The online address (URL) is /OMB/circulars/index.html#numerical.
Sylvia M. Mathews
No. A-76 (Revised)
Transmittal Memorandum No. 21
TO THE HEADS OF EXECUTIVE
DEPARTMENTS AND AGENCIES
of Commercial Activities
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 2001.
The non-pay inflation
factors are for purposes of A-76 cost comparison determinations
only. They reflect the generic non-pay inflation assumptions used
to develop the FY 2001 Budget baseline estimates required by law.
The law requires that a specific inflation factor (FY/FY G.D.P.
chain price index) be used for this purpose. These inflation factors
should not be viewed as estimates of expected inflation rates
for specific major long-term procurement items or as an estimate
of inflation for any particular agency's non-pay purchases mix.
Pay Raise Assumptions
|Non-Pay Categories (Supplies and Equipment, etc.)
The pay rate (including
geographic pay differentials) that are in effect for 2000 shall
be included for the development of in-house personnel costs. The
pay raise factors provided for 2001 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 provided
the Revised Supplemental Handbook dated March 27, 1996 (Federal
Register, April 1, 1996, pages 14338-14346) and remains in effect.
Transmittal Memoranda No. 16, 17 and 18, which provided previous
A-76 related Federal pay raise and inflation factor assumptions
are canceled. Transmittal Memorandum No. 19, to the extent that
it provided last year's A-76 related Federal pay raise and inflation
factor assumptions, is canceled. The standard retirement cost
factors for the weighted average CSRS\FERS pension and Federal
retiree health cost numbers and the post-retirement health costs
also provided by Transmittal Memorandum No. 19, remain in effect.
Transmittal 20, with implemented the Federal Activities Inventory
Reform (FAIR) Act, remains in effect. Current A-76 guidance can
be accessed at OMB's Homepage
Sylvia M. Mathews