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Article 31 Contracting Out
Posted On: Oct 29, 2013

Article 31

Contracting Out

Section 1. General

a. The Department acknowledges its responsibility to adhere to law and

applicable Government-wide regulations regarding the use of experts,

consultants and contractors’ employees.

b. Upon request of a specific contract relating to contractors, the Department

shall provide to Local 12 within thirty (30) days a copy of the contract, with

proprietary or privacy act information redacted.

c. It is the policy of the Department that a bargaining unit employee will be

supervised by supervisory personnel of the Department and not by

personnel of a contractor.

d. At the request of the Union, Management will meet to explain the rationale

for the FAIR Act classification decisions.

Section 2. A-76 Competitive Sourcing/Commercial Activity Process

The parties have a mutual interest in ensuring constructive employee involvement

in implementing the Commercial Activities (A-76) studies initiated by the

Department. Therefore:

a. The Department shall notify the Union within five (5) workdays of its

decision to use an A-76 competition to determine if government personnel

should continue to perform work or contract out work that is currently

performed by bargaining unit employees. The notice shall identify the

affected units and the functions, positions and grade levels of bargaining

unit employees affected. The Union shall be notified of all relevant data and

information as they become available, including schedules, milestone charts,

invitations for bid or requests for proposals, and performance work

statements (PWS).

b. The Union may appoint a bargaining unit employee on each PWS and Most

Efficient Organization (MEO) Team, consistent with OMB Circular A-76

guidelines. An employee may serve on the PWS Team or the MEO Team,

but not both. Members of the PWS and MEO Teams will be provided

relevant training. In accordance with Article 45, the Union representatives

on the PWS and MEO Teams may request a reasonable amount of official

time in connection with Team activities.

c. The organizational entity holding an A-76 competition shall hold regular

meetings to discuss the status of the competition with all affected

employees, including bargaining unit employees.

d. Management will notify the Union of its decision to contract out work that is

currently performed by bargaining unit employees. Such notice will include

information regarding any feasibility or cost studies that have been

performed, authorized staffing levels, number of position vacancies, their

grade and description, indirect costs and, where applicable and available,

that information required by OMB Circular A-76.

e. Upon receipt of notification of Management’s decision to contract out work

that is currently performed by bargaining unit employees, the Union may

request bargaining in accordance with Article 41.

f. The Department shall provide Local 12 a copy of the performance work

statement and contract solicitation document when they are released by the

contracting officer.

Section 3. Personnel Considerations for Displaced Employees

a. Provisions contained in Article 32 also cover displaced employees. Displaced

employees are entitled to the training referenced in Article 21 but is not

limited it. Displaced employees also will receive counseling, to include a

discussion concerning the value of individual development.

b. Displaced employees are those identified for release from their competitive

level by an Agency, in accordance with 5 CFR Part 351 and Chapter 35 of

Title 5, United States Code, as a direct result of a decision to convert to

contract (contracting out) or accept the Agency’s Most Efficient Organization


c. Federal employees displaced by a decision to convert to contract or public

reimbursable source performance have the Right-of-First-Refusal for jobs for

which they are qualified that are created by the award of conversion.

(1) A standard clause should be included in A-76 cost comparison

solicitations notifying potential contractors of this requirement (see

Federal Acquisition Regulations [FAR] 52.207-3). The Right-of-First-

Refusal is afforded to all Federal employees displaced by the decision

to convert to contract performance.

(2) Human Resource Officers should work with the contracting officer

and employees to implement these provisions.

d. Agencies should exert maximum efforts to find available positions for

Federal employees displaced by conversion decisions, including:

(1) Giving priority consideration for available positions within the Agency;

(2) Establishing a Reemployment Priority List and an effective placement


(3) Paying reasonable costs for training and relocation that contribute

directly to placement; and

(4) Registration in the Career Transition Assistance Program (CTAP) and

the Interagency Career Transition Assistance Program (ICTAP).

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