Federal Manager's Daily Report:
Monday, October 11, 2004

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In This Week's Issue
1. Reform Bill Would Order Management Changes
2. FAA Managers, Supervisors Denied Back Pay 
3. GAO: Pass-Fail Performance Systems Meaningless  
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1. Reform Bill Would Order Management Changes
A civil service benefits bill passed by the House (S-129) 
would among other provisions require agencies to align their 
training with performance plans and strategic goals, 
establish a comprehensive management succession program, 
and provide special training to managers who are dealing 
with unacceptable performances. 

The measure, touted as the major civil service reform bill 
before Congress this year, earlier was passed in a slightly 
different version by the Senate. 

S. 129 would require each agency to appoint or designate a 
training officer, who would be responsible for developing, 
coordinating and administering agency training. The 
individual could be the same person as the Chief Human 
Capital Officer.

In addition, the bill streamlines critical pay authority for 
positions that are difficult to fill and enhances annual leave 
benefits for those hired into the government in mid-career. 
It also grants compensatory time off for time spent traveling 
outside duty hours; that time off could not be converted to 
money.

2. FAA Managers, Supervisors Denied Back Pay 
The Federal Circuit Court Of Appeals has denied back pay to 
a group of supervisors and managers at the Federal 
Aviation Administration's Albuquerque air traffic control 
center.

The supervisors and managers receive compensation partly 
based on the volume and complexity of air traffic over 
Albuquerque, for which FAA assigns an ATC classification, in 
this case ATC 10, assigned in 1998. 

The appellants argued it really should be ATC 11, and they 
wanted the difference between pay and benefits between the 
two, even though FAA has not reclassified the Albuquerque 
center. 

As supervisors, they are not union members, but nonetheless 
claimed to be third-party beneficiaries to a collective 
bargaining agreement as well as a "memorandum of 
understanding," reached in 1999 between FAA and the National 
Air Traffic Control Association. 

The appellants alleged that the CBA and MOU obligated the 
FAA to reclassify the Albuquerque Center as an ATC-11 
facility when the air traffic increased in 1999, and that 
FAA breached the CBA and MOU by refusing to do so.  

A federal claims court initially blocked the effort, "for 
failure to state a claim upon which relief can be granted," 
a decision upheld by the appeals court.

According to the decision, the appellants brought suit under 
the Tucker Act, which grants the federal claims court 
jurisdiction over actions that are "founded either upon 
the Constitution, or any act of Congress or any regulation 
of an executive department, or upon any express or implied 
contract with the United States, or for liquidated or 
un-liquidated damages in cases not sounding in tort" - 28 
U.S.C. 1491, 2000. 

Under the Tucker Act, the federal claims court's jurisdiction 
is, "limited to actual, presently due money damages from the 
United States," and requires litigants, "to identify a 
substantive right for money damages against the United 
States separate from the Tucker Act itself."

The FAA managers argued that their "substantive right for 
money damages" was established because FAA breached the CBA 
and MOU, but the court found they were not covered by those 
agreements. 

As such, they "do not have a contract with the United States 
and cannot base a claim for money damages against the United 
States on a contract to which they are not a party," 
according to the decision. 

3. GAO: Pass-Fail Performance Systems Meaningless  
A pass-fail performance system does not provide enough 
meaningful information "to recognize and reward top 
performance, help everyone attain their maximum potential, 
and deal with poor performers," the Government Accountability 
Office has said, in response to questions following a Senate 
hearing on progress in human capital management. 

Senator George Voinovich, R-Ohio, has asked GAO if, "instead 
of allowing each agency to create its own performance 
management system, should the federal government return to 
a uniform multi-level performance evaluation system?"

GAO said the Office of Personnel Management recognizes that 
agencies need to take different approaches to performance 
management depending on their specific situations, but noted 
that under the July 2004 OPM interim final regulations, 
"agencies must have, at least four, but no more than five 
rating levels, among other things, in designing their new 
performance-based senior executive performance management 
systems." 

Only after both OPM and the Office of Management and Budget 
agree that agency "performance managements systems, as 
designed and applied, make meaningful distinctions based 
on relative performance," may agencies raise the senior 
executive pay cap, said GAO.

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