Federal Manager's Daily Report 
Friday, October 1, 2004
 
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In Today's Issue:
1. GAO Sees Opportunities to Use Contractors in Classification Appeals 
2. OMB Cracks Down on P2P File Sharing 
3. NTEU, IRS Agree to Mitigate RIF Impact 
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1. GAO Sees Opportunities to Use Contractors in Classification 
Appeals 
Federal agencies have opportunities to use private contractors 
"to conduct at least some of the activities involved in 
functions such as classification appeals and administrative 
investigations," the Government Accountability Office has 
said, in response to questions following a Senate hearing 
on progress in human capital management. 

It said contractors might conduct research or interviews 
in support of investigations, but that federal employees 
should conduct other functions such as final appeals 
determinations. 

The Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia Committee on 
Governmental Affairs, asked GAO where the line should "be 
drawn between what are and what aren't inherent government 
functions in human capital work."

GAO brought up an April 2002 report from the commercial 
activities panel noting the difficulty in nailing down a 
definition of "inherently governmental," even though it 
cited a general consensus that certain functions that 
should be performed by federal workers.

However, the panel, chaired by GAO, determined that federal 
employees should always conduct activities such as 
"establishing policy or regulations, enforcing these 
regulations, and adjudicating disputes, among other 
things."

Asked whether the term "alternative service delivery" was a 
euphemism for "contracting out," GAO replied that ASD can also 
refer to one federal agency using another, for functions such
as employee assistance programs, training and advisory 
services. 

It used as an example the Census Bureau's partnership and data 
services program that, "established partnerships with national, 
state, and local organizations to recruit census takers during 
Census 2000." 

GAO cited the National Academy of Public Administration's 
position on who should perform which human capital functions: 
"The final determination on selecting, hiring, promoting, 
rewarding, punishing, and removing employees must be done by 
federal employees. A line manager may exercise final 
determinations with human resources, in house or outsourced, 
serving as a consultant to the responsible official; overall 
human capital policy must be made by agency staff and reflect 
federal law and regulation as well as agency values and 
priorities; setting performance standards - agency managers 
must enact standards and make final judgment as to compliance; 
and, contract management and oversight - qualified and 
knowledgeable human capital professionals must be used to 
ensure that outsourced providers deliver high-quality service 
at a reasonable cost." GAO-04-1072R.

2. OMB Cracks Down on P2P File Sharing 
The Office of Management and Budget has issued a memo calling 
on agencies to update or put in place employee guidelines on 
peer-to-peer file sharing -- based on guidance developed by 
the CIO Council in 1999 -- by December 1, as well as train 
employees on personal use policies of government IT and begin 
reporting on P2P training in their annual Federal Information
Security Management Act reports. 

It said IT security or ethics training must encompass personal 
use policies and improper file sharing, and be consistent with 
OMB circular A-130, appendix III, paragraph 3-a-b, which 
states that employees must be "trained in how to fulfill 
their security responsibilities." 

The memo directs agencies to "implement security controls to
prevent and detect improper file sharing," and said, 
"operational controls detailing procedures for handling and 
distributing information and management controls outlining 
rules of behavior for the user must ensure the proper controls 
are in place to prevent and detect improper file sharing."
http://www.whitehouse.gov/omb/memoranda/fy04/m04-26.html

3. NTEU, IRS Agree to Mitigate RIF Impact 
The National Treasury Employees Union has reached an agreement 
with the Internal Revenue Service to mitigate the impact of 
the IRS's planned reductions of its modernization and IT 
services campus operations, end user equipment services, 
and enterprise operations. 

The agreement calls for "indirect buyouts to create vacancies 
in MITS that RIF-impacted employees may move into," as well 
as "the use of direct buyouts, early outs, and priority 
reassignment within MITS, along with priority reassignment 
of EUES and EOS employees back into the IRS's large and 
mid-size business and small business-self-employed divisions," 
said the union.

NTEU said it would continue to negotiate the procedures to be 
used for the buyouts, priority assignments, and outplacement 
services. 

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