Federal Register: May 14, 2004 (Volume 69, Number 94)
DOCID: FR Doc 04-10926
OFFICE OF MANAGEMENT AND BUDGET
Management and Budget Office
NOTICE: NOTICES
ACTION: Commercial activities performance (Circular A-76):
DOCUMENT ACTION: Update to Federal Pay Raise Assumptions and Inflation Factors Used in OMB Circular No. A76, ``Performance of Commercial
Activities.''
SUBJECT CATEGORY:
Performance of Commercial Activities
DATES: Effective date: These changes are effective immediately and shall apply to all OMB Circular A76 competitions in process where the government's inhouse cost estimate has not been publicly revealed before this date.
DOCUMENT SUMMARY:
OMB is updating the annual federal pay raise assumptions and inflation factors used for computing the government's inhouse personnel and nonpay costs in publicprivate competitions conducted pursuant to Office of Management and Budget (OMB) Circular A76. These annual pay raise assumptions and inflation factors are based on the President's Budget for Fiscal Year 2005.
SUMMARY:
Federal pay raise assumptions and inflation factors,
FOR FURTHER INFORMATION CONTACT
Mathew Blum, Office of Federal Procurement Policy (OFPP), NEOB, Room 9013, Office of Management and Budget, 725 17th Street, NW., Washington, DC 20503, Tel. No. 202395 4953.
Availability: Copies of OMB Circular A76 may be obtained on the
Internet at the OMB home page at http://www.whitehouse.gov/omb/circulars/index.html#numerical. Paper copies of the Circular may be obtained by
calling OFPP (tel: (202) 3957579).
Joshua B. Bolten,
Director.
Memorandum for the Heads of Executive Departments and Agencies
From: Joshua B. Bolten, Director.
Subject: Update of Annual Federal Pay Raise Assumptions and Certain Inflation Factors Used in OMB Circular A76, Performance of Commercial Activities.
This memorandum updates the annual federal pay raise assumptions and inflation factors used for computing the government's inhouse personnel and nonpay costs in publicprivate competitions conducted pursuant to Office of Management and Budget (OMB) Circular A76. These annual pay raise assumptions and inflation factors are based on the President's Budget for Fiscal Year 2005.
The nonpay inflation factors are for purposes of Circular A76
competitions only. They reflect the generic nonpay inflation
assumptions used to develop the fiscal year 2005 budget baseline
estimates required by law. The law requires that a specific
inflation factor (GDP FY/FY chained price index) be used for this
purpose. These inflation factors should not be viewed as estimates
of expected inflation rates for major longterm procurement items or
as an estimate of inflation for any particular agency's nonpay purchases mix.
Federal Pay Raise Assumptions*
Civilian Military
Effective date (percent) (percent)
January 2004.................................... 4.1 4.15
January 2005.................................... 1.5 3.5
* Pay raise assumptions have not been established for pay raises
subsequent to January 2005. For January 2006 and beyond, the projected
percentage change in the Employment Cost Index (ECI), 4 percent,
should be used to estimate inhouse personnel costs for A76
competitions. In future updates to A76 guidance, as pay policy for
years subsequent to 2005 is established, these pay raise assumptions will be revised.
[[Page 26901]]
NonPay Categories (Supplies and Equipment, etc.)
(percent)
FY 2004..................................................... 1.3
FY 2005..................................................... 1.3
FY 2006..................................................... 1.5
FY 2007..................................................... 1.7
FY 2008..................................................... 1.9
FY 2009..................................................... *2.0
* Any subsequent years included in the period of performance and cost
comparison shall continue to use the 2.0% figure, until otherwise revised by OMB.
The pay rates (including geographic pay differentials) that are in
effect for 2004 shall be included for the development of inhouse
personnel costs. The pay raise factors provided for 2005 and beyond
shall be applied to all employees, with no assumption being made as to
how they will be distributed between possible locality and base pay increases.
[FR Doc. 0410926 Filed 51304; 8:45 am]
BILLING CODE 311001P