EDFMTC Module 1 Section 2 Extract - Participant Guide PDF

PARTICIPANT GUIDE EDFMTC Module 1: Resource Management Environment Manpower Management  MODULE 2 | MANPOWER MANAGEMENT MANPOWER MANAGEMENT Module Objective  Explore the role of financial managemen...

PARTICIPANT GUIDE EDFMTC Module 1: Resource Management Environment Manpower Management  MODULE 2 | MANPOWER MANAGEMENT MANPOWER MANAGEMENT Module Objective  Explore the role of financial management in planning, estimating, and mobilizing manpower in the DoD This module encompasses two main areas: defense manpower management and defense manpower operations and ethics. Defense manpower management refers to the planning, organizing, and directing of personnel to meet the operational needs of the military. Defense manpower operations and ethics covers the ethical considerations and responsibilities of managing personnel in the military, such as promoting diversity, providing equal opportunities, and exhibiting leadership qualities. By exploring these two areas, you will gain a better understanding of how to manage manpower while upholding ethical standards. Lessons 1. Defense Manpower Management 2. Defense Manpower Operations and Ethics © Management Concepts. See inside front cover for additional details. 99  MODULE 2 | MANPOWER MANAGEMENT LESSON 1 DEFENSE MANPOWER MANAGEMENT Lesson Objectives After completing this lesson, you will be able to: 2.1.1 Describe the relationship between Department of Defense (DoD) manpower financial budgets and manpower structure 2.1.2 Summarize mobilization processes for military and civilian personnel 2.1.3 Distinguish between outsourcing and privatization Defense manpower management is about matching the right people with the right skills to the right places at the right times. Managing manpower involves a wide range of activities, including structure and allocation planning, estimating, and mobilization and crisis management. 1.1 INTRODUCTION TO DEFENSE MANPOWER MANAGEMENT ORGANIZATION OF THE DEPARTMENT OF DEFENSE The mission of the Department of Defense (DoD) is to provide a lethal joint force to defend the security of our country and sustain American influence abroad. Three military departments (Army, Navy, and Air Force) and approximately 20 Defense agencies report to the Secretary of Defense. The five DoD armed services (Army, Navy, Air Force, Marine Corps, and Space Force) are subordinate to their military departments. The military departments are responsible for recruiting, training, and equipping their forces, but operational control of those forces is assigned to one of the unified combatant commands. © Management Concepts. See inside front cover for additional details. 100  MODULE 2 | MANPOWER MANAGEMENT By statute, the United States Coast Guard is considered a military service and a branch of the armed forces of the United States at all times. During peacetime, the Coast Guard is part of the Department of Homeland Security, and during times of war, the Coast Guard operates under the Navy. 1.1.1 Defense Manpower Management Defined Defense manpower management, as used in financial management, refers to the processes of determining manpower requirements for budgetary purposes and reporting manpower strengths to the Office of Management and Budget (OMB). 1.1.2 Terminology and Concepts Manpower management addresses all types of manpower, including military, civilian, active and reserve components, and contractors. Terms and concepts that are essential to the planning, programming, budgeting, and execution of manpower include:  Actual strength. The number of personnel in—or projected to be in—an organization or account at a specified point in time.  Assigned strength. Actual strength of an entire service, not necessarily equal to combined unit actual strengths because individuals may be assigned but not joined.  Authorized strength. The total strength authorized by Congress (for internal service applications only). Authorized strength may be used synonymously with documented strength.  Average strength. The arithmetic mean strength for a specific time span. The average strength for one year is equivalent to work years.  DoD civilian workforce. U.S. citizens or foreign nationals hired directly or indirectly to work for DoD, paid from appropriated or non-appropriated funds under permanent or temporary appointment. This includes employees filling full-time, part-time, intermittent, or on-call positions. Specifically excluded are all government contractor employees.  End strength. Strength at the end of a fiscal year is synonymous with end-year strength. Single point strengths for other points in time must be specified, such as end first-quarter strength.  Future Years Defense Program (FYDP). The official report (database) that summarizes the resources provided to DoD. The FYDP identifies funding for each appropriation, manpower authorization and program, and selected types of unit or equipment authorizations by resource management packages called program elements.  Force structure. The totality of units in a DoD component.  Manpower programming. The process of compiling and projecting future manpower requirements; documenting these requirements; integrating them into the overall planning, programming, and budgeting process; and translating them into a form that provides a basis for personnel procurement, training, and assignment.  Peacetime strength. The authorized and programmed strength at the end of the fiscal year for active forces, the Selected Reserve (to include drilling reservists, military technicians, and active Guard and Reserve), and appropriated-fund civilian employees in the FYDP. 1.2 MANPOWER STRUCTURE AND ALLOCATION PLANNING The Under Secretary of Defense (Personnel and Readiness) issues guidance annually for the services to use in preparation and administration of their military and civilian manpower programs. © Management Concepts. See inside front cover for additional details. 101  LESSON 1 | DEFENSE MANPOWER MANAGEMENT Within the strengths assigned by the Secretary of Defense, each service programs manpower using the following guidelines:  The first priority for programming manpower is major combatant commands' needs based on the Joint Chiefs of Staff guidance  Remaining forces are manned, within approved total strengths, to support combat forces  Civilian requirements are based on planning and workload factors at the minimum necessary to accomplish the required tasks  Manpower requirements for an area that requires both military and civilian personnel are projected as a total  Civilian personnel can be used only in positions that do not require military incumbents by reasons of law, training, security, discipline, rotation, or combat readiness  Indigenous personnel are utilized to the maximum extent practical consistent with security and readiness. For example, indirect hires are indigenous personnel hired by the foreign government to support the mission of the DoD. MANPOWER STRUCTURE AND ALLOCATION PLANNING 102 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT Refer to Digital Guide Review the video AMPA's Manpower Management in the Digital Guide and be prepared to discuss with your class. 1.2.1 Authorization Title 10 of the United States Code requires that the end strength of the U.S. military be authorized annually by Congress. DoD requests end strength levels as part of the President’s Budget and the National Defense Authorization Act (NDAA) either approves or adjusts the requested levels. The table Comparison of FY 2023 Actual, FY 2024 Authorized, and FY 2025 Requested Active Component End Strength shows the levels requested and approved by component.1 TABLE: COMPARISON OF FY 2023 ACTUAL, FY 2024 AUTHORIZED, AND FY 2025 REQUESTED ACTIVE COMPONENT END STRENGTH Service FY23 FY24 FY 24 FY 25 Difference Actual President's Authorized President's Between FY24 Budget (P.L. 118-31) Budget Authorized Request Request and FY25 President’s Budget Request Army 453,551 452,000 445,000 442,300 -2,700 Navy 332,322 347,000 337,800 332,300 -5,500 Marine 172,577 172,300 172,300 172,300 - Corps Air Force 318,698 324,700 320,000 320,000 - Space 8,879 9,400 9,400 9,800 +400 Force Total 1,286,027 1,305,400 1,284,500 1,276,700 -7,800 1.2.2 Global Force Management (GFM) Within the total authorized and filled end strength levels, the Joint Chiefs of Staff lead the process for allocating military manpower, based on the national defense strategy and resource constraints. Global force management (GFM) considers readiness and availability of the force, demand from combatant commanders, and the capacity and capabilities for logistics and transportation. 1 National Defense Authorization Act, 2023 © Management Concepts. See inside front cover for additional details. 103  LESSON 1 | DEFENSE MANPOWER MANAGEMENT GFM applies three distinct lenses to force allocation: preferred forces during planning activities, contingency sourcing based on a specific contingency requirement, and execution sourcing based on all available assets, including headquarters-assigned positions at the Combatant Commands. All assignments are documented in the Global Force Management Allocation Plan, which is approved by the Secretary of Defense. The GFM process is governed by Chairman of the Joint Chiefs of Staff Guide 3130, dated April 12, 2023.. Discussion  What do you think are the main challenges facing DoD in terms of manpower structure and allocation planning? 1.2.2.1 Relationship to PPBE THE RELATIONSHIP BETWEEN THE FEDERAL BUDGET PROCESS AND PPBE Manpower resources are managed through all phases of the Planning, Programming, Budgeting, and Execution (PPBE) process and documented in the FYDP database. During planning, the Office of the Under Secretary of Defense (Policy) with participation from the Joint Staff develop long-range scenarios to assess the capabilities and capacities needed for potential missions, which, in turn, inform the programming activities of the services. During the programming phase, all military personnel are allocated to specific programs or functions to support analysis of total costs per capability. The Program Objective Memorandums (POMs) from each military department reflect the allocation of their total authorized force levels. In budgeting, military end strength funding is requested in the military personnel appropriations. Civilian end strength is budgeted within each relevant appropriation, generally operation and maintenance or research, development, test, and evaluation appropriations. 104 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT 1.3 MANPOWER ESTIMATING Personnel budget estimates are prepared in terms of full-time equivalent (FTE) employment, as required in OMB Circular A-11. FTE employment is the total number of regular straight-time hours (compensable hours, not including overtime or holiday hours) worked by an employee divided by the number of compensable hours applicable to each fiscal year. Annual leave, sick leave, compensatory time off and other approved leave categories are considered hours worked for purposes of defining FTE employment that is reported in the personnel summary. Common full-time equivalent terminology includes: I did not have a question on calculating these  Full-time permanent (FTP). A position normally filled on a permanent basis and having a regular schedule. Example: assume 100 positions.  Other than full-time permanent (OTFTP). All positions other than full-time permanent, including temporary, part-time, and intermittent.  Turnover rate. Number of employees who left positions during a past year divided by the number of positions. Example: Assume 10 personnel left from our 100 positions: turnover rate.  Fill rate. The average number of days between an employee leaving a position and the position being filled divided by the workdays in a year.  Lapse rate. Percentage of the year a vacancy occurs (turnover rate) times the fill rate. Example: lapse rate.  Number of positions to budget. Assume 2.5% of the 100 positions are vacant during the year, therefore positions to budget. Example: Fill Rate Assume it takes 65 workdays from an employee leaving until the position is filled and there are 2,080 hours (260 workdays) in the year: fill rate. 96.2% your expected salary Discussion  If you have 500 positions in your organization and 20% are expected to turn over next year with a 50-day turnaround, how many positions should you budget? 1.3.1 Budget Formulation for Manpower The budgets for civilian manpower are calculated on the basis of average end strength, full-time equivalent positions, average grade calculations and pay raise guidance provided by the Office of the Under Secretary of Defense (Comptroller) or OUSD(C). A series of budget exhibits are focused on the budget estimates for civilian personnel, including civilian manpower changes, costs by object class, further breakdown of pay and benefits for direct and reimbursable positions, the hiring phasing plans, and overseas personnel. Volume 2A, Chapter 3, of the Department of Defense Financial Management Regulation (DoD FMR) articulates the requirements for civilian personnel. © Management Concepts. See inside front cover for additional details. 105  LESSON 1 | DEFENSE MANPOWER MANAGEMENT OMB Circular A-11 provides the basic requirements for submission of military and civilian manpower estimates to be included in the president’s budget request.  Section 32 provides details on budgeting for personnel compensation, benefits, and related costs, such as the initial pay raise assumptions, guidance on absorbing within-grade increases, and budgeting for awards  Section 85, Estimating Employment Levels and the Employment Summary, provides details on estimating military manpower on the basis of average strength, estimating both direct and reimbursable civilian positions, and submitting civilian data on an FTE basis  Schedule Q is the required exhibit that generates the manpower details for the president’s budget The budgets for military manpower are based on average end strength across the fiscal year and are organized by officer, enlisted, and cadets, as well as component (active, reserve, National Guard). Volume 2A, Chapter 2, of the DoD FMR provides specific guidance on budgeting for military manpower, including all of the budget exhibits required for submission to OUSD(C) and the justification material in support of the President’s Budget. The intent in budget formulation for manpower is to:  Budget for the most effective mix of civilians, contractors, temporary personnel, or other alternatives to meet the mission  Accurately price the estimated end strength and FTEs  Incorporate pay raises and other guidance changes  Consider all options for manpower needs to preclude unnecessary growth and manage average grade to preclude grade creep  Restrain manpower of headquarters organizations consistent with congressional direction 1.3.2 Department of Defense Separation Incentives Section 9902(f) of Title 5 of the United States Code (U.S.C.) requires that buyout payments be paid from amounts available for the employee’s pay, and generally, be fully repaid if the employee rejoins the federal government within five years of separation. This authority may be used to reduce the number of personnel employed by DoD or to restructure the workforce to meet mission objectives without reducing the overall number of personnel. The latter point is particularly significant since initial buyout legislation required the elimination of a full- time equivalent position for every position vacated through a buyout. That is no longer the case. The buyout program is known as the Voluntary Separation Incentive Pay (VSIP) program, and the program for early retirement is known as Voluntary Early Retirement Authority (VERA). An individual can be subject to either or both of these programs at the time of separation from active service. DoD is permitted no more than 25,000 buyout separations per year under this authority, but this limitation does not include any buyout separations subject to base realignment and closure action or for non-appropriated fund employees. Per 5 U.S.C. 9902(f), buyout payments (the lesser of $40,000 or the amount of the employee’s severance pay) are required to be paid from amounts available for the employee’s pay, and generally, to be fully repaid if the employee rejoins the federal government within five years of separation. The buyout payment limit is in effect until at least September 30, 2021. 106 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT Tip This has expired, and the current DoD limit is back to $25,000. The Armed Services Committees have actively considered raising the amount again to $40,000, which would need to be part of a future NDAA. An employee accepting a buyout cannot be re-employed by DoD for 12 months after receiving the incentive pay unless the Secretary of Defense approves an exception. 1.4 MOBILIZATION AND CRISIS MANAGEMENT ACTIVITIES The ability to transition from peacetime manning levels to wartime manpower demands and to provide filler and replacement personnel over the course of a conflict are critical to successful resolution of a crisis. DoD Manpower Utilization Policy During mobilization or wartime, the DoD manpower utilization policy is based on:  Terminating or deferring activities not essential to the war effort in order to permit the reallocation of personnel to higher priority tasks  Assigning military personnel only to those jobs that contribute to the war unless: — Military incumbency is required by law — Possessing military-unique skills or experience is essential for successful performance of required duties — Military authority or discipline is requisite to the position — Alternative manpower is not available Mobilization During mobilization, Defense leaders have to consider the current makeup of civilian workforce and the impact of mobilization on the depth of that workforce. Plans for the civilian workforce during contingencies and emergencies shall include assessments and alternatives for:  The loss of civilian employees who are reservists or retired from military service who may be recalled to active duty  The loss of civilian employees who may be drafted into military service In addition, an expansion of military members through mobilization may require an increase in the civilian workforce strength. Installation planning for civilian workforce expansion and recruitment during contingencies and emergencies shall include consideration of:  The availability and use of DoD civilian retirees  The placement of military retirees not normally subject to military recall (those over age 60 or prevented from recall by serious disability)  The borrowing of employees from other federal agencies  The use of contractors  The use of overtime and temporary employees © Management Concepts. See inside front cover for additional details. 107  LESSON 1 | DEFENSE MANPOWER MANAGEMENT DoD Total Force Policy Under the DoD Total Force Policy, many military functions not required during peacetime are assigned to the reserve components. The execution of contingency operations may require:  The mobilization of all or part of the reserve components to bring the force structure to the levels required for a particular conflict  The augmentation of active and activated reserve units by non-unit reservists, recalled retirees, volunteers, and draftees Some civilians who perform wartime military functions in peacetime will remain as emergency- essential (E-E) employees, but most will be replaced in theater by active-duty military personnel or recalled reservists. The military services and Defense agencies plan for military force buildup, deployment, employment, and sustainment on the assumption that an adequate civilian workforce will be available. Increases in peacetime work levels will require increased productivity, increased hours of work, and/or increased numbers of civilian employees. Master Mobilization Plan (MMP) Mobilization is the process of assembling, organizing, and using manpower and material resources in preparation for war or other emergencies. The mobilization process can help deter war as well as enhance warfighting capability. The DoD MMP prescribes mobilization policies, authorities, and responsibilities within DoD. 1.4.1 Mobilization Assessment Process Mobilization assessments are critical throughout PPBE. Many requirements represent continuing mobilization needs in deployed locations and will be deliberated as part of the programming phase of PPBE. Documenting the manpower requirements and getting them validated through the service’s operational chain of command is critical for resourcing in the programming phase. A key question from the validating body will be the analysis undertaken to develop the requirements and whether all types of manpower resources were fully considered. During execution, any unfulfilled requirements or newly emerging requirements will need to be fully assessed prior to requesting the assignment of forces. DoD Directive (DODD) 1100.4, Guidance for Manpower Management, outlines the decisions that need to be considered during the mobilization assessment process:2  Determine manpower requirements: — Validated requirements are developed using approved scenarios and time-phased deployments — Analysis must document a range of options for force readiness, deployment capability, and sustainability 2 DoD 2005 108 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT  Incorporate manpower requirements into PPBE. Validated requirements must be identified and programmed across the FYDP.  Manage manpower during mobilization or crisis: — Optimize all types of wartime manpower: military, including active duty, reserve component, and retirees; civilians; and contractors — Defer activities not essential to a national emergency or military contingency to allow reallocation of the personnel to higher priority tasks — Assign military personnel only to those tasks that directly contribute to the military effort, except positions that require military incumbency for reasons of law or esprit de corps; when alternate manpower is not available; or, when military-unique knowledge and skills are required for successful performance of the duties 1.4.2 Presidential Authority to Activate Reserve Forces Per 10 U.S.C. 12304, the president has the authority to order to active duty Selected Reserve and Ready Reserves:  When the president determines that it is necessary to augment the active forces for any operational mission or emergency involving the use or threatened use of a weapon of mass destruction, terrorist attack, or a threatened terrorist attack in the United States, the president may authorize the Secretary of Defense and the Secretary of Homeland Security (for the Coast Guard), without the consent of Congress, to order to active duty (other than for training) for not more than 365 days: — Any unit of the Selected Reserve — Any member of the Individual Ready Reserve  No more than 200,000 members of the Selected Reserve and the Individual Ready Reserve may be on active duty under this section at any one time, of which no more than 30,000 may be members of the Individual Ready Reserve Discussion  What is the role of DoD when the president decides to activate reserve forces? 1.4.3 Civilian Employees during Crisis Situations The following definitions apply to civilians during crisis situations based on DODD 1404.10, DoD Civilian Expeditionary Workforce:3  Crisis situation. A civil insurrection, civil war, terrorism, wartime, or hostile condition that threatens physical harm or imminent danger to the health or well-being of the E-E civilian employee.  Emergency essential (E-E). A position-based designation to support the success of combat operations or the availability of combat-essential systems in accordance with 10 U.S.C. 1580(e) and will be designated as key in accordance with paragraph 4.d.(5). A person occupying an E-E position could be deployed to a crisis area. 3 DoD 2009 © Management Concepts. See inside front cover for additional details. 109  LESSON 1 | DEFENSE MANPOWER MANAGEMENT  Non-combat essential (NCE). A position-based designation to support the expeditionary requirements in other than combat or combat support situations and will be designated as key employees in accordance with paragraph 4.d.(5).  Capability-based volunteer (CBV). An employee who may be asked to volunteer for deployment, remain behind after other civilians have evacuated, or backfill other DoD civilians who have deployed to meet expeditionary requirements in order to ensure that critical expeditionary requirements that may fall outside or within the scope of an individual’s position are fulfilled.  Capability-based former employee volunteer corps. A collective group of former (including retired) DoD civilian employees who have agreed to be listed in a database as individuals who may be interested in returning to federal service as a time-limited employee to serve expeditionary requirements or who can backfill for those serving other expeditionary requirements. When these individuals are re-employed, they shall be deemed CBV employees.  Key employees. DoD civilian employees in positions designated as E-E and/or NCE will be designated key in accordance with DODD 1200.7. DoD Directive-Type Memorandum (DTM) 17-004, dated January 25, 2017, implements guidance for the expeditionary civilian workforce and integrates civilians into the global force management process. With publication of the DTM, DODD 1404.10 was canceled. Tip Remember, due to the dynamic nature of the financial management environment, the CDFM exam may contain questions about materials that have been canceled. You are still responsible to be familiar with this information if you plan to take the CDFM exam. DTM 17-004 includes the following key terms:  Capability-based volunteer. An employee who may be asked to volunteer for deployment.  Deployment. Either temporary reassignment or the requirement to stay in place to support contingency operations.  Emergency essential. A position-based designation to support successful combat operations or to support the availability of combat-essential systems, consistent with 10 U.S.C. 1580.  Non-combat essential. A position-based designation to support expeditionary requirements in other than combat or combat support situations. Per 10 U.S.C. 1580 emergency-essential positions are those that meet all of the following criteria:  The employee’s duty is to provide immediate and continuing support for combat operations or to support maintenance and repair of combat essential systems of the armed forces  The duty is necessary in a combat zone after the evacuation of nonessential personnel  It is impracticable to convert the position to military because it must be performed without interruption DTM 17-004 addresses the use of civilians integrated with the military in combat or expeditionary requirements as part of the global force management and allocation process. In addition, some civilians are required to continue to perform their duties during a crisis other than combat 110 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT operations. Continuity of operations is critical for DoD and across the federal agencies. Within DoD, planning for continuity of operations is governed by DoD Instruction (DODI) 3020.42 and addresses mission essential functions (MEFs). MEFs could be determined by considerations such as legal obligations, command and control, contractual obligations, or critical support to others. Individual positions may or may not be determined as mission essential since the determination could be dependent on the specific circumstances of that crisis. For example, when the government faces a lapse of appropriations, or furlough, situation, the positions considered mission essential may depend, in part, on the length of time of the forecasted furlough. Discussion  Are you in an emergency essential position?  What are some examples of emergency essential positions or personnel? © Management Concepts. See inside front cover for additional details. 111  LESSON 1 | DEFENSE MANPOWER MANAGEMENT 1.4.4 EXERCISE: CRISIS MANAGEMENT Directions 1. Review your assigned scenario with your group. 2. Answer the questions and determine a recommended force mix for your scenario. 3. Be prepared to discuss with the class. Scenario 1 The United States is planning to deploy a new theater missile defense system to protect military members and infrastructure in an active combat environment. The system has been in the inventory for two years but always maintained by the original manufacturer and has not yet been used in a hostile, combat zone. It requires specialized tooling to maintain the unique telemetry system, requiring maintenance and testing after 36 hours of continuous use. Two trained specialists are required for maintenance on a full-time basis. How will you plan to meet that requirement? What will you consider in your evaluation? Scenario 2 The United States is increasing its rotational force presence in a friendly but fragile deployed environment. The government is interested in maintaining a ready combat capability to support countering neighboring threats and helping to build the capabilities of the host nation. Part of the U.S. strategy includes building additional shared military infrastructure for use of both the host nation and U.S. forces and the DoD requires a resource management team on the ground to identify requirements, build budget requests, and execute the program through local contractors. How will you plan to meet the requirement? What will you consider in your evaluation? Scenario 3 The DoD has acquired a 99-year lease for an existing military installation in a friendly but unstable country. The DoD plans to locate a combat battalion as well as air assets at the installation on a rotational basis. There is a likelihood that the base may become an active combat zone if ongoing, deterrence activities are not effective. You are building the manpower plan for manning of the installation and have determined that there needs to be a permanent presence to operate the facility and support the rotational forces. How will you plan to meet the requirement? What do you need to consider for your mix of personnel? 112 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT Questions 1. What tasks can be done by civilians or contractors rather than military? 2. What functions would need to be performed? 3. Which functions would be performed by rotational units (i.e., what can they bring with them?) 4. For those functions recommended for civilians or contractors, will there be an increased military requirement for security? Or will it present an unacceptable risk? 5. What manning will need a permanent authorization and which requirements can be filled with temporary, rotational forces? 6. What is the timing for the requirement within the PPBE timeframe? © Management Concepts. See inside front cover for additional details. 113  MODULE 2 | MANPOWER MANAGEMENT LESSON 2 DEFENSE MANPOWER OPERATIONS AND ETHICS Lesson Objectives After completing this lesson, you will be able to: 2.2.1 Recognize the role of OMB Circular A-76 in implementing the Federal Activities Inventory Reform Act of 1998 2.2.2 Describe the key elements of OMB Circular A-76 as it relates to the Most Efficient Organization (MEO) 2.2.3 Recognize and use the terms defined in the Commercial Activities Program 2.2.4 Describe key government ethical standards Manpower operations and ethics are important elements for the overall management of personnel within an organization. These elements ensure that the organization is effective and ethical, and that all personnel are treated fairly and equitably. Whether work is outsourced to contractors or conducted in-house, it is important to work to achieve the highest standards for efficiency and ethics. 2.1 EFFICIENCY OF GOVERNMENT OPERATIONS Efficiency in government operations is a legislative mandate and responsibility across the federal government. The consideration of whether efforts should be performed by in-house personnel or contractors is complex. OMB Circular A-76 provides comprehensive guidance to federal agencies on the performance of commercial activities. 2.1.1 Outsourcing and Privatization One of the tools available to DoD to identify opportunities for additional efficiencies is the pursuit of outsourcing or privatization. Two concepts related to commercial activities are:  Outsourcing. Under outsourcing, a government entity remains fully responsible for the provision of affected services and maintains control over management decisions while another entity operates the function or performs the service. This approach includes contracting out the granting of franchises to private firms and the use of volunteers to deliver public services. An example of contracting out services is military dining facilities where the government (military) remains responsible for the dining facilities services, but they are operated by contractor personnel.  Privatization. The term privatization has generally been defined as any process aimed at shifting functions and responsibilities, in whole or in part, from the government to the private sector. Essentially, the government ceases to perform the operation and becomes a customer of the provider. Examples of privatization include initiatives such as privatization of family housing and privatization of utilities. © Management Concepts. See inside front cover for additional details. 114  MODULE 2 | MANPOWER MANAGEMENT As part of the POM each year, military departments in particular consider any opportunities to pursue outsourcing, insourcing, or privatization to achieve additional efficiencies that they can re- apply to readiness or investment needs for the warfighters. 2.1.2 Federal Activities Inventory Reform (FAIR) Act of 1998 The Federal Activities Inventory Reform (FAIR) Act requires an annual inventory of commercial activities and inherently governmental activities for each position in the federal government, with the exception of military personnel, foreign nationals, and depot maintenance activities in the Department of Defense. The lists are made public after they have been reviewed by OMB. The lists are the first step in determining positions that could be subject to competition. Public Availability of Lists PUBLIC AVAILABILITY OF LISTS There are two main steps to make the list publicly available: 1  Publication. Upon completion of the OMB review and consultation regarding a list of an executive agency: — The head of the executive agency shall promptly transmit a copy of the list to Congress and make the list available to the public — The Director of OMB shall promptly publish a notice that the list is available to the public in the Federal Register  Changes. If the list changes after the publication of the notice as a result of the resolution of challenge, the head of the executive agency shall promptly: — Make each such change available to the public and transmit a copy of the change to Congress — Publish a notice that the change is available to the public in the Federal Register 1 Federal Activities Inventory Reform Act 1998 © Management Concepts. See inside front cover for additional details. 115  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS Competition Required Within a reasonable amount of time after the date on which a notice of the public availability of a list is published, the head of the executive agency concerned shall review the activities on the list. Each time the head of the executive agency considers contracting with a private-sector source for the performance of such an activity, the head shall use a competitive process to select the source (except as may otherwise be provided in a law other than this act, an executive order, regulations, or any executive branch circular setting forth requirements or guidance that is issued by competent executive authority).2 Realistic and Fair Standard Competitions For the purpose of determining whether to contract with a source in the private sector for the performance of an executive agency activity on the list on the basis of a comparison of the costs of procuring services from such a source with the costs of performing that activity by the executive agency, the head shall ensure that all costs (including the costs of quality assurance, technical monitoring of the performance of such function, liability insurance, employee retirement and disability benefits, and all other overhead costs) are considered and that the costs considered are realistic and fair.3 Although the Federal Workforce Restructuring Act (FWRA), which expired on September 30, 1999, placed ceilings on executive branch civilian employment, agencies should not convert the work of their employees to contractors unless they first undertake standard competitions that demonstrate that such a conversion is of financial advantage to the government. In addition, agencies should ensure that reductions in accordance with the FWRA are not disproportionately made in the areas of students or employees with disabilities and their aides. 2.1.2.1 Annual Lists of Government Activities Not Inherently Governmental Section 2 of the FAIR Act specifies the process to be followed to identify activities that are not inherently governmental and establishes a fair system of competition for the activities. 2 Federal Activities Inventory Reform Act 1998 3 Federal Activities Inventory Reform Act 1998 116 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT Federal Activities Inventory Reform Act of 1998, Section 24 (a) Not later than the end of the third quarter of each fiscal year, the head of each executive agency shall submit to the Director of the Office of Management and Budget a list of activities performed by Federal Government sources for the executive agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. The entry for an activity on the list shall include the following: (1) The fiscal year for which the activity first appeared on a list prepared under this section. (2) The number of full-time employees (or its equivalent) that are necessary for the performance of the activity by a Federal Government source. (3) The name of a Federal Government employee responsible for the activity from whom additional information about the activity may be obtained. (b) The Director of the Office of Management and Budget shall review the executive agency’s list for a fiscal year and consult with the head of the executive agency regarding the content of the final list for that fiscal year. 2.1.3 OMB Circular A-76 Guidance and DODI 4100.33 Tip Remember that DODI 4100.33 is canceled, but this content may still appear in the CDFM exam. OMB Circular A-76 classifies activities in two categories:5  Commercial activity. A commercial activity is the process resulting in a product or service that is or could be obtained from a private sector source. Agency missions may be accomplished through commercial facilities and resources, government facilities and resources, or mixes thereof, depending upon the product, service, type of mission, and equipment required.  Inherently governmental activity. An inherently governmental activity is one that is so intimately related to the public interest as to mandate performance by federal employees. Activities that meet these criteria are not in competition with commercial sources, are not generally available from commercial sources, and are not subject to OMB Circular A-76. Inherently governmental functions normally fall into two categories:  The act of governing. The discretionary exercise of government authority. Examples include management of government programs requiring value judgments, as in direction of the national defense; management and direction of the armed services; activities performed exclusively by military personnel who are subject to deployment in a combat, combat support, or combat 4 Federal Activities Inventory Reform Act 1998 5 OMB 2003 © Management Concepts. See inside front cover for additional details. 117  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS service support role; regulation of the use of space, oceans, navigable rivers, and other natural resources; and regulation of industry and commerce, including food and drugs.  Monetary transactions and entitlements. Examples include tax collection and revenue disbursements, control of the Treasury accounts and money supply, and the administration of public trusts. Other inherently governmental functions include:  The direct conduct of criminal investigations  The control of prosecutions and performance of adjudicatory functions (other than those relating to arbitration or other methods of alternative dispute resolution)  The command of military forces, especially the leadership of military personnel who are members of the combat, combat support, or combat service support role  The conduct of foreign relations and the determination of foreign policy  The determination of agency policy, such as determining the content and application of regulations, among other things  The determination of federal program priorities or budget requests  The direction and control of federal employees  The direction and control of intelligence and counterintelligence operations  The selection or non-selection of individuals for federal government employment  The approval of position descriptions and performance standards for federal employees  The determination of what government property is to be disposed of and on what terms (although an agency may give contractors authority to dispose of property at prices within specified ranges and subject to other reasonable conditions deemed appropriate by the agency)  In federal procurement activities with respect to prime contracts: — The determination of what supplies or services are to be acquired by the government, although an agency may give contractors authority to acquire supplies at prices within specified ranges and subject to other reasonable conditions deemed appropriate by the agency — The participation as a voting member on any source selection boards — The approval of any contractual documents, to include documents defining requirements, incentive plans, and evaluation criteria — The awarding of contracts — The administration of contracts, including ordering changes in contract performance or contract quantities, taking action based on evaluations of contractor performance, and accepting or rejecting contractor products or services — The termination of contracts — The determination of whether contract costs are reasonable, allocable, and allowable 118 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT KEY ELEMENTS OF OMB CIRCULAR A-76 Key elements of OMB Circular A-76 include:6  Conversion to contract. The changeover of an activity from government performance to performance under contract by a commercial source.  Conversion to in-house. The changeover of an activity from performance under contract to government performance.  Commercial source. A business or other nonfederal activity located in the United States, its territories and possessions, the District of Columbia, or the Commonwealth of Puerto Rico, which provides a commercial product or service.  Cost comparison. The process of developing an estimate of the cost of government performance of a commercial activity and comparing it, in accordance with the requirements of the Supplement, to the cost to the government for contract performance of the activity.  Most Efficient Operation (MEO). The government’s in-house organization to perform a commercial activity. It may include a mix of federal employees and contract support. It is the basis for all government costs entered on the Cost Comparison Form. The MEO is the product of the Management Plan and is based upon the performance work statement (PWS).  Performance work statement (PWS). A statement of the technical, functional, and performance characteristics of the work to be performed. Identifies essential functions to be performed and determines performance factors, including the location of the work, the units of work, the quantity of work units, and the quality and timeliness of the work units. It serves as the scope of work and is the basis for all costs entered on the Cost Comparison Form. Performance Work Statement (PWS) A PWS states the technical, functional, and performance characteristics of the work to be performed and serves as a scope of work for making cost comparisons. The PWS generally 6 OMB 2003 © Management Concepts. See inside front cover for additional details. 119  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS includes reasonable performance standards that can be used to ensure a comparable level of performance for both government and contractor and a common basis for evaluation. Employees should be encouraged to participate in preparing or reviewing the PWS. If a CA provides critical or sensitive services, the PWS shall include sufficient in-house organization and commercial sources to prepare a plan for expansion in emergency situations. 2.1.3.1 OMB Circular A-76, Performance of Commercial Activities OMB Circular A-76, Performance of Commercial Activities, establishes federal policy regarding the performance of commercial activities and implements the statutory requirements of the FAIR Act of 1998. The supplement to Circular A-76 sets forth procedures for determining whether commercial activities should be performed under contract with commercial sources or in-house using government facilities and personnel.7 OMB Circular A-76 is designed to empower federal managers to make sound and justifiable business decisions. It is not designed to simply contract out; rather, it is designed to:  Balance the interests of the parties to a make or buy cost comparison  Provide a level playing field in a public and private sector competition  Encourage competition and choice in the management and performance of commercial activities. The U.S. government's policy is to:  Achieve economy and enhance productivity. Competition enhances quality, economy, and productivity. Whenever commercial-sector performance of a government-operated commercial activity is permissible, in accordance with OMB Circular A-76 and its supplement, comparison of the cost of contracting and the cost of in-house performance shall be performed to determine who will do the work. When conducting standard competitions, agencies must ensure that all costs are considered and that these costs are realistic and fair.  Retain governmental functions in-house. Certain functions are inherently governmental in nature, being so intimately related to the public interest as to mandate performance only by federal employees. These functions are not in competition with the commercial sector; therefore, these functions shall be performed by government employees.  Rely on the commercial sector. The federal government shall rely on commercially available sources to provide commercial products and services. In accordance with the provisions of Circular A-76 and its supplement, the government shall not start or carry on any activity to provide a commercial product or service if the product or service can be procured more economically from a commercial source. Reliable Cost and Performance Information Reliable cost and performance information is crucial to the effective management of government operations and to the conduct of competitions between public or private-sector offerors. A number of initiatives to generate cost and performance information include:  The Chief Financial Officers (CFO) Act of 1990 includes, among the functions of CFOs, “the development and reporting of cost information” and “the systematic measurement of 7 OMB 2003 120 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT performance.”8 This includes performance by in-house, contract, or Interservice Support Agreement (ISSA) resources.  The Government Performance and Results Act (GPRA) of 1993 mandates performance measurement by federal agencies  In 1995, the Federal Accounting Standards Advisory Board recommended standards for managerial cost accounting, which were approved by the Director of OMB, the Secretary of the Treasury, and the Comptroller General. These standards were issued as Statement of Federal Financial Accounting Standards Number 4, Managerial Cost Accounting Standards for the Federal Government. The Supplement to OMB A-76 relies on the managerial cost accounting and performance standards established in support of the CFO Act, GPRA, and the Federal Accounting Standards, as they are developed and implemented. Cost and performance information developed for standard competitions required by the circular and this supplement should be drawn from the database established by these standards and adjusted as appropriate. Commercial Activities (Circular A-76 and DODI 4100.33) Promoting the use of commercial activities (CA) is one approach to improving the efficiency of government. Circular A-76 establishes federal policy regarding the performance of a CA. The supplement establishes the procedures for determining whether a CA should be performed under contract with commercial sources or in-house using government facilities or personnel. DODI 4100.33, Commercial Activities Program Procedures, contains DoD procedures for CA in the United States, its territories and possessions, the District of Columbia, and the commonwealth of Puerto Rico. Management Study A management study is performed to analyze completely the method of operation necessary to establish the most efficient or cost-effective in-house organization (MEO) needed to accomplish the requirements in the PWS. The MEO must reflect only approved resources for which the CA has been authorized. DODI 4100.33 provided additional details on the CA management study. Cost Comparisons A cost comparison involves developing an estimate of the cost of government performance of a CA and comparing it, in accordance with the requirements of the supplement, to the government’s cost for contract performance of the activity. Commercial bids must be at least ten percent below in- house personnel-related cost. If performance of a CA by DoD personnel cannot be justified under national defense, non-availability of commercial source, or patient care criteria, then a full-cost comparison shall be conducted to determine if performance by DoD employees is justified on the basis of lower cost. Length of the Process The time period for a standard competition is 12 months, extendable to 18 months with approval. If the competition is conducted under streamlined procedures, the time limit is 90 days, extendable 8 Chief Financial Officers Act 1990 © Management Concepts. See inside front cover for additional details. 121  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS another 45 days with approval. The streamlined process may be used if the competition involves 65 full-time equivalent employees or fewer. Under the streamlined process, the 10% factor is not applicable. Official A-76 Announcements and Notifications After the official announcement of a Circular A-76 cost comparison, the maximum time to convert to an MEO is 24 months for single functions and 48 months for multiple functions. DODI 4100.33 required the following notifications:9  Congressional notification. DoD components shall notify Congress of the intention to do a cost comparison involving 46 or more DoD civilian personnel. The DoD component shall notify the Under Secretary of Defense for Personnel and Readiness of any such intent at least five working days before the congressional notification. The cost-comparison process begins on the date of congressional notification  DoD employee notification. DoD components shall consult with DoD civilian employees who will be affected by the cost comparison. 2.1.4 Circular A-76 Today For several years, Congress has imposed a moratorium on public-private competitions under Circular A-76 or any other regulation. DoD is subject to a governmentwide moratorium, most recently imposed by the FY 2020 Financial Services and General Government Appropriations Act. DoD is further restricted by Public Law 111- 84, Section 325, which requires a report and certification prior to any DoD public-private competitions. Both of these statutes are temporary in nature, and the moratorium could be lifted at any time. The moratorium does not, however, apply to competitions under Circular A-76 where the work is currently being done by the private sector and the competition could potentially bring the work in- house. Thus, private-public competitions, sometimes known as reverse A-76s, are still authorized. Discussion  Do you think there is value in conducting private public competitions? Why or why not? 9 DoD 1985 122 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT 2.2 ETHICS Poll A federal employee has been offered a highly paid consulting job with a company that contracts with their agency. What should they do? o Accept the job, as it is not related to their work as a federal employee o Decline the job to avoid any conflict of interest o Accept the job and disclose the potential conflict of interest to their supervisor Poll A federal employee has been offered tickets to a sporting event by a company that does business with their agency. What should they do? o Accept the tickets, as they are a minor item of nominal value o Decline the tickets to avoid the appearance of impropriety o Accept the tickets and disclose the gift to their supervisor Poll A coworker has given a federal employee a gift for their birthday. What should they do? o Accept the gift and express their gratitude o Decline the gift, as it may be seen as an attempt to influence their official duties o Accept the gift and report it to their supervisor Poll A federal employee has been invited to speak at a professional society meeting and has been offered an honorarium for their participation. What should they do? o Accept the honorarium, as it is a form of compensation for their expertise o Decline the honorarium, as it may be seen as a conflict of interest o Accept the honorarium and seek approval from their ethics office A critical part of resource management is understanding ethical standards. Executive branch (DoD) employees hold their positions as a public trust and American citizens have a right to expect that all employees will place loyalty to the Constitution, laws, and ethical principles above private gain. Employees fulfill that trust by adhering to general principles of ethical conduct as well as specific © Management Concepts. See inside front cover for additional details. 123  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS ethical standards. DoD implements the ethics provisions of the United States Code and Title 5 of the Code of Federal Regulations (CFR), section 2635, through the Joint Ethics Regulation, DoD 5500.7-R. The Joint Ethics Regulations governs the actions of DoD members. Fourteen general principles that broadly define the obligations of public service are laid out in 5 CFR 2635.101. Two core concepts underlie these 14 principles:  Employees shall not use public office for private gain  Employees shall act impartially and not give preferential treatment to a private organization or individual In addition, employees must strive to avoid any action that would create the appearance that they are violating the law or ethical standards. By observing these general principles, employees help to ensure that citizens have complete confidence in the integrity of government operations and programs. 2.2.1 Gifts from Outside Sources Executive branch employees are subject to restrictions on the gifts that they may accept from sources outside the government. Generally, they may not accept gifts that are given because of their official position or that come from certain interested sources (prohibited sources). Prohibited sources include persons (or an organization made up of such persons) who:  Seek official action by the employee’s agency  Do or seek to do business with the employee’s agency  Are regulated by the employee’s agency  Have interests that may be substantially affected by performance or non-performance of the employee’s official duties Exceptions to the ban on gifts from outside sources would allow the acceptance of gifts:  Where the value of the gift is $20 or less (not to exceed $50 annually)  Where the gift is based solely on a family relationship or personal friendship  Where the gift is based on an outside business or employment relationship  Where the gift is in connection with certain political activities Refer to Digital Guide Review the learning point Prohibited Sources and consider the key question. Employees may accept gifts of free attendance at certain widely attended gatherings provided that there has been a determination that attendance is in the interest of the agency. Invitations from non-sponsors of the event may be accepted provided that certain additional conditions are met. There are also exceptions for discounts, awards and honorary degrees, certain social events, meals, refreshments, and entertainment in foreign countries. These exceptions are subject to some limitations on their use. For example, an employee can never solicit or coerce the offering of a gift. 124 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT Nor can an employee use exceptions to accept gifts on such a frequent basis that a reasonable person would believe that the employee was using public office for private gain. Some other things are not treated as gifts and may be accepted without any limitations. Modest refreshments (such as coffee and donuts), greeting cards, plaques and other items of little intrinsic value, rewards and prizes open to the general public, and pension benefits from a former employer are just a few examples. If an employee has received a gift that cannot be accepted, the employee may return the gift or pay its market value. If the gift is perishable and it is not practical to return it, the gift may, with approval, be given to charity or shared in the office. 2.2.2 Gifts between Employees Executive branch employees may not make a gift to an official superior, nor can an employee accept a gift from another employee who receives less pay, except in certain circumstances or on certain occasions. On the other hand, there are no restrictions on gifts from superiors to subordinates. On an occasional basis, including occasions when gifts are traditionally given or exchanged, the following individual gifts to a supervisor are permitted:  Gifts other than cash that are valued at no more than $10  Food and refreshments shared in the office among employees  Personal hospitality in the employee’s home that is the same as that customarily provided to personal friends  Gifts given in connection with the receipt of personal hospitality that is customary to the occasion  Transferred leave provided that it is not to an immediate superior On certain special infrequent occasions, a gift may be given that is appropriate to the occasion. These occasions include:  Events of personal significance such as marriage, illness, or the birth or adoption of a child  Occasions that terminate the subordinate–official superior relationship such as retirement, resignation, or transfer  Employees may solicit or contribute, on a strictly voluntary basis, nominal amounts for a group gift to an official superior on special infrequent occasions and occasionally, for items such as food and refreshments, to be shared among employees at the office. Regardless of the number of DoD employees contributing to a gift or gifts on these occasions, a DoD employee may not accept a gift or gifts from a donating group if the market value exceeds an aggregate of $300 and if the DoD employee knows or has reason to know that any member of the donating group is their subordinate. The $10 limitation per subordinate still applies. © Management Concepts. See inside front cover for additional details. 125  LESSON 2 | DEFENSE MANPOWER OPERATIONS AND ETHICS 2.2.3 Conflicting Financial Interests Executive branch employees are prohibited by 18 U.S.C. 208(a) from participating personally and substantially in a particular matter that will affect the financial interests of:  The employee  The employee’s spouse or minor child  The employee’s general partner  An organization in which the employee serves as an officer, director, trustee, general partner, or employee  A person with whom the employee is negotiating for or has an arrangement concerning prospective employment To deal with a potential conflict of interest, the employee may choose:  Recusal. The employee may simply not participate in the matter that would pose the conflict.  Waiver. The employee may obtain a waiver from the agency.  Divestiture. The employee may divest or sell off the conflicting interest.  Resignation. The employee may resign from the conflicting position. Which remedy is appropriate will depend upon the particular circumstances. Agencies may, by supplemental regulation, prohibit or restrict the holding of certain financial interests by all agency employees or groups of employees, and a few extend such restrictions to the employee’s spouse and minor children. 2.2.4 Seeking Other Employment Executive branch employees may not participate in any particular government matter that will affect the financial interests of a person or entity with which they are seeking employment. An employee is considered to be seeking employment if:  The employee is engaged in actual negotiations for employment  A potential employer has contacted the employee about possible employment and the employee makes a response other than rejection  The employee has contacted a prospective employer about possible employment An employee is considered to no longer be seeking employment if:  Either the employee or the prospective employer rejects the possibility of employment and all discussions of possible employment have ended  Two months have elapsed since the employee’s dispatch of an unsolicited resume and the employee has received no expression of interest from the prospective employer In some cases, the employee may be authorized by an agency official to participate in particular matters from which they would otherwise have to be disqualified due to their job search. If a search firm or other intermediary is involved, the employee is not disqualified unless the intermediary identifies the prospective employer to the employee. 126 © Management Concepts. See inside front cover for additional details.  MODULE 2 | MANPOWER MANAGEMENT 2.2.5 Outside Activities Executive branch employees are subject to a number of limitations regarding the outside activities in which they may be involved. An employee may not have outside employment or be involved in any outside activity that conflicts with the official duties of the employee's position. An activity conflicts with official duties if:  It is prohibited by statute or by the regulations of the employee’s agency  The activity would require the employee to be disqualified from matters so central to the performance of the employee’s official duties as to materially impair the employee’s ability to carry out those duties Employees of some agencies may be required by their agency’s own supplemental conduct regulations to obtain prior approval before engaging in certain outside employment or activities. Employees generally may not be paid for outside teaching, speaking, and writing if these activities relate to the employee’s official duties. However, there is an exception that would allow an employee to be paid for teaching certain courses at accredited educational institutions. An employee may not use their official title or position (except as part of a biography or for identification as the author of an article with an appropriate disclaimer) to promote a book, seminar, course, program, or similar undertaking. Employees may engage in fundraising in a personal capacity, subject to several restrictions. An employee cannot:  Solicit funds from subordinates  Solicit funds from persons who have interests that may be affected by the employee’s agency, such as those who are regulated by, seeking official action from, or doing business with the agency  Use or permit the use of the employee’s official title, position, or authority to promote the fundraising effort Refer to Digital Guide Complete the Knowledge Check: Manpower Management in the Digital Guide. Action Planning Refer to the Action Plan and record ideas to implement from this module. © Management Concepts. See inside front cover for additional details. 127 Glossary of Acronyms  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT RESOURCE B GLOSSARY OF ACRONYMS EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT TABLE: GLOSSARY OF ACRONYMS Acronym Full Term ACAT Acquisition category ACE American Council on Education ACH Automated Clearing House AcSEC Accounting Standards Executive Committee ACWP Actual cost of work performed ADA Americans with Disabilities Act, Antideficiency Act ADM Acquisition Decision Memorandum ADS Automated disbursing system AFB Air Force base AFIS American Forces Information Services AFR Agency Financial Report AFRICOM Africa Command AICPA American Institute of Certified Public Accountants AIMD Accounting and Information Management Division AIS Automated Information System ANSI/EIA American National Standards Institute/Electronics Industry Association AoA Analysis of Alternatives AOR Accumulated operating result © Management Concepts. See inside front cover for additional details. 175  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term APB Acquisition program baseline APF Appropriation fund APP Annual Performance Plan APR Annual Performance Report APUC Average procurement unit cost ASMC American Society of Military Comptrollers ATM Automated teller machine BA Budget authority BCWP Budgeted cost of work performed BCWS Budgeted cost of work scheduled BEA Budget Enforcement Act BES Budget estimate submission BFN Bona fide need BPI Business process innovation BPR Business process reengineering BRAC Base realignment and closure BY Budget year CA Commercial activities CAE Component Acquisition Executive CAIV Cost as an independent variable CAPE Cost Assessment and Program Evaluation CARD Cost Analysis Requirements Description CBO Congressional Budget Office CBR Concurrent budget resolution, continuing budget resolution 176 © Management Concepts. See inside front cover for additional details.  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT Acronym Full Term CBV Capability-based volunteer CCE Component cost estimate CDD Capability Development Document CDFM Certified Defense Financial Manager CDFM-A Certified Defense Financial Manager with acquisition speciality CDS Consolidated Disbursing System CEAC Cabinet d'expertise et d'audit comptable CENTCOM Central Command CER Cost estimating relationship CFO Chief financial officer CFO Act Chief Financial Officers Act CFR Code of Federal Regulations, consolidated financial report CIO Chief information officer CIS Comptroller Information System CJCS Chairman, Joint Chiefs of Staff CO Certifying officer, commanding officer COCOM Combatant command Comp. Gen. Comptroller General CONUS Contiguous/continental United States CPA Certified public accountant, Chairman's program assessment CPD Capabilities Production Document CPI Critical program information CPR Contract performance report CR Continuing resolution © Management Concepts. See inside front cover for additional details. 177  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term CSRA Civil Service Reform Act CSRS Civil Service Retirement System CTE Critical technology element CV Coefficient of variation, cost variance CY Calendar year, current year DCAPE Director, Cost Assessment and Program Evaluation DAB Defense Acquisition Board DAG Defense Acquisition Guidebook DAO Department accountable official DARPA Defense Advanced Research Projects Agency DBOF Defense business operations fund DCAA Defense Contract Audit Agency DCIA Debt Collection Improvement Act DCMA Defense Contract Management Agency DD Form Department of Defense form DECA Defense Commissary Agency DEPSECDEF Deputy Secretary of Defense DFARS Defense Federal Acquisition Regulation Supplement DFAS Defense Finance and Accounting Service DHRA Defense human resources activity DIA Defense Intelligence Agency DID Data item description DISA Defense Information Systems Agency DLA Defense Logistics Agency 178 © Management Concepts. See inside front cover for additional details.  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT Acronym Full Term DLSA Defense Legal Services Agency DMAG Deputy's Management Action Group DMAIC Define, measure, analyze, improve, and control DMPO Defense Military Pay Office, Defense Prisoner of War/Missing Personnel Office DO Disbursing officer DoD, DOD Department of Defense DODD Department of Defense directive DoDEA Department of Defense education activity DODI Department of Defense instruction DoD TRMC Department of Defense test resource management center DOJ Department of Justice DOTMLPF Doctrine, organizational, training, material, leadership and education, personnel, and facilities DPG Defense Planning Guidance DS Discretionary spending DSCA Defense Security Cooperation Agency DSG Defense strategic guidance DSR Defense strategy review DSS Defense Security Service DSSN Disbursing Station Symbol Number DTIC Defense Technical Information Center DTRA Defense Threat Reduction Agency DTS Defense Travel System DTSA Defense Technology Security Administration © Management Concepts. See inside front cover for additional details. 179  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term DWCF Defense Working Capital Fund EA Economic analysis, Economy Act EC Electronic commerce EDA Electronic document access EDFMTC Enhanced Defense Financial Management Training Course EDI Electronic data interchange E-E Emergency essential EEO Equal employment opportunity EFT Electronic funds transfer EMD Engineering and manufacturing development EOQ Economic order quantity ERM Enterprise Risk Management EUCOM European Command EVM Earned Value Management EVMS Earned Value Management System FACTS Federal Agency Centralized Trial-balance System FAIR Act Federal Activities Inventory Reform Act FAL Federal appropriation law FAR Federal Acquisition Regulation FASAB Federal Accounting Standards Advisory Board FASB Financial Accounting Standards Board FFMIA Federal Financial Management Improvement Act FFP Firm-fixed-price FIAR Financial Improvement and Audit Remediation 180 © Management Concepts. See inside front cover for additional details.  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT Acronym Full Term FM Financial management FMFIA Federal Managers' Financial Integrity Act FMR Financial Management Regulation FMS Financial Management Services (Department of Treasury) FOC Full operational capability FPIF Fixed-price-incentive-fee FPRR Forward pricing rate recommendation FR Fill rate FRB Federal Reserve Bank FRP Full-rate production FRPDR Full-rate production decision review FSO Financial Services Offices FTE Full-time equivalent FTP Full-time permanent FTR Federal Travel Regulation FTS Financial Tracking service, full-time support FWRA Federal Workforce Restructuring Act FY Fiscal year FYDP Future Years Defense Program GAAP Generally accepted accounting principles GAGAS Generally Accepted Government Auditing Standards GAO Government Accountability Office GAS Government accounting standards GASB Government Accounting Standards Board © Management Concepts. See inside front cover for additional details. 181  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term GDP Gross domestic product GETA Government Employees Training Act GMRA Government Management Reform Act GND Gross national debt GOALS Government Online Accounting Link System GPC Government purchase card GPO Government Printing Office GPRA Government Performance and Results Act GPRMA Government Performance and Results Act Modernization Act GS General schedule GSA General Services Administration HAC House Appropriations Committee HASC House Armed Services Committee H.Con.Res A resolution originating in the House of Representatives H.Rept. House report (a report from the House of Representatives) H.Res House resolution (a resolution affecting the House of Representatives) IB Issue books IC Internal control ICD Initial capabilities document ICE Independent cost estimate ICOFR Internal control over financial reporting IG Inspector General IMS Integrated master schedule INDOPACOM Indo-Pacific Command 182 © Management Concepts. See inside front cover for additional details.  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT Acronym Full Term IOC Initial operational capability IPAC Intra-Governmental Payment and Collection System IPERA Improper Payments Elimination and Recovery Act IPL Integrated Priority List IPMR Integrated program management report IPT Integrated product team IR Internal review IR&D Independent research and development IRS Internal Revenue Service JCIDS Joint Capabilities Integration Development System JCS Joint Chiefs of Staff JPD Joint planning document JROC Joint Requirements Oversight Council JTR Joint Travel Regulations KO Contracting officer (DoD) KPP Key performance parameter LCC Life-cycle cost LCSP Life-cycle support plan LOC Library of Congress LR Lapse rate LRIP Low-rate initial production LOWP Leave without pay MAIS Major Automated Information System MCN Military Construction, Navy © Management Concepts. See inside front cover for additional details. 183  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term MDA Milestone Decision Authority, Missile Defense Agency MDAP Major Defense Acquisition Program MEO Most Efficient Organization MHPI Military Housing Privatization Initiative MICP Managers' Internal Control Program MILCON Military Construction appropriation MILPERS Military Personnel appropriation MIL STD Military standard MIPR Military Inderdepartmental Purchase Request MMP Master mobilization plan MOA Memorandum of agreement MOU Memorandum of understanding MPA Military Personnel, Army MRIC Management's responsibility for internal control MS Mandatory (direct) spending MWR Morale, welfare, and recreation MYP Multiyear procurement NAF Non-appropriated funds NAVFAC Navy Facilities Engineering Command NCE Non-combat essential NDAA National Defense Authorization Act NDS National Defense Strategy NGA National Geospatial-Intelligence Agency NI Net income, net interest 184 © Management Concepts. See inside front cover for additional details.  EDFMTC MODULE 1: RESOURCE MANAGEMENT ENVIRONMENT Acronym Full Term NLRB National Labor Relations Board NMS National Military Strategy NOR Net operating result NORTHCOM Northern Command NPV Net present value NSA National Security Agency/Central Security Service NSC National Security Council NSF National Science Foundation NSS National Security Strategy O&M Operation and Maintenance appropriation O&S Operations and support OA Obligation authority OAI Other accompanying information OCONUS Outside the contiguous/continental United States OEA Office of Economic Adjustment OGE Office of Government Ethics OIG Office of Inspector General OIPT Overarching Integrated Project Team OMB Office of Management and Budget Op. Atty. Gen. Opinion of the Attorney General OPM Office of Personnel Management OSD Office of the Secretary of Defense OTFTP Other than full-time permanent OUSD Office of the Under Secretary of Defense © Management Concepts. See inside front cover for additional details. 185  RESOURCE B: GLOSSARY OF ACRONYMS Acronym Full Term PAR Performance and Accountability Report PARCA Performance assessment and root-cause analysis PAUC Program acquisition unit cost PAYGO Pay as you go PBD Program budget decision PCO Procuring contract officer PCS Permanent change of station PDM Program Decision Memorandum PDT Permanent duty travel PDTATAC Per Diem, Travel, and Transportation Allowance Committee PEO Program Executive Officer PKI Public key infrastructure P.L. Public law PM Program manager PMB Performance measurement baseline PMO Program management office POE