Prevailing Rate Systems; Lead Agency Responsibility

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AI48

Prevailing Rate Systems; Lead Agency Responsibility

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing a final

rule that will change the lead agency responsibility for certain

Federal Wage System (FWS) appropriated fund wage areas from the

Department of Veterans Affairs (VA) to the Department of Defense (DOD).

VA requested that OPM designate DOD as the lead agency in all of the

wage areas where VA currently has lead agency responsibility. This

change will make DOD the lead agency in all FWS wage areas and will

make more efficient use of the resources devoted by agencies to

determining FWS pay rates.

DATES: This final rule is effective on January 1, 1999, except that VA

will retain lead agency responsibility for the Roanoke, Virginia, wage

area until the next wage schedule for that wage area is established on

January 17, 1999.

FOR FURTHER INFORMATION CONTACT: Jennifer Hopkins at (202) 606-2848, or

send an email message to [email protected].

SUPPLEMENTARY INFORMATION: On November 2, 1998, the Office of Personnel

Management (OPM) published a proposed rule (63 FR 58659) to transfer

lead agency responsibility for the New Haven-Hartford, Connecticut;

Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-Urbana,

Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des Moines,

Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern Michigan;

Minneapolis-St. Paul, Minnesota; New York, New York; Rochester, New

York; Asheville, North Carolina; Charlotte, North Carolina; Cincinnati,

Ohio; Cleveland, Ohio; Southwestern Oregon; Pittsburgh, Pennsylvania;

Eastern Tennessee; Houston-Galveston-Texas City, Texas; Roanoke,

Virginia; and Milwaukee, Wisconsin, FWS wage areas from the Department

of Veterans Affairs (VA) to the Department of Defense (DOD).

The proposed rule provided a 30-day period for public comment,

during which OPM received one comment from a labor organization, which

requested that OPM pursue enactment of appropriations legislation that

would specifically designate funds for VA to conduct local FWS wage

surveys. However, the commenter recognized that under present

conditions there is no acceptable alternative but to make the proposed

changes in lead agency responsibility effective. The possibility of

requesting that Congress appropriate funds to VA specifically for

conducting FWS wage surveys was raised and considered by the members of

FPRAC. However, the Committee did not adopt this suggestion (which is

outside the scope of our regulatory authority) as part of its

recommendation to OPM.

Under 5 U.S.C. 5343(a)(2), OPM is responsible for designating lead

agencies in Federal Wage System (FWS) wage areas. Lead agencies are

responsible for conducting surveys of private sector employers to

establish wage schedules for FWS employees based on local prevailing

rates. The Department of Defense (DOD) is the lead agency in 110 FWS

wage areas, and the Department of Veterans Affairs (VA) is the lead

agency in 23 FWS wage areas. VA is currently the lead agency in the New

Haven-Hartford, Connecticut; Miami, Florida; Tampa-St. Petersburg,

Florida; Champaign-Urbana, Illinois; Chicago, Illinois; Cedar Rapids-

Iowa

[[Page 72098]]

City, Iowa; Des Moines, Iowa; Augusta, Maine; Boston, Massachusetts;

Southwestern Michigan; Minneapolis-St. Paul, Minnesota; New York, New

York; Rochester, New York; Asheville, North Carolina; Charlotte, North

Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon;

Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas

City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, FWS wage

areas.

VA requested that OPM designate DOD as the lead agency in the wage

areas where VA is currently designated as the lead agency. Since the

establishment of the FWS in 1972, VA has played a key role in the

administration of the pay program for FWS employees. However, during

the past few years, VA has experienced reductions in overall employment

in the human resources management areas both in field and headquarters

activities. At the headquarters level, two out of three experienced

specialists assigned to oversee FWS wage surveys are no longer

available to work in that area because of retirements and

reassignments. VA believes a consolidation of the FWS survey function

within one agency will be more efficient and will provide a level of

consistency in the survey process that will strengthen the FWS program

nationwide. DOD expressed its willingness and indicated its ability to

assume lead agency responsibility in the wage areas where VA is

currently assigned lead agency responsibility.

The proposed change was reviewed by the Federal Prevailing Rate

Advisory Committee (FPRAC), the national labor-management committee

responsible for advising OPM on matters that affect the pay of FWS

employees. The management members of FPRAC proposed this change because

diminishing staff resources within VA headquarters make it very

difficult for VA to accomplish its wage survey work in an effective

manner, and because DOD expressed its ability and willingness to assume

lead agency responsibility in all FWS wage areas. After considering all

possible alternatives, the Committee recommended approval of the change

in lead agency by majority vote. All Committee members voted for the

proposal except for the National Federation of Federal Employees, which

abstained. The remaining labor members of FPRAC supported the proposed

change with reservations, stating that although no reasonable

alternative exists, they are concerned about the placement of

Governmentwide FWS wage determinations within a single agency.

Pursuant to section 553(d)(3) of title 5, United States Code, I

find that good cause exists to make this regulation effective in less

than 30 days. This regulation is being made effective in less than 30

days because of the recommendation of FPRAC that DOD assume lead agency

responsibility for all FWS wage areas where practical at the start of

the calendar year.

Regulatory Flexibility Act

I certify that these regulations will not have a significant

economic impact on a substantial number of small entities because they

will affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 532

Administrative practice and procedure, Freedom of information,

Government employees, Reporting and recordkeeping requirements, Wages.

U.S. Office of Personnel Management.

Janice R. Lachance,

Director.

Accordingly, the Office of Personnel Management is amending 5 CFR

part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

1. The authority citation for part 532 continues to read as

follows:

Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5

U.S.C. 552.

Appendix A to Subpart B of Part 532 [Amended]

2. Appendix A to subpart B is amended for the New Haven-Hartford,

Connecticut; Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-

Urbana, Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des

Moines, Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern

Michigan; Minneapolis-St. Paul, Minnesota; New York, New York;

Rochester, New York; Asheville, North Carolina; Charlotte, North

Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon;

Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas

City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, wage areas by

revising the lead agency listings from ``VA'' to ``DOD''.

[FR Doc. 98-34394 Filed 12-30-98; 8:45 am]

BILLING CODE 6325-01-P