3 FAM 2160
POLICY ON BALANCED WORKFORCE GUIDELINES AND PROCEDURES
(CT:PER-865; 08-22-2017)
(Office of Origin: A/EX/CSM)
3 fam 2161 PURPOSE
(CT:PER-764; 02-02-2015)
The purpose of this policy is to:
(1) Provide guidance to ensure the successful
implementation of:
(a) Section 736 of the Omnibus Appropriations Act, 2009
(Public Law 111-8; Division D); and
(b) Office of Management and Budget (OMB) guidance on
Managing the Multi-Sector Workforce, M-09-26;
(2) Ensure the consistent implementation of the
Departments Balanced Workforce guidelines and procedures to guarantee that
Federal employees receive consideration, on a regular basis, to perform new
functions and functions performed by contractors;
(3) Implement the Departments Balanced Workforce
guidelines and procedures in accordance with the Departments and U.S. Agency
for International Developments (USAID) Joint Strategic Plan; and
(4) Provide special consideration to Federal employees
to perform certain functions.
3 fam 2162 BACKGROUND
(CT:PER-764; 02-02-2015)
a. In early 2009, Congress passed, and the President
signed into law, the Omnibus Appropriations Act, 2009. Section 736 of Division
D (Financial Services and General Government Appropriations Act), requires
agencies subject to the Federal Activities Inventory Reform (FAIR) Act of 1998
(Public Law 105-270; 31 U.S.C. 501 note) to ensure Federal employees are
considered, on a regular basis, when deciding who should perform new functions
or functions currently performed by contractors.
b. The Office of Management and Budget (OMB) issued
guidance regarding the implementation of this legislation to ensure that
agencies comprehensively review their management of the multi-sector workforce
in Memorandum M-09-26. This guidance should improve the Department of States
ability to reduce costs and staff and manage its workforce appropriately.
However, as the Department of State decides to use Federal employees to perform
new and expanded requirements and to in-source contracted work, the size of the
Department of States in-house workforce may increase. The Department of State
must demonstrate to Congress and the Administration how in-sourcing is being
used to:
(1) Ensure inherently governmental and exempt
functions are reserved for government performance;
(2) Improve contract management and oversight; and
(3) Eliminate an overreliance on contractors in areas
where such overreliance exists.
3 FAM 2163 APPLICABILITY
(CT:PER-764; 02-02-2015)
This policy is applicable to all departmental bureaus,
offices, and other elements utilizing contractor support and services.
3 FAM 2164 RESPONSIBILITIES
(CT:PER-764; 02-02-2015)
a. The Collaborative Strategy and Management Division (A/EX/CSM),
located in the Bureau of Administrations Executive Office, has primary
responsibility for implementing and overseeing guidance associated with
in-sourcing and multi-sector workforce management in coordination with program,
human capital, procurement, and budget and planning offices. The A/EX/CSM
Director provides supplemental guidance to assist Department of State entities
in the implementation of these requirements.
b. Each bureau within the Department must name a senior
accountable official responsible for executing the comprehensive implementation
of this guidance, and must provide the
name and contact information to the A/EX/CSM Director. Each bureau is
responsible for appropriately managing their contractor and Federal employee
(direct-hire) resources and ensuring that inherently governmental functions are
being performed by Federal (U.S.) government employees.
3 FAM 2165 Guidelines and procedures
for implementation of section 736 of division D of the omnibus appropriations
act, 2009, and omb guidance regarding multi-sector workforce management
3 FAM 2165.1 Establishment of a
Community of Practice
(CT:PER-764; 02-02-2015)
A Community of Practice is established to provide for the
collective learning and sharing of ideas, strategies, solutions, and
innovations designed to enhance the multi-sector workforce at the Department of
State. The Community of Practices membership will consist of representatives
from regional and functional bureaus who share a concern for, and have in
interest in, discussing emerging trends, developments, policies, and procedures
for effectively balancing and managing the multi-sector workforce.
3 FAM 2165.2 Subchapter
Definitions
(CT:PER-865; 08-22-2017)
a. Functions closely associated with
inherently governmental functions (CAIG): This term is defined as set
forth in FAR 7.503(d) of the Federal
Acquisition Regulation.
b. Inherently governmental (IG)
functions: This term is defined as set forth in FAR 7.5 of the Federal Acquisition Regulation.
3 FAM 2165.3 General Consideration
of Federal Employee Performance for New Functions and Contracted Functions That
Could Be Performed by Federal Employees
(CT:PER-764; 02-02-2015)
a. Bureaus using contract services must give
consideration, on a regular basis, to using Federal employees to perform new
functions and functions that are performed by contractors and could be
performed by Federal employees.
b. Pursuant to OMB guidance, the Department will
augment existing, ongoing agency management or efficiency reviews with a
consideration of where opportunities exist to improve performance with the use
of Federal employees. The following guidelines apply when considering whether
to use Federal employees to perform new or expanded requirements and functions
performed by contractors that could be performed by Federal employees:
(1) If functions/activities are no longer required,
they must be eliminated;
(2) If new or expanded requirements or functions
performed under contract are determined to be inherently governmental or exempt
from private-sector performance, the functions must be converted to government
performance. In such cases, no cost analysis is necessary;
(3) For all other new or expanded requirements where
both sectors are being considered for performance of a requirement, and for all
other functions performed under contract where performance could improve
through use of Federal employees, the bureau must perform a cost analysis that
addresses the full costs of performance and provides like comparisons of relevant
costs to determine the most cost-effective source of support;
(4) While there may be cases where performance and
risk considerations clearly outweigh cost considerations when considering
workforce mix, they should be rare. Factors for determining where full cost
analyses may not be required include:
(a) The need to establish or build internal capacity to
maintain control of mission and operations;
(b) The function is closely associated with an
inherently governmental function and in-house performance is necessary for the
agency to maintain control of its mission and operations; or
(c) The continued use of the private sector would
compromise critical agency or Administration guidance.
c. If a decision is made to use Federal employees, but
the bureaus Human Resources Service Provider determines that qualified Federal
employees cannot be hired to perform the function, officials may contract (or
continue to contract) for the services provided the function is not inherently
governmental or otherwise exempt from private-sector performance.
3 FAM 2165.4 Special Consideration
for Certain Functions
(CT:PER-764; 02-02-2015)
a. All bureaus of the Department shall give special
consideration to Federal employees when deciding what sector should perform
Department functions. Where a contractor is performing a function, the
following factors should be considered:
(1) Was the function performed by Federal employees at
any time during the previous 10 years?
(2) Is the function closely associated with the
performance of an inherently governmental function?
(3) Was the contract awarded on a noncompetitive
basis?
(4) Is the function being performed poorly because of
excessive costs or inferior quality?
(5) Is the reliance on contractors such that the
bureau has diminished or lost control of its mission?
b. Special consideration must be given to new
requirements, with particular emphasis on a new requirement that is similar to
a function previously performed by a Federal employee or is a function closely
associated to the performance of an inherently governmental function.
3 FAM 2165.5 Special Consideration
for High-Risk Contracts
(CT:PER-764; 02-02-2015)
a. The Department must give special consideration to
in-sourcing high-risk contracts. High-risk contracts include three category
types as specified in OMB M-09-25:
(1) Contracts awarded noncompetitively and/or receive
only one bid in response to a solicitation or a request for quote;
(2) Cost-reimbursement contracts; and
(3) Time and materials, labor-hour (T&M/LH) contracts.
b. When continuing to contract for services currently
in a high-risk category, the acquisition strategy should be examined to
determine if future procurements can be conducted under a contract not
specified as high-risk.
3 FAM 2165.6 Service Contract
Inventory
(CT:PER-865; 08-22-2017)
a. The Consolidated Appropriations Act, 2010 (Public
Law 111-117; Division C, Section 743)
requires an inventory of service contracts to ensure comprehensive
implementation of sound multi-sector workforce management and other statutory
requirements. The Department will develop a service contract inventory that
will be used in conjunction with Federal employee staffing patterns and the
FAIR Act Inventory to map how in-house and contracted labor is being used to support
mission requirements. The service contract inventory will identify, for each
service contract:
(1) A description of the services purchased and the
role the services played in achieving agency objectives;
(2) The organizational component administering the
contract and the organizational component whose requirements are being met
through contractor performance of the service;
(3) The total dollar amount obligated for services
under the contract and the funding source for the contract;
(4) The total dollar amount invoiced for services
under the contract;
(5) The contract type and date of award;
(6) The name of the contractor and place of
performance;
(7) The number and work location of contractor and
subcontractor employees, expressed as full-time equivalents for direct labor;
(8) Whether the contract is a personal services
contract;
(9) Whether the contract was awarded on a
noncompetitive basis; and
(10) How the work is classified and whether it is:
Inherently governmental
Closely associated to inherently governmental
Critical
Essential or
Nonessential
(11) The total direct labor hours expended for services
under the contract.
b. Pursuant to statutory requirements, the Department
will conduct a review of contracts and activities to determine the extent to
which:
(1) Personal services contracts were entered into or
are being performed in a manner that is inconsistent with applicable statutory
and regulatory requirements;
(2) Contractors are performing inherently governmental
functions;
(3) Contractors are performing functions closely
associated with inherently governmental functions; and
(4) Contracts are staffed with the proper amount of
oversight.
c. If there are functions or activities under contract
that are determined to be inherently governmental or exempt from private-sector
performance, they must be converted to government performance consistent with
Department of State guidelines or eliminated if no longer required.
d. The Department of State will review the service
contract inventory to identify activities that should be considered for
conversion either:
(1) To performance by Federal employees as required by
Section 736; or
(2) To an acquisition approach that would be more
advantageous to the Department of State.
e. In addition, the Department of State will develop a
plan to provide for appropriate consideration to be given to the conversion of
these activities within a reasonable period of time.
3 FAM 2165.7 No Limitations or
Restrictions
(CT:PER-669; 02-28-2012)
Limitations or restrictions must not be placed by the
Department or any departmental entity on the number of functions or activities
converted from contractor to Federal employee performance.
3 FAM 2165.8 Procedures Governing
Section 736 Actions
(CT:PER-764; 02-02-2015)
a. Requests for human resources must be closely managed
to ensure responsible stewardship of Department of State resources.
b. When a bureau within the Department of State has a
new or expanded requirement or is considering whether to convert from
contractor to government performance, managers must follow standard procedures
for validating the requirement. This must include verifying the mission,
functions, tasks to be performed, required level of performance, and resources necessary
for mission success. Officials must ensure performance requirements (e.g.,
required capability or outcome) are stated accurately and relate directly to
the mission priority, available resources, and acceptable risk. In certain
cases, workforce-mix decisions may depend on the availability of Federal
employee personnel as determined by a human resources market analysis. The
Human Resources Service Provider for the bureau will address any changes
required to the organizational structure and position descriptions. These will
be provided to the Office of Resource Management and Organizational Analysis
(HR/RMA) for approval and must comply with 1 FAM 010
(Authority, Responsibility and Organization) regulations.
c. Department of State Assistant Secretaries are
accountable for the management and deployment of their resources. Department
of State officials must prioritize workforce requirements (to include human
resources and contract support) according to the importance of the mission and
acceptable level of risk, so that requests for resources can be considered
relative to other competing needs. Requests for additional human resources
must be fully justified, prioritized, and include a funding source or offset
based on a reprioritization of other human resources/contract support or
program requirements.
3 FAM 2165.9 Guidelines for
Documentation of Section 736 Actions
(CT:PER-764; 02-02-2015)
a. The Department of State must make every effort to
determine the appropriate workforce mix in sufficient time to document the
full-time equivalents for the Federal employees in their program/budget
submissions. However, the Department of State may authorize additional
temporary positions to preclude a gap in service, provided the human resource
requirements have been documented/validated and sufficient funds are available
to pay for the Federal employee positions.
b. Bureaus that have taken action under Section 736
must provide all pertinent documentation demonstrating the analysis performed
to the Director, Collaborative Strategy and Management (A/EX/CSM). The
Director, Collaborative Strategy and Management, will retain supporting
documentation for Section 736 decisions (to include copies of bureau cost
analyses, decisions made by human resource service providers, and
determinations made by contracting officers) so that the Department is able to
justify its Section 736 decisions in the event of a Government Accountability
Office (GAO) audit or other similar review.
3 fam 2166 through 2169 unassigned