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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: May 14, 2004

SUBJECT: Pay Assumptions and Inflation Factors Used in Office of Management and Budget Circular No. A-76, Performance of Commercial Activities

SOURCE: Federal Register, May 14, 2004, Vol. 69, No. 94, page 26900

AGENCIES: Office of Management and Budget (OMB), Executive Office of the President

ACTION: Notice of Update

SYNOPSIS: OMB is updating the annual federal pay raise assumptions and inflation factors used for computing the government's in-house personnel and non-pay costs in public-private competitions conducted under OMB Circular A-76. These annual pay raise assumptions and inflation factors are based on the President's Budget for Fiscal Year (FY) 2005.

EDITOR'S NOTE: OMB Circular A-76 is available at http://www.whitehouse.gov/omb/circulars. Paper copies of OMB Circular A-76 may be obtained by calling OFPP at 202-395-7579.

DATES: All changes are effective May 14, 2004, and apply to all A-76 competitions in process where the government's in-house cost estimate has not been publicly revealed.

FOR FURTHER INFORMATION CONTACT: Mathew Blum, OFPP, New Executive Office Building, Room 9013, OMB, 725 17th Street, NW, Washington, DC 20503, 202-395-4953.

SUPPLEMENTAL INFORMATION: The following pay raise assumptions and inflation factors supersede those previously used in OMB Circular A-76 public-private competitions. The pay raise assumptions and inflation factors are used for computing the government's in-house personnel and non-pay costs.

The non-pay inflation factors are for purposes of A-76 cost comparison determinations only. They reflect the generic non-pay inflation assumptions used to develop the FY 2005 budget baseline estimates required by law. These inflation factors should not be viewed as estimates of expected inflation rates for specific major long-term procurement items or as an estimate of inflation for any particular agency's non-pay purchases mix.

The pay rate (including geographic pay differentials) that are in effect for FY 2004 are to be included for the development of in-house personnel costs. The pay raise factors provided for FY 2005 and beyond are to be applied to all employees, with no assumption being made as to how they will be distributed between possible locality and base pay increases.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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