Expand Your Federal Contracting Knowledge

Just when you thought it couldn't get any more confusing, some agencies also have their own RIF guidance separate from the OPM guidance that is what we've heard the most about. DoD is one of those agencies.

A copy of the current DoD RIF guidance, DoD Instruction 1400.25, Volume 351, is found at: https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/140025/140025_V351.PDF?ver=DgEFMmb9dLDV7OV-PLb7VQ%3D%3D

This guide establishes policy, assigns responsibilities, and prescribes procedures for reduction in force (RIF) actions taken under Part 351 of Title 5, Code of Federal Regulations (CFR), as modified by Section 1597(f) of Title 10, United States Code (U.S.C.).

This guidance does not, in full, apply to DoD employees covered by an alternative personnel system (e.g., the Acquisition Demonstration; Science and Technology Reinvention Laboratories; and the Defense Civilian Intelligence Personnel System). Those systems will develop their own policies and procedures for RIF that comply with the law, as approved by the Under Secretary of Defense for Personnel and Readiness (USD(P&R)). This guide also does not apply to Senior Executive Service (SES) positions.

The policy statement in 1.2 states that, "For any RIF of civilians in the competitive and excepted services in the DoD, the determination as to which employees will be separated from employment must be made primarily on the basis of performance."

In accordance with 10 U.S.C. 1597, DoD must report to Congress 45 days prior to implementing an approved RIF.

DoD will comply with 5 CFR 351.402 and 351.403 when establishing competitive areas and competitive levels, respectively. Competitive service employees and excepted service employees are placed on separate retention registers established in accordance with 5 CFR 351.404 and 351.405.

For purposes of DoD RIF, employees are placed in one of two categories:

• employees with a period of assessed performance of less than 12 months, and
• employees with a period of assessed performance of 12 months or more.

An employee’s period of assessed performance for purposes of RIF will be the sum of the months of assessed performance associated with the employee’s performance appraisals within the most recent 4-year period preceding the cutoff date established for the RIF. However, periods of time in a rating cycle for which an employee’s performance was not assessed are not included in the employee’s period of assessed performance.

For example, if an employee receives a rating after serving 10 months of the 12-month cycle, the employee’s period of assessed performance is 10 months for that rating cycle.

For employees absent for military service, periods of time during the rating period may be treated as periods of assessed performance if they meet the requirements of Paragraph 3.3.c.(1) under Paragraph 3.3.b.(2) of the DoD guide.

Retention Factors

Competing employees are listed on a retention register based on--

• Rating of Record. See Section 3.3.c. for rating of record examples based on cutoff dates, military service, time frames for ratings to be used, and ratings from a system other and the Defense Performance Management Program (DPMAP).
• Tenure Group. This follows the definitions found in 5 CFR 351.501(b) for competitive service and 5 CFR 351.502(b) for excepted service.

• Average Score. In general, an employee’s average score for one performance appraisal is derived by dividing the sum of the employee’s performance element ratings by the number of performance elements. The average of the average scores drawn from the two most recent performance appraisals received by the employee, except when the performance appraisal reflects an “unacceptable” rating of record will be reviewed. When the most recent performance appraisal reflects an “unacceptable” rating of record, only that performance appraisal will be considered for purposes of the employee’s average score.
• Veterans’ Preference. This follows the procedures in 5 CFR 351.501(c) with three veterans' preference subgroups:
  • AD - 30% or more disabled veteran
  • A - eligible for veterans' preference for the purpose of RIF but not for placement in the AD category (i.e., less than 30% disabled veteran determination)
  • B - not eligible for veterans' preference for purpose of RIF

• DoD Service Computation Date-Reduction in Force (DoD SCD-RIF). Follows rules of credible service as found in 5 CFR 351.503(a) and (b). DoD does not follow 5 CFR 351.504, which grants additional retention service credit in RIF based on an employee's ratings of record.

Rounds in Reduction in Force (RIF)

Two rounds of RIF will be conducted. Round One, Release from Competitive Level, and Round Two, Assignment Rights, are explained in the document in detail related to types of appointments, order of release from the competitive level, and exceptions that may apply. They are found in sections 3.5 and 3.6, respectively.

Displacement may occur during Round Two. Displacement is the assignment of an employee to a continuing position in a different competitive level that is held by another employee with a lower retention standing (i.e., “bumping” another employee). Displacement may be at the same grade or at a grade up to three grades or grade intervals (or equivalent) below the position of the released employee.

Right of Only One Offer

Employees released from a retention register are only eligible for one offer of assignment (similar to OPM rules), with some exceptions. If the employee accepts and offer, rejects an offer, or fails to reply to an offer in a timely manner, they are not entitled to further offers. However, the DoD Component must make a better offer of assignment to a released employee (i.e., to a position with a higher representative rate) if a position becomes available before, or on, the RIF effective date.

Sample retention registers and scenarios are found in the guide in Appendix 3A. Employees have the right to request a review of retention registers and have representation also be allowed to review the registers, as requested by the employee.

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DISCLAIMER: Info is provided for awareness. I am NOT an HR professional but an HR enthusiast having started in HR and being a Federal supervisor and hiring manager. Before taking any action that changes your status, please seek the advice of an attorney knowledgeable in Federal employment law.

• Fed Forward

Voluntary Separation Incentive Payment (VSIP) allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. The amount received is reduced by Fed and state taxes, social security, and Medicare, as applicable.

The full guide on the program is found at the OPM website https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-separation-incentive-payments/guide.pdf

Eligibility for VSIP requires an employee be employed by an Executive Branch agency for at least three (3) continous years without a time limit and not be--

▶️ a reemployed annuitant;

▶️ otherwise be eligible for disability retirement;

▶️ recipient of a notice of involuntary separation for misconduct or poor performance;

▶️ recipient of any previous VSIP from the Federal Government;

▶️ on a service agreement for which--

➡️ a student loan repayment benefit was paid, or is to be paid, during the 36-months preceding the date of separation;

➡️ a recruitment or relocation incentive was paid, or is to be paid, during the 24-months preceding the date of separation; and

➡️ a retention incentive was paid, or is to be paid, during the 12-months preceding the date of separation.

If you receive a VSIP and later come back to Federal Service within 5 years of the date of the separation on which the VSIP is based, you must repay the entire amount before your first day of reemployment. This includes working under a personal services contract or other direct contract with the Government.

The top 10 questions related to VSIP can be found at https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-early-retirement-authority/top-10-frequently-asked-questions-about-vera-and-vsip.pdf

OPM's page on VSIP is at https://www.opm.gov/policy-data-oversight/workforce-restructuring/voluntary-separation-incentive-payments/

DISCLAIMER: Information is provided for situational awareness. I am not an HR professional but an HR enthusiast having been a Chief of Contracting and Federal supervisor. Please consult with an attorney knowledgeable in Federal employment law before making any decisions that impact your Federal employment status.

• Fed Forward

Feds...if you haven't separated your Government communications from your personal communications yet, now is the time to do it.

There has never been an expectation of privacy while using Government Furnished Equipment (GFE). But GFE has been allowed to be used for quick personal calls or emails to check in with children or with family members during the work day. And over time, you may have blended your Government and personal communications more than you realize.

Now, however, it appears your every digital and possibly physical move may be tracked, recorded, and stored. Software and hardware that tracks employee activity, digital behavior, and even movements within Government office space should be expected. Tracking software has (allegedly) already been pushed at some agencies or is (allegedly) expected to be pushed soon.

Computer monitoring programs are expected to track:

🔸️Key stroke loggers to record what is typed or edited

🔸️Analyze chats for flagged words

🔸️Network activity, file access, login, and online behaviors

🔸️Application usage and websites visited and what was searched

Expect software applications to be employed that will analyze this information and generate behavior risk scores by employee. Also expect that all online meetings and chats will be recorded, transcribed, and stored / archived for review without the choice to turn those features off.

Several employees at one prominent agency are reporting their GFE laptop cameras and possibly mics are being turned on during their work day without their consent and outside of active video meetings.

Highly suggest --

▶️ using a privacy cover for your webcam.

▶️ monitoring the activation light.

▶️ taking all personal calls away from your work space on a personal device.

▶️ taking other precautions to protect sensitive conversations, business and personal such as only using a personal device.

• Fed Forward

"Shiny sparkly things." We all like them. I know I do.

In a podcast hosted by Chelsea Meggitt, she and I and the great David Neal were talking and Chelsea used that term related to GovCon consultants and how you may not want to go with the "shiny sparkly things" because sometimes they are there to draw attention and distract you.

It got me thinking today...in William Randolph's Mindset Mondays sessions this past Monday we talked about the SLED (State and Local Government, and Higher Education) marketplace versus Federal marketplace. We talked about the differences in the marketing strategies. I mentioned that at the Federal level, businesses are always trying to be the "shiny sparkly things" to draw attention to themselves to attract the Government buyers. All those fancy and impressive differentiators where you talk about complex projects, etc.

But in the SLED space, depending on the level, that could be overwhelming. SLED entities have sometimes --

▶️ fewer resources,

▶️ fewer dollars, and

▶️ needs that, if met, can be much more immediately impactful.

Being the "shiny sparkly thing" at that level may come with the connotation that --

▶️ your services cost more,

▶️ you can't relate to their problems or concerns, and

▶️ you may not see them as an important customer within your client base because they have smaller projects.

If you are thinking of pivoting to other marketplaces, get to know them -- just like you did at the Federal level. Do your homework. Build the relationships. And as Juliet Fletcher MPA, CF APMP, CEO at Writing is Easy put it in the Mindset Monday call -- "you may want to start in your own backyard."

Think about all the possibilities that you haven't taken advantage of because of your focus in the Federal space and start to explore ALL of your options during these times of challenge and uncertainty.

(BTW...if you haven't attended William's Mindset Monday get togethers, consider it a safe space to talk about change and what it means in the Federal marketplace and GovCon space for businesses and consultants alike.)

• FedSubK Features

Let's break down a recent RIF notice. This is one received by an agency career employee on a competitive appointment whose work unit was abolished along with all positions in it.

(NOTE: If you receive a RIF notice, it will depend on your status and the rationale as to how it will read. I'm sharing this example merely to dispel some of the fear and stigma.)

1. Attempt at empathy.

2. Adverse action to be taken. In this case, abolishment of the work unit and all positions within it.

3. Initial action. In this case, immediate separation on the effective date provided and indication that the employee will be put on 30 days immediate paid administrative leave.

4. Future actions. Not earlier than 30 days from this notice the employee will receive their official RIF notice at which time--

➡️ 60 days paid admin leave will start,

➡️ the final separation date will be disclosed,

➡️ the employee will be advised of their rights to other avenues for separation for which they qualify such as voluntary retirement, Discontinued Service Retirement (DSR), and the date by which such action must be taken (typically PRIOR to the final separation date given),

➡️ info on leave pay outs, if due, are provided,

➡️ calculation and amount of severance pay due, if any, is disclosed, and

➡️ continuation of benefits, as allowable, s dictated by eligibility, is provided.

5. Return of GFE and Identification. Info on how to turn in GFE and clear the agency.

6. Future Communications. How future correspondence will be received from the agency by the employee until time of separation.

7. Actions by the employee to initiate admin leave. The employee will need to take timely action to ensure pay begins accordingly.

Is this normal? Not necessarily.

#3 and #4 does not typically come with immediate admin leave without warning in the middle of the night or on a weekend, or 60 days of admin leave prior to separation. Normally the agency wants you on the job so projects and documentation can be wrapped up and info collected as required by NARA regulations. I have little faith that is happening right now.

90 days paid admin leave prior to the final separation date seems to be the norm in these cases, but may not be in all cases.

Any HR or legal folks want to weigh in so we can dispel the fear around these notices? Let's start this discussion and not hide from these realities so Feds can plan for their moves forward.

• Fed Forward

It's time for a frank discussion, Feds. If you aren't prepared for a possible layoff you need to start thinking about it. Some of the Feds who I've spoken to in my backyard of Oklahoma and across the country that I've worked with over the years are not being realistic about what this "RIF stuff" all means.

It means--

▶️ No one is going to negotiate the severance package you want. You get what get per the OPM policy... and that's it. Know if you are eligible and calculate it now. (https://www.fedsubk.com/post/severance-pay-and-reduction-in-force-rif)

▶️ Your agency doesn't care that you don't want to retire until 62 when you reach that 1.1% for the annuity calculation and that reaching that goal is the only reason you stayed as long as you did. You may have to retire earlier than planned or can afford to.

It also means--

▶️ If you are a remote worker or have a sweet 1 day a week in the office set up now, you will likely not have that in the private sector. Be prepared to be in an office.

▶️ Your Federal title and grade doesn't equate to what it did as a Fed. You need to be able to describe what you did in industry terms. Don't cop a 'tude if people don't know what you did by the job title or understand what your grade meant in terms of seniority or supervision in the Fed space.

▶️ The salaries (or many times now hourly rates) are going to be different. In many cases the pay will be lower because your position as a Fed may hold different and less importance in private industry.

▶️ The duties related to your position as a Fed may not translate to equal duties, responsibility, or authority in private industry. A good example is Contracting Officers. You hold a lot of power as a Fed CO/KO for decisions and signature authority. It won't be the same in private industry. You won't be signing contracts or be the final decision-maker. Start adjusting your expectations now.

▶️ Taking a step down to take a step up again in a few years. You may need to play the "get your foot in the door" game now. You will likely need to prove yourself again, especially if you aren't picked up by an entity that knows you.

▶️ You may have ethics considerations around seeking employment while a Fed or in your post-employment that you must consider. See my previous post about this which I will find and link in the comments.

I'm never trying to burst your bubble, but these are the things my private industry contacts and I who are talking to Feds want you to realize.

➡️ You have great skills but you also must be realistic and practical.

➡️ Learning to covey those skills and understanding where they fall in the pecking order in industry is important to adapting to working a different sector.

➡️ Talk to a financial advisor about your options and start planning your financial future if you haven't already. Find an advisor that is familiar with the payments and benefits of Federal employees. A great resource is SOFA (https://www.sofausa.org/about).

Be prepared.

FedSubK Now! Fed Forward article "Severance Pay and Reduction in Force (RIF)"

• Fed Forward