[Federal Register: May 23, 2006 (Volume 71, Number 99)]
[Proposed Rules]
[Page 29593-29595]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23my06-11]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
[[Page 29593]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 250
RIN 3206-AJ92
Human Resources Management in Agencies
AGENCY: Office of Personnel Management.
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is proposing
regulations to implement certain provisions of the Chief Human Capital
Officers Act of 2002, which set forth new OPM and agency
responsibilities and requirements to enhance and improve the strategic
management of the Federal Government's civilian workforce, as well as
the planning and evaluation of agency efforts in that regard. Further,
we are proposing a plain language rewrite of the subpart titled
``Authority for Personnel Actions in Agencies.''
DATES: We will consider comments received on or before July 24, 2006.
ADDRESSES: You may submit comments, which are identified by RIN 3206-
AJ92, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: employ@opm.gov. Include ``RIN 3206-AJ92, Human
Resources Management in Agencies'' in the subject line of the message.
Fax: (202) 606-2329.
Mail: Ms. Nancy Kichak, Associate Director for Strategic
Human Resources Policy, U.S. Office of Personnel Management, Room 6551,
1900 E Street, NW., Washington, DC 20415-9700.
Hand Delivery/Courier: U.S. Office of Personnel
Management, Room 6551, 1900 E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: For information on proposed subpart
A--Authority for Personnel Actions in Agencies and subpart B--Strategic
Human Capital Management, contact Charles D. Grimes by phone at 202-
418-3163, by FAX at 202-606-2548, or by e-mail at
charles.grimes@opm.gov. You may contact Mr. Grimes by TTY on 202-418-
3134.
SUPPLEMENTARY INFORMATION: OPM is proposing to change the title of 5
CFR part 250, to read ``Human Resources Management in Agencies'' to
reflect current usage. In addition, we are proposing to revise the
current subpart A in plain language, and add regulations on strategic
human resources management as new subpart B.
Subpart A--Authority for Personnel Actions in Agencies
OPM proposes a plain language revision to make the current subpart
A of 5 CFR 250 more readable. This revision is part of a broader effort
to make OPM's regulations more readable. The Guide to Processing
Personnel Actions referenced in part 250, subpart A, is available at
http://www.opm.gov/feddata/gppa/gppa.asp.
Subpart B--Strategic Human Capital Management
The provisions of Public Law 107-296 include the Chief Human
Capital Officers Act of 2002 (Act), which, among other things, amended
OPM's authorizing legislation in chapter 11 of title 5, United States
Code, requiring OPM to design a set of systems, including appropriate
metrics, for assessing the management of human capital by Federal
agencies. While OPM has an overarching leadership role in the strategic
management of the Federal Government's human capital, employing
agencies have ultimate responsibility and accountability for their
respective workforces.
To establish accountability in that regard, the Act added in part
II of title 5 a new chapter 14, Agency Chief Human Capital Officers,
which directs each agency referred to in section 901(b) of title 31,
United States Code, (i.e., the Departments of Agriculture, Commerce,
Defense, Education, Energy, Health and Human Services, Homeland
Security, Housing and Urban Development, Interior, Justice, Labor,
State, Transportation, Treasury, and Veterans Affairs, and the
Environmental Protection Agency; National Aeronautics and Space
Administration; Agency for International Development; General Services
Administration; National Science Foundation; Nuclear Regulatory
Commission; Office of Personnel Management; Small Business
Administration; and the Social Security Administration) to appoint or
designate a Chief Human Capital Officer (CHCO) to carry out the
agency's responsibilities under the law. The CHCO is the senior
official accountable for advising the agency head in the development
and evaluation of the agency's strategic human capital plan and
reports. The Act also establishes a CHCO Council, chaired by the OPM
Director, to coordinate the law's implementation and to coordinate
Governmentwide and agency strategic human capital management efforts
and initiatives.
Finally, the Act amends section 1115 of title 31 to require CHCOs
to prepare that portion of their agency's annual performance plan
required under the Government Performance and Results Act of 1993, as
amended, which describes how human resources and human capital
management strategies will contribute to meeting annual performance
goals and objectives. It also amends section 1116 of that title to
require in the agency's annual performance report a review of the
performance goals and evaluation of the performance plan relative to
the agency's strategic human capital management.
This regulation implements provisions of the Act, as well as
Executive Order 13197, Governmentwide Accountability for Merit System
Principles; Workforce Information (January 18, 2001). It describes
OPM's leadership role and, in this context, establishes a basic
framework for planning and assessing human capital management progress
and results, including compliance with relevant laws, rules and
regulations, as assessed through agency human capital accountability
systems and reported in annual agency human capital accountability
reports. That basic framework comprises the Human Capital Assessment
and Accountability Framework (HCAAF) and its companion document, HCAAF
Systems, Standards, and Metrics (HCAAF-SSM), which are incorporated by
reference in this regulation. Both the HCAAF and the HCAAF-SSM are
available for review and comment on OPM's Web site at
[[Page 29594]]
http://www.opm.gov/hcaaf_resource_center/.
The regulation also establishes requirements for an agency to
maintain a current human capital plan and submit to OPM an annual human
capital accountability report. To accommodate the special resource
constraints of particularly small agencies, the regulation allows OPM
to waive these requirements. The requirements set forth in this
regulation are by design congruent with the planning and reporting
requirements contained in OMB Circular A-11 (under sections 32.1, 32.3
and 51.8) and title 31, United States Code, and support the system of
oversight prescribed by Sec. 250.102.
Executive Order 12866, Regulatory Review
This proposed rule has been reviewed by the Office of Management
and Budget in accordance with Executive Order 12866.
Regulatory Flexibility Act
I certify that these regulations would not have a significant
economic impact on a substantial number of small entities (including
small businesses, small organizational units, and small governmental
jurisdictions) because they would only apply to Federal agencies and
employees.
List of Subjects in 5 CFR Part 250
Authority delegations (Government agencies), Government employees.
Office of Personnel Management.
Linda M. Springer,
Director.
Accordingly, OPM is proposing to revise 5 CFR part 250 to read as
follows:
1. Revise part 250 to read as follows:
PART 250--HUMAN RESOURCES MANAGEMENT IN AGENCIES
Subpart A--Authority for Personnel Actions in Agencies
Sec.
250.101 Standards and requirements for agency personnel actions.
250.102 Delegated authorities.
250.103 Consequences of improper agency actions.
Subpart B--Strategic Human Capital Management
250.201 Coverage and purpose.
250.202 Office of Personnel Management responsibilities
250.203 Agency responsibilities.
Authority: 5 U.S.C. 1101 note, 1103(a)(5), 1103(c), 1104, 1302,
3301, 3302; E.O. 10577, 12 FR 1259, 3 CFR, 1954-1958 Comp., p. 218;
E.O. 13197, 66 FR 7853, 3 CFR 748 (2002).
Subpart B also issued under 5 U.S.C 1401, 1401 note, 1402.
Subpart A--Authority for Personnel Actions in Agencies
Sec. 250.101 Standards and requirements for agency personnel actions.
When taking a personnel action authorized by this chapter, an
agency shall comply with qualification standards and regulations issued
by the Office of Personnel Management (OPM), the instructions OPM has
published in the Guide to Processing Personnel Actions, and the
provisions of any delegation agreement OPM has made with the agency.
When taking a personnel action that results from a decision or order of
OPM, the Merit Systems Protection Board, Equal Employment Opportunity
Commission, or Federal Labor Relations Authority, as authorized by the
rules and regulations of those agencies, or as the result of a court
order, a judicial or administrative settlement agreement, or an
arbitral award under a negotiated agreement, the agency shall follow
the instructions in the Guide to Processing Personnel Actions and
comply with all other relevant substantive and documentary
requirements, including those applicable to retirement, life insurance,
health benefits, and other benefits provided under this chapter.
Sec. 250.102 Delegated authorities.
OPM may delegate its authority, including authority for competitive
examinations, to agencies, under 5 U.S.C. 1104(a)(2), through a
delegation agreement. The delegation agreement developed with the
agency must specify the conditions for applying the delegated
authorities. The agreement must also set minimum standards of
performance and describe the system of oversight by which the agency
and OPM will monitor the use of each delegated authority.
Sec. 250.103 Consequences of improper agency actions.
If OPM finds that an agency has taken an action contrary to a law,
rule, regulation, or standard that OPM administers, OPM may require the
agency to take corrective action. OPM may suspend or revoke a
delegation agreement established under Sec. 250.102 at any time if it
determines that the agency is not adhering to the provisions of the
agreement. OPM may suspend or withdraw any authority granted under this
chapter to an agency, including any authority granted by delegation
agreement, when OPM finds that the agency has not complied with
qualification standards OPM has issued, instructions OPM has published,
or the regulations in this chapter. OPM also may suspend or withdraw
these authorities when it determines that doing so is in the interest
of the civil service for any other reason.
Subpart B--Strategic Human Capital Management
Sec. 250.201 Coverage and purpose.
The Chief Human Capital Officers (CHCO) Act of 2002 acknowledges
the critical importance of Federal employees to the effective and
efficient operation of Government. As a part of OPM's overall
leadership responsibilities in the strategic management of the Federal
civil service, and pursuant to 5 U.S.C. 1103, OPM is responsible for
designing a set of systems, including standards and metrics, for
assessing the management of human capital by Federal agencies. In this
subpart, OPM establishes a framework of those systems, including system
components, OPM's role, and agency responsibilities.
Sec. 250.202 Office of Personnel Management responsibilities.
(a) As the President's chief human capital officer, the Director of
OPM provides Governmentwide leadership and direction in the strategic
management of the Federal workforce.
(b) To execute this critical leadership responsibility, OPM
defines, and from time to time revises, the Human Capital Assessment
and Accountability Framework (HCAAF), to describe the concepts and
systems for planning, implementing, and evaluating the results of human
capital management policies and practices. The link to the HCAAF is
available on the OPM Web site at http://www.opm.gov. In addition, OPM
issues, and from time to time revises, the related set of assessment
systems required by the CHCO Act as the HCAAF Systems, Standards, and
Metrics (HCAAF-SSM), also available at the OPM Web site. Each such
assessment system associated with the HCAAF consists of:
(1) A standard against which agencies can assess the results of
their management of human capital; and
(2) Prescribed metrics, as appropriate, for organizational
outcomes, employee perspective, and compliance measures with respect to
relevant laws, rules and regulations.
(c) Together, the HCAAF and the HCAAF-SSM guide agencies in
planning, evaluating and improving the efficiency and effectiveness of
agency human capital management with respect to:
(1) Alignment with executive branch policies and priorities, as
well as with
[[Page 29595]]
individual agency missions, goals, and program objectives, including
the extent to which human capital management strategies are integrated
into agency strategic plans and performance budgets prepared under OMB
Circular A-11;
(2) Identifying and closing competency/skill gaps in the agency's
mission-critical occupations; ensuring leadership continuity through
the implementation of recruiting, development, and succession plans;
sustaining an agency culture that values, elicits, identifies, and
rewards high performance; and developing and implementing a knowledge
management strategy, supported by appropriate investment in training
and technology; and
(3) Holding the agency head, executives, managers and human
resources officers accountable for efficient and effective human
capital management, in accordance with merit system principles.
Sec. 250.203 Agency responsibilities.
(a) To assist in the assessment of the management of human capital
in the Federal Government, and to help meet the statutory requirements
to prepare that portion of the performance budget for which agency
Chief Human Capital Officers are accountable as well as relevant
portions of performance and accountability reports, heads of agencies
or their designees must maintain a current human capital plan and
provide OPM an annual human capital accountability report, as outlined
below, based on an approved human capital accountability system. The
HCAAF and the HCAAF-SSM provide more specific information on coverage
and content for the plan and report.
(1) Human Capital Plan. Using a format established by agreement
between the agency and OPM, at a minimum the plan must include:
(i) Human Capital Goals and Objectives. These are a comprehensive,
integrated set of human capital goals and objectives, with detailed
policy and program priorities and initiatives as appropriate,
consistent with agency strategic plans and annual performance goals.
These human capital goals and objectives must address each of the human
capital management systems included in the HCAAF.
(ii) Workforce Analysis. This analysis of the agency's workforce
describes its current state, projects the human resources needed to
achieve the agency's program performance goals and objectives during
the term of the agency's strategic plan, and identifies potential
shortfalls or gaps. An ongoing analysis must, for relevant agency
mission requirements, describe the occupation(s) most critical to
agency performance (including associated managerial and executive
positions) and describe mission-critical competencies and key
demographics (e.g., talent analyses, turnover, and retirement
eligibility); and for each such occupation, describe its current and
projected staffing levels, attrition and hiring estimates, and proposed
training and development investments.
(iii) Performance Measures and Milestones. One or more human
capital metrics, as well as appropriate program milestones, for each
human capital goal or objective, provide a basis for assessing progress
and results, including compliance measures with respect to relevant
laws, rules and regulations. These metrics must include, but are not
limited to, those described in the HCAAF-SSM issued under Sec.
250.202(b). These metrics and milestones must be specifically linked to
broader agency program performance measures, to evaluate the impact of
the agency's human capital management on its overall mission
performance.
(2) Human Capital Accountability System and Report. This system
provides for an annual assessment of agency human capital management
progress and results including compliance with relevant laws, rules,
and regulations. That assessment is conveyed in an annual human capital
accountability report to OPM. The human capital accountability system
must be formal and documented; be approved by OPM; be supported and
resourced by agency leadership; measure and assess human capital
management systems for mission alignment, effectiveness, efficiency,
and compliance with merit system principles, laws, and regulations;
include an independent audit process with periodic review of human
resources transactions to insure legal and regulatory compliance;
ensure that action is taken to improve human capital management
programs and processes and to correct deficiencies; and ensure results
are analyzed and reported to agency management and OPM. At a minimum,
the agency's annual human capital accountability report must:
(i) Provide an evaluation of and report on the agency's existing
human capital management policies, programs, and operations, as they
relate to the agency's overall mission/program performance. The report
must address the performance measures and milestones contained in the
agency human capital plan including compliance measures with respect to
relevant laws, rules and regulations. The report must also document
actions taken to correct any violations or deficiencies that are
identified.
(ii) Inform the development of human capital goals and objectives
during the agency's strategic planning and annual performance budget
formulation process, as well as the treatment of human capital results
during the annual performance and accountability reporting process.
(b) The Director of OPM may, at his or her discretion, grant a
variation from any requirement of this section under 5 CFR 5.1. A
request for a variation must be submitted by the head of the requesting
agency, and must be based on conditions specific to the requesting
agency. The Director's decision granting or denying the variation
request has no precedential effect under 5 CFR 5.1(a).
[FR Doc. E6-7784 Filed 5-22-06; 8:45 am]
BILLING CODE 6325-39-P