Article 26
Contracting Out

Section 1. General

a. The Department acknowledges its responsibility to adhere to law and applicable Government-wide regulations regarding the use of experts, consultants and contractors’ employees.
b. Upon request of a specific contract relating to contractors, the Department shall provide to Local 12 within thirty (30) days a copy of the contract, with proprietary or privacy act information redacted.
c. It is the policy of the Department that a bargaining unit employee will be supervised by supervisory personnel of the Department and not by personnel of a contractor.
d. At the request of the Union, Management will meet to explain the rationale for the FAIR Act classification decisions.

Section 2. A-76 Competitive Sourcing/Commercial Activity Process

The parties have a mutual interest in ensuring constructive employee involvement in implementing the Commercial Activities (A-76) studies initiated by the Department. Therefore:
a. The Department shall notify the Union within five (5) workdays of its decision to use an A-76 competition to determine if government personnel should continue to perform work or contract out work that is currently performed by bargaining unit employees. The notice shall identify the affected units and the functions, positions and grade levels of bargaining unit employees affected. The Union shall be notified of all relevant data and information as they become available, including schedules, milestone charts, invitations for bid or requests for proposals, and performance work statements (PWS).
b. The Union may appoint a bargaining unit employee on each PWS and Most Efficient Organization (MEO) Team, consistent with OMB Circular A-76 guidelines. An employee may serve on the PWS Team or the MEO Team, but not both. Members of the PWS and MEO Teams will be provided relevant training. In accordance with Article 41, the Union representatives on the PWS and MEO Teams may request a reasonable amount of official time in connection with Team activities.
c. The organizational entity holding an A-76 competition shall hold regular meetings to discuss the status of the competition with all affected employees, including bargaining unit employees.
d. Management will notify the Union of its decision to contract out work that is currently performed by bargaining unit employees. Such notice will include information regarding any feasibility or cost studies that have been performed, authorized staffing levels, number of position vacancies, their grade and description, indirect costs and, where applicable and available, that information required by OMB Circular A-76.
e. Upon receipt of notification of Management’s decision to contract out work that is currently performed by bargaining unit employees, the Union may request bargaining in accordance with Article 36.
f. The Department shall provide Local 12 a copy of the performance work statement and contract solicitation document when they are released by the contracting officer.

Section 3. Personnel Considerations for Displaced Employees

a. Provisions contained in Article 27 also cover displaced employees. Displaced employees are entitled to the training referenced in Article 19 but is not limited it. Displaced employees also will receive counseling, to include a discussion concerning the value of individual development.
b. Displaced employees are those identified for release from their competitive level by an Agency, in accordance with 5 CFR Part 351 and Chapter 35 of Title 5, United States Code, as a direct result of a decision to convert to contract (contracting out) or accept the Agency’s Most Efficient Organization (MEO).
c. Federal employees displaced by a decision to convert to contract or public reimbursable source performance have the Right-of-First-Refusal for jobs for which they are qualified that are created by the award of conversion.

(1) A standard clause should be included in A-76 cost comparison solicitations notifying potential contractors of this requirement (see Federal Acquisition Regulations [FAR] 52.207-3). The Right-of-First-Refusal is afforded to all Federal employees displaced by the decision to convert to contract performance.
(2) Human Resource Officers should work with the contracting officer and employees to implement these provisions.

d. Agencies should exert maximum efforts to find available positions for Federal employees displaced by conversion decisions, including:

(1) Giving priority consideration for available positions within the Agency;
(2) Establishing a Reemployment Priority List and an effective placement program;
(3) Paying reasonable costs for training and relocation that contribute directly to placement; and
(4) Registration in the Career Transition Assistance Program (CTAP) and the Interagency Career Transition Assistance Program (ICTAP).