Defense Financial Highlights

President recommends 1% pay raise in 2015 for federal civilian personnel

Tuesday, September 2nd, 2014

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President Obama last week notified Congress that he has determined that federal civilian employees should receive a 1 percent across-the-board pay raise in 2015. In March, the president included a 1 percent civilian pay raise in his FY2015 budget request.

The president also kept locality pay at the 2014 level.

President Obama acknowledged the sacrifices already made by federal civilian employees, such as a three-year pay freeze through January 2014. However, he cited the need to keep the country on a “sustainable fiscal course” as the reason for limiting the pay raise to 1 percent and freezing locality pay.

Each year the president is required under Title 5, section 5304a, U.S.C. to present an alternative pay plan for across-the-board pay and locality pay adjustments. Unless Congress acts the president’s alternative proposal will automatically go into effect.

To date, Congress has expressed general support for a 1% civilian pay raise.  The House-passed FY2015 Financial Services and General Government Appropriations bill was silent on the pay raise. This indicates passive support for the president’s 1% pay raise proposal in that it does not reject it. The Senate Appropriations Committee, in its approval of the FY2015 DoD Appropriations bill, also includes funds for a 1 percent civilian pay raise. No other appropriations committees’ action to date would prohibit a 1% civilian pay raise.

The military pay raise for 2015 will be at least 1 percent, as the president proposed in the FY2015 budget request. The House-passed FY2015 Defense Authorization bill provides a 1.8 percent military pay raise, while the Senate Armed Services Committee’s (SASC) approved bill includes a 1 percent military pay raise

Marine Corps changes special duty assignment pay rates

Friday, August 29th, 2014

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The Marine Corps has revised special duty assignment pay rates for FY2015. Starting on October 1, 2014 most Marines on special duty will receive lower rates than have been paid previously.

The new rates will apply to billets such as recruiters, drill instructors, combat instructors, and embassy security guards. However, special pays for Marines who began serving in special duty assignments before October 1 will not be affected.

The change, which will save the Marine Corps $35 million over five years, was made in response to ongoing budget limitations.

The Marine Corps (as well as the other services) have had to take a hard look at all programs, including some pay items, to meet budgetary constraints. “We spent a significant amount of time evaluating all relevant factors before making a final decision on the changes,” Marine Corps compensation chief 1st Lt. John Krahling said in a news release.

He pointed out that most of Military Pay cannot be changed because it is mandated by law. Only four percent of the Military Personnel Pay account, such as bonuses and special pays, can be adjusted to achieve cost savings.

Krahling emphasized that the Marine Corps is trying to maintain the integrity of the special pay program. “Every billet and assignment that receives special duty will continue to do so,” he said.

Air Force partners with GSA to improve buying efficiency

Monday, August 25th, 2014

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In a move to achieve savings while buying products and services more efficiently, the Air Force has entered into a partnership agreement with the General Services Administration (GSA).

The Air Force’s Sustainment Center (AFSC) and GSA’s Federal Acquisition Service (FAS) signed a Memorandum of Understanding (MOU) earlier this month. The MOU, announced by GSA on August 18, 2014, will “assist the AFSC to more effectively obtain the products and services they need to accomplish their mission and serve the American people,” according to a GSA Blog post.

The agreement sets up a working group to identify potential GSA contracts that the Air Force could use. Some of the FAS programs that might assist the Air Force include: professional services contracts; General Supplies and Services Fourth Party Logistics program; Federal Strategic Sourcing Initiative (FSSI); and Global Supply Special Order Program (SOP).

This agreement follows the MOU the Air Force signed with GSA in December 2013. That agreement was for the AF use of the One Acquisition Solution for Integrated Services (OASIS) and OASIS small business contracts to buy complex professional services.

The AFSC , headquartered at Tinker Air Force Base, Oklahoma City, “provides critical sustainment for the Air Force’s most sophisticated weapons systems, including: A-10 Thunderbolt II, AC-130, B-1 Lancer, B-52 Stratofortress, and C-5 Galaxy.”  

Per Diem rates for federal employees unchanged for FY2015

Tuesday, August 19th, 2014

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The General Services Administration (GSA) has announced the daily Per Diem reimbursement rates for federal employees in FY2015.

Per Diem rates in Standard areas in the Continental United States (CONUS) for lodging will be $83 in FY2015, unchanged from rates in FY2014. Rates for and meals and incidental expenses (M&IE) will also remain unchanged at $46.  The Standard area rate covers most of the continental CONUS counties. 

GSA sets per diem rates for locations in CONUS.  These rates are the maximum amounts a federal employee can receive as reimbursement for allowable expenses while on official duty travel. 

The GSA Per Diem Bulletin FTR 15-01 states that Per  Diem rates for lodging for the some 400 Non-Standard areas (NSAs) will vary depending on local conditions. The MIE rate for NSAs will to range from $46 to $71, also unchanged from FY2014. 

All rates are effective on October 1, 2014.

There will be two new NSAs in FY2014: Kayenta, AZ (Navajo County) and San Angelo, TX (Tom Green County).

GSA also announced changes for some locations in FY2015. Elmore County, ID will be included with Sun Valley, ID NSA. Middlebury, VT (Addison County) NSA will be combined with the Burlington/St. Alban’s, VT (Chittenden/Franklin Counties) NSA. And, the Manhattan NSA has will be renamed New York City (NYC). GSA no longer sets rates for individual NYC boroughs.

In addition, the following NSAs will move to the Standard category: Glenwood Springs/Grand Junction, CO; Lakeville, CT; Chesapeake/Suffolk, VA; Lake Geneva, and WI; Sheridan, WY.

White House establishes U.S. Digital Service

Thursday, August 14th, 2014

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The Office of Management and Budget (OMB) announced this week the establishment of the U.S. Digital Service. OMB called this initiative a key component of efforts to improve and simplify the government’s delivery of services through information technology (IT).

This initiative follows on the successful efforts last fall by a group of IT experts brought into government to fix the HealthCare.gov. website.

According to a blog posted on the OMB website, “the Digital Service will be a small team made up of our country’s brightest digital talent that will work with agencies to remove barriers to exceptional service delivery and help remake the digital experience that people and businesses have with their government.”

The first administrator of the Digital Service will be Mikey Dickerson, who was an integral part of the group that worked to fix HealthCare.com. Dickerson, a former Google site reliability engineer, will also become the Deputy Federal Chief Information Officer. He has described himself not as a policy expert but as one who knows “how to make big distributed systems work technically.”

The new team expects to hire people who “have talent and expertise in a variety of disciplines, including procurement, human resources, and finance.”

OMB expects the Digital Service to achieve its mission by: 1) establishing standards to align the government’s digital services with best in the private sector; 2) identifying common technology patterns to scale services effectively; 3) collaborating with agencies to fix gaps in their ability to design, develop, deploy, and operate top-notch customer interface services; and 4) to provide accountability to ensure results.

Concurrent with this announcement, OMB released two critical components of the IT toolkit to support the work of the Digital Service. The Digital Services Playbook will guide leveraging private-sector best practices and the TechFAR Handbook will help ensure agencies get the right technical tools to buy digital services consistent with the Federal Acquisition Regulation (FAR).

OMB will fund the Digital Team in FY2014 with existing funds and “will scale in 2015 as outlined in the President’s FY 2015 Budget.”

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