PCS Relocations Services Update Financial and Projection Analysis May 2007 Steve Futch HR (CS) National Aeronautics and Space Administration

National Aeronautics and Space Administration PCS Relocation Services 2 Background NSSC total cost estimate for PCS/Relocation Services activity was based on FY2002, FY2003, and FY2004 data, including cost of home purchases - FY2002 $1.5 million FY2003 $1.6 million FY2004 $3.3 million ($2.5 prelim. est. based on funded amt.) NSSC included $2.5 million to cover activity based on funded amount Cost rose sharply in FY2005 and FY2006 FY2005 $6.7 million FY2006 $7.2 million (est. based on funding) Environmental changes caused growth in the overall number of PCS moves and unit costs to nearly double: –Hiring rose sharply with Return-to-Flight hiring, mandate for inter-center hiring to rebalance workforce, and staffing of NSSC –Sell price of housing rose sharply –Increase in Appraised Value Offer Sales –Implementation of NASA Flexibility Act allowed for enhanced PCS incentives for new employees FY2007 $10.6 million (est. based on projected requests)

National Aeronautics and Space Administration PCS Relocation Services 3 Current Direction NSSC determined it was in Agency’s best interest to extend the current KSC BPA for PCS/Relocation Services for the following reasons – –The magnitude of the change given this is an A-76 contract –Variability of estimating activity fluctuations –Excludes PCS/Relocation Services from WCF –Allows Centers more control –There is no adverse impact on NSSC contract NSSC Human Resources and Procurement is evaluating longer term alternatives including procuring a direct contract or modifying the CSC contract to include these services as an IDIQ element.

National Aeronautics and Space Administration PCS Relocation Services 4 Updated Approach FY07 Procurement Approach » KSC’s BPA transferred to NSSC (KSC will Retain Administrative Responsibility for Relocation Services Procured Prior to October 1, 2006.) » NSSC takes over administration of current BPA » Investigate longer term contracting alternatives HR Approach » PCS counseling continues to be provided by Cartus on existing BPA » CSC role redefined to include – Tracking Center funding Performance Management (customer surveys, metrics, etc.) Receive calls through Customer Contact Center Administer web form and 1450 Q&A and distribution

National Aeronautics and Space Administration PCS Relocation Services 5 Updated Approach Continued FY08 Procurement Approach » Modify existing NSSC contract with CSC and/or » Re-compete PCS/Relocation Services contract prior to FY08 Award multi-year agency-wide contract to winning bidder for FY08 and future activity Centers responsible for awarding and administering task orders HR Approach » Update processes related to new contracting approach prior to FY08 activity » NSSC HR (CS) to continue providing oversight for ongoing activity

National Aeronautics and Space Administration PCS Relocation Services 6 Center/Customer Impact Centers will initiate PCS move activities by notifying the NSSC via approved web form with appropriate supporting documentation Center Personnel requesting PCS/Relocation Services will now call the NSSC Customer Contact Center rather than directly calling Cartus –Updated Communication plan to be implemented –Minimal impact to Centers – NSSC serves as an advocate for NASA concerning requests placed with Cartus Centers generate Purchase Requests to transfer money to NSSC to fund BPA in FY07 Centers responsible for awarding and administering task orders in FY08 with funding allocated WCF funding for PCS/GHS activity not collected from Centers

National Aeronautics and Space Administration PCS Relocation Services 7 Projected PCS Moves and Estimated Cost by Center (FY07)

National Aeronautics and Space Administration PCS Relocation Services 8 Total PCS Moves Item per Fiscal Year FY06 Plan FY 06 ActualsFY 07FY 08FY 09FY 10FY 11FY 12FY 13 # of PCS Moves ARC DFRC GRC GSFC HQ JSC KSC LARC MSFC SSC TOTAL

National Aeronautics and Space Administration PCS Relocation Services 9 PCS Moves with GHS Item per Fiscal Year FY06 Plan FY 06 ActualsFY 07FY 08FY 09FY 10FY 11FY 12FY 13 # of PCS Moves Requiring Home Purchases using the GHS Option ARC DFRC GRC GSFC HQ JSC KSC LARC MSFC SSC TOTAL