1 FAA Reform: Congressional Staff Briefing January 24, 1996

2 Personnel Reform Language from the 1996 DOT Appropriations Bill Sec (a) In consultation with the employees of the Federal Aviation Administration and such non-governmental experts in personnel management systems as he may employ, and notwithstanding the provisions of title 5, United States Code, and other Federal personnel laws, the Administrator of the Federal Aviation Administration shall develop and implement, not later than January 1, 1996, a personnel management system for the Federal Aviation Administration that addresses the unique demands on the agency’s workforce. Such a new system shall, at a minimum, provide for greater flexibility in the hiring, training, compensation, and location of personnel.

3 Exceptions and Effective Date (b) The provisions of title 5, United States Code, shall not apply to the new personnel management system developed and implemented pursuant to subsection (a), with the exception of -- (1) section 2302(b), relating to whistleblower protection; (2) sections , relating to veterans’ preference; (3) section 7116(b)(7), relating to limitations on the right to strike; (4) section 7204, relating to antidiscrimination; (5) chapter 73, relating to suitability, security, and conduct; (6) chapter 81, relating to compensation for work injury; and (7) chapters 83-85, 87, and 89, relating to retirement, unemployment compensation, and insurance coverage. (c) This section shall take effect on April 1, 1996.

4 Procurement Reform Language from the 1996 DOT Appropriations Bill SEC (a) In consultation with such non-governmental experts in acquisition management systems as he may employ, and notwithstanding provisions of Federal acquisition law, the Administrator of the Federal Aviation Administration shall develop and implement, not later than January 1, 1996, an acquisition management system for the Federal Aviation Administration that addresses the unique needs of the agency and, at a minimum, provides for more timely and cost-effective acquisitions of equipment and materials.

5 Exemptions and Effective Date ( b) The following provisions of Federal acquisition law shall not apply to the new acquisition management system developed and implemented pursuant to subsection (a): (1) Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C ). (2) The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.). (3) The Federal Acquisition Streamlining Act of 1994 (Public Law ) (4) The Small Business Act (15 U.S.C. 631 et seq.), except that all reasonable opportunities to be awarded contracts shall be provided to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals. (5) The Competition in Contracting Act. (6) Subchapter V of chapter 35 of title 31, relating to the procurement protest system. (7) The Brooks Automatic Data Processing Act (40 U.S.C. 759). (8) The Federal Acquisition Regulation and any laws not listed in (a) through (e) [1 through 8] of this section providing authority to promulgate regulations in the Federal Acquisition Regulation. (c) This section shall take effect on April 1, 1996.

6 The Bottom Line of Reform GPRA NPR Performance Based Budget Budget Enforcement Act Free Flight User Fees Customer Service Standards Reengineering FAA Reform Works Better Costs Less

7 FAA Approach to Personnel and Acquisition Reform l Retain the sound principles contained in laws and policies developed over the years –Equal Opportunity and Fairness in employment practices –Competition in contracting l Develop management systems and processes to implement these principles in an effective and efficient manner –Consistent with future budget constraints –Increasing Productivity –Incorporating best practices from industry and other agencies –Supporting business-like management decisions

8 Reform as the Bridge to the Future Current FAA Rule-based Compliance Manage Allowance Internal Focus Future FAA Results-Oriented Incentives Revenue and Investment Management Customer Driven REFORM FAA

9 First Steps Toward the Future Current FAA Rule-based Compliance Manage Allowance Internal Focus Future FAA Results-Oriented Incentives Revenue and Investment Management Customer Driven FAA in 1996 Performance-based Limited incentives Cost Management Focus on Service and Product Delivery

10 FAA Reform Organization

11 Personnel Reform: Overview l Goal is increased flexibility in hiring, training, compensation, and location of personnel l Approach –Personnel Advisory Board with six working groups –Four phases of planning, development, and implementation with extensive employee and union involvement l Schedule –Broad Policy and detailed implementation plan by April 1996 –Implementation through September 1997

12 Acquisition Reform: Overview l Goal is to establish a process to acquire quality products and services in an economical and timely manner reflecting sound business judgment l Approach –Steering Committee with four working groups –Parallel development of acquisition and procurement (contract) reform efforts –Phased products to maximize early impacts l Schedule –New large, competitive contracting process and NDI acquisition process by April 1996 –Implementation of other revisions through November of 1996

13 Focus of other Reform Groups l Financial –Identifying alternative sources of revenue and the cost accounting and management controls needed to meet the requirements of the President’s Budget and FAA reform legislation l Reauthorization –Developing a reauthorization proposal consistent with current FAA structure and future directions for submission to Congress in February l DoD Negotiations –Establishing policy and process for reimbursement of FAA for services provided to DoD

14 Focus of other Reform Groups l Productivity –Identifying opportunities and developing strategies to decrease costs and increase the level and quality of FAA services and products l Regulation –Developing strategies and reengineering processes to meet new rulemaking requirements in FAA reform legislation

15 FAA Personnel Reform Schedule 3/8 Preliminary Business Case with Cost-Benefit Implementation through 9/97 12/4 Kick-off of Task Forces 2/29 Quick Hit and Long-Term Initiatives Identified 2/9 Operational Visions for each Task Force 4/1 Final Business Case and Implementation Action Plans

16 FAA Acquisition Reform Schedule 1/16 Extended outline of acquisition management system report 4/1 Implement first phase of new acquisition management system Implementation through 11/96 2/15 Draft of new procurement system and acquisition policy 11/6 All Acquisition Reform Teams Convened

17 FAA Reform Outreach Efforts to Obtain External Subject Matter Experts l Personnel Reform –Human resource consultants with extensive private sector expertise in personnel management systems –Best practice interviews with industry l Acquisition Reform Blue Ribbon Panel –Experts from industry, government, and academia –On-going review and input through “challenger” sessions –Independent report on FAA’s progress

18 Current Union Involvement in FAA Reform Efforts l Union representatives from all recognized bargaining units participating in the FAA reform effort l Involvement concentrated in the personnel reform working group –6 members on the Personnel Reform Advisory Board (PRAB) -- The steering group for personnel reform –17 members on the personnel reform task force teams

19 Schedule for Future Briefings to Members of Congress and Staff l On or about February 15, 1996 –Status report on Personnel Reform –Status report on Acquisition Reform l On or about March 5, 1996 –Status report on Personnel Reform –Status report on Acquisition Reform l On or about March 25, 1996 –Preview of new personnel management system –Preview of new acquisition management system