OPM issued a memo titled “Guidance on Agency RIF and Reorganization Plans” to all federal agencies on February 26, directing them to develop comprehensive reorganization plans by March 13. Large-scale reductions in force (RIFs) are anticipated.
This appears to be one of the most significant reorganizations and changes to the federal executive branch in my lifetime. It is a large-scale change that will impact most if not all department and agency operations in one way or another.
AGENCY RIF AND REORGANIZATION PLANS (ARRP)
Agencies are tasked with eliminating non-statutorily mandated functions while focusing on the quality and most efficient delivery of their statutorily required functions.
ARRPs must improve services, increase productivity, reduce unnecessary positions, reduce real property, and improve the budget topline.
The memorandum states, “Agencies should also seek to consolidate areas of the agency organization chart that are duplicative; consolidate management layers where unnecessary layers exist; seek reductions in components and positions that are non-critical; implement technological solutions that automate routine tasks while enabling staff to focus on higher-value activities; close and/or consolidate regional field offices to the extent consistent with efficient service delivery; and maximally reduce the use of outside consultants and contractors.”
These plans are to be developed in two stages.
PHASE ONE
Phase 1 ARRPs are focused on initial agency cuts and reductions, and must be submitted to OMB and OPM for review and approval by March 13.
Each plan addresses eight areas, from identifying agency subcomponents or offices that provide direct services to citizens to recommendations for submitting an agency’s timetable and plan for implementing each part of its ARRP.
Agencies must determine if any subcomponents should be eliminated or consolidated, list all positions categorized as essential for exclusion from large-scale RIFs, and identify any subcomponents that should be expanded to deliver on the President’s priorities.
This is a monumental task for agencies, and their administrative staff and supervisors will be burning the midnight oil to submit their reports on time. They have until March 13, it will be difficult to put together a well-thought-out comprehensive plan with such a short turnaround time. That’s just phase one.
PHASE TWO
The agency’s Phase 2 plans must be submitted to OMB and OPM for review and approval by April 14, and implemented by September 30. Agencies must submit a timetable for implementing each part of their plan and a plan for monitoring and accountability in implementing their ARRPs.
The Phase 2 plan encompasses 17 major areas, providing future-state organizational charts, detailed personnel reviews, identifying federal office hubs, consolidations, new career appointments, preparing for RIFs, and improving technology.
The personnel data reviews are extensive and include each employee’s official position description, four most recent performance ratings of record, retention service computation date, and veterans’ preference status.
Other areas include identifying proposed relocation of agency bureaus and offices from Washington, D.C., and the National Capital Region to less-costly parts of the country. The list is extensive. The plans must also explain how the ARRPs will improve services for Americans and advance the administration’s priorities.
The memo states, “For agencies that provide direct services to citizens (such as Social Security, Medicare, and veterans’ health care), the agency’s certification that implementation of the ARRPs will have a positive effect on the delivery of such services. The certification should include a written explanation from the Agency Head and, where appropriate, the agency’s CIO and any relevant program manager.”
SUMMARY
Agencies or components providing direct services to citizens (such as Social Security, Medicare, and veterans’ health care) can’t implement any proposed reorganization plans until OMB and OPM certify that the plans will positively affect the delivery of their services.
Exclusions include the Postal Service, law enforcement, border security, national security, immigration enforcement, or public safety responsibilities. This extends to military personnel in the armed forces and all Federal uniformed personnel.
An appendix outlines the RIF procedures with a completion timeline. Fortunately, they are also exploring early retirement options using the Voluntary Early Retirement Authority (VERA) with a Voluntary Separation Incentive Payments (VSIP) to limit RIFs. The incentive payments were previously capped at $25,000; however, Congress could authorize higher payments to attract more people to retire early.
According to the directive, positions subject to a RIF could be identified as early as March 13, the due date for agencies to submit their Phase 1 report. Full implementation is targeted for September 30.
The formal RIF Notice Period is 60 days, it can be shortened to 30 days with an OPM waiver. Much has to happen before RIF notices or early retirement offers are announced, and funds have to be allocated to cover the cost of the reorganizations before they can proceed.
