Federal Managers Association

To view a copy of the letter, please visit the Members Only section of the FMA Web site at: www.fedmanagers.org.

SPIRITED AGENDA SET FOR FMA’S 17TH MID-YEAR CONFERENCE

The Federal Managers Association’s (FMA) 17th annual Mid-Year Conference, Where Leadership in Government Began, kicks off on August 6, 2008, and promises to be one of the most dynamic and successful Mid-Year conferences in recent history.

Throughout the three-day event, FMA delegates will participate in a dialogue on membership and association priorities, as well as take part in sessions on management training and retirement planning. In a slight deviation from past conferences, the management and retirement training will take place over a day and a half.

The main training day, entitled, Re-energize Your Career: Explore Your Talents and Discover New Techniques , will take place on Friday, August 8th. Delegates will hear from a variety of speakers in four separate sessions. The subjects of the training sessions include: The Big Picture... Your Career Development; Greening the Government; Organizing Yourself and Others - Is It Possible? ; and, Beat Burnout - Renew Your Enthusiasm. Those participating in the training day will also be part of a luncheon honoring the Manager of the Year recipient.

The training continues on Saturday morning with a session on preparing for long term care presented by Joan Melanson of Long Term Care Partners. The Conference will wrap up late Saturday afternoon.

Additionally, this year, several special after hours events have been planned for delegates and their guests. On Wednesday, August 6th, delegates are welcome to join FMA for a Recruitment Reception. Please bring any managers and supervisors in your agency to learn what FMA is all about! On Thursday, FMA Chapter 82 is proud to host a special, private tour of the U.S. Mint and its shop areas. In addition to the private tour through the shop, the trip also includes a public tour of the premises. On Friday, delegates and guests are invited to join FMA for a night out at the ballpark. The Philadelphia Phillies will take on the Pittsburgh Pirates at 7 p.m. and tickets are available for $35, which includes transportation to and from the game. After closing ceremonies on Saturday, a bus trip to Atlantic City has been organized by FMA Chapter 208. The cost of the roundtrip bus ride is $25.

To register for the Conference, the Management Training Seminar, the Retirement Planning Seminar, or for more information on the event please visit FMA online at www.fedmanagers.org. Registration is still available through August 1st!

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WHAT’S HAPPENING ON CAPITOL HILL?

HOUSE COMMITTEE ADDRESSES TSP MANAGEMENT

On July 10, 2008, the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service, and District of Columbia convened to address the low participation rates of minorities in the management of Thrift Savings Plan (TSP) funds while at the same time examining the government’s use of passive versus active management strategies

Entitled, Investing in the Future: Minority Opportunities and the Thrift Savings Plan, the hearing, led by Chairman Danny Davis (D-Ill.), highlighted the conflicting views in terms of management techniques held by various individuals and groups with a vested interest in TSP. The majority of witness testimony reflected the Committee’s belief that current economic trends dictate a necessary structural shift in TSP and that such a shift would most likely benefit minority involvement in TSP management.

The TSP, the federal government’s retirement plan, manages over $226 billion from nearly four million participants. By current law, TSP stock and bond funds must be passively-managed for the exclusive benefit of the fund’s participants. By being passively-managed, Davis stated in his opening remarks, “[TSP] funds seek to replicate the broad markets, not beat them, often creating savings for participants because of their traditionally lower fees.” In an economic climate described by Delegate Eleanor Holmes Norton (D-D.C.) as, “[nothing] we have ever seen,” and, “the perfect storm,” the Committee suggested that management of the TSP warrants review when such a large amount of money is invested by so many hard working federal employees.

Although Committee members stressed the importance of extending TSP management roles to minority firms at the hearing’s onset, discussion during the first panel’s session quickly shifted the hearing’s focus to general management strategies. The ensuing dialogue with subsequent panels revealed that increased minority participation in TSP management would come as a result of, rather than serving as a primary cause for, a shift in management techniques.

Former Board Chair of the Teacher Retirement System of Texas, Jarvis Hollingsworth, told the Subcommittee that external investment managers that could lend their skills to TSP “often specialize in specific strategies that have been refined over time,” and are able, “to identify and develop additional strategies with above-average returns or desirable diversification characteristics.” Working with such external managers allows for increased returns, “without incurring prohibitive development costs of refining new strategies through trial and error,” argued Hollingsworth. Since minority firms are composed of a significant portion of the managers described in the above statement, the panel agreed minority participation would naturally follow adoption of such a strategy.

Chairman Davis said he would like to continue discussions on all topics covered during the hearing, working closely with the Federal Retirement Thrift Investment Board and panel members in the near future to further evaluate the evolution of TSP.

For more information on the hearing, please visit: http://federalworkforce.oversight.house.gov/.

SENATE FOLLOWS HOUSE, SUSPENDS COMPETITIVE SOURCING

On July 10, 2008, the Senate Appropriations Committee voted to temporarily halt any new privatization studies or competitive sourcing activities, allowing the next Administration to determine whether contractors or federal employees should perform certain government functions, including jobs available for outsourcing. The Senate’s one year moratorium is identical to a measure passed by the House Appropriations Committee last month.

The moratorium temporarily suspends the government’s competitive sourcing program, the Office of Management and Budget’s (OMB) Circular A-76, which encourages competition for federal jobs by allowing private contractors to offer bids on select projects. The Committee also approved language, contained in the fiscal year 2009 Financial Services and General Government Appropriations bill, seeking to encourage government agencies to return certain jobs currently held by contracted groups to the federal workforce. The Bush Administration has made it clear that they disapprove of the Committee’s moratorium, citing evidence suggesting competition and outsourcing of jobs traditionally conducted by federal employees has saved a significant amount of money. Despite the opposition, both the Senate and the House appear fully committed to suspending all talks regarding the matter for now.

“The Federal Managers Association’s stance on A-76 is clear, and we are very pleased that the Senate is following the House in proposing a moratorium on competitive sourcing,” FMA National President Darryl Perkinson commented. “The practice of outsourcing federal jobs must be reevaluated to determine the true benefit of such a program.”

For more information on the FY09 Financial Services bill, please visit: http://appropriations.senate.gov/.

NEW SCHOLARSHIP PROPOSAL AIMED AT BOLSTERING RECRUITMENT

Representative David Pryce (D-N.C.) recently introduced H.R. 6160, the Roosevelt Scholars Act of 2008, to encourage outstanding graduate students in mission-critical fields to pursue a career in the federal government. Modeled after the military ROTC program, the Roosevelt Scholars program provides full tuition, along with financial support for room and board, to graduate students exemplifying the traits and characteristics considered ideal for work in the public sector.

According to statistics provided by the Office of Personnel Management, roughly 550,000 federal employees will leave the government over the next five years. In the next two years alone, federal agencies must hire over 193,000 new employees to fill mission-critical positions. With the rising costs of graduate programs, students often face enormous amounts of debt upon completion of academic programs. Student debt is one of the greatest deterrents that drive talent away from the public sector, averaging $32,900 for students graduating from master’s programs, rising to $125,800 for students receiving MDs, according to the Partnership for Public Service.

All students either enrolled in or applying to accredited full-time graduate programs would be eligible to apply for the scholarship. Each student could receive a maximum of $60,000 annually, which includes a stipend for daily expenses. While receiving support from the scholarship fund, students would be expected to complete a federal agency internship program. Upon graduation, students are required to serve the government for a minimum of three years. Those students in PhD or medical programs would be expected to serve an additional year of service for every year they continue to receive the scholarship’s support, with the maximum commitment lasting five years. Students would first serve the federal government under a two year excepted appointment authority upon graduation, and if their work is deemed satisfactory, the agency under which they are assigned must appoint the scholar to a full-time, permanent position.

For more information on the Roosevelt Scholars Program, please visit: http://thomas.loc.gov/.

STATE DEPARTMENT STRUGGLES WITH FOREIGN SERVICE VACANCIES

The Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia met on July 16, 2008, to discuss the lack of adequate staffing resources facing the State Department. The hearing addressed the difficulty facing the State Department’s attempts to fill vacant positions critical to serving the United States’ interests in international diplomacy.

Chairman Daniel Akaka (D-Haw.) told the audience during the hearing entitled, A Domestic Crisis with Global Implications: Reviewing the Human Capital Crisis at the State Department, “Too often, human capital and agency management are lost amongst the many priorities of agency leadership.” Akaka argued, and Ambassador Harry Thomas, Director of Human Resources at the State Department, agreed, that too often foreign service junior officers are performing tasks above their grade, while senior officers are being pulled in too many directions. Senator George Voinovich (R-Ohio) echoed Akaka’s concerns, highlighting the 13.3 percent vacancy rate afflicting the foreign service at home and abroad as especially disconcerting.

When the Committee asked John Naland, president of the American Foreign Service Association (AFSA),to describe the value and utilization of funds currently appropriated for the State Department to address the human capital crisis, Naland responded that the funds would serve only as “a stepping stone” in addressing the overall issue. Not only is the issue filling the vacant positions within the service, Naland continued, but training of Foreign Service Officers must be vastly improved to equip these individuals with the necessary tools to represent the U.S. internationally to their best abilities.

“Our standing and respect in the world is in dire need of improvement, and our national security relies heavily on our standing in the world,” Akaka told his audience. “The ability of the U.S. to execute its foreign policy priorities depends on these professionals to implement the policy.” Securing the necessary funding to make a serious dent in the hiring needs of the State Department, however, will most likely have to wait until the next administration, according to the Committee and panels alike.

For more information on the hearing, please visit: http://hsgac.senate.gov/.

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WHAT’S NEW IN THE EXECUTIVE BRANCH?

OPM, DOD FACING LEADERSHIP OVERHAUL

On July 16, 2008, the Office of Personnel Management (OPM) announced that Director Linda Springer will be stepping down to pursue work in the private sector. The announcement by Springer follows six years of service to the Bush Administration as OPM Director, Controller of the White House Office of Management and Budget, and head of the Office of Federal Financial Management.

Springer began her service as OPM Director in June 2005. She informed the White House last Wednesday of her desire to step down, accepting a new position as Executive Director in the Government and Public Sector Advisory Services Practice of Ernst & Young, LLP. Springer’s last day with the agency will be August 13, 2008.

Upon hearing of Springer’s decision, FMA President Darryl Perkinson commented, “Linda’s candid approach and energy to making things better for federal employees will be missed. In one of the most politically tough jobs in the D.C. agency mix, Linda Springer excelled. I want to thank her for her service and openness in listening as well as seeking the opinions of the Federal Managers Association.”

The Department of Defense (DOD) announced on July 1, 2008, that DOD Inspector General Claude M. “Mick” Kicklighter submitted his letter of resignation to President Bush. Kicklighter will leave the DOD and assume a position at George Mason University beginning this month.

The Department designated Gordon S. Heddell as Acting Inspector General upon the request of the President. Mr. Heddell previously served as Inspector General at the Department of Labor.

NEW SECURITY CLEARANCE PROCESS EMPHASIZES EFFICIENCY

Federal employees and contractors seeking special security clearance in order gain access to classified government materials may no longer have to endure prolonged background checks. The White House issued an Executive Order on June 30, 2008, calling for inter-agency collaboration to develop universal standard procedures by which federal employees and contractors must abide when seeking classified information or employment in a “sensitive position.”

The goal of the order, “to ensure an efficient, practical, reciprocal, and aligned system,” addresses issues that have plagued those seeking security clearances for years. Currently, contractors and federal employees must reapply for security clearance each time they seek information from different agencies. By establishing “reciprocal recognition,” the new standard system would allow access to information from many agencies with a single background clearance procedure. The new clearance practice will also feature “end-to-end automation” in the form of a federated system developed to enhance the government’s ability to monitor and track the application process while maintaining relevant documentation.

The White House reserved the right to require exceptions to the new procedure, depending on the sensitivity level of the information or position desired. The order also calls for continuous evaluation of applicants deemed eligible for clearance to determine if continued eligibility is warranted.

“The aligned system shall employ updated and consistent standards and methods, enable innovations with enterprise information technology capabilities and end-to-end automation to the extent practicable, and ensure that relevant information maintained by agencies can be accessed and shared rapidly across the executive branch, while protecting national security, protecting privacy-related information, ensuring resulting decisions are in the national interest, and providing the Federal Government with an effective workforce,” according to the order.

The order also calls for the establishment of a Suitability and Security Clearance Performance Accountability Council, to be led by the Deputy Director for Management at the Office of Management and Budget, tasked with ensuring clearance reforms are strictly adhered to. The Council will report directly to the President on all issues regarding the procedural system.

The White House order may be found at: www.whitehouse.gov/news/releases/2008/06/20080630-6.html.

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GET INVOLVED AT THESE EVENTS!

REGISTER NOW FOR FMA’S 17TH ANNUAL MID-YEAR CONFERENCE!

Please join us for FMA’s 17 th annual Mid-Year Conference and Management Training Seminar, August 6 – 9, 2008 in Philadelphia, Pennsylvania! This year’s Conference, Where Leadership in Government Began, will be held at the Sheraton Society Hill Hotel. Conference attendees will receive a special room rate of $149/night. You can make reservations by calling the hotel at 215-238-6000 and be sure to let them know you are with the Federal Managers Association Mid-Year Conference. The special rate is available August 3 – 10, 2008.

FMA members are now able to register for the conference via FMA’s Web site at www.fedmanagers.org. Fees for the Conference are as follows:

Early-bird: $325 (until June 27, 2008), Regular: $375, (until July 18, 2008), and Late: $400 (until August 1, 2008). Please continue to check www.fedmanagers.org for the most up-to-date information!

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Long Term Care Partners, LLC , FMA Corporate Partner. Long Term Care Partners is the administrator of t he Federal Long Term Care Insurance Program. Sponsored by the U.S. Office of Personnel Management, the Program is available to Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives. With more than 210,000 enrollees, it is the largest employer-sponsored long term care insurance program in the country. FLTCIP policies are simple to understand and offer enrollees some distinct advantages, including comprehensive coverage, competitive and stable rates, international coverage, and administrative service standards that are the highest in the long-term care insurance industry. Policies are sold direct through a highly-trained, non-commissioned staff with no high pressure sales tactics – simply sound advice. Visit www.LTCFEDS.com or http://www.opm.gov/insure/ltc/index.asp for more information.

Blue Cross Blue Shield Association Federal Employee Program, FMA Corporate Partner: The Blue Cross and Blue Shield Association represents the independent, locally operated Blue Cross and Blue Shield Plans. The 40 local member companies of the Blue Cross and Blue Shield Association have provided millions of families with top-quality, affordable health insurance for more than 70 years. For the one in four Americans who carry Blue Cross and Blue Shield cards, the Blue Plans symbolize health security. Visit www.fepblue.org and join the best, most-recognized group of health insurance providers in the world.

GEICO, FMA Corporate Partner: GEICO was created over 60 years ago to insure Federal employees. Over the years GEICO has continuously strengthened its affiliation with the Federal workforce. Today GEICO has a special program established to support the Federal community. GEICO’s Federal program participates in the following organizations and programs: GEICO Public Service Awards, which have honored Federal workers (active and retired) who have contributed to the public good since 1980; and GEICO Federal Leave Record Cards, which for over 40 years have been provided by GEICO to Federal employees, free of charge, to help them track their annual leave. Find out how much you could save with GEICO auto insurance as an FMA member by getting a line-by-line rate quote at: www.geico.com

Shaw, Bransford, Veilleux and Roth, P.C. , (SBVR) concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers. SBVR serves as General Counsel to the Federal Managers Association and is uniquely situated to recognize the interests and viewpoints of Federal managers. For up to two free half-hour legal consultations and reduced legal fees as an FMA member, please visit: www.shawbransford.com

The Federal Managers Association and Management Concepts have teamed up to present the Federal Managers Practicum — a targeted certificate program for Federal managers. As the official development program for FMA, the Federal Managers Practicum helps FMA members develop critical skills to meet new workplace demands and deepen their managerial capabilities. FMA’s leadership fully recognizes the need to prepare career-minded federal employees to manage the demands of the 21 st century workplace with greater competence and fully supports this unique and comprehensive certificate program. For more information, please visit: www.managementconcepts.com/fmp/fmpodp.asp

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The Washington Report is published biweekly by the Federal Managers Association.
Jessica Klement, Editor; FMA Staff Writers.

The Federal Managers Association, established in 1913, is the oldest, largest, most influential association representing the interests of the nearly 200,000 managers, supervisors and executives serving in today’s Federal government.

1641 Prince Street ~ Alexandria VA 22314-2818 ~ (703) 683-8700 ~ FAX (703) 683-8707 ~ E-Mail Info@fedmanagers.org

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