Human Resources Management in Agencies, 29593-29595 [E6-7784]

Agencies

• Office of Personnel Management
• Personnel Management Office

[Federal Register Volume 71, Number 99 (Tuesday, May 23, 2006)]
[Proposed Rules]
[Pages 29593-29595]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7784]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 71, No. 99 / Tuesday, May 23, 2006 / Proposed 
Rules

[[Page 29593]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 250

RIN 3206-AJ92


Human Resources Management in Agencies

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Office of Personnel Management (OPM) is proposing 
regulations to implement certain provisions of the Chief Human Capital 
Officers Act of 2002, which set forth new OPM and agency 
responsibilities and requirements to enhance and improve the strategic 
management of the Federal Government's civilian workforce, as well as 
the planning and evaluation of agency efforts in that regard. Further, 
we are proposing a plain language rewrite of the subpart titled 
``Authority for Personnel Actions in Agencies.''

DATES: We will consider comments received on or before July 24, 2006.

ADDRESSES: You may submit comments, which are identified by RIN 3206-
AJ92, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: employ@opm.gov. Include ``RIN 3206-AJ92, Human 
Resources Management in Agencies'' in the subject line of the message.
     Fax: (202) 606-2329.
     Mail: Ms. Nancy Kichak, Associate Director for Strategic 
Human Resources Policy, U.S. Office of Personnel Management, Room 6551, 
1900 E Street, NW., Washington, DC 20415-9700.
     Hand Delivery/Courier: U.S. Office of Personnel 
Management, Room 6551, 1900 E Street, NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: For information on proposed subpart 
A--Authority for Personnel Actions in Agencies and subpart B--Strategic 
Human Capital Management, contact Charles D. Grimes by phone at 202-
418-3163, by FAX at 202-606-2548, or by e-mail at 
charles.grimes@opm.gov. You may contact Mr. Grimes by TTY on 202-418-
3134.

SUPPLEMENTARY INFORMATION: OPM is proposing to change the title of 5 
CFR part 250, to read ``Human Resources Management in Agencies'' to 
reflect current usage. In addition, we are proposing to revise the 
current subpart A in plain language, and add regulations on strategic 
human resources management as new subpart B.

Subpart A--Authority for Personnel Actions in Agencies

    OPM proposes a plain language revision to make the current subpart 
A of 5 CFR 250 more readable. This revision is part of a broader effort 
to make OPM's regulations more readable. The Guide to Processing 
Personnel Actions referenced in part 250, subpart A, is available at 
https://www.opm.gov/feddata/gppa/gppa.asp.

Subpart B--Strategic Human Capital Management

    The provisions of Public Law 107-296 include the Chief Human 
Capital Officers Act of 2002 (Act), which, among other things, amended 
OPM's authorizing legislation in chapter 11 of title 5, United States 
Code, requiring OPM to design a set of systems, including appropriate 
metrics, for assessing the management of human capital by Federal 
agencies. While OPM has an overarching leadership role in the strategic 
management of the Federal Government's human capital, employing 
agencies have ultimate responsibility and accountability for their 
respective workforces.
    To establish accountability in that regard, the Act added in part 
II of title 5 a new chapter 14, Agency Chief Human Capital Officers, 
which directs each agency referred to in section 901(b) of title 31, 
United States Code, (i.e., the Departments of Agriculture, Commerce, 
Defense, Education, Energy, Health and Human Services, Homeland 
Security, Housing and Urban Development, Interior, Justice, Labor, 
State, Transportation, Treasury, and Veterans Affairs, and the 
Environmental Protection Agency; National Aeronautics and Space 
Administration; Agency for International Development; General Services 
Administration; National Science Foundation; Nuclear Regulatory 
Commission; Office of Personnel Management; Small Business 
Administration; and the Social Security Administration) to appoint or 
designate a Chief Human Capital Officer (CHCO) to carry out the 
agency's responsibilities under the law. The CHCO is the senior 
official accountable for advising the agency head in the development 
and evaluation of the agency's strategic human capital plan and 
reports. The Act also establishes a CHCO Council, chaired by the OPM 
Director, to coordinate the law's implementation and to coordinate 
Governmentwide and agency strategic human capital management efforts 
and initiatives.
    Finally, the Act amends section 1115 of title 31 to require CHCOs 
to prepare that portion of their agency's annual performance plan 
required under the Government Performance and Results Act of 1993, as 
amended, which describes how human resources and human capital 
management strategies will contribute to meeting annual performance 
goals and objectives. It also amends section 1116 of that title to 
require in the agency's annual performance report a review of the 
performance goals and evaluation of the performance plan relative to 
the agency's strategic human capital management.
    This regulation implements provisions of the Act, as well as 
Executive Order 13197, Governmentwide Accountability for Merit System 
Principles; Workforce Information (January 18, 2001). It describes 
OPM's leadership role and, in this context, establishes a basic 
framework for planning and assessing human capital management progress 
and results, including compliance with relevant laws, rules and 
regulations, as assessed through agency human capital accountability 
systems and reported in annual agency human capital accountability 
reports. That basic framework comprises the Human Capital Assessment 
and Accountability Framework (HCAAF) and its companion document, HCAAF 
Systems, Standards, and Metrics (HCAAF-SSM), which are incorporated by 
reference in this regulation. Both the HCAAF and the HCAAF-SSM are 
available for review and comment on OPM's Web site at

[[Page 29594]]

https://www.opm.gov/hcaaf_resource_center/.
    The regulation also establishes requirements for an agency to 
maintain a current human capital plan and submit to OPM an annual human 
capital accountability report. To accommodate the special resource 
constraints of particularly small agencies, the regulation allows OPM 
to waive these requirements. The requirements set forth in this 
regulation are by design congruent with the planning and reporting 
requirements contained in OMB Circular A-11 (under sections 32.1, 32.3 
and 51.8) and title 31, United States Code, and support the system of 
oversight prescribed by Sec.  250.102.

Executive Order 12866, Regulatory Review

    This proposed rule has been reviewed by the Office of Management 
and Budget in accordance with Executive Order 12866.

Regulatory Flexibility Act

    I certify that these regulations would not have a significant 
economic impact on a substantial number of small entities (including 
small businesses, small organizational units, and small governmental 
jurisdictions) because they would only apply to Federal agencies and 
employees.

List of Subjects in 5 CFR Part 250

    Authority delegations (Government agencies), Government employees.

Office of Personnel Management.
Linda M. Springer,
Director.
    Accordingly, OPM is proposing to revise 5 CFR part 250 to read as 
follows:

    1. Revise part 250 to read as follows:

PART 250--HUMAN RESOURCES MANAGEMENT IN AGENCIES

Subpart A--Authority for Personnel Actions in Agencies
Sec.
250.101 Standards and requirements for agency personnel actions.
250.102 Delegated authorities.
250.103 Consequences of improper agency actions.
Subpart B--Strategic Human Capital Management
250.201 Coverage and purpose.
250.202 Office of Personnel Management responsibilities
250.203 Agency responsibilities.

    Authority: 5 U.S.C. 1101 note, 1103(a)(5), 1103(c), 1104, 1302, 
3301, 3302; E.O. 10577, 12 FR 1259, 3 CFR, 1954-1958 Comp., p. 218; 
E.O. 13197, 66 FR 7853, 3 CFR 748 (2002).

    Subpart B also issued under 5 U.S.C 1401, 1401 note, 1402.

Subpart A--Authority for Personnel Actions in Agencies


Sec.  250.101  Standards and requirements for agency personnel actions.

    When taking a personnel action authorized by this chapter, an 
agency shall comply with qualification standards and regulations issued 
by the Office of Personnel Management (OPM), the instructions OPM has 
published in the Guide to Processing Personnel Actions, and the 
provisions of any delegation agreement OPM has made with the agency. 
When taking a personnel action that results from a decision or order of 
OPM, the Merit Systems Protection Board, Equal Employment Opportunity 
Commission, or Federal Labor Relations Authority, as authorized by the 
rules and regulations of those agencies, or as the result of a court 
order, a judicial or administrative settlement agreement, or an 
arbitral award under a negotiated agreement, the agency shall follow 
the instructions in the Guide to Processing Personnel Actions and 
comply with all other relevant substantive and documentary 
requirements, including those applicable to retirement, life insurance, 
health benefits, and other benefits provided under this chapter.


Sec.  250.102  Delegated authorities.

    OPM may delegate its authority, including authority for competitive 
examinations, to agencies, under 5 U.S.C. 1104(a)(2), through a 
delegation agreement. The delegation agreement developed with the 
agency must specify the conditions for applying the delegated 
authorities. The agreement must also set minimum standards of 
performance and describe the system of oversight by which the agency 
and OPM will monitor the use of each delegated authority.


Sec.  250.103  Consequences of improper agency actions.

    If OPM finds that an agency has taken an action contrary to a law, 
rule, regulation, or standard that OPM administers, OPM may require the 
agency to take corrective action. OPM may suspend or revoke a 
delegation agreement established under Sec.  250.102 at any time if it 
determines that the agency is not adhering to the provisions of the 
agreement. OPM may suspend or withdraw any authority granted under this 
chapter to an agency, including any authority granted by delegation 
agreement, when OPM finds that the agency has not complied with 
qualification standards OPM has issued, instructions OPM has published, 
or the regulations in this chapter. OPM also may suspend or withdraw 
these authorities when it determines that doing so is in the interest 
of the civil service for any other reason.

Subpart B--Strategic Human Capital Management


Sec.  250.201  Coverage and purpose.

    The Chief Human Capital Officers (CHCO) Act of 2002 acknowledges 
the critical importance of Federal employees to the effective and 
efficient operation of Government. As a part of OPM's overall 
leadership responsibilities in the strategic management of the Federal 
civil service, and pursuant to 5 U.S.C. 1103, OPM is responsible for 
designing a set of systems, including standards and metrics, for 
assessing the management of human capital by Federal agencies. In this 
subpart, OPM establishes a framework of those systems, including system 
components, OPM's role, and agency responsibilities.


Sec.  250.202  Office of Personnel Management responsibilities.

    (a) As the President's chief human capital officer, the Director of 
OPM provides Governmentwide leadership and direction in the strategic 
management of the Federal workforce.
    (b) To execute this critical leadership responsibility, OPM 
defines, and from time to time revises, the Human Capital Assessment 
and Accountability Framework (HCAAF), to describe the concepts and 
systems for planning, implementing, and evaluating the results of human 
capital management policies and practices. The link to the HCAAF is 
available on the OPM Web site at https://www.opm.gov. In addition, OPM 
issues, and from time to time revises, the related set of assessment 
systems required by the CHCO Act as the HCAAF Systems, Standards, and 
Metrics (HCAAF-SSM), also available at the OPM Web site. Each such 
assessment system associated with the HCAAF consists of:
    (1) A standard against which agencies can assess the results of 
their management of human capital; and
    (2) Prescribed metrics, as appropriate, for organizational 
outcomes, employee perspective, and compliance measures with respect to 
relevant laws, rules and regulations.
    (c) Together, the HCAAF and the HCAAF-SSM guide agencies in 
planning, evaluating and improving the efficiency and effectiveness of 
agency human capital management with respect to:
    (1) Alignment with executive branch policies and priorities, as 
well as with

[[Page 29595]]

individual agency missions, goals, and program objectives, including 
the extent to which human capital management strategies are integrated 
into agency strategic plans and performance budgets prepared under OMB 
Circular A-11;
    (2) Identifying and closing competency/skill gaps in the agency's 
mission-critical occupations; ensuring leadership continuity through 
the implementation of recruiting, development, and succession plans; 
sustaining an agency culture that values, elicits, identifies, and 
rewards high performance; and developing and implementing a knowledge 
management strategy, supported by appropriate investment in training 
and technology; and
    (3) Holding the agency head, executives, managers and human 
resources officers accountable for efficient and effective human 
capital management, in accordance with merit system principles.


Sec.  250.203  Agency responsibilities.

    (a) To assist in the assessment of the management of human capital 
in the Federal Government, and to help meet the statutory requirements 
to prepare that portion of the performance budget for which agency 
Chief Human Capital Officers are accountable as well as relevant 
portions of performance and accountability reports, heads of agencies 
or their designees must maintain a current human capital plan and 
provide OPM an annual human capital accountability report, as outlined 
below, based on an approved human capital accountability system. The 
HCAAF and the HCAAF-SSM provide more specific information on coverage 
and content for the plan and report.
    (1) Human Capital Plan. Using a format established by agreement 
between the agency and OPM, at a minimum the plan must include:
    (i) Human Capital Goals and Objectives. These are a comprehensive, 
integrated set of human capital goals and objectives, with detailed 
policy and program priorities and initiatives as appropriate, 
consistent with agency strategic plans and annual performance goals. 
These human capital goals and objectives must address each of the human 
capital management systems included in the HCAAF.
    (ii) Workforce Analysis. This analysis of the agency's workforce 
describes its current state, projects the human resources needed to 
achieve the agency's program performance goals and objectives during 
the term of the agency's strategic plan, and identifies potential 
shortfalls or gaps. An ongoing analysis must, for relevant agency 
mission requirements, describe the occupation(s) most critical to 
agency performance (including associated managerial and executive 
positions) and describe mission-critical competencies and key 
demographics (e.g., talent analyses, turnover, and retirement 
eligibility); and for each such occupation, describe its current and 
projected staffing levels, attrition and hiring estimates, and proposed 
training and development investments.
    (iii) Performance Measures and Milestones. One or more human 
capital metrics, as well as appropriate program milestones, for each 
human capital goal or objective, provide a basis for assessing progress 
and results, including compliance measures with respect to relevant 
laws, rules and regulations. These metrics must include, but are not 
limited to, those described in the HCAAF-SSM issued under Sec.  
250.202(b). These metrics and milestones must be specifically linked to 
broader agency program performance measures, to evaluate the impact of 
the agency's human capital management on its overall mission 
performance.
    (2) Human Capital Accountability System and Report. This system 
provides for an annual assessment of agency human capital management 
progress and results including compliance with relevant laws, rules, 
and regulations. That assessment is conveyed in an annual human capital 
accountability report to OPM. The human capital accountability system 
must be formal and documented; be approved by OPM; be supported and 
resourced by agency leadership; measure and assess human capital 
management systems for mission alignment, effectiveness, efficiency, 
and compliance with merit system principles, laws, and regulations; 
include an independent audit process with periodic review of human 
resources transactions to insure legal and regulatory compliance; 
ensure that action is taken to improve human capital management 
programs and processes and to correct deficiencies; and ensure results 
are analyzed and reported to agency management and OPM. At a minimum, 
the agency's annual human capital accountability report must:
    (i) Provide an evaluation of and report on the agency's existing 
human capital management policies, programs, and operations, as they 
relate to the agency's overall mission/program performance. The report 
must address the performance measures and milestones contained in the 
agency human capital plan including compliance measures with respect to 
relevant laws, rules and regulations. The report must also document 
actions taken to correct any violations or deficiencies that are 
identified.
    (ii) Inform the development of human capital goals and objectives 
during the agency's strategic planning and annual performance budget 
formulation process, as well as the treatment of human capital results 
during the annual performance and accountability reporting process.
    (b) The Director of OPM may, at his or her discretion, grant a 
variation from any requirement of this section under 5 CFR 5.1. A 
request for a variation must be submitted by the head of the requesting 
agency, and must be based on conditions specific to the requesting 
agency. The Director's decision granting or denying the variation 
request has no precedential effect under 5 CFR 5.1(a).

 [FR Doc. E6-7784 Filed 5-22-06; 8:45 am]
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