M&O Contracdtor wage freeze

This is from todays Washington Post

The freeze's expansion to the majority of government workers except active-duty military personnel was widely expected. The big question now is whether the small group of employees whose wages are negotiated through collective-bargaining agreements, chief among them air traffic controllers, will be affected.

The White House plans to address the question within the next week, according to administration officials who are reviewing the potential legal ramifications of blocking raises set through union contracts. The contract issue prevented the White House from enforcing the freeze for thousands of workers employed by government contractors, because they are hired by private companies, not the government. One exception is a group of contractors at the Energy Department who manage day-to-day operations at some national laboratories and other sites. They will not be exempted.

FCW article at http://fcw.com/articles/2010/12/20/doe-fre...aspx?sc_lang=en.

DOE press release http://www.energy.gov/news/9917.htm

What is it about M&O contracts that would allow DOE to fiat freezes that are not circumvented by the SCA or a signed, priced contract with management/professional salaries escalated for outyears? Just strong-arm renegotiations or something?

FCW article at http://fcw.com/articles/2010/12/20/doe-fre...aspx?sc_lang=en.

DOE press release http://www.energy.gov/news/9917.htm

Thank you for the information. However, press releases and articles are not actual policy. Does anyone know where this policy statement is actually located?

http://www.energy.gov/news/9917.htm

I have been unable to find the actual policy statement. Call the public affairs office.

http://www.energy.gov/news/9917.htm

I have been unable to find the actual policy statement. Call the public affairs office.

According to an article I read somewhere this morning (in govexec.com? Or in WIFCON?), a freeze on M&O employee compensation was or will be included in the Executive Order that freezes the Federal Civil Service Employee wage/salary scales for the next two years. I'm busy working on my truck at the moment...

Joel,

It's not in the EO or the accompanying memorandum.

Joel,

It's not in the EO or the accompanying memorandum.

It was in an article related to follow-on actions by the President to freeze pay for other fed employees beyond the first proposed or actual freeze. I cant find it this morning. It might have been a hard copy in my mail. I don't know.

Are the Davis-Bacon and SCA rates now gonna have max hourly rates? haha

I can already imagine the data calls, spreadsheet, and metrics that are being developed

Are the Davis-Bacon and SCA rates now gonna have max hourly rates? haha

I can already imagine the data calls, spreadsheet, and metrics that are being developed

Being a federal employee, I cant really comment on the wisdom or underlying philosophy of those in government who are trying to order a freeze on private firms' employee compensation on existing contracts. I don't know how it would be implemented.

DOE M&O contracts are cost reimbursement contracts awarded to LLCs specifically created to fulfill the DOE contract. Pay and benefits are not necessarily equivalent to the parent organizations pay and benefit structure. Since the contractor is not subject to the same pressures to limit pay and benefits to what is necessary to hire and maintain a qualified workforce, the contract terms of the M&O contracts require the contractor to submit annual compensation plans. Any changes to the plan, increasing or decreasing pay or benefits must be approved by DOE. DOE's authority to deny pay raises is based on those contract terms. The freeze on pay raises does apply to raises under CBAs or mandated by SCA, DBA, etc.

DOE M&O contracts are cost reimbursement contracts awarded to LLCs specifically created to fulfill the DOE contract. Pay and benefits are not necessarily equivalent to the parent organizations pay and benefit structure. Since the contractor is not subject to the same pressures to limit pay and benefits to what is necessary to hire and maintain a qualified workforce, the contract terms of the M&O contracts require the contractor to submit annual compensation plans. Any changes to the plan, increasing or decreasing pay or benefits must be approved by DOE. DOE's authority to deny pay raises is based on those contract terms. The freeze on pay raises does apply to raises under CBAs or mandated by SCA, DBA, etc.

Carol, what is the source of your conclusion stated in the last sentence of your post? I don't see any DOE exception to the SCA or DBA.

Sorry. I should have said that the freeze does NOT apply to CBA or increases to meet SCA and DBA wages.

Sorry. I should have said that the freeze does NOT apply to CBA or increases to meet SCA and DBA wages.

Thank you. However, I must ask you the same question as I did before, what is the source of your information in this regard? Your answers seem to indicate that you have actually seen a policy statement on this subject other than news releases.

If this quote from the Energy Secretary is accurate, he is "asking our contractor employees..." to join the pay freeze rather than mandating it. So there probably won't be a formal policy statement.

"As our nation continues to recover from these challenging economic times, households and small businesses across the country are making sacrifices," said Chu. "In this spirit, we are asking our contractor employees, who are doing important research, operations and environmental cleanup work, to join the federal workforce in playing a part."