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• The Model PBO Bill was drafted by the National Performance Review (NPR), Office of Management and Budget (OMB), Office of Personnel Management (OPM), and the Office of Federal Procurement Policy (OFPP) based on the lessons learned from the experiences of the past year, and, particularly, from the candidate PBOs.
• The St. Lawrence Seaway legislation provided the initial template for this bill but the personnel and procurement parts were expanded.
• The bill was circulated to the Cabinet and selected small agencies for comments on January 21, 1997. Each of the national offices of the major federal unions also received a copy of the bill for comment.
• "Proposed Final PBO Bill" issued February 20, 1997.

• Title I addresses the management of the Performance-Based Organization (PBO) and the Chief Operating Officer (COO) who leads the PBO. All PBO legislation will contain this part of Model PBO bill.
• Title II addresses the personnel systems that performance based organization may use. A PBO may select not to use all the flexibilities provided.
• Title III addresses the procurement flexibilities. A PBO may select not to use all of the flexibilities provided.
• Title IV addresses the unique requirements of each individual PBO.
• Title V addresses conforming amendments if needed.
• Title VI addresses the assessment and sunset provision.

• Sec.2 (a) -- Appointment, renewal, and removal of the Chief Operating Officer (COO)
  • Selected by the Secretary
  • Fixed term. PBO is to select length of term - 3 to 5 years
  • May be reappointed to subsequent terms if performance is satisfactory or better
  • Removal by the President, or the Secretary for misconduct or failure to meet performance goals.
• Sec.2 (b) -- Performance agreement
  • Annual performance agreement between the Secretary and the COO
  • Measurable organization and individual goals in key operational areas.
• Sec. 2 (c) - Pay and incentives/compensation based on performance
  • Base pay is up to SES-6
  • Incentive bonus is up to a 50 percent of base pay
  • President's salary is the cap for total annual compensation.
• Sec. 2 (d) - Annual management report
  • COO to submit a report to Secretary and Congress
  • Annual report
  • Director, OMB, to prescribe what the report contains.

• Sec. 3. General provisions.
  1. No ceilings on the number or grade of personnel.
  2. ["The Untouchable"] No exercise or implementation of any flexibilities established under the authority of this section shall interfere with or fail to comply with OPM oversight provisions under chapter 11, the merit system principles, whistleblower protections, veterans preference, Governmentwide retirement and benefits provisions, the total aggregate compensation limitation at 5 U.S.C. 5307, or the labor-management relations requirements under chapter 71.
  3. Labor relations, collective bargaining, and employee consultation obligations to be met consistent with demonstration project provisions; includes feature to facilitate multiple unit implementation.
  4. No approval required for many flexibilities; OPM approval required for exercise of certain flexibilities. [see annotations below]
  5. Authority to be a chapter 47 demo project available as needed now or in the future to support further flexibilities such as improved dispute resolution, alternative RIF approaches (leaving veterans preference intact), fast-track promotions, alternative leave systems (except for Family and Medical Leave), using streamlined time line and notifications, plus various limits lifted, including the bar on corporations and on waiver of leave provisions for other than family and medical leave.
• Sec. 4. Performance management.
  1. Performance management programs
  2. Performance incentive flexibilities
  3. Poor performance flexibilities
• Sec. 5. Classification and pay flexibilities.
  1. Broadbanding authority subject to OPM criteria
  2. "Stepless" General Schedule with performance increases and exceptional performance increases subject to OPM criteria
  3. Alternative job evaluation systems
  4. Grade and pay retention flexibilities if broadbanded or under an alternative job evaluation system
  5. Recruitment/relocation bonus and retention allowance flexibilities
• Sec. 6. Staffing flexibilities.
  1. Noncompetitive conversion of certain term appointees
  2. Alternative ranking procedure
  3. Exemption from time limit on details
  4. Extended probationary period
  5. Must comply with placement/surplus employee requirements and court orders/decrees

• Sec.7 (a) PBO are subject to all applicable federal procurement laws and regulation when procuring property and services.
• Sec. 7 (b) are additional authorities for PBO
  1. allowed to reduce, after reviewing a limited amount of information, the number of suppliers with whom they must negotiate, and permitted to conduct repetitive competitions among qualified sources (§ 7(b)(1)).
  2. would further facilitate the acquisition of commercial items by removing the dollar limitation and making permanent the authorities provided in the Clinger-Cohen Act to simplify the procurement of commercially-available goods and services (§ 7(b)(2)).
  3. given relief from the required wait period when using a detailed synopsis for any type of product or service (§ 7(b)(3)).
  4. permitted to conduct recompetitions based on adequate competition for continuing requirements when an incumbent meets or exceeds the cost, schedule, and performance goals in the contract (§ 7(b)(4)).
  5. would also build upon the provisions in the Clinger-Cohen Act to enable the more efficient acquisition of major systems of information technology through incremental contracting techniques (§ 7(b)(5)).
  6. would help promote greater opportunities for the small business community by authorizing the use of simplified procedures for the acquisition of services (excluding construction) up to $1,000,000 when conducted as a small business set-aside (§ 7(b)(6)).
• Sec.7 (c) states nothing in this section shall be contrued to waive civil rights or labor standards laws applicable to federal contracts.

For more information, contact Mary Mozingo at the National Performance Review, (202) 632-0219 or e-mail: mary.mozingo@npr.gsa.gov.