From the LANL Blog
June 2, 2009
M&O Contractor Salary Increase Budget, Submission and Implementation
Department of Energy
National Nuclear Security Administration
Washington, DC 20585
FROM: GERALD L. TALBOT, JR.
ASSOCIATE DEPUTY ADMINISTRATOR FOR NUCLEAR SAFETY AND OPERATIONS
TO: SITE OFFICE MANAGERS
SUBJECT: M&O Contractor Salary Increase Budget, Submission and Implementation
The purpose of this document is to change the cycle for contractor Compensation Increase Plan (CIP) submissions to October 1 and to delay resultant pay raises to allow consideration of the most recent annual Program Evaluation Plans (PEP) in pay programs.
The change to the CIP submission date from July 1st to October 1st is for two reasons: First, NNSA has approved employee performance incentive pay (bonus) plans at KCP and Y-12 and is expecting proposals shortly from LLNS and LANS. Also, SNL has a variable pay component tied to performance. These plans should provide pay to employees based on the contractors' performance against PEP measures and on individuals' performance. Since Contractors submit CIPs on July 1st each year and many distribute pay raises and bonuses to employees on October 1st, the cycle does not allow consideration of the contractors' PEP performance in setting pay. Second, a delay in submission will allow for use of more current salary survey results published in July to determine position to market. Starting in 2009, the contractors shall submit their salary increase requests for the fiscal year on October 1st and shall not provide pay increases/incentive payments to employees until the PEP evaluation is complete and is considered in employee performance evaluation and pay determinations, where appropriate for this year. For future employee performance cycles, contractors will be expected to develop a method to consider PEP evaluations in pay determination decisions for employees as appropriate. This will facilitate contractor focus on contract performance in executing pay programs.
DOE Order 350.1 and/or your site contract require NNSA approval of the Contractor's annual compensation increase plan (CIP). For FY 2009, NNSA approved salary increase budgets in July 2008 that ranged between 3.5% and 6.1%. However, more recent data indicates that most commercial companies, who are providing salary increases in 2009, have revised their salary increase budgets to between 2% and 3%. Additionally, a recent survey by Grant Thornton LLP shows that 65% of companies surveyed said that they will not give pay raises in 2009. Since our contractors have already distributed their 2009 increases they have likely gained ground in pay relative to their market competitors. Therefore any CIP request greater than 3% will be heavily scrutinized given the data available to date. Updated data will become available by August and should be incorporated into the contractor's FY2010 submissions. Contractors shall perform their usual market analysis to determine their CIP request. It is imperative that annual Compensation Increase Plans (CIPs) submitted for NNSA approval contain adequate, up-to-date information in order for NNSA to make informed decisions regarding expenditure of taxpayer money.
Contracting Officers are hereby requested to make appropriate contract changes to facilitate the October 1st submission date for CIPs with increase salary payment dates that allow PEP evaluation consideration in setting pay increase and bonus amounts for employees. Please direct questions to David Boyd, Director Office of Acquisition and Supply Management, at (202) 586-7554.
Cc: Site Office Contracting Officers
NA-63
NNSA Service Center/OBS
Posted by Frank Young at 8:49 PM
7 comments:
Here I was thinking that the boys in NNSA didn't have a brain. They realized that the existing surveys could be tossed and that lower costs would prevail. They are thinking of new ways to lower their costs.
You can be assured that the new survey will be sure to include a large number of that 65% of the companies that will not be giving raises in 2009.
And don't forget the PEP being a factor of how the contractor's performance is rated. Cheap raises for us are big bonuses for the bigwigs.
June 3, 2009 8:36 PM
Ditto and have no doubt delaying ones raise from Oct ro Jan will save them millions of dollar at your expense. However the screwing doesn't stop here. We gotten crappy raises since the LLNS take over and now the state in going to bone you if you don't get off your butts and say Hell No, Enough is Enough. No new taxes for ANY REASON
http://www.modbee.com/opinion/v-print/story/729677.html
Pay raises will be delayed by three months with no retoactive pay in site and they'll stay that way from now on. If LLNS does good you'll do good. If LLNS only gets 80% of their contract fees for poor performance then you'll get less of a raise. How's it feel to be a share holder?
Pay raises have nothing to do with fee. Size of total raise pool is decided by DOE, not LLNS.
June 5, 2009 6:41 PM
Is that right, well I guess DOE is screwing everyone again as they have since the LLNS take over but the punks sure get their raises don't they.
I heard there is a non-base building component of the new salary process. So if the CIP is 3%, the merit increase might be 1 or 2% and the bonus be the balance. Non-base building salary would be excluded from HAPC calculations thereby affecting the pension amounts of those who receive bonuses instead of merit salary increases. When we have a comment period, decide if this is something you want to object to. I plan to.
ps to June 5, 2009 6:41 PM
Yes, the CIP is proposed by Compensation, approved by DOE AND the director has the option to LOWER the CIP if he desires.
To he-ll with bonus checks if that be the case. I want a pay raise of at least 20% after taxes to make up for all the time this fringing contractor has screwed me. We're so far behind the curve it's ridiculous no matter what they tell you. Oh I know there'll be some SOB out there that says, "be glad you have a job". It's people and attitudes like that which have ruined this country and will continue to do so as long as they are in control.
Post a Comment