DATE: March 9, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Energy (DOE); Management and Operating (M&O) Contractor Employee Assignments to Washington, DC

SOURCE: DOE Policy Flash 2000-05, March 7, 2000

AGENCIES: Office of Procurement and Assistance Management, DOE

SYNOPSIS: DOE is directing a reduction in the number of Washington-based M&O employees from 379 to 270 by May 15, 2000, and the termination of most M&O Washington leases and the relocation of the M&O employees to consolidated offices by September 30, 2000.

SUPPLEMENTAL INFORMATION: The Fiscal Year 2000 Energy and Water Development Appropriations Conference Report directed DOD to reduce the number of Washington-based M&O employees to 270 and to consolidate Washington M&O contractor offices that have been financially supported by DOE. At present, there are 379 M&O employees assigned to Washington and 13 M&O contractor offices.

DOE has been working on a FY2000 allocation plan for M&O employees, based on technical skill requirement plans, on-going work assignments, and required support for visiting laboratory personnel. It has also been working on an M&O office consolidation plan.

DOE Policy Flash 2000-05, dated March 7, 2000, forwards a memorandum dated February 2, 2000, from Deputy Secretary T. J. Glauthier to the acting director of the Office of Science, the acting assistant secretary for defense programs, and the assistant secretary for environmental management regarding the employee reductions and office consolidations.

"You are to direct the Field Office Managers to notify their appropriate contractors to: (1) reassign or terminate the assignment of employees, who are not included on the approved inventory lists [the lists of M&O employees DOE has approved to be in Washington] within 90 days, or not later than May 15, 2000; and (2) stop claiming all costs associated with these actions immediately upon such reassignment or termination," says Deputy Secretary Glauthier in the memo.

"The M&O Office Consolidation Plan proposes the termination of 11 to 12 leases in DC and Germantown [Maryland], with approved personnel occupying these offices to relocate to the Aerospace Building at 901 D Street SW, to DOE office space, or to a possible second off-site office which may be retained to ensure sufficient space...Office leases should be terminated as quickly as possible with the total co-location effort completed by the end of FY2000, following which only rent for occupancy at approved office spaces will be an allowable costs (sic). The Department will incur termination costs, but these costs will be substantially offset by the savings afforded by the consolidation."

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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