National Aeronautics and Space Administration - Use of, B-

B-272040 Oct 29, 1997 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights We have no objection to an expanded CTAP program. So long as NASA determines that the expenditures inure primarily to NASA's benefit and the additional cost is reasonable in light of the anticipated benefits. The CTAP is operated by a contractor and offers outplacement services to NASA employees. NASA is considering an expansion of the program to offer additional services in part to offset the costs of agency downsizing. We would not object to NASA using otherwise available funds for the expanded program provided NASA determines that the expenditures primarily inure to NASA's benefit and the additional cost is reasonable in light of the anticipated benefits to NASA. Under the expanded CTAP program NASA is considering. View Decision Matter of: National Aeronautics and Space Administration - Use of Appropriations to Fund Expansion of "Career Transition Assistance Program" File: B-272040 Date: October 29, 1997 DECISION National Aeronautics and Space Administration (NASA) proposes to use its appropriations to fund an expanded "Career Transition Assistance Program," including increased assistance identifying job prospects for NASA employees and incentive payments to contractor for identifying jobs accepted by NASA employees. As part of its agency personnel management, NASA has a wide range of discretion to decide not only the amount but the type of outplacement assistance provided its employees. We have no objection to an expanded CTAP program, including contractor bonuses or incentive fees for identifying jobs accepted by NASA employees, so long as NASA determines that the expenditures inure primarily to NASA's benefit and the additional cost is reasonable in light of the anticipated benefits. The General Counsel, National Aeronautics and Space Administration (NASA), has requested a decision on the propriety of using appropriations to fund an expansion of its "Career Transition Assistance Program" (CTAP). The CTAP is operated by a contractor and offers outplacement services to NASA employees. NASA is considering an expansion of the program to offer additional services in part to offset the costs of agency downsizing. As explained below, we would not object to NASA using otherwise available funds for the expanded program provided NASA determines that the expenditures primarily inure to NASA's benefit and the additional cost is reasonable in light of the anticipated benefits to NASA. Background NASA established the CTAP to ease the transition for its employees from employment with NASA to employment elsewhere. The CTAP currently offers to all employees various outplacement services such as group seminars, employment workshops, individual career counseling, access to employer data bases and electronic bulletin boards, and access to equipment for preparation of resumes and applications. Under the expanded CTAP program NASA is considering, a contractor would conduct job searches for NASA employees based on individual employee job and location preference and would arrange interviews with prospective employers. NASA is considering offering the contractor bonuses or incentive fees contingent upon the contractor identifying jobs accepted by NASA employees. NASA states that there is no specific statutory authority to use its appropriations for this purpose, but it believes that the proposed expenditures are primarily for the government's benefit and can be justified as a necessary expense of the appropriations available for its personnel program. NASA notes that government agencies have in recent years increasingly offered a wide variety of outplacement services to employees, and while agencies may not have offered the type of services the expanded CTAP would provide, private sector employers have offered such services during large downsizing activities. In addition, NASA states that the voluntary separation of employees who identify other jobs with the proposed outplacement assistance will be significantly less expensive than the involuntary separation of employees through a reduction in force (RIF) and the payment of severance pay. Finally, NASA notes that involuntary separation of employees through a RIF would have negative emotional and financial impacts on large numbers of affected employees, while the proposed expanded CTAP could reduce the need for a RIF and consequently significantly mitigate these negative impacts on both those who leave NASA for new positions and those who remain with NASA. In light of the above, while NASA recognizes that the employee who receives a new job under the proposed program benefits, it nonetheless believes that the primary benefit may reasonably be said to run to the government.