4. It would insure that Federal executives are responsive to public policy as expressed by the President and Congress, and that they are competent to carry out missions in support of that policy. 5. It would provide individual executives with opportunities to achieve their full potential for contributing to the Nation's progress and for personal growth, recognition, and work satisfaction. 6. It would assure high-quality employees now at the entry and midmanagement levels that through full application of their talents they can "rise to the top" and get important and influential jobs with reasonable security. 7. It would vest in the Civil Service Commission, after collaboration with the Office of Management and Budget, the responsibility for reviewing, analyzing, and making recommendations on all aspects of executive manpower management. This would provide a means for the President to hold agency heads accountable for effective management of their executive manpower resources, and would provide a means by which executive resources could be reviewed regularly by Congress through comprehensive stewardship reports. Scope. The Federal Executive Service would include approximately 7,000 persons in the executive branch of Government, those serving in positions presently established as GS-16 through GS-18 or within the same pay range under several other Federal salary systems. Those serving in executive assignments at the time of enactment would be given a choice of entering the Executive Service immediately or continuing under their current appointments in their present positions with all rights and privileges unimpaired. Thus, incumbents would not be required to make a change. Those entering the Executive Service after enactment of the law would be subject to all the provisions of the Service, Agencies outside the executive branch would establish executive manpower systems generally the same as the Federal Executive Service proposal for the executive branch. Key features of the Federal Executive Service would be as follows: - The present method of classifying executives' jobs (positions) at a specific grade level would be abolished. Instead, individuals with appropriate qualifications would be part of the executive management team and would serve in whatever executive capacity they were needed within their agencies. Executives' salaries could be adjusted upward within a present dollar range of $28,000 to $36,000 by the head of the employing agency, within the limitations imposed upon the agency. - The number of Federal executives in a given agency would be determined as follows: The agency would review its current and anticipated programs and budget, and the level of work to be performed. It would submit to the Civil Service Commission by February 1 of each year its request for the number of executives required. The Commission, after collaboration with the Office of Management and Budget, would authorize a maximum number of executives for the agency, and an average salary ceiling for each agency. The Commission would report its authorization to Congress on April 1 of each year, and its authorization would become effective in 90 days unless Congress disapproved. There would be only two categories of executives -noncareer, and the overall Government "mix" of approximately 75 percent career and career and 25 percent noncareer would be continued. -- In appointing a career executive, the agency would conduct an intensive search for the best candidate, and would present its candidate to an eminent Qualifications Board for prior approval. -- Fifteen to 20 Qualifications Boards, acting as agents of the Commission, would operate throughout the Government for occupations within their cognizance, and would review the agency's selectee in terms of how the agency identified likely candidates, the selectee's potential for long-term contributions, and his overall qualifications for executive service. - Within their authorized strengths, employing agencies would have complete authority to hire and remove noncareer executives, and the appointment of a noncareer executive would not require approval of a Qualifications Board. All executives, career and noncareer, could be assigned wherever needed in the agency, so long as the duties are of executive caliber, and regardless of organizational or geographic location assignments are not made arbitrarily or capriciously. provided that the - Career appointments would be made on the basis of 3-year employment agreements which could be renewed, not to reduce the executive's salary, and (b) not to separate him except for The agency's obligations would be (a) cause, nor to demote him from executive status, would be to serve wherever needed in the organization. The executive's obligation He could resign or retire (if eligible) at any time, and could accept a transfer to another agency. - At the expiration of an agreement, the agency would have the option of offering the executive a 3-year renewal. Should the agency choose not to renew, or should the executive decline an offer of renewal, the agency could separate him involuntarily if he has completed 30 years of service, thus making him eligible for immediate retirement annuity. In all other cases, the agency would have to offer the executive a continuing GS-15 position in the career service, and he would be entitled, for 2 years, to a rate of pay equal to his last executive salary before reverting to the appropriate rate of the GS-15 salary schedule. If an agreement is not renewed by the agency, the executive could accept the offer of a GS-15 position, or could elect to retire if eligible for optional or discontinued service annuity, or could accept separation with severance pay if he is not eligible to retire. Executives who believe that their agencies have not followed the requirements of employment agreements could appeal to the Civil Service Commission for review of the contested action and the decision of the Civil Service Commission would be binding on the agency. The Federal Executive Service would be placed into effect 1 year after enactment, allowing time for operating procedures and regulations to be developed. President Nixon, in his message today to Congress, recommended enactment of a legislative proposal to establish a new Federal Executive Service in the executive branch. Accordingly, we are forwarding for consideration by the Congress this request to establish such a new personnel "Service." In addition to the draft bill to amend Title 5, United States Code, to establish and govern the Federal Executive Service, we are enclosing a section analysis and a detailed explanatory document entitled "The Federal Executive Service." There is a growing recognition that the success of Government programs depends on the effectiveness of men and women who manage them. There is increasing concern voiced by responsible leadership in and out of Government that the way in which the Federal Government manages its executive manpower, particularly its career executives, is not adequate. The calls for change have come from many quarters: Administration spokesmen, Members of Congress, political managers, career executives, Federal personnel managers, and the academic community. The Civil Service Commission recognized the need for, and has now completed, a thorough review and analysis of the current executive manpower program. We have concluded that basic changes requiring new legislation are needed. The proposed bill establishes in the executive branch a Federal Executive Service covering all positions previously established at grades GS-16, 17 and 18, and most of the other executives falling within the same pay range under other pay authorities (about 7,000 current executives). The coverage of the service is based on level of duties and on salary levels, not on individually classified jobs. The coverage will be extremely broad in order to correct, as far as possible, the existing fragmentation of present appointment authorities and personnel systems. It includes all present and future groups of civilian executives in the executive branch, except those specifically excluded in the statute, and those subsequently excluded by the President. It establishes similar programs in non-executive branch agencies, except that there would be a direct relationship between those agencies and the Congress. The personnel management system called for in the proposal is especially designed to meet the unique problems of executive level employment. It is characterized by a greater degree of managerial freedom than now prevails and a special concern for the employment and utilization of career officials. One of the most important benefits anticipated from the Federal Executive Service is the elimination of many restrictions which have inhibited the flexible assignment and utilization of personnel as needed within their agencies. We expect that the removal of these constraints will bring about a significant increase in the mobility of executives within their departments and agencies. This new program should serve to erode narrow perspectives and parochial loyalties, and to foster broader experiences and outlooks on the part of executives. We believe such intra-agency mobility is a necessary first step toward increasing the mobility of executives across agency lines. The Federal Executive Service also includes special features addressing the concerns expressed recently by the Congress that the number of upper level spaces have increased without regard to program priorities and budget allocations. Agency heads share that concern and the additional concern of the Congress that the authorizations of positions are becoming increasingly fragmented. The bill does away with the eary special authorities and special quota provisions of the present system. The new system will be far more understandable to all and more easily managed. A new and comprehensive reporting eystem will provide the President and the Congress with detailed information about executive manpower management which, heretofore, was not readily available, thereby facilitating the Administration's overview of this vital resource. Furthermore, the interest in and responsibility of the Congress for monitoring executive employment and utilization and providing legislative oversight is fully recognized in the provisions for this stewardship report. |