27:0040(10)AR - Nat'l Center for Toxicological Research and AFGE Local 3393 -- 1987 FLRAdec AR

 27 FLRA No. 10
 
 NATIONAL CENTER FOR TOXICOLOGICAL 
 RESEARCH
 Activity
 
 and
 
 AMERICAN FEDERATION OF GOVERNMENT 
 EMPLOYEES, LOCAL 3393
 Union
 
                                            Case No. 0-AR-1261
 
                                 DECISION
 
                         I.  Statement of the Case
 
    This matter is before the Authority on exceptions to the award of
 Arbitrator Francis X. Quinn filed by the Department of Health and Human
 Services (the Agency) under section 7122(a) of the Federal Service
 Labor-Management Relations Statute (the Statute) and part 2425 of the
 Authority's Rules and Regulations.
 
                  II.  Background and Arbitrator's Award
 
    A grievance was filed and submitted to arbitration claiming that
 management's determination to contract out the Activity's maintenance
 and operation functions violated applicable procurement laws, rules and
 regulations.  The Arbitrator first found that the grievance was
 grievable and arbitrable.  On the merits the Arbitrator made the
 following findings.  He found that the Activity "violated the intent and
 spirit of Federal Acquistion Regulation, Chapter 1, 7.304 which deals
 with integrity and confidentiality of cost estimates for government
 performance." The Arbitrator further found that the Activity's "failure
 to insert required notices of cost comparison in the solicitation when
 conducting by negotiation violated Federal Acquisition Regulation,
 Chapter 1, Subparts 7.305(b) and 52.207-2." He also found that, with
 respect to OMB Circular A-76 which directs that the in-house cost
 estimate be based on the most efficient and cost effective operation,
 the Activity's in-house cost estimate was "a glaring violation of the
 spirit and intent of OMB A-76." Regarding the Activity's failure to
 render a decision on the Union's appeal within 30 calendar days, the