22:0736(84)AR - GSA and AFGE Council 236 -- 1986 FLRAdec AR

[ v22 p736 ]
The decision of the Authority follows:

 22 FLRA No. 84
                                            Case No. 0-AR-905
                         I.  STATEMENT OF THE CASE
    This matter is before the Authority on an exception to the award of
 Arbitrator Ellen M. Bussey filed by the Agency under section 7122(a) of
 the Federal Service Labor-Management Relations Statute and part 2425 of
 the Authority's Rules and Regulations.
    In one of two grievances filed in this case and submitted to
 arbitration, the Union contended that the Activity's determination to
 contract out a certain custodial activity to the National Institute of
 the Severely Handicapped pursuant to 41 U.S.C. Sections 46-48c /*/ was
 not in accordance with OMB Circular A-76 (which prescribes general
 policies for contracting out).  The Arbitrator found that this grievance
 was arbitrable, but on the merits denied the grievance.
                              III.  EXCEPTION
    In its exception the Agency contends that the Arbitrator's finding
 that the grievance was arbitrable is contrary to management's right to
 make determinations with respect to contracting out pursuant to section
 7106(a)(2)(B) of the Statute.
                       IV.  ANALYSIS AND CONCLUSIONS
    In Headquarters, 97th Combat Support Group (SAC), Blytheville Air
 Force Base, Arkansas and American Federation of Government Employees,
 AFL-CIO, Local 2840, 22 FLRA No. 72 (1986), the Authority once again
 addressed the issue of whether a grievance claiming that a procurement
 action failed to comply with OMB Circular A-76 was grievable and
 arbitrable under the Statute.  Citing American Federation of Government
 Employees, AFL-CIO, National Council of EEOC Locals and Equal Employment
 Opportunity Commission, 10 FLRA 3 (1982) (proposal 1), enforced sub nom.
 EEOC v. FLRA 744 F.2d 842 (D.C. Cir. 1984), cert. dismissed, 106 S. Ct.
 1678 (1986) (per curiam), the Authority again held that such a grievance
 is within the broad scope grievance procedure prescribed by the Statute
 and is not precluded by management's right under section 7106(a)(2)(B)
 to make determinations with respect to contracting out.  Consequently,
 we conclude that the Agency's exception provides no basis for finding
 the award deficient as contrary to section 1706(a)(2)(B) of the Statute.
  Furthermore, contrary to the arguments of the Agency, no basis is
 provided for reconsidering these decisions or finding them inapplicable
 because the procurement action in this case was pursuant to 41 U.S.C.
 Sections 46-48c.  The Agency's argument that the procurement action was
 exempted by these statutory provisions from the disputed requirements of
 Circular A-76 bears on the resolution of the grievance on the merits and
 not on whether the grievance is grievable and arbitrable under the
 Statute.  See Blytheville Air Force Base, slip op. at 6-7.
                               V.  DECISION
 Accordingly, the Agency's exception is denied.  Issued, Washington,
 D.C., July 28, 1986.
                                       /s/ JERRY L. CALHOUN
                                       Jerry L. Calhoun, Chairman
                                       /s/ HENRY B. FRAZIER III
                                       Henry B. Frazier III, Member
                                       FEDERAL LABOR RELATIONS AUTHORITY
                ---------------  FOOTNOTES$ ---------------
    (*) These provisions provide for procurement of commodities and
 services by the Federal Government from qualified nonprofit agencies for
 the blind and the severely handicapped.