Federal Downsizing: Buyouts at the Farm Service Agency
GGD-97-133
Published: Jul 23, 1997. Publicly Released: Jul 29, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed voluntary separation incentives or "buyouts" at the Farm Service Agency (FSA), focusing on: (1) whether FSA's fiscal year (FY) 1997 buyout program was planned in accordance with legal requirements; (2) whether the decision to grant buyouts was based on a well-supported cost and savings analysis; and (3) the results of the FY 1997 buyouts, including the impact of buyouts and downsizing on the agency's operations. GAO did not independently verify agency officials' statements about the impact of downsizing on service delivery nor about how successful agency efforts such as outsourcing mitigated the loss of expertise created by downsizing.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should ensure that a well-supported cost and savings analysis of buyouts and RIFs is part of any future decision to offer buyouts to FSA employees. The analysis should show the economic advantage of either buyouts or RIFs for the agency as a whole and for those situations where employees might be separated in offices that are closing. |
Closed – Implemented
For FY1999, the agency did an examination of costs and savings of buyouts and RIFs and targeted most separations to RIFs because it found eligibility for buyouts was considerably lower (due to years of downsizing) and because RIFs are cheaper than buyouts in the year they are accomplished.
|
| Department of Agriculture | The Secretary of Agriculture should direct the FSA Administrator, in planning any future buyouts, to ensure that positions or occupational series where the loss of experienced personnel may adversely affect the agency's operations be excluded from buyout offers. |
Closed – Implemented
For the FY1998 buyout, FSA specifically excluded headquarters employees in the GS-475 series from buyout consideration. The agency also identified specific occupations from which only a limited number of employees would be considered for buyouts.
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| Farm Service Agency | The Administrator, FSA, should ensure that buyouts are linked to areas where workloads are anticipated to decline, or to areas where separations will assist the agency in meeting organizational workforce goals, rather than offered broadly across occupational groups. |
Closed – Implemented
FSA has taken steps to ensure that buyouts are completed in a manner to minimize adverse effects on its ability to conduct its operations. Buyout offers were made to certain employees only after ensuring that agency operations would not be negatively affected.
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Topics
Budget cutsEarly retirementCivilian employeesComparative analysisCost analysisEmployee buyoutsEmployee transfersFederal downsizingFederal employeesReductions in forceSeverance pay