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The primary purpose of this Migration Planning Guidance (MPG) is to assist customer agencies to prepare for, and manage, a migration of their human resource management operations to a shared services environment under the Human Resources Line of Business (HR LOB) initiative. The MPG provides tools and guidance to agency human resources (HR) executives, their management teams, and the management teams of public and private shared service centers (SSCs). The MPG should be helpful to all organizations involved with Federal human resource management. The MPG is a living document and will be updated periodically.
The HR LOB initiative was launched in 2004 to support the vision articulated in the President's Management Agenda. The HR LOB is expected to help the Federal government realize the potential of electronic government by significantly enhancing human resources service delivery within the executive branch. The HR LOB Concept of Operations (CONOPS), summarized in Section 3, proposes a near-term service delivery model in which HR services relating to human resources information systems (HRIS) and payroll operations move from the agencies to HR shared service centers.
The HR LOB Business Reference Model (BRM), version 2, provides the detailed business activities that inform the Concept of Operations (CONOPS). It also provides the structure for operational placement decisions (e.g., retain at agency or move to shared service center). Some activities will continue to be performed by customer agencies; other activities will be performed in the future by shared service providers; and some activities will be performed jointly by customer agencies and shared service providers. Additionally, BRM activities in this end-to-end process offer a tangible basis for identifying provider requirements: the specification of technology, process, role and service level expectations of the service providers.
This MPG document provides stakeholders:
The HR LOB Migration Planning Guidance contained herein will allow customer agencies to effectively and efficiently migrate to SSCs and increase their focus on the Strategic Management of Human Capital. In turn, HR shared service centers will deliver the HR core and non-core services defined in the HR LOB CONOPS in an efficient and cost-effective manner with a focus on customer and service quality.
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The vision of the HR LOB initiative is to provide "Governmentwide, modern, cost-effective, standardized and interoperable human resource solutions providing common core functionality to support the Strategic Management of Human Capital and addressing duplicative and redundant HR systems and processes across the Federal Government." The scope of the migration guidance is both organizational and functional. It applies to all customer agencies and public and private shared service providers. The major goals and objectives of HR LOB are outlined in the table below.
Improved Management of Human Capital Improve the Government wide Strategic Management of Human Capital
Operational Efficiencies Achieve or increase operational efficiencies in the acquisition, development, implementation and operation of human resources management systems
Cost Savings / Avoidance Achieve or increase cost savings/avoidance from HR solution activities
Improved Customer Service Improve customer services
The benefits of achieving the goals and objectives outlined above include:
The HR LOB governance structure establishes the oversight and development of the common solution(s) for the transformation of the Federal government from a duplicative, dispersed HR IT environment to a standardized solution or set of solutions characterized by interoperability, efficiency, and service excellence. The governance structure described below was developed to enable a competitive environment in which customer agencies have the option to choose from a public or private shared service center for their human resources functions (core and noncore) and to facilitate a seamless integration of HR solutions. It ensures that each federal agency has a voice in determining how the common solution(s) will be developed and implemented while enabling existing SSCs to participate in the process. The current governance structure of the HR LOB includes two tiers.
Figure 1: HR LOB Governance Structure
HR LOB published the Frequently Asked Questions document that covers the following issues:
The below questions pertain to migrations to SSCs and are taken directly from the HR LOB Frequently Asked Questions document.
The HR LOB has thus far selected six public sector SSCs to provide HR services for the Federal Government. These six SSCs are:
A panel composed of representatives from the MAESC agencies reviewed and qualified the current public sector SSCs.
OPM and GSA have partnered to establish and administer a schedule of private sector SSCs on Multiple Award Schedule 738.X, for which the Federal Acquisition Service at GSA is the responsible party. Currently, the schedule contains four private sector SSCs to provide HR services for the Federal Government. These four private sector SSCs are:
A panel composed of representatives from the MAESC agencies reviewed and qualified the current private sector SSCs. More information about the schedule and SSC offerings is available on GSA's website.
The HR LOB currently has six Federal agencies qualified as HR LOB SSCs and four Federal agencies qualified as e-Payroll providers. Three out of the four e-Payroll providers are also qualified as HR LOB SSCs. The Department of the Interior's National Business Center, the Department of Agriculture's National Finance Center, and the General Services Administration are all SSCs as well as e-Payroll providers. The remaining e-Payroll provider - The Department of Defense's Defense Finance and Accounting Service (DFAS) is an e-Payroll provider but is not an HR LOB SSC. In addition to the four e-Payroll providers, Accenture National Security Services in partnership with ADP, Allied Technology Group, Inc. in partnership with Ceridian, and Carahsoft Technology Corporation in partnership with Ceridian also offer payroll services.
Specific guidance for the SSC selection process and public-private competition is included in the Competition Framework section of this document.
The migration dates will depend on each agency. Migration decisions are made by the agency and should be based on the state of an agency's current HR systems and how imminently the agency needs to modernize or replace their systems. Each agency is expected to work closely with the HR LOB and OMB to determine its readiness for the selection of, and migration to an SSC.
The migration costs will be borne by the migrating agencies. Agencies should take this into consideration during their budget formulation process and coordinate their planning activities with OMB and OPM. More information is provided in Section 4 of this document.
It may be appropriate in the Assess, Define, Select, and Migrate phases documented in the Migration Roadmap to engage Labor Relations at the customer agency. In particular, it may be appropriate during activities around organizational readiness assessments, change management strategies and plans, and the identification and revision of job roles and responsibilities.
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