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FPCD-80-85 1 (1980-09-19)

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                  UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548



FEDERAL PERSONNEL AND
COMPENSATION DIVISION
   B-196181                                     September 19, 1980       ,



   The Honorable Robert A. Frosch
   Administrator, National Aeronautics
     and Space Administration                                       <if

   Dear Dr. Frosch:

        Subject: CFirst Look at Senior Executive Service
                  Performance Awards/NASJ (FPCD-80-85)

        During July 1980, members of my staff reviewed Senior
   Executive Service (SES) bonus payments at the National Aero-
   nautics and Space Administration (NASA) and two other agen-
   cies as part of a study directed by the Congress. Results
   of this study are included in our report entitled First
   Look at Senior Executive Service Performance Awards,
   FPCD-80-74, August 15, 1980 (copy enclosed).

        We concluded that the performance awards were within
   the requirements of the Civil Service Reform Act, as well as
   Office of Personnel Management (OPM) guidance. But we re-
   ported that each of the agencies experienced some procedural
   difficulties in administering these awards. We did not make
   specific recommendations to the three agencies in our report.
   In lieu of this, we are writing this letter to share a few
   of our observations about NASA's bonus system and to outline
   some recommendations you may wish to consider.

   COMPOSITION OF THE PERFORMANCE
   REVIEW BOARDS (PRBs)

        All of NASA's Executive Position Managers (EPMs) re-
   ceived either bonuses or meritorious or distinguished rank
   nominations. As you know, the Senior Executive Committee
   serves as the PRB for FPM bonus and performance rating recom-
   mendations. The committee was chaired by the Deputy Adminis-
   trator who was also the official responsible for rating and
   recommending EPMs for bonuses.


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