VA Reductions in Force (RIF) – Competitive Area

• Defines the limits, or boundaries, within which employees compete for retention.
• Defined by, and includes all employees within the:
  • Organizational unit(s), and
  • Geographical location (e.g., local commuting area)
• Employees compete for retention only with other employees in the same competitive area.
• There is no minimum or maximum number of employees in a competitive area.
• The minimum standard is:
  • Organizational: a subdivision of the agency under separate administration*
  • Geographical: within the local commuting area
• There is no maximum standard:
  • Organization could be defined agency-wide; geographical location could be defined as nationwide
• Agencies must keep records when establishing or changing competitive areas and publish descriptions or make them readily available for review by employees and OPM.
• An agency must establish competitive areas at least 90 days prior to a RIF effective date unless, at its option, the agency requests an OPM exception to the usual 90-day competitive area requirement.

• May establish a competitive area comprised only of pay band positions when the competitive area would otherwise include pay band positions and other positions not covered by a pay band.
• May not define a competitive area based on other considerations (such as bargaining unit membership, grade, occupation, etc.).
• Must establish a separate competitive area for an Inspector General activity established under authority of the Inspector General Act of 1978 (Public Law 95-452, as amended).
• The same competitive area standard applies to both headquarters and field activities.
• A minimum headquarters or field activity competitive area is any organizational unit under separate administration* within the local commuting area.

Used for purposes of establishing a minimum competitive area:

• The organizational unit or subdivision is separately organized;
• It is clearly distinguished from other units with regard to operation, work function, staff, and personnel management; and
• It has the authority to take or direct personnel actions (e.g., establish or abolish positions).

• Each agency has the responsibility to define local commuting areas consistent with the regulatory definition, which is the: “…geographic area that usually constitutes one area for employment purposes. It includes any population center (or two or more neighboring ones) and the surrounding localities in which people live and can reasonably be expected to travel back and forth daily to their usual employment.”
• OPM has not established a mileage standard to determine when two local duty stations would be included in the same local commuting area.

Competitive areas are established based on organizational unit (no lower than a subdivision) and geographical location. If an organization has employees stationed in Washington, DC (or another location) and remote employees across the country, establishing the competitive area(s) depends on a couple of factors.

• Is the RIF affecting 100% of the employees in the organization?
• Is the organization part of a subdivision with other organizations not affected by RIF?

1. An organization is subject to 100% RIF, such as due to office/organizational closure, AND the DC organization is not part of a larger subdivision, then the competitive area could be established as:
   1. Organizational subdivision, nationwide (to encompass all employees of the unit regardless of duty location)
2. An organization has positions located in Washington, DC and remotely. All remote positions are being abolished in the organization. The agency could establish two (2) competitive areas:
   1. Organizational subdivision, Washington, DC
   2. Organizational subdivision, nationwide except for Washington, DC
3. An organization has employees stationed in Washington, DC and remotely across the country. The DC organization will not be subject to 100% RIF and will have positions remain. Positions in the remote locations are all being abolished. The DC location could be a separate competitive area to allow for retention within the DC-located employees only. The agency could establish two (2) competitive areas:
   1. Organizational subdivision, Washington, DC
   2. Organizational subdivision, nationwide except for Washington, DC

4. An office with positions located in Washington, DC and in the field is being abolished. This office is located within a subdivision with other offices. Retention standing will matter because the affected office would be competing with these other offices in the same competitive area and the employees may have retention rights to positions within those other offices. The agency could establish two (2) competitive areas:

   1. Organizational subdivision, Washington, DC
   2. Organizational subdivision, nationwide except for Washington, DC

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Once an agency establishes competitive areas, it will establish competitive levels within those areas. Competitive levels consist of all positions in a competitive area which are in the same grade (or occupational level) and classification series, and which are similar enough in duties, qualification requirements, pay schedules, and working conditions.

REMINDER: Agencies may not define a competitive area based on other considerations (such as bargaining unit membership, grade, occupation, etc.).

The agency request to OPM should include the following information:

1. Identification of the proposed competitive area, including the organizational segment, geographic location, and limits of the local commuting area;
2. A description of how the proposed area differs from the one previously established for the same unit and geographic area;
3. An organizational chart of the agency showing the relationship between the organizational components within the competitive area and other components in the commuting area;
4. The number of competing employees in the proposed competitive area;
5. A description of the operation, work function, staff, and personnel administration of the proposed area and, where appropriate, a description of how the area is distinguished from others in these respects; and
6. A discussion of the circumstances that led to the proposed changes less than 90 days before a proposed reduction.

The agency request should be signed by the designated agency official and formally submitted to OPM at employ@opm.gov.