An agency that separates a preference eligible from a restricted position by reduction in force under part 351 of this chapter because of a contracting out situation covered in Sec. 330.404 must, consistent with Sec. 330.603, advise the employee of the opportunity to participate in available career transition programs. The agency is also responsible for:
(a) Applying OMB's policy directives on the preference eligible's right of first refusal for positions that are contracted out to the private sector; and
(b) Cooperating with State units as designated or created under title I of the Workforce Investment Act of 1998 to retrain displaced preference eligibles for other continuing positions.