Science and Technology Reinvention Laboratory (STRL) Personnel Demonstration Project in the Technical Center of the U.S. Army Space and Missile Defense Command (USASMDC)
| Published date | 19 September 2019 |
| Citation | 84 FR 49255 |
| Record Number | 2019-20329 |
| Section | Notices |
| Court | Defense Department |
Federal Register, Volume 84 Issue 182 (Thursday, September 19, 2019)
[Federal Register Volume 84, Number 182 (Thursday, September 19, 2019)]
[Notices]
[Pages 49255-49276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20329]
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DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID DOD-2019-OS-0108]
Science and Technology Reinvention Laboratory (STRL) Personnel
Demonstration Project in the Technical Center of the U.S. Army Space
and Missile Defense Command (USASMDC)
AGENCY: Under Secretary of Defense for Research and Engineering
(USD(R&E)), DoD.
ACTION: Notice of proposal to adopt and modify an existing personnel
management demonstration project.
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SUMMARY: This Federal Register Notice (FRN) serves as notice of the
proposed adoption of an existing STRL Personnel Management
Demonstration Project by the Technical Center, U.S. Army Space and
Missile Defense Command (USASMDC). The Technical Center proposes to
adopt, with some modifications, the STRL Personnel Demonstration
Project implemented at the U.S. Army Combat Capabilities Development
Command (CCDC) Aviation and Missile Center (AvMC) (previously
designated as the Aviation and Missile Research, Development, and
Engineering Center).
DATES: The Technical Center's demonstration project proposal may not be
implemented until a 30-day comment period is provided, comments
addressed, and a final FRN published. To be considered, written
comments must be submitted on or before October 21, 2019.
ADDRESSES: You may submit comments, identified by docket number and
title, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Department of Defense, Office of the Chief Management
Officer, Directorate for Oversight and Compliance, 4800 Mark Center
Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
Instructions: All submissions received must include the agency
name, docket number and title for this Federal Register document. The
general policy for comments and other submissions from members of the
public is to make these submissions available for public viewing on the
internet at http://www.regulations.gov as they are received without
change, including any personal identifiers or contact information.
FOR FURTHER INFORMATION CONTACT:
Technical Center, U.S. Army Space and Missile Defense
Command
[[Page 49256]]
(USASMDC): Mr. Chad Marshall, 5220 Martin Road, Redstone Arsenal, AL
35898-5000, (256) 955-5697, [email protected].
DoD: Dr. Jagadeesh Pamulapati, Director, Laboratories and
Personnel Office, 4800 Mark Center Drive, Alexandria, VA 22350, (571)
372-6372, [email protected].
SUPPLEMENTARY INFORMATION: Section 342(b) of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 1995, Public Law 103-337,
as amended by section 1109 of the NDAA for FY 2000, Public Law 106-65;
section 1114 of the NDAA for FY 2001, Public Law 106-398; and section
211 of the NDAA for FY 2017, Public Law 114.328, authorizes the
Secretary of Defense (SECDEF), through the USD(R&E) to conduct
personnel demonstration projects at DoD laboratories designated as
science and technology reinvention laboratories (STRLs). All STRLs
authorized by section 1105 of the NDAA for FY 2010, Public Law 111-84,
as well as any newly designated STRLs authorized by SECDEF or future
legislation, may use the provisions described in this FRN. STRLs
implementing this flexibility must have an approved personnel
management demonstration project plan published in an FRN and will
fulfill any collective bargaining obligations. Each STRL will establish
internal operating procedures (IOPs) to provide additional guidance on
implementation of the FRN.
1. Background
Many studies conducted since 1966 on the quality of the
laboratories and personnel have recommended improvements in civilian
personnel policy, organization, and management. Pursuant to the
authority provided in section 342(b) of Public Law 103-337, as amended,
a number of DoD STRL personnel demonstration projects have been
approved. The demonstration projects are ``generally similar in
nature'' to the Department of Navy's China Lake Personnel Demonstration
Project. The terminology ``generally similar in nature'' does not imply
an emulation of various features, but rather implies a similar
opportunity and authority to develop personnel flexibilities that
significantly increase the decision authority of laboratory commanders
and/or directors.
2. Overview
The Technical Center will adopt, with some modifications, the STRL
Personnel Demonstration Project published in 62 FR 34876, June 27, 1997
and implemented in the CCDC AvMC, Redstone Arsenal, Alabama. Section
1105(b) of the FY10 NDAA, as amended by section 1103 of the FY15 NDAA,
Public Law 113-291, authorizes the Technical Center, USASMDC to
implement an STRL Personnel Demonstration Project.
Adoption of CCDC AvMC's STRL Personnel Demonstration Project, with
modifications, will enable the Technical Center to achieve the best
workforce for their mission, adjust the workforce for change, improve
workforce quality, and allow the Technical Center to acquire and retain
an enthusiastic, innovative, and highly educated and trained workforce,
particularly scientists and engineers. The purpose of the project is to
demonstrate that the effectiveness of DoD laboratories can be enhanced
by allowing greater managerial control over personnel functions and at
the same time, expand the opportunities available to employees through
a more responsive and flexible personnel system. Implementation of a
STRL Personnel Demonstration Project in the Technical Center is
essential for competitive hiring and retention of a highly qualified
workforce.
3. Access to Flexibilities of Other STRLs
Flexibilities published in this FRN will be available for use by
the STRLs enumerated in section 1105 of the NDAA for FY 2010, Public
Law 111-84 as amended, if they wish to adopt them in accordance with
DoD Instruction 1400.37, ``Science and Technology Reinvention
Laboratory (STRL) Personnel Demonstration Projects'' (available at
https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/140037p.pdf) (and its successor instructions) and after the fulfillment
of any collective bargaining obligations.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems With the Present System
C. Changes Required/Expected Benefits
D. Participating Organization
E. Participating Employees
F. Labor Participation
G. Project Design
H. Personnel Policy Board
I. Funding Levels
III. Personnel System Changes
A. Broadbanding
B. Pay-for-Performance Management System
C. Classification
D. Hiring and Appointment Authorities
E. Employee Development
F. Staffing Supplement
IV. Training
A. Supervisors
B. Administrative Staff
C. Employees
V. Conversion
A. Conversion to the Demonstration Project
B. Conversion or Movement From a Project Position to a General
Schedule Position
VI. Project Duration
VII. Evaluation Plan
A. Overview
B. Evaluation Model
C. Evaluation
VIII. Demonstration Project Costs
IX. Required Waivers to Laws and Regulations
A. Title 5, United States Code
B. Title 5, Code of Federal Regulations
Appendix A: Project Evaluation and Oversight
Appendix B: Performance Elements
I. Executive Summary
The Technical Center is a subordinate organization of the USASMDC.
The Technical Center provides technologies to meet today's requirements
and future needs in directed energy, space, cyberspace, hypersonics,
and integrated air and missile defense by executing Science and
Technology (S&T) and Research and Development (R&D) programs within
core competencies; managing and conducting test programs; managing and
operating the Reagan Test Site; and conducting space operations and
space surveillance. To deliver technologies and solutions to enable
warfighter dominance, the Technical Center must be able to balance
customer requirements for near-term technical and scientific products
and information with the evolving capabilities of the workforce. These
missions will be significantly enhanced by personnel management changes
or flexibilities, to include funded education programs for degrees
related to mission areas; modified term appointment authorities such as
contingent employee, flexible length and renewable term authorities;
and establishment of Senior Scientific Technical Manager (SSTM)
positions.
This project adopts, with some modifications, the STRL personnel
demonstration project designed by the CCDC AvMC, with participation and
review by the Department of the Army (DA) and DoD. The foundations of
this project are based on the concept of linking performance to pay for
all covered positions; simplifying paperwork and the processing of
classification and other personnel actions; emphasizing partnerships
among management, employees, and the Union; and delegating
classification and other authorities to line managers. Additionally,
the intellectual capital of the Technical Center workforce will be
revitalized through the use of expanded opportunities for employee
development. These opportunities will reinvigorate the creative
intellect of the research and development community.
[[Page 49257]]
The Director of the Technical Center at USASMDC will execute and
manage the project. Project oversight within the DA will be achieved by
an executive steering committee made up of top-level executives, co-
chaired by the Deputy Assistant Secretary of the Army for Research and
Technology and the Deputy Assistant Secretary of the Army (Civilian
Personnel Policy)/Director, Civilian Personnel. Oversight external to
the Army will be provided by DoD.
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoD laboratories can be enhanced by allowing greater managerial
control over personnel functions and, at the same time, expanding the
opportunities available to employees through a more responsive and
flexible personnel system. The quality of DoD laboratories, their
people, and products has been under intense scrutiny in recent years.
This perceived deterioration of quality is due, in substantial part, to
the erosion of control, which line managers have over their human
resources. This demonstration, in its entirety, attempts to provide
managers, at the lowest practical level, the authority, control, and
flexibility needed to achieve quality laboratories and quality
products.
B. Problems With the Present System
The Technical Center's technology programs/products contribute to
the readiness of U.S. forces and to the stability of the American
economy. To complete its mission, the Technical Center must acquire and
retain an enthusiastic, innovative, and highly educated and trained
workforce, particularly scientists and engineers. The Technical Center
must be able to compete with the private sector and other government
agencies for the best talent and be able to make job offers in a timely
manner with the attendant monetary compensation and incentives to
attract high quality employees. The Technical Center must compete for
high quality scientists and engineers with (1) the CCDC AvMC, an STRL
established in 1997, (2) the Missile Defense Agency (MDA), and (3) the
private sector within the second largest Research Park in the United
States. Today, industry laboratories can make an offer of employment to
a promising new hire before the Technical Center can prepare the
paperwork necessary to begin the recruitment process.
The current personnel system does not enhance the Technical Center
Director's capability to achieve the full flexibility of a DoD STRL.
The DoD STRL Laboratory Personnel Demonstration Project provides more
authority and flexibilities needed by the Technical Center. The DoD
STRL's strategic objectives are supported by recent legislative
initiatives and published FRNs. These tenets include changing
procedures involving personnel management, research related
contracting, and facilities refurbishment; and enhancing the STRL
director's management authority. Managers must be given local control
of positions and classifications to enable movement of positions to
other lines of the business activity within the STRL to match supported
customers' needs, including needs stemming from weapon system life
cycles. In addition, Technical Center managers must be provided with
additional tools to timely reward and motivate employees.
C. Changes Required/Expected Benefits
This project is expected to demonstrate that a human resource
system tailored to the mission and needs of the Technical Center will
result in: (a) Increased timeliness of key personnel processes; (b)
increased retention rates of high quality employees and separation
rates of poor quality employees; and (c) increased customer
satisfaction with the Technical Center and its products by all
customers it serves. The primary benefit expected from this
demonstration project is greater organizational effectiveness.
The Technical Center will adopt, with some modifications, the
demonstration project designed and implemented by the CCDC AvMC. The
CCDC AvMC demonstration program was based on successful features of the
China Lake demonstration project and the National Institute of
Standards and Technology (NIST) project. The CCDC AvMC payband
structure is modified, however to improve personnel recruitment and
retention and preserve the same pay structure for clerical and
administrative employees across the entire USASMDC. The Engineers &
Scientists Occupational Family (DB) is modified slightly for payband
III to extend the cap to $10,000 above the GS-13, step 10 salary.
The STRL demonstration projects have produced impressive statistics
for on-the-job satisfaction for their employees versus that for the
federal workforce in general. The Technical Center's success is
dependent on its total workforce. The new authorities will provide
additional management tools that will enable the Technical Center to
attract and retain the best and brightest employees. Therefore, in
addition to expected benefits mentioned above, the Technical Center
demonstration project expects to find increased employee satisfaction
due to many aspects of the project, including pay equity, timely
classification decisions, and enhanced career development
opportunities. A full range of measures will be collected during the
project evaluation described in Section VII.
D. Participating Organization
The Technical Center is comprised of employees located mainly at
Redstone Arsenal, Alabama, with the remaining employees located at
sites at Albuquerque and White Sands Missile Range, New Mexico;
Washington, DC; and U.S. Army Kwajalein Atoll, Republic of Marshall
Islands. The SMDC Technical Center's successor organizations, if any,
will continue to be covered by this demonstration project.
E. Participating Employees
The demonstration project includes civilian appropriated fund
employees in the competitive and excepted service, and will cover
approximately 150 Technical Center civilian employees, unless otherwise
excluded. Senior Executive Service (SES) members, Senior Leader/
Scientific and Professional (SL/ST) employees, Federal Wage Grade (FWS)
employees, and Defense Civilian Intelligence Personnel System (DCIPS)
positions will not be covered in the demonstration project.
Additionally, DA interns will not be converted to the demonstration
project until completion of the intern program. Personnel added to the
Technical Center after implementation, in like positions covered by the
demonstration (through appointment, promotion, reassignment,
realignment, change to a lower grade, or where their functions and
positions have been transferred into the Technical Center) will be
converted to the demonstration project in accordance with this FRN,
Section V. Conversion. Successor organizations will continue coverage
in the demonstration project.
F. Labor Participation
The Technical Center began negotiations with American Federation of
Government Employees (AFGE) Local 1858 Union officials in the second
quarter, FY 2016, concerning this demonstration project's development.
AFGE Local 1858 represents professional and non-professional bargaining
unit employees in the Technical Center. Negotiations with AFGE Local
1858 influenced this demonstration project's design in areas of
significant concern to bargaining unit employees. The Technical Center
will
[[Page 49258]]
continue to fulfill its obligations to consult and/or negotiate with
AFGE, in accordance with 5 U.S.C. 4703(f) and 7117, and applicable
Executive Orders, in implementing the demonstration project. The Union
is an integral part of this STRL personnel demonstration project, and
will be a full partner in its implementation.
G. Project Design
The Technical Center engaged the Deputy Chief of Staff for
Personnel (G1), Deputy Chief of Staff for Resource Management (G8),
Office of Command Counsel and Staff Judge Advocate, AFGE Local 1858,
and senior managers in the USASMDC to consider the attributes developed
by and currently in use at the CCDC AvMC STRL personnel demonstration
project. An Integrated Process Team approach was used to review these
attributes. The team was led by management, and the team members were
managers and associates from the Technical Center, AFGE Local 1858,
other major functional organizations within the command and the CCDC
AvMC.
This personnel system design was subject to critical reviews at the
executive level within the command. The Technical Center reviewed
broadbanding systems currently practiced in the Federal sector.
Technical Center management conferred with AFGE Local 1858 to obtain
agreement for a partnership to pursue a demonstration project like the
CCDC AvMC's. Initial concept designs for this demonstration project
received critical reviews by headquarters elements of DA and DoD. AFGE
Local 1858 endorsed a partnership in pursuit of a STRL demonstration
project, as long as it is similar in nature to the demonstration
project currently implemented in the CCDC AvMC.
H. Personnel Policy Board
The Technical Center intends to establish an appropriate balance
between the personnel management authority of supervisors and the
demonstration project oversight responsibilities of a Personnel Policy
Board (PPB). The Technical Center Director will delegate the
demonstration project's management and oversight to a PPB whose
members, Chairperson, and Staff (other than union representatives) will
be appointed by the Director. The Union will have permanent membership
in the PPB and will select its representatives. The Union will only
participate in matters impacting bargaining unit employees. The PPB's
establishment will not affect the authority of any management official
in the exercise of the management rights set forth in 5 U.S.C. 7106.
The PPB will be tasked with the following:
1. Overseeing the civilian pay budget.
2. Determining the composition of the pay-for-performance pay pools
in accordance with the guidelines of this FRN and internal procedures.
3. Allocating funds to pay pool managers.
4. Reviewing operation of the Technical Center pay pools.
5. Reviewing hiring and promotion compensation, to include
exceptions to pay-for-performance salary increases.
6. Providing guidance to pay pool managers.
7. Monitoring award pool distribution.
8. Selecting participants for the Expanded Developmental
Opportunity Program, long term training, and any special developmental
assignments.
9. Ensuring in-house budget discipline.
10. Assessing the need for changes to demonstration project
procedures and policies.
11. Adjudicating requests for retention pay, to include requests to
adjust individual employee pay setting to avoid unintended pay loss due
to conversion to the demonstration project.
I. Funding Levels
The Under Secretary of Defense (Personnel and Readiness), may, at
his/her discretion, adjust the minimum funding levels of performance
pay pools to take into account factors such as the Department's fiscal
condition, guidance from the Office of Management and Budget, and
equity in circumstances when funding is reduced or eliminated for GS
pay raises or awards.
III. Personnel System Changes
A. Broadbanding
1. Occupational Families
Occupations at the Technical Center will be grouped into
occupational families. Occupations will be grouped according to
similarities in type of work, customary requirements for formal
training or credentials, and in consideration of the business practices
at the Technical Center. Common patterns of advancement within the
Technical Center's occupations, as practiced at DoD Laboratories and in
the private sector, will also be considered. The Technical Center's
current occupations and grades have been examined, and their
characteristics and distribution were utilized as guidelines in
developing the three occupational families described below:
a. Engineers and Scientists (E&S). This occupational family
includes all technical professional positions, such as engineers,
physicists, chemists, metallurgists, mathematicians, operations
research analysts, and computer scientists. Specific course work or
educational degrees are generally required for these occupations.
b. Technical and Business Support. This occupational family
contains positions that directly support the E&S mission; it includes
specialized functions in fields such as technical information
management, equipment specialists, quality assurance, engineering and
electronics technicians, finance, accounting, general administrative,
business and industry specialists, and management analysis. Employees
in these jobs may or may not require specific course work or
educational degrees. Analytical abilities and specialized knowledge in
administrative fields are required for these positions. Knowledge of,
and training in, various electrical, mechanical, chemical, or computer
principles, methods, and techniques, as applicable to the specific
positions, are also generally required.
c. General Support. This occupational family is composed of
positions for which minimal formal education is needed, but for which
special skills, such as office automation, are usually required. This
occupational family includes: Clerical work, that usually involves
processing and maintaining records; and assistant work, that requires
knowledge of methods and procedures within a specific administrative
area. Other support functions include secretarial work and other
clerical support.
2. Paybands
Each occupational family will be composed of discrete paybands
(levels) corresponding to recognized advancement within the
occupations. These paybands will replace grades used under the GS
system, and will not be the same for all occupational families. Each
occupational family will be divided into four to five paybands; each
payband will encompass one or more of the corresponding grades under
the GS system. A salary overlap will be maintained, similar to the
current overlap between GS grades.
Exceptional qualifications, specific organizational requirements,
or other compelling reasons may lead an employee to enter a payband at
a higher level.
The proposed paybands for the occupational families and how they
relate to the current GS grades are shown in Figure 1. Application of
the
[[Page 49259]]
Fair Labor Standards Act (FLSA) within each payband is also shown in
Figure 1. This payband concept has the following advantages:
1. It may reduce the number of classification decisions required
during an employee's career.
2. It simplifies the classification decision-making process and
paperwork. A payband covers a larger scope of work than a grade under
the GS system, and will be defined in shorter and simpler language.
3. It supports delegation of classification authority to line
managers.
4. It provides a broader range of performance-related pay for each
level. In many cases, employees whose pay would have been frozen at the
top step of a GS system grade will now have more potential for upward
movement in the broader payband.
5. It prevents the progression of low performers through a payband
by mere longevity, since job performance serves as the basis for
determining pay.
The Technical Center will modify the CCDC AvMC flexibility
establishing and implementing the concept of Payband V of the Engineers
and Scientists occupational family. The CCDC AvMC paybanding plan
expanded the paybanding concept used at China Lake and NIST by creating
Payband V of the Engineers and Scientists (E&S) occupational family.
This payband pertains to SSTMs who engage in research and development
in the physical, biological, medical or engineering sciences, or
another field closely related to the mission of the Technical Center
and carry out technical supervisory responsibilities. SSTM positions
may be filled using the authority in 10 U.S.C. 2358a. The number of
such positions may not exceed two percent of the number of scientists
and engineers employed at the Technical Center as of the close of the
last fiscal year before the fiscal year in which any appointments
subject to the numerical limitation are made.
The SSTM program will be managed and administered by the Technical
Center Director. The Technical Center will review its positions
classified at the GS-15 or equivalent level to determine those that may
warrant classification above GS-15 equivalency. Panels will be created
to assist in filling SSTM positions. Panel members will be selected
from a pool of current Technical Center SES members, and later those in
SSTM positions, and an equal number of individuals of equivalent
stature from outside the laboratory to ensure impartiality, breadth of
technical expertise, and a rigorous and demanding review. The panel
will apply criteria developed largely from the current Office of
Personnel Management (OPM) Research Grade Evaluation Guide for
positions exceeding the GS-15 level. Vacant SSTM positions will be
competitively filled to ensure that selectees are preeminent
researchers and technical leaders in the specialty fields who also
possess substantial managerial and supervisory abilities.
[GRAPHIC] [TIFF OMITTED] TN19SE19.022
3. Fair Labor Standards Act
FLSA exempt and nonexempt determinations will be made consistent
with criteria found in 5 CFR part 551. There are five paybands (see
Figure 1) where employees can be either exempt or nonexempt from
overtime provisions. For these five paybands supervisors with
classification authority will make the determinations on a case-by-case
basis by comparing the duties and responsibilities assigned, the
classification standards for each payband, and the FLSA criteria under
5 CFR part 551. As needed, the advice and assistance of the servicing
Civilian Personnel Advisory Center (CPAC) will be obtained in making
determinations as part of the performance review process. The benchmark
position descriptions will not be the sole basis for the determination,
and the basis for an FLSA exemption determination will be documented
and attached to each description. Exemption criteria will be narrowly
construed and applied only to those employees who clearly meet the
spirit of the exemption. Changes will be documented and provided to the
Deputy Chief of Staff for Personnel (G-1) and CPAC, as appropriate.
4. Simplified Assignment Process
Today's environment of downsizing and workforce transition mandates
that the Technical Center have increased flexibility to assign
employees. Broadbanding can be used to address this need. As a result
of the assignment to a particular level descriptor, the organization
will have increased flexibility to assign an employee, without pay
change, within broad descriptions consistent with the organization's
needs and the individual's qualifications and rank or level. Subsequent
assignments to projects, tasks, or functions anywhere within the
organization requiring the same level, area of expertise, and
qualifications would not constitute an assignment outside the scope or
coverage of the individual's current level descriptor.
Such assignments within the coverage of the generic descriptors are
accomplished without the need to
[[Page 49260]]
process a personnel action. For instance, a technical expert can be
assigned to any project, task, or function requiring similar technical
expertise. Likewise, a manager could be assigned to manage any similar
function or organization consistent with that individual's
qualifications. This flexibility allows broader latitude in assignments
and further streamlines the administrative process and system.
5. Promotion
A promotion is an action to move an employee to either a higher
payband in the same occupational family, or a payband in another
occupational family in combination with an increase in the employee's
salary. Positions with known promotion potential to a specific band
within an occupational family will be identified when they are filled.
Not all positions in an occupational family will have promotion
potential to the same band. Movement from one occupational family to
another will depend upon individual knowledge, skills, abilities, and
the organization's needs.
Promotions will be processed under competitive procedures in
accordance with merit principles and requirements and the local merit
promotion plan. The following actions are excepted from competitive
procedures:
(a) Re-promotion to a position which is in the same payband and
occupational family as the employee previously held on a permanent
basis within the competitive service.
(b) Promotion, reassignment, demotion, transfer, or reinstatement
to a position having promotion potential no greater than the potential
of a position an employee currently holds or previously held on a
permanent basis in the competitive service.
(c) A position change permitted by reduction in force procedures.
(d) Promotion without current competition when the employee was
appointed through competitive procedures to a position with a
documented career ladder.
(e) A temporary promotion, or detail to a position in a higher
payband, of 180 days or less.
(f) A promotion based on reclassification of positions, to include
reclassification based on an incumbent's personal qualifications after
application of the Research Grade Evaluation Guide, the Equipment
Development Grade Evaluation Guide, Part III, or similar guides.
(g) A promotion resulting from the correction of an initial
classification error or the issuance of a new classification standard.
(h) Consideration of a candidate not given proper consideration in
a competitive promotion action.
6. Link Between Promotion and Performance
a. Career ladder promotions and promotions resulting from the
addition of duties and responsibilities are examples of promotions that
can be made noncompetitively. To be promoted noncompetitively from one
band to the next, an employee must meet the minimum qualifications for
the job and have a current performance rating of B or better (see
Performance Evaluation) or equivalent under a different performance
management system.
b. Selection of employees through competitive procedures will
require a current performance rating of B or better for internal
Technical Center recruitment.
B. Pay-for-Performance Management System
1. Overview
The performance evaluation system will link compensation to
performance through annual performance appraisals and performance
scores. The performance evaluation system will allow optional use of
peer evaluation and/or input from subordinates as determined
appropriate by the PPB. The system will have the flexibility to be
modified, if necessary, as more experience is gained under the project.
A performance evaluation will consist of three meetings held between an
employee and the supervisor during the performance cycle: The initial
meeting (to establish performance objectives and performance elements),
the midpoint meeting (a progress review), and the performance appraisal
(a performance review and evaluation feedback meeting). The performance
rating cycle will be October 1 through September 30.
2. Performance Objectives
Performance objectives are statements of job responsibilities based
on the work unit's mission, goals, and supplemental benchmark position
descriptions. Employees and supervisors will jointly develop
performance objectives which will reflect the types of duties and
responsibilities expected at the respective pay level. In case of
disagreements, the supervisor's decision will prevail. Performance
objectives deal with outputs and outcomes of a particular job. The
performance objectives should be in place within 30 days from the
beginning of each rating period.
3. Performance Elements
Performance elements are generic job performance attributes, such
as technical competence, that an employee exhibits in performing job
responsibilities and associated performance objectives. The new
performance evaluation system will be based on critical and non-
critical performance elements defined in Appendix B. Each performance
element is assigned a weight within a specified range. The total weight
of all elements is 100 points. The supervisor assigns each element some
portion of the 100 points in accordance with its importance for mission
attainment. As a general rule, essentially identical positions will
have the same critical elements and the same weight. These weights will
be developed along with employee performance objectives.
4. Midpoint Review
A midpoint review between a supervisor and employee will be held to
determine whether objectives are being met and whether ratings on
performance elements are above an unsatisfactory level. Performance
objectives should be modified as necessary to reflect changes in
planning, workload, and resource allocation. The weights assigned to
performance elements may be changed during the midpoint review.
Additional reviews may be held to provide periodic feedback to the
employee on level of performance. If, at any point in the rating cycle,
the supervisor determines that the employee is not performing at an
acceptable level on one or more elements, the supervisor must alert the
employee and document the problem(s).
5. Employee Feedback to Supervisors
Opportunity for employee feedback to supervisors is a critical
component of this demonstration project. A voluntary feedback process
will be developed and implemented within six months after
implementation of the demonstration. Employee feedback will be for the
supervisors' information only, and will not be a factor in determining
the supervisor's annual ratings of record.
6. Performance Appraisal Process
A performance appraisal process will begin the final weeks of the
annual performance cycle, although an individual performance appraisal
may be conducted at any time after the minimum appraisal period of 120
days. The performance appraisal process brings supervisors and
employees together to discuss employee performance and results prior to
assigning the employee a rating of record. If the employee is
unavailable
[[Page 49261]]
for a meeting, the supervisor will document the reasons and provide a
written assessment of performance to the employee.
7. Performance Review
A supervisor will meet with the employee to discuss job performance
and accomplishments. The supervisor will notify the employee of the
review meeting and allow reasonable time for the employee to prepare a
list of accomplishments. Employees will have an opportunity at the
meeting to provide a personal performance assessment and describe
accomplishments. The supervisor and employee will discuss job
performance and accomplishments in relation to performance objectives
and performance elements. Supervisors will not assign performance
scores or performance ratings at this meeting.
8. Evaluation Feedback
In a meeting with the employee, the supervisor will inform the
employee of management's appraisal of the employee's performance on
performance objectives, and the employee's performance score and rating
on performance elements. During this meeting, the supervisor and
employee will also discuss and document performance objectives for the
next rating period.
9. Performance Scores
The overall performance score is the sum of individual performance
element scores. Employees will receive an academic-type rating of A, B,
C, D, or U depending upon the score attained. These summary ratings are
representative of pattern H (a five-level system) in the summary level
chart in 5 CFR 430.208(d)(1). This rating will become the rating of
record, and only those employees rated D or higher will receive
performance pay increases (i.e., basic pay increases), and/or
performance bonuses. A rating of an A will be assigned for scores from
90 to 100 points, B-High for scores from 85 to 89 points, B-Low for
scores 80 to 84 points, C for scores from 70 to 79 points, D for scores
50-69 points, and U for scores below 50 points, or a failure to achieve
at the 50 percent level of any critical element. The academic-type
ratings will be used to determine performance payouts as follows:
------------------------------------------------------------------------
Rating (score) Summary level Compensation
------------------------------------------------------------------------
A (90-100)...................... 5--Exceptional.... 4.0 shares.
B (High; 85-89)................. 4--Highly 3.5 shares.
Successful.
B (Low; 80-84).................. 4--Highly 3.0 shares.
Successful.
C (70-79)....................... 3--Fully 2.0 shares.
Successful.
D (50-69)....................... 2--Marginally 1.0 share.
Successful.
U (0-49)........................ 1--Unsatisfactory. N/A.
------------------------------------------------------------------------
Benchmark performance standards will be used to assist in selecting
the weighted points to assign to an employee's performance on each of
the performance elements. These benchmark performance standards,
published in the IOP, will be modified versions of the performance
standards used by CCDC AvMC (62 FR 34902). Each benchmark performance
standard will describe the level of performance associated with a
particular point on a rating scale. Supervisors may add supplemental
standards for employees they supervise to further elaborate the
benchmark performance standards.
10. Performance-Based Actions
The Technical Center Director or designee will implement a process
to rehabilitate, reduce, or remove poor performers. The process may
start at any time during the rating period and may lead to involuntary
separation. The process will begin when the supervisor identifies one
or more deficiencies that cause the level of performance to be at the U
(unsatisfactory) level based on a composite score that is less than 50
for all elements or a score on any critical element of less than 50
percent.
When the employee's performance is determined to be unsatisfactory
at the close of the annual rating period, the Unsatisfactory (U) rating
will become the rating of record for all matters relating to pay or
Reduction-in-Force (RIF). The process to address poor performance will
be described in the IOP.
The Technical Center Director will preserve all relevant
documentation which serves as the basis for an employment action
related to poor performance and will make it available for review by
the affected employee or the employee's designated representative. At a
minimum, the record will consist of a notice of proposed action; the
employee's written reply, if provided, or a summary if the employee
makes an oral reply; the written notice of decision; evidence regarding
the opportunity afforded the employee to demonstrate improved
performance; and any other material considered by the decision maker.
11. Adverse Actions
The Technical Center Director may take an adverse employment action
against an employee covered by the project only for such cause as will
promote the efficiency of the project. An employee against whom an
action is proposed will be provided at least 30 days advanced written
notice and a reasonable time, but not less than 7 days, to respond. An
employee against whom an action is proposed will be afforded the same
procedural and appeal rights provided to non-covered employees by 5
U.S.C. chapter 75 and related OPM regulations.
12. Awards
The Technical Center currently has an extensive awards program
consisting of both internal and external awards. On-the-spot, special
act (which are both performance related and nonperformance related),
and other internal awards (both monetary and nonmonetary) will continue
under the project, and may be modified or expanded as appropriate. DA
and DoD awards and other honorary non-cash awards will be retained.
The Technical Center Director will have the authority to grant
awards of up to $10,000 to covered employees for a special act. The
scale of the award will be determined using criteria in applicable DA
regulations.
13. Pay Administration
The objective is to establish a pay system that will improve the
Technical Center's ability to attract and retain quality employees. The
new system will be a pay-for-performance system and, when implemented,
will result in a redistribution of pay resources based upon individual
performance. The performance rating cycle in the Technical Center will
be October 1 through September 30, although the first cycle may be
shortened based on actual implementation date. The first performance
payout will be made effective with the first full pay period of
calendar year (CY) 2020 (January 2020).
[[Page 49262]]
Future pay adjustments will be effective at the beginning of the first
full pay period of subsequent calendar years. General Pay Increases
(GPI) and locality pay adjustments will be provided to all covered
employees on the same basis as they are provided to GS employees.
14. Pay-for-Performance
The Technical Center will use a simplified performance appraisal
system that will permit both the supervisor and the employee to focus
on quality of the work. The proposed system will permit the manager/
supervisor to base incentive pay increases entirely on performance or
value added to the organization's goals. This system will allow
managers to withhold pay increases from nonperformers, thereby giving
the nonperformer the incentive to improve performance or leave
government service. For example, employees with ratings of U will
receive no performance pay increase or performance bonus, but will
receive GPI.
Pay for performance has two components: Performance pay increases
and/or performance bonuses. The basic rates of pay used in computing
the pay pool and performance payouts exclude locality pay. Locality pay
will be added to the performance pay increases and/or performance
bonuses after calculations are completed. All covered employees will be
given the full amount of locality pay adjustments. Employees receiving
retained rates will receive a pay increase in accordance with 5 U.S.C.
5363. The funding for performance pay increases and/or performance
bonuses is composed of money previously available for within-grade
increases, quality step increases, promotions from one grade to another
where both grades are now in the same payband, and for some performance
awards. Additionally, funds will be obtained from performance pay
increases withheld for poor performance (see Performance Evaluation).
15. Performance Pay Pool
The performance pay pool is composed of a base pay fund and a bonus
pay fund. The payouts made to employees from the performance pay pool
will be a mix of base pay increases and bonus payments and will be paid
such that the allocated funds are distributed as intended.
The funding for the base pay fund is composed of money previously
available for within-grade increases, quality step increases, and
promotions between grades that are banded under the demonstration
project. The bonus pay fund is separately funded within the constraints
of the organization's overall performance award budget. The final bonus
pay allocation may be indexed after initial calculations, within the
constraints of in-house budget discipline, to be competitive with local
industrial economic demographics such as market bonus percentages.
Special ad hoc awards--e.g., suggestion awards, or special act awards,
will be separately funded within the constraints of the Technical
Center's operating budget and will not be included as part of the
performance pay pool. The Technical Center will calculate initial
performance pay pool funds and allocate these funds to pay pool
managers as appropriate. This pay pool allocation, approved by the
Technical Center Director, will be determined early in the annual
performance appraisal cycle.
16. Performance Pay Increases and/or Performance Bonuses
A pay pool manager is accountable for establishing final pay pool
funds. The pay pool manager assigns performance pay increases and/or
performance bonuses to individuals on the basis of an academic-type
rating, the value of the performance pay pool resources available, and
the individual's current basic rate of pay within a given payband. A
pay pool manager may request approval from the PPB or its designee to
grant a performance pay increase and/or bonus to an employee that is
higher than the compensation formula for that employee, to recognize
extraordinary achievement or to provide accelerated compensation for
local interns. Extraordinary achievement recognition grants a base pay
increase and/or bonus to an employee that is higher than the one
generated by the compensation formula for that employee. Any base pay
increase granted may not cause the employee to exceed the maximum rate
of pay in the assigned payband. The funds available for extraordinary
achievement recognition are separately funded within the constraints of
the organization's budget.
Performance payouts, for the first year, will be calculated for
each individual based upon a performance pay pool value that will be
3.7 percent (e.g., 2.4 percent performance pay + 1.3 percent
performance bonus) of the combined basic rates of pay of the assigned
employees. For subsequent years, this percentage, a payout factor, will
be adjusted as necessary to compensate for changing employee
demographics which impact the elements used in the GS system, such as
the amount of step raises, quality step increases, and promotions. For
subsequent years, the performance bonus pool value will be set at a
minimum of 1.0 percent of the total Lab Demo Base Salary, or the limit
set by DA if lower than 1.0 percent. An employee's performance payout
is computed as follows:
[GRAPHIC] [TIFF OMITTED] TN19SE19.023
[[Page 49263]]
Once the individual performance payout amounts have been
determined, the next step is to determine what portion of each payout
will be in the form of a base pay increase as opposed to a bonus
payment. A base pay share factor is derived by dividing the amount of
the base pay fund by the amount of the total performance pay pool. This
factor is multiplied by the individual performance payout amounts to
derive each individual's projected base pay increase. Certain employees
will not be able to receive the projected base pay increase due to base
pay caps. Base pay is capped when an employee reaches the maximum rate
of pay in an assigned payband, when the midpoint principle applies (see
below), and when the 50 percent rule applies (see below). Also, for
employees receiving retained rates above the applicable payband
maximum, the entire performance payout will be in the form of a bonus
payment.
If the Technical Center Director determines it is appropriate, the
Director may reallocate a portion (up to the maximum possible amount)
of the unexpended base pay funds for employees not eligible for base
pay increases (capped) to employees who are eligible for base pay
increases (uncapped). This reallocation must be made on a proportional
basis so that all uncapped employees receive the same percentage
increase in their base pay share (unless the reallocation adjustment is
limited by a pay cap). Any dollar increase in an employee's projected
base pay increase will be offset, dollar for dollar, by an accompanying
reduction in the employee's projected bonus payment. Thus, the
employee's initial total performance payout is unchanged.
A midpoint principle will be used to determine performance pay
increases. This principle requires that employees in all paybands must
receive a C rating or higher to advance their basic rate of pay beyond
the midpoint dollar threshold (the actual midpoint dollar amount
between the top and bottom of the payband) of their respective
paybands. If the performance payout formula yields a basic pay increase
for a D-rated employee that would increase their basic rate of pay
beyond the midpoint dollar threshold, then their basic rate of pay will
be adjusted to the midpoint dollar threshold and the balance converted
to a performance bonus. Once an employee has progressed beyond the
midpoint dollar threshold, future performance pay increases will
require a C rating or greater. If an employee attains a D rating and is
beyond the midpoint dollar threshold, incentive pay increases will be
restricted to performance bonuses only.
Annual performance pay increases will be limited to (1) 50 percent
of the difference between the particular maximum band rate and the
employee's current basic rate of pay, or (2) the projected performance
pay increase, whichever is less, with the balance converted to a
performance bonus. This rule will not apply when an employee's current
basic rate of pay is within $500 of the maximum band rate. This means
that employees whose pay has reached the upper limits of a particular
payband will receive most performance incentives as a performance
bonus. Performance bonuses are cash payments and are not part of the
basic pay for any purpose (e.g., lump sum payments of annual leave on
separation, life insurance, and retirement).
17. Supervisory Pay Adjustments
Supervisory pay adjustments may be used at the discretion of the
Technical Center Director, to compensate employees assuming positions
entailing supervisory responsibilities. Supervisory pay adjustments are
increases to the supervisor's basic rate of pay, ranging up to 10
percent of that pay rate, subject to the constraint that the adjustment
may not cause the employee's basic rate of pay to exceed the payband
maximum rate. Only employees in supervisory positions with formal
supervisory authority, as defined in the OPM GS Supervisory Guide, may
be considered for the supervisory pay adjustment. Criteria to be
considered in determining the pay increase percentage include the
following organizational and individual employee factors:
(1) Needs of the organization to attract, retain, and motivate high
quality supervisors;
(2) Budgetary constraints;
(3) Years of supervisory experience;
(4) Amount of supervisory training received;
(5) Performance appraisals and experience as a group or team
leader;
(6) Their organizational level of supervision; and
(7) Managerial impact on the organization.
Conditions, after the date of conversion into the demonstration
project, under which the application of a supervisory pay adjustment
may be considered are as follows:
(1) New hires into supervisory positions will have their initial
rate of basic pay set at the supervisor's discretion within the pay
range of the applicable payband. This rate of pay may include a
supervisory pay adjustment determined using the ranges and criteria
outlined above.
(2) A career employee selected for a supervisory position that is
within the employee's current payband may also be considered for a
supervisory pay adjustment. If a supervisor is already authorized a
supervisory pay adjustment and is subsequently selected for another
supervisory position, within the same payband, then the supervisory pay
adjustment will be re-determined.
Within the demonstration project rating system, the performance
element ``Supervision/EEO'' is identified as a critical element.
Changes in the rating value for this element awarded to a supervisor
with a supervisory pay adjustment may generate a review of the
adjustment and may result in an increase or decrease to that
adjustment. Decrease to a supervisory pay adjustment is not an adverse
action if this action results from changes in supervisory duties or
supervisory ratings.
Upon initial conversion into the demonstration project, a
supervisor converting into the same or substantially similar position,
will be converted at the existing basic rate of pay and will not be
offered a supervisory pay adjustment. Supervisory adjustments will not
be funded from performance pay pools.
The supervisory adjustment will cease when an employee leaves a
supervisory position. The cancellation of the adjustment is not an
adverse action and is not appealable. If an employee is involuntarily
removed from a supervisory position for cause, the removal action will
be conducted using adverse action procedures, and the employee may
request the PPB approve pay retention as part of that process.
18. Supervisory Pay Differentials
A supervisory pay differential is a cash incentive that may range
up to 10 percent of the supervisor's basic rate of pay. It is paid on a
pay period basis and is not included as part of the supervisor's basic
rate of pay. Criteria to be considered in determining the amount of
this supervisory pay differential includes those identified for
Supervisory Pay Adjustments. For SSTM personnel, this incentive may
range up to five percent of base pay (excluding locality pay). The SSTM
supervisory pay differential is paid on a pay period basis with a
specified not-to-exceed date up to one year and may be renewed as
appropriate.
The supervisory pay differential may be considered, either during
conversion into or after initiation of the demonstration project. The
differential
[[Page 49264]]
must be terminated if the employee is removed from a supervisory
position, regardless of cause, or no longer meets established
eligibility criteria. Supervisory differentials will not be funded from
performance pay pools.
All personnel actions involving a supervisory differential will
require a statement signed by the employee acknowledging that the
differential may be terminated or reduced at the Technical Center
Director's discretion. The termination or reduction of the supervisory
differential is not an adverse action and is not subject to appeal.
19. Distinguished Contribution Allowance (DCA)
The Technical Center needs increased capability to recognize and
incentivize employees who are (a) consistently extremely high level
performers and (b) paid at the top of their payband level. Eligibility
for the Technical Center DCA is open to employees in all occupational
families. A DCA, when added to an employee's pay (to include locality
pay and any supervisory differential), may not exceed the rate of basic
pay for Executive Level I. DCA is paid on either a bi-weekly basis or
as a lump sum following completion of a designated performance period,
or combination of these. DCA is not an entitlement, and is used at the
discretion of Technical Center Director to recruit and retain high
performing employees. DCA is not base pay for any purpose, such as
retirement, life insurance, severance pay, promotion, or any other
payment or benefit calculated as a percentage of base pay. Employees
may receive a DCA for up to five years but not more than 10 cumulative
years over an employee's entire career. The DCA will be reviewed on an
annual basis for continuation or termination. Further details will be
published in the IOP.
20. Retention Counteroffers
The Technical Center Director, working with the PPB, may offer a
retention counteroffer to retain high performing employees with
critical scientific or technical skills who present evidence of an
alternative employment opportunity with higher compensation. Such
employees may be provided increased base pay (up to the ceiling of the
payband) and/or a one-time cash payment that does not exceed 50 percent
of one year of base pay. This flexibility addresses the expected
benefits described in paragraph II. C, particularly ``increased
retention of high quality employees.'' Retention allowances, either in
the form of a base pay increase and/or a bonus, count toward the
Executive Level I aggregate limitation on pay consistent with 5 U.S.C.
5307 and 5 CFR part 530, subpart B. Further details will be published
in the IOP.
21. Pay and Compensation Ceilings
An employee's total monetary compensation paid in a calendar year
may not exceed the basic rate of pay paid in level I of the Executive
Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 530, subpart B.
In addition, each payband will have its own pay ceiling, just as grades
do in the GS system. Pay rates for the various paybands will be
directly keyed to the GS rates. Except for retained rates, base pay
will be limited to the maximum rates payable for each payband.
22. Pay Setting for Promotion
Upon promotion, an employee will be entitled to an eight percent
increase in base pay or the lowest level in the payband to which
promoted, whichever is greater. For employees who, currently or in the
future, are assigned to occupational categories and geographic areas
covered by special salary rate tables: (1) The minimum salary rate in
the payband to which the employee is promoted is the minimum salary for
the corresponding special salary rate or locality rate, whichever is
greater; and (2) a demonstration staffing adjusted pay is considered
basic pay for promotion calculations. On a case-by-case basis, the
Technical Center PPB may approve requests for promotion base pay
increases beyond eight percent, in accordance with established
Technical Center operating procedures. The Technical Center PPB will
document its rationale for decisions to provide an increase above eight
percent. Highest previous rate may also be considered in setting pay in
accordance with existing pay-setting policies.
23. Pay Retention
When an employee is involuntarily placed in a lower paid position,
pay retention may be approved by the PPB, except for SSTM members who
require approval by the Technical Center Director. Pay retention
establishes the employee's rate of basic pay upon entry into an initial
or new position. Any future adjustments to basic pay will be determined
in accordance with the provisions of this FRN.
C. Classification
The objectives of the demonstration project classification system
are to simplify the classification process, make the process more
serviceable and understandable, and place more decision-making
authority and accountability with line managers. All Technical Center
positions will be identified in the IOP. Provisions will be made for
including other occupations as employment requirements change in
response to changing technical programs, a change in mission
requirements, or new OPM-recognized occupations.
1. Occupational Series
The present GS classification system has over 400 occupations (also
called series), divided into 22 groups. The occupational series will be
maintained. New series, established by OPM, may be added as needed to
reflect new occupations in the workforce.
2. Classification Standards
The Technical Center will use the CCDC AvMC classification system,
modified as needed. The present classification standards will be used
to create local benchmark position descriptions for each payband,
reflecting duties and responsibilities comparable to those described in
present classification standards for the span of grades represented by
each payband. There will be at least one benchmark position description
for each payband. A supervisory benchmark position description may be
added to those paybands that include supervisory employees. Present
titles and series will continue to be used in order to recognize the
types of work being performed and educational backgrounds and
requirements of incumbents. Locally developed specialty codes and OPM
functional codes will be used to facilitate titling, making
qualification determinations, and assigning competitive levels to
determine retention status.
3. Position Descriptions and Classification Process
The Technical Center Director will have classification authority
and may re-delegate this authority to subordinate managers in the IOP.
Benchmark position descriptions to assist managers in exercising
delegated position classification authority will be included in the
IOP. Managers will identify the occupational family, job series, the
functional code, the specialty code, payband level, and the appropriate
acquisition codes. The manager will document these decisions on a
benchmark cover sheet.
Specialty codes will be developed by Subject Matter Experts (SMEs)
to identify the special nature of work performed. Functional codes are
those currently found in the OPM
[[Page 49265]]
Introduction to the Classification Standards which define certain kinds
of activities, e.g., Research, Development, Test, and Evaluation, etc.,
and covers Engineers & Scientists.
4. Classification Appeals
Classification appeals are not accepted on positions which exceed
the equivalent of a GS-15 level. For all other positions, an employee
may appeal the occupational family, occupational series, or payband
level of the position at any time. An employee must first raise the
areas of concern to a supervisor in the employee's immediate chain of
command, either verbally or in writing. If an employee is not satisfied
with the supervisory response, he or she may then appeal to the DoD
appellate level. Appellate decisions from DoD are final. Time periods
for case processing under 5 CFR part 511 apply.
An employee may not appeal the accuracy of the position
description, the demonstration project classification criteria, or the
pay-setting criteria; the assignment of occupational series to an
occupational family; the title of a position; the propriety of a salary
schedule; or matters grievable under an administrative or negotiated
grievance procedure or an alternative dispute resolution procedure.
The evaluation of a classification appeal under this demonstration
project is based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the
Civilian Personnel Advisory Center providing personnel service and will
include copies of appropriate demonstration project criteria.
D. Hiring and Appointment Authorities
1. Qualifications
A candidate's basic eligibility will be determined using OPM's
Qualification Standards Handbook for General Schedule Positions.
Candidates must meet the minimum standards for entry into the payband.
For example, if the payband includes positions in grades GS-5 and GS-7,
the candidate must meet the qualifications for positions at the GS-5
level. Specific experience/education requirements will be determined
based on whether a position to be filled is at the lower or higher end
of the band. Selective placement factors can be established in
accordance with the OPM Qualification Handbook, when judged to be
critical to successful job performance. These factors will be
communicated to all candidates for particular position vacancies and
must be met for basic eligibility. Restructuring the examining process
and providing an authority to appoint candidates meeting distinguished
scholastic achievements will allow the Technical Center to compete more
effectively for high quality personnel and strengthen the manager's
role in personnel management as well as the goals of the demonstration
project.
2. Appointment Authority
Under the demonstration project, there will continue to be career
and career conditional appointments and temporary appointments not to
exceed one year. These appointments will use existing authorities, and
entitlements, and will comply with merit system principles. A public
notice may be used to fill anticipated permanent or modified term
vacancies with a full-time or part-time work schedule at various
locations.
Non-permanent positions (exceeding one year) needed to meet
fluctuating or uncertain workload requirements may be competitively
filled using the Flexible Length and Renewable Term Technical
Appointment Authority (FLRTTA), authorized in 82 FR 43339, or the
Contingent Employee Appointment Authority (CEAA), authorized in 62 FR
34876, 34889.
Employees hired for more than one year, under the Contingent
Employee Appointment Authority, are given modified term appointments in
the competitive service for up to five years. The Technical Center
Director is authorized to extend a contingent appointment for up to one
additional year.
Using the FLRTTA, a modified term scientific or technical position
may be filled for any period of more than one year but not more than
six years, and may be extended in up to six-year increments at any
time. The initial source of candidates must be from outside of the DoD.
Employees hired under the FLRTTA and CEAA are entitled to the same
rights and benefits as term employees. The Pay-for-Performance
Management System described in III.B applies to employees appointed
under these authorities. In addition, these employees may be eligible
for conversion to career-conditional appointments. To be converted from
CEAA or FLRTTA, the employee must (a) have been selected for the term
position under an announcement or public notice specifically stating
that the individual(s) selected for the term position(s) may be
eligible for conversion to career-conditional appointment at a later
date without further competition; (b) served two years of substantially
continuous service in a term position; and (c) have a current rating of
B or better.
Employees serving under term appointments at the time of conversion
to the STRL Demonstration Project will be converted to new term
contingent employee appointments. Time served in term positions prior
to conversion to the contingent employee appointment is creditable to
the requirement for two years of continuous service stated above,
provided the service was continuous.
(a) Competitive Examining Authority
Category rating will be used to provide for a more streamlined and
responsive hiring system to increase the number of eligible candidates
referred to selecting officials. This provides for the grouping of
eligible candidates into quality categories and the elimination of
consideration according to the ``rule of three.'' This includes the
coordination of recruitment and public notices, the administration of
the examining process, the administration of veterans' preference, the
certification of candidates, and selection and appointment consistent
with merit principles. Specific procedures used for competitive
examining authority within the Technical Center will be detailed in the
IOP.
(b) Distinguished Scholastic Achievement Appointment (DSAA)
A DSAA is an authorization to appoint candidates possessing a
bachelor's degree or higher to Technical and Business Management
positions up to pay band III. Candidates may be appointed to positions
provided all of the following conditions are met: The candidate meets
the minimum standards for the position as published in OPM's operating
manual, ``Qualification Standards for General Schedule Positions,''
plus any selective factors stated in the vacancy announcement; the
occupation has a positive education requirement; and the candidate has
a cumulative grade point average of 3.5 or better (on a 4.0 scale) in
those courses in those fields of study that are specified in the
Qualifications Standards for the occupational series.
Veterans' preference procedures will apply when selecting
candidates under this authority. Preference eligible candidates who
meet the above criteria will be considered ahead of non-preference
eligible candidates. In making selections, to pass over any preference
eligible candidate(s) to select a non-preference eligible candidate
requires approval under applicable DA pass-over or objection
procedures.
[[Page 49266]]
DSAAs will enable the Technical Center to respond quickly to hiring
needs for eminently qualified candidates possessing distinguished
scholastic achievements.
(c) Direct Hire Authorities
The Technical Center will use the direct-hire authorities
authorized by 10 U.S.C. 2358a to appoint the following:
(1) Candidates with advanced degrees to scientific and engineering
positions;
(2) Candidates with bachelor's degrees to scientific and
engineering positions;
(3) Veteran candidates to scientific, technical, engineering, and
mathematics positions (STEM), including technician positions; and
(4) Student candidates enrolled in a program of instruction leading
to a bachelors or advanced degree in a STEM discipline.
3. Legal Authority
For actions taken under the auspices of the demonstration project,
the first legal authority code (LAC)/legal authority Z2U/Public Law
103-337 will be used. The second LAC/legal authority may identify the
authority utilized (e.g., Direct Hire Authority). For all other
actions, the nature of action codes and legal authority codes
prescribed by OPM, DoD, or DA will continue to be used.
4. Probationary Period
The probationary period will be two years for all newly hired
employees. All other features of the current probationary period are
retained, including the potential to remove an employee without
providing the full substantive and procedural rights afforded a non-
probationary employee. Probationary employees will be terminated if an
employee fails to demonstrate proper conduct, technical competency,
and/or adequate contribution for continued employment. When the
Technical Center Director or designee decides to terminate an employee
serving a probationary period because his/her work performance or
conduct during this period fails to demonstrate fitness or
qualifications for continued employment, the employee will be provided
written notification of the reasons for separation and the effective
date of the action. The information in the notice as to why the
employee is being terminated will, as a minimum, consist of the
manager's conclusions as to the inadequacies of their performance or
conduct.
5. Supervisory Probationary Periods
Supervisory probationary periods will be made consistent with 5 CFR
315.901. Employees that have successfully completed the initial
probationary period will be required to complete an additional one year
probationary period for the initial appointment to a supervisory
position. If, during the supervisory probationary period, the decision
is made to return the employee to a nonsupervisory position for reasons
solely related to supervisory performance, the employee will be
returned to a comparable position of no lower payband and pay than the
position from which they were promoted.
6. Volunteer Emeritus Program (VEP)
The Technical Center Director will have the authority to offer
former Federal employees who have retired or separated from the Federal
service, voluntary assignments in the Technical Center. Volunteer
Emeritus Program assignments are not considered ``employment'' by the
Federal government (except as indicated below). Thus, such assignments
do not affect an employee's entitlement to buyouts or severance
payments based on an earlier separation from Federal service. The
Volunteer Emeritus Program will ensure continued quality research while
reducing the overall salary line by allowing higher paid individuals to
accept retirement incentives with the opportunity to retain a presence
in the scientific community. The program will be of most benefit during
manpower reductions as senior employees could accept retirement and
return to provide valuable on-the-job training or mentoring to less
experienced employees. Volunteer service will not be used to replace
any employee, or interfere with career opportunities of employees. The
Volunteer Emeritus Program may not be used to replace or substitute for
work performed by civilian employees occupying regular positions
required to perform the Technical Center's mission.
To be accepted into the Volunteer Emeritus Program, a candidate
must be recommended by a Technical Center manager to the Technical
Center Director. Everyone who applies is not entitled to participate in
the program. The Technical Center Director will document the decision
process for each candidate and retain selection and non-selection
documentation for the duration of the assignment or two years,
whichever is longer.
To ensure success and encourage participation, the volunteer's
federal retirement pay (whether military or civilian) will not be
affected while serving in a volunteer capacity. Retired or separated
federal employees may accept an emeritus position without a break or
mandatory waiting period.
Volunteers will not be permitted to monitor contracts on behalf of
the government or to participate on any contracts or solicitations
where a conflict of interest exists. The same rules that currently
apply to source selection members will apply to volunteers.
An agreement will be established between the volunteer, the
Technical Center Director, and the USASMDC G-1. The agreement will be
reviewed by the servicing legal office. The agreement must be finalized
before the assumption of duties and will include:
(a) A statement that the service provided is gratuitous, that the
volunteer assignment does not constitute an appointment in the civil
service and is without compensation or other benefits except as
provided for in the agreement itself, and that, except as provided in
the agreement regarding work-related injury compensation, any and all
claims against the Government (stemming from or in connection with the
volunteer assignment) are waived by the volunteer;
(b) a statement that the volunteer will be considered a federal
employee for the purpose of:
(1) 18 U.S.C. 201, 203, 205, 207, 208, 209, 603, 606, 607, 643,
654, 1905, and 1913;
(2) 31 U.S.C. 1343, 1344, and 1349(b);
(3) 5 U.S.C. chapters 73 and 81;
(4) The Ethics in Government Act of 1978;
(5) 41 U.S.C. chapter 21;
(6) 28 U.S.C. chapter 171 (tort claims procedure), and any other
Federal tort liability statute;
(7) 5 U.S.C. 552a (records maintained on individuals); and
(c) the volunteer's work schedule;
(d) the length of agreement (defined by length of project or time
defined by weeks, months, or years);
(e) the support to be provided by the Technical Center (travel,
administrative, office space, supplies);
(f) the volunteer's duties;
(g) a provision that states no additional time will be added to a
volunteer's service credit for such purposes as retirement, severance
pay, and leave as a result of being a participant in the Volunteer
Emeritus Program;
(h) a provision allowing either party to void the agreement with 10
working days written notice;
(i) the level of security access required (any security clearance
required by the assignment will be managed by the Technical Center
while the volunteer is a participant in the Volunteer Emeritus
Program);
[[Page 49267]]
(j) a provision that any written products prepared for publication
that are related to Volunteer Emeritus Program participation will be
submitted to the Technical Center Director for review and must be
approved prior to publication;
(k) a statement that the volunteer accepts accountability for loss
or damage to Government property occasioned by the volunteer's
negligence or willful action;
(1) a statement that the volunteer's activities on the premises
will conform to the Technical Center's regulations and requirements;
(m) a statement that the volunteer will not improperly use or
disclose any non-public information, to include any pre-decisional or
draft deliberative information related to DoD programming, budgeting,
resourcing, acquisition, procurement or other matter, for the benefit
or advantage of the Volunteer Emeritus Program participant or any non-
Federal entities. Volunteer Emeritus Program participants will handle
all non-public information in a manner that reduces the possibility of
improper disclosure;
(n) a statement that the volunteer agrees to disclose any
inventions made in the course of work performed at the Technical
Center. The Technical Center Director will have the option to obtain
title to any such invention on behalf of the U.S. Government. Should
the Technical Director elect not to take title, the Center will retain
a non-exclusive, irrevocable, paid up, royalty-free license to practice
or have practiced the invention worldwide on behalf of the U.S.
Government;
(o) a statement that the Volunteer Emeritus Program participant
must complete either a Confidential or Public Financial Disclosure
Report, whichever applies, and ethics training in accordance with
office of Government Ethics regulations prior to implementation of the
agreement; and
(p) a statement that the Volunteer Emeritus Program participant
must receive post-government employment advice from a DoD ethics
counselor at the conclusion of program participation. Volunteer
Emeritus Program participants are deemed Federal employees for purposes
of post-government employment restrictions.
E. Employee Development
1. Expanded Developmental Opportunity Program
The Technical Center Expanded Developmental Opportunity Program
will be funded by the Technical Center, and will cover all
demonstration project employees. An expanded developmental opportunity
complements existing developmental opportunities such as (1) long term
training, (2) one year work experiences in an industrial setting via
the Relations With Industry Program, (3) one year work experiences in
laboratories of allied nations via the Science and Engineer Exchange
Program, (4) rotational job assignments within the Technical Center,
(5) up to one year developmental assignments in higher headquarters
within the DA and/or the DoD, and (6) self-directed study via
correspondence courses and local colleges and universities.
Each developmental opportunity period should benefit the Technical
Center, as well as increase the employee's individual effectiveness.
Various learning or uncompensated developmental work experiences may be
considered, such as advanced academic teaching or research, or on-the-
job work experience with public or non-profit organizations. Employees
will be eligible for the Technical Center Expanded Developmental
Opportunity Program after completion of seven years of Federal service.
Final approval authority for participation in the Technical Center
Expanded Developmental Opportunity Program will rest with the Technical
Center Director, and selection for the Technical Center Expanded
Developmental Opportunity Program will be granted on a competitive
basis. An expanded developmental opportunity period will not result in
loss of (or reduction in) basic pay, leave to which the employee is
otherwise entitled, or credit for time or service. Employees accepting
an expanded developmental opportunity may be required to enter a
continued service agreement, which may vary from the requirement in 5
U.S.C. 4108(a)(1).
The opportunity to participate in the Technical Center Expanded
Developmental Opportunity Program will be announced annually.
Instructions for application and the selection criteria will be
included in the announcement. Final selection for participation in the
program will be made by the PPB. The position of employees on an
expanded developmental opportunity may be backfilled with employees
temporarily promoted or contingent employees or employees assigned via
the simplified assignment process in Section III.A.
2. Training for Degrees
Degree training is an essential component of an organization that
requires continuous acquisition of advanced and specialized knowledge.
Degree training in the academic environment of laboratories is also a
critical tool for recruiting and retaining employees with critical
skills. Current government-wide regulations authorize payment for
degrees based on recruitment or retention needs. Degree payment is not
currently permitted for non-shortage occupations involving critical
skills.
The Technical Center will expand use of these authorities to
provide degree payment opportunities to employees in all occupational
families for purposes of meeting current or projected mission
requirements, to ensure continuous acquisition of advanced and
specialized knowledge essential to the organization, and to recruit and
retain personnel critical to the present and future requirements of the
organization. Degree payment may not be authorized where it would
result in a tax liability for the employee without the employee's
express and written consent. It is expected that the degree payment
authority will be used primarily for advanced degrees, but may be used
to fund undergraduate courses that are a necessary pre-requisite to the
attainment of an advanced degree.
The Technical Center will develop guidelines to ensure competitive
approval of degree training participation and that related decisions
are fully documented. Employees participating in degree training will
be required to enter a continued service agreement required by 5 U.S.C.
4108(a)(1).
IV. Training
Training about the demonstration project is key to its success.
This training will provide the knowledge and skills necessary to carry
out the demonstration project's proposed changes to the Technical
Center's personnel system, as well as foster participant commitment to
the program.
Training before the beginning of implementation and throughout the
demonstration project will be provided to supervisors, employees, and
the administrative staff responsible for assisting managers in
effecting the changeover and operation of the new system.
The elements to be covered in the orientation portion of this
training will include: (1) A description of the personnel system, (2)
how employees are converted into and out of the system, (3) the pay
adjustment and/or bonus process, (4) familiarization with the new
position descriptions and performance objectives, (5) the performance
evaluation management system, (6) the reconsideration process, (7) the
demonstration project
[[Page 49268]]
administrative and formal evaluation process, and (8) AFGE Local 1858's
role and function in the demonstration program.
A. Supervisors
The focus of this demonstration project on management-centered
personnel administration, with increased supervisory and managerial
personnel management authority and accountability, demands thorough
training of supervisors and managers in the knowledge and skills that
will prepare them for their new responsibilities. Training will include
detailed information on the policies and procedures of the
demonstration project, skills training in using the classification
system, position description preparation, performance evaluation, and
interaction with AFGE Local 1858 as a partner. Additional training may
focus on non-project procedural techniques such as interpersonal and
communication skills.
B. Administrative Staff
The administrative staff, including G-1 personnel specialists,
Technical Center technicians, and administrative officers, will play a
key role in advising, training, and coaching supervisors and employees
in implementing the demonstration project. This staff will need
training in the procedural and technical aspects of the project.
C. Employees
The Technical Center, in conjunction with the AFGE Local 1858 and
education and development assets of the USASMDC G-1 and the CPAC will
train employees covered under the demonstration project. In the months
leading up to the implementation date, meetings will be held for
employees to fully inform them of all project decisions, procedures,
and processes.
V. Conversion
A. Conversion to the Demonstration Project
Initial entry into the demonstration project for covered employees
will be accomplished through a full employee protection approach that
ensures each employee an initial place in the appropriate payband
without loss of pay. Employees serving under regular term appointments
at the time the demonstration project is implemented will be converted
to the contingent employee appointments. Position announcements will
not be required for these contingent employee appointments. An
automatic conversion into the new broadband system will be accomplished
from an interim GS grade and pay which corresponds to an employee's
current broadband. Each employee's initial total salary under the
demonstration project will equal the total salary received immediately
before conversion. Employees who enter the demonstration project later
by lateral reassignment or transfer (at the same pay grade from within
the DoD) will be subject to these pay conversion rules.
If conversion into the demonstration project is accompanied by a
geographic move, the employee's GS pay entitlements in the new
geographic area must be determined before performing the pay
conversion.
Employees who are on temporary promotions at the time of conversion
will be converted to a payband commensurate with the grade of the
position to which they are promoted. At the conclusion of the temporary
promotion, the employee will revert to the payband which corresponds to
the employee's grade of record prior to the temporary promotion. When a
temporary promotion is terminated, the employee's pay entitlements will
be determined based on the employee's position of record, with
appropriate adjustments to reflect pay events during the temporary
promotion, subject to the specific policies and rules established by
the Technical Center. In no case may those adjustments increase the pay
for the position of record beyond the applicable pay range maximum
rate. The only exception will be if the original competitive promotion
announcement stipulated that the promotion could be made permanent; in
these cases actions to make the temporary promotion permanent will be
considered, and, if implemented, will be subject to all existing
priority placement programs.
Employees who are covered by special salary rates (SSRs) upon being
covered by the demonstration project will no longer be considered
special rate employees under the demonstration project. These employees
will, therefore, be entitled to full locality pay or a staffing
supplement, whichever is greater. These employees' adjusted salaries
will not change. Rather, the employees will receive a new basic pay
rate computed under the staffing supplement rules in Section V.B.2.e.
(Pay-Setting Provisions), if applicable. Adverse action and pay
retention provisions will not apply to the conversion process, as there
will be no change in total salary.
During the first 12 months after conversion into the demonstration
project, employees in career ladder positions will receive pay
increases for non-competitive promotion equivalents, provided the grade
level of the promotion is encompassed within the same broadband, the
employee's performance warrants the promotion, and promotions would
have otherwise occurred during that period. Employees who receive an
in-level promotion at the time of conversion will not receive a
prorated step increase equivalent as defined below.
Employees who enter the demonstration project later by lateral
reassignment or transfer from the GS classification and pay system may
receive an adjustment to their demonstration project base salary for a
prorated value based upon the number of weeks the employee has
performed at a successful level for purposes of eligibility for the
next higher step under the GS system.
B. Conversion or Movement From a Project Position to a General Schedule
Position
If a demonstration project employee is moving to a GS position not
under the demonstration project, or if the project ends and all project
employees must be converted back to the GS system, the following
procedures will be used to convert the employee's demonstration project
payband to a GS-equivalent grade and the employee's demonstration
project rate of pay to GS equivalent rate of pay. The converted GS
grade and GS rate of pay must be determined before movement or
conversion out of the demonstration project and any accompanying
geographic movement, promotion, or other simultaneous action. For
conversions upon termination of the demonstration project and for
lateral reassignments, the converted GS grade and rate will become the
employee's actual GS grade and rate after leaving the demonstration
project (before any other action). For employee movement within DoD
(transfers), promotions, and other actions, the converted GS grade and
rate will be used in applying any GS pay administration rules
applicable in connection with the employee's movement out of the
project (e.g., promotion rules, highest previous rate rules, pay
retention rules), as if the GS converted grade and rate were actually
in effect immediately before the employee left the demonstration
project.
1. Grade-Setting Provisions
An employee in a payband corresponding to a single GS grade is
converted to that grade. An employee in a payband corresponding to two
or more grades is converted to one of those grades according to the
following rules:
[[Page 49269]]
a. The employee's adjusted rate of basic pay under the
demonstration project (including any locality payment or staffing
supplement) is compared with step four rates on the highest applicable
GS rate range. (For this purpose, a ``GS rate range'' includes a rate
in (1) the GS base schedule, (2) the locality rate schedule for the
locality pay area in which the position is located, or (3) the
appropriate special rate schedule for the employee's occupational
series, as applicable.) If the series is a two-grade interval series,
only odd-numbered grades are considered below GS-11.
b. If the employee's adjusted project rate equals or exceeds the
applicable step four rate of the highest GS grade in the band, the
employee is converted to that grade.
c. If the employee's adjusted project rate is lower than the
applicable step four rate of the highest grade, the adjusted rate is
compared with the step four rate of the second highest grade in the
employee's payband. If the employee's adjusted rate equals or exceeds
step four rate of the second highest grade, the employee is converted
to that grade.
d. This process is repeated for each successively lower grade in
the band until a grade is found for which the employee's adjusted
project rate equals or exceeds the applicable step four rate of the
grade. The employee is then converted at that grade. If the employee's
adjusted rate is below the step four rate of the lowest grade in the
band, the employee is converted to the lowest grade.
e. Exception: If the employee's adjusted project rate exceeds the
maximum rate of the grade assigned under the above-described ''step
four'' rule but fits in the rate range for the next higher applicable
grade (i.e., between step one and step four), then the employee will be
converted to that next higher applicable grade.
f. Exception: An employee will not be converted to a lower grade
than the grade held by the employee immediately preceding a conversion,
lateral reassignment, or transfer from within DoD into the project,
unless since that time the employee has undergone a reduction in band.
2. Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's demonstration project rate of pay to the GS
rate of pay in accordance with the following rules:
a. The pay conversion is done before any geographic movement or
other pay-related action that coincides with the employee's movement or
conversion out of the demonstration project.
b. An employee's adjusted rate of basic pay under the demonstration
project (including any locality payment or staffing supplement) is
converted to a GS adjusted rate on the highest applicable rate range
for the converted GS grade. An employee's adjusted rate of basic pay
under the demonstration project (including any locality payment or
staffing supplement) is converted to the GS adjusted rate on the
highest applicable rate range for the converted GS grade. (For this
purpose, a ``GS rate range'' includes a rate range in (1) the GS base
schedule, (2) an applicable locality rate schedule, or (3) an
applicable special rate schedule.)
c. If the highest applicable GS rate range is a locality pay rate
range, the employee's adjusted project rate is converted to a GS
locality rate of pay. If this rate falls between two steps in the
locality-adjusted schedule, the rate must be set at the higher step.
The converted GS unadjusted rate of basic pay would be the GS base rate
corresponding to the converted GS locality rate (i.e., same step
position). (If this employee is also covered by a special rate schedule
as a GS employee, the converted special rate will be determined based
on the GS step position. This underlying special rate will be basic pay
for certain purposes for which the employee's higher locality rate is
not basic pay.)
d. If the highest applicable GS rate range is a special rate range,
the employee's adjusted project rate is converted to a special rate. If
this rate falls between two steps in the special rate schedule, the
rates must be set at the higher step. The converted GS unadjusted rate
of basic pay will be the GS rate corresponding to the converted special
rate (i.e., same step position).
e. Staffing Supplement.
Application of the Staffing Supplement upon Conversion to
the Demonstration Project:
Employees assigned to occupational categories and geographic areas
covered by special rates will be entitled to a staffing supplement if
the maximum adjusted rate for the banded GS grades to which the
employee is assigned is a special rate that exceeds the maximum GS
locality rate for the banded grades. The staffing supplement is added
to base pay, much like locality rates are added to base pay. For
employees being converted into the demonstration project, total pay
immediately after implementation of the staffing supplement will be the
same as immediately before the staffing supplement, but a portion of
the total pay will be in the form of a staffing supplement. Adverse
action and pay retention provisions will not apply to the conversion
process, as there will be no change in total salary. The staffing
supplement is calculated as follows:
Upon conversion, the demonstration base rate will be established by
dividing the employee's former GS adjusted rate (the higher of special
rate or locality rate) by the staffing factor. The staffing factor will
be determined by dividing the maximum special rate for the banded
grades by the GS unadjusted rate corresponding to that special rate
(step 10 of the GS rate for the same grade as the special rate). The
employee's demonstration project staffing supplement is derived by
multiplying the demonstration base rate by the staffing factor minus
one. Therefore, the employee's final demonstration project special
staffing rate equals the demonstration project base rate plus the
staffing supplement. This amount will equal the employee's former GS
adjusted rate.
Simplified, the formula is this:
Staffing factor = (Maximum special rate for the banded grades)/(GS
unadjusted rate corresponding to that special rate)
Demonstration project base rate = (Former GS adjusted rate, special or
locality rate)/(staffing factor)
Staffing supplement = (Demonstration project base rate) x (staffing
factor -1)
Salary upon conversion = (Demonstration project base rate) + (staffing
supplement)
Note: This sum will equal the existing rate.
Example: Assume there is a GS-854-11, step 3, employee stationed in
Huntsville, Alabama, who is entitled to the greater of a SSR of $65,213
or a locality rate of $64,312 ($55,265 + 16.37 percent). The maximum
special rate for a GS-854-11, step 10 is $79,478, and the corresponding
regular rate is $67,354. The maximum GS-11 locality rate in Huntsville
is $78,380 ($67,354 + 16.37 percent), which is less than the maximum
SSR. Thus, a staffing supplement is payable. The staffing factor is
computed as follows:
Staffing factor = $79,478/$67,354 = 1.1800
Demonstration project base rate = $65,213/1.1800 = $55,265
Then to determine the staffing supplement, multiply the
demonstration project base rate by the staffing factor minus one.
Staffing supplement = $55,265 x 0.1800 = $9,948
The staffing supplement of $9,948 is added to the demonstration
project base rate of $55,265 and the total salary is $65,213, which is
the salary of the employee before this intervention.
[[Page 49270]]
If an employee is in a band where the maximum GS adjusted rate for
the banded grades is a locality rate, when the employee enters into the
demonstration project, the demonstration project base rate is derived
by dividing the employee's former GS adjusted rate (the higher of
locality rate or special rate) by the applicable locality pay factor
(for example, 1.1637 in the Huntsville area for CY 2016). The
employee's demonstration project locality-adjusted rate will equal the
employee's former GS adjusted rate. Any GS or special rate schedule
adjustment will require computing the staffing supplement again.
Employees receiving a staffing supplement remain entitled to an
underlying locality rate, which may over time supersede the need for a
staffing supplement. If OPM discontinues or decreases a special rate
schedule, pay retention provisions will be applied. Upon geographic
movement, an employee who receives the staffing supplement will have
the supplement recomputed. Any resulting reduction in pay will not be
considered an adverse action or a basis for pay retention.
Application of the Staffing Supplement in Circumstances
Other than Conversion to the Demonstration Project:
Calculation of the staffing supplement discussed above was
presented in the context of a GS employee entering the demonstration
project. Application of the staffing supplement is normally intended to
maintain pay comparability for GS employees entering the demonstration
project. However, the staffing supplement formulas must be compatible
with non-Government employees entering the demonstration project and
also be adaptable to the special circumstances of employees already in
the demonstration project. Employees who are already in the
demonstration project and who are in occupational categories covered by
SSR tables will have their salaries examined for the application of a
staffing supplement or a one-time salary adjustment.
The principles in the following paragraphs (1) through (6) govern
the modifications necessary to the previous staffing supplement
calculations to apply the staffing supplement to circumstances other
than a GS employee entering the demonstration project. No adjustment
under these provisions will provide an increase greater than that
provided by the SSR. An increase provided under this authority is not
an equivalent increase, as defined by 5 CFR 531.403. These principles
are stated with the understanding that the necessary conditions exist
that require the application of a staffing supplement.
(1) If a non-Government employee is hired into the demonstration
project, the employee's entry salary will be used for the term ``former
GS adjusted rate'' to calculate the demonstration project base rate.
(2) If a current demonstration project employee is covered by a SSR
table that has not changed (other than by annual general pay
increases), the employee's current demonstration project adjusted base
salary will be used for the term ``former GS adjusted rate'' to
calculate the demonstration project base rate.
(3) If a current demonstration project employee is covered by a new
or modified SSR table, the employee's current demonstration project
base rate is used to calculate the staffing supplement percentage. The
employee's new demonstration project adjusted base salary is the sum of
the current demonstration project base rate and the calculated staffing
supplement.
(4) If a current demonstration project employee is in an
occupational category that is covered by a SSR table and, subsequently,
the occupational category becomes covered by a different SSR table with
a higher value, the following steps must be applied to calculate a new
demonstration project base rate:
Step 1. To obtain a relevance factor, divide the staffing factor
that will become applicable to the employee by the staffing factor that
would have applied to the employee.
Step 2. Multiply the relevance factor resulting from step one by
the employee's current adjusted demonstration project rate to determine
a new adjusted demonstration project rate.
Step 3. Divide the result from step two by the applicable staffing
factor to derive a new demonstration project base rate. This new
demonstration project base rate will be used to calculate the staffing
supplement and the new demonstration project adjusted base salary.
(5) If, after the establishment of a new or adjusted SSR table, an
employee enters the demonstration project (whether converted/hired from
GS or another pay system, or hired from outside Government) prior to
this intervention, then the employee's current adjusted base salary is
used for the term ``former GS adjusted rate'' to calculate the
demonstration project base rate. This principle prevents double
compensation due to the single event of a new or adjusted SSR table.
(6) If an employee is in an occupational category covered by a new
or modified SSR table, and the pay band to which assigned is not
entitled to a staffing supplement, then the employee's salary may be
reviewed and adjusted to accommodate the salary increase provided by
the SSR. The review may result in a one-time pay increase if the
employee's salary equals or is less than the highest special salary
grade and step that exceeds the comparable locality grade and step.
Technical Center operating procedures will identify the officials
responsible to make such reviews and determinations. The applicable
salary increase will be calculated by determining the percentage
difference between the highest step 10 SSR and the comparable step 10
locality rate and applying this percentage to the demonstration project
base rate.
An established salary including the staffing supplement will be
considered basic pay for the same purposes as a locality rate under 5
CFR 531.606(b), i.e., for purposes of retirement, life insurance,
premium pay, severance pay, and pay advances. It will also be used to
compute worker's compensation payments and lump-sum payments for
accrued and accumulated annual leave.
3. E&S Payband III Employees
An employee in Payband III of the E&S Occupational family will
convert out of the demonstration project at no higher than the GS-13,
step 10 level. The Technical Center, in consultation with the USASMDC
G-1 and CPAC, will develop a procedure to ensure that employees
entering E&S Payband III understand that if they leave the
demonstration project and their adjusted pay exceeds the GS-13, step 10
rate, there is no entitlement to retained pay; their GS-equivalent rate
will be deemed to be the rate for GS-13, step 10.
4. E&S Payband V Employees
The minimum basic pay for DB-V positions is 120 percent of the
minimum rate of basic pay for GS-15. Maximum DB-V basic pay with
locality pay is limited to Executive Level III (EX-III), and maximum
salary without locality pay may not exceed EX-IV. The total pay
(including locality pay and any supervisory differential) may not
exceed the midpoint between the maximum rate of basic pay of EX-III and
the maximum rate of basic pay of EX-II, rounded up to the next thousand
(i.e., $182,050 for calendar year 2019). An employee in Payband V of
the E&S Occupational family will convert out of the demonstration
project at the GS-15 level. The Technical Center, in consultation with
the USASMDC G-1 and CPAC, will develop a procedure to
[[Page 49271]]
ensure that employees entering Payband V understand that if they leave
the demonstration project and their adjusted pay exceeds the GS-15,
step 10 rate (e.g., SSTMs), there is no entitlement to retained pay;
their GS-equivalent rate will be deemed to be the rate for GS-15, step
10. For those Payband V employees paid below the adjusted GS-15, step
10 rate, the converted rates will be set in accordance with paragraph
2.b.
5. Employees With Band or Pay Retention
a. If an employee is retaining a band level under the demonstration
project, apply the procedures in paragraphs 1.a. and 1.b. (Grade-
Setting Provisions) above, using the grades encompassed in the
employee's retained band to determine the employee's GS-equivalent
retained grade and pay rate. The time in a retained band under the
demonstration project counts toward the two-year limit on grade
retention in 5 U.S.C. 5382.
b. If an employee is retaining a pay rate under the demonstration
project, the employee's GS-equivalent grade is the highest grade
encompassed in his or her band level. The Technical Center will
coordinate with the DoD to prescribe a procedure for determining the
GS-equivalent pay rate for an employee retaining a rate under the
demonstration project.
6. Within-Grade Increase
Equivalent Increase Determinations: Service under the demonstration
project is creditable for within-grade increase purposes upon
conversion back to the GS pay system. Performance pay increases
(including a zero increase) under the demonstration project are
equivalent increases for the purpose of determining the commencement of
a within-grade increase waiting period under 5 CFR 531.405(b).
7. Personnel Administration
All personnel laws, regulations, and guidelines not waived by this
demonstration project will remain in effect. Basic employee rights will
be safeguarded and merit principles will be maintained. Supporting
personnel specialists will continue to process personnel-related
actions and provide consultative and other appropriate services.
Use of benchmark position descriptions is not anticipated to
adversely impact an employee's ability to seek employment outside of
the Technical Center. Technical Center employees participating in the
demonstration project will have short generic benchmark position
descriptions that describe the general type of work performed and the
range of complexity and supervisory controls. The benchmark position
description cover sheet lists the OPM occupational series, e.g., 855
for Electronics Engineer, to which the employee is assigned, and, where
additional specificity is needed, lists a specialty code that is tied
to the employee's benchmark description to a particular technology or
functional area. The OPM occupational code will serve as ready
identification, Government-wide, of the basic qualifications and
experience that the employee possesses. In addition, virtually all
federal employment systems, including OPM's, rely on employee-generated
resumes that allow applicants to summarize or describe the details of
their experience and training. Any pertinent information regarding
Technical Center employees' knowledge, skills, or abilities not
contained in the benchmark position description can be conveyed to
potential employers through an employee's resume.
8. Automation
The Technical Center will continue to use the Defense Civilian
Personnel Data System (DCPDS) for processing personnel-related data.
Payroll servicing will continue from the respective payroll offices.
Local automated systems will be developed to support computing
performance related pay increases, bonuses, awards, and other personnel
processes and systems associated with this demonstration project.
9. Experimentation and Revision
Many aspects of a demonstration project are experimental. Revisions
will be considered and negotiated with the Union, where appropriate, as
experience is gained, results are analyzed, and conclusions are reached
on how the demonstration project is working. The Technical Center may
make minor modifications, such as changes in the occupational series in
an occupational family, without further notice. Major changes, such as
a change in the number of occupational families, will be negotiated
with the Union to the extent required by law, regulation, and Executive
Order, and published in the Federal Register. See 5 CFR part 470.
VI. Project Duration
Public Law 103-337 removed any mandatory expiration date for this
demonstration project. The demonstration project evaluation plan
adequately addresses how each personnel management change or
flexibility will be comprehensively evaluated for at least the first
five years of the demonstration project. Major changes and
modifications to the flexibilities will be made if warranted by
formative evaluation data and will be published in the Federal Register
to the extent required.
VII. Evaluation Plan
A. Overview
Title 5 U.S.C. chapter 47 requires that an evaluation system be
implemented to measure the effectiveness of the proposed personnel
management changes or flexibilities. An evaluation plan for the entire
STRL demonstration program covering 24 DoD labs was developed by a
joint OPM/DoD Evaluation Committee. A comprehensive evaluation plan was
submitted to the Office of Defense Research & Engineering in 1995 and
subsequently approved (Proposed Plan for Evaluation of the DoD S&T
Laboratory Demonstration Program, Office of Merit Systems Oversight &
Effectiveness, June 1995). The primary focus of the evaluation is to
determine whether the waivers granted result in a more effective
personnel system than the current system as well as an assessment of
the costs associated with the new system.
The present personnel system with its many rigid rules and
regulations is generally perceived as an impediment to mission
accomplishment. The Demonstration Project is intended to remove some of
those barriers and therefore, is expected to contribute to improved
organizational performance. While it is not possible to prove a direct
causal link between intermediate and ultimate outcomes (improved
personnel system performance and improved organizational
effectiveness), such a linkage is hypothesized and data will be
collected and tracked for both types of outcome variables.
B. Evaluation Model
An intervention impact model (Appendix A) will be used to measure
the effectiveness of the various personnel system changes or
interventions. Additional measures will be developed as new
interventions are introduced or existing interventions modified
consistent with expected effects. Measures may also be deleted when
appropriate. Activity specific measures may also be developed to
accommodate specific needs or interests which are locally unique.
The evaluation model for the Demonstration Project identifies
elements critical to an evaluation of the
[[Page 49272]]
effectiveness of the interventions. The overall evaluation approach
will also include consideration of context variables that are likely to
have an impact on project outcomes: e.g., Human Resource Management
regionalization, downsizing, cross-service integration, and the general
state of the economy. However, the main focus of the evaluation will be
on intermediate outcomes, i.e., the results of specific personnel
system changes which are expected to improve human resources
management. The ultimate outcomes are defined as improved
organizational effectiveness, mission accomplishment, and customer
satisfaction.
C. Evaluation
The STRL Directors will conduct an internal evaluation of the STRL
Personnel Demonstration Program. Because most of the eligible
laboratories are participating in the program, a 5 U.S.C. comparison
group will be compiled from the Central Personnel Data File (CPDF).
This comparison group will consist of workforce data from Government-
wide research organizations in civilian Federal agencies with missions
and job series matching those in the DoD laboratories. The comparison
group will be used primarily in the analysis of pay banding costs and
turnover rates.
The evaluation effort will consist of two phases, formative and
summative evaluation, covering at least five years to permit inter- and
intra-organizational estimates of effectiveness. The formative
evaluation phase will include baseline data collection and analysis,
implementation evaluation, and interim assessments. The formal reports
and interim assessments will provide information on the accuracy of
project operation and current information on impact of the project on
veterans and protected groups, Merit System Principles, and Prohibited
Personnel Practices. The summative evaluation will focus on an overall
assessment of project outcomes after five years. The final report will
provide information to DoD on how well the demonstration project
achieved the desired goals, which interventions were most effective,
and whether the results can be generalized to other Federal
installations.
D. Method of Data Collection
Data from a variety of different sources will be used in the
evaluation. Information from existing management information systems
supplemented with perceptual survey data from employees will be used to
assess variables related to effectiveness. Multiple methods provide
more than one perspective on how the demonstration project is working.
Information gathered through one method will be used to validate
information gathered through another. Confidence in the findings will
increase as they are substantiated by the different collection methods.
The following types of qualitative and/or quantitative data will be
collected as part of the evaluation: (1) Workforce data; (2) personnel
office data; (3) employee attitudes and feedback using surveys,
structured interviews, and focus groups; (4) local activity histories;
and, (5) core measures of laboratory effectiveness.
VIII. Demonstration Project Costs
Costs associated with the development of the personnel
demonstration system include software automation, training, and project
evaluation. All funding will be provided through the Technical Center's
budget. The projected annual expenses for each area is summarized in
Table 1.
[GRAPHIC] [TIFF OMITTED] TN19SE19.024
IX. Required Waivers to Law and Regulation
Public Law 103-337 gave the DoD the authority to experiment with
several personnel management innovations. In addition to the
authorities granted by the law, the following are the waivers of law
and regulation that will be necessary for implementation of the
Demonstration Project. In due course, additional laws and regulations
may be identified for waiver request.
The following waivers and adaptations of certain 5 U.S.C.
provisions are required only to the extent that these statutory
provisions limit or are inconsistent with the actions contemplated
under this demonstration project. Nothing in this plan is intended to
preclude the demonstration project from adopting or incorporating any
law or regulation enacted, adopted, or amended after the effective date
of this demonstration project.
A. Title 5 U.S.C.
Chapter 5, section 552a: Records. Waived to the extent required to
clarify that volunteers under the Voluntary Emeritus Program are
considered employees of the Federal government for purposes of this
section.
Chapter 31, section 3104: Employment of Specially Qualified
Scientific and Professional Personnel. Waived to allow SSTMs.
Chapter 31, section 3132: The Senior Executive Service; Definitions
and exclusions. Waived to allow SSTMs.
Chapter 33, section 3308: Competitive Service; Examinations;
Educational Requirements Prohibited. This section is waived with
respect to the scholastic achievement appointment authority.
Chapter 33, section 3317(a), Competitive Service, certification
from registers. Waived insofar as ``rule of three'' is eliminated.
Chapter 33, section 3318(a), Competitive Service, selection from
certificates. Waived insofar as ``rule of three'' is eliminated.
Chapter 33, section 3321: Competitive Service; Probationary Period:
This section waived only to the extent necessary to replace grade with
``pay band.''
Chapter 33, section 3324 and section 3325: Appointments to
Positions Classified Above GS-15. Waived in entirety to allow SSTMs.
Chapter 33, section 3327: Civil service employment information.
Waived to allow for provisions as described in this FRN.
[[Page 49273]]
Chapter 33, section 3330: Government-wide list of vacant positions.
Waived to allow for provisions as described in this FRN.
Chapter 33, section 3341: Details. This waiver applies to the
extent necessary to waive the time limits for details.
Chapter 35, section 3502: Order of Retention. Waived to the extent
necessary to allow provisions of the RIF plan as described in this FRN.
Chapter 41, section 4107: Pay for Degrees. Waived in entirety.
Chapter 41, section 4108: Employee Agreements; Service after
Training. To the extent that employees who accept an expanded
developmental opportunity (sabbatical) do not have to sign a continued
service agreement.
Chapter 43, sections 4301-4305: Related to performance appraisal.
These sections are waived to the extent necessary to allow provisions
of the performance management system as described in this FRN.
Chapter 51, sections 5101-5112: Related to classification standards
and grading. Waived to the extent that white collar employees will be
covered by broadbanding and to the extent necessary to allow
classification provisions described in this FRN. Pay category
determination criteria for federal wage system positions remain
unchanged.
Chapter 53, sections 5301-5307: Related to pay comparability system
and General Schedule pay rates. Waived to the extent necessary to allow
demonstration project employees, including SSTM employees, to be
treated as General Schedule employees, and to allow basic rates of pay
under the demonstration project to be treated as scheduled rates of
pay. SSTM pay will not exceed EX-IV and locality adjusted SSTM rates
will not exceed EX III.
Chapter 53, sections 5331-5336: General Schedule pay rates. These
waivers apply to the extent necessary to allow: (1) Demonstration
Project employees to be treated as GS employees; (2) to allow the
provisions of this FRN pertaining to setting rates of pay; and (3)
waive sections 5335 and 5336 in their entirety.
Chapter 53, sections 5361-5366: Grade and pay retention. Waived to
the extent necessary to allow pay and grade retention provisions
described in this FRN.
Chapter 55, section 5542(a)(1)-(2): Overtime rates; computation.
These sections are adapted only to the extent necessary to provide that
the GS-10 minimum special rate (if any) for the special rate category
to which a project employee belongs is deemed to be the ``applicable
special rate'' in applying the pay cap provisions in 5 U.S.C. 5542.
Chapter 55, section 5545(d): Hazardous duty differential. This
waiver applies only to the extent necessary to allow demonstration
project employees to be treated as General Schedule employees. This
waiver does not apply to ST employees or employees in Payband V of the
E&S occupational family.
Chapter 55, section 5547(a)-(b): Limitation on premium pay. These
sections are adapted only to the extent necessary to provide that the
GS-15 maximum special rate (if any) for the special rate category to
which a project employee belongs is deemed to be the ``applicable
special rate'' in applying the pay cap provisions in 5 U.S.C. 5547.
Chapter 57, section 5753: Recruitment and Relocation Bonuses.
Waived to the extent necessary to allow demonstration project
employees, including SSTM employees, to be treated as General Schedule
employees.
Chapter 57, section 5754: Retention Bonuses. Waived to the extent
necessary to allow provisions of the retention counteroffer and
incentives as described in this FRN.
Chapter 57, section 5755: Supervisory Differentials. Waived to the
extent necessary to allow provisions as described in this FRN.
Chapter 59, section 5941: Allowances based on living costs and
conditions of environment; employees stationed outside continental U.S.
or Alaska. This waiver applies only to the extent necessary to provide
that COLAs paid to employees under the demonstration project are paid
in accordance with the regulations prescribed by the President (as
delegated to OPM).
Chapter 75, sections 7501(1), 7511(a)(1)(A)(ii), and
7511(a)(1)(C)(ii): Adverse Actions--Definitions. Waived to the extent
necessary to remove the reference to one year of current continuous
service, and to permit termination during the extended probationary
period without using adverse action procedures for those employees
serving a probationary period under an initial appointment except for
those with veterans' preference.
Chapter 75, section 7512(3): Adverse actions. This waiver applies
only to the extent necessary to replace ``grade'' with ``payband.''
Chapter 75, section 7512(4): Adverse actions. This waiver applies
only to the extent necessary to provide that adverse action provisions
do not apply to (1) conversions from General Schedule special rates to
demonstration project pay, as long as total pay is not reduced and (2)
reductions in pay due to the removal of a supervisory pay adjustment
upon voluntary movement to a nonsupervisory position.
B. Title 5, Code of Federal Regulations
Parts 300 through 330, Employment (General) other than Subpart G of
300. Waived to the extent necessary to allow provisions of the direct
hire authorities as described in 79 FR 43722 and 82 FR 29280.
Sections 300.601 through 300.605: Time-in-Grade requirements.
Restrictions eliminated under the demonstration.
Section 315.803(b): Agency Action during probationary period
(general). Waived to allow for termination during an extended
probationary period without using adverse action procedures under 5 CFR
part 752, subpart D.
Section 315.901 and 315.907: Statutory requirements. This waiver
applies only to the extent necessary to replace ``grade'' with ``pay
band.''
Sections 316.301, 316.303, and 316.304: Term Employment. Waived to
the extent necessary to allow modified term appointments and Flexible
Length and Renewable Term Technical Appointments as described in this
FRN.
Sections 330.103 through 330.105: Requirement to notify OPM. Waived
to the extent necessary to allow the Technical Center to publish
competitive announcements outside of USAJOBS.
Parts 332 and 335: Related to competitive examination. Waived to
the extent necessary to allow employees appointed on a Flexible Length
and Renewable Term Technical Appointment to apply for federal positions
as status candidates.
Section 332.401(b): Order on Registers. Waived to the extent that
for non-professional or non-scientific positions equivalent to GS-9 and
above, preference eligibles with a compensable service-connected
disability of 10 percent or more who meet basic (minimum) qualification
requirements will be entered at the top of the highest group certified
without the need for further assessment.
Section 332.402: Referring candidates for appointment. ``Rule of
three'' will not be used in the demonstration projects.
Section 332.404: Order of selection from certificates. Waived to
the extent that order of selection is not limited to highest three
eligibles.
Section 335.103: Agency promotion programs. Waived to the extent
necessary to extend the length of details and temporary promotions
without requiring competitive procedures.
[[Page 49274]]
Section 337.101(a): Rating applicants. Waived to the extent
necessary to allow referral without rating when there are 15 or fewer
qualified candidates and no qualified preference eligibles.
Section 338.301: Competitive service appointment. Waived to allow
for Distinguished Scholastic Achievement Appointment grade point
average requirements as described in this FRN.
Section 351.402(b): Competitive Areas. Waived to allow the
Technical Center to be established as a single competitive area.
Section 351.403: Competitive level. Waived to the extent that
payband is substituted for grade.
Section 351.504: Credit for Performance. Waived to the extent
necessary to allow provisions described in this FRN.
Section 351.701: Assignment Involving Displacement. Waived to the
extent that employees bump rights will be limited to one payband except
in the case of 30 percent preference eligible, which is a position
equivalent to five GS grades below the minimum grade level of his/her
payband.
Section 359.705: Related to SES pay. Waived to allow demonstration
project rules governing pay retention to apply to a former SES placed
on a SSTM position.
Section 410.308(a-f): Training to obtain an academic degree. Waived
to the extent necessary to allow provisions described in this FRN.
Section 410.309: Agreements to continue in service. This waiver
applies to that portion that pertains to the authority of the head of
the agency to determine continued service requirements, to waive
repayment of such requirements, and to the extent that the service
obligation is to the Technical Center.
Part 430, Subpart B: Performance Appraisal for General Schedule,
Prevailing Rate, and Certain Other Employees. Waived to the extent that
employees under the demonstration project will not be subject to the
requirements of Subpart B.
Sections 432.102--432.106(a): Related to Performance-based Actions.
Modified to the extent that an employee may be removed, reduced in band
level with a reduction in pay, reduced in pay without a reduction in
band level and reduced in band level without a reduction in pay based
on unacceptable performance. Modified also to delete reference to
critical element.
Part 511: Classification Under the General Schedule. Waived to the
extent necessary to allow classification provisions outlined in this
FRN to include the list of issues that are neither appealable nor
reviewable, the assignment of series under the project plan to
appropriate career paths; and to allow appeals to be decided by the
Technical Center Director. If the employee is not satisfied with the
Technical Center Director's response to the appeal, they may then
appeal to the DoD appellate level.
Part 530, Subpart C: Special salary rates. Waived in its entirety.
Part 531, Subparts B, D, and E: Determining rate of basic pay,
within-grade increases, and quality step increases. Waived in its
entirety.
Part 531, Subpart F: Locality-based comparability adjustments. This
waiver applies only to the extent necessary to allow demonstration
project employees, including SSTMs in Payband V, to be treated as
General Schedule employees, and basic rates of pay under the
demonstration project to be treated as scheduled annual rates of pay.
This waiver does not apply to ST employees who continue to be covered
by these provisions, as appropriate.
Part 536: Grade and pay retention. This waiver applies only to the
extent necessary to (1) replace ``grade'' with ``payband''; (2) provide
that pay retention provisions do not apply to conversions from General
Schedule special rates to demonstration project pay, as long as total
pay is not reduced, and to reductions in pay due solely to the removal
of a supervisory pay adjustment upon voluntarily leaving a supervisory
position; (3) provide that an employee on pay retention whose
performance rating is ``U'' is not entitled to 50 percent of the amount
of the increase in the maximum rate of basic pay payable for the
payband of the employee's position; (4) provide that pay retention
provisions do not apply when reduction in basic pay is due solely to
the reallocation of demonstration project pay rates in the
implementation of a `staffing supplement;' and (5) to the extent
necessary to allow SSTMs to receive pay retention as described in this
FRN.
Sections 550.105 and 550.106: Biweekly and annual maximum earnings
limitations. These sections are adapted only to the extent necessary to
provide that the GS-15 maximum special rate (if any) for the special
rate category to which a project employee belongs is deemed to be the
``applicable special rate'' in applying the pay cap provisions in 5
U.S.C. 5547.
Section 550.113(a): Computation of overtime pay. This section is
adapted only to the extent necessary to provide that the GS-10 minimum
special rate (if any) for the special rate category to which a project
employee belongs is deemed to be the ``applicable special rate'' in
applying the pay cap provisions in 5 U.S.C. 5542.
Section 550.703: Severance Pay. This waiver applies only to the
extent necessary to modify the definition of ``reasonable offer'' by
replacing ``two grades or pay levels'' with ``one band level'' and
``grade or pay Level'' with ``band level.''
Section 550.902: Hazardous Duty Differential. This waiver applies
only to the extent necessary to allow demonstration project employees
to be treated as General Schedule employees. This waiver does not apply
to SSTM employees.
Part 575, Subparts A, B, C, and D: Recruitment Bonuses, Relocation
Bonuses, Retention Allowances and Supervisory Differentials. This
waiver applies to the extent necessary to allow employees and positions
under the STRL demonstration project covered by paybanding to be
treated as employees and positions under the General Schedule; to allow
the Technical Center Director to pay a retention counteroffer up to 50
percent of basic pay of either a base pay and/or a cash payment to
retain quality employees; and to the extent necessary to allow SSTMs to
receive supervisory pay differentials. Criteria for retention
determination and preparing written service agreements will be as
prescribed in 5 U.S.C. 5754 and as waived herein.
Sections 752.201 and 752.401: Principal statutory requirements and
coverage. Waived to the extent necessary to replace ``grade'' with
``payband''; and to the extent necessary to provide that adverse action
provisions do not apply to (1) conversions from General Schedule
special rates to demonstration project pay, as long as total pay is not
reduced, and (2) reductions in pay due to the removal of a supervisory
pay adjustment upon voluntary movement to a nonsupervisory position.
Appendix A: Project Evaluation and Oversight
[[Page 49275]]
Intervention Impact Model--DoD Lab Demonstration Program
----------------------------------------------------------------------------------------------------------------
Intervention Expected effects Measures Data sources
----------------------------------------------------------------------------------------------------------------
1. Compensation
----------------------------------------------------------------------------------------------------------------
a. Paybanding..................... --increased organizational --perceived flexibility... --attitude survey.
flexibility.
--reduced administrative --actual/perceived time --personnel office
workload, paperwork savings. data, attitude
reduction. survey.
--advanced in-hire rates.. --starting salaries of --workforce data.
banded v. non-banded
employees.
--increased pay potential. --progression of new hires --workforce data.
over time by band,
occupational family.
--mean salaries by band, --workforce data.
occupational family,
demographics, total
payroll cost.
--increased satisfaction --employee perceptions of --attitude survey.
with advancement. advancement.
--increased pay --pay satisfaction, --attitude survey.
satisfaction. internal/external equity.
--improved recruitment.... --offer/acceptance ratios. --personnel office
data.
--percent declinations.... --personnel office
data.
b. Conversion buy-in.............. --employee acceptance..... --employee perceptions of --attitude survey.
equity, fairness.
--cost as a percent of --workforce data.
payroll.
c. Supervisor pay differential/ --Increased incentive to --perceived motivational --attitude survey.
adjustments. accept supervisory power.
positions.
----------------------------------------------------------------------------------------------------------------
2. Performance Management
----------------------------------------------------------------------------------------------------------------
a. Cash awards/bonuses............ --reward/motivate --perceived motivational --attitude survey.
performance. power.
--to support fair and --amount and number of --workforce data.
appropriate distribution awards by occupational
of awards. family, demographics.
--perceived fairness of --attitude survey.
awards.
--satisfaction with --attitude survey.
monetary awards.
b. Performance based pay --increased pay- --perceived pay- --attitude survey.
progression. performance link. performance link.
--perceived fairness of --attitude survey.
ratings.
--improved performance --satisfaction with --attitude survey.
feedback. ratings.
--employee trust in --attitude survey.
supervisors.
--adequacy of performance --attitude survey.
feedback.
--decreased turnover of --turnover by performance --workforce data.
high performers/increased rating category.
turnover of low
performers.
--differential pay --pay progression by --workforce data.
progression of high/low performance rating
performers. category, occupational
family.
--alignment of --linkage of performance --attitude survey/
organizational and expectations to strategic focus groups.
individual performance plans/goals.
expectations and results.
--increased employee --better communication of --attitude survey/
involvement in performance expectations. focus groups.
performance planning and
assessment.
--perceived involvement... --attitude survey/
focus groups.
c. New appraisal process.......... --reduced administrative --employee and supervisor --attitude survey.
burden. perception of revised
procedures.
--improved communication.. --perceived fairness of --focus groups.
process.
d. Performance development........ --better communication of --feedback and coaching --attitude survey.
performance expectations. procedures used.
--time, funds spent on --workforce data/
training by demographics. training records.
--improved satisfaction --organizational --attitude survey.
and quality of workforce. commitment.
--perceived workforce --attitude survey.
quality.
----------------------------------------------------------------------------------------------------------------
3. Classification
----------------------------------------------------------------------------------------------------------------
a. Improved classification system --reduction in amount of --time spent on --workforce data.
with generic standards. time and paperwork spent classification procedures.
on classification.
--reduction of paperwork/ --workforce data.
number of personnel
actions (classification/
promotion).
--ease of use............. --managers' perceptions of --attitude survey.
time savings, ease of
use, improved ability to
recruit.
--improved recruitment of --quality of recruits..... --focus groups/
employees with interviews.
appropriate skills.
--perceived quality of --focus groups.
recruits.
--GPA of new hires, --personnel office.
educational levels.
[[Page 49276]]
b. Classification authority --increased supervisory --perceived authority..... --attitude survey.
delegated to managers. authority/accountability.
--decreased conflict --number of classification --personnel office.
between management and disputes/appeals pre/post.
personnel staff.
--management satisfaction --attitude survey.
with service provided by
personnel office.
--no negative impact on --internal pay equity..... --attitude survey.
internal pay equity.
----------------------------------------------------------------------------------------------------------------
4. Combination of All Interventions
----------------------------------------------------------------------------------------------------------------
All............................... --Improved organizational --combination of personnel --all data sources.
effectiveness. management measures.
--improved management of --employee/management --attitude survey.
R&D workforce. satisfaction.
--cross functional --perceived effectiveness --attitude survey.
coordination. of planning procedures.
--actual/perceived --attitude survey.
coordination.
--increased product --customer satisfaction... --customer
success. satisfaction
surveys.
--cost of innovation...... --project training/ --demo project
development cost (staff records.
salaries, contract cost, --contract
training hours per documents.
employee).
----------------------------------------------------------------------------------------------------------------
Appendix B: Performance Elements
All employees will be rated against at least the five generic
performance elements listed through ``e'' in this appendix.
Technical competence is a mandatory critical element. Other elements
may be identified as critical by agreement between the rater and the
employee. In case of disagreements, the decision of the supervisor
will prevail. Generally, any performance element weighted 25 or
higher should be critical. However, only those employees whose
duties require manager/leader responsibilities will be rated on
element ``f.'' Supervisors will be rated against an additional
critical performance element, listed at ``g.'' in this appendix:
a. Technical Competence. Exhibits and maintains current
technical knowledge, skills, and abilities to produce timely and
quality work with the appropriate level of supervision. Makes
prompt, technically sound decisions and recommendations that add
value to mission priorities and needs. For appropriate occupational
families, seeks and accepts developmental and/or special
assignments. Adaptive to technological change. (Weight range: 15 to
50).
b. Working Relationships. Accepts personal responsibility for
assigned tasks. Considerate of others' views and open to compromise
on areas of difference, if allowed by technology, scope, budget, or
direction. Exercises tact and diplomacy and maintains effective
relationships, particularly in immediate work environment and
teaming situations. Always willing to give assistance. Shows
appropriate respect and courtesy. (Weight Range: 5 to 15).
c. Communications. Provides or exchanges oral/written ideas and
information in a manner that is timely, accurate and cogent. Listens
effectively so that resultant actions show understanding of what was
said. Coordinates so that all relevant individuals and functions are
included in, and informed of, decisions and actions. (Weight Range:
5 to 15).
d. Resource Management. Meets schedules and deadlines, and
accomplishes work in order of priority; generates and accepts new
ideas and methods for increasing work efficiency; effectively
utilizes and properly controls available resources; supports
organization's resource development and conservation goals. (Weight
Range: 15 to 50).
e. Customer Relations. Demonstrates care for customers through
respectful, courteous, reliable, and conscientious actions. Seeks
out and develops solid working relationships with customers to
identify their needs, quantifies those needs, and develops practical
solutions. Keeps customer informed and prevents surprises. Within
the scope of job responsibility, seeks out and develops new programs
and/or reimbursable customer work. (Weight Range: 10 to 50).
f. Management/Leadership. Actively furthers the mission of the
organization. As appropriate, participates in the development and
implementation of strategic and operational plans of the
organization. Develops and implements tactical plans. Exercises
leadership skills within the environment. Mentors junior personnel
in career development, technical competence, and interpersonal
skills. Exercises due responsibility of technical/acquisition/
organizational positions assigned to them. (Weight Range: 0 to 50).
g. Supervision/EEO. Works toward recruiting, developing,
motivating, and retaining quality team members; takes timely/
appropriate personnel actions, applies EEO/merit principles;
communicates mission and organizational goals; by example, creates a
positive, safe, and challenging work environment; distributes work
and empowers team members. (Weight Range: 15 to 50).
Dated: September 16, 2019.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2019-20329 Filed 9-18-19; 8:45 am]
BILLING CODE 5001-06-P
