[Federal Register Volume 84, Number 226 (Friday, November 22, 2019)]
[Notices]
[Pages 64469-64495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25201]
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DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID DOD-2019-OS-0127]
Department of Defense Science and Technology Reinvention
Laboratory (STRL) Personnel Demonstration (Demo) Project in the U.S.
Army Research Institute for the Behavioral and Social Sciences (ARI)
AGENCY: Under Secretary of Defense for Research and Engineering
(USD(R&E)), Department of Defense (DoD).
ACTION: Notice of proposal to adopt a demonstration project plan and
additional flexibilities.
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SUMMARY: This Federal Register Notice (FRN) serves as notice of the
proposed adoption by the U.S. Army Research Institute for the
Behavioral and Social Sciences (ARI) of the personnel demonstration
project flexibilities implemented by the Combat Capabilities
Development Command (CCDC) Command, Control, Communications, Computers,
Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center
(previously designated as the U.S. Army Communications-Electronics
Research, Development and Engineering Center and the U.S. Army
Communications-Electronics Command, Research, Development and
Engineering), the CCDC Chemical Biological Center (CBC) (previously
designated as the Edgewood Chemical Biological Center), and the CCDC
Soldier Center (SC) (previously designated as the Natick Soldier
Research, Development and Engineering Center). The majority of
flexibilities and administrative procedures are adopted without
changes. However, modifications were made when necessary to address
ARI's specific organizational, management structure, workforce, and
approval needs and to conform to changes in applicable law and
regulations after the publication of the adopted personnel
demonstration project flexibilities. In addition, changes were made
based on current law, best practices, and administrative guidance.
DATES: The ARI 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 December 23, 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 (FR) 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:
ARI: Dr. Scott Shadrick, U.S ARI, Research Program Manager
(DAPE-ARI), 6000 6th Street, Fort Belvoir, VA 22060, (254) 288-3800.
DoD: Dr. Jagadeesh Pamulapati, Director, Laboratories and
Personnel Office, 4800 Mark Center Drive, Alexandria, VA 22350, (571)
372-6372.
SUPPLEMENTARY INFORMATION: Section 342(b) of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 1995, Public Law (Pub.
L.) 103-337, as amended, authorizes the Secretary of Defense (SECDEF),
through the USD(R&E), to conduct personnel demonstration projects at
DoD laboratories designated as STRLs.
1. Background
Since 1966, many studies of DoD laboratories have been conducted on
laboratory quality and personnel. Most of these studies have
recommended improvements in civilian personnel policy, organization,
and management. Pursuant to the authority provided in section 342(b) of
the NDAA for FY 1995, as amended, a number of DoD STRL personnel
demonstration projects were approved. These 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.
ARI conducted a thorough review of the personnel practices of
existing DoD laboratories designated as STRLs and applicable laws,
regulations, and guidance to identify potential flexibilities that
would allow ARI to (1) improve effectiveness through a more flexible,
responsive personnel system; (2) increase management authority over
human resources management; (3) recruit, develop, motivate, and retain
a high quality workforce; and (4) adjust workforce levels to meet
strategic program and organizational needs.
This demonstration project involves:
(1) New appointment authorities;
(2) Extended probationary periods;
(3) Supervisory probationary periods;
(4) Pay banding;
(5) Streamlined delegated examining;
(6) Simplified job classification;
(7) A pay-for-performance based appraisal system;
(8) A sabbatical program;
(9) Academic degree and certificate training;
(10) A Volunteer Emeritus Corps; and
(11) Senior Scientific Technical Manager (SSTM) positions.
The demonstration project also involves the use of numerous direct
hire authorities, as appropriate and in accordance with guidance. Many
aspects of a demonstration project are experimental. Modifications may
be made from time to time as we gain experience, analyze results, and
reach conclusions on how the system is working. The provisions of
Department of Defense Instruction (``DoDI'') 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) (including subsequently issued or
superseding instructions), will be followed to modify, supplement
through adoption, or otherwise change this demonstration project plan.
2. Overview
ARI intends to build its demonstration project using flexibilities
adopted from existing STRL demonstration programs with significant
overlap with the CCDC C5ISR, CCDC CBC, and CCDC SC.
As described in 73 FR 73248, December 2, 2008, flexibilities are
defined as those features described in a STRL FRN; amendments thereto
published in an FRN; minor changes made within the authorities of a
demonstration project plan, documented in laboratory internal issuances
and disseminated to employees; and official laboratory implementing
issuances that have been distributed.
3. Access to Flexibilities of Other STRLs
Flexibilities published in this FR will be available for use by all
STRLs listed enumerated in section 1105(a) of Public Law 111-84, as
amended, in accordance with DoDI 1400.37 (including revised or
superseded instructions) and after the
[[Page 64470]]
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 Organizations
E. Participating Employees and Union Representation
F. Project Design
G. Personnel Management Board
H. Organizational Structure and Design
I. Funding Levels
III. Personnel System Changes
A. Pay Banding
B. Classification
C. Pay for Performance
D. Hiring Authority
E. Internal Placement
F. Pay Setting
G. Employee Development
IV. Implementation Training
V. Conversion
A. Conversion to the Demonstration Project
B. Converstion or Movement From a Project Position to a General
Schedule Position
C. Personnel Administration
D. Automation
E. Revision
VI. Project Duration
VII. Evaluation Plan
A. Overview
B. Method of Data Collection
VIII. Demonstration Project Costs
A. Cost Discipline
B. Developmental Costs
IX. Required Waivers to Law and Regulation
A. Waivers to Title 5, United States Code (U.S.C.)
B. Waivers to Title 5, Code of Federal Regulations (CFR)
Appendix A: ARI Employees by Duty Locations
Appendix B: Occupational Series by Occupational Family
Appendix C: Performance Elements
I. Executive Summary
ARI operates as a Field Activity of the Deputy Chief of Staff, G-1.
As a Science and Technology (S&T) lab, ARI has the core mission of
inventing for the future while maintaining an organizational culture of
action in support of emerging Army needs. ARI's S&T program is focused
on developing innovative measures and methods to optimize the Soldier
lifecycle and talent management, developing theories and investigating
new domains in the behavioral and social sciences, conducting
scientific assessments, providing behavioral and social science advice
to human resource authorities and informing human resource policies.
To sustain these unique capabilities, ARI must be able to hire,
retain, and continuously motivate enthusiastic, innovative, and highly-
educated scientists, supported by skilled business management and
administrative professionals, as well as a skilled administrative and
technical support staff.
The goal of the current project is to enhance the quality and
professionalism of the ARI workforce through improvements in the
efficiency and effectiveness of the human resource system. The project
interventions will strive to achieve the best workforce for the ARI
mission, adjust the workforce for change, and improve workforce
satisfaction. This demonstration project extends the CCDC C5ISR/CCDC
CBC/CCDC SC demonstration projects to ARI. The CCDC C5ISR/CCDC CBC/CCDC
SC projects built on the concepts, and use much of the same language,
as the demonstration projects developed by the CCDC Army Research
Laboratory (ARL) (previously designated as the ARL); the CCDC Aviation
and Missile Center (previously designated as the Aviation and Missile
Research, Development, and Engineering Center); the Navy's ``China
Lake;'' as well as other laboratories designated as an STRL. The
results of this project will be evaluated by ARI within five years of
implementation.
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoD STRLs can be enhanced by expanding opportunities available to
employees and by allowing greater managerial control over personnel
functions through a more responsive and flexible personnel system.
Federal laboratories need more efficient, cost effective, and timely
processes and methods to acquire and retain a highly creative,
productive, educated, and trained workforce. This project, in its
entirety, attempts to improve employees' opportunities and provide
managers, at the lowest practical level, the authority, control, and
flexibility needed to achieve the highest quality organization and hold
them accountable for the proper exercise of this authority within the
framework of an improved personnel management system.
While many aspects of a demonstration project were once considered
experimental, many have been implemented in various DoD laboratories
for a number of years. Modifications have been made based on the
implementation experience of other DoD laboratories, best practices,
and formative evaluation efforts. Additional modifications may be
needed from time to time as additional experience is gained during this
specific implementation based on evaluations of how the system is
working to meet the goals and objectives of the personnel demonstration
project.
B. Problems With the Present System
The current Civil Service GS system has existed in essentially the
same form since the 1920s. Work is classified into one of fifteen
overlapping pay ranges that correspond with the fifteen grades. Base
pay is set at one of those fifteen grades and the ten interim steps
within each grade. The Classification Act of 1949 rigidly defines types
of work by occupational series and grade, with very precise
qualifications for each job. This system does not quickly or easily
respond to new ways of designing work and changes in the work itself.
In addition, the GS system makes it difficult for the DoD labs to
recruit and retain the best and the brightest scientists.
The need to change the current hiring system is essential, as ARI
must be able to recruit and retain professional scientific researchers,
support staff, and other professionals and skilled technicians. ARI
must be able to compete with the private sector for the best talent and
be able to make job offers in a timely manner with the attendant
bonuses and incentives to attract high-quality employees.
Finally, current limitations on training, retraining, and otherwise
developing employees make it difficult to correct skill imbalances and
to prepare current employees for new lines of research needed to meet
the Army's changing missions and emerging technology requirements.
C. Changes Required/Expected Benefits
The primary benefit expected from this demonstration project is
greater organizational effectiveness through increased employee
satisfaction. The long-standing Department of the Navy ``China Lake''
and subsequent demonstration projects have produced impressive
statistics on increased job satisfaction and quality of employees
versus that for the Federal workforce in general. Similar results have
been demonstrated in more recent STRL demonstration projects and other
alternative personnel systems implemented in the DoD and other
agencies.
This project will demonstrate that a human resource system tailored
to the mission and needs of the ARI workforce will facilitate:
(1) Increased quality in the workforce and resultant research
products and outcomes,
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(2) More effective, efficient, and adaptable organizational systems
required to respond to Army needs,
(3) Increased timeliness of key personnel processes,
(4) Increased retention of excellent performers,
(5) Increased success in recruitment of personnel with critical
skills,
(6) Increased management authority and accountability,
(7) Simpler and more effective human resources management process,
and
(8) Increased workforce satisfaction with the personnel management
system.
D. Participating Organizations
ARI is comprised of the ARI Headquarters located at Fort Belvoir,
Virginia, and ARI research, technical, and support personnel located at
Fort Belvoir, with geographically dispersed research units located at
key strategic locations at Fort Benning, Georgia; Fort Hood, Texas; and
Fort Leavenworth, Kansas. ARI also has a small number of employees
dispersed at other locations in small numbers required to meet Army
needs and mission requirements. As in the past and as expected in the
future, there may be modifications to organizational structure and
locations based on changing needs.
E. Participating Employees and Union Representation
This demonstration project will cover approximately 114 ARI
civilian employees under Title 5 U.S.C. in the occupations listed in
Appendix B. Additional employees and other occupations may be added
after implementation of the project. The project plan does not cover
members of the Senior Executive Service (SES), Senior Level (SL),
Scientific and Professional (ST) employees, Federal Wage System (FWS)
employees, and employees presently covered by the Defense Civilian
Intelligence Personnel System (DCIPS).
Department of the Army, Army Command centrally funded, local
interns, and Pathways Program employees (hired prior to implementation
of the project) will not be converted to the demonstration project
until they reach their full performance level. Pathways employees will
continue to follow the Defense Performance Management and Appraisal
Program (DPMAP) until they have reached their full performance level
and are transitioned to the STRL personnel system.
The American Federation of Government Employees (AFGE) Local 1920
represents a small percentage of ARI's workforce located at one
research location. Those represented employees may or may not
participate in the personnel demonstration project depending on
negotiations with the Union, specific hiring actions, and other
factors. Of those employees assigned to ARI, approximately seven
percent are represented by a labor union.
F. Project Design
Upon notification of the initial authority granted by Congress
designating ARI as an STRL, the ARI Director assigned an experienced
and tenured leader within the organization to contact appropriate
agencies to develop the project plan. Initial guidance was provided by
the DoD, Defense Civilian Personnel Advisory Services (DCPAS) and HQDA,
Office of the Assistant Chief of Staff, G-1, Civilian Personnel
Staffing and Classification Division. As a result of those initial
discussions, ARI conducted a comprehensive review of the personnel
practices of existing DoD laboratories designated as STRLs. That review
resulted in a detailed list of personnel flexibilities adopted by the
various DoD laboratories. As a part of the initial review, the
Laboratory Quality Enhancement Program (LQEP)--Personnel Subpanel was
contacted. The LQEP--Personnel Subpanel (LQEP-P) consists of STRL/
Personnel Management Demonstration professionals and experts. LQEP-P
members provided extensive advice and example materials for
consideration. Detailed discussions with LQEP-P members focused on the
capabilities provided by the various flexibilities employed, lessons
learned and best practices, and implementation guidance. Concurrent to
the review of existing flexibilities, a review of ARI's specific
organizational personnel needs and requirements was conducted. Finally,
a review of innovative personnel practices used outside of the federal
government was conducted.
The initial set of existing flexibilities, with descriptions,
waiver requirements, and expected benefits was briefed to ARI
leadership and supervisors. Detailed discussion focused on how the
proposed flexibility would help ARI accomplish its personnel management
goals and how it would impact the workforce. The briefing and
subsequent discussions resulted in a set of flexibilities for further
research and consideration that were aligned with ARI personnel
management needs. Those flexibilities were then extensively researched
and discussed with LQEP-P members to determine if the proposed
flexibility would meet those needs and to determine the cost and
benefit of implementing the specific flexibility. The LQEP-P members
were invaluable in this process. This resulted in a subset of personnel
demonstration flexibilities that were best matched to ARI personnel
needs and requirements. A team of senior leaders reviewed the potential
flexibilities and provided recommendations for further consideration.
This preparatory work resulted in a proposed IOP that fully
described how the proposed personnel management program would be
implemented in ARI. The IOP was reviewed by and discussed with senior
managers and supervisors to determine if the proposed system would meet
ARI needs and workforce expectations. Following these internal reviews,
final changes were made to the IOP and the associated FRN.
G. Personnel Management Board
ARI will create a Personnel Management Board (PMB) to oversee and
monitor the fair, equitable, and consistent implementation of the
provisions of the demonstration project to include establishment of
internal controls and accountability. Members of the board will be
senior ARI managers/supervisors and independent contributors appointed
by the ARI Director. As needed, ad hoc members (such as Human Resources
representatives), will serve as advisory members to the board.
Based on guidance and consistent interaction with the ARI Director,
the board will execute the following:
(1) Carry out the guidance and procedures in all aspects of the
personnel demonstration program in accordance with the direction given
by the ARI Director.
(2) Determine the composition of the pay-for-performance pay pools
in accordance with the guidelines of the IOP;
(3) Review operation of pay pools and provide guidance to pay pool
managers;
(4) Oversee disputes in pay pool issues;
(5) Formulate and execute the civilian pay budget;
(6) Manage the awards pools;
(7) Determine hiring and promotion base pay as well as exceptions
to pay-for-performance base pay increases;
(8) Conduct classification review and oversight, monitoring, and
adjusting classification practices and deciding broad classification
issues;
(9) Approve major changes in position structure;
(10) Address issues associated with multiple pay systems during the
demonstration project;
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(11) Establish Standard Performance Elements and Benchmarks;
(12) Assess the need for changes to demonstration project
procedures and policies;
(13) Review requests for Supervisory/Team Leader Base Pay
Adjustments and provide recommendations to the ARI Director;
(14) Ensure in-house personnel budget discipline;
(15) Develop policies and procedures for administering
Developmental Opportunity Programs;
(16) Ensure all employees are treated in a fair and equitable
manner in accordance with all policies, regulations, and guidelines
covering this demonstration project; and
(17) Conduct a formative evaluation of the project.
In executing these duties and responsibilities, the board will keep
in close contact and consultation with the ARI Director to ensure
policies and procedures are executed consistently across the
organization and aligned with the Director's guidance.
H. Organizational Structure and Design
To optimize the effectiveness and efficiency of ARI during the
adoption of the new STRL personnel system, the ARI Director will review
and realign the organization structure to best meet mission needs and
requirements. Realignment may include removing limitations in terms of
supervisory ratios consistent with section 342(b) of the NDAA for FY
1995 as amended by section 1109 of the NDAA for FY 2000, and the
alignment and organization of the workforce required to accomplish the
mission of the STRL consistent with 10 U.S.C. 2358a.
The ARI Director will manage workforce strength, structure,
positions, and compensation without regard to any limitation on
appointments, positions, or funding in a manner consistent with the
budget available in accordance with 10 U.S.C. 2358a.
I. Funding Levels
The Under Secretary of Defense (Personnel & Readiness), may, at
his/her discretion, adjust the minimum funding levels 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. Pay Banding
The design of the ARI pay banding system takes advantage of the
many reviews performed by DA and DoD. The design has the benefit of
being preceded by exhaustive studies of pay banding systems currently
practiced in the Federal sector, to include those practiced by the
Navy's ``China Lake'' experiment and subsequent demo/STRL demonstration
projects. In addition, the pay plans, occupational families, pay bands,
and general schedule equivalent grade structures for all the existing
DoD laboratories were reviewed. ARI's pay banding system will replace
the current GS structure. Currently, the fifteen grades of the GS are
used to classify positions and, therefore, to set pay. The GS covers
all white-collar work: administrative, technical, clerical and
professional. Changes in this rigid structure are required to allow
flexibility in hiring, developing, retaining, and motivating the
workforce. The pay banding structure adopted by ARI's STRL is similar
to the one employed by the U.S. Army Armament Research, Development,
and Engineering Center as well as other DoD laboratories.
1. Occupational Families
Occupations with similar characteristics will be grouped together
into one of three occupational families with pay band levels designed
to facilitate pay progression. The naming structure and other
occupational family features adopted for ARI's STRL are consistent with
other Army laboratories implementing a similar system. Each
occupational family will be composed of pay bands corresponding to
recognized advancement and career progression expected within the
occupations. These pay bands will replace individual grades and will
not be the same for each occupational family. Each occupational family
will be divided into three to six pay bands with each pay band covering
the same pay range now covered by one or more GS grades. Employees
track into an occupational family based on their current series as
provided in Appendix B. The upper and lower pay rate for base pay of
each pay band is defined by the GS rate for the grade and step as
indicated in Figure 1 except for Pay Band VI of the Engineering &
Scientist (E&S) occupational family. Comparison to the GS grades was
used in setting the upper and lower base pay dollar limits of the pay
band levels. However, once employees are moved into the demonstration
project, GS grades will no longer apply. The current occupations have
been examined, and their characteristics and distribution have served
as guidelines in the development of the following three occupational
families: Engineering and Science (E&S), Business & Technical (B&T),
and General Support (GEN).
Engineering and Science (E&S) (Pay Plan DB): This occupational
family includes technical professional positions, such as psychologist
and statisticians. Additional occupational series may be added in the
future. Specific course work or educational degrees are required for
these occupations. Six pay bands have been established for the E&S
occupational family:
(1) Band I is a student trainee track covering GS-1, step 1 through
GS-4, step 10.
(2) Band II is a developmental track covering GS-5, step 1 through
GS-11, step 10.
(3) Band III is a full-performance technical track covering GS-12,
step 1 through GS-13, step 10.
(4) Band IV includes senior technical/team leader positions
covering GS-14, step 1 through GS-14, step 10.
(5) Band V includes supervisor/manager/senior technical positions
covering GS-15, step 1 through GS-15, step 10.
(6) Band VI includes SSTM positions. The pay range is: Minimum base
pay is 120 percent of the minimum base pay of GS-15; maximum base pay
is Level IV of the Executive Schedule (EX-IV); and maximum adjusted
base pay is Level III of the Executive Schedule (EX-III).
Business & Technical (B&T) (Pay Plan DE): This occupational family
includes such positions as procurement specialists, finance,
accounting, management analysis, computer specialists, and quality
assurance specialists. Employees in these positions may or may not
require specific course work or educational degrees. Five pay bands
have been established for the B&T occupational family:
(1) Band I is a student trainee track covering GS-1, step 1 through
GS-4, step 10.
(2) Band II is a developmental track covering GS-5, step 1 through
GS-11, step 10.
(3) Band III is a full performance track covering GS-12, step 1
through GS-13, step 10.
(4) Band IV includes first-level supervisors and senior technical
personnel covering GS-14, step 1 through GS-14, step 10.
(5) Band V is a supervisor/manager track covering GS-15, step 1
through GS-15, step 10.
General Support (GEN) (Pay Plan DK): This occupational family is
composed of positions for which specific course work or educational
degrees are not required.
[[Page 64473]]
Clerical work usually involves the processing and maintaining of
records. Assistant work requires knowledge of methods and procedures
within a specific administrative area. This family includes such
positions as secretaries, office automation clerks, and budget/program/
computer assistants. Three pay bands have been established for the GEN
occupational family:
(1) Band I includes entry-level positions covering GS-1, step 1
through GS-4, step 10.
(2) Band II includes full-performance positions covering GS-5, step
1 through GS-8, step 10.
(3) Band III includes senior technicians/assistants/secretaries
covering GS-9 step 1 through GS-10, step 10.
2. Pay Band Design
The pay bands for the occupational families and how they relate to
the current GS framework are shown in Figure 1.
[GRAPHIC] [TIFF OMITTED] TN22NO19.001
Employees will be converted into the occupational family and pay
band that corresponds to their GS series and grade. Each employee
converted to the demonstration project is assured, upon conversion, an
initial place in the system without loss of pay. However, exceptional
qualifications or other compelling reasons based on specific criteria
may lead to a higher entrance base pay within a band, commensurate with
the employee's experience and qualifications. As the pay rates of the
GS scale are increased due to the annual general pay increases, the
upper and lower base pay rates of the pay bands will also increase.
Since pay progression through the bands depends directly on
performance, there will be no scheduled Within-Grade Increases (WGIs)
or Quality Step Increases (QSIs) for employees once the pay banding
system is in place.
3. Pay Band VI
The pay banding plan expands the pay banding concept used at
``China Lake'' and other laboratories by creating Pay Band VI for the
E&S occupational family. The band is designed for SSTM as authorized in
10 U.S.C. 2358a and described in 79 FR 43722. Pay Band VI will apply
exclusively to positions designated as SSTMs.
The primary function of these positions is to engage in research
and development in the physical, biological, medical, or engineering
sciences, or another field closely related to the ARI mission and to
carry out technical supervisory responsibilities.
As a part of the initial implementation of the STRL, the Director
will review organizational and mission requirements to determine
appropriate use of available SSTM positions and, if appropriate, will
establish SSTM positions consistent with long-term organizational plans
and limitations set forth by Congress (e.g., number of SSTM positions
based on percent of workforce requirements). The pay range for SSTM
positions is as follows: Minimum base pay is 120 percent of the minimum
base pay of GS-15, maximum rate of base pay is Level IV of the
Executive Schedule (EX-IV), and maximum adjusted base pay is Level III
of the Executive Schedule (EX-III). Adjusted base pay is base rate plus
locality or supervisory pay differential as appropriate.
After full implementation of the STRL, newly vacant SSTM positions
will be filled competitively. Panels will be created to assist in the
review of candidates for SSTM positions. Panel members typically will
be SES members, ST employees, and, after full implementation, those
employees designated as SSTMs. In addition, General Officers and
recognized technical experts from outside ARI may serve, as
appropriate. The panel will apply criteria developed largely from the
OPM Research Grade Evaluation Guide for positions exceeding the GS-15
level and other OPM guidance related to positions exceeding the GS-15
level. The purpose of the panel is to ensure impartiality and a
rigorous and demanding review.
Consistent with 10 U.S.C. 2358a, the demonstration project will
implement SSTM flexibilities described in 79 FR 43722.
B. Classification
1. Occupational Series
The present GS classification system has over 400 occupational
series, which are divided into 23 occupational groupings. ARI currently
has positions in fewer than 20 occupational series. All positions
listed in Appendix B will be in the classification structure.
Provisions will be made for including other occupations in response to
changing missions and agency requirements.
2. Classification Standards and Position Descriptions
If available, ARI will use a fully automated classification system
modeled after the Navy's ``China Lake'' and ARL's automated systems.
The Web-based automation tool is a fully
[[Page 64474]]
integrated classification system that can create standardized,
classified position descriptions under the new pay banding system. The
present system of OPM classification standards will be used for the
identification of proper series and occupational titles of positions
within the demonstration project. Current OPM position classification
standards, in some cases, will not be used to grade positions in this
project. However, the grading criteria in those standards will be used
as a framework to develop new and simplified standards for the purpose
of pay band determinations. The objective is to record the essential
criteria for each pay band within each occupational family by stating
the characteristics of the work, the responsibilities of the position,
and the competencies required. The classification standard for each pay
band will serve as an important component to update existing position
descriptions, which will include position-specific information, and
provide data element information pertinent to the job. The computer-
assisted process will produce information necessary for position
descriptions. The new descriptions will be easier to prepare, minimize
the amount of writing time and make the position description a more
useful and accurate tool for other personnel management functions.
Specialty work codes (narrative descriptions) will be used to
further differentiate types of work and the competencies required for
particular positions within an occupational family and pay band. Each
code represents a specialization or type of work within the occupation.
3. Fair Labor Standards Act
Fair Labor Standards Act (FLSA) exemption and non-exemption
determinations will be consistent with criteria found in 5 CFR part
551. All employees are covered by the FLSA unless they meet the
criteria for exemption. The duties and responsibilities outlined in the
classification standards for each pay band will be compared to the FLSA
criteria. As a general rule, the FLSA status can be matched to
occupational family and pay band as indicated in Figure 2. For example,
positions classified in Pay Band I of the E&S occupational family are
typically nonexempt, meaning they are covered by the overtime
entitlements prescribed by the FLSA. An exception to this guideline
includes supervisors/managers whose primary duties meet the definitions
outlined in the OPM GS Supervisory Guide. Therefore, supervisors/
managers in any of the pay bands who meet the foregoing criteria are
exempt from the FLSA. The Director/manager/or supervisor with
classification authority will make the determinations on a case-by-case
basis by comparing assigned duties and responsibilities to the
classification standards for each pay band and the 5 CFR part 551 FLSA
criteria. Additionally, the advice and assistance of the servicing
Civilian Personnel Advisory Center (CPAC) will be obtained in making
determinations. The benchmark position descriptions will not be the
sole basis for the determination. Basis for exemption will be
documented and attached to each position 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 CPAC.
[GRAPHIC] [TIFF OMITTED] TN22NO19.002
4. Classification Authority
The ARI Director will have classification authority and may, in
turn, delegate this authority to appropriate levels. Any individual
with delegated classification authority must complete required
training. Position descriptions will be developed to assist in
exercising delegated position classification authority. Those leaders
with classification authority will identify the occupational family,
job
[[Page 64475]]
series, functional code, specialty work code, pay band level, and other
critical information. Personnel specialists will provide ongoing
consultation and guidance to managers and supervisors throughout the
classification process. These decisions will be documented in the
position description.
5. Classification Appeals
Classification appeals under this demonstration project will be
processed using the following procedures: An employee may appeal the
determination of occupational family, occupational series, position
title, and pay band of his/her position at any time. An employee must
formally raise the area of concern to supervisors in the immediate
chain of command, either verbally or in writing. If the employee is not
satisfied with the supervisory response, he/she may then appeal to the
Personnel Management Board. A final appeal may be made to the DoD
appellate level. Appeal decisions rendered by DoD will be final and
binding on all administrative, certifying, payroll, disbursing, and
accounting officials of the government. Classification appeals are not
accepted on positions which exceed the equivalent of a GS-15 level.
Time periods for cases processed 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 the
occupational family; the propriety of a pay schedule; or matters
grievable under an administrative or negotiated grievance procedure, or
an alternative dispute resolution procedure.
The evaluations of classification appeals under this demonstration
project are based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the
CPAC providing personnel service and will include copies of appropriate
demonstration project criteria.
C. Pay for Performance
1. Overview
The purpose of the pay-for-performance system is to provide an
effective, efficient, and flexible method for assessing, compensating,
and managing the ARI workforce. It is essential for the development of
a highly productive workforce and to provide management at the lowest
practical level, the authority, control, and flexibility needed to
achieve a quality organization and meet mission requirements. The pay-
for-performance system allows for greater employee involvement in the
assessment process, strives to increase communication between
supervisor and employee, promotes a clear accountability of
performance, facilitates employee career progression, and provides an
understandable and rational basis for pay changes by linking pay and
performance.
The pay-for-performance system uses annual performance payouts
based on the employee's total performance score rather than within-
grade increases, quality step increases, promotions from one grade to
another where both grades are now in the same pay band (i.e., there are
no within-band promotions), and performance awards. The standard rating
period will be one year. The minimum rating period will be 120 days.
Pay-for-performance payouts can be in the form of increases to base
pay, cash bonuses and time off awards; the bonuses are not added to
base pay but, rather, are given as a lump sum bonus. Other awards, such
as Special Acts, will be retained separately from the pay-for-
performance payouts.
The system will have the flexibility to be modified, if necessary,
as more experience is gained under the project.
2. Performance Objectives
Performance objectives define a target level of activity, expressed
as tangible, measurable objective statements against which actual
achievement can be compared. These objectives will specifically
identify what is expected of the employee during the rating period and
will typically consist of three to ten results-oriented statements.
Employees are encouraged to participate in developing their performance
objectives with their supervisor at the beginning of the rating cycle.
These are to be reflective of the employee's duties/responsibilities
and pay band along with the mission/organizational goals and
priorities. Objectives will be reviewed annually and revised upon
changes in pay reflecting increased responsibilities commensurate with
pay increases. Supervisors will make the final decision for approving
their employee's performance objective. Use of generic one-size-fits-
all objectives will be avoided, as performance objectives are meant to
define an individual's specific responsibilities and expected
accomplishments. While generic objectives will be avoided, objectives
will be commensurate to the employees pay and employees at similar
positions in the pay band are expected to have objectives of similar
complexity, responsibility, and/or another defining characteristic.
Thus, exemplar, baseline, objectives will be developed and provided to
supervisors and employees to highlight appropriate performance
requirements at various pay levels. These exemplars will be used to
help define performance expectations commensurate to employee pay.
In contrast, performance elements as described in the next
paragraph will identify generic performance characteristics, against
which the accomplishment of objectives will be measured. As a part of
this demonstration project, training focused on overall organizational
objectives and the development of performance objectives will be held
for both supervisors and employees. Performance objectives may be
jointly modified, changed, or deleted as appropriate during the rating
cycle. Changes initiated by employees must be approved by their
supervisor. As a general rule, performance objectives should only be
changed when the employee successfully meets or exceeds the original
objectives or circumstances outside the employee's control prevent or
hamper the accomplishment of the original objectives. It is also
appropriate to change objectives when mission or workload shifts occur.
Objectives will not be changed when an employee's lack of performance
prevents or hinders successful performance.
3. Performance Elements
Performance elements define generic performance characteristics
that will be used to evaluate the employee's success in accomplishing
his/her performance objectives. The use of generic characteristics for
scoring purposes helps to ensure comparable scores are assigned while
accommodating diverse individual objectives. This pay-for-performance
system will utilize those performance elements provided in Appendix C;
as adapted from the system of performance elements implemented at other
DoD Labs designated as STRLs.
All elements are critical. A critical performance element is
defined as an attribute of job performance that is of sufficient
importance that performance below the minimally acceptable level
requires remedial action and may be the basis for removing an employee
from his/her position. Non-critical elements will not be used. Each of
the performance elements will be assigned a weight, which reflects its
importance in accomplishing an individual's performance objectives. A
minimum weight (expressed as a percentage) is set for each performance
element. The sum of the weights for all of the elements must equal 100.
[[Page 64476]]
A single set of performance elements will be used for evaluating
the annual performance of all ARI personnel covered by this plan. This
set of performance elements may evolve over time, based on experience
gained during each rating cycle. This evolution is essential to capture
the critical competencies that enable the workforce to meet individual
and organizational performance objectives. The evolving nature of
performance elements may be particularly necessary in an environment
where mission requirements, technology, and work processes are changing
at an increasingly rapid pace. Thus, the ARI Personnel Management Board
will annually review the set of performance elements and set them for
the entire organization before the beginning of the rating period. The
following is an initial set of performance elements:
(1) Technical Rigor
(2) Interpersonal Effectiveness
(3) Managing Time and Other Resources
(4) Driving Organizational Success
(5) Team Leadership
(6) Supervision/Leadership, and Equal Employment Opportunity (EEO).
All employees will be rated against the first four (Core)
performance elements. Team Leadership is mandatory for team leaders
(within this document ``team leader'' refers to non-supervisory team
leaders as determined by the OPM GS Leader Grade Evaluation Guide).
Supervision/Leadership, and Equal Employment Opportunity is
mandatory for all managers/supervisors. At the beginning of the rating
period, pay pool managers will review the objectives and weights
assigned to employees within the pay pool, to verify consistency and
appropriateness across the organization.
4. Performance Feedback and Formal Ratings
The most effective means of communicating job requirements,
performance goals, and desired results is person-to-person discussion
between supervisors and employees. Employees and supervisors alike are
expected to actively participate in these discussions to clarify
expectations and identify potential obstacles to meeting performance
goals. To the extent possible, employees should describe what they need
from their supervisors to support goal accomplishment. The timing of
performance feedback and discussions will vary based on the nature of
work performed, but at a minimum will occur formally at the beginning,
mid-point, and end of the rating period. If employees are unsure of
their performance goals or quality at any time, they are encouraged to
initiate discussions with their supervisor. In addition, supervisors
will initiate discussions at the earliest possible sign of unacceptable
performance or as needed to maintain successful performance. The
supervisor and employee will discuss job performance and
accomplishments in relation to the performance objectives and
performance elements. At least two reviews, normally the mid-point
review and annual review, will be documented as a formal progress
review. More frequent informal task-specific discussions may be
appropriate in certain circumstances. In cases where work is
accomplished by a team, team discussions regarding goals and
expectations may also be conducted as appropriate.
Employees will provide a summary of their accomplishments to their
supervisor at both the mid-point and end of the rating period and, at a
minimum, will highlight the three most important performance outcomes.
Space limitations may be imposed in the performance management system
to limit the length of the employee's self-summary of their
accomplishments. The goal of employee self-reports is to highlight
significant employee accomplishments rather than to describe job
processes at a granular level of detail.
At the end of the rating period and following a review of the
employee's accomplishments, the supervisor will rate each performance
element by assigning a score between 0 and 50. Supervisors will use
benchmark performance standards that describe the level of performance
associated with a score. Benchmark standards ensure the employee's
performance is accurately captured and ensures different supervisors
apply a similar rating standard and scoring approach to their employees
during the rating process. During the rating and point assignment
process, the supervisor reflects on the specific objectives for each
employee and rates the individual on each performance element using
specific descriptors of performance related to the benchmark
performance criteria. It should be noted these scores are not discussed
with the employee or considered final until scores for all employees
are reconciled and approved by the Pay Pool Manager. The element scores
will then be multiplied by the element-weighting factor to determine
the weighted score expressed to two decimal points. The weighted scores
for each element will then be totaled to determine the employee's
overall appraisal score and rounded to a whole number as follows: If
the digit to the right of the decimal is between five and nine, it
should be rounded to the next higher whole number; if the digit to the
right of the decimal is between one and four, it should be dropped.
For each performance element, a total, unweighted score of 10 or
above will result in a rating of acceptable. A total, unweighted score
of 9 or below will result in a rating of unacceptable, and requires the
employee be placed on a Performance Improvement Plan (PIP) within 30
days of the rating. An unweighted score of nine or below in a single
performance element also will result in a rating of unacceptable, and
requires the employee be placed on a PIP. An out-of-cycle rating of
record will be issued if the employee's performance improves to an
acceptable level at the conclusion of the PIP.
5. Unacceptable Performance
Informal employee performance reviews will be a continuous process
so that corrective action, to include placing an employee on a PIP, may
be taken at any time during the rating cycle. Whenever a supervisor
recognizes an employee's performance on one or more performance
elements is unacceptable, the supervisor will immediately inform the
employee. Efforts will be made to identify the possible reasons for the
unacceptable performance. An employee who is on a PIP is not eligible
to receive the general pay increase.
If an employee performs at an unacceptable level or has received an
unacceptable rating, a PIP will be provided to the employee as well as
an opportunity period for the employee to improve his/her performance.
The supervisor will identify the items/actions that need to be
corrected or improved, outline required time frames (generally 30 days)
for such improvement, and provide the employee with available
assistance as appropriate. Progress will be monitored during the PIP,
and all counseling/feedback sessions will be documented.
If the employee's performance is acceptable at the conclusion of
the PIP, the servicing CPAC should be contacted for additional
guidance. If a PIP ends prior to the end of the annual performance
cycle and the employee's performance improves to, and remains at, an
acceptable level, the employee is appraised again at the end of the
annual performance cycle. If the employee's performance deteriorates to
an unacceptable level in any element within two years from the
beginning of a PIP, follow-on actions may be initiated with no
additional opportunity to improve. If an employee's performance
[[Page 64477]]
is at an acceptable level for two years from the beginning of the PIP,
and performance once again declines to an unacceptable level, the
employee will be given an additional opportunity to improve before
management proposes follow-on actions.
If the employee fails to improve at the conclusion of the PIP, the
employee will be given notice of proposed appropriate action. This
action can include removal from the Federal service, placement in a
lower pay band with a corresponding reduction in pay (demotion),
reduction in pay within the same pay band, or change in position or
occupational family. In many situations, employees with an unacceptable
rating will not be permitted to remain at their current pay and may be
reduced in pay band.
Reductions in base pay within the same pay band or changes to a
lower pay band will be accomplished with a minimum of a five-percent
decrease in an employee's base pay.
Note: Nothing in this subsection will preclude action under 5
U.S.C. chapter 75 [Adverse Actions], when appropriate.
All relevant documentation concerning a reduction in pay or removal
based on unacceptable performance will be preserved and made available
for review by the affected employee or a designated representative. At
a minimum, the record will consist of a copy of the notice of proposed
personnel action, the employee's written reply, if provided, or a
summary when the employee makes an oral reply. Additionally, the record
will contain the written notice of decision and the reasons therefore
along with any supporting material (including documentation regarding
the opportunity afforded the employee to demonstrate improved
performance).
6. Reconciliation Process
Following the initial scoring of each employee by the supervisor, a
panel of rating officials and supervisors will meet in a structured
review and reconciliation process panel managed by the Pay Pool
Manager. In this step, each employee's performance objectives,
accomplishments, preliminary scores, and pay are compared. Through
discussion and consensus building, consistent and equitable ratings are
reached. There will not be a prescribed distribution of total scores.
The Pay Pool Manager will chair a final review with the rating
officials/supervisors to validate these ratings and resolve any
remaining scoring issues. If consensus on scoring cannot be reached for
one or more employees in this process, the Pay Pool Manager makes all
final decisions. IOPs will provide details on this process to employees
and supervisors.
Given the unique organizational structure of ARI, the
reconciliation process of employees who report directly to the ARI
Director may be different from the procedures described above. In those
cases, the ARI Director will review and resolve all ratings as pay pool
manager for those direct reports. Should the organization's structure
change to allow for a pay pool process comparable to the one previously
described, the procedures for the ARI Director's direct reports are
likely to change to incorporate pay pool panel participation and
reconciliation.
After the reconciliation process is complete, scores are finalized.
Payouts proceed according to each employee's final score and adjusted
base pay. Information pertaining to the reconciliation process will be
made available to all employees.
7. Pay Pools
ARI will have one or more pay pools, and each ARI employee will be
placed into one of these pools. Pay pools are combinations of
organizational elements that are defined for the purpose of determining
performance payouts under the pay-for-performance system. The next
paragraph provides the guidelines for determining pay pools. These
guidelines will normally be followed, but deviations may occur if there
is a compelling need. The rationale for any deviations will be
documented in writing, and final procedures will be published prior to
start of the rating period.
The ARI Director will establish pay pools. A pay pool should be
large enough to encompass a reasonable distribution of ratings but not
so large as to compromise rating consistency. Supervisory personnel
will be placed in a pay pool separate from subordinate non-supervisory
personnel. Neither the Pay Pool Manager nor supervisors within a pay
pool will recommend or set their own individual pay. Decisions
regarding the amount of the performance payout are based on the
established formal payout calculations.
Funds within a pay pool available for performance payouts are
calculated from anticipated pay increases under the existing system and
divided into two components, base pay and bonus. The funds within a pay
pool used for base pay increases are those that would have been
available from within-grade increases, quality step increases, and
promotions. This amount will be defined based on historical data and
will be set at no less than two percent of total adjusted base pay
annually. The funds available to be used for bonus payouts are funded
separately within the constraints of the organization's overall award
budget. This amount will be defined based on historical data and at no
less than one percent of total adjusted base pay annually. The pay pool
funding percentages are the same for all pay pools. The sum of these
two factors is referred to as the pay pool percentage factor.
The ARI Personnel Management Board will annually review the pay
pool funding and recommend adjustments to the ARI Director to ensure
cost discipline over the life of the demonstration project. The ARI
Director makes the final decision on pay pool funding.
8. Performance Payout Determination
The performance payout an employee will receive is based on the
total performance score from the pay for performance assessment
process. An employee will receive a performance payout as a percentage
of adjusted base pay. This percentage is based on the number of shares
that equates to an employee's final appraisal score. Shares will be
awarded on a continuum as follows:
[[Page 64478]]
[GRAPHIC] [TIFF OMITTED] TN22NO19.003
Fractional shares will be awarded for scores that fall between
these scores. For example, a score of 38 will equate to 1.8 shares, and
a score of 44 will equate to 2.4 shares.
The value of a share cannot be exactly determined until the rating
and reconciliation process is completed and scores for all employees
are finalized. The share value is expressed as a percentage. The
formula that computes the value of each share uses base pay rates and
is based on (1) the sum of the base pay of all employees in the pay
pool times the pay pool percentage factor, (2) the employee's base pay,
(3) the number of shares awarded to each employee in the pay pool, and
(4) the total number of shares awarded in the pay pool. This formula
assures that each employee within the pool receives a share amount
equal to other employees in the same pool who are at the same rate of
base pay and receive the same score. The formula is shown in Figure 3.
[GRAPHIC] [TIFF OMITTED] TN22NO19.017
An individual payout is calculated by first multiplying the shares
earned by the share value and multiplying that product by base pay. An
adjustment is then made to account for locality pay.
A pay pool manager is accountable for staying within pay pool
limits. The pay pool manager makes the final decision on base pay
increases and/or bonuses to individuals based on rater recommendation,
the final score, the pay pool funds available, and the employee's pay.
9. Base Pay Increases and Bonuses
The amount of money available for performance payouts is divided
into two components: Base pay increases and bonuses. The base pay and
bonus funds are based on the pay pool funding formula established
annually. Once the individual performance 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. The
payouts made to employees from the pay pool may be a mix of base pay
and bonus as determined by the rules set forth in this FRN and IOPs,
such that all the allocated funds are disbursed. To provide performance
incentives while ensuring cost discipline, base pay increases may be
limited or capped.
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 base pay in an assigned pay band, when the
mid-point rule applies (see below) or when the Significant
Accomplishment/Contribution rule applies (see below). Also, for
employees receiving retained rates above the applicable pay band
maximum, the entire performance payout will be in the form of a bonus
payment.
When capped, the payout an employee receives will be in the form of
a bonus versus the combination of base pay and bonus. Bonuses are cash
payments and are not part of the base pay for any purpose (e.g., lump
sum payments of annual leave on separation, life insurance, and
retirement). The maximum base pay rate under this personnel
demonstration project will be the unadjusted base pay rate of GS-15/
step 10, except for employees in Pay Band VI of the E&S occupational
family.
Based on pay pool operating procedures and business rules, the
organization may re-allocate a portion (up to the maximum possible
amount) of the unexpended base pay funds. This re-allocation will be
determined by the Pay Pool Manager. 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 total performance payout is unchanged.
This re-allocation could be required for a number of reasons to include
the use of re-allocation of to reduce extreme pay-for-performance gaps.
In addition, the pay pool manager may request approval from the PMB
for use of an Extraordinary Achievement Recognition. Such 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.
The funds available for an Extraordinary Achievement Recognition are
separately funded within the constraints of the
[[Page 64479]]
organization's budget. Extraordinary Achievement Recognition, if
warranted, will be determined by the Review and Reconciliation Panel,
and the pay pool manager will provide the request to the PMB who will
make the final decision based on the merits and funds available.
10. Mid-Point Rule
To provide added performance incentives as an employee progresses
through a pay band, a mid-point rule will be used to determine base pay
increases. The mid-point rule dictates that any employee must receive a
score of 30 or higher for his/her base pay to cross the mid-point of
the base pay range for his/her pay band. Also, once an employee's base
pay exceeds the mid-point, the employee must receive a score of 30 or
higher to receive any additional base pay increases. Any amount of an
employee's performance payout, not paid in the form of a base pay
increase because of the mid-point rule, will be paid as a bonus. This
rule effectively raises the standard of performance expected of an
employee once the mid-point of a band is crossed. This applies to all
employees in every occupational family and pay band. The performance
rating of 30 is set as an initial value and may be changed by the PMB,
as necessary, with a goal of continuously increasing employee and
organizational performance.
11. Significant Accomplishment/Contribution Rule
The purpose of this rule is to maintain cost discipline while
ensuring that employee payouts are in consonance with accomplishments
and levels of responsibility. The rule will apply only to employees in
E&S Pay Band III whose base pay would fall within the top 15 percent of
the band. For employees meeting these criteria, the following
provisions will apply:
(1) If an employee's score falls in the top third of scores
received in his/her pay pool, he/she will receive the full allowable
base pay increase portion of the performance payout. The balance of the
payout will be paid as a lump sum bonus.
(2) If an employee's score falls in the middle third of scores
received in his/her pay pool, the base pay increase portion will not
exceed one percent of base pay. The balance of the payout will be paid
as a lump sum bonus.
(3) If an employee's appraisal score falls in the bottom third of
scores received in his/her pay pool, the full payout will be paid as a
lump sum bonus.
12. Awards
In addition to the annual performance evaluation and payout
process, the ARI Director may recognize outstanding individual or group
achievements as they occur. Awards may include, but are not limited to,
honorary, special act or on-the-spot monetary awards, and time-off
awards. The ARI Director may re-delegate this authority. The ARI
Director will have the authority to grant special act awards to covered
employees of up to $10,000 IAW the criteria of AR 672-20, Incentive
Awards. The funds available to be used for traditional 5 U.S.C. awards
are separately funded within the constraints of the organization's
budget.
13. General Pay Increase--Limitations for Unacceptable Performance
Employees on a PIP at the time pay determinations are made do not
receive performance payouts or the annual general pay increase. An
employee who receives an unacceptable rating of record will not receive
any portion of the general pay increase until such time as his/her
performance improves to the acceptable level and remains acceptable for
at least 90 days. When the employee has performed acceptably for at
least 90 days, the general pay increase will not be retroactive but
will be granted at the beginning of the next pay period after the
supervisor authorizes its payment. These actions may result in a base
pay that is identified in a lower pay band. This occurs because the
minimum rate of base pay in a pay band increases as the result of the
general pay increase (5 U.S.C. 5303). This situation (a reduction in
band level with no reduction in pay) will not be considered an adverse
action, nor will band retention provisions apply.
14. Retention Counteroffers
The Director, working with the PMB, 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. Further details will be published in the IOP. 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.
15. Grievances
An employee may grieve the performance rating/score received under
the pay-for-performance system. Non-bargaining unit employees, and
bargaining unit employees covered by a negotiated grievance procedure
that does not permit grievances over performance ratings, must file
under administrative grievance procedures. Bargaining unit employees
whose negotiated grievance procedures cover performance rating
grievances must file under those negotiated procedures.
16. Adverse Actions
Except where specifically waived or modified in this plan, adverse
action procedures under 5 CFR part 752 remain unchanged.
D. Hiring Authority
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 laboratory 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. Delegated Examining
Competitive service positions will be filled through Merit
Staffing, and through direct-hire authority or under Delegated
Examining. Section 1108 of the NDAA for FY 2009, as amended by section
1103 of the NDAA for FY 2012, provides for delegation of direct-hire
authority for qualified candidates with an advanced degree to
scientific and engineering positions within STRL
[[Page 64480]]
laboratories designated under section 1105 of NDAA FY2010. Direct-hire
authority will be exercised in accordance with the requirements of the
delegation of authority.
When there are no more than 15 qualified applicants and no
preference eligibles, all eligible applicants are immediately referred
to the selecting official without rating and ranking. Rating and
ranking may occur when the number of qualified candidates exceeds 15 or
there is a mix of preference and non-preference applicants. Category
rating may 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 will be detailed in the IOP.
Statutes and regulations covering veterans' preference will be
observed in the selection process when rating and ranking are required.
Veterans with preference will be referred ahead of non-veterans with
the same score/category.
3. Direct Hire
ARI will use the direct-hire authorities authorized by section 1108
of the NDAA for FY 2009, as amended by section 1103 of the NDAA for FY
2012, the direct hire authorities published in 79 FR 43722, and the
direct hire authorities in 10 U.S.C. 2358a, as appropriate, 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 technicians; and
(4) Student candidates enrolled in a program of instruction leading
to a bachelors or advanced degree in a STEM discipline.
In addition, other Direct Hire authorities, documented in FRNs and
available to all DoD STRL laboratories, may be utilized, as
appropriate.
4. 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 Hires). For all other actions, the
nature of action codes and legal authority codes prescribed by OPM,
DoD, or DA will continue to be used.
5. Revisions to Term Appointments
ARI will continue to have career and career-conditional
appointments and temporary appointments not to exceed one year. These
appointments will use existing authorities and entitlements. Under the
demonstration project, ARI will have the added authority to hire
individuals under a modified term appointment, and the Flexible Length
and Renewable Term Technical Appointments authorized by section
1109(b)(1) of the NDAA for FY 2016, as amended by section 1106 of the
NDAA for FY 2019, and published in 82 FR 43339.
Employees hired under the modified term appointment authority are
in a non-permanent status in the competitive service for up to five
years. The ARI Director is authorized to extend a modified term
appointment for up to one additional year. Employees on modified term
appointments may be eligible for conversion to career conditional
appointments. To be converted, the employee must (1) have been selected
for the term position under competitive procedures, with the
announcement specifically stating that the individual(s) selected for
the term position may be eligible for conversion to a career-
conditional appointment at a later date; (2) have served two years of
continuous service in the term position; (3) be selected under merit
promotion procedures for the permanent position; and (4) be performing
at the acceptable level of performance with a current score of 30 or
greater.
The Flexible Length and Renewable Term Technical Appointment
authority will allow ARI to appoint qualified candidates who are not
currently DoD civilian employees, or who are DoD civilian employees in
term appointments, into any scientific, technical, engineering, and
mathematic positions, including technicians, for a period of more than
one year but not more than six years. The appointment of any individual
under this authority may be extended without limit in up to six year
increments at any time during any term of service under conditions set
forth by the ARI Director. These appointments will allow ARI to
dynamically shape the workforce to respond to mission requirements.
Consistent with section 1109(b)(1) of the NDAA for FY 2016, as amended,
employees hired under this provision will be counted as fractional
employees of the laboratory for the purpose of determining workforce
size of the laboratory. All waivers published in 82 FR 43339 apply to
this demonstration project.
Employees appointed under Flexible Length and Renewable Term
Technical Appointments may be eligible for noncompetitive conversion to
a permanent appointment if the job announcement clearly states the
possibility of being made permanent, in addition to any other provision
in the STRL's modified term appointment authority. Unless otherwise
eligible for a noncompetitive hiring authority, positions filled under
this authority must be competed. Job opportunity announcements must
clearly identify the type of appointment and the expected duration of
initial appointment (up to six years). Appointees will also be afforded
the opportunity to apply for vacancies that are otherwise limited to
``status'' candidates as described in 82 FR 43339.
Employees serving under term appointments will be covered by the
plan's pay-for-performance system.
6. Extended Probationary or Trial Period
The current two-year probationary period (Pub. L. 114-92) for DoD
employees will be extended to three years for all newly hired permanent
career-conditional employees. Trial periods for term appointments will
also be extended to three years. The purpose of extending the
probationary period is to allow supervisors an adequate period of time
to fully evaluate an employee's ability to complete cycles of work and
to fully assess an employee's contribution and conduct. The three-year
probationary period will apply only to new hires subject to a
probationary period.
Aside from extending the time period for probationary or trial
periods, all other features of the current probationary and trial
period are retained including the potential to remove an employee
without providing the full substantive and procedural rights afforded a
non-probationary employee. Any employee appointed prior to the
implementation date will not be affected.
[[Page 64481]]
7. Termination of Probationary Employees
Probationary employees may be terminated when they fail to
demonstrate proper conduct, technical competency, and/or acceptable
performance for continued employment, and for conditions arising before
employment. When a supervisor decides to terminate an employee during
the probationary period because his/her work performance or conduct is
unacceptable, the supervisor will terminate the employee's services by
written notification stating the reasons for termination and the
effective date of the action. The information in the notice will, at a
minimum, consist of the supervisor's conclusions as to the inadequacies
of the employee's performance or conduct, or those conditions arising
before employment that support the termination.
8. Supervisory Probationary Periods
Supervisory probationary periods will be consistent with 5 CFR part
315, subpart I. Existing Federal employees who are competitively
selected or reassigned to a supervisory position will be required to
complete a two-year supervisory probationary period for initial
appointment to a supervisory position. Newly appointed supervisors, new
to Federal service, must complete the probationary periods in
accordance with section III.D.6 of this FRN for Extended Probationary
Periods. Consistent with 5 U.S.C. 3321, if, during this supervisory
probationary period, the decision is made to return the employee to a
non-supervisory position for reasons related to supervisory
performance, the employee will be returned to a position comparable in
pay and job duties to the position from which they were originally
promoted or reassigned.
Supervisors hired, new to the Government, who have not demonstrated
successful performance in a lower position at ARI and who do not
successfully complete their probationary period may be terminated when
they fail to demonstrate proper conduct, technical competency, and/or
acceptable performance for continued employment, and for conditions
arising before employment. As with non-supervisors and consistent with
5 U.S.C. 3321, a supervisor who is not performing at an acceptable
level may be moved to another position in a different pay band. Such a
move would result in a reduction of pay of no less than 6 percent or to
the top of the lower pay band, whichever reduction is greater.
The ARI Director may place the supervisor on a Performance
Improvement Plan (PIP) at any time during the supervisory probationary
period to help improve performance to a successful level.
9. Volunteer Emeritus Program (VEP)
The ARI Director will have the authority to offer former Federal
employees who have retired or separated from the Federal service,
voluntary assignments in ARI. VEP assignments are not considered
``employment'' by the Federal government. Thus, such assignments do not
affect an employee's entitlement to buyouts or severance payments based
on an earlier separation from Federal service. The VEP 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 VEP may not be used to replace
or substitute for work performed by civilian employees occupying
regular positions required to perform the ARI's mission.
To be accepted into the VEP, a candidate must be recommended by an
ARI manager to the ARI Director. Everyone who applies is not entitled
to participate in the program. The 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 and the ARI
Director. The agreement will be reviewed by the servicing legal office.
The agreement must be finalized before the assumption of duties and
will include:
(1) 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;
(2) a statement that the volunteer will be considered a federal
employee for the purpose of:
(a) 18 U.S.C. 201, 203, 205, 207, 208, 209, 603, 606, 607, 643,
654, 1905, and 1913;
(b) 31 U.S.C. 1343, 1344, and 1349(b);
(c) 5 U.S.C. chapters 73 and 81;
(d) The Ethics in Government Act of 1978;
(e) 41 U.S.C. chapter 21;
(f) 28 U.S.C. chapter 171 (tort claims procedure), and any other
Federal tort liability statute;
(g) 5 U.S.C. 552a (records maintained on individuals); and
(3) The volunteer's work schedule;
(4) The length of agreement (defined by length of project or time
defined by weeks, months, or years);
(5) The support to be provided by ARI (travel, administrative,
office space, supplies);
(6) The volunteer's duties;
(7) 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 VEP;
(8) A provision allowing either party to void the agreement with 10
working days written notice;
(9) The level of security access required (any security clearance
required by the assignment will be managed by ARI while the volunteer
is a participant in the VEP);
(10) A provision that any written products prepared for publication
that are related to VEP participation will be submitted to the ARI
Director for review and must be approved prior to publication;
(11) A statement that the volunteer accepts accountability for loss
or damage to Government property occasioned by the volunteer's
negligence or willful action;
(12) A statement that the volunteer's activities on the premises
will conform to the ARI's regulations and requirements;
[[Page 64482]]
(13) 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 VEP participant or any non-Federal entities. VEP
participants will handle all non-public information in a manner that
reduces the possibility of improper disclosure.
(14) A statement that the volunteer agrees to disclose any
inventions made in the course of work performed at ARI. The ARI
Director will have the option to obtain title to any such invention on
behalf of the U.S. Government. Should the 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.
(15) A statement that the VEP 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
(16) A statement that the VEP participant must receive post-
government employment advice from a DoD ethics counselor at the
conclusion of program participation. VEP participants are deemed
Federal employees for purposes of post-government employment
restrictions.
E. Internal Placement
1. Promotion
A promotion is the movement of an employee to a higher pay band in
the same occupational family or to another pay band in a different
occupational family, wherein the band in the new family has a higher
maximum base pay than the band from which the employee is moving.
Positions with known promotion potential to a specific band within an
occupational family will be identified when they are filled. Movement
from one occupational family to another will depend upon individual
competencies, qualifications, and the needs of the organization.
Progression within a pay band is based upon performance based pay
increases; as such, these actions are not considered promotions and are
not subject to the provisions of this section. Except as specified
below, promotions will be processed under competitive procedures in
accordance with Merit System Principles and requirements of the local
merit promotion plan.
To be promoted competitively or non-competitively from one band to
the next, an employee must meet the minimum qualifications for the job
and have a current performance rating of 30 or better, or equivalent
under a different performance appraisal system. The minimum performance
rating of 30 is set as an initial value and may be changed by the PMB,
as necessary, with a goal of continuously increasing employee and
laboratory performance. If an employee does not have a current
performance rating, the employee will be treated the same as an
employee with an ``acceptable'' rating as long as there is no
documented evidence of unacceptable performance.
2. Reassignment
A reassignment is the movement of an employee from one position to
a different position within the same occupational family and pay band
or to another occupational family and pay band wherein the band in the
new family has the same maximum base pay. The employee must meet the
qualifications requirements for the occupational family and pay band.
3. Demotion or Placement in a Lower Pay Band
A demotion is a placement of an employee into a lower pay band
within the same occupational family or placement into a pay band in a
different occupational family with a lower maximum base pay. Demotions
may be for cause (performance or conduct) or for reasons other than
cause (e.g., erosion of duties, reclassification of duties to a lower
pay band, application under competitive announcements, at the
employee's request--if approved, placement actions resulting from
reduction-in-force ((RIF) procedures).
4. Simplified Assignment Process
Today's environment of downsizing and workforce fluctuations
mandates that the organization have maximum flexibility to assign
duties and responsibilities to individuals. Pay banding can be used to
address this need, as it enables the organization to have maximum
flexibility to assign an employee with no change in base pay, within
broad descriptions, consistent with the needs of the organization and
the individual's qualifications and 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
current position description. For instance, a Research Psychologist
could be assigned to any project, task, or function requiring similar
expertise. Likewise, a manager/supervisor 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. Details and Expanded Temporary Promotions
Employees may be detailed or temporarily promoted to a position in
the same band (requiring a different level of expertise and
qualifications) or lower pay band (or its equivalent in a different
occupational family) or to a position in a higher band for up to two
years. Details and temporary promotions may be determined by a
competitive or a non-competitive process.
6. Exceptions to Competitive Procedures for Assignment to a Position
The following actions are excepted from competitive procedures:
(1) Re-promotion to a position which is in the same pay band or GS
equivalent and occupational family as the employee previously held on a
permanent basis within the competitive service.
(2) 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.
(3) A position change permitted by RIF procedures.
(4) Promotion without current competition when the employee was
appointed through competitive procedures to a position with a
documented career ladder.
(5) A temporary promotion, or detail to a position in a higher pay
band, of two years or less.
(6) A promotion due to the reclassification of positions based on
accretion (addition) of duties.
(7) A promotion resulting from the correction of an initial
classification error or the issuance of a new classification standard.
(8) Consideration of a candidate who did not receive proper
consideration in a competitive promotion action.
F. Pay Setting
1. General
Pay administration policies will be established by the PMB. These
policies will be exempt from Army Regulations
[[Page 64483]]
or local pay fixing policies. Employees whose performance is acceptable
will receive the full annual general pay increase and the full locality
pay. The ARI Director shall have delegated authority to may make full
use of recruitment, retention, and relocation payments as currently
provided for by OPM.
Grade and pay retention will follow current law and regulations at
5 U.S.C. 5362, 5363, and 5 CFR part 536, except as waived or modified
in Section IX, the waiver section of this plan. The ARI Director may
also grant pay retention to employees who meet general eligibility
requirements, but do not have specific entitlement by law, provided
they are not specifically excluded.
2. Pay and Compensation Ceilings
An demonstration project employee's total monetary compensation
paid in a calendar year may not exceed the base pay of Level I of the
Executive Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 530
subpart B. In addition, each pay band will have its own pay ceiling,
just as grades do in the GS system. Base pay rates for the various pay
bands will be directly keyed to the GS rates, except as noted for the
Pay Band VI of the Engineer and Scientist occupational family. Other
than where retained rate applies, base pay will be limited to the
maximum base pay payable for each pay band.
3. Pay Setting for Appointment
For initial appointments to Federal service, the individual's pay
may be set at the lowest base pay in the pay band or anywhere within
the band level consistent with the special qualifications of the
individual, specific organizational requirements, the unique
requirements of the position, or other compelling reason. These special
qualifications may be in the form of education, training, experience or
any combination thereof that is pertinent to the position in which the
employee is being placed. Guidance on pay setting for new hires will be
established by the PMB and documented in IOPs.
Highest Previous Rate (HPR) may be considered in placement actions
authorized under rules similar to the HPR rules in 5 CFR 531.221.
Request to use HPR must be made to the PMB and is subject to policies
established by the PMB, as approved by the ARI Director. To maintain
consistent application of pay setting decisions, the PMB will collect
and track pay setting data, qualifications, and other relevant
information.
4. Pay Setting for Promotion
The minimum base pay increase upon promotion to a higher pay band
will be six percent or the minimum base pay rate of the new pay band,
whichever is greater. The maximum amount of a pay increase for a
promotion is 20 percent but will not normally exceed $10,000 or other
such amount as established by the Personnel Management Board. The
maximum base pay increase for promotion may be exceeded when necessary
to allow for the minimum base pay increase. For employees assigned to
occupational categories and geographic areas covered by special rates,
the minimum base pay rate in the pay band to which promoted is the
minimum base pay for the corresponding special rate or locality rate,
whichever is greater. For employees covered by a staffing supplement
(described in III.F.9.), the demonstration staffing supplement adjusted
pay is considered base pay for promotion calculations. When a temporary
promotion is terminated, the employee's pay entitlements will be re-
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 PMB. In
no case may those adjustments increase the base pay for the position of
record beyond the applicable pay range maximum base pay rate.
5. Pay Setting for Reassignment
A reassignment may be effected without a change in base pay.
However, a base pay increase may be granted where a reassignment
significantly increases the complexity, responsibility, authority, or
for other compelling reasons. Such an increase is subject to the
specific guidelines established by the PMB.
6. Pay Setting for Demotion or Placement in a Lower Pay Band
Employees demoted for cause (performance or conduct) are not
entitled to pay retention and will receive a minimum of a five percent
decrease in base pay. Employees demoted for reasons other than cause
(e.g., erosion of duties, reclassification of duties to a lower pay
band, or placement actions resulting from RIF procedures) may be
entitled to pay and grade retention in accordance with the provisions
of 5 U.S.C. 5363 and 5 CFR part 536, except as waived or modified in
Section IX of this plan.
Employees who receive an unacceptable rating or who are on a PIP at
the time pay determinations are made do not receive performance payouts
or the general pay increase. This action may result in a base pay that
is identified in a lower pay band. This occurs because the minimum rate
of base pay in a pay band increases as the result of the general pay
increase (5 U.S.C. 5303). This situation (a reduction in band level
with no reduction in pay) will not be considered an adverse action, nor
will band retention provisions apply.
A supervisor who fails to successfully complete a supervisory
probationary period will no longer receive a supervisory pay adjustment
(supervisory differential/adjustment).
7. Supervisory and Team Leader Pay Adjustments
Supervisory and team leader pay adjustments may be approved by the
ARI Director at his/her discretion, based on the recommendation of the
PMB, to compensate employees with supervisory or team leader
responsibilities. Supervisory and team leader pay adjustments are a
tool that may be implemented at the discretion of the ARI Director and
are not to be considered an employee entitlement due solely to his/her
position as a supervisor or team leader. Only employees in supervisory
or team leader positions as defined by the OPM GS Supervisory Guide or
GS Leader Grade Evaluation Guide may be considered for the pay
adjustment. These pay adjustments are funded separately from
performance pay pools. These pay adjustments are increases to base pay,
ranging up to 10 percent of that pay rate for supervisors and for team
leaders. Pay adjustments are subject to the constraint that the
adjustment may not cause the employee's base pay to exceed the pay band
maximum base pay. Criteria to be considered in determining the pay
increase percentage include:
(1) Needs of the organization to attract, retain, and motivate
high-quality supervisors/team leaders;
(2) Budgetary constraints;
(3) Years and quality of related experience;
(4) Relevant training;
(5) Performance appraisals and experience as a supervisor/team
leader;
(6) Unique requirements of a specific position or level of
complexity compared to other positions of a similar nature;
(7) Organizational level of position; and
(8) Impact on the organization.
A pay adjustment may be considered under the following conditions:
[[Page 64484]]
(1) New supervisory/team leader positions will have their initial
rate of base pay set within the pay range of the applicable pay band
and rules established by the PMB. Request for initial rate of pay will
be made to the PMB and approved by the ARI Director or delegated
official. This rate of pay may include a pay adjustment determined by
using the ranges and criteria outlined above.
(2) A career employee selected for a supervisory/team leader
position may also be considered for a base pay adjustment. If a
supervisor/team leader is already authorized a base pay adjustment and
is subsequently selected for another supervisor/team leader position,
then the base pay adjustment will be re-determined. Upon initial
conversion into the demonstration project into the same or
substantially similar position, supervisors/team leaders will be
converted at their existing base rate of pay and will not be eligible
for a base pay adjustment.
(3) The supervisory/team leader pay adjustment will be reviewed
annually, or more often as needed, and may be increased or decreased by
a portion or by the entire amount of the supervisory/team leader pay
adjustment based upon the employee's performance appraisal score for
the performance element, Team Project Leadership or Supervision/EEO,
needs of the organization, and/or criteria outlined above. If the
entire portion of the supervisory/team leader pay adjustment is to be
decreased, the initial dollar amount of the supervisory/team leader pay
adjustment will be removed. A decrease to the supervisory/team leader
pay adjustment as a result of the annual review or when an employee
voluntarily leaves a position is not an adverse action and is not
subject to appeal.
8. Supervisory/Team Leader Pay Differentials
Supervisory and team leader pay differentials may be used by the
ARI Director to provide an incentive and reward supervisors and team
leaders. Supervisory and team leader pay differentials are a tool that
may be implemented at the discretion of the ARI Director and is not to
be considered an entitlement due to an employee solely due to their
position as a supervisor or team leader. Pay differentials are not
funded from performance pay pools. A pay differential is a cash
incentive that may range up to 10 percent of base pay for supervisors
and for team leaders. It is paid on a pay period basis with a specified
not-to-exceed (NTE) of one year or less and is not included as part of
the base pay. Criteria to be considered in determining the amount of
the pay differential are the same as those identified for Supervisory/
Team Leader Pay Adjustments.
The pay differential may be considered, either during conversion
into or after initiation of the demonstration project. The differential
must be terminated if the employee is removed from a supervisory/team
leader position, regardless of cause.
After initiation of the demonstration project, all personnel
actions involving a supervisory/team leader differential will require a
statement signed by the employee acknowledging that the differential
may be terminated or reduced at the discretion of the ARI Director. The
termination or reduction of the differential is not an adverse action
and is not subject to appeal.
9. Staffing Supplements
Employees assigned to occupational categories and geographic areas
covered by special rates will be entitled to a staffing supplement if
the maximum adjusted base pay for the banded GS grades (i.e., the
maximum GS locality rate) to which assigned is a special rate that
exceeds the maximum GS locality rate for the banded grades. Specific
provisions will be described in IOPs.
G. Employee Development
1. Expanded Developmental Opportunity Program
The Expanded Developmental Opportunity Program will be available to
all demonstration project employees. Expanded developmental
opportunities complement existing developmental opportunities such as
long-term training; rotational job assignments; developmental
assignments to ARI, Army, or DoD; and self-directed study via
correspondence courses, local colleges, and universities. Each
developmental opportunity must result in a product, service, report, or
study that will benefit ARI or customer organization as well as
increase the employee's individual effectiveness. The PMB will provide
written guidance for employees on application procedures and develop a
process that will be used to review and evaluate applicants for
development opportunities. These expanded developmental opportunities
may be made available when there is a critical skill, need, or gap that
must be filled for organizational success. Determinations for
sabbaticals and critical skills training shall be made based on the
needs of ARI and the relationship to the research mission, merit,
organization fill rates, current, near- and mid-term workload
requirements, budget, and employee performance scores.
(1) Sabbatical. The ARI Director has the authority to grant paid or
unpaid sabbaticals to all career employees. The purpose of a sabbatical
will be to permit employees to engage in study or uncompensated work
experience that will benefit the organization and contribute to the
employee's development and effectiveness. Each sabbatical must result
in a product, service, report, or study that will benefit the ARI
mission as well as increase the employee's individual effectiveness.
Various learning or developmental experiences may be considered, such
as research, self-directed or guided study, and on-the-job work
experience. Limitations and eligibility requirements for sabbaticals
will be published in the IOP. Employees approved for a paid sabbatical
must sign a service obligation agreement to continue in service in ARI
for a period of three times the length of the sabbatical. If an
employee voluntarily leaves ARI before the service obligation is
completed he/she is liable for repayment of expenses incurred by ARI
that are associated with the sabbatical. Expenses do not include salary
costs. The ARI Director has the authority to waive this requirement.
Criteria for such waivers will be addressed in the operating
procedures. Specific procedures will be developed for processing
sabbatical applications upon implementation of the demonstration
project.
(2) Critical Skills Training. The ARI Director has the authority to
approve academic degree training. Training is an essential component of
an organization that requires continuous acquisition of advanced and
specialized knowledge. Degree training is also a tool for maintaining
required knowledge and skills critical to the present and future
requirements of the organization. Degree or certificate payment may not
be authorized where it would result in a tax liability for the employee
without the employee's express and written consent. Any variance from
this policy must be rigorously determined and documented. Guidelines
will be developed to ensure a fully competitive approval process for
expanded critical skills training. Employees approved for degree
training must sign a service obligation agreement to continue service
in the ARI for a period three times the length of the training period
commencing after the completion of the entire degree program. If an
employee voluntarily leaves ARI before the service obligation is
completed, he/she is liable for repayment of expenses incurred by
[[Page 64485]]
ARI that are related to the critical skills training. Expenses do not
include salary costs. The ARI Director has the authority to waive this
requirement. Criteria for such waivers will be addressed in the
operating procedures.
IV. Implementation Training
Critical to the success of the demonstration project is the
training developed to promote understanding of the broad concepts and
finer details needed to implement and successfully execute this
project. Training will be tailored to address employee concerns and to
encourage comprehensive understanding of the demonstration project.
Training will be required both prior to implementation and at various
times during the life of the demonstration project.
A training program will begin prior to implementation and will
include modules tailored for employees, supervisors, and administrative
staff. Typical modules are:
(1) An overview of the demonstration project personnel system.
(2) How employees are converted into and out of the system.
(3) Pay banding.
(4) The pay-for-performance system.
(5) Defining performance objectives.
(6) How to assign weights to performance elements.
(7) Assessing performance and giving feedback.
(8) New position descriptions.
(9) Demonstration project administration and formal evaluation.
Various types of training are being considered, including videos,
video-teleconference tutorials, and train-the-trainer concepts. To the
extent possible, materials already developed from other STRLs will be
utilized when appropriate to reduce implementation cost and to maintain
consistency in application of similar procedures across laboratories.
V. Conversion
A. Conversion to the Demonstration Project
Conversion from current GS grade and pay into the new pay band
system will be accomplished during implementation of the demonstration
project. Initial entry into the demonstration project will be
accomplished through a full employee-protection approach that ensures
each employee an initial place in the appropriate pay band without loss
of pay on conversion.
Under the GS pay structure, employees progress through their
assigned grade in step increments. Since this system is being replaced
under the demonstration project, employees will be awarded that portion
of the next higher step they have completed up until the effective date
of conversion. As under the current system, supervisors will be able to
withhold these partial step increases if the employee's performance is
below an acceptable level of competence.
Rules governing WGIs will continue in effect until conversion.
Adjustments to the employee's base salary for WGI equity will be
computed as of the effective date of conversion. WGI equity will be
acknowledged by increasing base pay by a prorated share based upon the
number of full weeks an employee has completed toward the next higher
step. Payment will equal the value of the employee's next WGI times the
proportion of the waiting period completed (weeks completed in waiting
period/weeks in the waiting period) at the time of conversion.
Employees at step 10, or receiving retained rates, on the day of
implementation will not be eligible for WGI equity adjustments since
they are already at or above the top of the step scale. Employees
serving on retained grade will receive WGI equity adjustments provided
they are not at step 10 or receiving a retained rate.
Employees who enter the demonstration project after initial
implementation by lateral transfer, reassignment, or realignment will
be subject to the same pay conversion rules as above. 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.
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 each
project employee must be converted back to the GS system, the following
procedures will be used to convert the employee's project pay band to a
GS-equivalent grade and the employee's 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 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
from 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 pay band corresponding to a single GS grade is
converted to that grade. An employee in a pay band corresponding to two
or more grades is converted to one of those grades according to the
following rules:
(1) 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.
(2) 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.
(3) 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 pay band. If the employee's adjusted rate equals or exceeds
step four rate of the second highest grade, the employee is converted
to that grade.
(4) This process is repeated for each successively lower grade in
the band until a grade is found in 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.
(5) 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
[[Page 64486]]
since that time the employee has undergone a reduction in band or
accepted a lower grade/band position.
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 GS rate
of pay in accordance with the following rules:
(1) 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.
(2) An employee's adjusted rate of basic pay under the 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.)
(3) 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.)
(4) 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).
3. E&S Pay Band III Employees
An employee in Pay band III of the E&S Occupational family will
convert out of the demonstration project at no higher than the GS-13,
step 10 level. ARI, in consultation with the CPAC, will develop a
procedure to ensure that employees entering E&S Pay band 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. These procedures will be documented in IOPs.
4. E&S Pay Band VI Employees
E&S Pay Band VI Employees: An employee in Pay Band VI of the E&S
occupational family will convert out of the demonstration project at
the GS-15 level. Procedures will be documented in IOPs to ensure that
employees entering Pay Band VI understand that if they leave the
demonstration project and their adjusted base pay under the
demonstration project exceeds the highest applicable GS-15, step 10
rate, there is no entitlement to retained pay. However, consistent with
79 FR 43722, July 28, 2014, pay retention may be provided to SSTM
members under criteria established by the PMB (and approved by the
Director) who are impacted by a reduction in force, work realignment,
or other planned management action that would necessitate moving the
incumbent to a position in a lower pay band within the STRL. Pay
retention may also be provided under criteria established when an SES
or ST employee is placed in a SSTM position as a result of reduction in
force or other management action. SSTM positions not entitled to pay
retention above the GS-15, step 10 rate will be deemed to be the rate
for GS-15, step 10. For those Pay Band VI employees paid below the
adjusted GS-15, step 10 rate, the converted rates will be set in
accordance with paragraph 2.
5. Employees With Band or Pay Retention
(1) 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 2-year limit on grade retention
in 5 U.S.C. 5382.
(2) If an employee is retaining rate under the demonstration
project, the employee's GS-equivalent grade is the highest grade
encompassed in his or her band level. ARI will coordinate with 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).
C. Personnel Administration
All personnel laws, regulations, and guidelines not waived by this
plan will remain in effect. Basic employee rights will be safeguarded
and Merit System Principles will be maintained. Servicing CPAC(s) will
continue to process personnel-related actions and provide consultative
and other appropriate services.
D. Automation
ARI will use the DoD approved automated personnel system for the
processing of personnel-related data. Payroll servicing will continue
from the respective payroll offices.
An automated tool or other appropriate procedures will be used to
support computation of performance related pay increases and awards and
other personnel processes and systems associated with this project.
E. Revision
Constant assessment and refinement is needed to maximize the
effectiveness of the system. Modifications may be made from time to
time as experience is gained, results are analyzed, and conclusions are
reached on how the new system is working. Modifications will be made in
accordance with the provisions of DoDI 1400.37, or applicable
superseding instructions.
VI. Project Duration
Public Law 103-337 removed any mandatory expiration date for this
demonstration project. ARI, DA, and DoD will ensure this project is
evaluated for the first five years after implementation in accordance
with 5 U.S.C. 4703. Modifications to the original evaluation plan or
any new evaluation will ensure the project is evaluated for its
effectiveness, its impact on mission, and any potential adverse impact
on any employee groups.
VII. Evaluation Plan
A. Overview
Chapter 47 of 5 U.S.C. requires that an evaluation be performed to
measure the effectiveness of the demonstration project, and its impact
on improving public management. A comprehensive evaluation plan for the
entire demonstration program, originally covering 24 DoD laboratories,
was developed by a joint OPM/DoD Evaluation Committee in 1995. This
[[Page 64487]]
plan was submitted to the Office of Defense Research & Engineering and
was subsequently approved. The main purpose of the evaluation is to
determine whether the waivers granted result in a more effective
personnel system and improvements in ultimate outcomes (i.e.,
organizational effectiveness, mission accomplishment, and customer
satisfaction). That plan, while useful, is dated and does not fully
afford the laboratories the ability to evaluate all aspects of the
demonstration project in a way that fully facilitates assessment and
effective modification based on actionable data. Therefore, in
conducting the evaluation ARI will ensure USD(R&E) evaluation
requirements are met in addition to applying knowledge gained from
other DoD laboratories and their evaluations to ensure a timely, useful
evaluation of the demonstration project.
B. 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
A. Cost Discipline
An objective of the demonstration project is to ensure in-house
cost discipline. A baseline will be established at the start of the
project and labor expenditures will be tracked yearly. Implementation
costs (including project development, automation costs, step buy-in
costs, and evaluation costs) are considered one-time costs and will not
be included in the cost discipline.
The Personnel Management Board will track personnel cost changes
and recommend adjustments if required to achieve the objective of cost
discipline.
B. Developmental Costs
Costs associated with the development of the personnel
demonstration project include software automation, training, and
project evaluation. All funding will be provided through the
organization's budget. The projected annual expenses are summarized in
Table 1. Project evaluation costs are not expected to continue beyond
the first five years unless the results warrant further evaluation.
Additional cost may be incurred as a part of the implementation and
operation of the project.
[GRAPHIC] [TIFF OMITTED] TN22NO19.004
IX. Required Waivers to Law and Regulation
Public Law 106-398 gave the DoD the authority to experiment with
several personnel management innovations. In addition to the
authorities granted by the law, the following are 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 Title 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. Waivers to Title 5, United States Code
Chapter 5, section 552a: Records maintained on individuals. This
section is waived only to the extent required to clarify that
volunteers under the Volunteer Emeritus Corps 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 as necessary to allow for the Pay Band VI of the
E&S Occupational Family.
Chapter 33, section 3317(a): Competitive Service; certification
from registers. Waived insofar as ``rule of three'' is eliminated under
the demonstration projects.
Chapter 33, section 3318(a): Competitive Service, selection from
certificate. Waived to the extent necessary to eliminate the
requirement
[[Page 64488]]
for selection using the ``Rule of Three'' and other limitations on
recruitment list.
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 fully allow for
positions above GS-15.
Chapter 33, section 3341: Details. Waived as necessary to extend
the time limits for details.
Chapter 41, section 4107: Pay for Degrees. Waived in entirety.
Chapter 41, section 4108(a)-(c): Employee agreements; service after
training. Waived to the extent necessary to require the employee to
continue in the service of ARI for the period of the required service
and to the extent necessary to permit the Director, ARI, to waive in
whole or in part a right of recovery.
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: Classification. Waived as necessary
to allow for the demonstration project pay banding system.
Chapter 53, sections 5301-5307: Related to pay comparability system
and GS pay rates. Waived to the extent necessary to allow demonstration
project employees, including SSTM employees, to be treated as GS
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: GS pay rates. Waived in its
entirety to allow for the demonstration project's pay banding system
and pay provisions.
Chapter 53, sections 5361-5366: Grade and pay retention. Waived to
the extent necessary to allow pay retention provisions described in
this FR notice and to allow SSTMs to receive pay retention as described
in 79 FR 43722.
Chapter 55, section 5545(d): Hazardous duty differential. Waived to
the extent necessary to allow demonstration project employees to be
treated as GS employees. This waiver does not apply to employees in Pay
Band VI of the E&S occupational family.
Chapter 57, section 5753, 5754, and 5755: Recruitment and
relocation, bonuses, retention allowances and supervisory
differentials. Waived to the extent necessary to allow (1) employees
and positions under the demonstration project to be treated as
employees and positions under the GS, (2) employees in Pay Band VI of
the E&S occupational family to be treated as ST and/or GS employees as
appropriate, (3) previsions of the retention counteroffer and
incentives as described in this FRN, and (4) to allow SSTMs to receive
supervisory pay differentials as described in 79 FR 43722.
Chapter 59, section 5941: Allowances based on living costs and
conditions of environment; employees stationed outside continental U.S.
or Alaska. Waived to the extent necessary to provide that cost-of-
living allowances paid to employees under the demonstration project are
paid in accordance with 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 allow for up to a three-year probationary period 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. Waived to the extent necessary to allow for two-
year supervisory probationary periods and to permit re-assignment of
supervisors during the probationary period without adverse action
procedures for those employees serving in a supervisory probationary
period.
Chapter 75, section 7512(3): Adverse actions. Waived to the extent
necessary to replace ``grade'' with ``pay band.''
Chapter 75, section 7512(4): Adverse actions. Waived to the extent
necessary to provide that adverse action provisions do not apply to (1)
reductions in pay due to the removal of a supervisory or team leader
pay adjustment/differential upon voluntary movement to a non-
supervisory or non-team leader position or (2) decreases in the amount
of a supervisory or team leader pay adjustment/differential during the
annual review process.
B. Waivers to Title 5, Code of Federal Regulations
Part 300-330: 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.
Part 300, sections 300.601 through 605: Time-in-grade restrictions.
Waived to eliminate time-in-grade restrictions in the demonstration
project.
Part 315, section 315.801(a), 315.801(b)(1), (c), and (e) and
315.802(a) and (b)(1): Probationary period and length of probationary
period. Waived to the extent necessary to (1) allow for up to a three-
year probationary period 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 and (2) to the extent
necessary to allow for supervisory probationary periods to permit
reassignment during the supervisory probationary period without using
adverse action procedures for employees serving a probationary period.
Part 315, section 315.804: Termination of probationers for
unsatisfactory performance or conduct. Waived to the extent necessary
to reduce a supervisor who fails to successfully complete a supervisory
probationary period to a lower grade/band.
Part 315, section 315.805: Termination of probationers for
conditions arising before appointment. Waived to the extent necessary
to permit termination during the extended probationary period without
using adverse procedures.
Part 315, section 315.901-315.909: Statutory requirement. Waived to
the extent necessary to (1) replace ``grade'' with ``pay band;'' (2)
establish a two-year supervisory probationary period; and (3) allow the
movement of a newly hired supervisor who fails to meet requirements to
a lower grade/band.
Part 316, 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 and in 82 FR 43339.
Part 332, section 332.401, 332.402 and 332.404: Order of selection
from certificates. Waived to the extent necessary to eliminate the
requirement for selection using the ``Rule of Three'' or other
procedures to limit recruitment lists.
Part 335, section 335.103: Agency promotion programs. Waived to the
extent necessary to extend the length of details and temporary
promotions without requiring competitive procedures.
Part 337, section 337.101(a): Rating applicants. Waived to the
extent necessary to allow referral without
[[Page 64489]]
rating when there are 15 or fewer qualified candidates and no qualified
preference eligibles.
Part 340, subpart A, subpart B, and subpart C: Other than full-time
career employment. These subparts are waived to the extent necessary to
allow a Volunteer Emeritus Corps.
Part 359, section 359.705: Pay. Waived to allow demonstration
project rules governing pay retention to apply to a former SES or ST
placed on an SSTM position.
Part 410, section 410.308(a-e): Training to obtain an academic
degree. Waived to the extent necessary to allow provisions described in
this FR.
Part 410, section 410.309: Agreements to continue in service.
Waived to the extent necessary to allow the ARI Director to determine
requirements related to continued service agreements.
Part 430, subpart B: Performance appraisal for GS, prevailing rate,
and certain other employees. Waived to the extent necessary to be
consistent with the demonstration project's pay-for- performance
system.
Part 432, section 432.102-432.106: Performance based reduction in
grade and removal actions. Waived to the extent necessary to allow
provisions described in the FRN.
Part 511: Classification under the general schedule. Waived to the
extent necessary to allow classification provisions outlined in this FR
to include the list of issues that are neither appealable nor
reviewable, the assignment of series under the project plan to
appropriate occupational families; and to allow appeals to be decided
by the ARI Director. If the employee is not satisfied with the ARI
Director's response to the appeal, he/she may then appeal to the DoD
appellate level.
Part 530, subpart C: Special rate schedules for recruitment and
retention. Waived in its entirety to allow for staffing supplements, if
applicable.
Part 531, subpart B: Determining rate of basic pay. Waived to the
extent necessary to allow for pay setting and pay-for-performance under
the provisions of the demonstration project.
Part 531, subparts D and E: Within-grade increases and quality step
increases. Waived in its entirety.
Part 531, subpart F: Locality-based comparability payments. Waived
to the extent necessary to allow (1) demonstration project employees,
except employees in Pay Band VI of the E&S occupational family, to be
treated as GS employees; and (2) base rates of pay under the
demonstration project to be treated as scheduled annual rates of pay.
Part 536: Grade and pay retention. Waived to the extent necessary
to (1) replace ``grade'' with ``pay band;'' (2) provide that pay
retention provisions do not apply to conversions from GS 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) allow
demonstration project employees to be treated as GS employees; (4)
provide that pay retention provisions do not apply to movements to a
lower pay band as a result of not receiving the general increase due to
an annual performance rating of ``Unacceptable;'' (5) provide that an
employee on pay retention whose rating of record is ``Unacceptable'' is
not entitled to 50 percent of the amount of the increase in the maximum
rate of base pay payable for the pay band of the employee's position;
(6) ensure that for employees of Pay Band VI in the E&S occupational
family, pay retention provisions are modified so that no rate
established under these provisions may exceed the rate of base pay for
GS-15, step 10 (i.e., there is no entitlement to retained rate); and
(7) provide that pay retention does not apply to reduction in base pay
due solely to the reallocation of demonstration project pay rates in
the implementation of a staffing supplement. This waiver applies to ST
employees only if they move to a GS-equivalent position within the
demonstration project under conditions that trigger entitlement to pay
retention.
Part 536, section 536.306(a): Limitation on retained rates. Waived
to the extent necessary to allow SSTMs to receive pay retention as
described in 79 FR 43727.
Part 550, section 550.703: Definitions. Waived to the extent
necessary to modify the definition of ``reasonable offer'' by replacing
``two grade or pay levels'' with ``one band level'' and ``grade or pay
level'' with ``band level.''
Part 550, section 550.902: Definitions. Waived to the extent
necessary to allow demonstration project employees to be treated as GS
employees. This waiver does not apply to employees in Pay Band VI of
the E&S occupational family.
Part 575, subparts A, B, C, and D: Recruitment incentives,
relocation incentives, retention incentives and supervisory
differentials. Waived to the extent necessary to allow (1) employees
and positions under the demonstration project covered by pay banding to
be treated as employees and positions under the GS system, (2) to allow
SSTMs to receive supervisory pay differentials as described in 73 FR
43727, and (3) to allow the Director to pay an offer 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.
Part 591, subpart B: Cost-of-living allowance and post
differential--Non-foreign Areas. Waived to the extent necessary to
allow demonstration project employees to be treated as employees under
the GS system.
Part 752, sections 752.101, 752.201, 752.301 and 752.401: Principal
statutory requirements and coverage. Waived to the extent necessary to
(1) allow for up to a three-year probationary period; (2) 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; (3) allow for supervisory probationary periods and to
permit reassignment during the supervisory probationary period without
use of adverse action procedures for those employees serving a
probationary period under a supervisory probationary period; (4)
replace ``grade'' with ``pay band;'' and (5) provide that a reduction
in pay band level is not an adverse action if it results from the
employee's rate of base pay being exceeded by the minimum rate of base
pay for his/her pay band. Waived to the extent necessary to provide
that adverse action provisions do not apply to (1) conversions from GS
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
or team leader pay adjustment/differential upon voluntary movement to a
non-supervisory or non-team leader position or decreases in the amount
of a supervisory or team leader pay adjustment based on the annual
review.
BILLING CODE 5001-06-P
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[GRAPHIC] [TIFF OMITTED] TN22NO19.009
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Dated: November 15, 2019.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2019-25201 Filed 11-21-19; 8:45 am]
BILLING CODE 5001-06-C