[Federal Register Volume 74, Number 246 (Thursday, December 24, 2009)]
[Notices]
[Pages 68448-68475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30478]
[[Page 68447]]
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Part II
Department of Defense
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Office of the Secretary
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Science and Technology Reinvention Laboratory Personnel Management
Demonstration Project, Department of the Army, Army Research,
Development and Engineering Command, Natick Soldier Research,
Development and Engineering Center (NSRDEC); Notice
Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 /
Notices
[[Page 68448]]
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DEPARTMENT OF DEFENSE
Office of the Secretary
Science and Technology Reinvention Laboratory Personnel
Management Demonstration Project, Department of the Army, Army
Research, Development and Engineering Command, Natick Soldier Research,
Development and Engineering Center (NSRDEC)
AGENCY: Office of the Deputy Under Secretary of Defense (Civilian
Personnel Policy), (DUSD (CPP)), Department of Defense (DoD).
ACTION: Notice of approval of a demonstration project final plan.
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SUMMARY: Section 342(b) of Public Law 103-337, as amended, authorizes
the Secretary of Defense to conduct personnel demonstration projects at
Department of Defense (DoD) laboratories designated as Science and
Technology Reinvention Laboratories (STRLs). The above-cited
legislation authorizes DoD to conduct demonstration projects to
determine whether a specified change in personnel management policies
or procedures would result in improved Federal personnel management.
Section 1107 of Public Law 110-181 as amended by section 1109 of Public
Law 110-417 requires the Secretary of Defense to execute a process and
plan to employ the Department's personnel management demonstration
project authorities found in title 5 United States Code (U.S.C.) 4703
at the STRLs enumerated in 5 U.S.C. 9902(c)(2) as re-designated in
section 1105 of Public Law 111-84 and 73 Federal Register (FR) 73248 to
enhance the performance of these laboratories. The NSRDEC is listed as
one of the designated STRLs.
DATES: Implementation of this demonstration project will begin no
earlier than February 1, 2010.
FOR FURTHER INFORMATION CONTACT:
NSRDEC: Ms. Karen Sullivan, Natick Soldier Research, Development and
Engineering Center, (RDNS-BOW), Kansas Street, Natick, MA 01760, (508)
233-4479.
DoD: Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key Boulevard,
Arlington, VA 22209-5144
SUPPLEMENTARY INFORMATION:
1. Background
Since 1966, many studies of Department of Defense (DoD)
laboratories have been conducted on laboratory quality and personnel.
Almost all of these studies have recommended improvements in civilian
personnel policy, organization, and management. Pursuant to the
authority provided in section 342(b) of Public Law 103-337, as amended,
a number of DoD STRL personnel demonstration projects 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.
This demonstration project involves: (1) Two appointment
authorities (permanent and modified term); (2) extended probationary
period for newly hired engineering and science employees; (3) pay
banding; (4) streamlined delegated examining; (5) modified reduction-
in-force (RIF) procedures; (6) simplified job classification; (7) a
pay-for-performance based appraisal system; (8) academic degree and
certificate training; (9) sabbaticals; and (10) a Voluntary Emeritus
Corps.
2. Overview
DoD published notice in 73 FR 73248, December 2, 2008, that
pursuant to subsection 1107(c) of Public Law 110-181 the three STRLs
listed in 5 U.S.C. 9902(c)(2) as re-designated in section 1105 of
Public Law 111-84 not having personnel demonstration projects may adopt
any of the flexibilities of the other laboratories listed in subsection
9902(c)(2) as re-designated in section 1105 of Public Law 111-84 and
further provided notice of the proposed adoption of an existing STRL
demonstration project by two centers under the United States (U.S.)
Army Research, Development and Engineering Command (RDECOM): Edgewood
Chemical Biological Center (ECBC) and NSRDEC. The notice indicated that
these two centers intended to adopt the STRL Personnel Management
Demonstration project designed by the U.S. Army Communications-
Electronics Command, Research, Development, and Engineering
organizations (a reorganization changed this designation to the U. S.
Army Communications-Electronics Research, Development and Engineering
Center (CERDEC)). Relative to NSRDEC's intent to adopt the CERDEC
demonstration project, DoD received written comments from 5
individuals, including a union official, during the public comment
period which ended on January 2, 2009. In addition, one individual
provided comments after the close of the comment period. All comments
were carefully considered. The comments received after the close of the
comment period are not included in the summary below, but were
discussed with the individual who provided the comments.
The following summary addresses the pertinent comments received,
provides responses, and notes resultant changes to the original CERDEC
project plan published in 66 FR 54872, October 30, 2001. Several
commenters addressed more than one topic and each topic was counted
separately. Thus, the total number of comments exceeds the number of
individuals cited above.
A. Miscellaneous
Four miscellaneous comments were received.
Comments: Two commenters provided favorable comments on the
expected benefits to NSRDEC as a result of the demonstration project
and on the value of pay banding to retain and reward high performers.
Two other comments reflected the need to make revisions and other
adjustments in the document to reflect NSRDEC and its workforce and to
make other updates for legal and regulatory changes that have occurred.
Response: A number of changes were made to include NSRDEC as the
name of the organization, its organizational and workforce information,
approval authorities, and technical modifications to conform to changes
in the law and governing regulations. In addition, some sections have
been reformatted for clarity and to improve readability. Throughout the
document changes have been made to clarify and provide consistent use
of pay terminology. Minor revisions have been made to Appendix C,
Performance Elements, to be consistent with the descriptions currently
in use by CERDEC.
B. Pay Bands
Two comments were received concerning pay bands.
Comments: One commenter advised that reconsideration be given to
initial placement of all GS-14 engineers and scientists to the
Engineering and Scientist (E&S) (DB) Pay Band IV and requested
clarification of how any subsequent conversions for GS-14 E&S positions
will be handled. Another comment suggested that the number of Pay Band
V positions be expanded to permit a certain number or percent at each
STRL since the current limited number has already been allocated to
other organizations which would preclude NSRDEC from using this
flexibility.
[[Page 68449]]
Response: We have carefully considered these comments. With regard
to placement of GS-14 E&S, language has been changed in III.A.1. and
added in III.A.2. to reflect that upon conversion NSRDEC employees in
the E&S family at grade GS-14 will be assigned to Pay Band IV.
In response to the second comment, the use of Pay Band V has proven
to be beneficial in recruiting and retaining highly-qualified senior
scientific technical managers in those STRL personnel demonstration
projects that have such positions. The limited number of such positions
makes it difficult to meet the requirements of all the STRLs who wish
to use this flexibility. The DoD is currently reviewing all Pay Band V
positions. No change is proposed in the number of Pay Band V positions
pending the completion of the DoD review.
C. Pay for Performance
Five comments were received related to the pay-for-performance
system.
Comments: One commenter expressed concern that performance and pay
related decisions of supervisors could be personality-driven and that
employees did not have sufficient trust in their supervisors to
increase the authority of supervisors to make pay-related decisions.
Another commenter expressed concern that pay for performance will
undermine organizational performance. The commenter has not been able
to identify performance management experts that support rating/ranking
of employees. The commenter emphasized the importance of assuring that
performance objectives provide a consistent level of challenge and
urged adding a level of employee oversight for balance. Another
commenter considered that the proposed system is no less subjective
than the present system. Finally, another commenter was concerned that
adoption of the demonstration project pay-for-performance system would
adversely affect mobilized reservists and guardsmen.
Response: As cited by the commenter, a recent Merit Systems
Protection Board survey suggests that, across the Federal government, a
number of survey respondents lack trust that their supervisors will
treat them fairly. Workforce support is crucial to the success of the
demonstration project, and a concerted effort will be made to build
trust and confidence in the demonstration project. On-going
communication with the workforce is eliciting their opinions. A cross-
section of employees participate in a Workforce Advisory Group and are
actively involved in identifying training needs and developing
operating procedures. Training in the pay-for-performance system and
other aspects of the demonstration project will be mandatory for all
supervisors. The use of a structured reconciliation process to
determine performance payouts will facilitate enhancing fairness and
consistency. The process provides for raters to conduct a review,
comparing preliminary scores and building consensus to achieve
consistent ratings across the pay pool. Finally, perceived fairness of
the appraisal process has been identified as an area for evaluation and
will be included in surveys of the workforce and focus group
discussions with employees. An annual report with a thorough review and
analysis of the pay-for-performance cycle will be published to assist
in providing greater transparency. Active outreach combined with the
structured reconciliation process and transparency will help to build
the trust necessary for successful implementation.
Improving organizational effectiveness is the driving goal
supporting implementation of the laboratory personnel demonstration
project. The Office of Personnel Management (OPM), in its independent
evaluation of STRL personnel demonstration projects, found a limited
but positive impact of implementation of a demonstration project on
laboratory effectiveness. All STRL demonstration projects include a
pay-for-performance system as a means to achieve improved
organizational effectiveness. Though there are difficulties with
performance reviews, such reviews are a mainstream practice,
commonplace within the private, non-profit and public sectors.
Performance appraisal is specifically required by 5 U.S.C. chapter 43.
Demonstration projects build on this requirement by increasing the link
between pay and performance. Survey results indicate that, after
implementation of a demonstration project, many more respondents agree
that pay raises depend on performance. The pay-for-performance system
is an integral component of a demonstration project's more flexible and
responsive human resources system. The design of the NSRDEC pay-for-
performance system will increase and improve communication between the
supervisor and the rater during the rating cycle, provide for alignment
of performance objectives with organizational goals and objectives, and
use features such as a workforce survey to gauge the effectiveness and
level of support for pay for performance.
There is a need to assure an appropriate level of challenge in
performance objectives across the NSRDEC organization. In the current
system, preparing performance objectives has traditionally been a
matter between the rater and the employee. Some efforts have been made
to review objectives within an individual directorate and training has
been provided on what is a ``good'' objective. The demonstration
project will serve to improve consistency across the organization. All
supervisors will have mandatory pay-for-performance training that will
include writing performance objectives. The NSRDEC Workforce Advisory
Group has taken a key interest in improving performance objectives and
will help to develop sample performance objectives. The sample
objectives will be linked to occupational family and pay band. At the
start of the first performance cycle, the raters within a pay pool and
the pay pool manager will review and provide feedback on performance
objectives. The pay pool manager will review the objectives and weights
assigned to employees within the pay pool to verify consistency and
appropriateness. These efforts should significantly improve consistency
and equity in performance expectations within NSRDEC.
Some level of subjectivity is inherent in performance appraisal
systems. Additional features of the pay-for-performance system will
serve to facilitate understanding of performance expectations and to
limit bias and favoritism. Improved communication throughout the rating
cycle serves to help build a common understanding of performance
expectations and to make progress toward achieving those expectations.
This, plus the structured, thorough review process, improves the
likelihood for consistency and equity in the ratings. Major design
features of the rating system are intended to overcome perceptions of
favoritism and limited differentiation among ratings. The automated
``Performance Evaluation Tool'' helps assure that objectives are in
place on a timely basis, accomplishments are recorded, and
communication related to performance is on-going. The pay-for-
performance system uses standard performance elements and performance
benchmarks to evaluate employee performance that supports the mission,
allows managers to make meaningful performance distinctions, considers
current pay in making performance-based pay decisions and provides
information to employees about the results of the appraisal process and
pay decisions. At
[[Page 68450]]
the end of the rating period, employees provide their accomplishments.
Following the initial scoring of each employee, raters in an
organizational unit along with their next level of supervision meet to
ensure consistency and equity of the ratings. Through discussion and
consensus building, consistent and equitable ratings are determined
based on similar level of performance, level of work and level of base
pay. This improves upon the current performance appraisal system where
there are only brief performance standards described for the fully
successful level and rating is typically done by a supervisor with
review and approval by a senior rater.
Finally, adoption of the demonstration project and its pay-for-
performance system must meet the requirements of the Uniformed Services
Employment and Reemployment Rights Act. Operating procedures will
provide a mechanism for mobilized employees to receive a presumed
performance rating of record that will permit base pay increases and/or
bonuses. As is done under other pay-for-performance systems, operating
procedures will require use of the most recent or average rating or
record over a specified period, use of modality ratings or other
mechanism to assure that mobilized employees who are unable to be rated
receive the base pay increases that could have been received except for
the mobilization.
D. Pay Pool Funding
Two comments were received related to pay pool funding.
Comments: A commenter recommended revising the pay pool percentage
factor to be a minimum of 2.0 percent for base pay funding and 1
percent for bonus. Another commenter recommended that locality pay not
be included in the pay pool funding.
Response: The recommendation to set a minimum of 2 percent for the
base and 1 percent for the bonus has been accepted. The general pay
increase (including locality pay) is not included in the pay pool
funding.
E. Extraordinary Achievement Award
Two comments were received related to the Extraordinary Achievement
Recognition.
Comments: One commenter suggested that the Extraordinary
Achievement Recognition language be moved to a separate section since
it is considered after and separate from the pay pool payout process.
The same commenter also proposed that the Extraordinary Achievement
Recognition language be revised to allow for bonus as an alternative to
granting a base pay increase since capped employees would be precluded
from receiving this recognition.
Response: While an Extraordinary Achievement Recognition is
considered after the pay pool payout process, it is not entirely
separate from the process itself. Following the performance evaluation
process, the pay pool manager is the agent who requests permission from
the Personnel Management Board to grant a base pay increase higher than
the one generated by the compensation formula for that employee.
However, senior management is in agreement that a separate paragraph
would clarify the intent and process for the Extraordinary Achievement
Recognition and has moved the provision to a separate paragraph in
III.C.9. ``Base Pay Increases and Bonuses''.
As to the second comment, language has been added to the new
section at III.C.9., referenced above, allowing for the option to grant
either a base pay increase and/or a bonus as an Extraordinary
Achievement Recognition. This permits employees whose base pay is at
the maximum of their pay band to receive this recognition.
F. Pay
Three comments were received related to pay setting.
Comments: One commenter suggested relieving pay compression by
providing additional waivers to permit full locality payment, changing
supervisory/team leader pay adjustments and pay differentials to
provide up to 10 percent for team leaders, and providing a pay increase
of up to a defined amount when a person moves to a position of greater
responsibility (reassignment) within the same pay band.
Response: There is concern that individuals whose base pay is at
the higher end of the GS-15 base pay range do not receive their full
locality pay. This situation also occurs within the demonstration
project since both DB IV and DE IV are linked to a range of GS base pay
with a cap equivalent to the GS-15, step 10, base pay rate. However,
increasing the maximum base pay for GS-15 equivalent pay bands will
create a compensation imbalance with individuals in Scientific and
Professional and Senior Executive Service positions. This locality cap
issue is being examined at higher levels; therefore no change is
proposed.
The suggestion to increase the maximum for team leader base pay
adjustments and differentials from 5 percent to 10 percent was
considered. However, the decision was made to retain a distinction in
the amount of adjustment or differential that could be provided for
team leaders versus supervisors.
Finally consideration was given to permitting a base pay increase
upon reassignment. Since broad pay bands include positions of varying
complexity and responsibility, a base pay increase would provide
incentive to encourage employees to accept positions of greater
responsibility in the same pay band. Therefore, language has been added
at III.F.5. to address this issue and to define ``reassignment'' in
III.E.2. 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 rules established by the Personnel Management Board.
G. Awards
One comment was received related to incentive awards.
Comment: One commenter suggested use of an employee oversight board
as a means to achieve consistency across the NSRDEC in the use of
incentive awards.
Response: Awards (such as the traditional 5 U.S.C. special act, on-
the-spot, and time-off) are not linked to the pay-for-performance
system and will continue as a means to reward individuals and groups
for their achievements and as an incentive for superior performance.
Review and assessment of the use of these awards will continue
following current practice.
H. Promotion
Comment: One comment was received related to the minimum
performance score required for promotion eligibility.
Response: One commenter suggested lowering the minimum performance
score required for eligibility for promotion. The FR requires a
performance score of 30 or higher for promotion eligibility. But,
scores of 10 and higher are acceptable, with scores of 21 and higher
earning a performance payout. Setting a minimum score of 30 for
promotion sets the requirement higher than the score for a performance
payout and may discourage the use of scores in the 21 to 29 range.
Accordingly, a score of 21 is set as the minimum requirement for
promotion.
I. Period
One comment was received related to probationary periods.
[[Page 68451]]
Comment: One commenter advised that a recent court decision limited
the intent of the extended probationary period.
Response: The extended probationary period applies to newly hired
engineers and scientists. Its purpose is to allow the supervisor a
sufficient period of time to fully evaluate an employee's performance
and conduct. The extended probationary period of up to three years
allows supervisors sufficient time to properly, objectively and
completely evaluate an employee's performance and conduct. Probationary
employees whose conduct and/or performance is unsatisfactory may be
terminated in accordance with the procedures in 5 Code of Federal
Regulations (CFR) part 315. However, a recent court decision has
extended adverse action procedural and substantive protections to
individuals defined as employees without regard to whether the
individuals are serving a probationary period. To permit termination
during the probationary period without using adverse action procedures,
waivers have been added under IX. Required Waivers to Law and
Regulation to allow for up to a three-year probationary period and to
remove from the definition of employee, except for those with veterans'
preference, those serving a probationary period under an initial
appointment who do not have veterans' preference
J. Reduction in Force
One comment was received related to reduction in force.
Comment: One commenter expressed concern that the implementation of
a laboratory demonstration project for NSRDEC would result in separate
competitive areas for employees who work at various installations co-
located with NSRDEC at the Natick Soldier Systems Center (NSSC).
Response: The implementation of a demonstration project at NSRDEC
will not affect the determination of separate competitive areas for the
distinct organizations located at NSSC. To the extent that the
organizations located at NSSC are distinct organizations with separate
command structures, there would be separate competitive areas in the
event of a RIF in one of these organizations.
K. Conversion
One comment was received related to conversion of interns into the
demonstration project.
Comment: One commenter recommended that conversion of interns into
the demonstration project occur when the employees reach their full
performance level for their GS position.
Response: Interns typically receive several career promotions prior
to reaching their full performance level. Average base pay for
performance payouts may not provide increases as substantial as career
promotions under the GS. Delaying conversion into the demonstration
project pay bands until an intern reaches full performance level will
assure that the intern's base pay is commensurate with the full
performance level base pay. Therefore, the language at II.E. has been
revised to reflect that interns will not convert into demonstration pay
bands until they reach their full performance level.
3. Access to Flexibilities of Other STRLs
Flexibilities published in this Federal Register shall be available
for use by all STRLs listed in section 9902(c)(2) of title 5, United
States Code, if they wish to adopt them in accordance with DoD
Instruction 1400.37; pages 73248 to 73252 of volume 73, Federal
Register; and the fulfilling of any collective bargaining obligations.
Dated: December 17, 2009.
Patricia Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
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
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
H. Reduction-in-Force Procedures
IV. Implementation Training
V. Conversion
A. Conversion to the Demonstration Project
B. Conversion Out of the Demonstration Project
C. Personnel Administration
D. Automation
E. Experimentation and Revision
VI. Project Duration
VII. Evaluation Plan
A. Overview
B. Evaluation Model
C. Evaluation
D. 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 U.S.C.
B. Waivers To Title 5 CFR
Appendix A: NSRDEC Employees by Duty Locations
Appendix B: Occupational Series by Occupational family
Appendix C: Performance Elements
Appendix D: Intervention Model
I. Executive Summary
This project adopts with some modifications the STRL personnel
management demonstration project, designed by the U.S. Army
Communications-Electronics Command (CECOM), Research, Development and
Engineering (RDE) organizations, with participation and review by the
Department of the Army (DA) and DoD to the U.S. Army RDECOM, NSRDEC.
After implementation of the CECOM RDE demonstration project, CECOM
reorganized. Its laboratory, the Communications-Electronics Research,
Development, and Engineering Center (CERDEC), was realigned under
RDECOM. At the same time, the NSRDEC was also realigned under RDECOM.
The NSRDEC includes the NSRDEC organization at the Natick Soldier
Systems Center site, NSRDEC employees matrixed to Program/Project/
Product Management Offices (e.g., PM-Force Sustainment Systems, and PM-
Clothing and Individual Equipment) as well as NSRDEC employees with
duty stations at other sites.
The NSRDEC, located at Natick Soldier Systems Center (SSC) in
Natick, Massachusetts, conducts research, technology development,
testing and integration aimed at maximizing the individual soldier's
survivability, sustainability, mobility, combat effectiveness and
quality of life by treating the soldier as a system. The NSRDEC major
product lines are: rations, clothing, equipment, shelters, airdrop
systems, and soldier systems support items. The core capabilities of
the NSRDEC are centered on the technologies required by the soldier and
soldier support systems, to include biotechnology, anthropometry,
biomechanics, consumer research, textiles, fibers and materials, food
science, aerodynamics, and modeling and simulation. Integration of
these technologies remains the primary focus for modernizing the future
soldier, as well as Warrior Systems. The NSRDEC goal is simple:
``Provide America's soldiers with the best equipment in the world.'' To
achieve this goal, the NSRDEC organization must be able to hire, retain
and continually motivate enthusiastic, innovative, and highly-educated
scientists and engineers, supported by skilled business management and
administrative
[[Page 68452]]
professionals as well as a skilled administrative and technical support
staff.
The goal of the project is to enhance the quality and
professionalism of the NSRDEC 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
mission, adjust the workforce for change, and improve workforce
satisfaction. This demonstration project extends the CERDEC
demonstration project to NSRDEC. The CERDEC project was built on the
concepts, and uses much of the same language, as the demonstration
projects developed by the Army Research Laboratory (ARL), the Aviation
and Missile Research, Development, and Engineering Center (AMRDEC), the
Navy's ``China Lake,'' and the National Institute of Standards and
Technology (NIST). The results of the project will be evaluated within
5 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.
Many aspects of a demonstration project are experimental.
Modifications may be made from time to time as experience is gained,
results are analyzed, and conclusions are reached on how the system is
working. The provisions of this project plan will not be modified, or
extended to individuals or groups of employees not included in the
project plan without the approval of the ODUSD(CPP). The provisions of
DoDI 1400.37, are to be followed for any modifications, adoptions, or
changes to this demonstration project plan.
B. Problems With the Present System
The current Civil Service General Schedule (GS) system has existed
in essentially the same form since the 1920's. 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.
The performance management model that has existed since the passage
of the Civil Service Reform Act has come under extreme criticism.
Employees frequently report there is inadequate communication of
performance expectations and feedback on performance. There are
perceived inaccuracies in performance ratings with general agreement
that the ratings are inflated and often unevenly distributed by grade,
occupation and geographic location.
The need to change the current hiring system is essential as NSRDEC
must be able to recruit and retain scientific, engineering,
acquisition, skilled technical, and other professional, administrative
and support employees. The NSRDEC 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 work to meet changing
missions and emerging technologies.
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 NIST demonstration projects have produced impressive statistics on
increased job satisfaction and quality of employees versus that for the
Federal workforce in general. This project will demonstrate that a
human resource system tailored to the mission and needs of the NSRDEC
workforce will facilitate:
(1) Increased quality in the workforce and resultant products,
(2) Increased timeliness of key personnel processes,
(3) Increased retention of ``excellent performers,''
(4) Increased success in recruitment of personnel with critical
skills,
(5) Increased management authority and accountability,
(6) Increased satisfaction of customers, and
(7) Increased workforce satisfaction with the personnel management
system.
An evaluation model was developed for the Director of Defense,
Research and Engineering (DDR&E) in conjunction with STRLs, service
representatives, and OPM. The model will measure the effectiveness of
this demonstration project, as modified in this plan, and will be used
to measure the results of specific personnel system changes.
D. Participating Organizations
NSRDEC is comprised of the NSRDEC at the Natick Soldier System
Center, Natick, Massachusetts, NSRDEC employees matrixed to Program
Management offices, and NSRDEC employees geographically dispersed at
the locations shown in Appendix A. It should be noted that some sites
currently employ fewer than 10 people and that the sites may change
should NSRDEC reorganize or realign. Successor organizations will
continue coverage in the demonstration project.
E. Participating Employees and Union Representation
This demonstration project will cover approximately 700 NSRDEC
civilian employees under title 5 U.S.C. in the occupations listed in
Appendix B. The project plan does not cover members of the Senior
Executive Service (SES), Scientific and Professional (ST) employees,
Federal Wage System (FWS) employees, employees presently covered by the
Defense Civilian Intelligence Personnel System (DCIPS), DA and Army
Command centrally funded interns and students employed under the
Student Career Experience Program (SCEP). Employees on temporary
appointments will not be covered by the demonstration project.
Department of Army, Army Command centrally funded, and local
interns (hired prior to implementation of the project) will not be
converted to the demonstration project until they reach their full
performance level. They will also continue to follow the Total Army
Performance Evaluation System (TAPES) performance appraisal system.
Local interns hired after implementation of the project will be covered
by all terms of the demonstration project.
The National Association of Government Employees (NAGE) Local
[[Page 68453]]
R1-34 represents the majority of NSRDEC employees. Of those employees
assigned to NSRDEC, approximately 85 percent are represented by NAGE.
NSRDEC has maintained on-going communication with the Union regarding
its intent to pursue approval for a laboratory personnel demonstration
project. NSRDEC is continuing to inform the Union, and its Executive
Vice President is participating as a member of the Workforce Advisory
Group. Negotiations will begin after publication of this Federal
Register. NSRDEC will continue to fulfill its obligation to consult
and/or negotiate with all labor organizations in accordance with 5
U.S.C. 4703(f) and 7117.
F. Project Design
NSRDEC has been a DoD STRL since June 1995. This status authorized
NSRDEC to participate in all of the STRL initiatives, to include the
authority to carry out personnel demonstration projects. NAGE Local R1-
34 actively participated in the development of an earlier personnel
demonstration project (PDP). However, as a result of DoD development of
a best practices model and the design and implementation of the
National Security Personnel System (NSPS), the proposal was not acted
upon. Subsequently, in 2005 the NSRDEC submitted a request to adopt the
CERDEC demonstration project. The CERDEC demonstration project was the
most recently approved demonstration project, used an inclusive
approach for its design, and benefitted from the experiences of prior
STRL demonstration projects. After the enactment of the National
Defense Authorization Act for Fiscal Year 2008 provided for full
implementation of the personnel demonstration project, the DoD
announced NSRDEC's intent to adopt the CERDEC demonstration project in
73 FR 73248, December 2, 2008.
G. Personnel Management Board
NSRDEC has created a Personnel Management Board 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 are senior
leaders appointed by the NSRDEC Director. As needed, ad hoc members
will serve in an advisory capacity to the Board.
The board will execute the following:
(1) Determine the composition of the pay-for-performance pay pools
in accordance with the guidelines of this proposal and internal
procedures;
(2) Review operation of pay pools and provide guidance to pay pool
managers;
(3) Oversee disputes in pay pool issues;
(4) Formulate and execute the civilian pay budget;
(5) Manage the awards pools;
(6) Determine hiring and promotion base pay as well as exceptions
to pay-for-performance base pay increases;
(7) Conduct classification review and oversight, monitoring and
adjusting classification practices and deciding board classification
issues;
(8) Approve major changes in position structure;
(9) Address issues associated with multiple pay systems during the
demonstration project;
(10) Establish Standard Performance Elements and Benchmarks;
(11) Assess the need for changes to demonstration project
procedures and policies;
(12) Review requests for Supervisory/Team Leader Base Pay
Adjustments and provide recommendations to the appropriate Center
Director;
(13) Ensure in-house budget discipline;
(14) Manage the number of employees by occupational family and pay
band;
(15) Develop policies and procedures for administering
Developmental Opportunity Programs;
(16) Ensure that all employees are treated in a fair and equitable
manner in accordance with the policies, regulations and guidelines
covering this demonstration project; and,
(17) Monitor the evaluation of the project.
III. Personnel System Changes
A. Pay Banding
The design of the 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 NIST. The 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 base 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.
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. 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 five 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. Upon conversion into the demonstration project, NSRDEC
employees are initially assigned to the highest band in which their
grade fits. For example, a Management Analyst GS-343-12 in the Business
and Technical Family is assigned to Pay Band III as illustrated in
Figure 1. The upper and lower pay rate for base pay of each band is
defined by the GS rate for the grade and step as indicated in Figure 1
except for Pay Band V of the Engineering and Science occupational
family (refer to III.A.3.). 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:
E&S (Pay Plan DB): This occupational family includes technical
professional positions, such as engineers, physicists, chemists,
mathematicians, operations research analysts and computer scientists.
Specific course work or educational degrees are required for these
occupations. Five 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-14, step 10. Some first-level supervisory
positions may also be included in this band.
(4) Band IV * includes both senior technical positions along with
supervisors-managers covering GS-14, step 1 through GS-15, step 10.
(5) Band V is a senior scientific-technical manager. The pay range
is as
[[Page 68454]]
follows: minimum base pay is 120 percent of minimum base pay of GS-15;
maximum base pay is Level IV of the Executive Schedule (EX IV); and
maximum adjusted base pay (adjusted base pay is the base rate plus
locality or staffing supplement, as appropriate) is Level III of the
Executive Schedule (EX III).
* Bands III and IV overlap at the end and start points. These two
bands have been designed following a feature used by the Navy's ``China
Lake'' project. Upon conversion into the demonstration project, NSRDEC
employees in the E&S family currently at grade GS-14 are assigned to
Band IV.
Business & Technical (B&T) (Pay Plan DE): This occupational family
includes such positions as program acquisition specialists, equipment
specialists, engineering and electronics technicians, finance,
accounting, administrative, and management analysis. Employees in these
positions may or may not require specific course work or educational
degrees. Four 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 is a senior technical/manager track covering GS-14,
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
degree is not required. Clerical work usually involves the processing
and maintenance 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 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 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.
Figure 1--Pay Band Chart
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Equivalent GS grades
Occupational family --------------------------------------------------------------------------------------------------------------------------------------------------------------
I II III IV V
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
E&S.............................. GS-01--GS-04 GS-05--GS-11 GS-12--GS-14 GS-14--GS-15 >GS-15
Business & Technical............. GS-01--GS-04 GS-05--GS-11 GS-12--GS-13 GS-14--GS-15 .............................
General Support.................. GS-01--GS-04 GS-05--GS-08 GS-9 .............................. .............................
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Employees will be converted into the occupational family and pay
band that corresponds to their GS/GM series and grade. The Engineering
and Science occupational family has an overlapping pay band. GS-14
Engineers and Scientists will convert into Pay Band IV. Each employee
converted to the demonstration project is assured, upon conversion, an
initial place in the system without loss of pay. New hires will
ordinarily be placed at the lowest base pay rate in a pay band.
Exceptional qualifications, specific organizational requirements, or
other compelling reasons may lead to a higher entrance base pay within
a band. As the rates of the GS 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
(WIGIs) or Quality Step Increases (QSIs) for employees once the pay
banding system is in place. Special rate schedules will no longer be
applicable to demonstration project employees. Special provisions have
been included to ensure no loss of pay upon conversion. (See III. E.9,
Staffing Supplements).
3. Pay Band V
The pay banding plan expands the pay banding concept used at
``China Lake'' and NIST by creating Pay Band V for the Engineering and
Science occupational family. This pay band is designed for Senior
Scientific Technical Managers (SSTM). The current definitions of Senior
Executive Service (SES) and Scientific and Professional (ST) positions
do not fully meet the needs of the NSRDEC.
The SES designation is appropriate for executive level managerial
positions whose classification exceeds GS-15. The primary competencies
of SES positions relate to supervisory and managerial responsibilities.
Positions classified as ST are designed for bench research scientists
and engineers. These positions require a very high level of technical
expertise and have little or no supervisory responsibilities.
The NSRDEC has positions that may warrant classification above
grade GS-15 because of their technical expertise requirements. These
positions have characteristics of both SES and ST classifications. Most
of these positions are responsible for supervising other GS-15
positions, including lower level supervisors, and non-supervisory
engineers and scientists, and in some cases ST positions. The
supervisory and managerial requirements exceed those appropriate for ST
positions.
Management considers the primary requirement for these positions to
be knowledge of and expertise in the specific scientific and technology
areas related to the mission of their organizations, rather than the
executive leadership qualifications that are characteristic of the SES.
Historically, incumbents of these positions have been recognized within
the community as scientific and engineering leaders who possess strong
managerial and supervisory abilities. Therefore, although some of these
employees have scientific credentials that might compare favorably with
ST criteria, classification of these positions as STs is not an option
because the managerial and supervisory responsibilities cannot be
ignored.
Pay Band V will apply to a new category of positions designated as
Senior Scientific Technical Managers (SSTM). Positions so designated
will include those requiring scientific/engineering technical expertise
and full managerial and supervisory authority. Their scientific/
engineering technical expertise and responsibilities warrant
classification above the GS-15 level.
[[Page 68455]]
Current GS-15 positions will convert into the demonstration project
at Pay Band IV. After conversion these positions will be reviewed
against established criteria to determine if the positions should be
reclassified to Pay Band V. Other positions possibly meeting criteria
for designation as SSTM will be reviewed on a case-by-case basis. The
pay range for SSTM positions is: minimum base pay is 120 percent of
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).
Vacant SSTM positions will be filled competitively to ensure that
selectees are preeminent technical leaders in specialty fields who also
possess substantial managerial and supervisory abilities. Panels will
be created to assist in filling SSTM positions. Panel members typically
will be SES members, ST employees and later those designated as SSTMs.
In addition, General Officers and recognized technical experts from
outside the NSRDEC may also serve as appropriate. The panel will apply
criteria developed 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, breadth of technical expertise and a rigorous and
demanding review.
SSTM positions will be subject to limitations imposed by DoD. SSTM
positions will be established only in a STRL that employs scientists,
engineers, or both. Incumbents of these positions will work primarily
in their professional technical capacity on research and development
and secondarily will perform managerial or supervisory duties.
The final component of Pay Band V is the management of all Pay Band
V assets. Specifically, this authority will be exercised at the DA
level, and includes the following: authority to classify, create, or
abolish positions within the limitations imposed by DoD; recruit and
reassign employees in this pay band; set pay and appraise performance
under this project's pay-for-performance system.
B. Classification
1. Occupational Series
The present GS classification system has over 400 occupational
series, which are divided into 23 occupational groupings. NSRDEC
currently has positions in approximately 65 occupational series that
fall into 14 occupational groupings. 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.
2. Classification Standards and Position Descriptions
NSRDEC will use CERDEC's fully automated classification system
modeled after the Navy's ``China Lake'' and ARL automated systems. ARL
developed a web-based automated classification system that can create
standardized, classified position descriptions under the new pay
banding system in a matter of minutes. 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 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.
New position descriptions will replace the current DA job descriptions.
The classification standard for each pay band will serve as an
important component in the new position description, which will also
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 duty meets 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. Supervisors 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 Civilian Personnel Advisory Center, Northeast
Region, Civilian Human Resources Agency Center (CPAC/CHRA) 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/CHRA.
Figure 2--FLSA Status
[Pay bands]
------------------------------------------------------------------------
Occupational family I II III IV V
------------------------------------------------------------------------
E&S.................................. N N/E E E E
B&T.................................. N N/E E E
GEN.................................. N N E
------------------------------------------------------------------------
N--Non-Exempt from FLSA; E--Exempt from FLSA.
N/E--Exemption status determined on a case-by-case basis.
Note: Although typical exemption status under the various pay
bands is shown in the above table, actual FLSA exemption
determinations are made on a case-by-case basis.
4. Classification Authority
The NSRDEC Director will have delegated classification authority
and may, in turn, re-delegate this authority to appropriate levels.
Position descriptions will be developed to assist managers in
exercising delegated position classification authority. Managers will
identify the occupational
[[Page 68456]]
family, job series, functional code, specialty work code, pay band
level, and the appropriate acquisition codes. Personnel specialists
will provide ongoing consultation and guidance to managers and
supervisors throughout the classification process. These decisions will
be documented on 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
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/CHRA 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 NSRDEC 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. Pay
for performance allows for more 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 that
are 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 normal 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
and/or in the form of bonuses that are not added to base pay but rather
are given as a lump sum bonus. Other awards such as special acts, time-
off awards, etc., 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 a tangible, measurable objective, 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. The employee and
his/her supervisor will jointly develop the employee's performance
objectives at the beginning of the rating period. 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. 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. 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. As a general rule,
performance objectives should only be changed when 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.
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.
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 is set for each performance element. The sum of the
weights for all of the elements must equal 100.
A single set of performance elements will be used for evaluating
the annual performance of all NSRDEC 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 characteristics the organization encourages in
its workforce toward meeting individual and organizational objectives.
This is particularly true in an environment where technology and work
processes are changing at an increasingly rapid pace. The 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
along with their minimum weight:
(1) Technical Competence (Minimum Weight: 15%)
(2) Interpersonal Skills (Minimum Weight: 10%)
(3) Management of Time and Resources (Minimum Weight: 15%)
[[Page 68457]]
(4) Customer Satisfaction (Minimum Weight: 10%)
(5) Team/Project Leadership (Minimum Weight: 15%)
(6) Supervision/Equal Employment Opportunity (EEO) (Minimum Weight:
25%)
All employees will be rated against the first four performance
elements. Team/Project 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/
EEO 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.
4. Performance Feedback and Formal Ratings
The most effective means of communication is person-to-person
discussion between supervisors and employees of requirements,
performance goals and desired results. Employees and supervisors alike
are expected to actively participate in these discussions for optimum
clarity regarding expectations and identify potential obstacles to
meeting goals. In addition, employees should explain (to the extent
possible) what they need from their supervisor to support goal
accomplishment. The timing of these discussions will vary based on the
nature of work performed, but will occur at least at the mid-point and
end of the rating period. The supervisor and employee will discuss job
performance and accomplishments in relation to the performance
objectives and elements. At least one review, normally the mid-point
review, will be documented as a formal progress review. More frequent,
task specific, discussions may be appropriate in some organizations. In
cases where work is accomplished by a team, team discussions regarding
goals and expectations will be appropriate.
The employee will provide a list of his/her accomplishments to the
supervisor at both the mid-point and end of the rating period. An
employee may elect to provide self-ratings on the performance elements
and/or solicit input from team members, customers, peers, supervisors
in other units, subordinates, and other sources which will permit the
supervisor to fully evaluate accomplishments during the rating period.
At the end of the rating period, following a review of the
employee's accomplishments, the supervisor will rate each of the
performance elements by assigning a score between 0 and 50. Benchmark
performance standards have been developed that describe the level of
performance associated with a score. Using these benchmarks, the
supervisor decides where (at any point on a scale of 0 to 50) the
performance of the employee fits and assigns an appropriate score. It
should be noted that these scores are not discussed with the employee
or considered final until all scores 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.
A total score of 10 or above will result in a rating of acceptable.
A total score of 9 or below will result in a rating of unacceptable,
and requires the employee be placed on a Performance Improvement Plan
(PIP) immediately or following a temporary assignment. A score of 9 or
below in a single element will also result in a rating of unacceptable,
and requires the employee be placed on a PIP. A new 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 should 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 (refer to III.C.13).
As an informal first step, the supervisor and employee may explore
a temporary assignment to another unit in the organization. This
recognizes that conflicts sometimes occur between a supervisor and an
employee, or that an employee may be assigned to a position for which
he/she is not suited. The supervisor is under no obligation to explore
this option prior to taking more formal action. If the temporary
assignment is not possible or has not worked out, and the employee
continues to perform at an unacceptable level or has received an
unacceptable rating, written notification outlining the unacceptable
performance will be provided to the employee. At this point an
opportunity to improve will be structured in a PIP. The supervisor will
identify the items/actions that need to be corrected or improved,
outline required time frames (no less than 30 days) for such
improvement, and provide the employee with any available assistance as
appropriate. Progress will be monitored during the PIP, and all
counseling sessions will be documented.
If the employee's performance is acceptable at the conclusion of
the PIP, no further action is necessary. If a PIP ends prior to the end
of the annual performance cycle and the employee's performance improves
to an acceptable level, the employee is appraised again at the end of
the annual performance cycle.
If the employee fails to improve during 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. For the
most part, employees with an unacceptable rating will not be permitted
to remain at their current base 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 5 percent decrease in
an employee's base pay.
Note: Nothing in this subsection will preclude action under 5
U.S.C. chapter 75, 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. As
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).
If the employee's performance deteriorates to an unacceptable
level, in
[[Page 68458]]
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 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.
6. Reconciliation Process
Following the initial scoring of each employee by the rater, the
rating officials in an organizational unit, along with their next level
of supervision, will meet to ensure consistency and equity of the
ratings. 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. Managers will not prescribe a distribution of total scores.
The pay pool manager will then chair a final review with the rating
officials who report directly to him or her to validate these ratings
and resolve any scoring issues. If consensus cannot be reached in this
process, the pay pool manager makes all final decisions. After this
reconciliation process is complete, scores are finalized. Payouts
proceed according to each employee's final score and adjusted base pay.
Upon approval of this plan, implementing procedures and regulations
will provide details on this process to employees and supervisors.
7. Pay Pools
NSRDEC employees will be placed into pay pools. Pay pools are
combinations of organizational elements (e.g., Directorates, Divisions,
and Teams) that are defined for the purpose of determining performance
payouts under the pay-for-performance system. The guidelines in the
next paragraph are provided for determining pay pools. These guidelines
will normally be followed. However, the NSRDEC Director may deviate
from the guidelines if there is a compelling need to do so and will
document the rationale in writing.
The NSRDEC Director will establish pay pools. Typically, pay pools
will have between 35 and 300 employees. 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. Team leaders classified by the GS Leader Grade Evaluation
Guide will be included in a supervisory pay pool. Those team leaders
who have project responsibility but who do not actually lead other
workers will be included in a non-supervisory pay pool. 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 (excluding the costs of promotions still provided under the
banding system). 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 will
be set at no less than one percent of total adjusted base pay annually.
The sum of these two factors is referred to as the pay pool percentage
factor. The Personnel Management Board will annually review the pay
pool funding and recommend adjustments to the Director to ensure cost
discipline over the life of the demonstration project. Cost discipline
is assured within each pay pool by limiting the total base pay increase
to the funds available, based on what would have been available in the
GS system from within-grade increases, quality step increases and
within-band promotions. The Director may reallocate the amount of funds
assigned to each pay pool as necessary to ensure equity and to meet
unusual circumstances.
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 their final appraisal score. Shares will be awarded on
a continuum as follows:
Score = Shares
50 = 3
40 = 2
30 = 1
21 = .1
10-20 = 0
<=9 = 0 (Performance Improvement Plan required)
fractional shares will be awarded for scores that fall in 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 all scores 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 the 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 all
others in the same pool who are at the same rate of base pay and
receiving the same score. The formula is shown in figure 3.
Figure 3. Formula
[GRAPHIC] [TIFF OMITTED] TN23DE09.000
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 or staffing
supplement.
A pay pool manager is accountable for staying within pay pool
limits. The pay pool manager makes final decisions 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
[[Page 68459]]
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, such
that all of the allocated funds are disbursed as intended. To continue
to provide performance incentives while also 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 total 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 demonstration
project will be the unadjusted base pay rate of GS-15/Step 10, except
for employees in Pay Band V of the E&S occupational family. In this
case, the pay range is as noted in III.A.3
If the organization determines it is appropriate, it may re-
allocate a portion (up to the maximum possible amount) of the
unexpended base pay funds for capped employees to uncapped employees.
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.
In addition a pay pool manager may request approval from the
Personnel Management Board 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. Any base pay increase granted
may not cause the employee to exceed the maximum rate of pay in the
assigned pay band. Examples that might warrant consideration are
extraordinary achievements or accelerated compensation for a local
intern. The funds available for Extraordinary Achievement Recognition
are separately funded within the constraints of the organization's
budget.
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.
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 falls within the top 15 percent of the
band. For employees meeting these criteria, the following provisions
will apply:
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.
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.
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
To provide additional flexibility in motivating and rewarding
individuals and groups, some portion of the performance award budget
will be reserved for special acts and other categories as they occur.
Awards may include, but are not limited to, special acts, patents,
suggestions, on-the-spot, and time-off. The funds available to be used
for traditional 5 U.S.C. awards are separately funded within the
constraints of the organization's budget.
While not directly linked to the pay-for-performance system, this
additional flexibility is important to encourage outstanding
accomplishments and innovation in accomplishing the diverse mission of
the NSRDEC. Additionally, to foster and encourage teamwork among its
employees, organizations may give group awards. Under the demonstration
project, a team may elect to distribute such awards among themselves.
Thus, a team leader or supervisor may allocate a sum of money to a
team for outstanding performance, and the team may decide the
individual distribution of the total dollars among themselves. The
Commanding General, RDECOM 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. This authority may be delegated to the
Director, NSRDEC.
13. General Pay Increase
Employees, who are 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 or RIF service
credit 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. Reverse Feedback
Employee feedback to supervisors is considered essential for the
success of the pay-for-performance system. A feedback instrument for
subordinates to anonymously evaluate the effectiveness of their
supervisors is being developed
[[Page 68460]]
and shall be implemented as part of the demonstration project.
Supervisors and their managers will be provided the results of that
feedback in a format that does not identify individual raters or
ratings. The data will be aggregated into a summary and used to
establish both personal and organizational performance development
goals. The use of this type of instrument will help focus attention on
desired leadership behaviors, structure the feedback in a constructive
manner, and offset the power imbalance that often prevents supervisors
from getting useful feedback from their employees.
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
The qualifications required for placement into a position in a pay
band within an occupational family will be determined using the OPM
Operating Manual for Qualification Standards for GS Positions. Since
the pay bands are anchored to the GS grade levels, the minimum
qualification requirements for a position will be the requirements
corresponding to the lowest GS grade incorporated into that pay band.
For example, for a position in the E&S occupational family Pay Band II,
individuals must meet the basic requirements for a GS-5 as specified in
the OPM Qualification Standard for Professional and Scientific
Positions.
Selective factors may be established for a position in accordance
with the OPM Qualification Standards Operating Manual, when determined
to be critical to successful job performance. These factors will become
part of the minimum requirements for the position, and applicants must
meet them in order to be eligible. If used, selective factors will be
stated as part of the qualification requirements in vacancy
announcements and recruiting bulletins.
2. Delegated Examining
Competitive service positions will be filled through Merit Staffing
and through direct-hire authority or under Delegated Examining. Recent
legislative changes provide for delegation of direct-hire authority for
shortage category positions under the Defense Acquisition Workforce
Improvement Act (DAWIA) at certain levels as well as direct-hire
authority for qualified candidates with an advanced degree to
scientific and engineering positions within STRLs. Where delegated to
the laboratory level, direct-hire authority will be exercised in
accordance with the requirements of the delegation of authority. The
``Rule of Three'' will be eliminated. 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 will be required only when the
number of qualified candidates exceeds 15 or there is a mix of
preference and non-preference applicants. Statutes and regulations
covering veterans' preference will be observed in the selection process
and when rating and ranking are required. If the candidates are rated
and ranked, a random number selection method will be used to determine
which applicants will be referred when scores are tied after the rating
process. Veterans will be referred ahead of non-veterans with the same
score.
3. Legal Authority
For actions taken under the auspices of the demonstration project,
the legal authority, Public Law 103-337, as amended, will be used. For
all other actions, the nature of action codes and legal authority codes
prescribed by OPM, DoD, or DA will continue to be used.
4. Revisions to Term Appointments
NSRDEC conducts a variety of projects that range from three to six
years. The current four-year limitation on term appointments often
forces the termination of term employees prior to completion of
projects they were hired to support. This disrupts the research and
development process and affects the organization's ability to
accomplish the mission and serve its customers.
NSRDEC 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, NSRDEC will have the added authority to hire
individuals under a modified term appointment. These appointments will
be used to fill positions for a period of more than one year, but not
more than a total of five years when the need for an employee's
services is not permanent. The modified term appointments differ from
term employment as described in 5 CFR part 316 in that they may be made
for a period not to exceed five, rather than four years. The Director
is authorized to extend a term appointment one additional year.
Employees hired under the modified term appointment authority are
in a non-permanent status, but 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.
Employees serving under regular term appointments at the time of
conversion to the demonstration project will be converted to the new
modified term appointments provided they were hired for their current
positions under competitive procedures. These employees will be
eligible for conversion to career-conditional appointments if they (1)
Have served two years of continuous service in the term position; (2)
are selected under Merit Promotion procedures for the permanent
position; and (3) are performing at the acceptable level of performance
with a current score of 30 or greater (or equivalent if not yet rated
under the demonstration project). Time served in term positions prior
to conversion to the modified term appointment is creditable, provided
the service was continuous. Employees serving under regular or modified
term appointments under this plan will be covered by the plan's pay-
for-performance system.
5. Extended Probationary Period
The current one-year probationary period will be extended to three
years for all newly hired permanent career-conditional employees in the
E&S occupational family. The purpose of extending the probationary
period is to allow supervisors an adequate period of
[[Page 68461]]
time to fully evaluate an employee's ability to complete a cycle 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.
If a probationary employee's performance is determined to be
satisfactory at a point prior to the end of the three-year probationary
period, a supervisor has the option of ending the probationary period
at an earlier date, but not before the employee has completed one year
of continuous service. If the probationary period is terminated before
the end of the three-year period, the immediate supervisor will provide
written reasons for his/her decision to the next level of supervision
for concurrence prior to implementing the action.
Aside from extending the time period for all newly hired permanent
career-conditional employees in the E&S occupational family, all other
features of the current probationary period are retained including the
potential to remove an employee without providing the full substantive
and procedural rights afforded a non-probationary employee. Any
employee appointed prior to the implementation date will not be
affected.
6. 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 shall 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 shall, 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.
7. Supervisory Probationary Periods
Supervisory probationary periods will be made consistent with 5 CFR
part 315. Employees who have successfully completed the initial
probationary period will be required to complete an additional one-year
probationary period for initial appointment to a supervisory position.
If, during this 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 comparable
position of no lower pay than the position from which promoted or
reassigned.
8. Volunteer Emeritus Corps
Under the demonstration project, the Director will have the
authority to offer retired or separated employees voluntary positions.
The Director may redelegate this authority. Voluntary Emeritus Corps
assignments are not considered employment by the Federal government
(except for purposes of injury compensation). Thus, such assignments do
not affect an employee's entitlement to buyouts or severance payments
based on an earlier separation from Federal service.
The Voluntary Emeritus Corps will ensure continued quality services
while reducing the overall salary line by allowing higher paid
employees to accept retirement incentives with the opportunity to
retain a presence in the NSRDEC community. The program will be
beneficial during manpower reductions, as employees accept retirement
and return to provide a continuing source of corporate knowledge and
valuable on-the-job training or mentoring to less experienced
employees.
To be accepted into the Volunteer Emeritus Corps, a volunteer must
be recommended by an NSRDEC manager to the NSRDEC Director or delegated
authority. Not everyone who applies is entitled to an emeritus
position. The responsible official will document acceptance or
rejection of the applicant. For acceptance, documentation must be
retained throughout the assignment. For rejection, documentation will
be maintained for two years.
To ensure success and encourage participation, the volunteer's
Federal retirement pay (whether military or civilian) will not be
affected while serving in a voluntary capacity. Retired or separated
Federal employees may accept an emeritus position without a break or
mandatory waiting period.
Voluntary Emeritus Corps 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
volunteers may be required to submit a financial disclosure form
annually. The same rules that currently apply to source selection
members will apply to volunteers.
An agreement will be established among the volunteer, the
responsible official, and the Civilian Personnel Advisory Center
(CPAC). The agreement must be finalized before the assumption of duties
and shall include:
(1) A statement that the voluntary assignment does not constitute
an appointment in the Civil Service, is without compensation, and the
volunteer waives any claims against the Government based on the
voluntary assignment;
(2) A statement that the volunteer will be considered a Federal
employee only for the purpose of injury compensation;
(3) The volunteer's work schedule;
(4) Length of agreement (defined by length of project or time
defined by weeks, months, or years);
(5) Support provided by the organization (travel, administrative
support, office space, and supplies);
(6) A statement of duties;
(7) A statement providing that 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 volunteer;
(8) A provision allowing either party to void the agreement with
two working days written notice;
(9) The level of security access required by the volunteer (any
security clearance required by the position will be managed by the
employing organization);
(10) A provision that any publication(s) resulting from his/her
work will be submitted to the Director for review and approval;
(11) A statement that he/she accepts accountability for loss or
damage to Government property occasioned by his/her negligence or
willful action;
(12) A statement that his/her activities on the premises will
conform to the regulations and requirements of the organization;
(13) A statement that he/she will not release any sensitive or
proprietary information without the written approval of the employing
organization and further agrees to execute additional non-disclosure
agreements as appropriate, if required, by the nature of the
anticipated services; and,
(14) A statement that he/she agrees to disclose any inventions made
in the course of work performed at the NSRDEC. The Director has 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 NSRDEC
shall at a minimum 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.
[[Page 68462]]
Exceptions to the provisions in this procedure may be granted by
the Director on a case-by-case basis.
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. The
move from one band to another must result in an increase in the
employee's base pay to be considered a promotion. Positions with known
promotion potential to a specific band within an occupational family
will be identified when they are filled. Not all positions in an
occupational family will have promotion potential to the same band.
Movement from one occupational family to another will depend upon
individual competencies, qualifications and the needs of the
organization. Supervisors may consider promoting employees at any time,
since promotions are not tied to the pay-for-performance system.
Progression within a pay band is based upon performance base 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 ``acceptable'' with a score of
21 or better, or equivalent under a different performance appraisal
system. 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 the 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, or placement actions resulting from 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 technical expert could be
assigned to any project, task, or function requiring similar technical
expertise. Likewise, a manager could be assigned to manage any similar
function or organization consistent with that individual's
qualifications. This flexibility allows broader latitude in assignments
and further streamlines the administrative process and system.
5. Details
Under this plan employees may be detailed 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)
for up to one year. Details may be implemented through an official
personnel action to cover the one-year period. Details to a position in
a higher pay band up to 180 days will be made non-competitively. Beyond
180 days requires competitive procedures.
6. Exceptions to Competitive Procedures
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 reduction-in-force 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 180 days 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.
(9) Impact of person in the job and Factor IV process (application
of the Research Grade Evaluation Guide, Equipment Development Grade
Evaluation Guide, Part III, or similar guides) promotions.
F. Pay Setting
1. General
Pay administration policies will be established by the Personnel
Management Board. These policies will be exempt from Army Regulations
or RDECOM pay fixing policies, but will conform to basic governmental
pay fixing policy. Employees whose performance is acceptable will
receive the full annual general pay increase and the full locality pay.
NSRDEC may make full use of recruitment, retention and relocation
payments as provided for by OPM. Pay band 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 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 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
[[Page 68463]]
will have its own pay ceiling, just as grades do in the current system.
Base pay rates for the various pay bands will be directly keyed to the
GS rates, except as noted in III.A.3. for the Pay Band V of the E&S
occupational family. Other than where a retained rate applies, base pay
will be limited to the maximum base pay payable for each pay band.
3. Pay Setting for Appointment
Upon initial appointment, the individual's pay may be set at the
lowest base pay in the band or anywhere within the band level
consistent with the special qualifications of the individual and the
unique requirements of the position. 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 Personnel Management Board.
Highest Previous Rate (HPR) will be considered in placement actions
authorized under rules similar to the HPR rules in 5 CFR 531.221. Use
of HPR will be at the supervisor's discretion, but if used, HPR is
subject to policies established by the Personnel Management Board.
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 the pay increase will not
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, the demonstration staffing 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 Personnel
Management Board. 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 Personnel Management Board.
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, application under competitive announcements or at the employee's
request, or placement actions resulting from RIF procedures) may be
entitled to pay 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 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 performance
based action, nor will band retention provisions apply.
7. Supervisory and Team Leader Pay Adjustments
Supervisory and team leader pay adjustments may be approved by the
Director based on the recommendation of the Personnel Management Board
to compensate employees with supervisory or team leader
responsibilities. 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 ten percent of
that pay rate for supervisors and up to five percent of that pay rate
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) organizational level of position; and
(7) impact on the organization. The pay adjustment will not apply
to employees in Pay Band V of the E&S occupational family.
After the date of conversion into the demonstration project, a pay
adjustment may be considered under the following conditions:
(1) New hires into supervisory/team leader positions will have
their initial rate of base pay set at the supervisor's discretion
within the pay range of the applicable pay band. 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 that is within the employee's current pay band 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 within the same pay band,
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.
The supervisor/team leader pay adjustment will be reviewed
annually, with possible increases or decreases based on the appraisal
scores for the performance element, Team/Project Leadership or
Supervision/EEO. The initial dollar amount of a base pay adjustment
will be removed when the employee voluntarily leaves the position. The
cancellation of the adjustment under these circumstances is not an
adverse action and is not subject to appeal. If an employee is removed
from a supervisory/team leader position for personal cause (performance
or conduct), the base pay adjustment will be removed under adverse
action procedures. However, if an employee is removed from a non-
probationary
[[Page 68464]]
supervisory/team leader position for conditions other than voluntary or
for personal cause, then 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.
8. Supervisory/Team Leader Pay Differentials
Supervisory and team leader pay differentials may be used by the
Director to provide an incentive and reward supervisors and team
leaders as defined by the OPM GS Supervisory Guide and GS Leader Grade
Evaluation Guide. Pay differentials are not funded from performance pay
pools. A pay differential is a cash incentive that may range up to ten
percent of base pay for supervisors and up to five percent of base pay
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 will not apply to
employees in Pay Band V of the E&S occupational family.
The pay differential may be considered, either during conversion
into or after initiation of the demonstration project, if the
supervisor/team leader has subordinate employees in the same pay band.
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 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 rate for the banded GS grades to which
assigned is a special rate that exceeds the maximum adjusted base pay
for the banded grades (i.e., the maximum GS locality rate for the
banded grades). The staffing supplement is added to the base pay, much
like locality rates are added to base pay. For employees being
converted into the demonstration project, total pay immediately after
conversion will be the same as immediately before (excluding the impact
of any WGI buy-in), but a portion of the total pay will be in the form
of a staffing supplement. Adverse action and pay retention provisions
will not apply to the conversion process, as there will be no change in
total pay.
The staffing supplement is calculated as follows. Upon conversion,
the demonstration base rate will be established by dividing the
employee's former GS adjusted base pay rate (the higher of special rate
or locality rate) by the staffing factor. The staffing factor will be
determined by dividing the maximum special rate for the banded grades
by the GS unadjusted rate corresponding to that special rate (step 10
of the GS rate for the same grade as the special rate). The employee's
demonstration staffing supplement is derived by multiplying the
demonstration base pay rate by the staffing factor minus one.
Therefore, the employee's final demonstration special staffing rate
equals the demonstration base pay rate plus the staffing supplement.
This amount will equal the employee's former GS adjusted base pay rate.
Simplified, the formula is this:
[GRAPHIC] [TIFF OMITTED] TN23DE09.001
[GRAPHIC] [TIFF OMITTED] TN23DE09.002
If an employee is in a band where the maximum GS adjusted base pay
rate for the banded grades is a locality rate, when the employee enters
into the demonstration project, the demonstration base pay rate is
derived by dividing the employee's former GS adjusted base pay rate
(the higher of locality rate or special rate) by the applicable
locality pay factor. The employee's demonstration locality-adjusted
base pay rate will equal the employee's former GS adjusted base pay
rate. Any GS or special rate schedule adjustment will require computing
the staffing supplement again. Employees receiving a staffing
supplement remain entitled to an underlying locality rate, which may
over time supersede the need for a staffing supplement. If OPM
discontinues or decreases a special rate schedule, pay retention
provisions will be applied. Upon geographic movement, an employee who
receives the staffing supplement will have the supplement recomputed.
Any resulting reduction in pay will not be considered an adverse action
or a basis for pay retention.
Application of the staffing supplement is normally intended to
maintain pay comparability for GS employees entering the demonstration
project. However, the staffing supplement formulas must be compatible
with non-Government employees entering the demonstration and also be
adaptable to the special circumstances of employees already in the
demonstration project. The following principles will govern the
modifications necessary to the staffing supplement calculations to
apply the staffing supplement to circumstances other than a GS employee
entering the demonstration project. No adjustment under these
provisions will provide an increase greater than that provided by the
special salary rate table. An increase provided under this authority is
not an equivalent increase, as defined by 5 CFR 531.403. These
principles are stated with the understanding that the necessary
conditions exist that require the application of a staffing supplement:
(1) If a non-Government employee is hired into the demonstration,
then the employee's adjusted base pay will be used for the term,
``former GS adjusted
[[Page 68465]]
base pay rate'' to calculate the demonstration base pay rate.
(2) If a current employee is covered by a new or modified special
salary rate table, then the employee's current demonstration base pay
rate is used to calculate the staffing supplement percentage. The
employee's new demonstration adjusted base pay rate is the sum of the
current demonstration base pay rate and the calculated staffing
supplement.
(3) If a current employee is in an occupational category that is
covered by a special salary rate table and subsequently, the
occupational category becomes covered by a different special salary
rate table with a higher value, then the following steps must be
applied to calculate a new demonstration base pay rate:
Step 1. To obtain a relevance factor, divide the staffing factor
that will become applicable to the employee by the staffing factor that
would have applied to the employee.
Step 2. Multiply the relevance factor resulting from step 1 by the
employee's current demonstration adjusted base pay rate to determine a
new demonstration adjusted base pay rate.
Step 3. Divide the result from step 2 by the applicable staffing
factor to derive a new demonstration base pay rate. This new
demonstration base pay rate will be used to calculate the staffing
supplement and the new demonstration adjusted base pay.
(4) If, after the establishment of a new or adjusted special salary
rate table, an employee enters the demonstration (whether converted/
hired from GS or another pay system, or hired from outside Government)
prior to this intervention, then the employee's adjusted base pay is
used for the term ``former GS adjusted base pay rate'' to calculate the
demonstration base pay rate. This principle prevents double
compensation due to the single event of a new or adjusted special
salary rate table.
(5) If an employee is in an occupational category covered by a new
or modified special salary rate table, and the pay band to which
assigned is not entitled to a staffing supplement, then the employee's
adjusted base pay may be reviewed and adjusted to accommodate the rate
increase provided by the special salary rate table. The review may
result in a one-time base pay increase if the employee's adjusted base
pay equals or is less than the highest special salary grade and step
that exceeds the comparable locality grade and step. Demonstration
project operating procedures will identify the officials responsible to
make such reviews and determinations. The applicable staffing
supplement will be calculated by determining the percentage difference
between the highest step 10 special salary rate and the comparable step
10 locality rate and applying this percentage to the demonstration base
pay rate.
An established base pay rate plus the staffing supplement will be
considered adjusted base pay for the same purposes as a locality rate
under 5 CFR 531.610, i.e., for purposes of retirement, life insurance,
premium pay, severance pay, and advances in pay. It will also be used
to compute worker's compensation payments and lump-sum payments for
accrued and accumulated annual leave.
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 Army Materiel Command/Army/DoD, and self-directed study
via correspondence courses and local colleges and universities. Each
developmental opportunity must result in a product, service, report or
study that will benefit the NSRDEC or customer organization as well as
increase the employee's individual effectiveness. The developmental
opportunity period will not result in loss of (or reduction) in base
pay, leave to which the employee is otherwise entitled, or credit for
service time. The positions of employees on expanded developmental
opportunities may be back-filled (i.e., with temporarily assigned,
detailed or promoted employees or with term employees). However, that
position or its equivalent must be made available to the employee upon
return from the developmental period. The Personnel Management Board
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.
a. Sabbaticals. The NSRDEC Director has the authority to grant paid
or unpaid sabbaticals to all career employees. The purpose of a
sabbatical will be to permit an employee 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 NSRDEC mission as well as increase the employee's
individual effectiveness. Various learning or developmental experiences
may be considered, such as advanced academic teaching; research; self-
directed or guided study; and on-the-job work experience with public,
private, commercial, or private non-profit organizations.
One paid sabbatical of up to twelve months in duration or one
unpaid sabbatical of up to six months in a calendar year may be granted
to an employee in any seven-year period. Employees will be eligible to
request a sabbatical after completion of seven years of Federal
service. Employees approved for a paid sabbatical must sign a service
obligation agreement to continue in service in the NSRDEC for a period
of three times the length of the sabbatical. If an employee voluntarily
leaves NSRDEC before the service obligation is completed he/she is
liable for repayment of expenses incurred by NSRDEC that are associated
with training during the sabbatical. Expenses do not include salary
costs. The NSRDEC 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.
b. Critical Skills Training (Training for Degrees). The NSRDEC
Director has the authority to approve academic degree training
consistent with 5 U.S.C. 4107. Training is an essential component of an
organization that requires continuous acquisition of advanced and
specialized knowledge. Degree training is also a critical tool for
recruiting and retaining employees with or requiring critical skills.
Academic degree training will ensure continuous acquisition of advanced
specialized knowledge essential to the organization, and enhance our
ability to recruit and retain personnel 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 competitive approval of degree
or certificate payment and that such decisions are fully documented.
Employees approved for degree training must sign a service obligation
agreement to continue in service in NSRDEC for a period of three times
the length of the
[[Page 68466]]
training period. If an employee voluntarily leaves the NSRDEC before
the service obligation is completed, he/she is liable for repayment of
expenses incurred by NSRDEC related to the critical skills training.
Expenses do not include salary costs. The NSRDEC Director has the
authority to waive this requirement. Criteria for such waivers will be
addressed in the operating procedures.
H. Reduction-in-Force (RIF) Procedures
RIF procedures will be used when an employee faces separation or
downgrading due to lack of work, shortage of funds, reorganization,
insufficient personnel ceiling, the exercise of re-employment or
restoration rights, or furlough for more than 30 calendar days or more
than 22 discontinuous days. The procedures in 5 CFR part 351 will be
followed with slight modifications pertaining to the competitive areas,
assignment rights, and the calculation of adjusted service computation
date and grade/pay band retention. Modified term appointment employees
are in Tenure Group III for RIF purposes. RIF procedures are not
required when separating these employees when their appointments
expire.
1. Competitive Areas
Separate competitive areas for RIF purposes will be established at
each geographic location. Separate RIF competitive areas for
demonstration and non-demonstration project employees will be
established at each geographic location. Bumps and retreats will occur
only within the same competitive area and only to positions for which
the employee meets all qualification standards including medical and/or
physical qualifications.
Within each competitive area, competitive levels will be
established based on the occupational family, pay band and series which
are similar enough in duties and qualifications that employees can
perform the duties and responsibilities of any other position in the
competitive level upon assignment to it, without any loss of
productivity beyond what is normally expected.
2. Assignment Rights
An employee may displace another employee by bump or retreat to one
band below the employee's existing band. A preference eligible with a
compensable service-connected disability of 30 percent or more may
retreat to positions two bands (or equivalent to five grades) below
his/her current band.
3. Crediting Performance in Reductions in Force (RIF)
Reductions in force are accomplished using the existing procedures
with the retention factors of: Tenure, veterans' preference and length
of service as adjusted by performance ratings, in that order. However,
the additional RIF service credit for performance will be based on the
last three total performance scores during the preceding four years and
will be applied as follows:
Total Performance Scores = Years of Service Credit
48-50 = 10
45-47 = 9
42-44 = 8
39-41 = 7
36-38 = 6
33-35 = 5
30-32 = 4
27-29 = 3
24-26 = 2
20-23 = 1
A score of below 20 adds no credit for RIF retention. (Note: The
additional years of service credit are added, not averaged. Ratings
given under non-demonstration systems will be converted to the
demonstration-rating scheme and provided the equivalent rating credit.)
Employees who have been rated under different patterns of summary
rating levels will receive RIF appraisal credit based on the following:
If there are any ratings to be credited for the RIF given under a
rating system, which includes one or more levels above fully successful
(Level 3), employee will receive:
10 years for Level 5
7 years for Level 4
3 years for Level 3
If an employee comes from a system with no levels above Fully
Successful (Level 3), they will receive credit based on the
demonstration project's modal score for the employee's competitive
area.
In some cases, an employee may not have three ratings of record. If
an employee has fewer than three annual ratings of record, then for
each missing rating, an average of the scores received for the past
four years will be used. When the score is calculated to be a decimal,
it should be rounded to the next higher whole number using the method
described in paragraph III.C.4. For an employee who has no ratings of
record, all credit will be based on the repeated use of a single modal
rating from the most recently completed appraisal period on record.
An employee who has received a written decision that his/her
performance is unacceptable has no bump or retreat rights. An employee
who has been demoted for unacceptable performance, and as of the date
of the issuance of the RIF notice has not received a performance rating
in the position to which demoted, will receive the same additional
retention service credit granted for a Level 3 rating of record. An
employee who has received an acceptable rating following a PIP will
have that rating considered as the current rating of record.
An employee with a current unacceptable rating of record has
assignment rights only to a position held by another employee who has
an unacceptable rating of record.
4. Pay Band and Pay Retention
Pay band 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 of this plan.
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. Pay banding, a new job classification and performance
management system all represent significant cultural change to the
organization. Training will be tailored to address employee concerns
and 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, senior managers,
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;
(7) Assessing performance--giving feedback;
(8) New position descriptions;
(9) Demonstration project administration and formal evaluation.
Various types of training are being considered including videos,
on-line tutorials, and train-the-trainer concepts.
[[Page 68467]]
V. Conversion
A. Conversion to the Demonstration Project
Conversion from current GS/GM 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.
Employees serving under regular term appointments at the time of
the implementation of the demonstration project will be converted to
the modified term appointment if all requirements in III.D.4.
(Revisions to Term Appointments) have been satisfied. Position
announcements, etc., will not be required for these term appointments.
Employees who enter the demonstration project later by lateral
transfer, reassignment or realignment will be subject to the same pay
conversion rules. If conversion into the demonstration project is
accompanied by a geographic move, the employee's GS pay entitlements in
the new geographic area must be determined before performing the pay
conversion.
Employees who are covered by special salary rates prior to entering
the demonstration project will no longer be considered a special rate
employee under the demonstration project. Special conversion rules
apply to special salary rate employees, which are described in III.F.9.
(Staffing Supplements). These employees will be eligible for full
locality pay or a staffing supplement. The adjusted base pay of these
employees will not change. Rather, the employees will receive a new
adjusted base pay rate computed under the staffing supplement rules in
section III. F.9. Adverse action and pay retention provisions will not
apply to the conversion process, as there will be no change in adjusted
base pay.
Employees who are on temporary promotions at the time of conversion
will be converted to a pay band commensurate with the grade of the
position to which temporarily promoted. At the conclusion of the
temporary promotion, the employee will revert to the grade or pay band
that corresponds to the position of record. When a temporary promotion
is terminated, pay will be determined based on the position of record,
with appropriate adjustments to reflect pay events during the temporary
promotion, subject to the specific policies and rules established by
the Personnel Management Board. In no case may those adjustments
increase the pay for the position of record beyond the applicable pay
band maximum base pay. The only exception will be if the original
competitive promotion announcement stipulated that the promotion could
be made permanent; in these cases, actions to make the temporary
promotion permanent will be considered, and if implemented, will be
subject to all existing priority placement programs.
During the first twelve months following conversion, employees will
receive base pay increases for non-competitive promotion equivalents
when the grade level of the promotion is encompassed within the same
pay band, the employee's performance warrants the promotion and
promotions would have otherwise occurred during that period. Employees
who receive an in-level promotion at the time of conversion will not
receive a prorated step increase equivalent as defined below.
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 pay 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
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. Specifically,
adjustments to the employee's base pay for a step increase and a non-
competitive career ladder promotion will be computed as a prorated
share of the current value of the step or promotion increase based upon
the number of full weeks an employee has completed toward the next
higher step or grade at the time the employee moves into the project.
B. Conversion Out of the Demonstration Project
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 the 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 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 base pay under the demonstration
project (including any locality payment or staffing supplement) is
compared with step 4 rates in the highest applicable GS rate range.
(For this purpose, a GS rate range includes a rate in the:
(a) GS base schedule;
(b) Locality rate schedule for the locality pay area in which the
position is located; or
(c) Appropriate special rate schedule for the employee's
occupational series, as applicable.)
[[Page 68468]]
If the series is a two-grade interval series, only odd-numbered
grades are considered below GS-11.
(2) If the employee's adjusted base pay under the demonstration
project equals or exceeds the applicable step 4 adjusted base pay rate
of the highest GS grade in the band, the employee is converted to that
grade.
(3) If the employee's adjusted base pay under the demonstration
project is lower than the applicable step 4 adjusted base pay rate of
the highest grade, the adjusted base pay under the demonstration
project is compared with the step 4 adjusted base pay rate of the
second highest grade in the employee's pay band. If the employee's
adjusted base pay under the demonstration project equals or exceeds the
step 4 adjusted base pay 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 base
pay under the demonstration project rate equals or exceeds the
applicable step 4 adjusted base pay rate of the grade. The employee is
then converted at that grade. If the employee's adjusted base pay is
below the step 4 adjusted base pay rate of the lowest grade in the
band, the employee is converted to the lowest grade.
(5) Exception: If the employee's adjusted base pay under the
demonstration project exceeds the maximum adjusted base pay rate of the
grade assigned under the above-described step 4 rule but fits in the
adjusted base pay rate range for the next higher applicable grade
(i.e., between step 1 and step 4), then the employee shall be converted
to that next higher applicable grade.
(6) 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 lateral transfer into the project, unless
since that time the employee has undergone a reduction in band.
2. Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's demonstration project rates of pay to GS
rates 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 base pay under the demonstration project
(i.e. including any locality payment or staffing supplement) is
converted to a GS adjusted base pay rate on the highest applicable GS
rate range for the converted GS grade. For this purpose, a GS rate
range includes a rate range in:
(a) The GS base schedule,
(b) An applicable locality rate schedule, or
(c) An applicable special rate schedule.
(3) If the highest applicable GS rate range is a locality pay rate
range, the employee's adjusted base pay under the demonstration project
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 base pay would be
the GS base rate corresponding to the converted GS locality rate (i.e.,
same step position).
(4) If the highest applicable GS rate range is a special rate
range, the employee's adjusted base pay under the demonstration project
is converted to a special rate. If this rate falls between two steps in
the special rate schedule, the rate must be set at the higher step. The
converted GS unadjusted rate of base pay will be the GS rate
corresponding to the converted special rate (i.e., same step position).
(5) E&S Pay Band V Employees: An employee in Pay Band V of the E&S
occupational family will convert out of the demonstration project at
the GS-15 level. Procedures will be developed to ensure that employees
entering Pay Band V understand that if they leave the demonstration
project and their adjusted base pay under the project exceeds the
highest applicable GS-15, Step 10 rate, there is no entitlement to
retained pay. Their GS equivalent rate will be deemed to be the rate
for GS-15, Step 10. For those Pay Band V employees paid below the
adjusted GS-15, Step 10 rate, the converted rates will be set in
accordance with paragraph 2.
(6) Employees with Pay Retention: If an employee is receiving a
retained rate under the demonstration project, the employee's GS-
equivalent grade is the highest grade encompassed in his or her band
level. Demonstration project operating procedures will outline the
methodology for determining the GS-equivalent pay rate for an employee
retaining a rate under the demonstration project.
3. 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 CPACs will
continue to process personnel-related actions and provide consultative
and other appropriate services.
D. Automation
The NSRDEC will continue to use the Defense Civilian Personnel Data
System (DCPDS) for the processing of personnel-related data. Payroll
servicing will continue from the respective payroll offices.
An automated tool will used to support computation of performance-
related pay increases and awards and other personnel processes and
systems associated with this project.
E. Experimentation and Revision
Many aspects of a demonstration project are experimental.
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. DoDI 1400.37, July 28, 2009, provides instructions for
adopting other STRL flexibilities, making minor changes to an existing
demonstration project, and requesting new initiatives.
VI. Project Duration
Public Law 103-337 removed any mandatory expiration date for this
demonstration. NSRDEC, 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. Major changes and modifications to the interventions would be
made if formative evaluation data warranted and will be published in
the Federal Register to the extent required. At the five-year point,
the demonstration will be reexamined for permanent implementation,
modification and additional testing, or termination of the entire
demonstration project.
[[Page 68469]]
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
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).
B. Evaluation Model
Appendix D shows an intervention model for the evaluation of the
demonstration project. The model is designated to evaluate two levels
of organizational performance: intermediate and ultimate outcomes. The
intermediate outcomes are defined as the results from specific
personnel system changes and the associated waivers of law and
regulation expected to improve human resource (HR) management (i.e.
cost, quality, timeliness). The ultimate outcomes are determined
through improved organizational performance, mission accomplishment,
and customer satisfaction. Although it is not possible to establish a
direct causal link between changes in the HR management system and
organizational effectiveness, it is hypothesized that the new HR system
will contribute to improved organizational effectiveness.
Organizational performance measures established by the organization
will be used to evaluate the impact of a new HR system on the ultimate
outcomes. The evaluation of the new HR system for any given
organization will take into account the influence of three factors on
organizational performance: context, degree of implementation, and
support of implementation. The context factor refers to the impact
which intervening variables (i.e., downsizing, changes in mission, or
the economy) can have on the effectiveness of the program. The degree
of implementation considers the extent to which the:
(1) HR changes are given a fair trial period;
(2) Changes are implemented; and
(3) Changes conform to the HR interventions as planned.
The support of implementation factor accounts for the impact that
factors such as training, internal regulations and automated support
systems have on the support available for program implementation. The
support for program implementation factor can also be affected by the
personal characteristics (e.g., attitudes) of individuals who are
implementing the program.
The degree to which the project is implemented and operated will be
tracked to ensure that the evaluation results reflect the project as it
was intended. Data will be collected to measure changes in both
intermediate and ultimate outcomes, as well as any unintended outcomes,
which may happen as a result of any organizational change. In addition,
the evaluation will track the impact of the project and its
interventions on veterans and other protected groups, the Merit Systems
Principles, and the Prohibited Personnel Practices. Additional measures
may be added to the model in the event that changes or modifications
are made to the demonstration plan.
The intervention model at Appendix D will be used to measure the
effectiveness of the personnel system interventions implemented. The
intervention model specifies each personnel system change or
``intervention'' that will be measured and shows:
(1) The expected effects of the intervention,
(2) The corresponding measures, and
(3) The data sources for obtaining the measures.
Although the model makes predictions about the outcomes of specific
interventions, causal attributions about the full impact of specific
interventions will not always be possible for several reasons. For
example, many of the initiatives are expected to interact with each
other and contribute to the same outcomes. In addition, the impact of
changes in the HR system may be mitigated by context variables (e.g.,
the job market, legislation, and internal support systems) or support
factors (e.g., training and automation support systems).
C. Evaluation
A modified quasi-experimental design will be used for the
evaluation of the STRL Personnel Demonstration Program. Because most of
the eligible laboratories are participating in the program, a 5 U.S.C.
comparison group will be compiled from the Civilian Personnel Data File
(CPDF). This comparison group will consist of workforce data from
Government-wide research organizations in civilian Federal agencies
with missions and job series matching those in the DoD laboratories.
This comparison group will be used primarily in the analysis of pay
banding costs and turnover rates.
D. Method of Data Collection
Data from several sources will be used in the evaluation.
Information from existing management information systems and from
personnel office records will be supplemented with perceptual survey
data from employees to assess the effectiveness and perception of the
project. The multiple sources of data collection will provide a more
complete picture as to how the interventions are working. The
information gathered from one source will serve to validate information
obtained through another source. In so doing, the confidence of overall
findings will be strengthened as the different collection methods
substantiate each other.
Both quantitative and qualitative data will be used when evaluating
outcomes. The following data will be collected:
(1) Workforce data;
(2) Personnel office data;
(3) Employee attitude surveys;
(4) Focus group data;
(5) Local site historian logs and implementation information;
(6) Customer satisfaction surveys; and
(7) Core measures of organizational performance.
The evaluation effort will consist of two phases, formative and
summative evaluation, covering at least five years to permit inter- and
intra-organizational estimates of effectiveness. The formative
evaluation phase will include baseline data collection and analysis,
implementation evaluation, and interim assessments. The formal reports
and interim assessments will provide information on the accuracy of
project operation, and current information on impact of the project on
veterans and protected groups, Merit System Principles, and Prohibited
Personnel Practices. The summative evaluation will focus on an overall
assessment of project outcomes after five years. The final report will
provide information on how well the HR system changes achieved the
desired goals, which interventions were most effective, and whether the
results can be generalized to other Federal installations.
VIII. Demonstration Project Costs
A. Cost Discipline
An objective of the demonstration project is to ensure in-house
cost discipline. A baseline will be
[[Page 68470]]
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.
Table 1--Projected Development Costs
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
FY09 FY10 FY11 FY12 FY13
----------------------------------------------------------------------------------------------------------------
Training........................ 0K 25K 15K 10K 5K
Project Evaluation.............. 0K 0K 15K 15K 15K
Automation...................... 50K 50K 40K 40K 40K
-------------------------------------------------------------------------------
Totals...................... 50K 75K 70K 65K 60K
----------------------------------------------------------------------------------------------------------------
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 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, U.S.C.
Chapter 31, section 3111: Acceptance of Volunteer Service. Amended
to allow for a Voluntary Emeritus Corps in addition to student
volunteers.
Chapter 31, section 3132: The Senior Executive Service. Definitions
and Exclusions. Waived as necessary to allow for Pay Band V for the E&S
occupational family.
Chapter 33, subchapter 1, section 3318(a): Competitive Service,
Selection from Certificate. Waived in its entirety to eliminate the
requirement for selection using the ``rule of three''.
Chapter 33, section 3324: Appointments to Positions Classified
Above GS-15. Waived the requirement for OPM approval of appointments to
positions classified above GS-15.
Chapter 33, section 3341: Details. Waived as necessary to extend
the time limits for details.
Chapter 41, section 4108 (a)-(c): Waived to the extent necessary to
require the employee to continue in the service of NSRDEC for the
period of the required service and to the extent necessary to permit
the Director, NSRDEC, to waive in whole or in part a right of recovery.
Chapter 43, section 4302: Waived to the extent necessary to
substitute ``pay band'' for ``grade.''
Chapter 43, section 4303: Waived to the extent necessary to (1)
substitute ``pay band'' for ``grade'' and (2) provide that moving to a
lower pay band as a result of not receiving the general pay increase
because of poor performance is not an action covered by the provisions
of sections 4303 (a)-(d).
Chapter 43, section 4304(b)(1) and (3): Responsibilities of the
OPM. Waived in its entirety to remove the responsibilities of the OPM
with respect to the performance appraisal system.
Chapter 51, sections 5101-5112: Classification. Waived as necessary
to allow for the demonstration project's pay banding system.
Chapter 53, sections 5301, 5302 (8) and (9), 5303, and 5304: Pay
Comparability System. Waived to the extent necessary to allow (1)
demonstration project employees to be treated as GS employees, (2)
basic rates of pay under the demonstration project to be treated as
scheduled rates of pay, and (3) employees in Pay Band V of the E&S
occupational family to be treated as ST employees for the purposes of
these provisions.
Chapter 53, section 5305: Special Pay Authority. Waived to the
extent necessary to allow for use of a staffing supplement in lieu of
the special pay authority.
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: (1) Replace ``grade'' with ``pay band;'' (2)
allow demonstration project employees to be treated as GS employees;
(3) provide that pay band retention provisions do not apply to
conversions from GS special rates to demonstration project pay, as long
as total pay is not reduced, to reductions in pay due solely to the
removal of a supervisory pay adjustment upon voluntarily leaving a
supervisory position and to movements to a lower pay band as a result
of not receiving the general pay increase due to a rating of record of
``Unacceptable;'' (4) 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; (5) 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; and (6) ensure that, for employees of Pay Band V of 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).
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.
[[Page 68471]]
Chapter 55, section 5542(a)(1)-(2): Overtime rates; computation.
Waived to the extent necessary to provide that the GS-10 minimum
special rate (if any) for the special rate category to which a project
employee belongs is deemed to be the ``applicable special rate'' in
applying the pay cap provisions in 5 U.S.C. 5542.
Chapter 55, section 5545(d): Hazardous duty differential. 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 V of the E&S occupational family.
Chapter 55, section 5547 (a)-(b): Limitation on premium pay. Waived
to the extent necessary to provide that the GS-15 maximum special rate
(if any) for the special rate category to which a project employee
belongs is deemed to be the ``applicable special rate'' in applying the
pay cap provisions in 5 U.S.C. 5547.
Chapter 57, section 5753, 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 and (2) employees in Pay Band V of
the E&S occupational family to be treated as ST employees.
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
exclude from the definition of employee, except for those with
veterans' preference, those serving a probationary period under an
initial appointment.
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)
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 upon voluntary
movement to a non-supervisory or non-team leader position.
B. Waivers to Title 5 CFR
Part 300, sections 300.601 through 605: Time-in-Grade restrictions.
Waived to eliminate time-in-grade restrictions in the demonstration
project.
Part 308, sections 308.101 through 308.103: Volunteer service.
Waived to allow for a Voluntary Emeritus Corps in addition to student
volunteers.
Part 315, sections 315.801(a), 315.801(b)(1), 315.801(c),
315.801(e) and 315.802(a) and (b)(1): Probationary period and length of
probationary period. Waived to the extent necessary to allow for up to
a three-year probationary period and to exclude from the definition of
employee, except for those with veterans' preference, those serving a
probationary period under an initial appointment.
Part 315, section 315.901: Statutory requirement. Waived to the
extent necessary to replace ``grade'' with ``pay band.''
Part 316, section 316.301: Purpose and duration. Waived to the
extent necessary to allow for term appointments for more than 4 years.
Part 316, section 316.303: Tenure of term employees. Waived to the
extent necessary to allow term employees to acquire competitive status.
Part 332, section 332.404: Order of selection from certificates.
Waived to the extent necessary to eliminate the requirement for
selection using the ``rule of three.'' 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 rating when there are 15 or
fewer qualified candidates and no qualified preference eligibles.
Part 351.402(b): Competitive area. Waived to the extent necessary
to allow separate competitive areas for demonstration and non-
demonstration project employees.
Part 351.403: Competitive level. Waived to the extent necessary to
replace ``grade'' with ``pay band.''
Part 351, section 351.504: Credit for performance. Waived as
necessary to revise the method for adding years of service based on
performance.
Part 351, section 351.701: Assignment involving displacement.
Waived to the extent that bump and retreat rights are limited to one
pay band with the exception of 30 percent preference eligibles who are
limited to two bands (or equivalent of five grades), and to limit the
assignment rights of employees with an unacceptable current rating of
record to a position held by another employee with an unacceptable
rating of record.
Part 410, section 410.309: Agreements to continue in service.
Waived to the extent necessary to allow the NSRDEC 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, Performance based reduction in grade and removal actions:
Modified to the extent that an employee may be removed, reduced in pay
band level with a reduction in pay, reduced in pay without a reduction
in pay band level and reduced in pay band level without a reduction in
pay based on unacceptable performance. Also, modified to delete
reference to critical element. For employees who are reduced in pay
band level without a reduction in pay, sections 432.105 and 432.106(a)
do not apply.
Part 432, section 432.102: Coverage. Waived to the extent that the
term ``grade level'' is replaced with ``pay band.''
Part 432, section 432.104: Addressing unacceptable performance.
References to ``critical elements'' are deleted as all elements are
critical and adding that the employee may be ``reduced in pay band
level, or pay, or removed'' if performance does not improve to an
acceptable level during a reasonable opportunity period.
Part 432, section 432.105(a)(2): Proposing and taking action based
on unacceptable performance: Waive ``If an employee has performed
acceptably for 1 year'' to allow for ``within two years from the
beginning of a PIP.''
Part 511, subpart A: General Provisions, and subpart B: Coverage of
the GS. Waived to the extent necessary to allow for the demonstration
project's classification and pay banding structure.
Part 511, section 511.601: Applicability of regulations.
Classification appeals modified to the extent that white collar
positions established under the project plan, although specifically
excluded from title 5, are covered by the classification appeal process
outlined in this section, as amended below.
Part 511, section 511.603(a): Right to appeal. Waived to the extent
necessary to substitute ``pay band'' for ``grade.''
Part 511, section 511.607(b): Non-Appealable Issues. Add to the
list of
[[Page 68472]]
issues that are neither appealable nor reviewable, the assignment of
series under the project plan to appropriate occupational families and
the demonstration project classification criteria.
Part 530, subpart C: Special Rate Schedules for Recruitment and
Retention. Waived in its entirety to allow for staffing supplements.
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 V of the E&S occupational family, to be
treated as GS employees; (2) base rates of pay under the demonstration
project to be treated as scheduled annual rates of pay; and (3)
employees in Pay Band V of the E&S occupational family to be treated as
ST employees for the purposes of these provisions.
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 V 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 550, sections 550.105 and 550.106: Bi-weekly and annual
maximum earnings limitations. Wd to the extent necessary to provide
that the GS-15 maximum special rate (if any) for the special rate
category to which a project employee belongs is deemed to be the
``applicable special rate'' in applying the pay cap provisions in 5
U.S.C. 5547.
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 V 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 and (2) employees in
Pay Band V of the E&S occupational family to be treated as ST employees
for the purposes of these provisions.
Part 591, subpart B: Cost-of-Living Allowance and Post
Differential--Non-foreign Areas. Waived to the extent necessary to
allow (1) demonstration project employees to be treated as employees
under the GS and (2) employees in Band V of the E&S occupational family
to be treated as ST employees for the purposes of these provisions.
Part 752, sections 752.101, 752.201, 752.301, and 752.401:
Principal statutory requirements and Coverage. Waived to the extent
necessary to allow for up to a three-year probationary period and to
exclude from the definition of employee, except for those with
veterans' preference, those serving a probationary period under an
initial appointment.
Part 752, section 752.401: Coverage. Waived to the extent necessary
to replace ``grade'' with ``pay band,'' and to 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.
Part 752, section 752.401(a)(4): Coverage. 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 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.
Appendix A: NSRDEC Employees by Duty Location (Totals Exclude SES, ST,
DCIPS, and FWS Employees)
The servicing personnel office for all employees is the Natick
CPAC, Northeast Region, CHRA. Servicing Personnel Offices = 1.
------------------------------------------------------------------------
NSRDEC
Duty Location Employees
------------------------------------------------------------------------
Natick, MA.................................................. 694
Arlington, VA............................................... 1
Cambridge, MA............................................... 1
Fort Belvoir, VA............................................ 1
Fort Benning, GA............................................ 2
Fort Bragg, NC.............................................. 1
Fort Lee, VA................................................ 1
Fort Leonard Wood, MO....................................... 1
Fort Polk, LA............................................... 1
Haymarket, VA............................................... 1
London, England............................................. 1
Lowell, MA.................................................. 2
North Dartmouth, MA......................................... 1
Picatinny, NJ............................................... 1
Stafford, VA................................................ 1
Tampa, FL................................................... 1
Tokyo, Japan................................................ 1
Total All Employees......................................... 712
------------------------------------------------------------------------
Appendix B: Occupational Series by Occupational Family
I. Engineering & Science
0062 Clothing Design Series
0180 Psychology Series
0190 General Anthropology Series
0401 General Natural Resources Management and Biological Sciences
Series
0403 Microbiology Series
0413 Physiology Series
0630 Dietician and Nutritionist Series
0801 General Engineering Series
0803 Safety Engineering Series
0806 Materials Engineering Series
0810 Civil Engineering Series
0830 Mechanical Engineering Series
0850 Electrical Engineering Series
0854 Computer Engineering Series
0855 Electronics Engineering Series
0861 Aerospace Engineering Series
0893 Chemical Engineering Series
0896 Industrial Engineering Series
1301 General Physical Science Series
1310 Physics Series
1320 Chemistry Series
1382 Food Technology Series
1384 Textile Technology Series
1515 Operations Research Series
1520 Mathematics Series
1530 Statistics Series
1550 Computer Science Series
[[Page 68473]]
II. Business/Technical
0201 Human Resources Management Series
0301 Miscellaneous Administration and Program Series
0340 Program Management Series
0343 Management and Program Analysis Series
0346 Logistics Management Series
0501 Financial Administration and Program Series
0510 Accounting Series
0560 Budget Analysis Series
0802 Engineering Technician Series
0856 Electronics Technician Series
0905 General Attorney Series
0950 Paralegal Specialist Series
1001 General Arts and Information Series
1060 Photography Series
1071 Audiovisual Production Series
1082 Writing and Editing Series
1083 Technical Writing and Editing Series
1084 Visual Information Series
1101 General Business and Industry Series
1102 Contracting Series
1150 Industrial Specialist Series
1222 Patent Attorney
1311 Physical Science Technician Series
1410 Librarian Series
1670 Equipment Services Series
2210 Information Technology Management Series
III. General Support
0181 Psychology Aid and Technician Series
0203 Human Resources Assistant Series
0303 Miscellaneous Clerk and Assistant Series
0318 Secretary Series
0326 Office Automation Clerical and Assistance Series
0344 Management Clerical and Assistance Series
0503 Financial Clerical and Technician Series
0525 Accounting Technician Series
0561 Budget Clerical and Assistance Series
0986 Legal Assistance Series
1087 Editorial Assistance Series
1411 Library Technician Series
2005 Supply Clerical and Technician Series
Appendix C: Performance Elements
Each performance element is assigned a minimum weight. The total
weight of all elements in a performance plan must equal 100. The
supervisor assigns each element a weight represented as a percentage
of the 100 in accordance with individual duties/responsibilities
objectives and the organization's mission and goals. All employees
will be rated against the first four performance elements listed
below. Those employees whose duties require team leader
responsibilities will be rated on element 5. All managers/
supervisors will be rated on element 6.
1. Technical Competence
The extent to which an employee demonstrates: The technical
knowledge, skills, abilities and initiative to: Produce the quality
and quantity of work as defined in individual performance objectives
and assigned tasks; innovation and improvement in addressing
technical challenges, sound decisions and recommendations that get
the desired results; the ability to solve technical problems;
initiative to maintain/increase their technical skills through
professional growth, training and/or developmental/special
assignments. Minimum Weight: 15%.
2. Interpersonal Skills
The employee's demonstrated ability to: Provide or exchange
ideas and information; listen effectively so that resultant actions
show complete comprehension; coordinate actions to include and
inform appropriate personnel of decisions and actions; be an
effective team player; be considerate of differing viewpoints,
exhibit willingness to compromise on areas of difference for win-win
solutions; exercise tact and diplomacy; maintain effective
relationships both within and external to the organization; readily
give assistance and show appropriate respect and courtesy. Minimum
Weight: 10%.
3. Management of Time and Resources
The extent to which an employee demonstrates ability to: Meet
schedules/milestones, prioritize/balance tasks, utilize and, where
appropriate, properly control available resources (to include for
supervisors: Allocates/monitors resources and equitably distributes
work to subordinates appropriately); execute contract management
responsibilities; respond to changing requirements and re-direction;
create/implement new ideas to improve work efficiencies. Minimum
Weight: 15%.
4. Customer Satisfaction
The extent to which an employee: Achieves customer and mission
goals/objectives; provides acceptable solutions/ideas in response to
customer needs; understands and manages customers' expectations,
constraints and sensitivities; demonstrates customer care through
facilitating, responsive, courteous and reliable actions; promotes
relationships of trust and respect; markets to potential customers/
develops new customers and programs within the scope of job
responsibility. Minimum Weight: 10%.
5. Team/Project Leadership
The extent to which a team/project leader: Ensures that the
organization's/project's strategic plan, mission, vision and values
are communicated into the team/project plans, products and services;
provides guidance/direction to organization/project personnel; leads
the team to achieve project objectives; coordinates/balances
workload among team/project personnel; informs the supervisor of
team/project/individual work accomplishments, problems, and training
needs; resolves simple, informal complaints, informs supervisor of
performance management issues/problems. (Mandatory for non-
supervisory team leaders, optional for project leaders and program
managers.) Minimum Weight: 15%.
6. Supervision and EEO
The extent to which a supervisor: Leads, manages, plans,
communicates and assures implementation of strategic/operational
goals and objectives of the organization; develops individual
performance objectives, evaluates performance, evaluates performance
by defining expectations, gives feedback and provides recognition;
initiates personnel actions to recruit, select, promote and/or
reassign employees in a timely manner; develops subordinates using
positive motivational techniques on job expectations, training
needs, and attainment of career goals; recognizes and rewards
quality performance, takes corrective action to resolve performance
or conduct issues; applies EEO and Merit Principles, and creates a
positive, safe and challenging work environment; ensures appropriate
internal controls to prevent Fraud, waste or abuse and safeguards
assigned property/resources. (Mandatory for managers/supervisors).
Minimum Weight: 25%.
Appendix D: Intervention Model
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Intervention Expected effects Measures Data sources
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1. Compensation:
a. Pay banding................... Increased Perceived flexibility.. Attitude survey.
organizational
flexibility.
Reduced administrative Actual/perceived time Personnel office data,
workload, paper work savings. PME
reduction. results, attitude
survey
Advanced in-hire rates. Starting salaries of Workforce data.
banded v. non-banded
employees.
Slower pay progression Progression of new Workforce data.
at entry levels. hires over time by
band, career path.
Increased pay potential Mean salaries by band, Workforce data.
group, demographics.
Total payroll costs.... Personnel office data.
Increased satisfaction Employee perceptions of Attitude survey.
with advancement. advancement.
Increased pay Pay satisfaction, Attitude survey.
satisfaction. internal/external
equity.
[[Page 68474]]
Improved recruitment... Offer/acceptance Personnel office data.
ratios; Percent
declinations.
b. Conversion buy-in............. Employee acceptance.... Employee perceptions of Attitude survey.
equity, fairness.
Cost as a percent of Workforce data.
payroll.
c. Pay differentials/............ Increased incentive to Perceived motivational Attitude survey.
adjustments...................... accept supervisory/ power.
team leader positions.
2. Performance Management:
a. Cash awards/.................. Reward/motivate Perceived motivational Attitude survey.
bonuses......................... performance. power.
To support fair and Amount and number of Workforce data.
appropriate awards by group,
distribution of awards. demographics.
Perceived fairness of Attitude survey.
awards.
Satisfaction with Attitude survey.
monetary awards.
b. Performance based pay Increased pay- Perceived pay- Attitude survey.
progression. performance link. performance link.
Perceived fairness of Attitude survey.
ratings.
Improved performance Satisfaction with Attitude survey.
feedback. ratings.
Employee trust in Attitude survey
supervisors.
Adequacy of performance Attitude survey.
feedback.
Decreased turnover of Turnover by performance Workforce data.
high performers/ rating scores.
Increased turnover of
low performers.
Differential pay Pay progression by Workforce data.
progression of high/ performance scores,
low performers. career path.
Alignment of Linkage of performance Performance objectives,
organizational and objectives to strategic plans.
individual performance strategic plans/goals.
objectives and results.
Increased employee Perceived involvement.. Attitude survey/focus
involvement in groups.
performance planning
and assessment.
Performance management. Personnel regulations.
c. New appraisal process......... Reduced administrative Employee and supervisor Attitude survey.
burden. perceptions of revised
procedures.
Improved communication. Perceived fairness of Focus groups.
process.
d. Performance development....... Better communication of Feedback and coaching Focus groups.
performance procedures used.
expectations.
Personnel office data.
Time, funds spent on Training records.
training by
demographics.
Improved satisfaction Perceived workforce Attitude survey.
and quality of quality.
workforce.
3. ``White Collar'' Classification:
a. Improved classification Reduction in amount of Time spent on Personnel office data.
systems with generic standards. time and paperwork classification
spent on procedures.
classification.
Reduction of paperwork/ Personnel office data.
number of personnel
actions
(classification/
promotion).
Ease of use............ Managers' perceptions Attitude survey.
of time savings, ease
of use.
b. Classification authority Increased supervisory Perceived authority.... Attitude survey.
delegated to managers. authority/
accountability.
Decreased conflict Number of Personnel records.
between management and classification
personnel staff. disputes/appeals pre/
post.
Management satisfaction Attitude survey.
with service provided
by personnel office.
No negative impact on Internal pay equity.... Attitude survey.
internal pay equity.
c. Dual career ladder............ Increased flexibility Assignment flexibility. Focus groups, surveys.
to assign employees.
Improved internal Perceived internal Attitude survey.
mobility. mobility.
Increased pay equity... Perceived pay equity... Attitude survey.
Flatter organization... Supervisory/non- Workforce data.
supervisory ratios.
Attitude survey.
Improved quality of Employee perceptions of Attitude survey.
supervisory staff. quality or supervisory.
4. Modified RIF:
Minimize loss of high Separated employees by Workforce data.
performing employees demographics,
with needed skills. performance scores.
Attitude survey/focus
group.
[[Page 68475]]
Contain cost and Satisfaction with RIF Attitude survey/focus
disruption. Process. group.
Cost comparison of Personnel office/budget
traditional vs. data.
Modified RIF.
Time to conduct RIF- Personnel office data.
personnel office data.
Number of Appeals/ Personnel office data.
reinstatements.
5. Hiring Authority:
a. Delegated Examining........... Improved ease and Perceived flexibility Attitude survey.
timeliness of hiring in authority to hire.
process.
Improved recruitment of Offer/accept ratios.... Personnel office data.
employees in shortage
categories.
Percent declinations... Personnel office data.
Timeliness of job Personnel office data.
offers.
GPAs of new hires, Personnel office data.
educational levels.
Reduced administrative Actual/perceived skills Attitude survey.
workload/paperwork
reduction.
b. Term Appointment Authority.... Increased capability to Number/percentage of Workforce data.
expand and contract conversions from
workforce. modified term to
permanent appointments.
....................... Personnel office data.
c. Flexible Probationary Period.. Expanded employee Average conversion Workforce data.
assessment. period to permanent
status.
Personnel office data.
Number/percentage of Workforce data.
employees completing
probationary period.
Personnel office data.
Number of separations Workforce data.
during probationary
period.
Personnel office data.
6. Expanded Development
Opportunities:
a. Sabbaticals................... Expanded range of Number and type of Workforce data.
professional growth opportunities taken.
and development.
Application of enhanced Employee and supervisor Attitude survey.
knowledge and skills perceptions.
to work product.
b. Critical Skills Training...... Improved organizational Number and type of Personnel office data.
effectiveness. training.
Placement of employees, Personnel office data.
skills imbalances
corrected.
Employee and supervisor Attitude survey.
perceptions.
Application of Attitude survey/focus
knowledge gained from group.
training.
7. Combination Of All Interventions:
All.............................. Improved organizational Combination of All data sources.
effectiveness. personnel measures.
Improved management of Employee/Management job Attitude survey.
workforce. satisfaction
(intrinsic/extrinsic).
Improved planning...... Planning procedures.... Strategic planning
documents.
Perceived effectiveness Attitude survey.
of planning procedures.
Improved cross Actual/perceived Organizational charts.
functional coordination.
coordination.
Increased product Customer satisfaction.. Customer satisfaction
success. surveys.
Cost of innovation..... Project training/ Demo project office
development costs records
(staff salaries,
contract cost,
training hours per
employee).
Contract documents.
8. Context:
Regionalization.................. Reduced servicing HR servicing ratios.... Personnel office data,
ratios/costs. workforce data.
Average cost per Personnel office data,
employee served. workforce data.
No negative impact on Service quality, Attitude survey/focus
service quality. timeliness. groups.
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[FR Doc. E9-30478 Filed 12-23-09; 8:45 am]
BILLING CODE 5001-06-P