[Federal Register Volume 75, Number 174 (Thursday, September 9, 2010)]
[Notices]
[Pages 55110-55157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22203]



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Part IV





Department of Defense





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Science and Technology Reinvention Laboratory Personnel Management 
Demonstration Project, Department of the Army, Army Research, 
Development and Engineering Command, Tank Automotive Research, 
Development and Engineering Center (TARDEC); Notice

Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / 
Notices

[[Page 55110]]


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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, Tank Automotive 
Research, Development and Engineering Center (TARDEC)

AGENCY: Office of the Deputy Under Secretary of Defense (Civilian 
Personnel Policy) (DUSD (CPP)), Department of Defense (DoD).

ACTION: Notice of proposal to design and implement a personnel 
management demonstration project.

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SUMMARY: Section 342(b) of the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 1995, Public Law 103-337, (10 U.S.C. 2358 
note), as amended by section 1109 of NDAA for FY 2000, Public Law 106-
65, and section 1114 of NDAA for FY 2001, Public Law 106-398, 
authorizes the Secretary of Defense to conduct personnel demonstration 
projects at 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 1105 of the 
NDAA for FY 2010, Public Law 111-84, 123 Stat. 2486, October 28, 2009, 
designates additional DoD laboratories as STRLs for the purpose of 
designing and implementing personnel management demonstration projects 
for conversion of employees from the personnel system which applied on 
October 28, 2009. The TARDEC is listed in subsection 1105(a) of NDAA 
for FY 2010 as one of the newly designated STRLs.

DATES: TARDEC's demonstration project proposal may not be implemented 
until a 30-day comment period is provided, comments addressed, and a 
final Federal Register notice published. To be considered, written 
comments must be submitted on or before October 12, 2010. 
Implementation of this demonstration project will begin no earlier than 
February 1, 2011.

ADDRESSES: Send comments on or before the comment due date by mail to 
Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key Boulevard, 
Arlington, VA 22209-5144; by fax to (703) 696-5462; or by e-mail to 
[email protected].

FOR FURTHER INFORMATION CONTACT: TARDEC: U.S. Army Tank Automotive 
Research, Development and Engineering Center (TARDEC), 6501 East 11 
Mile Road, Warren, MI 48397-5000, ATTN: RDTA-COS/MS 204 Mr. Gregory L 
Berry, Warren, MI 48397-5000.
    DoD: Ms. Betty Duffield, CPMS-PSSC, Suite B-200, 1400 Key 
Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION:

1. Background

    Since 1966, many studies of 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) the 
Contribution-based Compensation and Appraisal System (CCAS); (8) 
academic degree and certificate training; (9) sabbaticals; (10) a 
Voluntary Emeritus Corps; (11) direct hire authority for candidates 
with advanced degrees for scientific and engineering positions; and 
(12) Distinguished Scholastic Achievement Appointment Authority.

2. Overview

    The NDAA for FY 2010 not only designated new STRLs but also 
repealed the National Security Personnel System (NSPS) mandating 
conversion of NSPS covered employees to their former personnel system 
or one that would have applied absent the NSPS. A number of TARDEC 
employees are covered by the NSPS and must be converted to another 
personnel system. Section 1105 of NDAA for FY 2010 stipulates the STRLs 
designated in subsection (a) of section 1105 may not implement any 
personnel system, other than a personnel system under an appropriate 
demonstration project as defined in section 342(b) of Public Law 103-
337, as amended, without prior congressional authorization. In 
addition, any conversion under the provisions of section 1105 shall not 
adversely affect any employee with respect to pay or any other term or 
condition of employment; shall be consistent with section 4703(f) of 
title 5 United States Code (U.S.C.); and shall be completed within 18 
months after enactment of NDAA for FY 2010. Therefore, since TARDEC is 
both designated an STRL by section 1105 of NDAA for FY 2010 and has 
NSPS covered employees, it must convert, at a minimum, its NSPS covered 
employees to a personnel management demonstration project before the 
end of April 2011.

3. Access to Flexibilities of Other STRLs

    Flexibilities published in this Federal Register notice shall be 
available for use by the STRLs previously enumerated in section 
9902(c)(2) of title 5, United States Code, which are now redesignated 
in section 1105 of the NDAA for FY 2010, Public Law 111-84, 123 Stat. 
2486, October 28, 2009, if they wish to adopt them in accordance with 
DoD Instruction 1400.37; pages 73248 to 73252 of volume 73, Federal 
Register; and after the fulfilling of any collective bargaining 
obligations.

    Dated: September 1, 2010.
Mitchell S. Bryman,
Alternate 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. Contribution-Based Compensation and Appraisal System (CCAS)
    D. Hiring Authority
    E. Internal Placement
    F. Pay Administration
    G. Employee Development
    H. Reduction-in-Force (RIF) Procedures
IV. Implementation Training
V. Conversion Into the Demonstration Project
    A. Conversion From NSPS to the Demonstration Project
    B. Conversion From Non-NSPS System to the Demonstration Project
    C. Movement Out of the Demonstration Project

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    D. Personnel Administration
    E. Automation
    F. 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
Appendix A: TARDEC Employees by Duty Location
Appendix B: Occupational Series by Occupational Family
Appendix C: Contribution-Based Compensation and Appraisal System 
(CCAS) Factors
Appendix D: Intervention Model

I. Executive Summary

    TARDEC is a subordinate organization of the U.S. Army Research, 
Development and Engineering Command (RDECOM). TARDEC is the U.S. Army's 
Ground Vehicle Center of Excellence and the ground systems integration 
domain owner for RDECOM. TARDEC provides engineering and scientific 
expertise for DoD manned and unmanned ground systems and ground support 
systems. It is the Nation's laboratory for advanced military automotive 
technology and the Army's lead for advanced science and technology 
research, demonstration, development, and full Life Cycle engineering 
for ground vehicle electronics and architecture, power and mobility, 
intelligent ground systems, maneuver support and sustainment, and 
survivability.
    At TARDEC, the top priority is to deliver the most advanced 
technology solutions to improve the Nation's ground vehicle fleet. To 
do this effectively requires more than just hard work and dedication. 
It takes leadership, vision, and the determination to execute that 
vision. To be truly successful, the workforce needs to be able to lead, 
innovate, integrate, and deliver.
    To achieve this goal, TARDEC must be able to hire, retain, and 
continually motivate enthusiastic, innovative, and highly-educated 
scientists and engineers, supported by accomplished business management 
and administrative 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 TARDEC 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 TARDEC 
mission, adjust the workforce for change, and improve workforce 
satisfaction. The TARDEC proposed demonstration project is similar to 
the Department of Defense Civilian Acquisition Workforce Personnel 
Demonstration Project, commonly known as the ``Acq Demo.'' TARDEC has 
been using the Acq Demo's Contribution-Based Compensation and Appraisal 
System (CCAS) and its pay banding structure for a number of years. The 
TARDEC Project also uses concepts from the U.S. Army Communications-
Electronics Research, Development and Engineering Center (CERDEC) 
demonstration project and the Naval Research Laboratory demonstration 
project. The results of the project will be evaluated within five years 
of implementation.

II. Introduction

A. Purpose

    The purpose of the project is to demonstrate that the effectiveness 
of DoD STRLs can be enhanced by expanding opportunities available to 
employees and by allowing greater managerial control over personnel 
functions through a more responsive and flexible personnel system. 
Federal laboratories need more efficient, cost-effective, and timely 
processes and methods to acquire and retain a highly creative, 
productive, educated, and trained workforce. This project, in its 
entirety, attempts to improve employees' opportunities and provide 
managers, at the lowest practical level, the authority, control, and 
flexibility needed to achieve the highest quality organization and hold 
them accountable for the proper exercise of this authority within the 
framework of an improved personnel management system.
    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

    TARDEC has participated in a number of personnel systems and 
personnel demonstrations over the past 25 years. These include the 
current Civil Service General Schedule (GS) system, the Acq Demo 
Project, and the NSPS. In October 2009, as part of the NDAA for FY 
2010, TARDEC was designated as a STRL for the purpose of designing and 
implementing a personnel management demonstration project for 
conversion of employees from the personnel system(s) which applied to 
them on October 28, 2009. TARDEC's experience with each of these prior 
personnel systems was that, although each had positive features, each 
also had negative aspects. As a result of TARDEC's experience, it was 
determined that certain features from the earlier systems were 
worthwhile to carry forward and any shortcomings/limitations corrected 
or alleviated.
    The current GS system has existed in essentially the same form 
since 1949. 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 in 1980 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 TARDEC 
must be able to recruit and retain scientific, engineering, acquisition 
support and other professionals, and skilled technicians. TARDEC 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 and be in compliance 
with public law.
    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.
    TARDEC's proposed personnel management demonstration project, by 
building on previous strengths and addressing shortcomings, is intended 
to provide the highest potential for movement to a single system that 
will

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meet the needs of TARDEC and all its employees.

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's ``China Lake'' 
and the National Institute of Standards and Technology (NIST) 
demonstration projects have produced impressive statistics on increased 
job satisfaction and quality of work 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 TARDEC 
workforce will facilitate increased:
    1. Quality in the workforce and resultant products;
    2. Timeliness of key personnel processes;
    3. Retention of ``excellent performers'';
    4. Success in recruitment of personnel with critical skills;
    5. Management authority and accountability;
    6. Satisfaction of customers; and
    7. Workforce satisfaction with the personnel management system.
    An evaluation model was developed for the Director, Defense, 
Research and Engineering (DDR&E) in conjunction with STRL service 
representatives and the Office of Personnel Management (OPM). The model 
will measure the effectiveness of this demonstration project and will 
be used to measure the results of specific personnel system changes.

D. Participating Organizations

    TARDEC is comprised of employees located at the main site in 
Warren, MI, with others geographically dispersed at the locations shown 
in Appendix A. TARDEC has employees matrixed to Program Executive 
Office Combat Support and Combat Service Support; Program Executive 
Office Ground Combat Systems; Program Executive Office Integration; and 
Tank Automotive Command (TACOM) Life Cycle Management Command (LCMC) 
Joint Project Office. Successor organizations will continue coverage in 
the demonstration project.

E. Participating Employees and Union Representation

    This demonstration project will cover approximately 1,427 TARDEC 
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 covered by the Defense 
Civilian Intelligence Personnel System (DCIPS), Department of Army (DA) 
and Army Command centrally funded interns, or students employed under 
the Summer Hire Program.
    Department of Army and Army Material Command centrally funded 
interns will not be converted to the demonstration project until they 
reach their full performance level. They will continue to be covered 
under the Total Army Performance Evaluation System (TAPES). The 
American Federation of Government Employees (AFGE) Local 1658 
represents approximately 90% of TARDEC's professional and non-
professional workforce.
    To foster union acceptance of TARDEC's proposed personnel 
demonstration project, initial discussions with the Union officials 
began in December 2009. Negotiations will begin in earnest after 
publication of this Federal Register notice (FRN). TARDEC 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, as 
applicable.

F. Project Design

    In October 2009, section 1105 of NDAA for FY 2010 directed TARDEC 
to transition to a laboratory demonstration project. TARDEC senior 
leadership decided to move toward adopting many aspects of both the Acq 
Demo and the CERDEC laboratory personnel demonstration project as 
modified by this FRN. The Acq Demo project was approved in 1999 and the 
CERDEC project was approved in 2001. TARDEC hopes to benefit from using 
the best practices from these demonstration projects.

G. Personnel Management Board

    1. TARDEC is creating 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 will be 
senior leaders appointed by the TARDEC Director. As needed, ad hoc 
members (such as labor counsel, human resource representatives, etc.) 
will serve as advisory members to the board.
    2. The board will execute the following:
    a. Determine the composition of the CCAS pay pools in accordance 
with the guidelines of this proposal and internal procedures;
    b. Review operation of pay pools and provide guidance to pay pool 
managers;
    c. Oversee disputes in pay pool issues;
    d. Formulate and execute the civilian pay budget;
    e. Manage the awards pools;
    f. Determine hiring and promotion-based pay as well as exceptions 
to CCAS base pay increases;
    g. Conduct classification review and oversight, monitor and adjust 
classification practices, and decide board classification issues;
    h. Approve major changes in position structure;
    i. Address issues associated with multiple pay systems during the 
demonstration project;
    j. Establish contribution goals and other evaluation descriptors;
    k. Assess the need for changes to demonstration project procedures 
and policies;
    l. Review requests for Supervisory/Team Leader Base Pay Adjustments 
and provide recommendations to the appropriate Center Director;
    m. Ensure in-house budget discipline;
    n. Manage the number of employees by occupational family and pay 
band;
    o. Develop policies and procedures for administering Developmental 
Opportunity Programs;
    p. 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,
    q. Monitor the evaluation of the project.

III. Personnel System Changes

A. Pay Banding

    The design of the TARDEC pay banding system takes advantage of the 
many reviews performed by OPM, DoD, and DA. 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 band system 
is designed to facilitate conversion, when and if appropriate, of GS, 
Acq Demo, and NSPS employees into the TARDEC demo.
1. Occupational Families, Career Paths, and Pay Band Levels
    Occupations with similar characteristics will be grouped together 
into one of three occupational families with career paths and pay band 
levels designed to facilitate pay progression. These occupational 
families are Engineering and Science (E&S), Business and Technical 
(B&T), and General Support (GEN). Each occupational family's career 
path will

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be composed of pay bands corresponding to recognized advancement and 
career progression expected within the occupations. These career paths 
and their pay bands will not be the same for each occupational family. 
Each career path will be divided into three to five pay bands. 
Employees track into an occupational family based on their current OPM 
classification series as provided in Appendix B. The current 
occupations have been examined, and their characteristics and 
distribution have served as guidelines in the development of the 
following three occupational families:
    Engineering and Science (E&S) (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 pay bands have been established 
for the E&S occupational family:
    a. Band I is a student trainee track covering GS-1, step 1, through 
GS-4, step 10.
    b. Band II is a developmental track covering GS-5, step 1, through 
GS-11, step 10.
    c. Band III is a full-performance technical track covering GS-12, 
step 1, through GS-13, step 10. Some first-level supervisory positions 
may also be included in this band.
    d. Band IV includes both senior technical positions along with 
supervisors-managers covering GS-14, step 1, through GS-15, step 10.
    e. Band V provides the ability to accommodate science and 
engineering positions having duties and responsibilities that exceed 
the GS-15 classification criteria. The DoD is developing 
classification, compensation, and performance management policy, 
guidance, and implementation processes for this pay band level that 
will be published in a separate FRN. TARDEC will supplement this 
information through internal operating guidance.
    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 analysts. Employees in these 
positions may or may not require specific course work or educational 
degrees. Four pay bands have been established for the B&T occupational 
family:
    a. Band I is a student trainee track covering GS-1, step 1, through 
GS-4, step 10.
    b. Band II is a developmental/full performance track covering GS-5, 
step 1, through GS-11, step 10.
    c. Band III is a full performance track covering GS-12, step 1, 
through GS-13, step 10.
    d. 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 
degrees are 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 pay bands have 
been established for the GEN occupational family:
    a. Band I includes entry-level positions covering GS-1, step 1, 
through GS-4, step 10.
    b. Band II includes full-performance positions covering GS-5, step 
1, through GS-7, step 10.
    c. Band III includes senior technicians/assistants/secretaries 
covering GS-8, step 1, through GS-10, step 10.
2. Pay Band Design
    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the current GS framework are shown in Table 1.

                                              Table 1--TARDEC Lab Demo Pay Bands With Equivalent GS Grades
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
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        Occupational Family                                             Lab Demo Pay Bands with Equivalent GS Grades
--------------------------------------------------------------------------------------------------------------------------------------------------------
DB................................  I                       II                      III                     IV                     V
Engineering & Science.............  GS 1-4                  GS 5-11                 GS 12-13                GS 14-15               > GS-15
DE................................  I                       II                      III                     IV                     .....................
Business & Technical..............  GS 1-4                  GS 5-11                 GS-12-13                GS-14-15
DK................................  I                       II                      III                     .....................  .....................
General Support...................  GS 1-4                  GS 5-7                  GS 8-10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the current Department of Defense Civilian Acquisition 
Workforce Personnel Demonstration Project framework are shown in Table 
2.

                                          Table 2--TARDEC Lab Demo Pay Bands With Equivalent Acq Demo Pay Bands
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                                                                    Lab Demo Pay Bands with Equivalent Acq Demo Pay Bands
        Occupational Family        ---------------------------------------------------------------------------------------------------------------------
                                               I                      II                      III                     IV                     V
--------------------------------------------------------------------------------------------------------------------------------------------------------
DB................................  NH-I                    NH-II                   NH-III                  NH-IV                  .....................
Engineering & Science.............
DE................................  NH-I                    NH-II                   NH-III                  NH-IV                  .....................
Business & Technical..............  NJ-I                    NJ-II                   NJ-IV
                                                            NJ-III
DK................................  NK-I                    NK-II                   NK-III                  .....................  .....................
General Support...................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The pay bands for the TARDEC Lab Demo occupational families and how 
they relate to the NSPS conversion framework are shown in Table 3.

[[Page 55114]]



                                            Table 3--TARDEC Lab Demo Pay Bands With Equivalent NSPS Pay Bands
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                                                                      Lab Demo Pay Bands with Equivalent NSPS Pay Bands
        Occupational Family        ---------------------------------------------------------------------------------------------------------------------
                                               I                      II                      III                     IV                     V
--------------------------------------------------------------------------------------------------------------------------------------------------------
DB................................  YP-1                    YD-1, YP-1              YD-2, YF-2              YD-3, YF-2, YF-3       .....................
E&S...............................
DE................................  YP-1, YB-1, YE-1        YA-1, YA-2, YB-1, YB-   YA-2, YB-3, YC-2, YE-   YA-3, YC-2, YC-3       .....................
Business & Technical..............                           2, YB-3, YE-1, YE-2,    3, YE-4
                                                             YE-3, YP-1
DK................................  YB-1,                   YB-1, YB-2, YE-1, YE-   YB-2, YE-2, YP-1                               .....................
General Support...................  YE-1,                    2, YP-1
                                    YP-1
--------------------------------------------------------------------------------------------------------------------------------------------------------
* NSPS Pay Bands overlap Lab Demo bands and Occupational Families.

3. Science and Engineering Positions Classified Above GS-15 (Pay Band 
V)
    The career path pay banding plan for the E&S occupational family 
includes a pay band V to provide the ability to accommodate positions 
having duties and responsibilities that exceed the GS-15 classification 
criteria. This pay band is based on the Above GS-15 Position concept 
found in other STRL personnel management demonstration projects that 
was created to solve a critical classification problem. The STRLs have 
positions warranting classification above GS-15 because of their 
technical expertise requirements including inherent supervisory and 
managerial responsibilities. However, these positions are not 
considered to be appropriately classified as Scientific and 
Professional Positions (STs) because of the degree of supervision and 
level of managerial responsibilities. Neither are these positions 
appropriately classified as Senior Executive Service (SES) positions 
because of their requirement for advanced specialized scientific or 
engineering expertise and because the positions are not at the level of 
general managerial authority and impact required for an SES position.
    The original Above GS-15 Position concept was to be tested for a 
five-year period. The number of trial positions was set at 40 with 
periodic reviews to determine appropriate position requirements. The 
Above GS-15 Position concept is currently being evaluated by DoD 
management for its effectiveness; continued applicability to the 
current STRL scientific, engineering, and technology workforce needs; 
and appropriate allocation of billets based on mission requirements. 
The degree to which the laboratory plans to participate in this concept 
and develop classification, compensation, and performance management 
policy, guidance, and implementation processes will be based on the 
final outcome of the DoD evaluation (see Section III.A.1.e).

B. Classification

1. Occupational Series
    The GS classification system has over 400 occupational series, 
which are divided into 23 occupational groupings. TARDEC currently has 
positions in approximately 65 occupational series that fall into 
approximately three 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
    TARDEC will use an automated classification system. The present 
system of OPM classification standards will be used for the 
identification of proper series and occupational titles of positions 
within the demonstration project. Current OPM position classification 
standards 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 pay band factor level descriptors for each 
pay band determination. The objective is to record the essential 
criteria for each pay band within each occupational family career path 
by stating the characteristics of the work, the responsibilities of the 
position, the competencies required, and the expected contributions. 
The pay band factor level descriptors will serve as both classification 
criteria and assessment criteria and may be found in Appendix C. New 
position descriptions will replace the current position/job 
descriptions. The pay band factor level descriptors 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) may 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 demonstration project positions are covered by the FLSA unless 
they meet the criteria for exemption. Classification Specialists will 
evaluate positions on a case-by-case basis comparing the duties and 
responsibilities assigned, the pay band factor level descriptors for 
each pay band level, and the FLSA criteria in accordance with 5 CFR 
part 551. Additionally, the advice and assistance of the servicing 
Civilian Personnel Advisory Center 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 Civilian Personnel Advisory Center.

[[Page 55115]]

4. Classification Authority
    The TARDEC 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 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 level 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 an employee is not 
satisfied with the DoD response, he or she may then appeal to OPM only 
after DoD has rendered a decision on all the provisions of the 
demonstration project. Appellate decisions from OPM are final and 
binding on all administrative, certifying, payroll, dispersing, and 
accounting officials of the Government. 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.
    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. Contribution-Based Compensation and Appraisal System (CCAS)

1. Overview
    The purpose of CCAS is to provide an effective, efficient, and 
flexible method for assessing, compensating, and managing the TARDEC 
workforce. CCAS is essential for the development and continued growth 
of the high quality, extremely productive, and innovative workforce 
needed to achieve a quality, agile and innovative organization and meet 
mission requirements. The CCAS allows for more employee involvement in 
the assessment process, fosters increased 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, 
performance, and contribution. The CCAS process described herein 
applies to all career paths and pay band levels I through IV. The 
assessment process for E&S Pay Band V positions will be based on the 
final outcome of the DoD evaluation and documented in TARDEC Internal 
Operating Instructions (see Section III.A.1.e. for additional 
information).
    CCAS is an assessment system that measures the employee's level of 
contribution to the organization's mission and how well the employee 
performed a job. Contribution is simply defined as the measure of the 
demonstrated value of what an employee did in terms of accomplishing or 
advancing the organizational objectives and mission impact. CCAS 
promotes base pay adjustment decisions made on the basis of an 
individual's overall annual contribution and current base pay, in 
relation to the other contributions and their level of base pay in the 
pay pool. The measurement of overall contribution is through a rating 
process which determines the Overall Contribution Score (OCS).
    An employee's performance is a component of contribution that 
influences the ultimate OCS. Contribution is measured by using a set of 
factors, discriminators, and descriptors, each of which is relevant to 
the success of the TARDEC mission. Taken together, these factors, 
discriminators, and descriptors capture the critical content of jobs in 
each career path. These factors, discriminators, and descriptors may be 
modified or supplemented if experience or changing mission requirements 
indicates a need to do so. These factors, discriminators, and 
descriptors are the same as those to classify a position at the 
appropriate pay band level.
    The six (6) factors are:
    1. Problem Solving,
    2. Teamwork/Cooperation,
    3. Customer Relations,
    4. Leadership/Supervision,
    5. Communication, and
    6. Resource Management.
    Each factor has multiple levels of increasing contribution 
corresponding to the pay band levels. Each factor contains descriptors 
for each respective level within the relevant career path. See Appendix 
C for CCAS Factor Descriptions, Level Descriptors, and Discriminators.
    The appropriate occupational family career path pay band level 
performance factor descriptors are used by the rating official to 
determine the employee's actual contribution score. Employees can score 
within, above, or below their pay band level. For example, a pay band 
level II employee could score in the pay band level I, II, III, or IV 
range. Therefore, for the CCAS process, descriptors for all pay band 
levels of the occupational family performance factors are presented to 
better assist the supervisor with the employee assessment.
    Normally, the rating period will be one year. The minimum rating 
period will be 90 days. CCAS 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 payment. Other awards such as 
special acts, time-off awards, etc., will be retained separately from 
the CCAS payouts.
    The system will have the flexibility to be modified, if necessary, 
as more experience is gained under the project.
3. Pay Pools
    TARDEC employees will be placed into pay pools that are defined for 
the purpose of determining performance payouts under the CCAS system. 
The guidelines in the next paragraph are provided for determining pay 
pools. These guidelines will normally be followed; however, the TARDEC 
Director may deviate from the guidelines if there is a compelling need 
to do so and so documents the rationale in writing.
    The TARDEC 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 
typically will be placed in a pay pool separate from subordinate non-
supervisory personnel. Neither the pay pool manager nor supervisors 
within a pay pool will recommend or set their own individual pay. 
Decisions regarding the amount of the performance payout are based on 
the established formal payout calculations.
    Funds within a pay pool available for performance payouts are 
divided into two components, base pay and bonus.

[[Page 55116]]

These funds will be defined based on historical data. Base pay increase 
fund will be set at no less than two percent of total base pay. The 
bonus amount will be set at no less than one percent of total base pay. 
The TARDEC Personnel Management Board will annually review the pay pool 
funding and recommend adjustments to the TARDEC Director to ensure cost 
discipline over the life of the demonstration project.
4. Annual Appraisal Cycle and Rating Process
    Typically, the annual appraisal cycle begins on October 1 and ends 
on September 30 of the following year. At the beginning of the annual 
appraisal period, the pay band level descriptors for each factor will 
be provided to employees so that they know the basis on which their 
performance will be assessed. At the discretion of the pay pool 
manager, weights will be applied to the factors. A weight of zero may 
not be applied to any factor and the sum of all weights must equal 100. 
Employees will be informed of the weights at the beginning of the 
rating cycle.
    Supervisor and employee discussion of specific work assignments and 
established contribution goals for the rating period for each of the 
six factors should be conducted on an ongoing basis. These goals can be 
modified during the rating period and form the foundation of the 
contributions expected to be achieved.
    Typically, the rating official is the first-level supervisor. If 
the current first-level supervisor has been in place for less than 90 
days during the rating cycle, the second-level supervisor serves as the 
initial rating official. If the second-level supervisor is in place for 
less than 90 days during the rating cycle, the next higher level 
supervisor in the employee's rating chain conducts the assessment.
    Employees and supervisors alike are expected to actively 
participate in on-going formal and informal performance discussions 
regarding expectations. 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. At least one review, normally the 
mid-point review, will be documented as a progress review. More 
frequent, task specific, discussions may be appropriate in some 
organizations.
    The employee will provide a list of his/her accomplishments to the 
supervisor at both the mid-point and end of the rating period using the 
six Contribution Factors described in Section III.C.1. An employee may 
elect to provide self-ratings on the contribution/performance factors 
and/or solicit input from team members, customers, peers, supervisors 
in other units, subordinates, and other sources which will assist the 
supervisor in fully evaluating contributions. At the end of the annual 
appraisal period, the immediate supervisor (rating official), from 
employees' inputs and his/her own knowledge, identifies for each 
employee the appropriate contribution level and recommends the OCS.
    To determine the OCS, numerical values are assigned based on the 
contribution levels of individuals, using the ranges shown in Table 4. 
Generally, the OCS is calculated by averaging the numerical values (as 
weighted) assigned for each of the six performance/contribution 
factors. (All OCS's will be rounded up to the nearest whole number). 
The rating official in conjunction with the second-level supervisor 
reviews the OCS for all employees, correcting any inconsistencies 
identified and making the appropriate adjustments in the factor 
ratings.
[GRAPHIC] [TIFF OMITTED] TN09SE10.133

    The pay pool panel conducts a final review of the OCS for each 
employee in the pay pool. The pay pool panel has the authority to make 
OCS adjustments, after discussion with the initial rating officials, to 
ensure equity and consistency. Final approval of OCS rests with the pay 
pool manager, the individual within the organization responsible for 
managing the CCAS process. The OCS, as approved by the pay pool 
manager, becomes the rating of record. Rating officials will 
communicate the factor scores and OCS

[[Page 55117]]

to each employee and discuss the results.
    If on October 1, the employee has served under CCAS for less than 
ninety (90) consecutive calendar days, the rating official shall wait 
for the subsequent annual cycle to assess the employee.
    Employees who have served under CCAS for less than 90 consecutive 
calendar days shall not receive contribution rating increases or 
contribution awards for that cycle.
5. Linking OCS to Base Pay Adjustment

a. The Normal Pay Range (NPR)

    The CCAS integrated pay schedule provides a direct link between 
contribution, performance, and base pay. This is shown by the graph in 
Table 5. The horizontal axis spans from 0 to the maximum OCS of 115 for 
positions in pay band levels I through V. Employees who are performing 
above the defined criteria of the top pay band level may not exceed the 
OCS score of 115. The vertical axis spans from zero dollars to the 
dollar equivalent of the highest positions authorized under this lab 
demonstration. This encompasses the full base pay range (excluding 
locality pay and staffing supplements) under this demonstration for the 
given calendar year (Note: Table 5 currently depicts Calendar Year 
2010). Each year the rails for the NPR are adjusted based on the GS 
general pay increase under 5 U.S.C. 5303. The area between the upper 
and lower rails is considered the normal pay range; when an annual 
overall contribution score (OCS) plotted against a base pay rate falls 
on or within the NPR rails, the base pay rate is considered to be 
appropriate. While there may be rates of base pay that fall above or 
below the NPR that could be considered not appropriate, there may be 
circumstances to account for these rates of base pay outside the NPR. 
Such circumstances as saved pay or minimal contributions/performance 
could account for base pay rates above the NPR. For base pay rates 
below the NPR, such situations as exceptional contributions or growth 
in position responsibilities may warrant higher base pay. Employees 
whose annual OCS plotted against their base pay falls on or within the 
rails are considered appropriately compensated. Employees whose current 
base pay falls above or below the NPR for their assessed contribution 
score are considered inappropriately compensated.
    b. The NPR was established using the following parameters:
    (1) The lowest possible score is an OCS of 0, which equates to the 
lowest base pay under this demonstration project, GS-1, step 1, and
    (2) The OCS of 115 equates to the maximum base pay of Pay Band V.
    The upper and lower rails are determined by the formulae below, 
encompass an area of +/- 8.0 percent in terms of base pay which 
correlates to approximately +/- 4.0 OCS points.
[GRAPHIC] [TIFF OMITTED] TN09SE10.134

    c. Formulae:
    Given these constraints, the formulae for the upper and lower rails 
found in Table 5 are:

Base pay upper rail = (GS-1, Step 1) * (1.0800) * (1.020043) 
OCS
Base pay lower rail = (GS-1, Step 1) * (0.9200) * (1.020043) 
OCS

    d. The NPR is the same for all the occupational families. What 
varies among the occupational families are the beginnings and endings 
of the pay band levels. The minimum and maximum numerical OCS values 
and associated base pay for each pay band level by occupational family 
are provided in Table 5. These minimum and maximum breakpoints 
represent the lowest and highest base pay for the bands; and the 
minimum and maximum base pay possible for each pay band level. Locality 
pay or staffing supplements are not included in the NPR but are added 
to base pay as appropriate.

[[Page 55118]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.135

e. OCS Base Pay Adjustment Guidelines

    After the pay pool manager approves the OCS for all employees in 
the pay pool, the current base pay versus OCS is plotted for all 
employees on a chart similar to Table 7. This plot relates contribution 
to base pay, and identifies the placement of each employee into one of 
three regions: Inappropriately Compensated (A Region--above the NPR), 
Appropriately Compensated (C Region--within the NPR), or 
Inappropriately Compensated (B Region--below the NPR).
    In Table 7, employee C is in the Appropriately Compensated Region 
(falls on or within the NPR). Employee B is in the Inappropriately 
Compensated Region (falls below the lower NPR) for his/her contribution 
to the organization. Employee A is in the Inappropriately Compensated 
Region above the NPR (i.e., receives high base pay due to such 
circumstances such as saved pay or contributions do not justify the 
base pay).
[GRAPHIC] [TIFF OMITTED] TN09SE10.136

    f. Table 8 illustrates the additional pay categories available for 
the three groupings of employees.
    The employees whose base pay falls within the NPR must receive the 
full General Pay Increase (GPI), may receive a contribution rating 
increase of up to 6 percent, and may receive a contribution award. The 
contribution rating increase is included as a permanent increase in 
base pay, but the contribution award is a lump-sum payment that does 
not affect base pay.
    The employees whose base pay falls above the NPR could be denied 
part or all of the GPI and may receive no contribution rating increase 
or contribution bonus. The intent of the demonstration project is to 
allow managers to retain the ability to determine how much, if any, of 
the general pay increase would be authorized on a case-by-case basis.

[[Page 55119]]

    The employees whose base pay falls below the NPR must receive the 
full general pay increase, may receive up to a 20 percent permanent 
increase in pay, and also may receive a contribution award.
    Employees on retained rate in the demonstration plan will receive 
base pay adjustments in accordance with 5 U.S.C. 5363 and 5 CFR part 
536. An employee receiving a retained rate is not eligible for a 
contribution rating increase, but may receive a contribution award.
    In general, those employees whose base pay falls below the NPR 
should expect to receive greater percentage base pay increases than 
those whose base pay is above the NPR. Over time, people will migrate 
closer to the normal pay range and receive base pay appropriate for 
their level of contribution.
    Employees whose OCS would result in awarding a contribution rating 
increase such that the base pay exceeds the maximum base pay for their 
current pay band level may receive a contribution award equaling the 
difference.
[GRAPHIC] [TIFF OMITTED] TN09SE10.137

6. Accelerated Compensation for Developmental Positions (ACDP)
    (a) Accelerated Compensation for Developmental Positions (ACDP) is 
a pay-setting provision that may be used to recognize the development 
and attainment of job-related competencies for TARDEC employees 
participating in training programs, internships, or other developmental 
capacities as determined by the TARDEC Director. The ACDP includes 
TARDEC employees serving under the Student Career Experience Program 
(SCEP) and Student Temporary Employment Program (STEP). ACDP is an 
increase to base salary. It provides management the opportunity to 
increase the base pay of employees in developmental positions at rates 
which match or exceed career ladder promotion rates under the GS system 
or other labor market forces.
    (b) An ACDP increase to base salary may be awarded at anytime 
throughout the rating year. In order to receive an ACDP, the employee 
must be in a pay and duty status, have been on an approved CCAS 
standard for 90 consecutive days and have successfully met the 
Contribution Goal Objectives of the CCAS standard as determined by a 
management official.
    (c) ACDP is payment in addition to the annual contribution rating 
increase and contribution award. It generally will not exceed 20 
percent of the employee's base pay; however, a higher increase may be 
provided on a case-by-case basis if approved by an official who is at a 
higher level than the official who made the initial decision.
    (d) ACDP base pay increase is separate funding from the pay pool 
process.
7. Inadequate CCAS Contribution
    Inadequate performance at any time during the appraisal period is 
considered grounds for initiation of a reduction-in-pay or removal 
action. The following procedures replace those established in 5 U.S.C. 
4303 pertaining to reductions in grade or removal for unacceptable 
performance except with respect to appeals of such actions. 5 U.S.C. 
4303(e) provides the statutory authority for appeals of contribution-
based actions. As is currently the situation for performance-based 
actions taken under 5 U.S.C. 4303, contribution-based actions shall be 
sustained if the decision is supported by substantial evidence and the 
Merit Systems Protection Board shall not have mitigation authority with 
respect to such actions. The separate statutory authority to take 
contribution-based actions under chapter 75 of title 5, U.S.C., as 
modified in the waiver section of this notice (section IX), remains 
unchanged by these procedures.
    When an employee's OCS plots above the upper rail of the NPR and 
the employee is considered to be contributing inadequately the 
supervisor has two options. The first is to take no action but to 
document this decision in a memorandum for the record. A copy of this 
memorandum will be provided to the employee and to higher levels of 
management. The second option is to inform the employee, in writing, 
that unless the contribution increases to, and is sustained at, a 
higher level, the employee may be reduced in pay, reduced in pay band 
level, or removed.

[[Page 55120]]

    The second option will include a Contribution Improvement Plan 
(CIP). The CIP will state how the employee's contribution is 
inadequate, what improvements/results are required, recommendations on 
how to achieve adequate contribution, assistance that the laboratory 
may offer to the employee to assist in improving contribution, and 
consequences of failure to improve. Additionally, the CIP must include 
standards for adequate contribution, actions required of the employee, 
and time in which they must be accomplished to increase and sustain the 
employee's contribution at an adequate level. When an employee is 
placed on a CIP, the rating official will afford the employee a 
reasonable opportunity (a minimum of 60 days) to demonstrate acceptable 
contribution. These provisions also apply to an employee whose 
contribution deteriorates during the year.
    Employees who are on a CIP at the time pay determinations are made 
do not receive performance payouts or the annual GPI. An employee who 
receives an unacceptable OCS rating of record will not receive any 
portion of the GPI 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 GPI will not be retroactive but will be granted at 
the beginning of the next pay period after the supervisor authorizes 
its payment.
    Once an employee has been afforded a reasonable opportunity to 
demonstrate adequate contribution but fails to do so, a reduction-in-
pay (which may include a change to a lower pay band level and/or 
reassignment), or removal action may be proposed. If the employee's 
contribution increases to an acceptable level and is again determined 
to deteriorate in any factor within two years from the beginning of the 
opportunity period, actions may be initiated to effect reduction in pay 
or removal with no additional opportunity to improve. If an employee 
has contributed acceptably for two years from the beginning of an 
opportunity period, and the employee's overall contribution once again 
declines to an inadequate level, the employee will be afforded an 
additional opportunity to demonstrate adequate contribution before it 
is determined whether or not to propose a reduction in pay or removal.
    An employee whose reduction in pay or removal is proposed is 
entitled to a 30-day advance notice of the proposed action that 
identifies specific instances of inadequate contribution by the 
employee on which the action is based. The employee will be afforded a 
reasonable time to answer the notice of proposed action orally and/or 
in writing.
    A decision to reduce pay or remove an employee for inadequate 
contribution may be based only on those instances of inadequate 
contribution that occurred during the two-year period ending on the 
date of issuance of the proposed action. The employee will be issued 
written notice at or before the time the action will be effective. Such 
notice will specify the instances of inadequate contribution by the 
employee on which the action is based and will inform the employee of 
any applicable appeal or grievance rights.
    All relevant documentation concerning a reduction in pay or removal 
that is based on inadequate contribution will be preserved and made 
available for review by the affected employee or a designated 
representative. At a minimum, the records will consist of a copy of the 
notice of proposed action; the written answer of the employee or a 
summary when the employee makes an oral reply; and the written notice 
of decision and the reasons thereof, along with any supporting material 
including documentation regarding the opportunity afforded the employee 
to demonstrate adequate contribution.
8. Base Pay Increases and Bonuses
    The payouts made to employees from the pay pool may be a mix of 
base pay increases and/or one-time bonuses, 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. 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. 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.
    In addition, a pay pool manager may request approval from the 
TARDEC Director for use of an Extraordinary Achievement Recognition. 
Such recognition grants a base pay increase and/or bonus to an 
employee. The funds available for an Extraordinary Achievement 
Recognition are separately funded within the constraints of the budget.
9. Awards
    To provide additional flexibility in motivating and rewarding 
individuals and groups, some portion of the 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 laboratory's budget.
    While not directly linked to the CCAS system, this additional 
flexibility is important to encourage outstanding accomplishments and 
innovation in accomplishing the diverse mission of TARDEC. 
Additionally, to foster and encourage teamwork among its employees, 
organizations may give group awards. The TARDEC Director will have the 
authority to grant special act awards to covered employees of up to 
$25,000 IAW the criteria of AR 672-20, Incentive Awards.
10. Reverse Feedback
    Employee feedback to supervisors is considered essential for the 
success of the TARDEC CCAS system. A feedback instrument for 
subordinates to anonymously evaluate the effectiveness of their 
supervisors is being developed 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.
11. Adverse Actions
    Except where specifically waived or modified in this plan, adverse 
action procedures under 5 CFR part 752 remain unchanged.
12. Grievance of Overall Contribution Score
    An employee may grieve the OCS received under the CCAS 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

[[Page 55121]]

performance rating grievances must file under those negotiated 
procedures. Contribution payout amounts resulting from OCS cannot be 
grieved.

D. Hiring Authority

1. Qualifications
    The qualifications required for placement into a position in a pay 
band within an occupational family career path 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 those 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 Operating Manual for Qualification Standards for GS 
Positions, 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, direct-hire authority, Delegated Examining, or other sources. 
Where delegated to the laboratory level, hiring 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, eligible applicants and all are either preference 
eligibles or there are no preference eligibles, all will be 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.
3. Distinguished Scholastic Achievement Appointment
    This demonstration project establishes a Distinguished Scholastic 
Achievement Appointment using an alternative examining process which 
provides the authority to appoint undergraduates and graduates through 
the doctoral level to professional positions at the equivalent of GS-7 
through GS-11, and GS-12 positions.
    At the undergraduate level, candidates may be appointed to 
positions at a base pay level no greater than the equivalent of GS-7, 
step 10, provided that:
    (1) They meet minimum standards for the positions as published in 
OPM's Operating Manual ``Qualification Standards for General Schedule 
Positions'' plus any selective factors stated in the vacancy 
announcement;
    (2) the occupation has a positive education requirement; and
    (3) the candidate has a cumulative grade point average (GPA) of 3.5 
or better (on a 4.0 scale) in those courses in those fields of study 
that are specified in the Qualifications Standards for the occupational 
series.
    Appointments may also be made at the equivalent of GS-9 through GS-
12 on the basis of graduate education and/or experience for those 
candidates with a GPA of 3.5 or better (on a scale of 4.0) for graduate 
level courses in the field of study required for the occupation.
    Veterans' preference procedures will apply when selecting 
candidates under this authority. Preference eligibles who meet the 
above criteria will be considered ahead of nonpreference eligibles. In 
making selections, to pass over any preference eligible(s) to select a 
nonpreference eligible requires approval under current pass-over or 
objection procedures. Priority must also be given to displaced 
employees as may be specified in OPM and DoD regulations.
4. Direct Hire Authority for Candidates With Advanced Degrees for 
Scientific and Engineering Positions
    a. Background:
    The TARDEC has an urgent need for direct hire authority to appoint 
qualified candidates possessing an advanced degree to scientific and 
engineering positions. The market is extremely competitive with 
industry and academia for the small supply of highly-qualified and 
security clearable candidates with a Masters Degree or Ph.D. in science 
or engineering. There are 35,000 scientists and engineers employed in 
the DoD laboratories; 27% hold Masters Degrees, while 10% are in 
possession of a Ph.D. The TARDEC employs around 1,427 scientists and 
engineers; 21% holding Masters Degrees, while 2% percent are in 
possession of a Ph.D. Over the next five years, the TARDEC plans to 
hire approximately 500 of the country's best and brightest scientists 
and engineers (S&Es) just to keep pace with attrition. This number does 
not include the impact that actions such as Base Realignment and 
Closure may have on the attrition of S&Es from the TARDEC. Statistics 
indicate that the available pool of advanced degree, clearable 
candidates is substantially diminished by the number of non-U.S. 
citizens granted degrees by U.S. institutions. For instance, in 2006, 
20% of Masters Degrees in science and over 35% of Ph.D.s in science 
were awarded to temporary residents.
    It is expected that this hiring authority, together with 
streamlined recruitment processes, will be very effective in hiring 
candidates possessing a Masters or Ph.D. and accelerating the hiring 
process. For instance, under a similar authority found in the NDAA for 
FY 2009, section 1108, Public Law 110-417, October 28, 2009, one STRL 
had fifteen Ph.D. selectees in 2009 for the sixteen vacancies for which 
they were using this hiring authority. Another STRL, using this 
expedited hiring authority in calendar year 2009, made thirty firm 
hiring offers in an average of thirteen days from receipt of paper work 
in the Human Resources Office. Of these thirty selectees, twenty-three 
possessed Ph.D.s.
    b. Definitions:
    (1) Scientific and engineering positions are defined as all 
professional positions in scientific and engineering occupations (with 
a positive education requirement) utilized by the laboratory.
    (2) An advanced degree is a Master's or higher degree from an 
accredited college or university in a field of scientific or 
engineering study directly related to the duties of the position to be 
filled.
    (3) Qualified candidates are defined as candidates who:
    (a) Meet the minimum standards for the position as published in 
OPM's operating manual, ``Qualification Standards for General Schedule 
Positions,'' or the laboratory's demonstration project qualification 
standards specific to the position to be filled;
    (b) Possess an advanced degree; and
    (c) Meet any selective factors.
    (4) ``Employee'' is defined by section 2105 of title 5, U.S.C.
    c. Provisions:
    (1) Use of this appointing authority must comply with merit system 
principles when recruiting and appointing candidates with advanced 
degrees to covered occupations.
    (2) Qualified candidates possessing an advanced degree may be 
appointed without regard to the provisions of subchapter 1 of chapter 
33 of title 5,

[[Page 55122]]

United States Code, other than sections 3303, 3321, and 3328 of such 
title.
    (3) The hiring threshold for this authority shall be consistent 
with DoD policy and legislative language as expressed in any National 
Defense Authorization Act addressing such.
    (4) Positions and candidates must be counted on a full-time 
equivalent basis.
    (5) Science and engineering positions that are filled as of the 
close of the fiscal year are those positions encumbered on the last day 
of the fiscal year.
    (6) When completing the personnel action, the following will be 
given as the authority for the Career-Conditional, Career, Term, 
Temporary, or special demonstration project appointment authority: 
Section 1108, NDAA for FY 09.
    (7) Evaluation of this hiring authority will include information 
and data on its use, such as numerical limitation, hires made, how many 
veterans hired, declinations, difficulties encountered, and/or 
recognized efficiencies.
5. Legal Authority
    For actions taken under the auspices of this demonstration project, 
the legal authorities, Public Law 103-337, as amended, and Public Law 
111-84 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.
6. Modified Term Appointments
    TARDEC conducts a variety of projects that range from three to six 
years. The current four-year limitation on term appointments for 
competitive service employees often forces the termination of these 
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.
    TARDEC 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, TARDEC 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 TARDEC 
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 non-competitive 
conversion to career or career-conditional appointments. To be 
converted, the employee must:
    a. 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 or career-conditional appointment at a later 
date;
    b. have served two years of continuous service in the term 
position; and
    c. have not been placed on a CIP.
    Employees serving under 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 or career 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) have not been placed on a CIP.

Time served in term positions prior to conversion to the modified term 
appointment is creditable, provided the service was continuous.
7. Initial Probationary Period
    The initial probationary period will not be less than one year and 
will not exceed three years for all newly hired employees as defined in 
5 CFR part 315. The specific probationary period will be defined and 
controlled by the TARDEC Director. The purpose of the probationary 
period is to allow supervisors an adequate period of time to fully 
evaluate an employee's ability to complete a cycle of work and to fully 
assess an employee's contribution and conduct. 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. These 
provisions only apply to those employees who have been appointed under 
the authority of this demonstration project.
8. Termination of Initial Probationary Period Employees
    The probationary or trial period is designed to give supervisors 
the opportunity to assess how well an employee can perform the duties 
of a job and if the employee is otherwise well suited for the position. 
Probationary employees may be terminated for any lawful reason 
including, but not limited to, failure to demonstrate proper conduct, 
technical competency, and/or acceptable contribution for continued 
employment. They may also be terminated for conditions arising before 
employment. When a supervisor decides to terminate an employee during 
the probationary period, 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, outline the supervisor's reasons for termination.
9. Supervisory Probationary Periods
    New supervisors, that is, those who have not previously completed a 
supervisory probationary period, will be required to complete a one-
year probationary period for the initial appointment to a supervisory 
position. An additional supervisory probationary period of one year may 
be required when an employee is officially assigned to a different 
supervisory position that constitutes a major change in supervisory 
responsibilities from any previously held supervisory position. If, 
during a supervisory probationary period, the decision is made to 
return the employee to a non-supervisory position for reasons related 
to supervisory performance, the employee will be returned to a 
comparable position of no lower base pay than the position from which 
promoted or reassigned.
10. Voluntary 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 TARDEC community. The program will be 
beneficial during manpower reductions, as employees accept

[[Page 55123]]

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 a TARDEC manager to the TARDEC 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. The 
agreement must be finalized before the assumption of duties and shall 
include the following:
    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;
    b. statement that the volunteer will be considered a Federal 
employee only for the purpose of injury compensation;
    c. volunteer's work schedule;
    d. Length of agreement (defined by length of project or time 
defined by weeks, months, or years);
    e. Support provided by the organization (travel, administrative 
support, office space, and supplies);
    f. statement of duties;
    g. 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;
    h. provision allowing either party to void the agreement with two 
working days written notice;
    i. level of security access required by the volunteer (any security 
clearance required by the position will be managed by the employing 
organization);
    j. provision that any publication(s) resulting from his/her work 
will be submitted to the Director for review and approval;
    k. statement that the employee accepts accountability for loss or 
damage to Government property occasioned by his/her negligence or 
willful action;
    l. statement that his/her activities on the premises will conform 
to the regulations and requirements of the organization;
    m. statement that the employee 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;
    n. statement that the employee will not disclose any inventions 
made in the course of work performed at the TARDEC. 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 TARDEC 
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; and
    o. statement that he/she agrees to comply with designated mandatory 
training.
    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 career path or to another pay band in a 
different occupational family career path, wherein the pay band in the 
new occupational 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 higher band 
within an occupational family career path will be identified when they 
are filled. Movement from one occupational family to another will 
depend upon individual competencies, qualifications, and the needs of 
the organization. Supervisors may consider promoting employees at any 
time, since promotions are not tied to the CCAS system. Progression 
within a pay band is based upon contribution/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.
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 pay 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.
    Employees may be eligible for an increase to base salary upon 
temporary or permanent reassignment as described in this section. A 
decision to increase an employee's pay under this section will be based 
upon business rules that will define criteria necessary to justify a 
base pay increase. Examples of criteria may include, but are not 
limited to, one or more of the following factors:
    a. A determination that an employee's responsibilities will 
significantly increase;
    b. critical mission or business requirements;
    c. need to advance multi-functional competencies;
    d. labor market conditions, e.g., availability of candidates and 
labor market rates;
    e. reassignment from a nonsupervisory to a supervisory position;
    f. employee's past and anticipated performance and contribution;
    g. physical location of position;
    h. specialized skills, knowledge, or education possessed by the 
employee in relation to those required by the position; and
    i. salaries of other employees in the organization performing 
similar work.
    When an employee is reassigned within his/her current pay band or 
to a comparable pay band, an authorized management official will set 
base pay at an amount no less than the employee's current base pay and 
may increase the employee's current base pay by up to 6 percent. If the 
employee's current base pay exceeds the maximum of the new pay band, no 
increase is provided, and the employee's rate will be set at that 
maximum rate. There is no limit to the

[[Page 55124]]

number of times an employee can be reassigned, but local business rules 
will be established to monitor and control all cases that receive a 
reassignment base pay change to ensure fairness and consistency across 
the workforce. Reassignment base pay thresholds may be modified or 
increased by internal business rules, policies, or procedures as 
organizational experience dictates.
3. Demotion or Placement in a Lower Pay Band
    A demotion is a placement of an employee into a lower pay band 
within the same occupational family or placement into a pay band in a 
different occupational family with a lower maximum base pay. Demotions 
may be for cause (performance or conduct) or for reasons other than 
cause (e.g., erosion of duties, reclassification of duties to a lower 
pay band, application under competitive announcements, at the 
employee's request, 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 either no change or an increase 
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 while providing management the option of granting additional 
base pay in recognition of more complex work or broader scope of 
responsibility.
5. Details
    The temporary assignment of an employee to a different 
demonstration project position for a specific period when the employee 
is expected to return to his or her regular duties at the end of an 
assignment. (An employee who is on detail is considered for pay and 
strength purposes to be permanently occupying his or her regular 
position.)
6. Exceptions to Competitive Procedures
    The following actions are excepted from competitive procedures:
    a. 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.
    b. Promotion, reassignment, demotion, transfer, or reinstatement to 
a position having promotion potential no greater than the potential of 
a position an employee currently holds or previously held on a 
permanent basis in the competitive service.
    c. A position change permitted by reduction-in-force procedures.
    d. Promotion without current competition when the employee was 
appointed through competitive procedures to a position with a 
documented career ladder.
    e. A temporary promotion or detail to a position in a higher pay 
band of 180 days or less.
    f. A promotion due to the reclassification of positions based on 
accretion (addition) of duties.
    g. A promotion resulting from the correction of an initial 
classification error or the issuance of a new classification standard.
    h. Consideration of a candidate who did not receive proper 
consideration in a competitive promotion action.
    i. 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 Administration

1. General
    Pay administration policies will be established by the Personnel 
Management Board. These policies will be exempt from Army Regulations 
or RDECOM local pay fixing policies, but will conform to basic 
governmental pay fixing policy. Employees whose performance is 
acceptable may be eligible for the full annual general pay increase and 
the full locality pay. TARDEC may make full use of recruitment, 
retention, and relocation payments as provided for by OPM under 5 
U.S.C. and 5 CFR pay flexibilities unless waived by this FRN.
2. Pay and Compensation Ceilings
    An employee's total monetary compensation paid in a calendar year 
may not exceed the rate of pay for Level I of the Executive Schedule to 
be consistent with 5 CFR 530.201 and consistent with 5 U.S.C. 5307 and 
5 CFR part 530, subpart B. In addition, each pay band will have its own 
base pay ceiling. Base pay rates for the various pay bands will be 
linked to the OCS of the CCAS system. 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 base pay may be set at 
the lowest base pay in the pay band or anywhere within the pay 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.
4. Highest Previous Rate (HPR)
    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.
5. Pay Setting for Promotion
    The minimum base pay increase upon promotion to a higher pay band 
will be six percent or the minimum base pay rate of the new pay band, 
whichever is greater. The maximum amount of a base pay increase for a 
promotion will not exceed $10,000, or other such amount as established 
by the Personnel Management Board, but in no case will the increase 
exceed the maximum base pay for the pay band. The maximum base pay 
increase for promotion may be exceeded when necessary to allow for the 
minimum base pay increase. 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.

[[Page 55125]]

6. 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, and authority 
or for other compelling reasons. Such an increase is subject to the 
specific guidelines established by the Personnel Management Board.
7. 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 are on a CIP at the time base pay determinations are 
made do not receive contribution payouts or the general pay increase. 
This action may result in a base pay that is identified in a lower pay 
band. This occurs because the minimum rate of base pay in a pay band 
increases as the result of the general pay increase (5 U.S.C. 5303).
8. Supervisory and Team Leader Pay Adjustments
    a. Supervisory and team leader pay adjustments may be approved by 
the TARDEC 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 
base 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.
    a. The pay adjustment will not apply to employees in Pay Band V of 
the E&S occupational family.
    b. 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) An 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.
    (3) Existing Supervisors/Team Leaders will be converted at their 
existing base rate of pay and may be eligible for a base pay adjustment 
upon review of the Personnel Management Board following the conversion.
    c. 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 
involuntarily removed from a non-probationary supervisory/team leader 
position for unacceptable performance or conduct, the base pay 
adjustment will be removed under adverse action procedures. However, if 
an employee is involuntarily removed from a non-probationary 
supervisory/team leader position for conditions other than unacceptable 
performance or conduct, then pay retention will follow current law and 
regulations at 5 U.S.C. 5362 and 5363 and 5 CFR part 536, except as 
waived or modified in section IX.
9. Supervisory and Team Leader Pay Differentials
    Supervisory and team leader pay differentials may be used by the 
TARDEC Director to provide an incentive and to 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 
for a specified period of time not to exceed (NTE) one year 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 and 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 or 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 
TARDEC Director. The termination or reduction of the differential is 
not an adverse action and is not subject to appeal.
10. Staffing Supplements
    Employees assigned to occupational categories and geographic areas 
covered by GS special rates will be entitled to a staffing supplement 
if the maximum adjusted base pay for the banded GS grades (i.e., the 
maximum GS locality rate) to which assigned is a special rate that 
exceeds the maximum GS locality rate for the banded grades. 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 
for GS employees), 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

[[Page 55126]]

the conversion process, as there will be no loss or decrease 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 basic pay (including any locality pay or special 
salary rate) or, for former NSPS employees, the NSPS adjusted salary 
(including any local market supplement) 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 or NSPS 
adjusted base pay rate. Simplified, the formula is this:
[GRAPHIC] [TIFF OMITTED] TN09SE10.138

    If an employee is in a band where the maximum GS or NSPS 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 in accordance with the above provisions using the new 
special salary 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.
    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.
    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 rate 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.
11. Pay Retention Within the Demonstration Project
    For purposes of actions within the TARDEC demonstration project 
that provide entitlement to pay retention, the standard provisions of 
pay retention, (5 U.S.C. 5362 and 5363 and 5 CFR part 536) shall apply 
to employees after conversion to the demonstration project, except as 
waived or modified in Section IX of this plan. Wherever the term 
``grade'' is used in the law or regulation, the term ``pay band'' will 
be substituted. The TARDEC 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.

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, local colleges, and universities. Each 
developmental opportunity must result in a product, service, report, or 
study that will benefit the TARDEC 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 developmental opportunities.
    a. Sabbaticals. The TARDEC 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

[[Page 55127]]

sabbatical must result in a product, service, report, or study that 
will benefit the TARDEC 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.
    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 TARDEC for a period 
three times the length of the sabbatical. If an employee voluntarily 
leaves TARDEC before the service obligation is completed, he/she is 
liable for repayment of expenses incurred by TARDEC that are associated 
with training during the sabbatical. Expenses do not include salary 
costs. The TARDEC 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 TARDEC 
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 TARDEC for a period three times the 
length of the training period. If an employee voluntarily leaves the 
TARDEC before the service obligation is completed, he/she is liable for 
repayment of expenses incurred by TARDEC related to the critical skills 
training. Expenses do not include salary costs. The TARDEC Director has 
the authority to waive this requirement. Criteria for such waivers will 
be addressed in the operating procedures.
    c. Student Career Experience Program (SCEP) Service Agreement. The 
extended repayment period also applies to employees under the SCEP who 
have received tuition assistance. They will be required to sign a 
service agreement up to three times the length of the academic training 
period or periods (semesters, trimesters, or quarters).

H. Reduction-in-Force (RIF) Procedures

    The competitive area may be determined by occupational family, 
lines of business, product lines, organizational units, funding lines, 
occupational series, functional area, and/or geographical location, or 
a combination of these elements, and must include all Demonstration 
Project employees within the defined competitive area. The RIF system 
has a single round of competition to replace the current GS two-round 
process. Once the position to be abolished has been identified, the 
incumbent of that position may displace another employee when the 
incumbent has a higher retention standing and is fully qualified for 
the position occupied by the employee with a lower standing.
    Retention standing is based on tenure, veterans' preference, and 
length of service augmented by performance. Modified term appointment 
and temporary employees are in tenure group III for RIF purposes. RIF 
procedures are not required when separating these employees when their 
appointments expire.
    Displacement is limited to one pay band level below the employee's 
present pay band level within the occupational family career path. Pay 
band level I employees can displace within their current pay band 
level. A veterans' preference eligible employee with a compensable 
service connected disability of 30 percent or more may displace up to 
two pay band levels below the employee's present level within the 
career path. A pay band level I preference eligible employee (with a 
compensable service connected disability of 30 percent or more) can 
displace within their current pay band. The same ``undue disruption'' 
standard currently utilized, serves as the criteria to determine if an 
employee is fully qualified.
    The additional RIF service credit for performance shall be based on 
the last three OCS scores and will be applied as follows:
    a. Seven years of credit for each year the OCS is equal to or 
greater than 94 percent of the expected OCS.
    b. Four years of credit for each year the OCS is less than 94 
percent of the expected OCS, except, Zero (0) years of credit for each 
year the employee was on a CIP during the rating cycle and the OCS is 
less than 92 percent of the expected OCS.

    Note 1: Expected OCS is the OCS that corresponds to the 
employee's base pay at the time of rating.

    An employee whose current overall contribution score places him/her 
in the area above the upper rail and on a CIP, any time during the 
rating cycle, may only displace an employee who is also above the upper 
rail and also on a CIP during that same period. The displaced 
individual may similarly displace another employee on a CIP. If/When 
there is no position in which an employee can be placed by this process 
or assigned to a vacant position, that employee will be separated. If 
an employee has not been rated under the demonstration project their 
rating will be considered acceptable and they will be given the full 21 
years of performance credit. After completion of the first or second 
rating cycle the total years of service will be prorated based on 
ratings received to date.

IV. Implementation Training

    A. 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. New pay banding, job classification, and performance 
management systems all contribute to significant cultural change to the 
organization. Training will be tailored to address employee concerns 
and to encourage comprehensive understanding of the demonstration 
project. Training will be required both prior to implementation and at 
various times during the life of the demonstration project.
    B. 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;

[[Page 55128]]

    4. The CCAS system;
    5. Defining contribution goals;
    6. How to assign weights;
    7. Assessing performance--giving feedback;
    8. New position descriptions; and
    9. Demonstration project administration and formal evaluation.
    C. Various types of training are being considered, including 
videos, on-line tutorials, and train-the-trainer concepts.

V. Conversion Into the Demonstration Project

A. Conversion From NSPS to the Demonstration Project

1. Placement Into Demonstration Project Occupational Families, Career 
Paths, Pay Plans, and Pay Bands
    The employee's NSPS occupational series, pay plan, pay band, and 
supervisory code will be considered upon converting into the 
demonstration project as follows:
    a. Determine the appropriate demonstration project pay plan. 
Employees will be converted into an occupational family career path pay 
plan based on the occupational series of their position. If there is a 
separate pay plan for supervisors, conversion to that pay plan will be 
without regard to the occupational series. In cases where the employee 
is assigned to a NSPS-unique occupational series, a corresponding OPM 
occupational series must be identified using OPM GS classification 
standards and guidance to determine the proper demonstration project 
pay plan.
    b. Determine the appropriate demonstration project pay band. The 
appropriate pay band will be determined by establishing the 
corresponding GS grade for the employee's NSPS position using OPM GS 
classification standards and guidance. Once the GS grade has been 
determined, the employee's position will be placed in the appropriate 
demonstration project pay band in the occupational family career path. 
In cases where a GS grade is encompassed in more than one pay band of a 
career path, a careful review will be required using demonstration 
project classification criteria to determine the appropriate pay band 
in which to place the position.
2. Setting Pay Upon Conversion to the Demonstration Project
    a. Determine the appropriate base salary. Conversion from NSPS into 
the demonstration project will be accomplished with full employee pay 
protection. Adverse action provisions will not apply to the conversion 
action. In accordance with section 1113(c)(1) of NDAA 2010, which 
prohibits a loss of or decrease in pay upon transition from NSPS, 
employees converting to the demonstration project will retain the 
adjusted salary (as defined in 5 CFR 9901.304) from their NSPS 
permanent or temporary position at the time the position converts. Upon 
conversion, the retained NSPS adjusted salary may not exceed Level IV 
of the Executive Schedule plus 5 percent. If the employee's base pay 
exceeds the maximum rate for his or her assigned demonstration project 
pay band, the employee will be placed on indefinite pay retention until 
an event, as described in 5 CFR 536.308, results in a loss of 
eligibility for or termination of pay retention. Increases to the 
retained rate after conversion will be in accordance with applicable 
regulations; however, for any NSPS employee whose retained rate exceeds 
Executive Level IV upon conversion, any adjustment to the retained rate 
in accordance with applicable pay retention regulations may not cause 
the employee's adjusted pay to exceed Executive Level IV plus 5 
percent.
    b. Employees Previously Covered by an NSPS Targeted Local Market 
Supplement (TLMS)
    Employees who were covered by an NSPS TLMS prior to conversion to 
the demonstration project will no longer be covered by a TLMS. Instead 
they may receive a locality or similar supplement (e.g., a staffing 
supplement), whichever is greater, or pay retention, if applicable. The 
adjusted base pay upon conversion will not change.
    c. Other Pay. Once converted, employees may receive other 
adjustments and/or differentials, as applicable, as described in this 
Federal Register notice or an internal operating instruction.
3. Fair Labor Standards Act (FLSA) Status
    Since FLSA provisions were not waived under NSPS and duties do not 
change upon conversion to the demonstration project, the FLSA status 
determination will remain the same upon conversion. Employees will be 
converted to the demonstration project with the same FLSA status they 
had under NSPS.
4. Transition Equity
    During the first 12 months following conversion to the 
demonstration project, management may approve certain adjustments 
within the pay band for pay equity reasons stemming from conversion. 
For example, if an employee would have been otherwise promoted but 
demonstration project pay band placement no longer provides a promotion 
opportunity, a pay equity adjustment may be authorized provided the 
adjustment does not cause the employee's base pay to exceed the maximum 
rate of his or her assigned pay band and the employee's performance 
warrants an adjustment. The decision to grant a pay equity adjustment 
is at the sole discretion of TARDEC management and is not subject to 
employee appeal procedures.
    During the first 12 months following conversion, management may 
approve an adjustment of not more than 10 percent, provided the 
adjustment does not cause the employee's base pay to exceed the maximum 
rate of his or her assigned pay band and the employee's performance 
warrants an adjustment, to mitigate base pay inequities that may be 
caused by artifacts of the process of conversion into STRL pay bands. 
For instance, inappropriate ``leap-frogging'' of more senior employees 
by more junior employees when the inversion of compensation levels are 
not warranted by performance or mission accomplishment outcomes.
5. Pay Band Retention
    Employees converting from NSPS to the demonstration project will 
not be granted pay band retention based on the pay band formerly 
assigned to their NSPS position.
6. Converting Employees on NSPS Term and Temporary Appointments
    a. Employees serving under term appointments at the time of 
conversion to the demonstration project will be converted to modified 
term appointments provided they were hired for their current positions 
under competitive procedures. These employees will be eligible for 
conversion to career or career-conditional appointments in the 
competitive service provided they:
    (1) Have served two years of continuous service in the term 
position;
    (2) Were selected for the term position under competitive 
procedures; and
    (3) Are performing at a satisfactory level.
    Converted term employees who do not meet these criteria may 
continue on their term appointment up to the not-to-exceed date 
established under NSPS. Extensions of term appointments after 
conversion may be granted in accordance with 5 CFR part 316, subpart D.
    b. Employees serving under temporary appointments under NSPS when 
their organization converts to the demonstration project will be 
converted

[[Page 55129]]

and may continue on their temporary appointment up to the not-to-exceed 
date established under NSPS. Extensions of temporary appointments after 
conversion may be granted in accordance with 5 CFR 213.104 for excepted 
service employees and 5 CFR part 316, subpart D, for competitive 
service employees.
7. Probationary Periods
    a. Initial probationary period. NSPS employees who have completed 
an initial probationary period prior to conversion from NSPS will not 
be required to serve a new or extended initial probationary period. 
NSPS employees who are serving an initial probationary period upon 
conversion from NSPS will serve the time remaining on their initial 
probationary period and may have their initial probationary period 
extended in accordance with the demonstration project regulation and 
implementing issuances.
    b. Supervisory probationary period. NSPS employees who have 
completed a supervisory probationary period prior to conversion from 
NSPS will not be required to serve a new or extended supervisory 
probationary period while in their current position. NSPS employees who 
are serving a supervisory probationary period upon conversion from NSPS 
will serve the time remaining on their supervisory probationary period.

B. Conversion From Non-NSPS System to the Demonstration Project

    Conversion from current GS, Acq Demo, or other systems not covered 
by NSPS into the new pay band system will be accomplished during 
implementation of the demonstration project (refer Section III.A.2 and 
Table 1). 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 
or decrease of adjusted base pay on conversion. If the employee's base 
pay exceeds the maximum rate for his or her assigned demonstration 
project pay band, the employee will be placed on pay retention.
    Employees serving under term appointments at the time of the 
implementation of the demonstration project will be converted to the 
modified term appointment if all requirements (refer III.D.4 Revisions 
to Term Appointments) have been satisfied. Position announcements, 
etc., will not be required for these term appointments.
    Employees serving under temporary appointments at the time of the 
implementation of the demonstration project will be converted to the 
demonstration project. Employees on temporary appointments at the time 
of conversion may continue on those appointments up to the not-to-
exceed date established under the former system. Extensions of 
temporary appointments may be granted in accordance with 5 CFR 213.104 
for excepted service employees and 5 CFR part 316, subpart D, for 
competitive service employees.
    Employees who are covered by GS special salary rates prior to 
entering the demonstration project will no longer be considered a 
special salary rate employee under the demonstration project. Instead, 
they will receive locality pay or a staffing supplement, whichever is 
greater. Special conversion rules, as described in III.F.10, describe 
staffing supplements which replace GS special salary rates and NSPS 
targeted local market supplements and apply to employees in occupations 
and geographic locations to which GS special salary rates or NSPS 
targeted local market supplements would otherwise apply. 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.10.
    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 12 months following conversion, employees will 
receive 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. For employees who 
receive an in-level promotion in accordance with this provision at the 
time of conversion, a prorated step increase equivalent as defined 
below will not be provided.
    For GS employees, rules governing GS within-grade increases (WGIs) 
will continue in effect until conversion. Adjustments to a GS 
employee's base pay for WGI equity will be computed as of the effective 
date of conversion provided the employee is performing at an acceptable 
level of competence as defined in 5 CFR 531.403. WGI equity will be 
acknowledged by increasing base pay by a prorated share based upon the 
number of full weeks an employee has completed toward the next higher 
step. Payment will equal the value of the employee's next WGI times the 
proportion of the waiting period completed (weeks completed in waiting 
period/weeks in the waiting period) at the time of conversion. GS 
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. GS employees 
serving on retained grade will receive WGI equity adjustments provided 
they are not at step 10 or receiving a retained rate. Acq Demo and NSPS 
employees do not receive WGI's and will convert into the demonstration 
project without WGI adjustments.
    Employees who enter the demonstration project from other pay 
systems (DCIPS, Acq Demo, or other STRLs) after initial implementation 
by lateral transfer, promotion, reassignment, reduction in band, or 
realignment will be subject to the pay rules that govern conversion out 
of their respective systems. Pay conversion into Lab Demo will be based 
upon the job classification of the employee's new position.

C. Movement Out of the Demonstration Project

1. Termination of Coverage Under the TARDEC Demonstration Project Pay 
Plans
    In the event employees' coverage under the TARDEC demonstration 
project pay plans is terminated, employees move with their 
demonstration project position to another system applicable to TARDEC 
employees. The grade of their demonstration project position in the

[[Page 55130]]

new system will be based upon the position classification criteria of 
the gaining system. Employees when converted to their positions 
classified under the new system will be eligible for pay retention 
under 5 CFR part 536, if applicable.
2. Determining a GS-Equivalent Grade and GS-Equivalent Rate of Pay for 
Pay Setting Purposes When a TARDEC Employee's Coverage by a 
Demonstration Project Pay Plan Terminates or the Employee Voluntarily 
Exits the TARDEC Demonstration Project
    a. If a demonstration project employee is moving to a GS or other 
pay system position, the following procedures will be used to translate 
the employee's project pay band to a GS-equivalent grade and the 
employee's project base pay to the GS-equivalent rate of pay for pay 
setting purposes. The equivalent GS grade and GS rate of pay must be 
determined before movement out of the demonstration project and any 
accompanying geographic movement, promotion, or other simultaneous 
action. For lateral reassignments, the equivalent GS grade and rate 
will become the employee's converted 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) Equivalent GS-Grade-Setting Provisions
    An employee in a pay band corresponding to a single GS grade is 
provided that grade as the GS-equivalent grade. An employee in a pay 
band corresponding to two or more grades is determined to have a GS-
equivalent grade corresponding to one of those grades according to the 
following rules:
    (a) 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:
    i. The GS base schedule;
    ii. The locality rate schedule for the locality pay area in which 
the position is located; or
    iii. The appropriate special rate schedule for the employee's 
occupational series, as applicable.

If the series is a two-grade interval series, only odd-numbered grades 
are considered below GS-11.
    (b) If the employee's adjusted 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.
    (c) 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.
    (d) 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.
    (e) Exception: An employee will not be provided 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 either undergone a reduction in band 
or a reduction within the same pay band due to unacceptable 
performance.
(2) Equivalent GS-Rate-of-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:
    (a) The pay conversion is done before any geographic movement or 
other pay-related action that coincides with the employee's movement or 
conversion out of the demonstration project.
    (b) An employee's adjusted 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:
    i. The GS base schedule,
    ii. An applicable locality rate schedule, or
    iii. An applicable special rate schedule.
    (c) 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).
    (d) 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).
(3) 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 pay 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).

D. 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 to provide other 
appropriate services.

E. Automation

    The TARDEC will continue to use the Defense Civilian Personnel Data 
System (DCPDS) for the processing of personnel-related data. Payroll 
servicing

[[Page 55131]]

will continue from the respective payroll offices.
    An automated tool will be used to support computation of 
performance-related pay increases and awards and other personnel 
processes and systems associated with this project.

F. 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 
section 342(b) demonstration projects. TARDEC, 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 will be made if warranted by 
formative evaluation data and will be published in the Federal Register 
to the extent required. At the five-year point, the demonstration 
project will be reexamined for permanent implementation, modification 
and additional testing, or termination of the entire demonstration 
project.

VII. Evaluation Plan

A. Overview

    Chapter 47 of title 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 and 
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

    1. Appendix D shows an intervention model for the evaluation of the 
demonstration project. The model is designed 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, and 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.
    2. 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 (e.g., downsizing, 
changes in mission, or the economy) can have on the effectiveness of 
the program. The degree of implementation considers:
    a. The extent to which the HR changes are given a fair trial 
period;
    b. The extent to which the changes are implemented; and
    c. The extent to which the 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.
    3. 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 System 
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.
    4. 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:
    a. The expected effects of the intervention,
    b. The corresponding measures, and
    c. 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, 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 title 5 
U.S.C. comparison group will be compiled from the Central Personnel 
Data File (CPDF). This comparison group will consist of workforce data 
from Government-wide research organizations in civilian Federal 
agencies with missions and job series matching those in the DoD 
laboratories. This comparison group will be used primarily in the 
analysis of pay banding costs and turnover rates.

D. Method of Data Collection

    1. 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

[[Page 55132]]

doing, the confidence of overall findings will be strengthened as the 
different collection methods substantiate each other.
    2. Both quantitative and qualitative data will be used when 
evaluating outcomes. The following data will be collected:
    a. Workforce data;
    b. Personnel office data;
    c. Employee attitude surveys;
    d. Focus group data;
    e. Local site historian logs and implementation information;
    f. Customer satisfaction surveys; and
    g. Core measures of organizational performance.
    3. The evaluation effort will consist of two phases, formative and 
summative evaluation, covering at least 5 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 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 9. Project evaluation costs are not expected to continue beyond 
the first five years unless the results and external requirements 
warrant further evaluation.

                                      Table 9--Projected Development Costs
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                       FY10            FY11            FY12            FY13            FY14
----------------------------------------------------------------------------------------------------------------
Training........................             25K             50K             15K             10K              5K
Project Evaluation..............              0K             30K             25K             25K             25K
Automation......................             50K             40K             40K             40K             40K
                                 -------------------------------------------------------------------------------
    Totals......................             75K            120K             80K             75K             70K
----------------------------------------------------------------------------------------------------------------

IX. Required Waivers to Law and Regulation

    Public Law 106-398 gave the DoD the authority to experiment with 
several personnel management innovations. In addition to the 
authorities granted by the law, the following are waivers of law and 
regulation that will be necessary for implementation of the 
demonstration project. In due course, additional laws and regulations 
may be identified for waiver request.
    The following waivers and adaptations of certain title 5 U.S.C. and 
5 CFR 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 5, section 552a: Records maintained on individuals. This 
section is waived only to the extent required to clarify that 
volunteers under the Voluntary Emeritus Corps are considered employees 
of the Federal government for purposes of this section.
    Chapter 31, section 3111: Acceptance of Volunteer Service. Waived 
to allow for a Volunteer Emeritus Corps in addition to student 
volunteers.
    Chapter 33, subchapter 1, section 3318(a): Competitive Service, 
Selection from Certificate. Waived to the extent necessary to eliminate 
the requirement for selection using the ``Rule of Three.''
    Chapter 33, section 3319: Alternative Ranking and Selection 
Procedures. This section is waived to eliminate quality categories.
    Chapter 33, section 3321: Competitive Service; Probationary Period. 
This section waived only to the extent necessary to replace grade with 
``pay band level.''
    Chapter 33, section 3341: Details. Waived as necessary to extend 
the time limits for details.
    Chapter 41, section 4108 (a)-(c): Employee Agreements: Service 
After Training. Waived to the extent necessary to: (1) Provide that the 
employee's service obligation is to continue in the service of TARDEC 
for the period of the required service; (2) permit the TARDEC Director, 
to waive in whole or in part, a right of recovery; and (3) require 
employees under the Student Career Experience Program who have received 
tuition assistance to sign a service agreement up to three times the 
length of the training.
    Chapter 43, section 4302 and 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) through (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 45, subchapter I, section 4502(a) and (b): Waiver to permit 
TARDEC to approve awards up to $25,000 for individual employees.
    Chapter 51, sections 5101-5112: Classification. Waived as necessary 
to allow for the demonstration project pay banding system.
    Chapter 53, sections 5301, 5302 (8) and (9), 5303, and 5304: Pay 
Comparability System. Sections 5301,

[[Page 55133]]

5302, and 5304 are waived to the extent necessary to allow: (1) 
Demonstration project employees to be treated as GS employees and (2) 
basic rates of pay under the demonstration project to be treated as 
scheduled rates of pay.
    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: General Schedule 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 or NSPS Targeted Local Market 
Supplements 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'' contribution; (4) provide that an employee on pay 
retention whose rating of record is ``Unacceptable'' contribution 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; 
and (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.
    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.
    Chapter 55, section 5545(d): Hazardous duty differential. Waived to 
the extent necessary to allow demonstration project employees to be 
treated as GS employees.
    Chapter 55, section 5546: Waived to allow holiday premium pay at 
twice an employee's adjusted salary hourly rate for each hour worked as 
directed or approved, including overtime hours.
    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 an 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 incentives 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) that management may offer a bonus to 
incentivize geographic mobility to a SCEP student.
    Chapter 59, section 5941: Allowances based on living costs and 
conditions of environment; employees stationed outside continental U.S. 
or Alaska. Waived to the extent necessary to provide that cost of 
living allowances paid to employees under the demonstration project are 
paid in accordance with regulations prescribed by the President (as 
delegated to OPM).
    Chapter 75, sections 7501(1), 7511(a)(1)(A)(ii), and 
7511(a)(1)(C)(ii): Adverse Actions--Definitions. Waived to the extent 
necessary to allow for up to a three-year probationary period and to 
permit termination during the extended probationary period without 
using adverse action procedures for those employees serving a 
probationary period under an initial appointment except for those with 
veterans' preference.
    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; (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; and (3) 
reduction in supervisory pay due to a performance review.

B. Waivers to Title 5 CFR

    Part 300, sections 300.601 through 300.605: 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, section 315.801(a), 315.801(b)(1), (c), and (e), and 
315.802(a) and (b)(1): Probationary period and Length of probationary 
period. Waived to the extent necessary to allow for up to a three-year 
probationary period and to permit termination during the extended 
probationary period without using adverse action procedures for those 
employees serving a probationary period under an initial appointment 
except for those with veterans' preference.
    Part 315, section 315.901 and 315.907: Probation on Initial 
Appointment to a Supervisory or Managerial Position. This section 
waived only to the extent necessary to replace grade with ``pay band 
level.''
    Part 316, sections 316.301, 316.303, and 316.304: Term Employment. 
(These sections are waived to allow modified term appointments as 
described in this Federal Register notice.)
    Part 332, sections 332.401 and 332.404: Order on Registers and 
Order of Selection from Certificates. (These sections are waived to the 
extent necessary to allow: (1) No rating and ranking when there are 15 
or fewer qualified applicants and no preference eligibles; (2) the 
hiring and appointment authorities as described in this Federal 
Register notice; and (3) elimination of the ``rule of three.''
    Part 335, section 335.103(c)(1)(i) and (ii): Agency promotion 
programs. Waived to the extent necessary to extend the length of 
details and temporary promotions without requiring competitive 
procedures or numerous short-term renewals.
    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 340, subpart A, subpart B, and subpart C: Other than Full-Time 
Career Employment. (These subparts are waived to the extent necessary 
to allow a Volunteer Emeritus Corps.)
    Part 351, Reduction in Force. This part is waived to the extent 
necessary to allow provisions of the RIF plan as described in this 
Federal Register notice. In accordance with this FR, TARDEC will define 
the competitive area, retention standing, and displacement limitations. 
Specific waivers include:
    Part 351.402(b): Competitive area. Waived to expand the definition 
of a competitive area.
    Part 351, section 351.504: Credit for performance. Waived as 
necessary to revise the method for adding years of service based on 
performance; to allow for single round of competition; and modified 
displacement. Sections 351.601--351.608: Release from

[[Page 55134]]

Competitive Level. Waived order of release from a competitive level 
based upon augmented service 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 pay bands (or equivalent of five GS grades); 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; and to modify assignment rights to allow for a single 
round of competition.
    Part 410, section 410.309: Agreements to continue in service. 
Waived to the extent necessary to allow the TARDEC Director to 
determine requirements related to continued service agreements, 
including employees under the Student Career Experience Program who 
have received tuition assistance.
    Part 430, subpart B: Performance Appraisal for GS and Certain Other 
Employees. Waived to the extent necessary to be consistent with the 
demonstration project's CCAS system.
    Part 430, section 430.208(a)(1) and (2): Rating Performance. Waived 
to allow presumptive ratings for new employees hired 90 days or less 
before the end of the appraisal cycle or for other situations not 
providing adequate time for an appraisal.
    Part 432, sections 432.101-432.105: Regarding performance based 
reduction in grade and removal actions. These sections are waived to 
the extent necessary to: (1) Replace grade with ``pay band;'' (2) 
exclude reductions in pay band level not accompanied by a reduction in 
pay; and (3) allow provisions of CCAS. 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 451, subpart A, section 451.103(c)(2): Waived with respect to 
performance awards under the TARDEC CCAS.
    Part 451, Sections 451.106(b) and 451.107(b): Awards. Waived to 
permit TARDEC to approve awards up to $25,000 for individual employees.
    Part 511, subpart A: General Provisions and subpart B: Coverage of 
the GS. Waived to the extent necessary to allow for the demonstration 
project classification system 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 CFR, are covered by the classification appeal 
process outlined in this FRN section III.B.5, 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 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, subparts B: Determining Rate of Basic Pay. Waived to the 
extent necessary to allow for pay setting and CCAS 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; and (2) base rates of pay under the 
demonstration project to be treated as scheduled annual rates of pay.
    Part 536: Grade and Pay Retention: These sections waived to the 
extent necessary to: (1) Replace grade with ``pay band;'' (2) allow 
Demonstration project employees to be treated as GS employees; and (3) 
to allow provisions of this Federal Register notice pertaining to pay 
band and pay retention.
    Part 550, sections 550.105 and 550.106: Bi-weekly and annual 
maximum earnings limitations. 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.
    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.
    Part 575, subparts A, B, and C: Recruitment, Relocation, and 
Retention Incentives. 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; (2) 
Occupational Family relocation incentives to new SCEP students; and (3) 
relocation incentives to SCEP students whose worksite is in a different 
geographic location than that of the college enrolled.
    Part 575, subpart D: Supervisory Differentials. Subpart D is waived 
in its entirety.
    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.
    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 permit 
termination during the extended probationary period without using 
adverse action procedures for those employees serving a probationary 
period under an initial appointment except for those with veterans' 
preference.
    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 or NSPS Targeted Local Market 
Supplements 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: TARDEC Employees by Duty Location

    (Totals excludes SES, ST, and Wage Grade)

[[Page 55135]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.140

Appendix B: Occupational Series by Occupational Family

Engineering & Science

0801 General Engineering and Architecture Series
0803 Safety Engineering Series
0806 Materials Engineering Series
0819 Environmental Engineering Series
0830 Mechanical Engineering Series
0850 Electrical Engineering Series
0854 Computer Engineering Series
0855 Electronics Engineering Series
0858 Bioengineering and Biomedical Engineering Series
0861 Aerospace Engineering Series
0893 Chemical Engineering Series
0896 Industrial Engineering Series
0899 General Engineering Student Trainee Series
1301 General Physical Science Series
1306 Health Physics Series
1310 Physics Series
1320 Chemistry Series
1321 Metallurgy Series
1399 Physical Science Student Trainee Series
1501 General Mathematics and Statistics Series
1515 Operations Research Series
1520 Mathematics Series
1550 Computer Science Series
1599 Mathematics and Statistics Student Trainee Series

Business/Technical

0018 Safety and Occupational Health Management Series
0301 Miscellaneous Administration and Program Series
0340 Management Series
0341 Administrative Officer Series
0342 Support Services Administration Series
0343 Management and Program Analysis Series
0346 Logistics Management Series
0501 Financial Administration and Program Series
0510 Accounting Series
0802 Engineering Technical Series
0856 Electronics Technical Series
0895 Industrial Engineering Technical Series
0905 General Attorney Series
0950 Paralegal Specialist Series
1000 Information and Arts Group Series
1035 Public Affairs Series
1071 Audiovisual Production Series
1083 Technical Writing and Editing Series
1084 Visual Information Series
1100 Business and Industry Series
1102 Contracting Series
1222 Patent Attorney Series
1311 Physical Science Technician Series
1410 Librarian Series
1412 Technical Information Services Series
1670 Equipment Services Series
1702 Education and Training Technician Series
1712 Training Instructor Series
1910 Quality Assurance Series
2032 Packaging Series
2210 Information Technology Management Series

General Support

0303 Miscellaneous Clerk and Assistant Series
0318 Secretary Series
0326 Office Automation Clerical and Assistance Series
0335 Computer Clerk and Assistant Series
0344 Management and Program Clerical and Assistance Series

Appendix C: Contribution-Based Compensation and Appraisal System (CCAS) 
Factors

Career Path 1: Engineering and Science Professional

Factor 1: Problem Solving

    Factor Description: This factor describes/captures personal and 
organizational problem-solving results.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Completed 
work meets projects/programs objectives. Flexibility, adaptability, 
and decisiveness are exercised appropriately. Descriptors indicate 
the type of contribution

[[Page 55136]]

appropriate for the high end of each level. Descriptors are not to 
be used individually to assess contributions, but rather are to be 
taken as a group to derive a single evaluation of the factor.
BILLING CODE 5001-06-P
[GRAPHIC] [TIFF OMITTED] TN09SE10.141


[[Page 55137]]


[GRAPHIC] [TIFF OMITTED] TN09SE10.142

Factor 2: Teamwork/Cooperation

    Factor Description: This factor, applicable to all teams, 
describes/captures individual and organizational teamwork and 
cooperation.
    Expected Performance Criteria (Applicable To All Contributions 
at All Levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions exhibit and foster cooperation and 
teamwork. Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55138]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.143

Factor 3: Customer Relations

    Factor Description: This factor describes/captures the 
effectiveness of personal and organizational interactions with 
customers (anyone to whom services or products are provided), both 
internal (within an assigned organization) and external (outside an 
assigned organization).
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions enhance customer relations and 
actively promote rapport with customers. Flexibility, adaptability, 
and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55139]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.144

Factor 4: Leadership/Supervision

    Factor Description: This factor describes/captures individual 
and organizational leadership and/or supervision. Recruits, 
develops, motivates, and retains quality team members in accordance 
with EEO/AA and Merit Principles. Takes timely/appropriate personnel 
actions, communicates mission and organizational goals; by example, 
creates a positive, safe, and challenging work environment; 
distributes work and empowers team members.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Leadership 
and/or supervision effectively promotes commitment to mission 
accomplishment. Flexibility, adaptability, and decisiveness are 
exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55140]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.145

Factor 5: Communication

    Factor Description: This factor describes/captures the 
effectiveness of oral/written communications.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. 
Communications are clear, concise, and at appropriate level. 
Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55141]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.146

Factor 6: Resource Management

    Factor Description: This factor describes/captures personal and 
organizational utilization of resources to accomplish the mission. 
(Resources include, but are not limited to, personal time, equipment 
and facilities, human resources, and funds.)
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Resources 
are utilized effectively to accomplish mission. Flexibility, 
adaptability, and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55142]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.147

Career Path 2: Business and Technical Support

Factor 1: Problem Solving

    Factor Description: This factor describes/captures personal and 
organizational problem-solving.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Completed 
work meets project/program objectives. Flexibility, adaptability, 
and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55143]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.148

Factor 2: Teamwork/Cooperation

    Factor Description: This factor describes/captures individual 
and organizational teamwork and cooperation.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions exhibit and foster cooperation and 
teamwork. Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55144]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.149

Factor 3: Customer Relations

    Factor Description: This factor describes/captures the 
effectiveness of personal and organizational interactions with 
customers (anyone to whom services or products are provided), both 
internal (within an assigned organization) and external (outside an 
assigned organization).
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions enhance customer relations and 
actively promote rapport with customers. Flexibility, adaptability, 
and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55145]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.150

Factor 4: Leadership/Supervision

    Factor Description: This factor describes/captures individual 
and organizational leadership and/or supervision. Recruits, 
develops, motivates, and retains quality team members in accordance 
with EEO/AA and Merit Principles. Takes timely/appropriate personnel 
actions, communicates mission and organizational goals; by example, 
creates a positive, safe, and challenging work environment; 
distributes work and empowers team members.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Leadership 
and/or supervision effectively promotes commitment to mission 
accomplishment. Flexibility, adaptability, and decisiveness are 
exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55146]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.151

Factor 5: Communication

    Factor Description: This factor describes/captures the 
effectiveness of oral/written communications.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. 
Communications are clear, concise, and at appropriate level. 
Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55147]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.152

Factor 6: Resource Management

    Factor Description: This factor describes/captures personal and 
organizational utilization of resources to accomplish the mission.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Resources 
are utilized effectively to accomplish mission. Flexibility, 
adaptability, and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55148]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.153

Career Path 3: General Support

Factor 1: Problem Solving

    Factor Description: This factor describes/captures personal and 
organizational problem solving.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Completed 
work meets project/program objectives. Flexibility, adaptability, 
and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55149]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.208

Factor 2: Teamwork/Cooperation

    Factor Description: This factor describes/captures individual 
and organizational teamwork and cooperation.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions exhibit and foster cooperation and 
teamwork. Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55150]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.155

Factor 3: Customer Relations

    Factor Description: This factor describes/captures the 
effectiveness of personal and organizational interactions with 
customers (anyone to whom services or products are provided), both 
internal (within an assigned organization) and external (outside an 
assigned organization).
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Personal 
and organizational interactions enhance customer relations and 
actively promote rapport with customers. Flexibility, adaptability, 
and decisiveness are exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

[[Page 55151]]

[GRAPHIC] [TIFF OMITTED] TN09SE10.156

Factor 4: Leadership/Supervision

    Factor Description: This factor describes/captures individual 
and organizational leadership and/or supervision. Recruits, 
develops, motivates, and retains quality team members in accordance 
with EEO/AA and Merit Principles. Takes timely/appropriate personnel 
actions, communicates mission and organizational goals; by example, 
creates a positive, safe, and challenging work environment; 
distributes work and empowers team members.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Leadership 
and/or supervision effectively promotes commitment to mission 
accomplishment. Flexibility, adaptability, and decisiveness are 
exercised appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN09SE10.157

Factor 5: Communication

    Factor Description: This factor describes/captures the 
effectiveness of oral/written communications.
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. 
Communications are clear, concise, and at appropriate level. 
Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level.
    Descriptors are not to be used individually to assess 
contributions, but rather are to be taken as a group to derive a 
single evaluation of the factor.

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Factor 6: Resource Management

    Factor Description: This factor describes/captures personal and 
organizational utilization of resources to accomplish the mission. 
(Resources include, but are not limited to, personal time, equipment 
and facilities, human resources, and funds.)
    Expected Performance Criteria (Applicable to all contributions 
at all levels):
    Work is timely, efficient, and of acceptable quality. Available 
resources are utilized effectively to accomplish mission. 
Flexibility, adaptability, and decisiveness are exercised 
appropriately.
    Descriptors indicate the type of contribution appropriate for 
the high end of each level. Descriptors are not to be used 
individually to assess contributions, but rather are to be taken as 
a group to derive a single evaluation of the factor.
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Appendix D: Intervention Model
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[FR Doc. 2010-22203 Filed 9-8-10; 8:45 am]
BILLING CODE 5001-06-C