[Federal Register Volume 75, Number 237 (Friday, December 10, 2010)]
[Notices]
[Pages 77380-77447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30876]
[[Page 77379]]
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Part V
Department of Defense
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Office of the Secretary
Science and Technology Reinvention Laboratory Personnel Management
Demonstration Project, Department of Navy, Office of Naval Research;
Notice
Federal Register / Vol. 75 , No. 237 / Friday, December 10, 2010 /
Notices
[[Page 77380]]
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DEPARTMENT OF DEFENSE
Office of the Secretary
Science and Technology Reinvention Laboratory Personnel
Management Demonstration Project, Department of Navy, Office of Naval
Research
AGENCY: Office of the Deputy Under Secretary of Defense (Civilian
Personnel Policy) (DUSD (CPP)), Department of Defense (DoD).
ACTION: Notice.
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SUMMARY: Section 342(b) of Public Law (Pub .L.) 103-337, as amended by
section 1114 of Public Law 106-398, authorizes the Secretary of Defense
(SECDEF) to conduct personnel management demonstration projects at
Department of Defense (DoD) laboratories designated as Science and
Technology Reinvention Laboratories (STRLs). Section 1107 of Public Law
110-181, as amended by section 1109 of Public Law 110-417, requires the
SECDEF to execute a process and plan to employ the Department's
personnel management demonstration project authorities found in section
4703 of title 5, United States Code (U.S.C.) at the STRLs enumerated in
section 9902(c)(2) of title 5 U.S.C., as redesignated in section 1105
of Public Law 111-84 and 73 Federal Register (FR) 73248, to enhance the
performance of the missions of the laboratories. Section 1107 of Public
Law 110-181 further authorizes in subsection 1107(c) that any
flexibility available to any demonstration laboratory shall be
available for use at any other laboratory as enumerated in section
9902(c)(2) of title 5 U.S.C. The Office of Naval Research (ONR) is
listed as one of the designated STRLs.
This notice announces the approval of the final personnel
demonstration project plan for the ONR. This includes adoption of
existing demonstration project flexibilities in other STRL
demonstration project plans and any necessary modifications thereto for
better conformance to the ONR mission requirements and culture.
DATES: Implementation of this demonstration project will begin no
earlier than December 1, 2010.
FOR FURTHER INFORMATION CONTACT: Office of Naval Research: Ms. Margaret
J. Mitchell, Director, Human Resources Office, Office of Naval
Research, 875 North Randolph Street, Code 01HR, Arlington, VA 22203;
[email protected].
DoD: Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key
Boulevard, Arlington, VA 22209-5144
SUPPLEMENTARY INFORMATION:
1. Background
Since 1966, many studies of Department of Defense (DoD)
laboratories have been conducted on laboratory quality and personnel.
Almost all of these studies have recommended improvements in civilian
personnel policy, organization, and management. Pursuant to the
authority provided in section 342(b) of Public Law 103-337, as amended,
a number of DoD STRL personnel demonstration projects were approved.
These projects are ``generally similar in nature'' to the Department of
Navy's ``China Lake'' Personnel Demonstration Project. The terminology,
``generally similar in nature,'' does not imply an emulation of various
features, but rather implies a similar opportunity and authority to
develop personnel flexibilities that significantly increase the
decision authority of laboratory department heads and/or directors.
This demonstration project involves: (1) Streamlined delegated
examining; (2) noncitizen hiring; (3) expanded detail authority; (4)
extended probationary period for newly hired employees; (5) expanded
temporary promotion; (6) voluntary emeritus program; (7) pay banding;
(8) contribution-based compensation system; (9) performance-based
reduction-in-pay or removal actions; and (10) reduction-in-force (RIF)
procedures.
2. Overview
DoD published notice in 73 FR 73248, December 2, 2008, that
pursuant to subsection 1107(c) of Public Law 110-181 the three STRLs
listed in 73 FR 73248 not having personnel demonstration projects at
this time may adopt the flexibilities of the other laboratories listed
in subsection 9902(c)(2), as redesignated in section 1105 of Public Law
111-84. ONR is one of the three STRLs specified in this provision.
Accordingly, ONR intends to build its demonstration project using
flexibilities adopted from existing STRL demonstration projects
(specifically the Naval Research Laboratory (NRL), Aviation Missile
Research, Development and Engineering Center (AMRDEC), Medical Research
and Materiel Command (MRMC), and Communications-Electronics Research,
Development and Engineering Center (CERDEC)). Final plans for the NRL,
AMRDEC, MRMC, CERDEC personnel management demonstration projects were
published in Federal Registers as follows:
Department of the Navy: NRL--64 FR 33970, June 24, 1999.
No amendments have been published;
Department of the Army: AMRDEC--62 FR 34876 and 62 FR
34906, June 27, 1997; and amendments and/or corrections to final plans
published--64 FR 11074, March 8, 1999; 64 FR 12216, March 11, 1999; 65
FR 53142, August 31, 2000; and 67 FR 5716, February 6, 2002;
Department of the Army: MRMC--63 FR 10439, March 3, 1998;
and amendments and/or corrections to final plans published--64 FR
30377, June 7, 1999; 64 FR 12216, March 11, 1999; 65 FR 53142, August
31, 2000; and 67 FR 5716, February 6, 2002; and
Department of the Army: CERDEC--66 FR 10439, October 30,
2001.
On May 28, 2010, DoD published the proposed ONR demonstration
project plan in 75 FR 30918. During the public comment period ending
June 28, 2010, DoD received comments from 22 individuals. All comments
were carefully considered.
The following summary addresses the comments received, provides
responses, and notes resultant changes to the original proposed project
plan. Most commenters addressed several topics which are counted
separately. Thus, the total number of comments exceeds the number of
individuals cited earlier.
A. General Project Comments
(1) Comment: Five commenters addressed the necessity and wisdom of
implementing a laboratory personnel demonstration project at ONR
considering the recent repeal of the DoD National Security Personnel
System (NSPS), and that the implementation of a demonstration project
similar to NSPS could not improve overall performance of an above-
average organization and could only create controversial concerns for
ONR's workforce.
Response: Government studies have validated the need for
establishing different personnel systems within STRLs. There are
currently eight operating STRL Personnel Demonstration Projects with
another seven STRL personnel demonstration projects pending expected
implementation between December 2010 and April 2011. These seven STRLs
were mandated to implement a demonstration project within eighteen
months of enactment of NDAA for FY 2010 (Public Law 111-84) by section
1105 of that law. Regarding the similarity to NSPS, ONR's demonstration
project does have foundational similarities, but its rating and payout
structures differ from NSPS.
[[Page 77381]]
(2) Comment: One commenter wanted to know what the reasons are
behind ONR's decision to implement a demonstration project.
Response: Section 1105 of Public Law 111-84 requires all STRLs
named therein to implement a demonstration project within 18 months of
the enactment of the law. Regardless of the legal mandate to implement
a demonstration project, ONR has displayed a continued interest in
having a demonstration project since 2001. Since that time, ONR
leadership has believed that a personnel demonstration project will
enable greater overall organizational effectiveness, enable ONR to
sustain a quality workforce, improve overall employee satisfaction, and
ultimately improve ONR's ability to achieve its mission.
(3) Comment: One commenter felt that the implementation of a
demonstration project performance management system will be overly
cumbersome, elaborate, and time consuming.
Response: The performance management system to be carried out under
the demonstration project will require more attention from employees
and supervisors when compared to the General Schedule's performance
management system. The demonstration project places a greater emphasis
on performance management by utilizing the concepts of cascading, line-
of-sight goals and on-going performance communications. Organizations
employing such techniques in their performance management systems
experience increased productivity and customer satisfaction. A primary
goal of the performance management system under ONR's demonstration
project is to facilitate a decrease in misdirected work activities, and
as a result, provide meaning and distinguishing value to the employee's
work and contributions.
(4) Comment: Three commenters questioned ONR's decision to adopt
the Naval Research Laboratory's demonstration project, as they do not
see a similarity between NRL's and ONR's operation, location, and
workforce structure.
Response: Although there are some important differences between
work performed by NRL and ONR, there are close similarities between the
workforces. Just like NRL, ONR has a highly educated and experienced
workforce, with expertise in science, engineering, acquisition/
contracting, finance, and other professional areas. The demonstration
project programs that were designed to attract, motivate, reward, and
retain the NRL workforce have been carefully reviewed by ONR management
to be sure they are right for the ONR workforce. Where needed, some
modifications to NRL's programs have been made to better suit ONR's
workforce needs and culture. The demonstration project programs are not
dependent on where the employees are physically working, but rather
they make up a new system for the Command to manage and reward all
employees' work and contributions consistently and fairly.
(5) Comment: Two commenters inquired about the possibility of
conducting a pilot demonstration project at ONR Headquarters to test
the demonstration project programs prior to implementation at the
regional or global offices.
Response: As established by section 1105 of Public Law 111-84, ONR
must implement a demonstration project before the end of April 2011 for
all eligible employees, regardless of the location of their official
duty station. Due to the deadline of this mandate, there is not
sufficient time to design, implement, and test a small pilot before
activating the demonstration project for all eligible ONR employees.
(6) Comment: One commenter believed that the WIGI buy-in
calculation is flawed for OCONUS employees because the formula assumes
everyone receives locality pay. This was specifically in reference to
paragraph 5 on page 30217 stating that special salary employees will be
eligible to receive full locality pay and OCONUS employees do not
receive locality pay.
Response: The determination of basic pay (not including locality
pay or a special salary rate) is the foundation of the formula for both
the WIGI buy-in and the recalculation of pay for an employee on a
special salary rate. Once the new basic pay is determined in either
situation, any WIGI buy-in is added to the new basic pay and the sum is
multiplied by a locality pay percentage, if appropriate. If the new
basic pay exceeds the maximum for the current pay band, the employee
will be granted maintained pay.
(7) Comment: One commenter asked how Living Quarters Allowance
(LQA) and post allowance levels established by the Department of State
Standardized Regulations (DSSR) would be determined under Lab Demo.
Response: Typically, personnel demonstration projects determine a
General Schedule grade equivalency using their conversion out of the
demonstration project schema to determine entitlements to such items as
Living Quarters Allowance, training, base housing, etc. The equivalent
General Schedule grade is then used to compare with the entitlement
requirements. For example, the demo General Schedule equivalency grade
would be compared to the LQA matrix chart containing GS grades in
section 135.2 of the DSSR to determine comparable LQA entitlements.
(8) Comment: One commenter asked how the Global offices will be
supported when there is a large time-zone difference and ONR's Human
Resource (HR) department is not opened 24 hours a day.
Response: ONR's Global offices will continue to receive the same
high level of support under the demonstration project as they do
currently under the General Schedule. Based on the experience of other
previously implemented personnel demonstration projects, ONR does not
anticipate any issues associated with the demonstration project that
would require routine around-the-clock access to the Headquarters HR
Department. ONR HR will endeavor to respond to any concern within 24
hours on demo issues and make accommodations for their Global customers
to ensure continued enhanced customer satisfaction.
(9) Comment: One commenter noted that ONR has primarily adopted
NRL's STRL personnel demonstration project, and used in its FRN the
language from NRL's original FRN. A proposed amendment has since been
written by NRL and the commenter recommended that ONR review NRL's
proposed amendment and adopt the suggested changes as appropriate. The
commenter also recommended ONR review the minor changes that NRL made
as well and include those where appropriate.
Response: ONR agrees with the commenter and has carefully reviewed
NRL's amendment and list of minor changes. ONR has modified the FRN in
a number of places as a result of this review and those changes are
listed in the subsequent summary of substantive changes.
B. CCS Appraisal Process
(1) Comment: One commenter expressed concern that employees will be
told verbally by their supervisors to expect a certain Overall
Contribution Score (OCS) and payout but the actual payout amount
received would be less than what the employee was led to expect by
their supervisor.
Response: Under ONR's demonstration project, standard operating
procedures and policies will be such that employees receive
notification of their OCS and adjusted basic pay including locality
only after a final decision has been rendered by the Pay Pool Panel.
Employees are not to be
[[Page 77382]]
made aware of their initial suggested score provided by their
supervisor or potential adjusted basic pay prior to the Pay Pool
Manager's approval of the Pay Pool Panel's final decision.
(2) Comments: Fairness: Six commenters stated concerns about the
equitable application of the evaluations made under the Contribution-
based Compensation System (CCS). Two commenters thought the system was
too subjective and favoritism would drive the process. One commenter
expressed concern that more credit would be given to scientific than
support personnel. One commenter felt that the CCS system would only
reward supervisors for outcomes and ultimately create a negative
working environment for their subordinates. Two commenters discussed
the need for a 360-degree performance evaluation plan for supervisors
to ensure accountability for their performance management duties.
Response: To promote fairness and reduce favoritism, the CCS
process provides for review of employee assessments by a group of
supervisory officials who are in the same pay pool. In the pay pool
panel process, scores assigned by individual supervisors are reviewed
by other supervisors in the same pay pool. The supervisors work to
apply the CCS level descriptors consistently within their pay pool, and
to identify and correct any inappropriately inflated or deflated
scores. The pay pool manager provides an additional level of review and
is the ultimate approval level. CCS contains various mechanisms to
ensure employees receive proper credit under the generic contribution
elements, descriptors, and discriminators. Contribution elements may be
weighted, expectations and results to be achieved for the work assigned
may be described in supplemental criteria, and discriminators may be
considered either separately or in a more integrated manner for groups
of employees. Meaningful assessment demands consideration of quality,
value, customer service, and other criteria can be established early in
the cycle and described in supplemental information to the CCS factors.
Flexibility was deemed necessary for individual divisions to tailor the
system to their special needs. Supervisors will continue to determine
the value of employees' accomplishments when assessing their
contributions. Work valued under the current system will continue to be
valued under CCS. In addition, supervisors and employees will be
encouraged to communicate throughout the appraisal period to avoid
misunderstandings at the end of the year.
The primary benefit expected from Lab Demo is greater
organizational effectiveness through increased supervisor and employee
interaction leading to enhanced employee involvement, communication,
understanding, satisfaction, and productivity. Lab Demo training,
targeting the CCS process and goals, has been rolled out across the
Command to ensure a synonymous understanding of performance management
practices for both employees and supervisors, and to ensure that proper
performance management techniques will occur under CCS. The CCS
performance management process is designed to help supervisors create a
performance culture in which the performance and contributions of the
workforce are linked to the ONR mission. This in turn will add meaning
to the employee's job and contributions.
Supervisors will be held accountable for their performance
management duties under CCS. The CCS contribution elements and level
descriptors specifically include expectations regarding performance
management and workforce development to recognize the importance of
this value at ONR.
The managers/second-line supervisors have always been free to
solicit feedback from subordinate employees and other customers to
consider in assessing and appraising the supervisory effectiveness of
their direct subordinates and their employees. This will continue to be
an option under CCS. However, a formal program providing for 360-degree
evaluations for supervisors has not currently been implemented. ONR has
also provided mandatory hands-on training for supervisors that
emphasized supervisory responsibilities and how to engage employees in
the performance management process. In addition, supervisor performance
will be evaluated as an enhancement of the normal pay pool process.
(3) Comment: One commenter questioned the use of the CCS terms
Overcompensated and Undercompensated. The commenter felt that both
terms have a negative connotation and will not be received well by the
workforce.
Response: ONR agrees these terms could have a potential negative
connotation to some employees. However, because ONR is adopting the CCS
automated system from NRL where these terms are hosted, ONR has decided
to adopt these terms as well in order to make efficient use of
available resources. Other demos have used and are using these terms,
including NRL which has not experienced any difficulties as a result of
this terminology. It is important to note that the over- and
undercompensated nomenclature do not reflect employees' work ethic and/
or the value of their work.
(4) Comment: One commenter stated that the grouping of different
General Schedule (GS) grades in the same pay band and pay pool will not
incentivize the workforce to take on supervisory/team lead positions;
instead, it will inhibit one's decision to take on a leadership role
since, for example, a GS-14 could potentially make the same amount as a
GS-15 without taking on the added leadership responsibilities.
Response: This commenter may have misunderstood the purpose and
intent behind pay banding (grouping GS grades into one pay band). One
of the goals of ONR's demonstration project is to provide a
compensation system that will provide more flexibility to enable ONR to
compensate its employees equitably at a rate that is commensurate with
their levels of responsibility and contribution, and is more
competitive with those found in the labor market. Although the General
Schedule system did allow an organization to distinguish levels of
performance and provide different levels of rewards, the demonstration
project will provide more authority and flexibility for ONR to utilize
a wider variety of recognition. By implementing pay banding, ONR will
have the opportunity to provide a more direct link between levels of
individual contribution and the compensation received. ONR will be able
to compensate their workforce in a manner that is appropriate to their
contribution. Basic pay increases will no longer be automatic under Lab
Demo. Therefore, the workforce should have increased motivation to take
on leadership and/or supervisory roles in order to have a higher
contribution, thus having eligibility for a larger payout. In addition,
ONR has decided to adopt a Supervisory Pay Adjustment and Differential
flexibility providing even additional incentive for the workforce to
take on supervisory/team lead positions.
(5) Comment: One commenter noted that the Contribution Elements had
not yet been finalized by leadership and still needed to be reviewed
and possibly modified.
Response: This commenter is correct and ONR's leadership has
reviewed and modified the Contribution Elements as needed. The revised
Contribution Elements are included in this version of the FRN.
(6) Comment: One commenter noted that OCSs against normal pay range
[[Page 77383]]
would actually not be available until January; therefore, any reference
to providing them at the beginning of the performance assessment cycle
was incorrect.
Response: ONR agrees and has modified the FRN to reflect that OCSs
applicable to an employee's normal pay range for each appraisal period
will be available when pay actions are effected in January.
C. Compensation
(1) Comment: Two commenters had questions pertaining to those
individuals who are at the top of their pay band and questioned how
under the new system those employees would receive any benefit; whether
these individuals could receive additional compensation, and how the
system specifically would benefit, those that were assigned to a pay
band that hosted only one GS grade.
Response: If an employee's basic pay is at the top of the pay band,
s/he can receive a pay increase that is commensurate with the general
increase designated by Congress for that year. An employee whose basic
pay is at the maximum of her/his pay band may receive recognition
through a contribution award, Time-off Award, or a combination of both.
For those employees entering into a pay band that hosts only a single
grade, they will only be eligible for basic pay assigned to that pay
band. However, the employee may have the opportunity to advance to a
pay band with a higher maximum basic pay through a CCS promotion, if
appropriate.
(2) Comment: One commenter expressed concern over the possibility
of the science and engineering professionals' pay pool receiving
disproportionate funding over the other pay pools in order to provide
greater benefit to those in the Science and Engineering Career Track
with greater bonuses and basic pay increases over others at ONR.
Response: The pay pool funding normally will be set percentages of
the total basic pay of all eligible employees in a specific pay pool.
The pay pool funding percentages are the same for all pay pools. The
percentage of basic pay allotted for basic pay increases for employees
in the ONR pay pools will be the same for each pay pool, and the
percentage of basic pay allotted for contribution bonuses will also be
the same for each pay pool. For example, if the total basic pay of the
employees in Pay Pool A is $1,000,000 and the total basic pay of the
employees in Pay Pool B is $2,000,000, then the pay pool funding for
performance-based contribution awards (using ONR's historical
percentage of 1.5% for contribution-based bonuses) would be $15,000 for
Pay Pool A and $30,000 for Pay Pool B to be distributed among their
respective members based on contribution.
(3) Comment: Four commenters suggested for ONR to adopt a
flexibility for Supervisory Pay Differentials and Adjustments to
compensate supervisors for their additional performance management
responsibilities and workload.
Response: ONR agrees with the commenters and has adopted CERDEC's
flexibility for a Supervisory Pay Differential and Adjustment.
(4) Comment: One commenter expressed concern that a decision could
be made by the pay pool panel to decrease an employee's compensation.
Response: Under CCS, as with the General Schedule, an employee's
salary can only decrease as a result of an adverse or performance-based
action. This requirement currently operates under the General Schedule
and will be retained by the demonstration project to preserve an
emphasis on employee performance and conduct under a contribution-based
compensation system. The CCS rating system by itself does not implement
any mechanism to decrease an employee's basic pay. During the actual
CCS rating process and pay pool panel deliberations an employee's basic
pay will not be decreased. If based on the OCS and current salary an
employee is assessed to be in the Overcompensated category then that
employee would not be eligible for a merit increase or contribution
award, and may or may not receive a general increase. They would still
receive locality pay.
(5) Comment: One commenter noted the adjusted minimum basic rate of
pay for the S&E Professional Level V needs to be adjusted to be 120% of
the GS-15, step 1, basic pay rate for 2010, or $119,554.
Response: ONR agrees and has made the change where applicable in
the FRN.
D. Accessions and Internal Placements
(1) Comment: One Commenter expressed the need for ONR to have Lab
Demo training required for all new hires.
Response: ONR agrees and will make Lab Demo training mandatory for
all new employees and new supervisors.
(2) Comment: One commenter questioned if veterans' preference still
applied under the demonstration project and if ONR's demonstration
project complied with laws protecting veterans and disabled veterans.
Response: All statutes and regulations covering veterans'
preference will be observed under all lab demonstration programs.
E. Technology
(1) Comment: One commenter expressed the concern that the RIF
Support Systems (RIFSS) could not accommodate NRL's need and ONR should
reconsider if they will still use this system or adopt another.
Response: ONR agrees and prior to committing specifically to RIFSS
will look closely at the system's availability and capacity.
(2) Comment: One commenter pointed out that DCPDS is no longer a
legacy system.
Response: ONR agrees and the language in Section X.B. has been
modified accordingly.
(3) Comment: One commenter noted that ONR does not intend to use
the COREDOC application to generate RDs.
Response: The commenter is correct and ONR will be using RDWriter
instead. The language in Section X.C. has been updated to reflect the
correct tool intended to be used.
F. Classification
(1) Comment: Three commenters did not believe that some of the
occupational series were correctly aligned with the proper career
tracks; one stated that 0335, Computer Clerk series, was listed under
both Administrative Support and Administrative Specialist and
Professional and only belonged in the Administrative Support Career
Track; the second stated that 0110, Economist series, should be moved
to the S&E Professional Career Track because of the similarities to the
education requirements and other social science professions included in
that Career Track; and a third stated that 0802, Engineering Technician
series, should not be in the Science and Engineering Professional
Career Track but rather in the Administrative Specialist and
Professional Career Track.
Response: ONR management agrees with the reasoning of the first
commenter. Therefore, occupational series 0335 will only be aligned
with the Administrative Support Career Track. Based on the work being
done, the qualifications required, and how other STRLs, such as the Air
Force Research Laboratory, have classified 0110, ONR management
disagrees with the second commenter and occupational series 0110 will
remain in the Administrative Specialist & Professional Career Track. In
the case of the third commenter, ONR management agrees and since ONR
does
[[Page 77384]]
not have a technical career track, the proper classification for 0802
is the Administrative Specialist and Professional Career Track.
(2) Comment: Seven commenters felt that the construction of the pay
band levels for the Administrative Specialist and Professional Career
Track is either unfair or biased. One commenter specifically noted pay
band IV in the Administrative Specialist and Professional career track
sets an unfair barrier for those employees who are currently a GS-13,
and in turn signals that their work is of less importance and therefore
is not mixed with higher GS grades. Six commenters specifically
questioned why the Administrative Specialists and Professionals Career
Track does not have an Above 15 Pay Band the same way the S&E
Professionals Career Track does and feel it unfairly elevates the
importance of the S&E group over the Administrative Specialist and
Professionals.
Response: In accordance with DoD Instruction 1400.37, pages 73248
to 73252 of volume 73, ONR's demonstration project was modeled after
the demonstration project implemented at NRL. During the initial review
of ONR's demonstration project, ONR leadership learned that any change
to the NRL pay band structure would have created a year's delay in
implementing ONR's demonstration project, due to additional approval
and IT system modification requirements. Given the NDAA requirement
that ONR be under a Lab Demo before the end of April 2011, an
additional year to implement was not an option. ONR leadership
evaluated NRL's pay bands and concluded that the NRL structure would
work with ONR's current career paths and GS breakdown of the workforce.
ONR leadership decided to move forward with the NRL pay band structure.
Operational procedures and guidelines will address any unintended
limitations that this structure would impose on the career progression
of ONR employees. For example, there will be procedures for non-
competitive promotion between bands (if in a career ladder position or
if warranted by level of work and value of contributions).
ONR made the decision to participate in the DoD initiative to
implement an Above 15 Pay Band for scientific and engineering
professionals in order to take advantage of an opportunity to correct a
critical void in classification standards and guidance for civilian
senior executive Scientific and Professional (ST) and Senior Executive
Service (SES) positions. This void impacted an organization's ability
to advance scientific and engineering positions which surpass the GS-15
classification criteria because of the combination of excellent
scientific and/or engineering expertise and performance of high-level
science and technology (S&T) research and development work with
significant technical supervisory and managerial responsibilities
comprising 25 percent or more of the position's time. These positions
were not considered to be appropriately classified as STs because of
the degree of supervisory and managerial responsibilities. Conversely,
these positions were not appropriately classified as SES positions
because of their requirement for highly specialized scientific or
engineering expertise and because the positions were not at the level
of general managerial authority and impact required for an SES
position.
(3) Comment: Two commenters questioned ONR's proposed pay band
grade composition and if it was the most suitable structure for ONR.
One commenter suggested that both the S&E Professional and
Administrative Specialist and Professional Career Tracks should be
modified to have GS-5 through GS-13 in one pay band. Another commenter
suggested that a specific position could be more easily/appropriately
filled if the Administrative Support Career Track pay bands were
modified to include at least up to a GS-12 level.
Response: As stated in the response to previous comments, ONR
leadership evaluated NRL's pay bands and concluded that the NRL
structure would work with ONR's current career paths and GS breakdown
of the workforce. The different pay band structures in the Career
Tracks support the various levels of duties, qualifications, and types
and scope of work encompassed by ONR's position management structure.
Therefore, ONR management considers the NRL pay banding scheme
appropriate at this time. Since 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.
(4) Comment: One commenter questioned the approval process
designated for promotions under ONR's demonstration project. The
commenter felt that including the CNR's approval for certain promotions
(laid out in section IV.C.8) would slow down the promotion process and
actual create a more inflexible system for promotions.
Response: ONR agrees with the commenter's concern and has made the
appropriate change under section IV.C.8. It is not ONR's intent to make
the promotion process less flexible under the demonstration project.
Thus, all individuals covered under the demonstration project who are
eligible for a promotion will need a promotion nomination by their
supervisor, endorsement from the pay pool panel, and final approval by
the pay pool manager. CCS Promotions under the demonstration project
will not need approval beyond the pay pool manager.
(5) Comment: One commenter stated that the Career Promotion
Eligibility clause needed to be expanded to include those employees who
may be eligible for an established career ladder promotion to a grade
encompassed in the next higher pay band during the first 12 months of
the demonstration project and as a result would advance into a higher
pay band.
Response: ONR agrees with the commenter's point and the Career
Promotion Eligibility clause in the FRN has been modified to also cover
previously established career ladders which would contain a career
promotion that would be into a higher pay band within the first 12
months of the demonstration project if recommended and the employee
meets all requirements. The FRN language has been edited to make this
clause clearer.
G. Formatting and Language
(1) Comment: Eight commenters made note of various places in the
FRN where language was inconsistently used or information was not
consistent; the term pay band should be used in places where the term
career level was used instead; score ranges and basic pay information
listed in the appendices was in some instances different than what was
listed in the main part of the document; in various places footnotes do
not show up in the correct place or are non-existent; in the normal pay
range graph in the appendix it should read mid-rail and not med-rail;
and Figure 4 is missing the word `review' for Administrative Support
Career Track pay band III.
Response: ONR agrees and has made these appropriate changes and
corrections to formatting and the text.
(2) Comment: Three commenters noted places where language was vague
and needed to be clarified; the language in section VI.A.4 was noted to
be unclear; the language in section IV.C.2 and 3 is unclear if there
will only be one pay pool manager; and section VI.A.3 the language was
noted as not being clear if this was a prorated portion.
Response: ONR agrees and in each of the sections listed above the
language has been edited for clarification.
[[Page 77385]]
3. Demonstration Project Notice Changes
The following is a summary of substantive changes and
clarifications which have been made to the project proposal.
A. Supplementary Information, Overview. Added MRMC and CERDEC to
the list of existing STRL demonstration projects from which ONR is
using flexibilities to build its demonstration project.
B. III.H.2. Internal Actions. Added a flexibility for Supervisory
Pay Adjustments and Supervisory Pay Differentials.
C. IV.A.1.d. Fair Labor Standards Act. Corrected Figure 4 by
including the word `review' for Pay Band III of the Administrative
Support career track.
D. IV.C.4. Annual CCS Appraisal Process. The current FRN states
that employees will be notified of the Overall Contribution Scores
(OCSs) which correspond to each employee's Normal Pay Range (NPR) at
the beginning of the appraisal period. This is corrected to state that
OCSs which correspond to each employee's NPR will be available after
pay adjustments have been processed, normally early-to-mid January.
E. IV.C.4 and 5. Annual CCS Appraisal Process and Exceptions.
Provision added that requires employees who serve less than 90 days
during an appraisal cycle to receive a presumptive rating of
acceptable.
F. IV.C.4. Annual CCS Appraisal Process. In order to ensure
compliance with state bar rules a provision was added that prohibits
the pay pool panel from changing CCS scores on ONR attorneys provided
by the ONR Counsel.
G. IV.C.4 and 5. Exceptions. Clarified the conditions for which
employees who would normally be exempted from the CCS process may still
be given a CCS score.
H. IV.C.8.b. Career Movements based on CCS. Corrected to state that
it is the ONR Executive Director and not the CNR which must approve
certain promotions.
I. IV.C.9. Grievance Process. Modified to clarify the process;
prevent the need for the ONR Executive Director from possibly deciding
the same grievance twice; inform employees that the contents of the CCS
Plans are nongrievable as were the contents of performance plans in the
traditional performance management system; and ensure compliance with
state bar rules.
J. VI.A.3. WGI Buy-in. Added clarifying language to state that
employees will be provided a prorated portion.
K. VI.A.4. Career Promotion Eligibility. Modified to state that an
exception will also be made for employees who become eligible for a
career ladder promotion during the first 12 months after conversion if
their promotion would cause them to move to a higher pay band. Examples
included providing greater clarity to the entire section.
L. VI.D. New Hires. Modified to add that mandatory demonstration
project training will be provided to new employees and new supervisors.
M. VI.D.3. New Hires. Provided clarification for Federal employees
who are on retained pay or who are receiving special salary rates and
are moving into the ONR demonstration project.
N. VI.E.1.Grade Determination. Clarified conversion-out rules when
there are more than two GS grade levels in a career field.
O. X. Automation. Clarified that DCPDS is not a legacy system, that
RD Writer will be used instead of COREDOC, and that the automated tool
RIFSS will not specifically be used.
P. Appendix A. Updated chart based on the addition of the
supervisory pay adjustment and differential flexibility, and added the
MRMC Career Promotion flexibility which had mistakenly been left out
previously.
Q. Appendix B. Added required waivers for; the Supervisory Pay
Adjustment and Differential Flexibility; the presumptive rating of
acceptable for employees who serve less than 90 days, and the Voluntary
Emeritus Program (which were erroneously left out previously).
R. Appendix D. Corrected 0335, Computer Clerk series, to be listed
only under the Administrative Support career track and moved the 0802
series to the Administrative Specialist and Professional Career Track.
S. Appendix E. Science & Engineering Professional contribution
elements were updated to provide additional clarification of the
discriminators.
T. Appendix F. Integrated pay chart was updated to reflect the
minimum basic pay for S&E pay band V as $119,554.
4. Access to Flexibilities of Other STRLs
Flexibilities published in this Federal Register shall be available
for use by the STRLs previously enumerated in section 9902(c)(2) of
title 5 United States Code, which are now designated 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 the
fulfilling of any collective bargaining obligations.
Dated: December 2, 2010.
Patricia Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems with the Current System
C. Waivers Required
D. Expected Benefits
E. Participating Organizations and Employees
F. Project Design
III. Accessions and Internal Placements
A. Hiring Authority
1. Background
2. Delegated Examining
B. Legal Authority
C. Determining Employee and Applicant Qualifications
D. Noncitizen Hiring
E. Expanded Detail Authority
F. Extended Probationary Period
G. Definitions
1. Basic Pay
2. Maintained Pay
3. Promotion
4. Reassignment
5. Change to Lower Pay Band
6. Pay Adjustment
7. Detail
8. Highest Previous Rate
9. Approving Manager
H. Pay Setting Determinations Outside the CCS
1. External New Hires
2. Internal Actions
a. Promotion.
b. Pay Adjustment (Voluntary Change to Lower Pay) or Change to
Lower Pay Band (except RIF).
c. Pay Adjustment (Involuntary Change to Lower Pay) or Change to
Lower Pay Band Due to Adverse or Performance-based Action.
d. Involuntary Change to Lower Pay Band or Reassignment to a
Career Track with a Lower Salary Range, Other than Adverse or
Performance-based.
e. RIF Action (including employees who are offered and accept a
vacancy at a lower pay band or in a different career track).
f. Upward Mobility or Other Formal Training Program Selection.
g. Return to Limited or Light Duty From a Disability as a Result
of Occupational Injury to a Position in a Lower Pay Band or to a
Career Track With Lower Basic Pay Potential Than Held Prior to the
Injury.
h. Restoration to Duty
i. Reassignment
j. Student Educational Employment Program
k. Hazard Pay or Pay for Duty Involving Physical Hardship
l. Supervisory Pay Adjustments
m. Supervisory Pay Differentials
I. Priority Placement Program (PPP)
J. Expanded Temporary Promotion
[[Page 77386]]
K. Voluntary Emeritus Program
IV. Sustainment
A. Position Classification
1. Career Tracks and Pay Bands
a. Target Pay Band
b. Occupational Series and Position Titling
c. Classification Standards
d. Fair Labor Standards Act (FLSA)
(1) Guidelines for FLSA Determinations
(2) Nonsupervisory and Leader Positions
(3) Supervisory Positions
2. Requirements Document (RD)
3. Delegation of Classification Authority
a. Delegated Authority
b. Position Classification Accountability
B. Integrated Pay Schedule
1. Annual Pay Action
2. Overtime Pay
3. Classification Appeals
4. Above GS-15 Positions
5. Distinguished Contributions Allowance (DCA)
a. Eligibility
b. Nomination
c. Reduction or Termination of a DCA
d. Lump-Sum DCA Payments
e. DCA Budget Allocation
f. Concurrent Monetary Payments
C. Contribution-Based Compensation System (CCS)
1. General
2. CCS Process
3. Pay Pool Annual Planning
a. Element Weights and Applicability
b. Supplemental Criteria
4. Annual CCS Appraisal Process (See Figure 7)
5. Exceptions
6. Normal Pay Range (NPR)--Basic Pay Versus Contribution
7. Compensation
a. General Increases
b. Merit Increases
c. Locality Increases
d. Contribution Awards
8. Career Movement Based on CCS
a. Advancements in Pay Band Which May Be Approved by the Pay
Pool Manager
b. Advancements in Pay Band Which Must Be Approved by the
Executive Director
c. Advancement To Pay Band V of the Science and Engineering
(S&E) Professional Career Track
d. Regression to Lower Pay Band (See Figure 8, ``Employee A'')
9. CCS Grievance Procedures
V. Separations
A. Performance-Based Reduction-in-Pay or Removal Actions
B. Reduction-in-Force (RIF) Procedures
1. RIF Authority
2. RIF Definitions
a. Competition in RIF
b. Competitive Area
c. Competitive Level
d. Service Computation Date (SCD)
(1) Federal SCD
(2) CCS Process Results
(3) Credit From Other Rating Systems
(4) RIF Cutoff Date
3. Displacement Rights
a. Displacement Process
b. Retention Standing
c. Vacant Positions
d. Ineligible for Displacement Rights
e. Change to Lower Pay Band Due to an Adverse or Performance-
Based Action
4. Notice Period
5. RIF Appeals
6. Separation Incentives
7. Severance Pay
8. Outplacement Assistance
VI. Demonstration Project Transition
A. Initial Conversion or Movement to the Demonstration Project
1. Placement Into Career Tracks and Pay Bands
3. WGI Buy-In
4. Career Promotion Eligibility
5. Conversion of Special Salary Rate Employees
6. Conversion of Employees on Temporary Promotions
7. Non-Competitive Movement Into the Demonstration Project
B. CCS Start-Up
C. Training
1. Types of Training
a. Employees
b. Supervisors and Managers
c. Support Personnel
D. New Hires Into the Demonstration Project
E. Conversion or Movement From Demonstration Project
1. Grade Determination
2. Pay Setting
3. Employees in Positions Classified Above GS-15
4. Determining Date of Last Equivalent Increase
F. Personnel Administration
G. Automation
H. Experimentation and Revision
VII. Demonstration Project Duration
VIII. Demonstration Project Evaluation Plan
A. Overview
B. Evaluation Model
IX. Demonstration Project Costs
A. Cost Discipline
B. Implementation Costs
X. Automation Support
A. General
B. Defense Civilian Personnel Data System (DCPDS)
C. Requirements Document Writer (RDWriter)
D. RIF Support System (RIFSS)
E. Contribution-Based Compensation System Data System (CCSDC)
Appendix A. Summary of Demonstration Project Features Adopted by ONR
Appendix B: Required Waivers to Laws and Regulations
Appendix C: Definitions of Career Tracks and Pay Bands
Appendix D: Table of Occupational Series Within Career Tracks
Appendix E: Classification and CCS Elements
Administrative Support
Appendix F: Computation of the IPS and the NPR
I. Executive Summary
This project adopts with some modifications the STRL personnel
management demonstration project designed by NRL and additional
flexibilities from the AMRDEC, MRMC, and CERDEC personnel management
demonstration projects. The modified design of the demonstration
project described herein was developed by ONR with the participation of
and review by the DON, the DoD, and incorporation of the knowledge and
design of other STRL demonstration projects.
The Office of Naval Research (ONR) coordinates, executes, and
promotes the science and technology programs of the United States Navy
and Marine Corps. ONR's directorates balance a robust science and
technology portfolio, allocating funds to meet the warfighter's
requirements, focusing efforts on all three major phases of development
funding: Basic research, applied research and advanced technology
development. ONR's six science and technology departments coordinate
and execute research in the areas of:
1. Expeditionary Maneuver Warfare and Combating Terrorism
2. Command, Control, Communications, Intelligence, Surveillance,
and Reconnaissance
3. Ocean Battlespace Sensing
4. Sea Warfare and Weapons
5. Warfighter Performance
6. Naval Air Warfare and Weapons
In order to sustain these unique capabilities, ONR must be able to
hire, retain, and continually motivate enthusiastic, innovative, and
highly-educated scientists and engineers, supported by skilled 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 ONR workforce through improvements in the
efficiency and effectiveness of the human resource system. The project
flexibilities will strive to achieve the best workforce for the ONR
mission, adjust the workforce for change, and improve organizational
efficiency. 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,
[[Page 77387]]
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 DUSD (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 Current System
The current Civil Service GS system has existed in essentially the
same form since the 1920's. Work is classified into one of fifteen
overlapping pay ranges that correspond with the fifteen grades. Basic
pay is set at one of those fifteen grades and the ten interim steps
within each grade. The Classification Act of 1949 rigidly defines types
of work by occupational series and grade, with very precise
qualifications for each job. This system does not quickly or easily
respond to new ways of designing work and changes in the work itself.
The performance management model that has existed since the passage
of the Civil Service Reform Act has come under extreme criticism.
Employees frequently report there is inadequate communication of
performance expectations and feedback on performance. There are
perceived inaccuracies in performance ratings with general agreement
that the ratings are inflated and often unevenly distributed by grade,
occupation and geographic location.
The need to change the current hiring system is essential as ONR
must be able to recruit and retain scientific, engineering, acquisition
support and other professionals and skilled technicians. ONR must be
able to compete with the private sector for the best talent and be able
to make job offers in a timely manner with the attendant bonuses and
incentives to attract high quality employees.
Finally, current limitations on training, retraining and otherwise
developing employees make it difficult to correct skill imbalances and
to prepare current employees for new lines of work to meet changing
missions and emerging technologies.
C. Waivers Required
ONR proposes changes in the following broad areas to address its
problems in human resources management: Accessions and internal
placements, sustainment, and separations. Appendix B lists the laws,
rules, and regulations requiring waivers to enable ONR to implement the
proposed systems. All personnel laws, rules, and regulations not waived
by this plan will remain in effect. Basic employee rights will be
safeguarded and Merit System Principles will be maintained.
D. Expected Benefits
The primary benefit expected from this demonstration project is
greater organizational effectiveness through increased employee
satisfaction. The long-standing Department of the Navy ``China Lake''
and NIST demonstration projects have produced impressive statistics on
increased job satisfaction and quality of employees versus that for the
Federal workforce in general. This project will demonstrate that a
human resource system tailored to the mission and needs of the ONR
workforce will facilitate:
(1) Sustainment of ONR's quality scientific and business management
workforces in today's competitive environment;
(2) Improved employee satisfaction with pay setting and adjustment,
recognition, and career advancement opportunities;
(3) Human Resources (HR) flexibilities needed to staff and shape a
quality workforce of the next 10-20 years;
(4) Increased retention of high-level contributors; and
(5) Simpler and more cost effective HR management processes.
An evaluation model was developed for the Director, Defense,
Research and Engineering (DDR&E) in conjunction with STRL service
representatives and the OPM. The model will measure the effectiveness
of this demonstration project, as modified in this plan, and will be
used to measure the results of specific personnel system changes.
E. Participating Organizations and Employees
ONR is comprised of the ONR Headquarters in Arlington, Virginia,
and ONR employees geographically dispersed at the locations shown in
Figure 1. It should be noted that some sites currently have fewer than
ten people and that the sites may change should ONR reorganize or
realign. Successor organizations will continue coverage in the
demonstration project.
The demonstration project will cover approximately 450 ONR civilian
employees under title 5, U.S.C. in the occupations listed in Appendix
D. The project plan does not cover members of the Senior Executive
Service (SES), Senior Level (SL), Scientific and Professional (ST),
expert and consultant employees (EH), or Administratively Determined
(AD) pay plans. However, SES, SL, and ST employees, after leaving
Federal government service, may participate in the Voluntary Emeritus
Program. There are no labor unions representing ONR employees.
[[Page 77388]]
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F. Project Design
In response to the initial authority granted by Congress to develop
a demonstration project, ONR chartered a design team to develop the
project plan. The team was led by a senior ONR manager from outside the
Human Resources Office (HRO) and was responsible for developing project
proposals. The team was composed of 20 employees of different grade
levels and in different occupations. There was a mix of managers,
supervisors, and non-supervisors from offices throughout ONR. The team
had the assistance of HR personnel from ONR and from NRL. It also
received information and advice from OPM, the Office of the DUSD (CPP),
and a number of organizations with on-going demonstration projects.
Information and suggestions were solicited from ONR employees and
managers through interviews, briefings, small-group meetings, and a
suggestion program established specifically for the design effort. This
plan was submitted to DUSD (CPP) in 2001. Work on this plan was
postponed pending the outcome of several Departmental HR initiatives
addressing new personnel systems.
Following enactment of Public Law 110-181, ONR undertook an effort
to review and resubmit the demonstration project plan. Upon extensive
review and discussion with internal and external stakeholders, ONR
leadership decided to adopt existing flexibilities according to
subsection 1107(c) of Public Law 110-181 and DoDI 1400.37.
Specifically, ONR proposes to adopt the NRL demonstration project plus
additional flexibilities from the AMRDEC and MRMC demonstration
projects. Appendix A summarizes the modifications proposed for each of
the adopted project flexibilities and administrative procedures.
Modifications to existing flexibilities are made when necessary to
address ONR's specific organizational, workforce, and approval needs;
technical modifications to conform to changes in the law and governing
Office of Personnel Management (OPM) regulations, which are not being
waived, that were effected after the publication of the NRL personnel
demonstration project plan. Further changes to the project plan may be
made in response to comments received during the 30-day comment period
following publication of this notice.
III. Accessions and Internal Placements
A. Hiring Authority
1. Background
Private industry and academia are the principal recruiting sources
for scientists and engineers at ONR. It is extremely difficult to make
timely offers of employment to hard-to-find scientists and engineers.
Even when a candidate is identified, he or she often finds another job
opportunity before the lengthy recruitment process can be completed.
2. Delegated Examining
a. Competitive service positions within the ONR Demonstration
Project will be filled through Merit Staffing or under Delegated
Examining.
b. The ``Rule of Three'' will be eliminated. When there are no more
than 15 qualified applicants and no preference eligibles, all eligible
applicants are immediately referred to the selecting official without
rating and ranking. Rating and ranking will be required only when the
number of qualified candidates exceeds 15 or there is a mix of
preference and nonpreference applicants. Statutes and regulations
covering veterans'
[[Page 77389]]
preference will be observed in the selection process and when rating
and ranking are required. If the candidates are rated and ranked, a
random number selection method using the application control number
will be used to determine which applicants will be referred when scores
are tied after the rating process. Veterans will be referred ahead of
non-veterans with the same score.
B. Legal Authority
For actions taken under the auspices of the ONR Demonstration
Project, the legal authority, Public Law 103-337, will be used. For all
other actions, ONR will continue to use the nature of action codes and
legal authority codes prescribed by OPM, DoD, or DON.
C. Determining Employee and Applicant Qualifications
Figure 2 displays the minimum General Schedule (GS) qualifications
requirements for each career path and pay band. Special DON or DoD
requirements not covered by the OPM Qualification Standards Operating
Manual for GS Positions, such as Defense Acquisition Workforce
Improvement Act (DAWIA) qualification requirements for acquisition
positions, physical performance requirements for sea duty, work on
board aircraft, etc., must be met.
[GRAPHIC] [TIFF OMITTED] TN10DE10.096
D. Noncitizen Hiring
Where Executive Orders or other regulations limit hiring
noncitizens, ONR will have the authority to approve the hiring of
noncitizens into competitive service positions when qualified U.S.
citizens are not available. Under the demonstration project, as with
the current system, a noncitizen may be appointed only if it has been
determined there are no qualified U.S. citizens. In order to make this
determination, the position will be advertised extensively throughout
the nation using paid advertisements in
[[Page 77390]]
major newspapers or scientific journals, etc., as well as the
``normal'' recruiting methods. If a noncitizen is the only qualified
candidate for the position, the candidate may be appointed. The
selection is subject to approval by the Department Head or Director of
the hiring organization. The demonstration project constitutes a
delegated examining agreement from OPM for the purposes of 5 CFR
213.3102(bb).
E. Expanded Detail Authority
Under the demonstration project, ONR's approving manager would have
the authority:
(1) To effect details up to one year to demonstration project
positions without the current 120-day renewal requirement; and
(2) To effect details to a higher level position in the
demonstration project up to one year within a 24-month period without
competition.
Details beyond the one-year require the approval of the Chief of
Naval Research or designee and are not subject to the 120-day renewal
requirement.
F. Extended Probationary Period
All current laws and regulations for the current probationary
period are retained except that nonstatus candidates hired under the
demonstration project in occupations where the nature of the work
requires the manager to have more than one year to assess the
employee's job performance will serve a three-year probationary period.
Employees with veterans' preference will maintain their rights under
current law and regulation.
G. Definitions
1. Basic Pay
The total amount of pay received at the rate fixed through CCS
adjustment for the position held by an employee including any merit
increase but before any deductions and exclusive of additional pay of
any other kind.
2. Maintained Pay
An employee may be entitled to maintain his or her rate of basic
pay if that rate exceeds the maximum rate of basic pay for his or her
pay band as a result of certain personnel actions (as described in this
plan). An employee's initial maintained pay rate is equal to the lesser
of (1) the basic pay held by the employee at the time an action is
taken which entitles the employee to maintain his or her pay or (2) 150
percent of the maximum rate of basic pay of the pay band to which
assigned. The employee is entitled to maintained pay for 2 years or
until the employee's basic pay is equal to or more than the employee's
maintained pay, whichever occurs first. Exceptions to the 2-year limit
include employees on grade and pay retention ``grandfathered'' in upon
initial conversion into the demonstration project, former special rate
employees receiving maintained pay as a result of conversion into the
project, and employees placed through the priority placement programs.
Employees will receive half of the across-the-board GS percentage
increase in basic pay and the full locality pay increase while on
maintained pay. Upon termination of maintained pay, the employee's
basic pay will be adjusted according to the CCS appraisal process. If
the employee's basic pay exceeds the maximum basic pay of his or her
pay band upon expiration of the 2-year period, the employee's pay will
not be reduced; the employee will be in the overcompensated range of
basic pay category for CCS pay increase purposes, see Figure 9.
Maintained pay shall cease to apply to an employee who: (1) Has a
break in service of 1 workday or more; or (2) is demoted for personal
cause or at the employee's request. The employee's maintained rate of
pay is basic pay for purposes of locality pay (locality pay is basic
pay for purposes of retirement, life insurance, premium pay, severance
pay, advances in pay, workers' compensation, and lump-sum payments for
annual leave but not for computing promotion increases). Employees
promoted while on maintained pay may have their basic pay (excluding
locality pay) set up to 20 percent greater than the maximum basic pay
for their current pay band or retain their ``maintained pay,''
whichever is greater.
3. Promotion
The movement of an employee to a higher pay band within the same
career track or to a different career track and pay band in which the
new pay band has a higher maximum basic salary rate than the pay band
from which the employee is leaving.
4. Reassignment
The movement of an employee from one position to another position
within the same pay band in the same career track or to a position in
another career track and pay band in which the new pay band has the
same maximum basic salary rate as the pay band from which the employee
is leaving.
5. Change to Lower Pay Band
The movement of an employee to a lower pay band within the same
career track or to a different career track and pay band in which the
new pay band has a lower maximum basic pay range than the pay band from
which the employee is leaving.
6. Pay Adjustment
Any increase or decrease in an employee's rate of basic pay where
there is no change in the employee's position. Termination of
maintained pay is also a pay adjustment.
7. Detail
The temporary assignment of an employee to a different
demonstration project position for a specified period when the employee
is expected to return to his or her regular duties at the end of the
assignment. (An employee who is on detail is considered for pay and
strength purposes to be permanently occupying his or her regular
position.)
8. Highest Previous Rate
ONR will establish maximum payable rate rules that parallel the
rules in 5 CFR 531.202 and 531.203(c) and (d).
9. Approving Manager
Managers at the directorate, division head, division
superintendent, or directorate-level staff offices who have budget
allocation/execution; position management; position classification;
recruitment; and staffing authorities for their organization.
H. Pay Setting Determinations Outside the CCS
1. External New Hires
a. This includes reinstatements. Initial basic pay for new
appointees into the demonstration project may be set at any point
within the basic pay range for the career track, occupation, and pay
band to which appointed that is consistent with the special
qualifications of the individual and the unique requirements of the
position. These special qualifications may be consideration of
education, training, experience, scarcity of qualified applicants,
labor market considerations, programmatic urgency, or any combination
thereof which is pertinent to the position to which appointed. Highest
previous rate may be used to set the pay of new appointees into the
demonstration project. (The approving manager authorizes the basic
pay.)
b. Transfers from within DoD and other Federal agencies will have
their pay set using pay setting policy for internal actions based on
the type of pay action.
c. A recruitment or relocation bonus may be paid using the same
provisions available for GS employees under 5 U.S.C. 5753. Employees
placed through
[[Page 77391]]
the DoD Priority Placement Program (PPP), the DON Reemployment Priority
List (RPL), or the Federal Interagency Career Transition Assistance
Plan are entitled to the last earned rate if they have been separated.
2. Internal Actions
These actions cover employees within the demonstration project,
including demonstration project employees who apply and are selected
for a position within the project.
a. Promotion.
When an employee is promoted, the basic pay after promotion may be
up to 20 percent greater than the employee's current basic pay.
However, if the minimum rate of the new pay band is more than 20
percent greater than the employee's current basic pay, then the minimum
rate of the new pay band is the new basic pay. The employee's basic pay
may not exceed the basic pay range of the new pay band. Highest
previous rate may be applied, if appropriate. (The approving manager
authorizes the basic pay.) Note: Most target pay band promotions will
be accomplished through the CCS appraisal and pay adjustment process
(see section IV.C.8).
b. Pay Adjustment (Voluntary Change to Lower Pay) or Change to
Lower Pay Band (except RIF).
When an employee accepts a voluntary change to lower pay or lower
pay band, basic pay may be set at any point within the pay band to
which appointed, except that the new basic pay will not exceed the
employee's current basic pay or the maximum basic pay of the pay band
to which assigned, whichever is lower. Highest previous rate may be
applied, if appropriate. (The approving manager authorizes the basic
pay.)
(1) Examples of Voluntary Change to a Lower Pay Band. An employee
in an Administrative Specialist and Professional Career Track, Pay Band
III, position may decide he or she would prefer a Pay Band II position
in the Administrative Support Career Track because it offers a
different work schedule or duty station. An employee in Pay Band IV of
the Administrative Specialist and Professional Career Track who has a
family member with a serious medical problem and wants to be relieved
of supervisory responsibilities may request a change to Pay Band III.
(2) Example of Pay Adjustment (Voluntary Change to Lower Pay) or
change to a Lower Pay Band. An employee may accept a change to lower
pay or to a lower pay band through a settlement agreement. A Research
Physicist, who is in Pay Band III and is being paid near the top of Pay
Band III, is rated unacceptable in the contribution element Research
and Development (R&D) Business Management. In settlement of a proposal
to remove this employee for unacceptable performance, an agreement is
reached which reduces the employee's pay to a rate near the beginning
of Pay Band III.
c. Pay Adjustment (Involuntary Change to Lower Pay) or Change to
Lower Pay Band Due to Adverse or Performance-based Action.
When an employee is changed to a lower pay band, or receives a
change to lower pay due to an adverse or performance-based action, the
employee's basic pay will be reduced by at least 6 percent, but will be
set at a rate within the rate range for the pay band to which assigned.
(The approving manager authorizes the basic pay.) Such employees will
be afforded appeal rights as provided by 5 U.S.C. 4303 or 7512.
d. Involuntary Change to Lower Pay Band or Reassignment to a Career
Track with a Lower Salary Range, Other than Adverse or Performance-
based.
If the change is not a result of an adverse or performance-based
action, the basic pay will be preserved to the extent possible within
the basic pay range of the new pay band. If the pay cannot be set
within the rate range of the new pay band, it will be set at the
maximum rate of the new pay band and the employee's pay will be
reduced. If the change is a result of a position reclassification
resulting in the employee being assigned to a lower pay band or
reassigned to a different career track with a lower maximum basic
salary range, the employee is entitled to maintained pay if the
employee's current salary exceeds the maximum rate for the new band.
e. RIF Action (including employees who are offered and accept a
vacancy at a lower pay band or in a different career track).
The employee is entitled to maintained pay, if the employee's
current salary exceeds the maximum rate for the new band.
f. Upward Mobility or Other Formal Training Program Selection.
The employee is entitled to maintained pay, if the employee's
current salary exceeds the maximum rate for the new band.
g. Return to Limited or Light Duty from a Disability as a Result of
Occupational Injury to a Position in a Lower Pay Band or to a Career
Track with Lower Basic Pay Potential than Held Prior to the Injury.
The employee is entitled indefinitely to the basic pay held prior
to the injury and will receive full general and locality pay increases.
If upon reemployment, an employee was not given the higher basic pay
(basic pay received at the time of the injury), any retirement annuity
or severance pay computation would be based on his or her lower basic
pay (salary based on placement in a lower pay band). Even though the
Department of Labor (DOL) would make up the difference between the
lower basic pay and the higher basic pay earned at the time of injury,
the DOL portion is not considered in the retirement or severance pay
computation.
h. Restoration to Duty.
Employees returning from the uniformed services following an
absence of more than 30 days must be restored as soon as possible after
making application, but not later than 30 days after receipt of
application. If the employee's uniformed service was for less than 91
days the employee will be placed in the position that he or she would
have attained if continuously employed. If not qualified for this
position, employee will be placed in the position he or she left. For
service of 91 days or more, the employee may also be placed in a
position of like seniority, status, and pay. In the case of an employee
with a disability incurred in or aggravated during uniformed service,
and after reasonable efforts to accommodate the disability is entitled
to be placed in another position for which qualified that will provide
the employee with the same seniority, status, and pay, or the nearest
approximation.
i. Reassignment.
The basic pay normally remains the same. Highest previous rate may
be applied, if appropriate. (The approving manager authorizes the basic
pay.)
j. Student Educational Employment Program.
The Student Educational Employment Program consists of two
components: the Student Temporary Employment Program and the Student
Career Experience Program. Initial basic pay for students in either of
these programs may be set at any point within the basic pay range for
the career track, occupation, and pay band to which appointed. Basic
pay may be increased upon return to duty (RTD) or conversion to
temporary appointment, in consideration of the student's additional
education and experience at the time of the action. Students who work
under a parallel work study program may have their basic pay increased
in consideration of additional education and/or experience. Basic pay
for students may be increased based on their CCS appraisal. (The
approving manager authorizes the basic pay.)
[[Page 77392]]
k. Hazard Pay or Pay for Duty Involving Physical Hardship.
Employees under the demonstration project will be paid hazardous
duty pay under the provisions of 5 CFR part 550, subpart I.
l. Supervisory Pay Adjustments.
(1) Supervisory pay adjustments may be approved by the ONR
Executive Director based on the recommendation of the Talent Management
Board to compensate employees with supervisory responsibilities. Only
employees in supervisory positions as defined by the OPM GS Supervisory
Guide may be considered for the pay adjustment. These pay adjustments
are funded separately from performance pay pools. These pay adjustments
are increases to basic pay, ranging up to ten percent of that pay rate
for supervisors. Pay adjustments are subject to the constraint that the
adjustment may not cause the employee's basic pay to exceed the pay
band maximum basic pay. Criteria to be considered in determining the
basic pay increase percentage include:
i. Needs of the organization to attract, retain, and motivate high
quality supervisors;
ii. Budgetary constraints;
iii. Years and quality of related experience;
iv. Relevant training;
v. Performance appraisals and experience as a supervisor;
vi. Organizational level of position; and
vii. Impact on the organization.
(2) The pay adjustment will not apply to employees in Pay Band V of
the S&E Professional Career Track.
(3) After the date of conversion into the demonstration project, a
pay adjustment may be considered under the following conditions:
i. New hires into supervisory positions will have their initial
rate of basic pay set at the supervisor's discretion within the pay
range of the applicable pay band. This rate of pay may include a pay
adjustment determined by using the ranges and criteria outlined above.
ii. An employee selected for a supervisory position that is within
the employee's current pay band may also be considered for a basic pay
adjustment. If a supervisor is already authorized a basic pay
adjustment and is subsequently selected for another supervisor position
within the same pay band, then the basic pay adjustment will be re-
determined.
iii. Existing supervisors will be converted at their existing rate
of basic pay and may be eligible for a basic pay adjustment upon review
of the Talent Management Board following the conversion.
(4) The supervisor pay adjustment will be reviewed annually, with
possible increases or decreases based on the appraisal scores for the
performance elements Cooperation & Supervision or Supervision &
Resources Management. The initial dollar amount of a basic 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 position
for unacceptable performance or conduct, the basic pay adjustment will
be removed under adverse action procedures. However, if an employee is
involuntarily removed from a non-probationary supervisory 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.
m. Supervisory Pay Differentials.
Supervisory pay differentials may be used by the ONR Executive
Director to provide an incentive and to reward supervisors as defined
by the OPM GS Supervisory 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 basic pay for supervisors. 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 basic pay. Criteria to be
considered in determining the amount of the pay differential are the
same as those identified for Supervisory Pay Adjustments. The pay
differential will not apply to employees in Pay Band V of the S&E
Professional Career Track.
The pay differential may be considered, either during conversion
into or after initiation of the demonstration project. The differential
must be terminated if the employee is removed from a supervisory
position, regardless of cause.
After initiation of the demonstration project, all personnel
actions involving a supervisory differential will require a statement
signed by the employee acknowledging that the differential may be
terminated or reduced at the discretion of the ONR Executive Director.
The termination or reduction of the differential is not an adverse
action and is not subject to appeal.
I. Priority Placement Program (PPP)
Current PPP procedures apply to new hires and internal actions.
J. Expanded Temporary Promotion
Current regulations require that temporary promotions for more than
120 days to a higher level position than previously held must be made
competitively. Under the demonstration project, ONR would be able to
effect temporary promotions of not more than one year within a 24-month
period without competition to positions within the demonstration
project.
K. Voluntary Emeritus Program
The ONR Voluntary Emeritus Program is similar to the Voluntary
Emeritus Program presented in the AMRDEC demonstration project FRN,
section III.D.5., page 34890. Under the ONR program, the CNR will have
the authority to offer retired or separated individuals voluntary
assignments at ONR. This authority will include individuals who have
retired or separated from Federal service. Voluntary Emeritus Program
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 Program will ensure continued quality research while reducing
the overall salary line by allowing higher paid individuals to accept
retirement incentives with the opportunity to retain a presence in the
scientific community. The program will be of most benefit during
manpower reductions as senior employees could accept retirement and
return to provide valuable on-the-job training or mentoring to less
experienced employees. Voluntary service will not be used to replace
any employee or interfere with career opportunities of employees.
To be accepted into the emeritus program, a volunteer must be
recommended by ONR managers to the CNR or designee. Everyone who
applies is not entitled to a voluntary assignment. The approving
official must clearly document the decision process for each applicant
(whether accepted or rejected) and retain the documentation throughout
the assignment. Documentation of rejections will be maintained for two
years.
To ensure success and encourage participation, the volunteer's
Federal retirement pay (whether military or
[[Page 77393]]
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.
Volunteers will not be permitted to monitor contracts on behalf of
the government or to participate on any contracts or solicitations
where a conflict of interest exists. The same rules that currently
apply to source selection members will apply to volunteers.
An agreement will be established between the volunteer, the CNR or
designee and the HRO Director. The agreement will be reviewed by the
local Legal Office for ethics determinations under the Joint Ethics
Regulation. The agreement must be finalized before the assumption of
duties and shall include:
(1) A statement that the voluntary assignment does not constitute
an appointment in the civil service and is without compensation, and
any and all claims against the Government (because of the voluntary
assignment) are waived by the volunteer;
(2) A statement that the volunteer will be considered a federal
employee for the purpose of injury compensation;
(3) Volunteer's work schedule;
(4) Length of agreement (defined by length of project or time
defined by weeks, months, or years);
(5) Support provided by the ONR (travel, administrative, office
space, supplies);
(6) A one page Statement of Duties and Experience;
(7) A provision that states no additional time will be added to a
volunteer's service credit for such purposes as retirement, severance
pay, and leave as a result of being a member of the Voluntary Emeritus
Program;
(8) A provision allowing either party to void the agreement with 10
working days written notice; and
(9) The level of security access required (any security clearance
required by the assignment will be managed by the ONR while the
volunteer is a member of the Voluntary Emeritus Program).
IV. Sustainment
A. Position Classification
The position classification changes are intended to streamline and
simplify the process of identifying and categorizing the work done at
ONR. ONR will establish an Integrated Pay Schedule (IPS) for all
demonstration project positions in covered occupations. The IPS will
replace the current GS and extend the pay schedule equivalent to the
basic pay range of the Government's Senior Level Pay System to
accommodate positions classified above the GS-15 level under a proposed
new STRL demonstration project initiative being developed by DoD.
1. Career Tracks and Pay Bands
Within the IPS, occupations with similar characteristics will be
grouped together into three career tracks. Each career track consists
of a number of pay bands, representing the phases of career progression
that are typical for the respective career track. The pay bands within
each career track are shown in Figure 3, along with their GS
equivalents. The equivalents are based on the levels of responsibility
as defined in 5 U.S.C. 5104 and not on current basic pay schedules.
Appendix C provides definitions for each of the career tracks and the
pay bands within them. The career tracks and pay bands were developed
based upon administrative, organizational, and position management
considerations at ONR. They are designed to enhance pay equity and
enable a more seamless career progression to the target pay band for an
individual position or category of positions. This combination of
career tracks and pay bands allows for competitive recruitment of
quality candidates at differing rates of compensation within the
appropriate career track, occupation, and pay band. It will also
facilitate movement and placement based upon contribution, in
conjunction with the CCS described in paragraph IV.C. Other benefits of
this arrangement include a dual career track for S&E employees and
greater competitiveness with academia and private industry for
recruitment. Appendix D identifies the occupational series currently
within each of the three career tracks.
[GRAPHIC] [TIFF OMITTED] TN10DE10.097
a. Target Pay Band.
Each position will have a designated target pay band under the
demonstration project. This target pay band will be identified as the
pay band to which an incumbent may be advanced without further
competition within a career track. These target pay bands will be based
upon present full performance levels. Target pay bands may vary based
upon occupation or career track. Employees' basic pay will
[[Page 77394]]
be capped at the target pay band until other appropriate conditions
(e.g., competition, position management approval, increase in or
acquisition of higher level duties, and approval of an accretion of
duties promotion) have been met, and the employee has been promoted
into the next higher level.
b. Occupational Series and Position Titling.
Presently, ONR positions are identified by occupational groups and
series of classes in accordance with OPM position classification
standards. Under the demonstration project, ONR will continue to use
occupational series designators consistent with those currently
authorized by OPM to identify positions. This will facilitate related
personnel management requirements, such as movement into and out of the
demonstration project. Other occupational series may be added or
deleted as needed to support the demonstration project.
Interdisciplinary positions will be accommodated within the system
based upon the qualifications of the individual hired.
Titling practices consistent with those established by OPM
classification standards will be used to determine the official title.
Such practice will facilitate other personnel management requirements,
such as the following: Movement into and out of the demonstration
project, reduction in force, external reporting requirements, and
recruitment. CCS pay band descriptors and Requirements Document (RD)
(see paragraph IV.A.2) information will be used for specific career
track, pay band, and titling determinations.
c. Classification Standards.
Under the proposed demonstration project, the number of
classification standards would be reduced to three (see Figure 3.) Each
standard would align with one of the three career tracks and would
cover all positions within that career track. Each career track has two
or three elements that are considered in both classifying a position
and in judging an individual's contributions for pay setting purposes.
Each element has generic descriptors for every pay band. These
descriptors explain the type of work, degree of responsibility, and
scope of contributions that need to be ultimately accomplished to reach
the highest basic pay potential within each pay band. (See Appendix E.)
To classify a position, a manager would select the pay band which is
most indicative overall of the type of duties to be performed and the
contributions needed. For example: A supervisor needs a secretarial
position for a branch. In reading the elements and descriptors for the
Administrative Support Career Track, the supervisor determines that the
Pay Band II descriptors illustrate the type of work and contributions
needed. Therefore, the position would be classified as a Secretary, Pay
Band II.
d. Fair Labor Standards Act (FLSA).
Demonstration project positions will be covered under the FLSA and
5 CFR part 551. Determination of their status (exempt or nonexempt)
will be made based on the criteria contained in 5 CFR part 551. The
status of each new position under the demonstration project will be
determined using computer assisted analysis as part of an automated
process for preparing the RD. Those positions for which the computer is
unable to make the final FLSA determination will be ``flagged'' for
referral to a human resources specialist for determination.
(1) Guidelines for FLSA Determinations.
i. Supervisory Information: Provided through an automated system in
a checklist format; results of this checklist have an impact on FLSA
determination.
ii. FLSA Information: Provided through an automated system in a
checklist format; results of this checklist in conjunction with the
supervisory information provide a basis for the FLSA determination.
iii. If required, the section entitled ``Purpose of Position'' will
be used to assist in FLSA determination.
iv. RD's requiring additional review before being finalized will be
forwarded to a human resources specialist to review the FLSA
determination.
(2) Nonsupervisory and Leader Positions.
Figure 4 shows the exempt or nonexempt status applicable to
nonsupervisory and leader positions in the indicated career track and
pay band. In those cases where ``Review'' is indicated, the FLSA status
must be determined based on the specific duties and responsibilities of
the subject position.
[GRAPHIC] [TIFF OMITTED] TN10DE10.098
[[Page 77395]]
(3) Supervisory Positions.
FLSA determination for supervisory positions must be made based on
the duties and responsibilities of the particular position involved. As
a rule, if a position requires supervision of employees who are exempt
under FLSA, the supervisory position is likely to be exempt also.
2. Requirements Document (RD)
An RD will replace the Optional Form 8 and position description
used under the current classification system. The RD will be prepared
by managers using a menu-driven, automated system. The automated system
will enable managers to classify and establish many positions without
intervention by a human resources specialist. The abbreviated RD will
combine the position information, staffing requirements, and
contribution expectations into a 1- or 2-page document.
3. Delegation of Classification Authority
Classification authority will be delegated to managers as a means
of increasing managerial effectiveness and expediting the
classification function. This will be accomplished as follows:
a. Delegated Authority.
i. The Chief of Naval Research will delegate classification
authority to the Human Resources Office (HRO) Director. The HRO
Director may further delegate authority to Department Heads and
Directors of the immediate organization of the position being
classified.
ii. The classification approval must be at least one level above
the first-level supervisor of the position.
iii. First-line supervisors at any level will provide
classification recommendations.
iv. HRO support will be available for guidance and recommendations
concerning the classification process. (Any dispute over the proper
classification between a manager and the HRO will be resolved by the
CNR or designee.)
b. Position Classification Accountability.
Those to whom authority is delegated are accountable to the CNR.
The CNR is accountable to the CO. Those with delegated authority are
expected to comply with demonstration project guidelines on
classification and position management, observe the principle of equal
pay for equal work, and ensure that RD's are current. First-line
supervisors will develop positions using the automated system. All
positions must be approved through the proper chain of command.
B. Integrated Pay Schedule
Under the demonstration project, an IPS will be established which
will cover all demonstration project positions at ONR. This IPS, which
does not include locality pay, will initially extend from the basic pay
for GS-1, step 1 to the basic pay for GS-15, step 10. The adjusted
basic pay cap, which does include locality pay, is Executive Level IV,
currently $155,500. The salary range for the S&E pay band V pay band is
expected to be established under the new STRL demonstration project
initiative being developed for positions classified above GS-15.
1. Annual Pay Action
ONR will eliminate separate pay actions for within-grade increases,
general and locality pay increases, performance awards, quality step
increases, and most career promotions, and replace them with a single
annual pay action (including either permanent or bonus pay or both)
linked to the CCS. This will eliminate the paperwork and processing
associated with multiple pay actions which average three per employee
per year.
2. Overtime Pay
Overtime will be paid in accordance with 5 CFR part 550, subpart A.
All nonexempt employees will be paid overtime based upon their ``hourly
regular rate of pay,'' as defined in existing regulation (5 CFR part
551).
3. Classification Appeals
An employee may appeal the occupational series, title, career
track, or pay band of his or 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 supervisory response, he or she may then appeal to
the DoD appellate level. If an employee is not satisfied with the DoD
response, he or she may then appeal to the OPM only after DoD has
rendered a decision under the provisions of this demonstration project.
Since OPM does not accept classification appeals on positions which
exceed the equivalent of a GS-15 level, appeal decisions involving Pay
Band V for Advanced Research Scientists and Engineers (ARSAE) will be
rendered by DoD and will be final. Appellate decisions from OPM are
final and binding on all administrative, certifying, payroll,
disbursing, and accounting officials of the Government. Time periods
for case processing under 5 CFR subpart F, sections 511.603, 511.604,
and 511.605 apply.
An employee may not appeal the accuracy of the RD, the
demonstration project classification criteria, or the pay-setting
criteria; the propriety of a basic pay schedule; the assignment of
occupational series to the occupational family; or matters grievable
under an administrative or negotiated grievance procedure or an
alternative dispute resolution procedure.
The evaluation of classification appeals under this demonstration
project is based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the HRO
and will include copies of appropriate demonstration project criteria.
4. Above GS-15 Positions
The pay banding plan for the Scientific and Engineering
occupational family includes a pay band V to provide the ability to
accommodate positions with duties and responsibilities that exceed the
General Schedule 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
[[Page 77396]]
processes will be based on the final outcome of the DoD evaluation.
5. Distinguished Contributions Allowance (DCA)
The DCA is a temporary monetary allowance up to 25 percent of basic
pay (which, when added to an employee's rate of basic pay, may not
exceed the rate of basic pay for Executive Level IV) paid on either a
bi-weekly basis (concurrent with normal pay days) or as a lump sum
following completion of a designated contribution period(s), or
combination of these, at the discretion of ONR. It is not basic pay for
any purpose, i.e., retirement, life insurance, severance pay,
promotion, or any other payment or benefit calculated as a percentage
of basic pay. The DCA will be available to certain employees at the top
of their target pay bands, whose present contributions are worthy of
scores found at a higher pay band, whose level of contribution is
expected to continue at the higher pay band for at least 1 year, and
current market conditions require additional compensation.
Assignment of the DCA rather than a change to a higher pay band
will generally be appropriate for such employees under the following
circumstances: Employees have reached the top of their target pay bands
and (1) when it is not certain that the higher level contributions will
continue indefinitely (e.g., a special project expected to be of 1- up
to 5-year duration), or (2) when no further promotion or compensation
opportunities are available or externally imposed limits (such as high-
grade restrictions) make changes to higher pay bands unavailable, and
in either situation, current market conditions compensate similar
contributions at a greater rate in like positions in private industry
and academia and there is a history of significant recruitment and
retention difficulties associated with such positions.
a. Eligibility.
(1) Employees in Pay Bands III and IV of the S&E Professional
Career Track and those in Pay Bands III, IV, and V of the
Administrative Specialist and Professional Career Track are eligible
for the DCA if they have reached the top CCS score for their target pay
band with recommendations for a higher Overall Contribution Score (OCS)
for their contributions; they have reached the maximum rate of basic
pay available for their target pay band; there are externally imposed
limits to higher pay bands or the higher level contributions are not
expected to last indefinitely; and market conditions require greater
compensation for these contributions.
(2) Employees may receive a DCA for up to three years. The DCA
authorization will be reviewed and reauthorized as necessary, but at
least annually at the time of the CCS appraisal through nomination by
the pay pool manager and approval by the CNR. Employees in the S&E
Professional Career Track may receive an extension of up to two
additional years (for a total of five years). The DCA extension
authorization will be reviewed and reauthorized as necessary, but at
least on an annual basis at the time of the CCS appraisal through
nomination by the pay pool manager and approval by the CNR.
(3) Monetary payment may be up to 25 percent of basic pay.
(4) Nominees would be required to sign a memorandum of
understanding or a statement indicating they understand that the DCA is
a temporary allowance; it is not a part of basic pay for any purpose;
it would be subject to review at any time, but at least on an annual
basis, and the reduction or termination of the DCA is not appealable or
grievable.
b. Nomination.
In connection with the annual CCS appraisal process, pay pool
managers may nominate eligible employees who meet the criteria for the
DCA. Packages containing the recommended amount and method of payment
of the DCA and a justification for the allowance will be forwarded
through the supervisory chain to the CNR. Details regarding this
process will be addressed in standard operating procedures. These
details will include time frames for nomination and consideration,
payout scheme, justification content and format, budget authority,
guidelines for selecting employees for the allowance and for
determining the appropriate amount, and documentation required by the
employee acknowledging he or she understands the criteria and temporary
nature of the DCA.
c. Reduction or Termination of a DCA.
(1) A DCA may be reduced or terminated at any time the ONR deems
appropriate (e.g., when the special project upon which the DCA was
based ends; if performance or contributions decrease significantly; or
if labor market conditions change, etc.). The reduction or termination
of a DCA is not appealable or grievable.
(2) If an employee voluntarily separates from ONR before the
expiration of the DCA, an employee may be denied DCA payment. Authority
to establish conditions and/or penalties will be spelled out in the
written authorization of an individual's DCA.
d. Lump-Sum DCA Payments.
(1) When ONR chooses to pay part or all of an employee's DCA as a
lump sum payable at the end of a designated period, the employee will
accrue entitlement to a growing lump-sum balance each pay period. The
percentage rate established for the lump-sum DCA will be multiplied by
the employee's biweekly amount of basic pay to determine the lump sum
accrual for any pay period. This lump-sum percentage rate is included
in applying the 25-percent limitation.
(2) If an employee covered under a lump-sum DCA authorization
separates, or the DCA is terminated (see paragraph c), before the end
of that designated period, the employee may be entitled to payment of
the accrued and unpaid balance under the conditions established by ONR.
ONR may establish conditions governing lump-sum payments (including
penalties in cases such as voluntary separation or separation for
personal cause) in general plan policies or in the individual
employee's DCA authorization.
e. DCA Budget Allocation.
The CNR may establish a total DCA budget allocation that is never
greater than 10 percent of the basic salaries of the employees
currently at the cap in the S&E Professional Career Track, Pay Bands
III and IV, and the Administrative Specialist and Professional Career
Track, Pay Bands III, IV, and V.
f. Concurrent Monetary Payments.
Employees eligible for a DCA may be authorized to receive a DCA and
a retention allowance at the same time, up to a combined total of 25
percent of basic pay. A merit increase which raises an employee's pay
to the top rate for his or her target pay band (thus making the
employee eligible for the DCA) may be granted concurrent with the DCA.
Receipt of the DCA does not preclude an employee from being granted any
award (including a contribution award) for which he or she is otherwise
eligible.
C. Contribution-Based Compensation System (CCS)
1. General
The purpose of the CCS is to provide an effective means for
evaluating and compensating the ONR workforce. It provides management,
at the lowest practical level, the authority, control, and flexibility
needed to develop a highly competent, motivated, and productive
workforce. CCS will promote increased fairness and consistency in the
appraisal process, facilitate natural career progression for employees,
and
[[Page 77397]]
provide an understandable basis for career progression by linking
contribution to basic pay determinations.
CCS combines performance appraisal and job classification into one
annual process. At the end of each CCS appraisal period, basic pay
adjustment decisions are made based on each employee's actual
contribution to the organization's mission during the period. A
separate function of the process includes comparison of performance in
contribution elements to acceptable standards to identify unacceptable
performance that may warrant corrective action in accordance with 5 CFR
part 432. Supervisory officials determine scores to reflect each
employee's contribution, considering both how well and at what level
the employee is performing. Often the two considerations are
inseparable. For example, an employee whose written documents need to
be returned for rework more often than those of his or her peers also
likely requires a closer level of oversight, an important factor when
considering level of pay.
The performance planning and rating portions of the demonstration
project's appraisal process constitute a performance appraisal program
which complies with 5 CFR part 430 and the DoD Performance Management
System, except where waivers have been approved. Performance-related
actions initiated prior to implementation of the demonstration project
(under DON performance management regulations) shall continue to be
processed in accordance with the provisions of the appropriate system.
2. CCS Process
CCS measures employee contributions by breaking down the jobs in
each career track using a common set of ``elements.'' The elements for
each career track shown in Figure 5 and described in detail in Appendix
E have been initially identified for evaluating the contributions of
ONR personnel covered by this initiative. They are designed to capture
the highest level of the primary content of the jobs in each pay band
of each career track. Within specific parameters, elements may be
weighted or even determined to be not applicable for certain categories
of positions. All elements applicable to the position are critical as
defined by 5 CFR part 430.
[GRAPHIC] [TIFF OMITTED] TN10DE10.099
For each element, ``Discriminators'' and ``Descriptors'' are
provided to assist in distinguishing low to high contributions. The
discriminators (two to four for each element) break down aspects of
work to be measured within the element. The descriptors (one for each
pay band for each discriminator) define the expected level of
contribution at the top of the related pay band for that element.
Scores currently range between 0 and 92; specific relationships
between scores and pay bands are different for each career track. (See
Figure 6.) Basic pay adjustments are based on a comparison of the
employee's level of contribution to the normal pay range for that
contribution and the employee's present rate of basic pay.
[[Page 77398]]
[GRAPHIC] [TIFF OMITTED] TN10DE10.100
Supervisors and pay pool panels determine an employee's
contribution level for each element considering the discriminators as
appropriate to the position. A contribution score, available to that
level, is assigned accordingly. For example, a scientist whose
contribution in the Technical Problem Solving element for S&E
Professionals is determined to be at Pay Band II may be assigned a
score of 18 to 47. Eighteen reflects the lowest level of
responsibility, exercise of independent judgment, and scope of
contribution; and 47 reflects the highest. For Pay Band III
contributions, a value of 44 to 66 may be assigned. Each higher pay
band equates to a higher range of values with the total points
available to S&E Professionals to be determined based on the salary
range for pay band V under the proposed DoD above GS-15 position
initiative. Each element is judged separately and level of work may
vary for different elements. The scores for each element are then
averaged to determine the Overall Contribution Score (OCS).
The CCS process will be carried out within pay pools made up of
combined ONR organizations. The organizations in each pay pool will be
combined based on criteria such as similarity of work and chain of
command. To facilitate equity and consistency, element weights and
applicability and CCS score adjustments are determined by a pay pool
panel, rather than by individual supervisors. Basic pay adjustments,
contribution awards, and DCA's may be recommended by the pay pool panel
or by individual supervisors. Pay pool panels will consist of
Department heads and Directors, or other individuals who are familiar
with the organization's work and the contributions of its employees.
The Executive Director, or designee, will function as the pay pool
manager, with final authority to decide weights, scores, basic pay
adjustments, and awards.
3. Pay Pool Annual Planning
Prior to the beginning of each annual appraisal period, the pay
pool manager and panel will review pay pool-wide expectations in the
areas described below.
a. Element Weights and Applicability.
As written, all elements are weighted equally. If the pay pool
manager and panels decide that some elements are more important than
others or that some do not apply at all to the effective accomplishment
of the organization's mission, they may establish element weights
including a weight of zero which renders the element not applicable.
Element weights are not intended for application to individual
employees. Instead, they may be established only for subcategories of
[[Page 77399]]
positions, not to exceed a maximum of five subcategories in each career
track. Subcategories for S&E Professionals might be: Supervisor,
Program Manager, and Support S&E. Subcategories should include a
minimum of five positions, when possible. Weights must be consistent
within the subcategory.
b. Supplemental Criteria.
The CCS Pay Band descriptors are designed to be general so that
they may be applied to all employees in the career track. Supervisors
and pay pool panels may establish supplemental criteria to further
inform employees of expected contributions. This may include (but is
not limited to) examples of contributions which reflect work at each
level for each element, taskings, objectives, and/or standards.
4. Annual CCS Appraisal Process (See Figure 7.)
[GRAPHIC] [TIFF OMITTED] TN10DE10.101
The ONR appraisal period will normally be one year, with a minimum
appraisal period of 90 days. Employees who serve less than 90 days
during an appraisal cycle will receive a presumptive performance rating
of acceptable. At the beginning of the appraisal period, or upon an
employee's arrival at ONR or into a new position, the following
information will be communicated to employees so that they are informed
of the basis on which their performance and contributions will be
assessed: their career track and pay band; applicable elements,
descriptors and discriminators; element weights; any established
supplemental criteria and basic acceptable performance standards.
OCS's, which correspond to each employee's NPR (see section IV.C.6),
will be available after pay adjustments have been processed, normally
early-to-mid January. All employees will be provided this information;
however, employees in some situations may not receive CCS scores. These
situations are described in section IV.C.5, Exceptions. The
communication of information described by this paragraph constitutes
performance planning as required by 5 CFR 430.206(b).
Supervisor and employee discussion of organizational objectives,
specific work assignments, and individual performance expectations (as
needed), should be conducted on an ongoing basis. Either the supervisor
or the employee may request a formal review during the appraisal
period; otherwise, a documented review is required only at the end of
the appraisal period.
At the end of the appraisal period, employees will provide input
describing their contributions by preparing a Yearly Accomplishment
Report (YAR). Pay pool managers may exempt groups of positions from the
requirement to submit YARs; in cases where YARs are not required,
employees may submit them at their own discretion. Standard operating
procedures will provide guidance for pay pools and employees on the
content and format of YARs, and on other types of information about
employee contributions which should be developed and considered by
[[Page 77400]]
supervisors. This will include procedures for capturing contribution
information regarding employees who serve on details, who change
positions during the appraisal period, who are new to ONR, and other
such circumstances.
Supervisors will review the employee's YAR and other available
information about the employee's contributions during the appraisal
period and determine an initial CCS score for each element considering
the discriminators as appropriate to the position. In addition,
supervisors will determine whether the employee's performance was
acceptable or unacceptable in each element when compared against the
basic acceptable performance standards. The rating of the elements (all
that are applicable are designated critical as defined by 5 CFR part
430) will serve as the basis for assignment of a summary level of
Acceptable or Unacceptable. If any element is rated unacceptable, the
summary level will be Unacceptable; otherwise the summary level will be
Acceptable. Unacceptable ratings must be reviewed and approved by a
higher level than the first-level supervisor.
If an employee changes positions during the last 90 days of the
appraisal period, the losing supervisor will conduct a performance
rating (i.e., rate each element Acceptable or Unacceptable and
determine the summary level) at the time the employee moves to the new
position. This will serve as the employee's rating of record. For
employees who report to ONR during the last 90 days of the appraisal
period, any close-out rating of Acceptable (or its equivalent) or
better from another Government agency will serve as the employee's
rating of record (the employee will be rated Acceptable). The
determination of CCS scores and application of related pay adjustments
for such employees is set forth in section IV.C.5, ``Exceptions.''
The pay pool panel will meet to compare scores, make appropriate
adjustments, and determine the final OCS for each employee. Final
approval of CCS scores and element and summary ratings will rest with
the pay pool manager (unless higher level approval is requested or
deemed necessary). To avoid conflict with state bar rules, the pay pool
panel may not alter the CCS element scores or the Overall Contribution
Score that ONR Counsel assigns to an attorney; however, the pay pool
panel may make independent judgments, such as pay adjustments, after
considering that score. Supervisors will communicate the element
scores, ratings, summary level, and OCS to each employee, and discuss
the results and plans for continuing growth. Employees rated
Unacceptable will be provided assistance to improve their performance
(see paragraph V.A.). The CCS process will be facilitated by an
automated system, the Contribution-based Compensation System Data
System (CCSDS). During the appraisal process, all scores and
supervisory comments will be entered into the CCSDS. The CCSDS will
provide supervisors, pay pool panel members, and pay pool managers with
background information (e.g., YARS, employees' prior year scores and
current basic pay) and spreadsheets to assist them in comparing
contributions and determining scores. Records of employee appraisals
will be maintained in the CCSDS, and the system will be able to produce
a hard copy document for each employee which reflects his or her final
approved score.
5. Exceptions
All employees who have worked 90 days or more by the end of the
appraisal period will receive a performance rating of record. Those
employees who have performed less than 90 days will receive a
presumptive performance rating of Acceptable. However, in certain
situations ONR does not consider the actual determination of CCS scores
to be necessary. In other situations, it may not be feasible to
determine a meaningful CCS score. Therefore, the determination of CCS
scores will not be required for the following types of employees: (a)
Employees on intermittent work schedules; (b) Those on temporary
appointments of one year or less; (c) Those who work less than six
months in an appraisal period (e.g., on extended absence due to
illness); (d) Those on long-term training for all or much of the
appraisal period; (e) Employees who have reported to ONR or to a new
position during the 90 days prior to the end of the appraisal period;
and (f) Student Educational Employment Program employees.
If supervisors believe that the nature of such an employee's
contributions provide a meaningful basis to determine a CCS score, they
may appraise employees in the categories listed above, provided that
the employee has worked at least 90 days in an ONR position by the time
the pay pool manager forwards final decisions. The employee will be
retroactively assessed as of 30 September.
Those employees mentioned above who are not appraised under CCS
will not be eligible for merit increases or contribution awards. (This
will affect the calculation of service credit for RIF (see section
V.C.)). All employees listed above will be given full general and
locality increases (as described in sections IV.C.7.a, ``General
Increases,'' and IV.C.7.c, ``Locality Increases''). All employees are
eligible for awards under ONR's Incentive Awards Program, such as ``On-
the-Spot'' and Special Act Awards, as appropriate.
6. Normal Pay Range (NPR)--Basic Pay Versus Contribution
The CCS assumes a relationship between the assessed contribution of
the employee and a normal range of pay. For all possible contribution
scores available to employees, the NPR spans a basic pay range of 12
percent. Employees who are compensated below the NPR for their assessed
score are considered ``undercompensated,'' while employees compensated
above the NPR are considered ``overcompensated.''
The lower boundary of the NPR is initially established by fixing
the basic pay equivalent to GS-1, step 1, (without locality pay), with
a CCS score of zero. The upper boundary is fixed at the basic pay
equivalent to GS-15, step 10, (without locality pay), with a CCS score
of 80. The distance between these upper and lower boundaries for a
given overall contribution score is 12 percent of basic pay for all
available CCS scores. Using these constraints, the interval between
scores is approximately 2.37 percent through the entire range of pay.
The lines will be extended using the same interval so that the upper
boundary of the normal range of basic pay accommodates the basic pay
needed for the S&E Professional career track pay band V. (The actual
end point will vary depending on any pay adjustment factors, e.g.,
general increase.) The formula used to derive the NPR may be adjusted
in future years of the demonstration project. See Appendix F for
further details regarding the formulation of the NPR.
Each year the boundaries for the NPR plus the minimum and maximum
rate of basic pay for each pay band will be adjusted by the amount of
the across-the-board GS percentage increase granted to the Federal
workforce. At the end of each annual appraisal period, employees'
contribution scores will be determined by the CCS process described
above, then their overall contribution scores and current rates of
basic pay will be plotted as a point on a graph along with the NPR. The
position of the point relative to the NPR gives a relative measure of
the degree of over- or undercompensation of the employee, as shown in
Figure 8. Points which fall below the NPR indicate
[[Page 77401]]
undercompensation; points which fall above the NPR indicate
overcompensation.
[GRAPHIC] [TIFF OMITTED] TN10DE10.102
7. Compensation
Presently, employee pay is established, adjusted, and/or augmented
in a variety of ways, including general pay increases, locality pay
increases, special rate adjustments, within-grade increases (WGI's),
quality step increases (QSI's), performance awards, and promotions.
Multiple pay changes in any given year (averaging three per employee)
are costly to process and do not consider comprehensively the
employee's contributions to the organization. Under the demonstration
project, ONR will distribute the budget authority from the sources
listed above into four pay categories: (1) General increase, (2)
locality increase, (3) merit increase, and (4) contribution awards.
From these pay categories, a single annual pay action would be
authorized based primarily on employees' contributions. Competitive
promotions will still be processed under a separate pay action; most
career promotions will be processed under the CCS.
In general, the goal of CCS is to pay in a manner consistent with
employee contribution or, in other words, migrate employees' basic pay
closer to the NPR. One result may be a wider distribution of pay among
employees for a given level of duties.
After the CCS appraisal process has been completed and the
employees' standing relative to the NPR has been determined, the pay
pool manager, in consultation with the pay pool panel or other pay pool
supervisory and staff officials, will determine the appropriate basic
pay change and contribution award, if appropriate, for each employee.
Standard operating procedures will provide guidance, including market
salary reference data, to assist pay pool managers in making pay
determinations. In most cases, the pay pool manager will approve basic
pay changes and awards. In some cases, however, approval of a higher
level official will be required. Figure 9 summarizes the eligibility
criteria and applicable limits for each pay category.
[[Page 77402]]
[GRAPHIC] [TIFF OMITTED] TN10DE10.103
The CCSDS will calculate each employee's OCS and his or her
standing in relation to the NPR. The system will provide a framework to
assist pay pool officials in selecting and implementing a payout
scheme. It will alert management to certain formal limits in granting
pay increases; e.g., an employee may not receive a permanent increase
above the maximum rate of basic pay for his or her pay band until a
corresponding level change has been effected. Once basic pay and award
decisions have been finalized and approved, the CCSDS will prepare the
data file for processing the pay actions, and maintain a consolidated
record of CCS pay actions for all ONR demonstration project employees.
a. General Increases. General increase budget authority will be
available to pay pools as a straight percentage of employee salaries,
as derived under 5 U.S.C. 5303 or similar authority. Pay pool panels or
managers may reduce or deny general pay increases for employees whose
contributions are in the overcompensated category. (See Figure 9.) Such
reduction or denial may not place an employee in the undercompensated
category. An employee receiving maintained pay (except one receiving
maintained pay for an occupational injury who receives a full general
pay increase) will receive half of the across-the-board GS percentage
increase in basic pay until the employee's basic pay is within the
basic pay range assigned for their current position or for two years,
whichever is less. ONR employees on pay retention at the time of
demonstration project implementation or as a result of placement
through the DON RPL, DoD PPP or the Federal Interagency Career
Transition Assistance Plan will receive half of the across-the-board GS
percentage increase until the employee's maintained pay is exceeded by
the maximum rate for the employee's pay band or the maintained pay is
ended due to a promotion. General increase authority not expended is
available to either the merit increase or contribution award pay
categories or both.
b. Merit Increases.
Merit increases will be calculated after the determination of
employees' general increases. Merit increases may be granted to
employees whose contribution places them in the ``normal'' or
``undercompensated'' categories. (See Figure 9.) In general, the higher
the range in which the employee is contributing compared to his or her
basic pay, the higher the merit increase should be. However, the
following limitations apply: A merit increase may not place any
employee's basic pay (1) in the ``overcompensated'' category (as
established by the NPR for the upcoming year, which has been adjusted
by the amount of the new general increase); (2) in excess of
established basic pay caps; (3) in excess of the maximum rate of basic
pay for the individual's pay band (unless the employee is being
concurrently advanced to the higher pay band); or (4) above any
outside-imposed dollar limit. Merit increases for employees in the NPR
will be limited to six percent of basic pay, not to exceed the upper
limit of the NPR for the employee's score. In addition, merit increases
for employees in the undercompensated range may not exceed six percent
above the lower rail of the NPR, or 20 percent of basic pay without CNR
or designee approval.
The size of ONR's continuing pay fund is based on appropriate
factors, including the following: (1) Historical spending for within-
grade increases, quality step increases, and in-level career promotions
(with dynamic adjustments to account for changes in law or in staffing
factors, e.g., average starting salaries and the distribution of
employees among job categories and pay bands); (2) Labor market
conditions and the need to recruit and retain a skilled workforce to
meet the business needs of the organization; and (3) The fiscal
condition of the organization. ONR will periodically review or will
review every two to three years its continuing pay fund to determine if
any adjustments are necessary.
The amount of budget authority available to each pay pool will be
determined annually by the CNR. Factors to be considered by the CNR in
determining annual budget authority may include market salaries,
mission priorities, and organizational growth. Because statistical
variations will occur in year-to-year personnel growth, any unexpended
merit increase authorities may be transferred to the Contribution
Awards category.
c. Locality Increases.
All employees will be entitled to the locality pay increase
authorized by law and regulation for their official duty station and/or
position.
d. Contribution Awards.
Authority to pay contribution awards (lump-sum payments recognizing
significant contributions) will be initially available to pay pools as
a straight 1.5 percent of employees' basic pay (similar to the amount
currently available for performance awards). The percentage rate may be
adjusted in
[[Page 77403]]
future years of the demonstration project. In addition, unexpended
general increase and merit increase budget authorities may be used to
augment the award category. Contribution awards may be granted to those
employees whose contributions place them in the ``normal'' or
``undercompensated'' category, and to employees in the
``overcompensated'' category who are on maintained pay. Standard
operating procedures will provide guidance to pay pool managers in
establishing and applying criteria to determine significant
contributions which warrant awards. An award exceeding $10,000 requires
CNR approval. (See Figure 9.) Pay pools may also grant time-off as a
contribution award, in lieu of or in addition to cash.
8. Career Movement Based on CCS
Movement through the pay bands will be determined by contribution
and basic pay at the time of the annual CCS appraisal process.
The ONR demonstration project is an integrated system that links
level of work to be accomplished (as defined by a career track and pay
band) with individual achievement of that work (as defined by an OCS)
to establish the rate of appropriate compensation (as defined by the
career track pay schedule), and to determine progression through the
career track. This section addresses only changes in level which relate
directly to the CCS determination.
When an employee's OCS falls within three scores of the top score
available to his or her current pay band, supervisors should consider
whether it is appropriate to advance the employee to the next higher
pay band (refer to IV.A.1.a for other criteria). If progression to the
next higher level is deemed warranted, supporting documentation would
be included with the CCS appraisal and forwarded through the
appropriate channels for approval. If advancement is not considered
appropriate at this time, the employee would remain in his or her
current pay band. Future basic pay raises would be capped by the top of
the employee's current pay band unless the employee progresses to the
next higher pay band through a CCS-related promotion, an accretion of
duties promotion, or a competitive promotion.
a. Advancements in Pay Band Which May be Approved by the Pay Pool
Manager.
Advancements to all pay bands except Pay Band V of the S&E
Professional Career Track may be approved by the pay pool manager.
b. Advancements in Pay Band Which Must be Approved by the Executive
Director.
Advancement to (1) pay bands outside target pay bands or
established position management criteria; (2) Pay Band IV and V of the
S&E Professional Career Track; and (3) Pay Bands IV and V of the
Administrative Specialist and Professional Career Track require
approval by the Executive Director or his or her designee. Details
regarding the process for nomination and consideration, format,
selection criteria, and other aspects of this process will be addressed
in the standard operating procedures.
c. Advancement to Pay Band V of the Science and Engineering (S&E)
Professional Career Track.
Vacancies in this pay band will be filled in accordance with
guidance issued by DoD.
d. Regression to Lower Pay Band. (See Figure 8, ``Employee A'').
If an employee is contributing less than expected for the level at
which he or she is being paid, the individual may regress into a lower
pay band through reduction or denial of general increases and
ineligibility for merit increases. (This is possible because the NPR
plus the minimum and maximum pay rates for each pay band will be
adjusted upwards each year by the across-the-board GS percentage
increase in basic pay.) If the employee's basic pay regresses to a
point below the pay overlap area between his or her current pay band
and the next lower pay band, it will no longer be appropriate to
designate him or her as being in the higher level. Therefore, the
employee will be formally changed to the lower pay band. The employee
will be informed of this change in writing, but procedural and appeal
rights provided by 5 U.S.C. 4303 and 7512 (and related OPM regulations)
will not apply (except in the case of employees who have veterans'
preference). ONR is providing for waivers of the statute and
regulations for such actions. Further, because a change to lower pay
band under such circumstances is not discretionary, the change may not
be grieved under ONR's administrative grievance procedures.
9. CCS Grievance Procedures
An employee may grieve the appraisal received under CCS using
procedures specifically designed for CCS appraisals. Under these
procedures, the employee's grievance will first be considered by the
pay pool panel, which will recommend a decision to the pay pool
manager. Any panel member's grievance will be considered by the pay
pool manager, without reference to the panel. If the employee is not
satisfied with the pay pool manager's decision, he/she may file a
formal grievance under the provisions of the ONR's formal grievance
procedures, unless the employee's pay pool manager is the CNR, in which
case the first-step decision will be final. A CCS grievance from an ONR
attorney will be handled in accordance with the Office of General
Counsel's grievance procedures after ONR Counsel and the pay pool panel
recommend a resolution.
The following are not grievable: Pay actions resulting from CCS
(receipt, non-receipt or amount of general increase, merit increase,
DCA, or contribution award); reductions in pay band without reduction
in pay due to regression (see section IV.C.8.d); contents of CCS Plans,
(element weights, descriptors/discriminators, performance standards and
supplemental criteria); or any action for which another appeal or
complaint process exists.
V. Separations
A. Performance-based Reduction-in-Pay or Removal Actions
This section applies to reduction in pay or removal of
demonstration project employees based solely on unacceptable
performance. Adverse action procedures under 5 CFR part 752 remain
unchanged.
When a supervisor determines during or at the end of the appraisal
period that the employee is not completing work assignments
satisfactorily, the supervisor must make a determination as to whether
the employee is performing unacceptably in one or more of the
contribution elements. All CCS elements applicable to the employee's
position are critical as defined by 5 CFR part 430.
Unacceptable performance determinations must be made by comparing
the employee's performance to the acceptable performance standards
established for elements. At any time during or at the end of the
appraisal period that an employee's performance is determined to be
unacceptable in one or more contribution elements, the employee will be
provided assistance in improving his or her performance. This will
normally include clarifying (or further clarifying) the meaning of
terms used in the acceptable performance standards (e.g., ``timely''
``thorough research,'' and ``overall high quality'') as they relate to
the employee's specific responsibilities and assignments. An employee
whose performance is unacceptable after he or she has been
[[Page 77404]]
given a reasonable opportunity to improve may be removed or reduced in
grade or pay band, in accordance with the provisions of 5 U.S.C. 4303
and related OPM regulations. Employees may also be removed or reduced
in grade or pay band based on unacceptable performance under the
provisions of 5 U.S.C. 7512. All procedural and appeal rights set forth
in the applicable statute and related OPM regulations will be afforded
to demonstration project employees removed or reduced in grade or pay
band for unacceptable performance.
B. Reduction-in-Force (RIF) Procedures
1. RIF Authority
Under the demonstration project, ONR would be delegated authority
to approve RIF as defined in Secretary of the Navy Instruction 12351.5F
and the use of separation pay incentives.
2. RIF Definitions
a. Competition in RIF.
When positions are abolished, employees are released from their
retention levels in inverse order of their retention standing,
beginning with the employee having the lowest standing. If an employee
is reached for release from a retention level, he/she could have a
right to be assigned to another position within their same career track
and pay band or they could have a right to retreat to a position
previously held.
b. Competitive Area.
A separate competitive area will be established by geographic
location for all personnel included in the demonstration project.
c. Competitive Level.
Positions in the same occupational pay band, which are similar
enough in duties and qualifications that employees can perform the
duties and responsibilities including the selective placement factor,
if any, of any other position in the competitive level upon assignment
to it, without any loss of productivity beyond what is normally
expected.
d. Service Computation Date (SCD).
The employee's basic Federal SCD would be adjusted for CCS results
credit.
(1). Federal SCD.
An employee's basic Federal SCD may be credited with up to 20 years
credit based on the results of the CCS process. The CCS RIF Assessment
Category would be used to determine the number of RIF years credited.
The CCS RIF Assessment Category is the combination of the employee's
standing under the CCS relative to the NPR and any merit increase, DCA,
contribution award or promotion. Figure 10 shows the RIF years
available for each CCS RIF Assessment Category [proposed revisions to
the RIF Assessment Category are depicted].
[GRAPHIC] [TIFF OMITTED] TN10DE10.104
(2). CCS Process Results.
If an employee has fewer than three CCS process results, the value
(RIF years available) of the actual number of process results on record
will be divided by the number of actual process results on record. In
cases where an employee has no actual CCS process results, the employee
will be given the additional RIF CCS process results credit for the
most common, or ``modal'' ONR demonstration project CCS RIF Assessment
Category for the most recent CCS appraisal period.
(3). Credit from Other Rating Systems.
Employees who have been rated under different patterns of summary
rating levels will receive RIF appraisal credit as follows:
--If there are any ratings to be credited for the RIF given under a
rating system which includes one or more levels above fully successful
(Level 3), employees will receive credit as follows: 12 years for Level
3, 16 years for Level 4, or 20 years for Level 5; or
--If an employee comes from a system with no levels above Fully
Successful (Level 3), they will receive credit based on the
demonstration project's modal CCS RIF assessment category.
(4). RIF Cutoff Date.
To provide adequate time to properly determine employee retention
standing, the cutoff date for use of new CCS
[[Page 77405]]
process results is set at 30 days prior to the date of issuance of RIF
notices.
3. Displacement Rights
a. Displacement Process.
Once the position to be abolished has been identified, the
incumbent of that position may displace another employee within the
incumbent's current career track and pay band when the incumbent has a
higher retention standing and is fully qualified for the position
occupied by an employee with a lower standing. If there are no
displacement rights within the incumbent's current career track and pay
band, the incumbent may exercise his or her displacement rights to any
position previously held in the next lower pay band, regardless of
career track, when the position is held by an employee with a lower
retention standing. In the case of all preference eligibles, they may
displace up to the equivalent of three grades or intervals below the
highest equivalent grade of their current pay band in the same or a
different career track regardless of whether they previously held the
position provided they are fully qualified for the position and the
position is occupied by an employee with a lower retention standing.
Preference eligibles with a compensable service connected disability of
30 percent or more may displace an additional two GS grades or
intervals (total of five grades) below the highest equivalent grade of
their current pay band provided they have previously held the position
and the position is occupied by an employee in the same subgroup with a
later RIF service computation date.
b. Retention Standing.
Retention is based on tenure, veteran preference, length of
service, and CCS process results. Competing employees are listed on a
retention register in the following order: Tenure I (career employees),
Tenure II (career-conditional employees), and Tenure III (contingent
employees). Each tenure group has three subgroups (30% or higher
compensable veterans, other veterans, and non-veterans) and employees
appear on the retention register in that order. Within each subgroup,
employees are in order of years of service adjusted to include CCS
process results.
c. Vacant Positions.
Assignment may be made to any available vacant position including
those with promotion potential in the competitive area.
d. Ineligible for Displacement Rights.
Employees who have been notified in writing that their performance
is considered to be unacceptable are ineligible for displacement
rights.
e. Change to Lower Pay Band due to an Adverse or Performance-based
Action.
An employee who has received a written decision to change him or
her to a lower pay band level due to an adverse or performance-based
action will compete from the position to which he or she will be or has
been demoted.
4. Notice Period
The notice period and procedures in 5 CFR subpart H, section
351.801 will be followed.
5. RIF Appeals
Under the demonstration project, employees affected by a RIF
action, other than a reassignment, maintain their right to appeal to
the Merit Systems Protection Board if they feel the reason for the RIF
is not valid or if they think the process or procedures were not
properly applied.
6. Separation Incentives
ONR will have delegated authority to approve separation incentives
and will use the current calculation methodology of a lump sum payment
equal to an employee's severance pay calculation or $25,000, whichever
is less.
7. Severance Pay
Employees will be covered by the severance pay rules in 5 CFR part
550, subpart G, except that ONR will establish rules for determining a
``reasonable offer'' according to the provisions of 5 CFR 536.104.
8. Outplacement Assistance
All outplacement assistance currently available would be continued
under the demonstration project.
VI. Demonstration Project Transition
A. Initial Conversion or Movement to the Demonstration Project
1. Placement Into Career Tracks and Pay Bands
Conversion or movement of GS employees into the demonstration
project will be into the career track and pay band which corresponds to
the employee's current GS grade and basic pay. If conversion into the
demonstration project is accompanied by a simultaneous change in the
geographic location of the employee's duty station, the employee's
overall GS pay entitlements (including locality rate) in the new area
will be determined before converting the employee's pay to the
demonstration project pay system. Employees will be assured of
placement within the new system without loss in total pay. Once under
the demonstration project, employee progression through the career
tracks and pay bands up to their target pay band is dependent upon
contribution score, not upon previous methods (e.g., WGI's, QSI's, or
career promotions as previously defined).
ONR proposes the addition of language to clarify procedures for
non-competitive placements into the demonstration project.
Specifically, employees who enter the demonstration project after
initial implementation by lateral transfer, reassignment, or
realignment will be subject to the same pay conversion rules.
2. Conversion of Retained Grade and Pay Employees
ONR's workforce will be grouped into career tracks and associated
pay band with designated pay ranges rather than the traditional grade
and step. Therefore, grade and pay retention will be eliminated. ONR
will grant ``maintained pay'' (as defined in section III.G.2,
``Maintained Pay''), which is related to the current meaning of
``retained pay'' but does not provide for indefinite retention of pay
except in certain situations. Employees' currently on grade or pay
retention will be immediately placed on maintained pay at their current
rate of basic pay if this rate exceeds the maximum rate for their pay
band and ``grandfathered'' in the appropriate pay band. Employees on
grade retention will be placed in the pay band encompassing the grade
of their current position. Employees will receive half of the across-
the-board GS percentage increase in basic pay and the full locality pay
increase until their basic pay is within the appropriate basic pay
range for their current position without time limitation.
3. WGI Buy-In
The participation of all covered ONR employees in the demonstration
project is mandatory. However, acceptance of the system by ONR
employees is essential to the success of the demonstration project.
Therefore, on the date that employees are converted to the project pay
plans, they will be given a prorated permanent increase in pay equal to
the earned (time spent in step) portion of their next WGI based on the
value of the WGI at the time of conversion so that they will not feel
they are losing a pay entitlement accrued under the GS system.
Employees will not be eligible for this basic pay increase if their
current rating of record is unacceptable at the time of conversion.
There will be no prorated payment for employees who are at step 10 or
receiving a retained rate at the
[[Page 77406]]
time of conversion into the demonstration project.
4. Career Promotion Eligibility
ONR proposes to adopt MRMC's provisions for compensating employees
who would have become eligible for career promotions during the first
12 months of the demonstration project but for conversion to the
demonstration project pay bands. Employees who qualify under this
provision will receive pay increases for noncompetitive promotion
equivalents when the grade level of the promotion is encompassed within
the same pay band or another, the employee's performance warrants the
promotion, and the promotion would have otherwise occurred during that
period. Employees who receive an in-level promotion at the time of
conversion will not receive a WGI Buy-In equivalent as defined above.
For example if a GS-11 employee converts in to the demonstration
project at a Pay Band III within the Administrative Specialists and
Professional Career Track and would have become eligible for promotion
to GS-12 within the next 12 months, that employee will receive a pay
increase equivalent to the GS-12 but still remain in Pay Band III.
During the first 12 months of the demonstration project an
exception will also be made for employees whose target career promotion
would place them in a different pay band from their initial pay band
level at conversion. If the employee's performance warrants it and the
promotion would have occurred otherwise except for the demonstration
project, the non-competitive target career promotion can happen outside
the CCS process. For example if an employee's career ladder position
has a full performance level of GS-13 and the employee is a GS-12 at
conversion, the employee would initially convert in to the
demonstration project at a Pay Band III but may be eligible for a non-
competitive promotion into Pay Band IV within the first 12 months of
the demonstration project if all requirements are met and the promotion
is recommended by their supervisor.
5. Conversion of Special Salary Rate Employees
Employees who are in positions covered by a special salary rate
prior to entering the demonstration project will no longer be
considered special salary rate employees under the demonstration
project. These employees will, therefore, be eligible for full locality
pay. The adjusted salaries of these employees will not change. Rather,
the employees will receive a new basic rate of pay computed by dividing
their basic adjusted pay (higher of special salary rate or locality
rate) by the locality pay factor for their area. A full locality
adjustment will then be added to the new basic pay rate. Adverse action
will not apply to the conversion process as there will be no change in
total salary. However, if an employee's new basic pay rate after
conversion to the demonstration project pay schedule exceeds the
maximum basic pay authorized for the pay band, the employee will be
granted maintained pay under paragraph III.G.2 until the employee's
salary is within the range of the pay band. For example, an Electronics
Engineer, GS-855-9, step 5, is paid $59,568 per annum in accordance
with special GS salary rates as of January 2010 per Table Number: 0422.
The employee is located in the locality area of Washington-Baltimore,
DC-MD-VA-WV. Under the demonstration project, the computation of the
engineer's new basic rate of pay with a full locality adjustment and
WGI buy-in is computed as follows:
a. Basic adjusted pay divided by locality pay factor = new basic
rate of pay.
b. New basic rate of pay multiplied by the full locality adjustment
for current area = full locality adjustment amount for special rate
employees.
c. New basic rate of pay + WGI buy-in amount x locality pay factor
= demonstration special rate for conversion.
6. Conversion of Employees on Temporary Promotions
Employees who are on temporary promotions at the time of conversion
will be returned to their grade and step of record prior to conversion.
These employees will be converted to a pay band following the
procedures described in Section IV.A.1. After conversion, the temporary
promotion may be reinstated for the remainder of the original 120-day
timeframe. If the grade of the temporary position is associated with a
higher pay band, the employee will be temporarily placed in the
appropriate higher band while on the temporary promotion, following the
procedures described in Section II.A.5.b.i. After the temporary
promotion has ended, the employee will be returned to the salary and
pay band established upon conversion, following the procedures
described in Section II.A.5.b.iv.
7. Non-Competitive Movement Into the Demonstration Project
Employees who enter the demonstration project after initial
implementation by lateral transfer, reassignment, or realignment will
be subject to the same pay conversion rules and will, therefore, be
eligible for full locality pay. Specifically, adjustments to the
employee's basic pay for a step increase or a non-competitive career
ladder promotion will be computed as a prorated share of the current
value of the step or promotion increase based upon the number of full
weeks an employee has completed toward the next higher step or grade at
the time the employee moves into the project.
B. CCS Start-Up
ONR expects to place employees on CCS elements, descriptors,
discriminators, and standards around October 2010 with conversion to
demonstration project pay plans before the end of April 2011. The CCS
process will be used to appraise ONR employees at the end of the 2010-
2011 cycle which would occur on September 30, 2011. ONR expects the
first CCS payout to occur at the beginning of the first full pay period
in January 2012.
C. Training
An extensive training program is planned for everyone in the
demonstration project including the supervisors, managers, and
administrative staff. Training will be tailored, as discussed below, to
fit the requirements of every employee included in the demonstration
project and will address employee concerns and as well as the benefits
to employees. In addition, leadership training will be provided, as
needed, to managers and supervisors as the new system places more
responsibility and decision making authority on them. ONR training
personnel will provide local coordination and facilities, supplemented
by contractor support as needed. Training will be provided at the
appropriate stage of the implementation process.
1. Types of Training
Training packages will be developed to encompass all aspects of the
project and validated prior to training the workforce. Specifically,
training packages will be developed for the following groups of
employees:
a. Employees.
ONR demonstration project employees will be provided an overview of
the demonstration project and employee processes and responsibilities.
b. Supervisors and Managers.
Supervisors and managers under the demonstration project will be
provided training in supervisory and managerial
[[Page 77407]]
processes and responsibilities under the demonstration project.
c. Support Personnel.
Administrative support personnel, HRO personnel, financial
management personnel, and Management Information Systems Staff will be
provided training on administrative processes and responsibilities
under the demonstration project.
D. New Hires Into the Demonstration Project
The following steps will be followed to place employees (new hires)
entering the system:
1. The career track and pay band will be determined based upon the
employee's education and experience in relation to the duties and
responsibilities of the position in which he or she is being placed,
consistent with OPM qualification standards.
2. Basic pay will be set based upon available labor market
considerations relative to special qualifications requirements,
scarcity of qualified candidates, programmatic urgency, and education
and experience of the new candidate.
3. Employees placed through the DOD Reemployment Priority List
(RPL), or DOD Priority Placement Program (PPP), or the Interagency
Career Transition Assistance Plan (ICTAP) who are eligible for
maintained pay will receive one half of the across-the-board GS
percentage increase in basic pay and the full locality pay increase
until the employee's basic pay is within the basic pay range of the
career track and pay band to which assigned. Federal employees on
retained pay and Federal employees on special salary rates hired into
the Demonstration Project by promotion or reassignment are eligible for
maintained pay and will receive one half of the across-the-board GS
percentage increase in basic pay and the full locality pay increase
until the employee's basic pay is within the basic pay range of the
career track and pay band to which assigned. Employees are eligible for
maintained pay as long as there is no break in service and if the
employee's rate of pay exceeds the maximum rate of his or her pay band.
4. New employees will be provided training and an overview of the
demonstration project outlining the CCS process and their
responsibilities. If the employee is a manager, training will also
include supervisory and managerial responsibilities under the
demonstration project.
E. Conversion or Movement From Demonstration Project
In the event the demonstration project is terminated or employees
leave the demonstration project through promotion, change to lower
grade, reassignment or transfer, conversion back to the GS system may
be necessary. The converted GS grade and GS rate of pay must be
determined before movement or conversion out of the demonstration
project and any accompanying geographic movement, promotion, or other
simultaneous action. An employee will not be converted at a level which
is lower than the GS grade held immediately prior to entering the
demonstration project; unless, since that time, the employee has
undergone a reduction in pay band. The converted GS grade and rate will
become the employee's actual GS grade and rate after leaving the
demonstration project and will be used to determine the pay action and
GS pay administration rules for employees who leave the project to
accept a position in the traditional Civil Service system. The
following procedures will be used to convert the employee's
demonstration project pay band to a GS equivalent grade and the
employee's demonstration project rate of pay to the GS equivalent rate
of pay.
1. Grade Determination
Employees will be converted to a GS grade based on a comparison of
the employee's current adjusted rate of basic pay to the highest GS
applicable rate range considering only those grade levels that are
included in the employee's current pay band. The highest GS applicable
rate range includes GS basic rates, locality rates, and special salary
rates. An employee in a pay band corresponding to a single GS grade is
converted to that grade. An employee in a pay band corresponding to two
or more grades is converted to one of those grades using the following
procedures identified in a-f below:
a. Identify the highest GS grade within the current pay band that
accommodates the employee's adjusted rate of basic pay (including any
locality payment).
b. If the employee's adjusted rate of basic pay equals or exceeds
the applicable step 4 rate of the identified highest GS grade, the
employee is converted to that grade.
c. If the employee's adjusted rate of basic pay is lower than the
applicable step 4 of the highest grade and there are only two GS grades
in the pay band, the employee is converted to the next lower grade. If
there are more than two GS grades in the pay band, this process is used
for each successively lower grade in the pay band until a grade is
found in which the employee's adjusted rate of basic pay equals or
exceeds the applicable step 4 of the grade. If the step 4 cannot be
matched at any of the GS grades, the employee will be converted to the
lowest GS grade in the pay band.
d. If under the above-described ``step 4'' rule, the employee's
adjusted project rate exceeds the maximum rate of the grade assigned
but fits in the rate range for the next higher applicable grade (i.e.,
between step 1 and step 4), then the employee shall be converted to the
next higher applicable grade.
e. For two-grade interval occupations, conversion should not be
made to an intervening (even) grade level below GS-11.
f. Employees in Level IV of the Administrative Specialist and
Professional Career Track will convert to the GS-13 level.
2. Pay Setting
Pay conversion will be done before any geographic movement or other
pay-related action that coincides with the employee's movement or
conversion out of the demonstration project. The employee's pay within
the converted GS grade is set by converting the employee's
demonstration project rate of pay to a GS rate of pay as follows:
a. The employee's demonstration project adjusted rate of pay
(including locality) is converted to a rate on the highest applicable
adjusted rate range for the converted GS grade. For example, if the
highest applicable GS rate range for the employee is a special salary
rate range, the applicable special rate salary table is used to convert
the employee's pay.
b. When converting an employee's pay, if the rate of pay falls
between two steps of the conversion grade, the rate must be set at the
higher step.
c. Employees whose basic pay exceeds the maximum basic pay of the
highest GS grade for their pay band will be converted to the highest
grade and step in their pay band. Upon conversion, the maximum basic
pay will be at the step 10 level with no provision for retained pay.
3. Employees in Positions Classified Above GS-15
Conversion and pay retention instructions for employees and
positions in Pay Band V of the S&E Professional Career Track will be
contingent on guidance provided by DoD.
[[Page 77408]]
4. Determining Date of Last Equivalent Increase
The last equivalent increase will be the date the employee received
a CCS pay increase, was eligible to receive a CCS pay increase, or
received a promotion, whichever occurred last.
F. Personnel Administration
All personnel laws, regulations, and guidelines not waived by this
plan will remain in effect. Basic employee rights will be safeguarded
and Merit System Principles will be maintained. Servicing CPACs will
continue to process personnel-related actions and provide consultative
and other appropriate services.
G. Automation
ONR will continue to use the Defense Civilian Personnel Data System
(DCPDS) for the processing of personnel-related data. Payroll servicing
will continue from the respective payroll offices.
An automated tool will be used to support computation of
performance related pay increases and awards and other personnel
processes and systems associated with this project.
H. 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.
VII. Demonstration Project Duration
Section 342 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337) does not require a mandatory expiration
date for this demonstration project. The project evaluation plan
addresses how each intervention will be comprehensively evaluated.
Major changes and modifications to the interventions may be made using
the procedures in DoDI 1400.37, if formal evaluation data warrant a
change. At the 5-year point, the entire demonstration will be examined
for either: (a) Permanent implementation, (b) modification and another
test period, or (c) termination of the project.
VIII. Demonstration Project Evaluation Plan
Consistent with guidance from OSD, ONR proposes following the same
evaluation plan as is being used by NRL and the other STRL
Demonstration Projects. Accordingly, standard language for Evaluation
Plan, Evaluation, and Method of Data Collection (sections V.B., V.C,
and V.D., respectively) provided by OSD is used in this document to
describe ONR's plans and procedures for the demonstration project
evaluation. The use of parallel evaluation methodologies will
facilitate comparisons across demonstration projects to derive higher-
order conclusions about the benefits, challenges, and overall
effectiveness of these programs.
A. Overview
Chapter 47 of title 5 U.S.C. requires that an evaluation be
performed to measure the effectiveness of the proposed laboratory
demonstration project, and its impact on improving public management. A
comprehensive evaluation plan for the entire laboratory demonstration
program, originally covering 24 DoD laboratories, was developed by a
joint OPM/DoD Evaluation Committee in 1995. This plan was submitted to
the Office of Defense Research & Engineering and was subsequently
approved. The main purpose of the evaluation is to determine whether
the waivers granted result in a more effective personnel system and
improvements in ultimate outcomes (i.e., laboratory effectiveness,
mission accomplishment, and customer satisfaction).
B. Evaluation Model
Appendix G shows an intervention model for the evaluation of the
demonstration project. The model is designated to evaluate two levels
of organizational performance: Intermediate and ultimate outcomes. The
intermediate outcomes are defined as the results from specific
personnel system changes and the associated waivers of law and
regulation expected to improve human resource (HR) management (i.e.,
cost, quality, timeliness). The ultimate outcomes are determined
through improved organizational performance, mission accomplishment,
and customer satisfaction. Although it is not possible to establish a
direct causal link between changes in the HR management system and
organizational effectiveness, it is hypothesized that the new HR system
will contribute to improved organizational effectiveness.
Organizational performance measures established by the organization
will be used to evaluate the impact of a new HR system on the ultimate
outcomes. The evaluation of the new HR system for any given
organization will take into account the influence of three factors on
organizational performance: Context, degree of implementation, and
support of implementation. The context factor refers to the impact
which intervening variables (i.e., downsizing, changes in mission, or
the economy) can have on the effectiveness of the program. The degree
of implementation considers the extent to which the:
(1) HR changes are given a fair trial period;
(2) Changes are implemented; and
(3) Changes conform to the HR interventions as planned.
The support of implementation factor accounts for the impact that
factors such as training, internal regulations and automated support
systems have on the support available for program implementation. The
support for program implementation factor can also be affected by the
personal characteristics (e.g., attitudes) of individuals who are
implementing the program.
The degree to which the project is implemented and operated will be
tracked to ensure that the evaluation results reflect the project as it
was intended. Data will be collected to measure changes in both
intermediate and ultimate outcomes, as well as any unintended outcomes,
which may happen as a result of any organizational change. In addition,
the evaluation will track the impact of the project and its
interventions on veterans and other protected groups, the Merit Systems
Principles, and the Prohibited Personnel Practices. Additional measures
may be added to the model in the event that changes or modifications
are made to the demonstration plan.
The intervention model at Appendix D will be used to measure the
effectiveness of the personnel system interventions implemented. The
intervention model specifies each personnel system change or
``intervention'' that will be measured and shows:
(1) The expected effects of the intervention,
(2) The corresponding measures, and
(3) The data sources for obtaining the measures.
Although the model makes predictions about the outcomes of specific
interventions, causal attributions about the full impact of specific
interventions will not always be possible for several reasons. For
example, many of the initiatives are expected to interact with each
other and contribute to the same outcomes. In addition, the impact of
changes in the HR system may be mitigated by context variables (e.g.,
the
[[Page 77409]]
job market, legislation, and internal support systems) or support
factors (e.g., training and automation support systems).
C. Evaluation
A modified quasi-experimental design will be used for the
evaluation of the STRL Personnel Demonstration Program. Because most of
the eligible laboratories are participating in the program, a 5 U.S.C.
comparison group will be compiled from the Civilian Personnel Data File
(CPDF). This comparison group will consist of workforce data from
Government-wide research organizations in civilian Federal agencies
with missions and job series matching those in the DoD laboratories.
This comparison group will be used primarily in the analysis of pay
banding costs and turnover rates.
D. Method of Data Collection
Data from several sources will be used in the evaluation.
Information from existing management information systems and from
personnel office records will be supplemented with perceptual survey
data from employees to assess the effectiveness and perception of the
project. The multiple sources of data collection will provide a more
complete picture as to how the interventions are working. The
information gathered from one source will serve to validate information
obtained through another source. In so doing, the confidence of overall
findings will be strengthened as the different collection methods
substantiate each other.
Both quantitative and qualitative data will be used when evaluating
outcomes. The following data will be collected:
(1) Workforce data;
(2) Personnel office data;
(3) Employee attitude surveys;
(4) Focus group data;
(5) Local site historian logs and implementation information;
(6) Customer satisfaction surveys; and
(7) Core measures of organizational performance.
The evaluation effort will consist of two phases, formative and
summative evaluation, covering at least five years to permit inter- and
intra-organizational estimates of effectiveness. The formative
evaluation phase will include baseline data collection and analysis,
implementation evaluation, and interim assessments. The formal reports
and interim assessments will provide information on the accuracy of
project operation, and current information on impact of the project on
veterans and protected groups, Merit System Principles, and Prohibited
Personnel Practices. The summative evaluation will focus on an overall
assessment of project outcomes after five years. The final report will
provide information on how well the HR system changes achieved the
desired goals, which interventions were most effective, and whether the
results can be generalized to other Federal installations.
IX. 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 CNR or designee will track personnel cost changes and recommend
adjustments if required to achieve the objective of cost discipline.
B. Implementation Costs
Current cost estimates associated with implementing the ONR
demonstration project are shown in Figure 11. These include automation
of systems such as the CCSDS, training, and project evaluation. The
automation and training costs are startup costs. Transition costs are
one-time costs. Costs for project evaluation will be ongoing for at
least five years.
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X. Automation Support
A. General
One of the major goals of the demonstration project is to
streamline the personnel processes to increase cost effectiveness.
Automation must play an integral role in achieving that goal. Without
the necessary automation to support the interventions proposed for the
demonstration project, optimal cost benefit cannot be realized. In
addition, adequate information to support decision-making must be
available to managers if line management is to assume greater authority
and responsibility for human resources management.
Automation to support the demonstration project is required at two
distinct levels. At the DON and DoD level, automation support [in the
form of changes to the DCPDS] is required to facilitate processing and
reporting of demonstration project personnel actions. At the ONR level,
automation support (in the form of local processing applications) is
required to facilitate management processes and decision-making.
B. Defense Civilian Personnel Data System (DCPDS)
ONR will continue to use the Defense Civilian Personnel Data System
(DCPDS) for the processing of personnel-related data. Efforts have been
made to minimize changes to DCPDS; and, therefore, the resources
required to make the necessary changes. The following is a compendium
of the proposed DCPDS modifications. The detailed specifications for
required changes to DCPDS will be provided in the System Change Request
(SCR), Form 804.
[[Page 77410]]
C. Requirements Document Writer (RDWriter)
The RDWriter application is a DoD system which will require
modification to accommodate the interventions in this demonstration
project. Specifically, there will be an RD that will replace the
position description in the basic application; career tracks and pay
bands will replace GS grades; and a CCS Assessment Summary that will
replace performance elements.
D. RIF Support System (RIFSS)
ONR expects to adopt an existing RIF support system or pursue
automation of the RIF process, as appropriate. Under the demonstration
project, RIF rules will be modified to increase the credit for
contributions and limit the rounds of competition. The AutoRIF
application, developed by DoD, could be used if it were modified to
accommodate these process changes.
E. Contribution-based Compensation System Data System (CCSDC)
This automated system is required as an internal control and as a
mechanism to equate contribution scores to appropriate rates of basic
pay. This system will allow pay pool managers to develop a spreadsheet
that will assist them in determining an appropriate merit increase or
contribution award or both based on the overall contribution score for
each individual. It will also be used as an internal control to ensure
that the permanent and nonpermanent money allotted to each pay pool is
not exceeded. It will further allow pay pool managers to visualize the
effects of giving large basic pay increases or awards to high
contributors, and the effects of withholding either the general or
merit increase or both of those who are low contributors, or in the
overcompensated range.
BILLING CODE 5001-06-P
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[[Page 77415]]
Appendix B: Required Waivers to Laws and Regulations
In adopting flexibilities without changes from other STRL
Demonstration Projects, ONR also adopts the associated waivers as
published in the Federal Register Notices of the applicable
organizations. Additional waivers, specified below, are required to
enact ONR's proposed modifications to adopted flexibilities.
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[[Page 77416]]
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[[Page 77417]]
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[[Page 77422]]
Appendix C: Definitions of Career Tracks and Pay Bands
ONR's pay band definitions may be modified as experience is
gained through their application in classification actions and
performance appraisal.
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[[Page 77423]]
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[[Page 77424]]
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[[Page 77425]]
Appendix D: Table of Occupational Series Within Career Tracks
Definitions for ONR's three career tracks are provided below
along with the breakdown of their respective series. Some series may
appear in two career tracks depending on the purpose of the
position. The breakdown of occupational series reflects only those
occupations that currently exist in ONR. Additional series may be
added as a result of changes in mission requirements or OPM-
recognized occupations. These additional series will be placed in
the appropriate career track consistent with the definitions
provided below.
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[[Page 77426]]
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[[Page 77427]]
Appendix E: Classification and CCS Elements
The CCS Summaries shown in this appendix are draft templates
intended to provide an understanding of the information covered by
the CCS process. Under the demonstration project, the summaries will
be generated by the CCSDS. They may be changed during the project to
require additional information, to make them easier to use, or for
other reasons.
The contents of the CCS elements, descriptors, discriminators,
and basic acceptable standards may similarly be changed during the
life of the demonstration project.
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[[Page 77428]]
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[[Page 77429]]
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[[Page 77430]]
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Appendix F: Computation of the IPS and the NPR
The ONR demonstration project will use an IPS which links basic
pay to contribution scores determined by the CCS process. The area
where basic pay and level of contribution are assumed to be properly
related is called the NPR. An employee whose CCS score and rate of
basic pay plot within the NPR is considered to be contributing at a
level consistent with pay. Employees whose pay plots below the NPR
for their assessed score are considered ``undercompensated,'' while
employees whose score and pay plot above the NPR are considered
``overcompensated.''
The purpose of this scoring and pay structure is to spread the
full range of basic pay provided by the GS, between GS-1, step 1,
and GS-15, step 10, into 80 intervals (scores and pay above those
points are related using the same parameters). Each interval is a
fixed percentage of the pay associated with the previous point.
For each possible contribution score available to employees, the
NPR spans a basic pay range of 12 percent. The lower boundary (or
``rail'') is established by fixing the basic pay equivalent to GS-1,
step 1, with a CCS score of zero. The upper boundary is fixed at the
basic pay equivalent to GS-15, step 10, with a CCS score of 80. The
distance between these upper and lower rails for a given overall
contribution score is then computed to ensure the range of 12
percent of basic pay is maintained for each available CCS score. The
middle rail of the NPR is computed as 6 percent above the lower
rail. This point is used in connection with certain limits
established for pay increases (see section IV.C.7).
From the above considerations, five variables, or inputs, were
identified. They are as follows:
1. Variable A: GS-1, step 1 (lowest salary)
2. Variable B: GS-15, step 10 (highest salary)
3. Variable C: Current C-values
4. Variable M: 6 percent (middle rail computation above the low
rail)
5. Variable H: 12 percent (high rail computation above low rail)
Other variables are as follows:
1. Variable N: Number of C-value steps at GS-15, step 10
2. Variable P (step increase): Salary value for each C-value
equal to 1 + percentage increase
From these variables, the following formula definitions were
developed:
Low rail = A*(P\-\C)
Mid rail = (1+M)*A*(P\-\C)
High rail = (1+H)*A*(P\-\C)
Where P = (B/(A*(1+H)))\-\(1/N)
As an example, a result of the above computation, using the 2010
GS Salary Table, P (step increase) equals 1.023664623. Attachment
(1) is a complete list of CCS pay band scores and basic pay ranges.
Attachment (2) contains graphic representations of these tables for
each career track. Once the C-values (0-80) are determined, the CCS
pay bands and scores are extended at the same percentage increments
as were computed for the step increase above. These C-values are
extended to encompass the equivalent of ES-4 effective January 2010.
In the example, SES Level ES-4 is equal to basic pay of $155,500 and
is encompassed by the C-value 89 ($142,734 to $159,862).
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[FR Doc. 2010-30876 Filed 12-9-10; 8:45 am]
BILLING CODE 5001-06-C