[Federal Register Volume 61, Number 95 (Wednesday, May 15, 1996)]
[Notices]
[Pages 24622-24642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12131]




[[Page 24621]]


_______________________________________________________________________

Part V





Office of Personnel Management





_______________________________________________________________________



Proposed Laboratory Personnel Management Demonstration Project; 
Department of the Air Force; Notice

Federal Register / Vol. 61, No. 95 / Wednesday, May 15, 1996 / 
Notices

[[Page 24622]]



OFFICE OF PERSONNEL MANAGEMENT


Proposed Laboratory Personnel Management Demonstration Project; 
Department of the Air Force

AGENCY: Office of Personnel Management.

ACTION: Notice of intent to implement demonstration project.

-----------------------------------------------------------------------

SUMMARY: Title VI of the Civil Service Reform Act, 5 U.S.C. 4703, 
authorizes the Office of Personnel Management (OPM) to conduct 
demonstration projects that experiment with new and different personnel 
management concepts to determine whether such changes in personnel 
policy or procedures would result in improved Federal personnel 
management.
    Public Law 103-337, October 5, 1994, permits the Department of 
Defense (DoD), with the approval of the OPM, to carry out personnel 
demonstration projects generally similar to the China Lake 
demonstration project at DoD Science and Technology (S&T) reinvention 
laboratories. The Air Force is proposing one demonstration project to 
cover its four S&T reinvention laboratories: Armstrong, Phillips, Rome, 
and Wright.

DATES: To be considered, written comments must be submitted on or 
before July 15, 1996; public hearings will be scheduled as follows:
    1. Tuesday, June 18, 1996, 10:00 a.m. in Rome, New York,
    2. Friday, June 21, 1996, 10:00 a.m. in Dayton, Ohio,
    3. Wednesday, June 26, 1996, 10:00 a.m. in San Antonio, Texas, and
    4. Thursday, June 27, 1996, 10:00 a.m. in Albuquerque, New Mexico. 
At the time of the hearings, interested persons or organizations may 
present their written or oral comments on the proposed demonstration 
project. The hearings will be informal. However, anyone wishing to 
testify should contact the person listed under FOR FURTHER INFORMATION 
CONTACT, and state the hearing location, so that OPM can plan the 
hearings and provide sufficient time for all interested persons and 
organizations to be heard. Priority will be given to those on the 
schedule, with others speaking in any remaining available time. Each 
speaker's presentation will be limited to ten minutes. Written comments 
may be submitted to supplement oral testimony during the public comment 
period.

ADDRESSES: Comments may be mailed to Fidelma A. Donahue, U.S. Office of 
Personnel Management, 1900 E Street, NW., Room 7460, Washington, DC 
20415; public hearings will be held at the following locations:
    1. Rome--Griffiss Business and Technology Park Theater, Building 
439, Kirtland Drive, Rome, New York,
    2. Dayton--Wright-Patterson Air Force Base Theater, 1239 Chestnut 
Street, Kittyhawk Area, Wright-Patterson Air Force Base, Ohio,
    3. San Antonio--Building 578, Room 218-221, 7909 Lindbergh Drive, 
Brooks Air Force Base, Texas,
    4. Albuquerque--Phillips Laboratory Conference Center, Building 
201, Conference Room 7a, 1750 Kirtland Drive, SE, Kirtland Air Force 
Base, New Mexico.

FOR FURTHER INFORMATION CONTACT: (1) On proposed demonstration project: 
Wendy B. Campbell, HQ AFMC/ST, 4375 Chidlaw Road, Suite 6, Wright-
Patterson Air Force Base, OH 45433-5006, 513-257-1910; (2) On proposed 
demonstration project and public hearings: Fidelma A. Donahue, U.S. 
Office of Personnel Management, 1900 E Street, NW, Room 7460, 
Washington, DC 20415, 202-606-1138.

SUPPLEMENTARY INFORMATION: Since 1966, at least 19 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. The proposed project involves simplified job 
classifications, pay banding, a contribution-based compensation system, 
streamlined hiring processes, and modified Reduction-in-Force (RIF) 
procedures.

    Dated: May 7, 1996.

Office of Personnel Management.
James B. King,
Director.

Table of Contents

I. Executive Summary
II. Introduction
    A. Purpose
    B. Problems with the Present System
    C. Changes Required/Expected Benefits
    D. Participating Organizations
    E. Participating Employees
    F. Project Design
III. Personnel System Changes
    A. Hiring and Appointment Authorities
    B. Broadbanding
    C. Classification
    D. Contribution-based Compensation System
    E. Contribution-based Reduction in Pay or Removal Actions
    F. Voluntary Emeritus Corps
    G. Revised Reduction-In-Force (RIF) Procedures
IV. Training
V. Conversion
VI. Project Duration
VII. Evaluation Plan
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulation

I. Executive Summary

    The project was designed by the Department of the Air Force, with 
participation of and review by the Department of Defense (DoD) and the 
Office of Personnel Management (OPM). The purpose of the project is to 
achieve the best workforce for the laboratory mission, adjust the 
workforce for change, and improve workforce quality. The project 
framework addresses all aspects of the human resources life cycle 
model. There are three major areas of change: (a) laboratory-controlled 
rapid hiring; (b) a contribution- based compensation system; and (c) a 
streamlined removal process.
    Initially, the project will cover only Scientists and Engineers 
(S&Es) assigned to the laboratories. A decision point has been 
programmed for the end of the second year of the demonstration to 
determine whether or not to expand coverage to other occupational 
groups within the laboratory. In the event of expansion to non-S&E 
employees, full approval of the expansion plan will be obtained by AF, 
DoD, and OPM.
    Cost neutrality is a basic requirement of the project. Extensive 
evaluation of the project will be performed by both the OPM and Air 
Force. The Air Force has programmed a decision point 5 years into the 
project for continuance, modification, or rejection of the 
demonstration initiatives.

II. Introduction

A. Purpose

    The purpose of the project is to demonstrate that the effectiveness 
of Department of Defense (DoD) laboratories can be enhanced by allowing 
greater managerial control over personnel functions and, at the same 
time, expanding the opportunities available to employees through a more 
responsive and flexible personnel system. The quality of DoD 
laboratories, their people, and products has been under intense 
scrutiny in recent years. The perceived deterioration of quality is 
believed to be due, in substantial part, to the erosion of control 
which line managers have over their human resources. This 
demonstration, in its entirety, attempts to provide managers, at the 
lowest practical level, the authority, control, and flexibility needed 
to achieve quality laboratories and quality products.

B. Problems With the Present System

    Air Force laboratory products contribute to the readiness of U.S. 
forces. To do this, laboratories must

[[Page 24623]]

acquire enthusiastic, innovative, highly educated scientists and 
engineers to meet their mission. They 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 
topnotch researchers. Today, industry laboratories can make an offer of 
employment and two counteroffers to a promising new hire before the 
government can get the first offer on the table. When filling vacancies 
internally, managers are forced into employee choices based not on 
research expertise, but on career program membership or special 
placement programs. Currently, jobs are described using a cumbersome 
classification system that is overly complex and specialized. This 
hampers a manager's ability to shape the workforce and match the 
positions while making best use of the employees. Managers must be 
given local control of positions and their classification to move both 
their employees and vacancies freely within their organization to other 
lines of research when business or technology demands. These issues 
work together to hamper supervisors in all areas of human resource 
management. Hiring restrictions and overly complex job classifications, 
coupled with poor tools for rewarding and motivating employees and a 
system that does not assist managers in removing poor performers builds 
stagnation in the workforce and wastes valuable time.

C. Changes Required/Expected Benefits

    This project is expected to demonstrate that a human resource 
system tailored to the mission and need of the laboratory will result 
in: (a) increased quality in the science and engineering workforce and 
the laboratory products they produce; (b) increased timeliness of key 
personnel processes; (c) trended workforce data that reveals increased 
retention of ``excellent contributors'' and separation rates of ``poor 
contributors''; and (d) increased customer satisfaction with the 
laboratory and its products by those Air Force and DoD customers they 
service.
    The Air Force demonstration program builds on the successful 
features of demonstration projects at China Lake and the National 
Institute of Standards and Technology (NIST). These demonstration 
projects have produced impressive statistics on the job satisfaction 
for their employees versus that for the federal workforce in general. 
Therefore, in addition to the expected benefits mentioned above, the AF 
demonstration expects to find more satisfied employees on many aspects 
of the demonstration including pay equity, classification accuracy, and 
fairness of performance management A full range of measures will be 
collected during project evaluation (section VII).

D. Participating Organizations

    The four Air Force Materiel Command (AFMC) laboratory directors/
commanders are located as follows:

Armstrong Laboratory--Brooks AFB, Texas
Phillips Laboratory--Kirtland AFB, New Mexico
Rome Laboratory--Rome, New York
Wright Laboratory--Wright-Patterson AFB, Ohio
    Scientists and Engineers (S&Es) assigned to the laboratories work 
at the locations shown in Table 1.

      Table 1.--S&E Duty Locations by Laboratory (as of 31 Dec. 95)     
------------------------------------------------------------------------
           Laboratory                     Duty location            S&Es 
------------------------------------------------------------------------
Armstrong......................  Aberdeen Proving Ground, MD....       3
                                 Brooks AFB, TX.................     167
                                 San Diego, CA..................       1
                                 Tyndall AFB, FL................      27
                                 Williams AFB, AZ...............      14
                                 Wright-Patterson AFB, OH.......      97
Phillips.......................  Edwards AFB, CA................     120
                                 Hanscom AFB, MA................     188
                                 Kirtland AFB, NM...............     246
                                 Malabar, FL....................       1
                                 Maui Island, HI................       1
                                 Sunspot, NM....................       5
Rome...........................  Rome, NY.......................     424
                                 Hanscom AFB, MA................      82
Wright.........................  Eglin AFB, FL..................     177
                                 Kelly AFB, TX..................       5
                                 McClellan AFB, CA..............      10
                                 Robins AFB, GA.................       4
                                 Tyndall AFB, FL................      12
                                 Wright-Patterson AFB, OH.......    1207
------------------------------------------------------------------------

E. Participating Employees

    In determining the scope of the demonstration project, primary 
considerations were given to the number and diversity of occupations 
within the laboratories and the need for adequate development and 
testing of the Contribution-based Compensation System (CCS). 
Additionally, current DoD human resource management design goals and 
priorities for the entire civilian workforce were considered. While the 
intent of this project is to provide the laboratory directors/
commanders with increased control and accountability for their total 
workforce, the decision was made to initially restrict development 
efforts to General Schedule (GS/GM) positions within the scientific and 
engineering specialties. Research Medical Officers (GS-0602) have been 
excluded from the project because of special pay provisions for their 
occupation which exceed the upper limits of the proposed broadbanding. 
The series to be included in the project are identified in Table 2.

Table 2.--Series Included in the Air Force Demonstration Proposal (as of
                               31 Dec. 95)                              
------------------------------------------------------------------------
                                                                        
-------------------------------------------------------------------------
0180  Psychology                                                        
0190  General Anthropology                                              
0401  General Biological Science                                        
0403  Microbiology                                                      
0413  Physiology                                                        
0414  Entomology                                                        
0415  Toxicology                                                        
0665  Speech Pathology & Audiology                                      
0701  Veterinary Medical Science                                        
0801  General Engineering                                               
0803  Safety Engineering                                                
0804  Fire Protection Engineering                                       
0806  Materials Engineering                                             
0807  Landscape Architecture                                            
0808  Architecture                                                      
0810  Civil Engineering                                                 
0819  Environmental Engineering                                         
0830  Mechanical Engineering                                            
0840  Nuclear Engineering                                               
0850  Electrical Engineering                                            
0854  Computer Engineering                                              
0855  Electronics Engineering                                           
0858  Biomedical Engineering                                            
0861  Aerospace Engineering                                             
0892  Ceramic Engineering                                               
0893  Chemical Engineering                                              
0896  Industrial Engineering                                            
1301  General Physical Science                                          
1306  Health Physics                                                    
1310  Physics                                                           
1313  Geophysics                                                        
1320  Chemistry                                                         
1321  Metallurgy                                                        
1330  Astronomy & Space Science                                         
1340  Meteorology                                                       
1370  Cartography                                                       
1515  Operations Research                                               
1520  Mathematics                                                       
1529  Mathematical Statistician                                         
1530  Statistician                                                      
1550  Computer Science                                                  
------------------------------------------------------------------------

    Other non-S&E positions may be phased in during the course of the 
project. A decision point for expanded employee coverage has been 
programmed for the end of the second year of the demonstration project. 
In the event of expansion to non-S&E employees, full approval of the 
expansion plan will be obtained by AF, DoD, and OPM.
    Current demographics and union representation for the S&E positions 
are shown in Table 3.

 Table 3.--S&E Demographics and Union Representation (as of 31 Dec. 95) 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
GS/GM 13 and Above.............................................     1965

[[Page 24624]]

                                                                        
GS-12 and below................................................      826
                                                                --------
    Total......................................................     2791
Occupational series............................................       41
Duty location..................................................       17
Veterans.......................................................  \1\ 19.
                                                                      78
Union Representation:                                                   
  NFFE:                                                                 
    Eglin AFB, Florida.........................................      145
    Hanscom AFB, Massachusetts.................................      233
    Tyndall AFB, Florida.......................................       33
  IFPTE:                                                                
    McClellan AFB, California..................................       9 
------------------------------------------------------------------------
\1\ Percent.                                                            


    Of the 2,791 scientists and engineers assigned to the laboratories, 
420 are represented by labor unions. Employees at Hanscom AFB, 
Massachusetts, are represented by the National Federation of Federal 
Employees (NFFE) Local 1384. Employees at Eglin AFB, Florida, are 
represented by NFFE Local 1940. Employees at Tyndall AFB, Florida, are 
represented by NFFE Local 1113. Employees at McClellan AFB, California, 
are represented by the International Federation of Professional and 
Technical Engineers (IFPTE) Local 330. Union representatives have been 
separately notified about the project. The Air Force is proceeding to 
fulfill its obligation to consult or negotiate with the unions, as 
appropriate, in accordance with 5 U.S.C. 4703(f).

F. Project Design

    In August 1994, a special action ``tiger team'' was formed by the 
Director of Science and Technology for Air Force Materiel Command in 
response to the proposed DoD legislation allowing reinvention 
laboratories to conduct personnel demonstrations. The team was 
chartered to take full opportunity of this legislation and try to 
develop solutions that would solve many of the laboratory personnel 
issues that have been so prevalent and well documented. The team 
composition included current managers from the four Air Force 
laboratories, retired and current laboratory directors, and subject 
matter experts from civilian personnel and manpower. This team 
developed 27 initiatives which together represented sweeping changes in 
the entire spectrum of human resource management for the laboratories. 
Several initiatives were designed to assist the laboratories in hiring 
and placing the best people to fulfill mission requirements. Others 
focused on developing, motivating, and equitably compensating employees 
based on their contribution to the mission. Initiatives to effectively 
manage workforce turnover and maintain organizational excellence were 
also developed. These 27 initiatives were endorsed and accepted in 
total by the laboratory directors/commanders.
    After the authorizing legislation passed, a project office with 
four employees was established in September 1994. Under the guidance of 
the Director of Science and Technology, the office was charged with 
further developing the demonstration concept and bringing it to 
implementation. As a first task, the project office asked the four 
laboratories and the civilian personnel offices that service them for 
volunteers to staff six Integrated Product Teams (IPTs). Sixty civilian 
managers and employees from all laboratories in most geographic 
locations and from appropriate base level personnel offices came 
together and have worked for 9 months to develop the detailed concept 
and implementation for each initiative.
    After thorough study, the original 27 initiatives were reduced to 
20. Seven of the original initiatives appear herein. The remainder are 
under either DoD or Air Force regulation, and waivers are being sought 
at those levels.

III. Personnel System Changes

A. Hiring and Appointment Authorities

1. Hiring Authority
    A candidate's basic eligibility will be determined using OPM's 
``Qualification Standards Handbook For General Schedule Positions.'' 
Broadband level I minimum eligibility requirements will be the GS-07 
qualifications. Broadband level II minimum eligibility requirements 
will be the GS-12 qualifications. Broadband levels III and IV are 
single-grade broadband levels and will mirror the minimum 
qualifications for the respective General Schedule grades of 14 and 15. 
Selective placement factors may be established in accordance with the 
OPM Qualification Handbook when judged to be critical to successful job 
performance. These factors will be communicated to all candidates for 
particular position vacancies and must be met for basic eligibility.
    The demonstration project will include an Advanced Degree 
Employment Program which provides a vehicle for rapid employment of 
individuals with master's and/or doctoral degrees in science and 
engineering fields into positions for which there is a positive 
education requirement in those fields. The Air Force will identify some 
measure of academic excellence that candidates with advanced degrees 
must have attained to be eligible for this employment program. The 
project will also include an Outstanding Scholar in Science and 
Engineering employment program which will allow noncompetitive 
appointment at the equivalent of the GS-7 level. This will allow rapid 
hiring of those who receive an undergraduate degree in a qualifying 
scientific or engineering curriculum with an overall grade point 
average of 3.5 or better on a 4.0 scale, or who are in the top 10% of 
their graduating class. This program is patterned after the Outstanding 
Scholar authority for appointing to non-S&E entry-level professional 
and administrative occupations. The Outstanding Scholar authority was 
provided by a court- approved consent decree in Luevano v. Newman.
    These hiring authorities are necessary because S&E positions in Air 
Force laboratories will continue to be shortage occupations as they are 
involved in highly specialized areas of technology that require job-
specific skills in short supply. The Advanced Degree Employment Program 
applies to both initial appointment and in-service placement actions. 
The program is used to determine eligibility for applicable broadband 
level I and II positions of persons who have completed (or expect to 
complete within 9 months) all the requirements for a master's or 
doctoral degree from an accredited college or university in a 
curriculum that is qualifying for the position to be filled. The use of 
the Superior Academic Achievement and Advanced Degree Employment 
Programs will allow the selecting supervisor to accomplish Equal 
Employment Opportunity objectives while ensuring a high quality 
workforce.
    In the proposed system, as with the current system, the individual 
manager will decide whether to fill a position from among internal 
candidates or to recruit from outside the Air Force. If the decision is 
made to recruit new appointments from outside the Federal government, 
candidates will be evaluated using the following method.
    The selecting supervisor will develop written job-related ranking 
criteria. Candidates who meet the basic eligibility will be separated 
into two groups based on the appropriateness of their experience or 
education relating to the position being filled. Candidates with 
superior qualifications will be placed in Group A, all others will be 
placed in Group B. Within each group, veterans preference will be 
applied by placing all preference eligibles ahead of non-preference 
eligibles. Numerical scores will not be assigned. Selection

[[Page 24625]]

will be made from among candidates in Group A. Candidates in Group B 
may only be selected when there are no candidates in Group A.
    Preference in employment will be given to qualified applicants who 
meet one of the veterans preference eligibility criteria in 5 U.S.C. 
2108, provided they are equally qualified for the vacant position.
2. Appointment Authority
    Under the demonstration project, there will be two appointment 
options: regular career and contingent. The career-conditional 
appointment authority will not be used under the demonstration project. 
Regular career appointments will continue to use existing authorities 
and entitlements, and employees will serve a probationary period. 
Contingent appointments will use the existing term appointment 
authority which includes a limit of 4 years and most benefits. This 
contingent appointment is designed to attract high quality new 
scientists and post-doctoral students who may wish to choose an Air 
Force laboratory experience for a few years, accruing some portable 
retirement and receiving benefits during this tenure.
3. Extended Probationary Period
    A new employee needs to demonstrate adequate contribution during 
all cycles of a research effort for a laboratory manager to render a 
thorough evaluation. The current 1 year probationary period will be 
extended to 3 years for all newly hired regular career employees. The 
purpose of extending the probationary period is to allow supervisors an 
adequate period of time to fully evaluate an employee's contribution 
and conduct.
    Aside from extending the time period, all other features of the 
current probationary period are retained including the potential to 
remove an employee without providing the full substantive and 
procedural rights afforded a non-probationary employee. Any employee 
appointed prior to the implementation date will not be affected. The 3 
year probation will apply to non-status hires. That is, it will apply 
only to new hires or those who do not have reemployment or 
reinstatement rights. Air Force Palace Knight and Senior Knight 
appointments must complete 3 years of directly supervised employment in 
the laboratory to complete the probationary period (i.e., time spent at 
school does not count towards fulfilling the probationary period 
requirement).
    Probationary employees will be terminated when the employee fails 
to demonstrate proper conduct, technical competency, and/or adequate 
contribution for continued employment. When a laboratory decides to 
terminate an employee serving a probationary period because their work 
contribution or conduct during this period fails to demonstrate their 
fitness or qualifications for continued employment, it shall terminate 
their services by written notification of the reasons for separation 
and the effective date of the action. The information in the notice as 
to why the employee is being terminated shall, as a minimum, consist of 
the laboratory's conclusions as to the inadequacies of their 
contribution or conduct.

B. Broadbanding

    The proposed broadbanding system will replace the current General 
Schedule (GS) structure. Currently, the 15 grades of the General 
Schedule are used to classify positions and, therefore, to set pay. The 
General Schedule covers all white collar work--administrative, 
technical, clerical, and professional. This system will initially cover 
only scientific and engineering (S&E) positions in the Air Force 
laboratories. Scientific and Professional (ST) and Senior Executive 
Service (SES) employees are not covered.
    The broadband levels are designed to enhance pay progression and to 
allow for more competitive recruitment of quality candidates at 
differing rates within the appropriate broadband level(s). Competitive 
promotions will be less frequent and movement through the broadband 
levels will be a more seamless process than today's procedure. Like the 
previous broadband systems used at China Lake and the National 
Institute of Science and Technology (NIST), advancement within the 
system is contingent on merit.
    There will be four broadband levels in the proposed system, labeled 
I, II, III, and IV. They will include the current grades of GS-7 
through GS/GM-15. These are the grades in which the S&E employees in 
the Air Force laboratories are found. Broadband level I includes the 
current GS-7 through GS-11; level II, GS-12 and GS/GM-13; level III, 
GS/GM-14; and level IV, GS/GM-15. Comparison to the GS grades was 
useful in setting the upper and lower dollar limits of the broadband 
levels; however, once the employees are moved into the demonstration 
project, General Schedule grades will no longer apply.
    The titles associated with each broadband level are as follows:

Level/Title(s)

I  Associate--(Electronics Engineer, Chemist, etc.)
II  Title of Appropriate Series (Physicist, Biologist, etc.) or 
Supervisory--(Nuclear Engineer, etc.)
III  Senior--(Mathematician, Computer Scientist, etc.) or Supervisory 
Senior--(Physical Scientist, etc.)
IV  Principal--(Microbiologist, Psychologist, etc.) or Supervisory 
Principal--(Aerospace Engineer, etc.)

    Generally, employees will be converted into the broadband level 
which includes their current GS/GM grade. Each employee is assured an 
initial place in the system without loss of pay. As the rates of the 
General Schedule are increased due to general pay increases, the 
minimum and maximum rates of the four broadband levels will also move 
up. Individual employees receive pay increases based on their 
assessments under the Contribution-based Compensation System. Since pay 
progression through the levels depends on merit, there will be no 
scheduled Within-Grade Increases (WGIs) for employees once the 
broadbanding system is in place. Special Salary Rates will no longer be 
applicable to demonstration project employees. All employees will be 
eligible for the future locality pay increases of their geographical 
area.
    Newly hired personnel entering the system will be employed at a 
level consistent with the expected contribution of the position and 
individual basic qualifications for the level, as determined by rating 
against qualification standards. Salaries of individual candidates will 
be based on academic qualifications and experience. In addition to the 
flexibilities available under the broadbanding system, the authorities 
for retention, recruitment, and relocation payments granted under the 
Federal Employees' Pay Comparability Act of 1990 (FEPCA) can also be 
used.
    Employees who leave the Air Force broadbanding system to accept 
federal employment in the traditional Civil Service system will have 
their pay set by the gaining activity. Where a broadband level includes 
a single GS grade, the employees are considered to have attained the 
grade commensurate with the broadband level they are leaving. Where 
broadband levels include multiple grades, employees are considered to 
have progressed to the next higher grade within that broadband level 
when they have been in the level for 1 year and their salary equals or 
exceeds the minimum salary of the higher grade. For employees who are

[[Page 24626]]

entitled to a special rate upon return to the General Schedule, the 
demonstration project locality rate must equal or exceed the minimum 
special rate of the higher grade. Refer to section V for information 
concerning conversion to and from the demonstration project.
    The use of broadbanding provides a stronger link between pay and 
contribution to the mission of the laboratory. It is simpler, less time 
consuming, and less costly to maintain. In addition, such a system is 
more easily understood by managers and employees, is easily delegated 
to managers, coincides with recognized career paths, and complements 
the other personnel management aspects of the demonstration project.

C. Classification

1. Occupational Series
    The present General Schedule classification system has 434 
occupational series which are divided into 22 groups. The Air Force 
laboratories currently have scientific and engineering (S&E) positions 
in 41 series which fall into 7 groups. The occupational series, which 
frequently provide well-recognized disciplines with which employees 
wish to be identified, will be maintained. This will facilitate 
movement of personnel into and out of the proposed demonstration. Other 
scientific and engineering series may be added to the project as the 
need for new professional skills emerges within the laboratory 
environment.
2. Classification Standards
    The present system of OPM classification standards will be used for 
the identification of proper series and occupational titles of 
positions within the demonstration project. References in the position 
classification standards to grade criteria will not be used as part of 
the demonstration project. Rather, the CCS broadband level descriptors 
will be used for the purpose of broadband level determination. Under 
the proposed system, each broadband level is represented by a set of 
level descriptors. Based on a yearly assessment of the employee's level 
of contribution to the organization in relation to these descriptors, 
the broadband level and salary are reviewed and appropriately adjusted. 
This eliminates the need for the use of grading criteria in the OPM 
classification standards.
    The broadband level descriptors are:

Level I Descriptors

    Technical Problem Solving: Conducts in-house technical 
activities and/or may provide contract technical direction with 
guidance from supervisor or higher level scientist or engineer. 
Works closely with peers in collectively solving problems of 
moderate complexity, involving limited variables, precedents 
established in related projects, and minor adaptations to well-
established methods and techniques. Recognized within own 
organization for technical ability in assigned areas.
    Communications/Reporting: Provides data and written analysis for 
input to scientific papers, journal articles, and reports and/or 
assists in preparing contractual documents and/or reviews technical 
reports; work is acknowledged in team publications. Effectively 
presents technical results of own studies, tasks, or contract 
results. Material is presented either orally or in writing, within 
own organization or to limited external contacts. Conducts these 
activities under guidance of supervisor and/or team leader.
    Corporate Resource Management: May coordinate elements of in-
house work units or assist in managing a scientific or support 
contract. Uses personal and assigned resources efficiently under 
guidance of supervisor or team leader. As an understanding of 
organizational activities, policies, and objectives is gained, 
participates in team planning.
    Technology Transition/Technology Transfer: Participates as a 
team member in demonstrating technology and in interacting with 
internal/external customers. With guidance, contributes to technical 
content of partnerships for technology transition and/or transfer 
(Advanced Technology Demonstrations, Memorandums of Understanding, 
Joint Director of Labs/Project Reliance, Cooperative Research and 
Development Agreements, and other dual-use vehicles). Seeks out and 
uses relevant outside technologies in assigned projects.
    R&D Business Development: As a team member communicates with 
customers to understand customer requirements. By maintaining 
currency in area of expertise, contributes as a team member to new 
program development. May technically participate in writing 
proposals to establish new business opportunities.
    Cooperation and Supervision: Contributes to all aspects of 
teams' responsibilities. May technically guide or mentor less 
experienced personnel on limited aspects of scientific or 
engineering efforts. Receives close guidance from supervisor and/or 
higher level scientist or engineer. Performs duties in a 
professional, responsive, and cooperative manner in accordance with 
established policies and procedures.

Level II Descriptors

    Technical Problem Solving: Conducts in-house technical 
activities and/or provides contract technical direction to programs 
of moderate size and complexity with minimal oversight. Contributes 
technical ideas and conceives and defines solutions to technical 
problems of moderate size or complexity. Recognized internally and 
externally by peers, both in governmental and industrial activities, 
for technical expertise.
    Communications/Reporting: Writes or is major contributing author 
on scientific papers, journal articles, or reports and/or prepares 
contract documents and reviews reports pertaining to area of 
technical expertise. May assist in filing innovation disclosures, 
inventions, and patents. Effectively prepares and presents own and/
or team technical results. Communicates work to varied laboratory, 
scientific, industry, and other government audiences. May prepare 
and present presentations on critical program for use at higher 
levels with some guidance.
    Corporate Resource Management: Manages all aspects of 
technically complex in-house work units or one or more contractual 
efforts in assigned program area. Effectively plans and controls all 
assigned resources. Makes and meets time and budget estimates on 
assigned projects or takes appropriate corrective action. 
Participates in organizational or strategic planning at team level, 
taking cognizance of complementary projects elsewhere to ensure 
optimal use of resources.
    Technology Transition/Technology Transfer: Develops 
demonstrations and interacts independently with internal/external 
customers. As a team member, implements partnerships for transition 
and/or transfer of technology (Advanced Technology Demonstrations, 
Memorandums of Understanding, Joint Director of Labs/Project 
Reliance, Cooperative Research and Development Agreements, and other 
dual-use vehicles). Evaluates and incorporates appropriate outside 
technology in individual or team activities.
    R&D Business Development: Initiates meetings and interactions 
with customers to understand customer needs. Generates key ideas for 
program development based on understanding of technology and 
customer needs. Demonstrates expertise to internal/external 
customers. Contributes technically to proposal preparation and 
marketing to establish new business opportunities.
    Cooperation and Supervision: Contributes as a technical task or 
team leader; is sought out for expertise by peers; and participates 
in mentoring of team members. May guide on a daily basis, technical, 
programmatic, and administrative efforts of individuals or team 
members. May recommend selection or may select staff and/or team 
members. Assists in the development and training of individuals or 
team members. May participate in position and performance 
management. Receives general guidance in terms of policies, program 
objectives, and/or funding issues from supervisor and/or higher 
level scientist or engineer. Discusses novel concepts and 
significant departures from previous practices with supervisor or 
team leader.

Level III Descriptors

    Technical Problem Solving: Conducts and/or directs technical 
activities and/or assists higher levels on challenging and 
innovative projects or technical program development with only broad 
guidance. Develops solutions to diverse, complex problems involving 
various functional areas and disciplines. Conducts and/or directs 
large programs in technically complex areas. Recognized within the 
laboratory, service, DoD, industry, and academia for technical 
expertise and has established professional reputation in national 
technical community.

[[Page 24627]]

    Communications/Reporting: Lead author on major scientific 
papers, refereed journal articles, and reports and/or prepares and 
reviews contract documents and reviews reports of others pertaining 
to overall program. May document or file inventions, patents, and 
innovation disclosures relevant to subject area. Prepares and 
presents technical and/or financial and programmatic briefings and 
documentation for team, organization, or technical area. Prepares 
and delivers presentations for major projects and technology areas 
to scientific and/or government audiences. Reviews oral presentation 
of others. Communication and reporting functions conducted with 
minimal higher level oversight.
    Corporate Resource Management: Defines program strategy and 
resource allocations for in- house and/or contractual programs. For 
assigned technical areas, conducts program planning, coordination, 
and/or documentation (master plans, roadmaps, Joint Director of Lab/
Reliance, etc.). Advocates to laboratory and/or higher headquarters 
on budgetary and programmatic issues for resources. Based on 
knowledge of analytical and evaluative methods and techniques, 
participates in strategic planning at branch and/or division level. 
Considers and consults on technical programs of other organizations 
working in the field to ensure optimal use of resources.
    Technology Transition/Technology Transfer: Develops customer 
base and expands opportunities for technology transition and 
transfer. Leads or serves as key technical member of teams 
implementing partnerships for transition or transfer of technology 
(Advanced Technology Demonstrations, Memorandums of Understanding, 
Joint Director of Labs/Project Reliance, Cooperative Research and 
Development Agreements, and other dual-use vehicles). Ensures 
incorporation of outside technology within laboratory programs.
    R&D Business Development: Works to establish customer alliances 
and translates customer needs to programs in a particular technical 
area. Develops feasible research strategies and/or business 
strategies for new technical activities. Seeks joint program 
coalitions with other agencies and funding opportunities from 
outside organizations. Pursues near-term business opportunities 
through proposals.
    Cooperation and Supervision: Is sought out for consultation and 
mentors team members. Guides the research, technical and/or 
programmatic, and administrative efforts of individuals or teams 
with accountability for focus and quality. Recommends selection or 
selects staff and/or team members. Supports development and training 
of subordinates and/or team members. Participates in position and 
performance management. Receives only broad policy and 
administrative guidance from supervisor, such as initiation and 
curtailment of programs.

Level IV Descriptors

    Technical Problem Solving: Independently defines, leads, and 
manages the most challenging and innovative complex technical 
activities/programs consistent with general guidance or 
independently directs overall R&D program. Conceives and develops 
creative solutions to the most complex problems requiring highly 
specialized areas of technical expertise. Recognized within the 
laboratory, service, DoD, and other agencies for broad technical 
area expertise and has established professional reputation in the 
national and international technical community.
    Communications/Reporting: Lead or sole author on scientific 
papers, refereed journal articles, reports, or review articles which 
are recognized as major advances or resolutions in the technical 
area and/or reviews and approves reporting of all technical products 
of mission area. May exploit innovations which normally lead to 
inventions, disclosures, and patents. Prepares and presents 
technical and/or financial and programmatic briefings and 
documentation for breadth of programs at or above own level. As 
subject matter expert, prepares and delivers invited or contributed 
presentations, papers at national or international conferences on 
technical area, or gives policy level briefings. Singularly 
responsible for overall quality and timeliness of technical/
scientific/ programmatic reports and presentations of group and 
self.
    Corporate Resource Management: Defines technology area strategy 
and resource allocations for in-house and contractual programs. For 
multiple technical areas, conducts overall program planning and 
coordination, and/or program documentation (master plans, roadmaps, 
Joint Director of Labs/Project Reliance, etc.). Advocates to 
command, service, and agency levels on budgetary and programmatic 
issues for resources. Utilizing advanced analytical and evaluative 
methods and techniques, leads strategic planning and prioritization 
processes. Develops strategy to leverage resources from other 
agencies and ensures equitable distribution and appropriate use of 
internal resources.
    Technology Transition/Technology Transfer: Organizes, leads, and 
markets overall technology transition and transfer activities for 
organization at senior management levels. Leads in formulation and 
oversight of Advanced Technology Demonstrations, Memorandums of 
Understanding, Joint Director of Labs/Project Reliance, Cooperative 
Research and Development Agreements, and other dual-use vehicles. 
Creates an environment that encourages widespread exploitation of 
both national and international technologies.
    R&D Business Development: Works with the senior management level 
to stimulate development of customer alliances for several technical 
areas. Generates strategic research and/or business objectives for 
core technical areas. Recognizes warfighting trends, relates 
business opportunities, and convinces laboratory management to 
develop and/or acquire expertise and commit funds. Secures business 
opportunities supporting long-term mission relevancy through 
targeted proposals and processes.
    Cooperation and Supervision: Establishes team charters and 
develops future team leaders and supervisors. Leads and manages all 
aspects of subordinates' or team members' efforts with complete 
accountability for mission and programmatic success. Recommends 
selection or selects staff, team leaders, and team members; fosters 
development and training of supervisory and non-supervisory 
individuals. Directs or recommends position and performance 
management. Works within the framework of agency policies, mission 
objectives, and time and funding limitations.
3. Classification Authority
    Laboratory directors/commanders will have delegated classification 
authority and may, in turn, redelegate this authority no lower than two 
management levels below the director/commander. Classification 
approval, however, must be exercised at least one management level 
above the first level supervisor of the employee or position under 
review. Supervisors at the lower levels will provide classification 
recommendations. Personnel specialists will provide on-going 
consultation and guidance to managers and supervisors throughout the 
classification process.
4. Statement of Duties and Experience (SDE)
    Under the proposed classification system, the automated Statement 
of Duties and Experience (SDE) will replace the current AF Form 1378, 
Civilian Personnel Position Description. The SDE will include a 
description of job-specific information, reference the CCS broadband 
level descriptors for the assigned broadband level, and provide data 
element information pertinent to the job. Laboratory supervisors will 
follow a computer assisted process to produce the SDE. The objectives 
in developing the new SDE are to: (a) simplify the descriptions and the 
preparation process through automation, (b) make the SDE specific to 
the employee, and (c) make the SDE a more useful tool for other 
functions of personnel management, e.g., recruiting, reduction-in-
force, assessment of contribution, and employee development.
5. Skill Codes
    The Air Force uses skill code sets within the Defense Civilian 
Personnel Data System (DCPDS) as a means to reflect duties of current 
positions and employees' previous experiences. Each code represents a 
specialization within the occupation. Specializations are those 
described in classification or qualification standards and those agreed 
upon by functional managers and personnel specialists to be important 
to staffing patterns and career paths. These codes are used to refer 
candidates for employment with the Air Force, placement of current 
employees into

[[Page 24628]]

other positions, and selection for training under competitive 
procedures. To facilitate the movement of personnel into and out of the 
demonstration project, the current Air Force system of skills coding 
will continue to be used. Laboratory supervisors will select 
appropriate skill code sets to describe the work of each employee 
through the automated SDE process.
6. Classification Process
    The SDE is accomplished by completion of the following steps 
utilizing an automated system:
    (a) The supervisor enters, by typing free-form, the organizational 
location, SDE number, and the employee's name. From the menu, the 
supervisor selects the appropriate occupational series and title, the 
level descriptors corresponding to the broadband level that is most 
commensurate with an employee's anticipated level of contribution, the 
CCS job category, the functional classification code, and the 
supervisory level. The supervisor then fills in the blanks in a 
standard statement relating to the level of certification and 
functional area for the Acquisition Professional Development Program 
(APDP).
    (b) The supervisor creates a brief description of job-specific 
information by typing free-form at the appropriate point. From a menu, 
the supervisor will choose statements pertaining to physical 
requirements; knowledges, skills, and abilities required to perform the 
work; and special licenses or certifications needed (other than APDP). 
Based on the supervisory level code selected above, the system will 
produce mandatory statements pertaining to affirmative employment, 
safety, and security programs. The system will also produce a statement 
pertaining to positive education requirements, or their equivalencies, 
based on the occupational series selected.
    (c) The supervisor selects up to three skill code sets from the 
listing provided which are appropriate to the job. From the menu, the 
supervisor also selects the position sensitivity; Fair Labor Standards 
Act (FLSA) status; drug testing requirements; emergency essential and 
key position information; the career program to which the position 
belongs; the bargaining unit status code; and the contribution factor 
weights which apply to the job category previously selected. This 
information, along with the supervisory level and the competitive level 
code, constitutes the SDE addendum. These data elements will be 
maintained as a separate page of the SDE (i.e., an addendum) as this 
information can change frequently. By maintaining this information as 
an addendum, the need to create and classify a new SDE each time one of 
these elements must be updated is alleviated.
    (d) The supervisor accomplishes the SDE with a recommended 
classification, then signs and dates the document. The SDE is sent to 
the individual in the organization with delegated classification 
authority for approval and classification, which is indicated by that 
person signing and dating the SDE.
    The computer assisted system will incorporate definitions for the 
CCS job categories, supervisory levels, all S&E occupational series, as 
well as their corresponding skill code sets and the functional 
classification codes. The functional classification codes are those 
currently found in the OPM ``Introduction to the Classification 
Standards'' which define certain kinds of activities, e.g., research, 
development, test and evaluation, etc. The FLSA status selection must 
be in accordance with OPM guidance. Throughout the above process, 
manpower analysts and personnel specialists will be available to advise 
laboratory management.

D. Contribution-based Compensation System

1. Overview
    The purpose of the Contribution-based Compensation System (CCS) is 
to provide an effective, efficient, and flexible method for assessing, 
compensating, and managing the laboratory S&E workforce. It is 
essential for the development of a highly productive workforce and to 
provide management, at the lowest practical level, the authority, 
control, and flexibility needed to achieve quality laboratories and 
quality products. CCS allows for more employee involvement in the 
assessment process, increases communication between supervisor and 
employee, promotes a clear accountability of contribution, facilitates 
employee career progression, provides an understandable basis for 
salary changes, and delinks awards from the annual assessment process. 
Funds previously allocated for performance-based awards will be 
reserved for distribution under a separate laboratory awards program.
    CCS is a contribution-based assessment system that goes beyond a 
performance-based rating system. That is, it measures the employee's 
contribution to the organization rather than how well the employee 
performed a job as defined by a performance plan; one which may 
represent a lower level of responsibility and expectation based on the 
employee's previous performance. CCS promotes proactive salary 
adjustment decisions to be made on the basis of an individual's overall 
contribution to the organization.
    Contribution is measured by factors, each of which is relevant to 
the success of an Research and Development (R&D) laboratory. Six 
factors have been developed for evaluating the yearly contribution of 
S&E personnel covered by this initiative: Technical Problem Solving, 
Communications/Reporting, Corporate Resource Management, Technology 
Transition/Technology Transfer, R&D Business Development, and 
Cooperation and Supervision.
    Each factor has four levels of increasing contribution 
corresponding to the four broadband levels. These factors use the same 
descriptors as those presented under classification (section III C). 
Under classification, for example, only level I descriptors are applied 
for each of the six factors for a level I employee. For the CCS 
assessment process, the six factors are presented with all four levels 
of contribution to better assist supervisor assessment. Therefore, for 
classification, the factors are sorted first by level and then by 
factor as shown in section III C 2. For the CCS assessment process, the 
level descriptors are sorted first by factor and then by level as shown 
below.

----------------------------------------------------------------------------------------------------------------
         Level                                 Descriptor                                 Key elements          
----------------------------------------------------------------------------------------------------------------
                                       FACTOR 1: TECHNICAL PROBLEM SOLVING                                      
----------------------------------------------------------------------------------------------------------------
I......................  Conducts in-house technical activities and/or may      Scope of Project/Level of       
                          provide contract technical direction with guidance     Impact.                        
                          from supervisor or higher level scientist or                                          
                          engineer.                                                                             
                         Works closely with peers in collectively solving       Technical Complexity/Creativity.
                          problems of moderate complexity, involving limited                                    
                          variables, precedents established in related                                          
                          projects, and minor adaptations to well-established                                   
                          methods and techniques.                                                               
                         Recognized within own organization for technical       Recognition                     
                          ability in assigned areas.                                                            

[[Page 24629]]

                                                                                                                
II.....................  Conducts in-house technical activities and/or          Scope of Project/Level of       
                          provides contract technical direction to programs of   Impact.                        
                          moderate size and complexity with minimal oversight.                                  
                         Contributes technical ideas and conceives and defines  Technical Complexity/Creativity.
                          solutions to technical problems of moderate size or                                   
                          complexity.                                                                           
                         Recognized internally and externally by peers, both    Recognition                     
                          in governmental and industrial activities, for                                        
                          technical expertise.                                                                  
III....................  Conducts and/or directs technical activities and/or    Scope of Project/Level of       
                          assists higher levels on challenging and innovative    Impact.                        
                          projects or technical program development with only                                   
                          broad guidance.                                                                       
                         Develops solutions to diverse, complex problems        Technical Complexity/Creativity.
                          involving various functional areas and disciplines.                                   
                          Conducts and/or directs large programs in                                             
                          technically complex areas.                                                            
                         Recognized within the laboratory, service, DoD,        Recognition                     
                          industry, and academia for technical expertise and                                    
                          has established professional reputation in national                                   
                          technical community.                                                                  
IV.....................  Independently defines, leads, and manages the most     Scope of Project/Level of       
                          challenging and innovative complex technical           Impact.                        
                          activities/programs consistent with general guidance                                  
                          or independently directs overall R&D program.                                         
                         Conceives and develops creative solutions to the most  Technical Complexity/Creativity.
                          complex problems requiring highly specialized areas                                   
                          of technical expertise.                                                               
                         Recognized within the laboratory, service, DoD, and    Recognition                     
                          other agencies for broad technical area expertise                                     
                          and has established professional reputation in the                                    
                          national and international technical community.                                       
----------------------------------------------------------------------------------------------------------------
                                       FACTOR 2: COMMUNICATIONS/REPORTING                                       
----------------------------------------------------------------------------------------------------------------
I......................  Provides data and written analysis for input to        Written and Oral.               
                          scientific papers, journal articles, and reports and/                                 
                          or assists in preparing contractural documents and/                                   
                          or reviews technical reports; work is acknowledged                                    
                          in team publications.                                                                 
                         Effectively presents technical results of own          Breadth of Responsibility.      
                          studies, tasks, or contract results.                                                  
                         Material is presented either orally or in writing,     Level/Diversity of Audiences.   
                          within own organization or to limited external                                        
                          contacts.                                                                             
                         Conducts these activities under guidance of            Oversight Required.             
                          supervisor and/or team leader.                                                        
II.....................  Writes or is major contributing author on scientific   Written and Oral.               
                          papers, journal articles, or reports and/or prepares                                  
                          contract documents and reviews reports pertaining to                                  
                          area of technical expertise. May assist in filing                                     
                          innovation disclosures, inventions, and patents.                                      
                         Effectively prepares and presents own and/or team      Breadth of Responsibility.      
                          technical results.                                                                    
                         Communicates work to varied laboratory, scientific,    Level/Diversity of Audiences.   
                          industry, and other government audiences.                                             
                         May prepare and present presentations on critical      Oversight Required.             
                          program for use at higher levels with some guidance.                                  
III....................  Lead author on major scientific papers, refereed       Written and Oral.               
                          journal articles, and reports and/or prepares and                                     
                          reviews contract documents and reviews reports of                                     
                          others pertaining to overall program. May document                                    
                          or file inventions, patents, and innovation                                           
                          disclosures relevant to subject area.                                                 
                         Prepares and presents technical and/or financial and   Breadth of Responsibility.      
                          programmatic briefings and documentation for team,                                    
                          organization, or technical area.                                                      
                         Prepares and delivers presentations for major          Level/Diversity of Audiences.   
                          projects and technology areas to scientific and/or                                    
                          government audiences.                                                                 
                         Reviews oral presentation of others. Communication     Oversight Required.             
                          and reporting functions conducted with minimal                                        
                          higher level oversight.                                                               
IV.....................  Lead or sole author on scientific papers, refereed     Written and Oral.               
                          journal articles, or review articles which are                                        
                          recognized as major advances or resolutions in the                                    
                          technical area and/or reviews and approves reporting                                  
                          of all technical products of mission area. May                                        
                          exploit innovations which normally lead to                                            
                          inventions, disclosures, and patents.                                                 
                         Prepares and presents technical and/or financial and   Breadth of Responsibility.      
                          programmatic briefings and documentation for breadth                                  
                          of programs at or above own level.                                                    
                         As subject matter expert, prepares and delivers        Level/Diversity of Audiences.   
                          invited or contributed presentations, papers at                                       
                          national or international conferences on technical                                    
                          area, or gives policy level briefings.                                                
                         Singularly responsible for overall quality and         Oversight Required.             
                          timeliness of technical/scientific/programmatic                                       
                          reports and presentations of group and self.                                          
----------------------------------------------------------------------------------------------------------------
                                     FACTOR 3: CORPORATE RESOURCE MANAGEMENT                                    
----------------------------------------------------------------------------------------------------------------
I......................  May coordinate elements of in-house work units or      In-House/Contract Managing.     
                          assist in managing a scientific or support contract.                                  
                         Uses personal and assigned resources efficiently       Size & Complexity.              
                          under guidance of supervisor or team leader.                                          
                         As an understanding of organizational activities,      Make/Buy/Rely.                  
                          policies, and objectives is gained, participates in                                   
                          team planning.                                                                        
II.....................  Manages all aspects of technically complex in-house    In-House/Contract Managing.     
                          work units or one or more contractual efforts in                                      
                          assigned program area.                                                                
                         Effectively plans and controls all assigned            Size & Complexity.              
                          resources. Makes and meets time and budget estimates                                  
                          on assigned projects or takes appropriate corrective                                  
                          action.                                                                               
                         Participates in organizational or strategic planning   Make/Buy/Rely.                  
                          at team level, taking cognizance of complementary                                     
                          projects elsewhere to ensure optimal use of                                           
                          resources.                                                                            

[[Page 24630]]

                                                                                                                
III....................  Defines program strategy and resource allocations for  In-House/Contract Managing.     
                          in-house and/or contractual programs.                                                 
                         For assigned technical areas, conducts program         Size & Complexity.              
                          planning, coordination, and/or documentation (master                                  
                          plans, roadmaps, Joint Director of Lab/Reliance,                                      
                          etc.). Advocates to laboratory and/or higher                                          
                          headquarters on budgetary and programmatic issues                                     
                          for resources.                                                                        
                         Based on knowledge of analytical and evaluative        Make/Buy/Rely.                  
                          methods and techniques, participates in strategic                                     
                          planning at branch and/or division level. Considers                                   
                          and consults on technical programs of other                                           
                          organizations working in the field to ensure optimal                                  
                          use of resources.                                                                     
IV.....................  Defines technology area strategy and resource          In-House/Contract Managing.     
                          allocations for in-house and contractual programs.                                    
                         For multiple technical areas, conducts overall         Size & Complexity.              
                          program planning and coordination, and/or program                                     
                          documentation (master plans, roadmaps, Joint                                          
                          Director of Labs/Project Reliance, etc.). Advocates                                   
                          to command, service, and agency levels on budgetary                                   
                          and programmatic issues for resources.                                                
                         Utilizing advanced analytical and evaluative methods   Make/Buy/Rely.                  
                          and techniques, leads strategic planning and                                          
                          prioritization processes. Develops strategy to                                        
                          leverage resources from other agencies and ensures                                    
                          equitable distribution and appropriate use of                                         
                          internal resources.                                                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                               FACTOR 4: TECHNOLOGY TRANSITION/TECHNOLOGY TRANSFER                              
----------------------------------------------------------------------------------------------------------------
I......................  Participates as a team member in demonstrating         Customer Interaction Level.     
                          technology and in interacting with internal/external                                  
                          customers.                                                                            
                         With guidance, contributes to technical content of     Partnership/Level of            
                          partnerships for technology transition and/or          Independence.                  
                          transfer (Advanced Technology Demonstrations,                                         
                          Memorandums of Understanding, Joint Director of Labs/                                 
                          Project Reliance, Cooperative Research and                                            
                          Development Agreements, and other dual-use vehicles).                                 
                         Seeks out and uses relevant outside technologies in    Leveraging Outside Technology.  
                          assigned projects.                                                                    
II.....................  Develops demonstrations and interacts independently    Customer Interaction Level.     
                          with internal/external customers.                                                     
                         As a team member, implements partnerships for          Partnership/Level of            
                          transition and/or transfer of technology (Advanced     Independence.                  
                          Technology Demonstrations, Memorandums of                                             
                          Understanding, Joint Director of Labs/Project                                         
                          Reliance, Cooperative Research and Development                                        
                          Agreements, and other dual-use vehicles).                                             
                         Evaluates and incorporates appropriate outside         Leveraging Outside Technology.  
                          technology in individual or team activities..                                         
III....................  Develops customer base and expands opportunities for   Customer Interaction Level.     
                          technology transition and transfer.                                                   
                         Leads or serves as key technical member of teams       Partnership/Level of            
                          implementing partnerships for transition or transfer   Independence.                  
                          of technology (Advanced Technology Demonstrations,                                    
                          Memorandums of Understanding, Joint Director of Labs/                                 
                          Project Reliance, Cooperative Research and                                            
                          Development Agreements, and other dual-use vehicles).                                 
                         Ensures incorporation of outside technology within     Leveraging Outside Technology.  
                          laboratory programs.                                                                  
                  IV...  Organizes, leads, and markets overall technology       Customer Interaction Level.     
                          transition and transfer activities for organization                                   
                          at senior management levels.                                                          
                         Leads in formulation and oversight of Advanced         Partnership/Level of            
                          Technology Demonstrations, Memorandums of              Independence.                  
                          Understanding, Joint Director of Labs/Project                                         
                          Reliance, Cooperative Research and Development                                        
                          Agreements, and other dual-use vehicles.                                              
                         Creates an environment that encourages widespread      Leveraging Outside Technology.  
                          exploitation of both national and international                                       
                          technologies.                                                                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                       FACTOR 5: R&D BUSINESS DEVELOPMENT                                       
----------------------------------------------------------------------------------------------------------------
I......................  As a team member communicates with customers to        Customer Interaction level.     
                          understand customer requirements.                                                     
                         By maintaining currency in area of expertise,          Knowledge and Level of Planning.
                          contributes as a team member to new program                                           
                          development.                                                                          
                         May technically participate in writing proposals to    Knowledge of Market & Success in
                          establish new business opportunities.                  Getting Funds.                 
II.....................  Initiates meetings and interactions with customers to  Customer Interaction Level.     
                          understand customer needs.                                                            
                         Generates key ideas for program development based on   Knowledge and Level of Planning.
                          understanding of technology and customer needs.                                       
                          Demonstrates expertise to internal/external                                           
                          customers.                                                                            
                         Contributes technically to proposal preparation and    Knowledge of Market & Success in
                          marketing to establish new business opportunities.     Getting Funds.                 
III....................  Works to establish customer alliances and translates   Customer Interaction Level.     
                          customer needs to programs in a particular technical                                  
                          area.                                                                                 
                         Develops feasible research strategies and/or business  Knowledge and Level of Planning.
                          strategies for new technical activities.                                              
                         Seeks joint program coalitions with other agencies     Knowledge of Market & Success in
                          and funding opportunities from outside                 Getting Funds.                 
                          organizations. Pursues near-term business                                             
                          opportunities through proposals.                                                      
IV.....................  Works with the senior management level to stimulate    Customer Interaction Level.     
                          development of customer alliances for several                                         
                          technical areas.                                                                      

[[Page 24631]]

                                                                                                                
                         Generates strategic research and/or business           Knowledge and Level of Planning.
                          objectives for core technical areas. Recognizes war-                                  
                          fighting trends, relates business opportunities, and                                  
                          convinces laboratory management to develop and/or                                     
                          acquire expertise and commit funds.                                                   
                         Secures business opportunities supporting long-term    Knowledge of Market & Success in
                          mission relevancy through targeted proposals and       Getting Funds.                 
                          processes..                                                                           
----------------------------------------------------------------------------------------------------------------
                                      FACTOR 6: COOPERATION AND SUPERVISION                                     
----------------------------------------------------------------------------------------------------------------
I......................  Contributes to all aspects of teams' responsibilities  Team Role.                      
                         May technically guide or mentor less experienced       Breadth of Influence.           
                          personnel on limited aspects of scientific or                                         
                          engineering efforts.                                                                  
                         Receives close guidance from supervisor and/or higher  Supervision & Guidance Received.
                          level scientist or engineer. Performs duties in a                                     
                          professional, responsive, and cooperative manner in                                   
                          accordance with established policies and procedures.                                  
II.....................  Contributes as a technical task or team leader; is     Team Role.                      
                          sought out for expertise by peers; and participates                                   
                          in mentoring of team members.                                                         
                         May guide on a daily basis, technical, programmatic,   Breadth of Influence.           
                          and administrative efforts of individuals or team                                     
                          members.                                                                              
                         May recommend selection or may select staff and/or     Supervision & Subordinate       
                          team members. Assists in the development and           Development.                   
                          training of individuals or team members. May                                          
                          participate in position and performance management.                                   
                         Receives general guidance in terms of policies,        Supervision & Guidance Received.
                          program objectives, and/or funding issues from                                        
                          supervisor and/or higher level scientist or                                           
                          engineer. Discusses novel concepts and significant                                    
                          departures from previous practices with supervisor                                    
                          or team leader.                                                                       
III....................  Is sought out for consultation and mentors team        Team Role.                      
                          members.                                                                              
                         Guides the research, technical and/or programmatic,    Breadth of Influence.           
                          and administrative efforts of individuals or teams                                    
                          with accountability for focus and quality.                                            
                         Recommends selection or selects staff and/or team      Supervision & Subordinate       
                          members. Supports development and training of          Development.                   
                          subordinates and/or team members. Participates in                                     
                          position and performance management.                                                  
                         Receives only broad policy and administrative          Supervision & Guidance Received.
                          guidance from supervisor, such as initiation and                                      
                          curtailment of programs.                                                              
IV.....................  Establishes team charters and develops future team     Team Role.                      
                          leaders and supervisors.                                                              
                         Leads and manages all aspects of subordinates' or      Breadth of Influence.           
                          team members' efforts with complete accountability                                    
                          for mission and programmatic success.                                                 
                         Recommdends selection or selects staff, team leaders,  Supervision & Subordinate       
                          and team members; fosters development and training     Development.                   
                          of supervisory and non-supervisory individuals.                                       
                          Directs or recommends position and performance                                        
                          management.                                                                           
                         Works within the framework of agency policies,         Supervision & Guidance Received.
                          mission objectives, and time and funding limitations.                                 
----------------------------------------------------------------------------------------------------------------


    The assessment process (section III D 3) begins with employee input 
which provides an opportunity to state the accomplishments and level of 
contribution perceived. To determine the employee's yearly 
contribution, the six factors will then be assessed by the immediate 
supervisor. For each factor, the supervisor places the employee's 
contribution at a particular level. If the contribution level for a 
factor is at the lowest level of level I, a score of 1.0 is assigned. 
Higher levels of contribution are assigned scores increasing in 0.1 
increments up to 4.9. A factor score of 0.0 can be assigned if the 
employee's contribution does not demonstrate a minimum level I 
contribution. Under CCS, immediate supervisors will work with other 
supervisors in a group setting to render final scores. Weights may be 
applied to the six factors for different job categories of S&Es 
(section III D 7). CCS will also incorporate a midyear feedback 
session.
    Employees within organizations are placed into pay pools (section 
III D 4). Salary adjustments, i.e., decisions to give or withhold 
salary increases, (section III D 5) are based on the relationship 
between contribution scores and present salaries. The maximum available 
pay rate under this demonstration will be the rate for GS-15/Step-10. 
Decisions for broadband movement (section III D 6) are also based on 
this relationship.
    Cost neutrality is assured within each pay pool by limiting the 
total of salary increases to the funds available to the pay pool, based 
on what would have been available in the General Schedule system from 
general pay increases, step increases, and promotions. No changes will 
be made to locality pay under the demonstration project.
2. The ``Standard Pay Line'' (SPL)
    The relationship between each CCS score and the appropriate salary 
rate is expressed mathematically as a line. All S&Es entering the 
system will initially have their salary lie close to this ``standard 
pay line'' (SPL). Because employees enter the demonstration from a 
grade and step system, an initial correlation generally exists between 
their former GS/GM grade and step and the CCS scores appropriate for 
that broadband level. For example, level II consists of GS-12s and GS/
GM-13s; GS-12/Step- 1 closely aligns to a CCS score of 2.0, GS-12/Step-
2 correlates with a CCS score of 2.05,..., GS/GM-13/Step-1 relates to a 
CCS score of 2.5,..., and GS/GM-13/Step-10 to a CCS score of 2.95. This 
is shown in Figure 1 for the four-level broadband system where the 
salary of each GS grade/step is plotted on the Y-axis. Although the 
data are not continuous, there is a linear trend. Each of these data 
points was weighted by the actual calendar year 1995 (CY95) population 
data for the demonstration laboratories. Using a least squares error

[[Page 24632]]

analysis, the best straight line fit to this weighted data was 
determined and is shown in Figure 1.
BILLING CODE 6325-01-P
=======================================================================
-----------------------------------------------------------------------

FIGURE 1--CCS RELATIONSHIP
[GRAPHIC] [TIFF OMITTED] TN15MY96.033


BILLING CODE 6325-01-C

Equation of the Standard Pay Line (without locality) for CY95
COMPENSATION = $13,572+$15,415 x CCS SCORE

    The SPL defined in Figure 1 is tied to the basic GS pay scale for 
CY95. The SPL for CY96 was calculated from the SPL for CY95 and the 
general increase (G) given to GS employees in January 1996. The 
equation for the CY96 SPL is: COMPENSATION = $13,843 + $15,723  x  CCS 
SCORE. The CY97 SPL will be the CY96 SPL increased by the ``G'' for 
CY97. Continuing this calculation of SPL will maintain the same 
relationships between the basic GS pay-scale and the SPL in the 
demonstration project. Locality salary adjustments are not included in 
the SPL.
    Rails were constructed at + and - 0.3 CCS around the SPL. These 
rails create an area in which nearly 100% of employees initially 
entering the demonstration will be included. A few may fall below the 
lower rail, but no employee will enter the demonstration above the 
upper rail. The area encompassed by the rails denotes the acceptable 
contribution and compensation relationship. Future CCS assessments will 
likely alter an employee's position relative to these rails.
3. The CCS Assessment Process
    The annual assessment cycle begins on 1 October and ends on 30 
September of the following year. At the beginning of the annual 
assessment period, the broadband level descriptors and weights (section 
III D 7) will be provided to employees so that they know the basis on 
which their contribution will be assessed. A midyear review, in the 
March to April time frame, will discuss the employee's contributions 
to-date and the employee's professional development. At the end of the 
assessment period, employees will summarize their contributions in each 
factor for their immediate supervisor.

[[Page 24633]]

The supervisor will determine initial CCS scores using the employee 
input and the supervisor's assessment of the overall contribution to 
the laboratory mission. For each factor, the supervisor places the 
employee's contribution at a particular level (I, II, III, or IV). If 
the contribution for a factor is at the lowest end of a level, a score 
of 1.0, 2.0, 3.0, or 4.0 is assigned. Greater contributions in each 
level are assigned scores increasing in 0.1 increments up to 1.9, 2.9, 
3.9, or 4.9. A factor score of 0.0 can be assigned if the employee does 
not demonstrate a minimum level I contribution. Factor scores are then 
averaged to give a total CCS score.
    The immediate supervisors (for instance, branch chiefs) and the 
next level supervisors (for instance, division chiefs) for a pay pool 
then meet as a group to review and discuss all proposed employee 
assessments and adjust individual CCS scores, if necessary. Giving 
authority to the group of managers to make minor score adjustments 
ensures contributions will have been assessed and measured similarly 
for all employees. Once the scores have been finalized, the results and 
any training and/or career development needs will be discussed with the 
individual employees. Pay adjustments will be made on the basis of this 
CCS assessment and the employee's current salary. Pay adjustments are 
subject to a few payout rules discussed in section III D 5. Final pay 
determinations will be made at a management level above the group of 
supervisors who rendered final CCS assessments. CCS scores, however, 
cannot be changed by managerial levels above the original group of 
supervisors. Decisions for any broadband level changes (section III D 
6) will be submitted to at least one level of management higher than 
the group of supervisors (for instance, directorate chief) for 
approval. Pay adjustments and broadband level changes will then be 
documented by SF-50, Notification of Personnel Action.
4. Pay Pools
    Pay pool structure is under the authority of the laboratory 
directors/commanders. The following minimal guidelines, however, will 
apply: (a) a pay pool is based on the organizational structure and 
should include a range of S&E salaries and contribution levels; (b) a 
pay pool must be large enough to constitute a reasonable statistical 
sample, i.e., 35 or more; (c) a pay pool must be large enough to 
encompass a second level of supervision since the CCS process uses a 
group of supervisors in the pay pool to determine assessments and 
recommend salary adjustments; and (d) the pay pool manager (for 
instance, a division chief or directorate chief) holds yearly pay 
adjustment authority. Pay pool managers' pay determinations, however, 
may still be subject to higher management review.
    The amount of money available for salary increases within a pay 
pool is determined by the general increase (G) and money that would 
have been available for step increases and promotions (I). The latter 
will be set at 2.4% upon implementing the demonstration and is 
considered adjustable to ensure cost neutrality over the life of the 
demonstration. The amount of ``I'' to be included in the pay pool will 
be computed based on the salaries of employees in the pay pool as of 30 
September each year.
5. Salary Adjustment Guidelines
    After the initial assignment into the CCS system, employees' yearly 
contributions will be determined by the CCS process described above, 
and their CCS scores versus their current salaries will be plotted on a 
graph along with the SPL (see Figure 2). The position of those points 
relative to the SPL gives a relative measure (Y/Y) of the 
degree of over- or under-compensation for the employees. This permits 
all employees within a pay pool to be rank-ordered by Y/Y, 
from the most under-compensated employee to most over-compensated.

BILLING CODE 6325-01-P

[[Page 24634]]

[GRAPHIC] [TIFF OMITTED] TN15MY96.034



BILLING CODE 6525-01-C

    In general, those employees who fall below the SPL (indicating 
under- compensation, for example, employee X in Figure 2) should expect 
to receive greater salary increases than those who fall above the line 
(indicating over-compensation, for example, employee Z). Over time, 
people will migrate closer to the standard pay line and receive a 
salary appropriate to their level of contribution. The following are 
more specific guidelines: (a) Those who fall above the upper rail (for 
example, employee Z) will be given an increase ranging from zero to a 
maximum of ``G''; (b) Those who fall within the rails (for example, 
employee Y) will be given a minimum of ``G''; and (c) Those who fall 
below the lower rail (for example, employee X) will be given at least 
their base pay times ``G'' plus the percentage of funds set aside for 
step increases and promotions which will no longer take place (I). 
Should an employee's CCS assessment fall on either rail, it will be 
considered to be within the rails.
    Initially, the value of ``I'' will be 2.4%; the percentage, 
however, may be changed to ensure cost neutrality. Each pay pool 
manager will set the necessary guidelines for the gradation of pay 
adjustments in the pay pool within these general rules. Decisions made 
will be standard and consistent within the pay pool, be fair and 
equitable to all stakeholders, maintain cost neutrality, and be subject 
to review. The maximum available pay rate under this demonstration will 
be the rate for GS-15/Step-10.
6. Movement Between Broadband Levels
    It is the intent of the demonstration project to have S&E career 
growth be accomplished through unrestricted movement through the 
broadband levels based on contribution and salary. Movement through the 
broadband levels will be determined by contribution and salary 
following the CCS payout calculation. Resulting changes in broadband 
levels are not accompanied by tradition promotion dollars, but rather, 
they will be documented as a change in title, change in broadband 
level, and reaccomplishment of a Statement of Duties and Experiences 
(SDE) (section III C 6). The terms Promotion and Demotion will not be 
used in connection with the CCS process. Rather, these terms will be 
reserved for competitive placement and adverse actions.
    Broadband levels are derived from an initial grouping of one or 
more GS grades. Salary overlap between adjacent levels is desirable for 
broadband level

[[Page 24635]]

movement. It is more convenient, however, to redefine these overlaps 
(that is, the top and bottom salary ranges of the broadband levels 
which produce the overlaps) in terms of the SPL. Specifically, the 
salary overlap between two levels is defined by the salaries at - to + 
0.2 CCS around the whole number score defining the boundary between the 
contribution levels. For example, the maximum salary for level II would 
be that salary from the SPL corresponding to a CCS score of 3.2. 
Likewise, the minimum salary for level III would be the salary from the 
SPL corresponding to a CCS score of 2.8. This definition provides a 
salary overlap between broadband levels that is consistent and similar 
to salary overlaps in the GS schedule.
    Figure 3 shows the salary overlap areas between broadband 
contribution levels. These salary overlap areas are divided into three 
zones designated as CL (consideration for change to lower level), CH 
(consideration for change to higher level), and E (eligible for change 
to higher or lower level). All the E zones have the same width, 0.4 
CCS, and height. The E zone is described as the box formed by the 
intersection of the integer + and - 0.2 CCS lines and the SPL.
BILLING CODE 6325-01-P
[GRAPHIC] [TIFF OMITTED] TN15MY96.035


BILLING CODE 6325-01-C

    The E zones serve to stabilize the movement between adjacent 
broadband levels. This allows for annual fluctuations in contribution 
scores for people near the top or bottom of a level, without creating 
the need for repeated changes of their titles. An employee whose 
contribution score falls within an E zone is eligible for a change in 
broadband level (with the associated title change), but one should not 
be given unless the supervisor has a compelling reason to advance or 
reduce the employee's level. Under normal circumstances, pay 
adjustments under CCS will follow contribution scores. Those who 
consistently achieve increased contribution assessments will progress 
through their broadband level and will find their salary climbing into 
the corresponding CH zone. Once the employee's CCS score is 
demonstrated to be consistently within the CH zone, the employee should 
be moved to the higher broadband level unless the supervisor has a 
compelling reason not to request the change. Conversely, regression 
through the broadband levels works the same way in the opposite 
direction. Those who consistently receive decreasing contribution 
assessments will regress through their broadband level and would not 
have been receiving any salary adjustments greater than ``G.'' They 
will find that the CL zone at the bottom of their current broadband 
level will catch up with their current salary. Once the employee's CCS 
score is demonstrated to be consistently within the CL zone, the 
employee should be moved to the lower

[[Page 24636]]

broadband level unless the supervisor has a compelling reason not to 
request the change. Compelling reasons for retaining broadband levels 
in the presence of a consistent assessment in the CH or CL range must 
be documented in writing and provided to the employee. If an employee 
moves totally above the CH zone or below the CL zone, the employee will 
be changed in broadband level without supervisory action.
    At the present time, high-grade controls within the agency restrict 
movement between broadband level II and broadband level III. A separate 
tri-service initiative to replace these controls with other management 
measures is currently under review by the Department of Defense. Until 
the high-grade controls are lifted, demonstration project employees 
will not be able to advance from broadband level II to broadband level 
III unless a high-grade authorization is available. To accommodate 
this, level II employees whose salary adjustment would place them above 
the CH zone for level II in organizations where high-grade 
authorizations are unavailable will receive permanent adjustments to 
basic salary up to an amount equivalent to the top of broadband level 
II. Any additional amount granted under CCS will be paid as a one-time 
bonus payment from pay pool funds. This pattern of payout will continue 
until high-grade authorizations become available.
    Movement under CCS happens once a year. Under the demonstration 
project, managers are provided greater flexibility in assigning duties 
by moving employees between positions within their broadband level. If, 
throughout the year, there are vacancies at higher levels (typically 
supervisory positions), employees may be considered for promotion to 
those positions according to the demonstration project competitive 
promotion procedures approved by the Air Force. Demonstration employees 
selected for positions at a higher broadband level will receive the 
minimum of the new broadband level or their existing salary, whichever 
is greater. Under the approved competitive promotion procedures, the 
selecting official may consider candidates from any source based on 
viable and supportable job related merit-based methodology. Similarly, 
if there is sufficient cause, an employee may be demoted to a lower 
level position according to the contribution-based reduction in pay or 
removal procedures discussed in section III E or the existing 
procedures related to disciplinary actions.
7. Weights
    Employees under the demonstration will be assigned to one of five 
job categories:
    (a) Supervisor, primary function is to supervise other employees;
    (b) Plans & Programs S&E, primary function is to formulate plans 
and policies to further the organizational mission;
    (c) Program Manager, primary function is to run/direct research and 
development (R&D) programs;
    (d) Support S&E, primary function is to support the research 
efforts of the laboratory; and
    (e) Bench-Level S&E, primary function is to perform R&D within the 
mission focus of the laboratory. Laboratory directors/commanders will 
have the authority to determine if varying weights should be applied to 
the six CCS factors based on these job categories. As an example, 
Technical Problem Solving may be more heavily weighted for Bench-Level 
S&Es than the factor of Technology Transition/Technology Transfer.
    The authority to use weights and the authority to set weights may 
be delegated below the laboratory director/commander. But, weights must 
be the same for all employees in a particular job category in a pay 
pool. This ensures that a fair comparison of employees is made, without 
having the weights tailored to specific individuals. The overall CCS 
score is determined by multiplying the score for each factor by the 
weight, adding the results, and then dividing by the sum of the 
weights.
    This demonstration project, in part, is predicated on the belief 
that the continued success and viability of the laboratories depends on 
all employees seeking to contribute in each of the areas defined by the 
six factors. Making all employees accountable for all factors shifts 
organizational values in new directions. For this reason, no factor can 
be given a weight of zero. Laboratory directors/commanders should 
annually review the weightings for the various job categories to see if 
they can be increased toward a weighting of 1.0 to encourage and allow 
employees to raise their CCS contribution assessment by contributing in 
a broader range of activities. Contribution in all six factors is 
important to ensure both the overall success of DoD laboratories and 
individual S&E career growth. Hence, the weights should be reviewed 
frequently, and an effort made to move away from them in later years of 
the demonstration.
    Other guidelines for setting weights for the six factors are: (a) 
Weights may be assigned any value, in increments of 0.1, from 0.1 to 
1.0; (b) At least three factors must have a weight of 1.0; and (c) No 
more than one factor can have a weight of less than 0.5. For all six 
factors, therefore, the weights must sum from 4.1 to 6.0.
8. Voluntary Pay Reduction and Pay Raise Declination
    A provision exists today for an employee to request a change to 
lower grade. If that request is totally the employee's choice, then the 
employee's salary is lowered accordingly. Although the rationale behind 
such a voluntary request varies, under CCS a voluntary request for a 
pay reduction or a voluntary declination of a pay raise would 
effectively put an over-compensated employee's pay closer to or below 
the standard pay line. Since an objective of CCS is to properly 
compensate employees for their contribution, the granting of such 
requests is consistent with this goal. Under normal circumstances, all 
employees should be encouraged to advance their careers through 
increasing contribution rather than trying to be under-compensated at a 
fixed level of contribution.
    To handle these special circumstances, employees must submit a 
request for voluntary pay reduction or pay raise declination during the 
30-day period immediately following the annual payout, and show reasons 
for the request. All actions will be appropriately documented.
9. Implementation Schedule
    The 1996 employee annual appraisal will be done according to Air 
Force performance plan rules in effect at the time of the 1996 close-
out. The 1997 appraisal cycle will also begin but is not anticipated to 
be completed due to the implementation schedule of this demonstration 
project. The first assessment cycle under CCS will commence the day the 
demonstration is implemented and run through 30 September 1997. The 
first CCS payout will be given in the traditional first full pay period 
in calendar year 1998.
10. CCS Grievance Procedures
    An employee may grieve the assessment received under CCS. 
Nonbargaining unit employees, and bargaining unit employees covered by 
a negotiated grievance procedure which does not permit grievances over 
performance ratings, must file assessment grievances under 
administrative grievance procedures. Bargaining unit employees, whose 
negotiated grievance procedures cover

[[Page 24637]]

performance rating grievances, must file assessment grievances under 
those negotiated procedures.

E. Contribution-based Reduction in Pay or Removal Actions

    This section applies to reduction in pay or removal of 
demonstration project employees based solely on inadequate 
contribution. Adverse actions procedures under 5 CFR 752 remain 
unchanged.
    When an employee's contribution plots in the area above the upper 
rail of the SPL (section III D 3) the employee is considered to be in 
the Automatic Attention Zone (AAZ). In this case, the supervisor has 
two options. The first is to take no action but to document this 
decision in a memorandum for record. A copy of this memorandum will be 
provided to the employee and to higher levels of management. The second 
option is to inform the employee, in writing, that unless the 
contribution increases to, and is sustained at, a higher level, the 
employee may be reduced in pay or removed.
    These provisions also apply to an employee whose contribution 
deteriorates during the year. In such instances, the group of 
supervisors who meet during the CCS assessment process may reconvene 
any time during the year to review the circumstances warranting the 
recommendation to take further action on the employee.
    The supervisor will afford the employee a reasonable opportunity (a 
minimum of 60 days) to demonstrate increased contribution commensurate 
with the duties and responsibilities of the employee's position. As 
part of the employee's opportunity to demonstrate increased 
contribution, the laboratory will offer assistance to the employee.
    Once an employee has been afforded a reasonable opportunity to 
demonstrate increased contribution, the laboratory may propose a 
reduction in pay or removal action. If the employee's contribution 
increases to a higher level and is again determined to deteriorate in 
any area within 2 years from the beginning of the opportunity period, 
the laboratory may initiate reduction in pay or removal with no 
additional opportunity to improve. If an employee has contributed 
appropriately for 2 years from the beginning of an opportunity period 
and the employee's overall contribution once again declines, the 
laboratory will afford the employee an additional opportunity to 
demonstrate increased contribution before determining whether or not to 
propose a reduction in pay or removal.
    An employee whose reduction in pay or removal is proposed is 
entitled to a 30 day advance notice of the proposed action that 
identifies specific instances of inadequate contribution by the 
employee on which the action is based. The laboratory may extend this 
advance notice for a period not to exceed an additional 30 days. The 
laboratory will afford the employee a reasonable time to answer the 
laboratory's notice of proposed action orally and/or in writing.
    A decision to reduce in pay or remove an employee for inadequate 
contribution may be based only on those instances of inadequate 
contribution that occurred during the 2 year period ending on the date 
of issuance of the advance notice of proposed action. The laboratory 
will issue written notice of its decision to the employee at or before 
the time the action will be effective. Such notice will specify the 
instances of inadequate contribution by the employee on which the 
action is based and will inform the employee of any applicable appeal 
or grievance rights.
    The laboratory will preserve all relevant documentation concerning 
a reduction in pay or removal which is based on inadequate contribution 
and make it available for review by the affected employee or designated 
representative. At a minimum, the laboratory's records will consist of 
a copy of the notice of proposed action; the written answer of the 
employee or a summary thereof when the employee makes an oral reply; 
and the written notice of decision and the reasons therefore, along 
with any supporting material including documentation regarding the 
opportunity afforded the employee to demonstrate increased 
contribution.
    When the action is not taken because of contribution improvement by 
the employee during the notice period, the employee is not reduced in 
pay or removed, and the employee's contribution continues to be deemed 
adequate for 2 years from the date of the advanced written notice, any 
entry or other notation of the proposed action will be removed from all 
laboratory records relating to the employee.

F. Voluntary Emeritus Corps

    Under the demonstration project, laboratory directors/commanders 
will have the authority to offer retired or separated employees 
voluntary assignments in the laboratories. This authority will include 
employees who have retired or separated from Federal service, including 
those who have accepted a buy-out. The voluntary emeritus corps will 
ensure continued quality research while reducing the overall salary 
line by allowing higher paid employees 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 S&Es could accept retirement and return to provide valuable on-
the-job training or mentoring to less experienced employees.
    To be accepted into the emeritus corps, a volunteer must be 
recommended by laboratory managers to the laboratory director/
commander. Everyone who applies is not entitled to a volunatry 
assignment. The laboratory director/commander 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 2 years.
    To encourage participation, the volunteer's federal retirement pay 
(whether military or civilian) will not be affected while serving in a 
voluntary capacity.
    Volunteers will not be permitted to monitor contracts on behalf of 
the government or to participate on any contracts where a conflict of 
interest exists.
    An agreement will be established between the volunteer, the 
laboratory director/commander, and the Civilian Personnel Flight. The 
agreement must be finalized in advance and shall include as a minimum:
    (a) a statement that the voluntary assignment does not constitute 
an appointment in the civil service and is without compensation,
    (b) the volunteer waives any and all claims against the Government 
because of the voluntary assignment except for purposes of on-the-job 
injury compensation as provided in 5 U.S.C. 8101(1)(B),
    (c) volunteer's work schedule,
    (d) length of agreement (defined by length of project or time 
defined by weeks, months, or years),
    (e) support provided by the laboratory (travel, administrative, 
office space, supplies),
    (f) a one page SDE,
    (g) a provision that states no additional time will be added to a 
volunteer's retirement credit as a result of being a member of the 
voluntary emeritus corps,
    (h) a provision allowing either party to void the agreement with 10 
working days written notice, and
    (i) the level of security access required (any security clearance 
required by the assignment will be managed by the

[[Page 24638]]

laboratory while the volunteer is a member of the emeritus corps).
G. Revised Reduction-In-Force (RIF) Procedures
    Reduction-in-force is not the vehicle for addressing contribution/
disciplinary problems properly addressed under section III E or 5 
U.S.C. 75, Adverse Actions. When there is a requirement to reduce the 
size of the laboratory workforce due to a lack of funds, lack of work, 
or other reason specified in 5 CFR 351.201, demonstration project 
employees will be identified for reduction using the following 
procedures.
    A separate competitive area will be established by geographic 
location for all laboratory personnel included in the demonstration 
project. The revised RIF procedures apply to all regular career S&Es 
(including those who have not completed their probationary period).
    Each laboratory shall establish competitive levels consisting of 
all positions in a competitive area which are in the same broadband 
level and occupational family and which are similar enough that the 
incumbent of one position could succeed in the new position without any 
loss of productivity beyond that normally expected in the orientation 
of any new, but fully qualified, employee. The laboratory directors/
commanders, or their designee, will observe and participate with the 
appropriate Civilian Personnel representative in all placement actions.
    Competing employees shall be ranked on a retention register on the 
basis of their annual CCS assessment (X), veterans preference, 
and length of service. The X is determined by plotting an 
individual's annual CCS score and present salary as a point on a graph 
and computing the difference between the position of that point and the 
contribution point on the SPL for the employee's salary rate. This is 
computed by actual CCS score minus expected SPL point for that salary 
rate and may result in positive, zero, or negative X. This 
X replaces the annual performance rating in the RIF definition 
and is the primary factor in determining an employee's retention 
standing.
    The retention order will be as follows:
    (a) All regular career employees, including those employees who 
have not completed a probationary period, will be listed on the 
retention register based on an individual's X consisting of an 
average of the three most recent CCS assessments of record. The 
employees will then be divided into three categories: (1) above the 
upper rail (a X less than -0.30), (2) within the two rails (a 
X equal to or greater than -0.30 and less than or equal to 
+0.30), and (3) below the lower rail (a X greater than +0.30).
    (b) All employees within each of these three categories will tie 
for the purposes of RIF. Ties will be broken by using an employee's 
veterans preference for RIF (i.e., 30 percent disabled veterans will be 
listed first, followed by other veterans, and all non-veterans will be 
listed last).
    (c) Ties within this latter category will be broken based on 
Service Computation Date (SCD). No additional credit will be added to 
the SCD based on the CCS annual assessments.
    Until the first CCS assessment is given under the demonstration 
project, traditional RIF rules will be followed. Should a RIF occur 
between the first and second CCS assessment dates, employees will have 
their SCD adjusted based on the employee's two most recent annual 
performance ratings of record received during the 3-year period prior 
to implementation of the demonstration project. Effective with the 
second CCS assessment date, no credit will be given for ratings 
received outside the demonstration project.
    One objective of the demonstration project is to ensure lower 
ranked contributors are the first to be RIFed while continuing to 
preserve Veterans Preference. After 3 years of evaluating CCS and the 
revised RIF process, a decision will be made whether or not to continue 
the RIF process described above or to consider alternatives.
    Employees serving under a contingent appointment will not have a 
right to compete for retention in RIF. Accordingly, these employees 
will be listed at the bottom of the appropriate retention register and 
must be separated before any regular career employees can be released 
from the competitive level.
    To provide adequate time to determine employee retention standing, 
the laboratory will establish a cutoff date--a minimum of 30 calendar 
days prior to the issuance of RIF notices--after which no new CCS 
assessments will be put on record and used for purposes of RIF. When a 
cutoff date is used, employees will receive their X for the 
three most recent CCS assessments received during the 4 year period 
prior to the cutoff date.
    To be creditable for purposes of RIF, an assessment must have been 
issued to the employee, with all appropriate reviews and signatures, 
and must be on record (e.g., the assessment is available for use by the 
office responsible for establishing retention registers).
    An employee who has received fewer than three annual CCS 
assessments of record shall be ranked based on any actual assessment(s) 
received and the required number of assumed assessment(s) of 0.0 
X (the contribution factor for their current salary as defined 
by the SPL).
    An employee who has received a written decision under the 
contribution-based actions provision of the demonstration described in 
section III E competes under RIF from the position to which the 
employee will be or has been demoted.
    Assignment rights for employees identified for release from a 
competitive level will be determined in the following order: (a) Vacant 
positions--assignment may be made to any available vacant position in 
the competitive area; then (b) Trumping--an employee with a higher 
retention standing displaces another employee in another competitive 
level in the same broadband level. Trumping replaces the bumping and 
retreat action under the traditional RIF system.
    Each competing employee is entitled to a specific written notice at 
least 60 full calendar days before the effective date of release when a 
significant number of employees will be separated. An employee is 
entitled to a second written notice, as appropriate, at least 60 full 
calendar days if the agency decides to take an action more severe than 
first specified.

IV. Training

    An extensive training program is planned for support personnel and 
every employee in the demonstration project including managers, 
supervisors, and S&Es. Training will be tailored to fit the 
requirements of every employee included and will fully address employee 
concerns to ensure everyone has a comprehensive understanding of the 
program and to emphasize the benefits to employees. In addition, 
leadership training will be provided to all managers and supervisors as 
the new system places more responsibility and decision making authority 
on their shoulders.
    Using an existing task order contract through Armstrong Laboratory, 
the training packages will be developed to encompass all aspects of the 
project and validated prior to training the workforce. Specifically, 
training is being developed for the following groups of employees:
    (a) lab S&Es included in the demonstration,
    (b) civilian and military supervisors and managers, and
    (c) administrative support personnel, civilian personnel offices, 
civilian pay offices, and HQ AFMC and center

[[Page 24639]]

personnel who must understand laboratory operations under the 
demonstration.
    Training requirements will vary from an overview of the new system; 
to a more detailed package for laboratory S&Es; to very specific 
instructions for both civilian and military supervisors, managers, and 
others who provide personnel and payroll support.
    Base level training personnel will provide local training 
management, facilities, and support to laboratory directors/commanders. 
Contract training personnel will be utilized where organic capabilities 
are not available or not economically feasible. The training will 
begin, and be completed, within the 90 days prior to implementation.

V. Conversion

A. Conversion to the Demonstration Project

    Initial entry into the demonstration project for covered employees 
will be accomplished through a full employee protection approach that 
ensures each employee an initial place in the appropriate broadband 
level without loss of pay. An automatic conversion from current GS/GM 
grade and step into the new broadband system will be accomplished. 
Special Salary Rates will no longer be applicable to demonstration 
project employees. All employees will be eligible for the future 
locality pay increases of their geographical area. Employees on Special 
Salary Rates at the time of conversion will receive a new basic pay 
rate computed by dividing their highest adjusted basic pay (i.e., 
special pay rate or, if higher, the 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 and pay retention provisions 
will not apply to the conversion process as there will be no change in 
total salary. Employees who enter the demonstration project later by 
lateral reassignment or transfer will be subject to parallel pay 
conversion rules.

B. Conversion Back to the Former System

    In the event the project ends, a conversion back to the former 
(regular) Federal civil service system will be required. All employees 
in a broadband level corresponding to a single General Schedule (GS) 
grade will be converted to that grade. Employees in a multiple grade 
broadband level will be considered to have attained the next higher 
grade when they have been in the level at least 1 year and their salary 
equals or exceeds the minimum salary of the higher grade. For employees 
who are entitled to a special rate upon return to the General Schedule, 
the demonstration project locality rate must equal or exceed the 
minimum special rate of the higher grade. To set GS pay upon 
conversion, an employee's demonstration project locality rate would be 
converted (prior to leaving the project) to the highest General 
Schedule rate range (i.e., locality rate range or special rate range) 
applicable to the employee. If the employee's rate falls between the 
fixed rates for the applicable range, it will be raised to the next 
higher rate. The employee's GS basic rate (excluding special rates or 
locality payments) would then be derived based on the grade and step 
associated with this converted rate. Employees who leave the 
demonstration project and return to the General Schedule pay system via 
reassignment, promotion, demotion, or transfer are subject to parallel 
pay conversion rules to determine the converted GS rates under the 
demonstration project to be used in applying GS pay administration 
rules (e.g., promotion rule or maximum payable rate rule) in setting 
pay at the gaining agency.

VI. Project Duration

    Public Law 103-337 removed any mandatory expiration date for this 
demonstration. The project evaluation plan adequately addresses how 
each intervention will be comprehensively evaluated for at least the 
first 5 years of the demonstration. Major changes and modifications to 
the interventions can be made through announcement in the Federal 
Register and would be made if formative evaluation data warranted. At 
the 5 year point, the entire demonstration will be reexamined for 
either: (a) permanent implementation, (b) change and another 3-5 year 
test period, or (c) expiration.

VII. Evaluation Plan

    Authorizing legislation mandates evaluation of the demonstration 
project to assess the merits of project outcomes and to evaluate the 
feasibility of applications to other federal organizations. A 
comprehensive and methodologically rigorous evaluation of the personnel 
system changes will be carried out. The overall evaluation consists of 
two components--external and internal evaluation. Both components will 
be overseen by the Office of Personnel Management (OPM) to benefit from 
their extensive experience evaluating demonstration projects. Further, 
OPM will serve in the role of external evaluator to ensure the 
integrity of the evaluation process, outcomes, and interpretation of 
results. Their external evaluation will be supplemented by an internal 
evaluation to be accomplished by the staff of the USAF laboratories. 
Selected parts of the evaluation will be completed using contractor 
support; the contractor(s) will be well qualified and experienced with 
demonstrated expertise in performing relevant support functions.
    Essential elements of the evaluation plan are set forth below. The 
demonstration project is a complex experiment to be conducted in a 
dynamic environment over several years. Modifications and refinements 
to the evaluation plan will be made as required by mid-course project 
changes. All additions, deletions, and refinements to the current plan 
will be fully documented and explained as part of the evaluation 
reporting process.
    The main purpose of the evaluation is to determine the 
effectiveness of the personnel system changes described by the 
individual interventions. Every effort will be made to establish direct 
cause-and-effect relationships between the interventions and 
effectiveness criteria. An ancillary objective is to assess the effects 
of the interventions on improved organizational performance. An 
indirect causal link is hypothesized between the personnel system 
changes and improved organizational effectiveness, e.g., improved 
laboratory performance, mission accomplishment, and customer 
satisfaction. The current personnel management system with its many 
rigid rules and regulations often is perceived as a barrier to mission 
accomplishment. Together, the demonstration project initiatives are 
intended to remove some of those barriers, and, therefore, are expected 
to contribute to improved laboratory performance.
    The evaluation effort will be accomplished in four distinct phases:
    (a) Design phase--includes development of the evaluation model, 
selection of experimental and comparison sites, and collection of 
baseline data prior to implementation;
    (b) Implementation phase--includes actual project implementation 
and monitoring of the degree and support of implementation to assure 
that each of the project interventions has been operationalized as 
originally conceived;
    (c) Formative evaluation phase--includes data collection and 
analysis for 5 years for purposes of evaluating the effects of the 
interventions. Periodic reports and annual summaries will be prepared 
to document the findings; and
    (d) Summative evaluation phase--focuses on summary evaluation and 
overall assessment of the project's

[[Page 24640]]

impact, including presentation of conclusions and final recommendations 
upon completion of the project.
    A quasi-experimental design with pre- and post-implementation 
comparisons will be employed. Baseline measures will be taken prior to 
project implementation. Then, repeated measurements will be taken post-
implementation, throughout the formative evaluation phase, to allow 
longitudinal comparisons.
    Scientific and engineering personnel at all USAF laboratory sites 
constitute the experimental group, leaving no laboratory site that can 
be used to form a permanent, equivalent ``no treatment'' control group. 
A control group is defined as consisting of employees managed under the 
traditional Civil Service system.
    Provisions are being made to address the lack of a control group by 
collecting data from other non-equivalent sites for comparison 
purposes. Options being explored are:
    (a) Use Army and Navy laboratories as temporary control groups. 
These laboratories are eligible to conduct personnel demonstration 
projects under the authorizing legislation, and most, if not all, are 
planning their own projects. Until their projects are approved, the 
employees could serve as short-term controls.
    (b) Construct a composite comparison group from laboratories in 
civilian federal agencies, with occupational and other workforce 
demographics comparable to those of the USAF laboratories.
    An additional feature of the design calls for comparisons of trends 
relative to those for prior demonstration projects now operating under 
non-traditional personnel systems, including the National Institutes 
for Standards and Technology (NIST) and Naval laboratories (Naval 
Warfare Center and Naval Ocean Systems Center). A retrospective 
analysis will be conducted to compare historic data from prior projects 
with that obtained from the USAF laboratories on common measures 
collected at equivalent points during the implementation and formative 
evaluation phases.
    As shown in Figure 4, a general evaluation model has been developed 
which postulates: (a) specific intermediate effects of each individual 
intervention, and (b) ultimate effects of the combined interventions on 
organizational performance. Intermediate, intended outcomes are those 
changes, as a result of the experimental interventions, which 
contribute to achieving the ultimate goals. Further, efforts will be 
made to assess unintended effects, that is, unanticipated impacts that 
may be positive or negative in nature. Any changes can have unintended 
outcomes, and those proposed for the demonstration project are no 
exception. The evaluation methods and measures will be comprehensive in 
design in order to capture unintended results. Moreover, as the results 
of the intervention evaluation are being interpreted and conclusions 
are being drawn, consideration will be given to the context in which 
the demonstration project is occurring. Much of the context cannot be 
controlled, but contextual events will be identified and considered in 
the evaluation as potential intervening variables.
    The effectiveness of each intervention and the project as a whole 
in meeting stated objectives will be addressed using a multi-method 
approach. Some methods will be unobtrusive in that they do not require 
reactions or inputs from employees or managers. These methods include 
analysis of archival workforce data and personnel office data, review 
of logs maintained by site historians documenting contextual events, 
and organizational records of scientific and engineering products and 
research study progress reports. Other methods such as structured 
interviews, focus groups, and attitude surveys will be used to collect 
the perceptions of laboratory managers and supervisors, as well as 
customers.
    The specific measures to be collected using the different methods 
will be deduced from the goals and objectives stated for each 
intervention. Both quantitative and qualitative measures will be 
obtained. Most of the potential measures can be grouped around three 
major effectiveness criteria: speed, cost, and quality. Collectively, 
the intermediate outcomes of the interventions are hypothesized to lead 
to human resource management improvements, as reflected by timeliness, 
cost-effectiveness, and quality. The same three criteria apply to 
ultimate outcomes indicating organizational performance.

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[[Page 24641]]

[GRAPHIC] [TIFF OMITTED] TN15MY96.036



BILLING CODE 6325-01-C

VIII. Demonstration Project Costs

A. Step Buy-Ins

    Under the current pay structure, employees progress through their 
assigned grade in step increments. Since this system is being replaced 
under the demonstration project, employees will be awarded that portion 
of the next higher step they have completed up until the effective date 
of implementation. As under the current system, supervisors will be 
able to withhold these partial step increases if the employee's 
performance falls below fully successful.
    The 1996 annual appraisal will be closed on the normal close-out 
date of June 30, 1996. The first formal CCS assessment cycle will begin 
on the effective date of implementation of the demonstration and will 
end on September 30, 1997. The general increase to employee's base pay 
in January 1997 will be handled under existing procedures. The first 
CCS pay adjustments will be made during the first full pay period of 
CY98. Future CCS pay adjustments will be effective the beginning of the 
first full pay period of subsequent calendar years.
    Rules governing Within-Grade Increases (WGI) under the current Air 
Force performance plan will continue in effect until the implementation 
date. Adjustments to the employees base salary for WGI equity will be 
computed effective the date of implementation to coincide with the 
beginning of the first formal CCS assessment cycle. WGI equity will be 
acknowledged by increasing base salaries by a prorated share based upon 
the number of days an employee has completed towards the next higher 
step. Employees at step 10 on the date of implementation will not be 
eligible for WGI equity adjustments since they are already at the top 
of the step scale.

B. Cost Neutrality

    The demonstration project is required to be cost neutral. A 
baseline will be established at the start of the project and salary 
expenditures will be tracked yearly. Implementation costs, including 
the step buy-in costs detailed above, will not be included in the cost 
neutrality evaluations.
    Special Salary Rates will no longer be applicable to demonstration 
project employees. The only factor in the pay equation which varies 
from the current system is the allowance for step increases and 
promotions, denoted by ``I.'' The 15 year demonstration project at 
China Lake has demonstrated this number to average 2.4% per year. This 
figure has been further validated by OPM. By limiting annual CCS based 
pay increases to the general increases (G) plus 2.4% should, by 
definition, maintain cost neutrality under CCS. If through the project 
evaluation process it is determined that cost neutrality is not being 
maintained, the ``I'' rate will be adjusted to a rate which will 
provide for cost neutrality within 3 years.

C. Personnel Policy Boards

    It is being recommended that each laboratory establish a Personnel 
Policy Board that would consist of the senior civilian in each 
directorate within the laboratory and be chaired by the laboratory 
executive director. The board would be tasked with the following:
    (a) Overseeing the civilian pay budget,
    (b) Addressing issues associated with two separate pay systems (CCS 
and GS) during the first phase of the demonstration project,
    (c) Determining the composition of the CCS pay pools in accordance 
with the established guidelines,
    (d) Reviewing operation of the laboratory CCS pay pools,
    (e) Providing guidance to pay pool managers,
    (f) Administering funds to CCS pay pool managers,
    (g) Integrating CCS with the free-market model,
    (h) Reviewing hiring and promotion salaries,
    (i) Addressing Manage to Budget (MTB) issues to include the 
tracking of average salaries, and

[[Page 24642]]

    (j) Monitoring award pool distribution by organization and by S&E 
versus non-S&E.
    Should the laboratory elect not to establish a Personnel Policy 
Board, the charter of an existing group within each laboratory must be 
modified to include the duties detailed above.

D. Developmental Costs

    Costs associated with the development of the demonstration system 
include software automation, training, and project evaluation. All 
funding will be provided through the Air Force Science and Technology 
budget. The projected annual expenses for each area is summarized in 
Table 4. Project evaluation costs will continue for at least the first 
5 years and may continue beyond.

                 Table 4.--Projected Developmental Costs                
                    [Then year dollars in thousands]                    
------------------------------------------------------------------------
                                   FY95    FY96    FY97    FY98    FY99 
------------------------------------------------------------------------
Training........................    $170    $100     $50                
Project Eval....................      20     200     150    $150    $150
Automation......................  ......     150     100  ......  ......
Data Systems....................  ......     260  ......  ......  ......
                                 ---------------------------------------
    Totals......................     190     710     300     150     150
------------------------------------------------------------------------

IX. Required Waivers to Law and Regulation \10\

A. Waivers to Title 5, United States Code

Chapter 31, Section 3111: Acceptance of volunteer service.
---------------------------------------------------------------------------

    \10\ Waiver required only to the extent that the project 
conflicts with pertinent provision of law and regulation.

Chapter 33: Examination; selection; placement.
Chapter 35, Sections 3501-3502: Related to retention preference.
Chapter 43, Sections 4301-4305: Related to performance appraisal.
Chapter 51, Sections 5101-5102 and Sections 5104-5107: Related to 
classification standards and grading.
Chapter 53, Sections 5301; 5302 (8) and (9); 5303; 5304 (only to the 
extent necessary to allow demonstration project employees to be treated 
as General Schedule employees and to allow basic rates of pay under the 
demonstration to be treated as scheduled rates of basic pay); 5305; 
5331-5336; and 5361-5366: Related to special pay; pay rates and 
systems; grade and pay retention.
Chapter 55, Section 5545 (d): Related to hazardous duty premium pay 
(only to the extent necessary to allow demonstration project employees 
to be treated as General Schedule employees).
Chapter 57, Sections 5753, 5754, and 5755: Related to recruitment, 
relocation, and retention payments; supervisory differential (only to 
the extent necessary to allow employees and positions under the 
demonstration project to be treated as employees and positions under 
the General Schedule).
Chapter 75, Sections 7512 (3): Related to adverse action (but only to 
the extent necessary to exclude reductions in broadband level not 
accompanied by a reduction in pay) and 7512 (4): Related to adverse 
action (but only to the extent necessary to exclude conversions from a 
General Schedule special rate to demonstration project pay that do not 
result in a reduction in the employee's total rate of pay).

B. Waivers to Title 5, Code of Federal Regulations

Part 300, Sections 300.601 through 300.605: Time-in-grade restrictions.
Part 308, Sections 308.101 through 308.103: Volunteer service.
Part 315, Sections 315.801 and 315.802: Probationary period.
Part 334, Section 334.102 : Temporary assignment of employees outside 
agency.
Part 340: Other than full-time career employment.
Part 351, Sections 351.203; 351.403; 351.501; 351.504; 351.701; 
351.801; and 351.805: Related to retention preference.
Part 430, Subpart A and Subpart B: Performance management; performance 
appraisal.
Part 432, Sections 432.103 through 432.105: Performance-based 
reduction-in-grade and removal actions.
Part 511, Subpart A, Subpart B, and Subpart F, sections 511.601 through 
511.612: Classification within the General Schedule.
Part 530, Subpart C: Special salary rates.
Part 531, Subpart B, Subpart D, Subpart E, and Subpart F: Determining 
rate of pay; within-grade increases; quality step increases; locality 
payments (only to the extent necessary to allow demonstration project 
employees to be treated as General Schedule employees and to allow 
basic rates of pay under the demonstration project to be treated as 
scheduled rates of basic pay).
Part 536, Subpart A, Subpart B, and Subpart C: Grade and pay retention.
Part 550, Sections 550.902: Hazard Pay, definition of ``employee'' 
(only to the extent necessary to allow demonstration project employees 
to be treated as General Schedule employees).
Part 575, Sections 575.102 (a)(1), 575.202 (a)(1), 575.302 (a)(1), and 
Subpart D: Recruitment and relocation bonuses; retention allowances; 
supervisory differentials (only to the extent necessary to allow 
employees and positions under the demonstration project to be treated 
as employees and positions under the General Schedule positions).
Part 752, Sections 752.401 (a)(3): Reduction in grade and pay (but only 
to the extent necessary to exclude reductions in broadband level not 
accompanied by a reduction in pay) and 752.401 (a)(4) (but only to the 
extent necessary to exclude conversions from a General Schedule special 
rate to demonstration project pay that do not result in a reduction in 
the employee's total rate of pay).

[FR Doc. 96-12131 Filed 5-14-96; 8:45 am]
BILLING CODE 6325-01-P