[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14254-14327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7486]
[[Page 14253]]
_______________________________________________________________________
Part IV
Office of Personnel Management
_______________________________________________________________________
Proposed Civilian Acquisition Workforce Personnel Demonstration
Project; Department of Defense; Notice
Federal Register / Vol. 63, No. 56 / Tuesday, March 24, 1998 /
Notices
[[Page 14254]]
OFFICE OF PERSONNEL MANAGEMENT
Proposed Civilian Acquisition Workforce Personnel Demonstration
Project; Department of Defense (DoD)
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.
Section 4308 of the National Defense Authorization Act for Fiscal
Year 1996 (Pub. L. 104-106; 10 U.S.C.A. Sec. 1701 note), as amended by
section 845 of the National Defense Authorization Act for Fiscal Year
1998 (Pub. L. 105-85), permits the Department of Defense (DoD), with
the approval of OPM, to conduct a personnel demonstration project
within the Department's civilian acquisition workforce and those
supporting personnel assigned to work directly with the acquisition
workforce. DoD is proposing a demonstration project to cover the
civilian acquisition workforce and teams of personnel, more than half
of which consist of members of the acquisition workforce and the
remainder of which consist of supporting personnel assigned to work
directly with the acquisition workforce, throughout DoD. The total
number of participants is limited to 95,000.
DATES: Comment date: To be considered, written comments must be
submitted on or before public hearings will be scheduled as follows:
1. 23 April 1998, 10 A.M.; at Essayons Theater Bldg 219, 19th St.,
Ft. Belvoir, VA 22060.
2. 30 April 1998, 10 A.M.; at 100 N. Sepulveda Blvd., Conference
Room Plaza Level, El Segundo, CA 90245.
3. 5 May 1998, 10 A.M.; at Air Force Museum Auditorium, 1100 Spaatz
St., Wright-Patterson AFB, OH 45433-7102.
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 five minutes. Written
comments may be submitted to supplement oral testimony during the
public comment period.
ADDRESSES: Comments may be mailed to Helen C. Onufrak, U.S. Office of
Personnel Management, 1900 E Street NW., Room 7460, Washington, DC
20415.
FOR FURTHER INFORMATION CONTACT: On proposed demonstration project: OSD
Greg Giddens, Acquisition Workforce Personnel Demonstration, 5203
Leesburg Pike, Suite 1404, Falls Church, VA 22041, 703-602-8652; on
proposed demonstration project and public hearings: OPM Helen C.
Onufrak, U.S. Office of Personnel Management, 1900 E Street NW., Room
7460, Washington, DC 20415, 202-606-1506.
SUPPLEMENTARY INFORMATION: The Department of Defense (DoD) has
submitted a proposed demonstration project entitled ``Department of
Defense Acquisition Workforce Personnel Demonstration Project'' for
consideration under chapter 47 of title 5, United States Code.
The purpose of this project is to demonstrate a flexible and
responsive personnel system that will enhance the Department's ability
to attract, retain, and motivate a high-quality workforce. To this end,
the proposed project involves: (1) Expansion of the candidate selection
process; (2) establishment of three appointment authorities (permanent,
modified term, and temporary limited); (3) extended probationary period
for new employees in certain circumstances; (4) modified reduction-in-
force (RIF) procedures; (5) broadbanding; (6) simplified job
classification; (7) a contribution-based compensation and appraisal
system; (8) academic degree and certificate training; (9) sabbaticals;
and (10) a voluntary emeritus program.
Dated: March 18, 1998.
Office of Personnel Management.
Janice R. Lachance,
Director.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems with the Present System
C. Changes Required/Expected Benefits
D. Bargaining Requirements
E. Participating Organizations
F. Participating Employees
G. Project Design
III. Personnel System Changes
A. Hiring and Appointment Authorities
B. Broadbanding
C. Classification
D. Contribution-based Compensation and Appraisal System
E. Special Situations Related to Pay
F. Revised Reduction-In-Force (RIF) Procedures
G. Academic Degree and Certificate Training
H. Sabbaticals
IV. Training
A. Supervisors
B. Administrative Staff
C. Employees
V. Conversion
A. Conversion to the Demonstration Project
B. Conversion Back to the Former System
VI. Project Duration
VII. Evaluation Plan
VIII. Demonstration Project Costs
A. Step and Promotion Buy-Ins
B. Out-Year Project Costs
C. Personnel Policy Boards
D. Developmental Costs
IX. Required Waivers to Law and Regulations
A. Waivers to title 5, United States Code
B. Waivers to title 5, Code of Federal Regulations
I. Executive Summary
The project was designed by a Process Action Team (PAT) under the
uthority of the Under Secretary of Defense for Acquisition and
Technology, with the participation of and review by DoD and the Office
of Personnel Management (OPM). The purpose of the project is to enhance
the quality, professionalism, and management of the DoD acquisition
workforce through improvements in the efficiency and effectiveness of
the human resources management system. The project interventions will
strive to achieve the best workforce for the acquisition mission,
adjust the workforce for change, and improve workforce quality. The
project framework addresses all aspects of the human resources life-
cycle model.
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoD acquisition can be enhanced by allowing greater managerial
control over personnel processes and functions and, at the same time,
expand the opportunities available to employees through a more
responsive and flexible personnel system. The quality of DoD
acquisition activities, 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 that
line managers have over their human resources. This demonstration
project will provide managers, at the lowest practical level, the
authority, control, and flexibility
[[Page 14255]]
they need to achieve quality acquisition processes and quality
products. This project not only provides a system that retains,
recognizes, and rewards employees for their contribution, but also
supports their personal and professional growth.
B. Problems With the Present System
One of the goals of the Defense Acquisition Workforce Improvement
Act (DAWIA) is to create well-trained, multi-skilled professionals who
can completely and effectively manage multi-million-dollar programs.
Additionally, Integrated Product Teams (IPTs) require multi-skilled
personnel who can function in a dynamic team environment. The
acquisition professional who thinks ``outside the box,'' can operate
effectively in more than one functional area, and is willing to take
managed risks, will be the individual most likely to be a high
contributor to the team. Because of this, the current personnel system
must be re-engineered to provide incentives and rewards to employees
who exhibit these characteristics and who increase their contribution
to the acquisition mission accordingly. Hiring restrictions and overly
complex job classifications unduly exhaust valuable resources and
unnecessarily detract attention from the acquisition mission. Managers
must be able to compete with the private sector for the best talent and
be able to make timely job offers to potential employees. Those same
managers need the tools to reward employees for excellence, so that the
acquisition systems produced reflect the quality of such a workforce. A
contribution-based compensation system will help managers acquire these
tools and provide a forum in which to apply them. The acquisition
process is continually changing and is moving more toward a team
environment; therefore, managers must be given local control of
positions and their classification in order to move employees freely
within their organization when demanded by the mission, and to provide
developmental opportunities for employees. Additionally, managers have
only limited tools to shape the workforce to ensure continued growth of
new ideas, perspectives, and state-of-the art skills for the 21st
century. In summary, today's acquisition workforce management problems
appear to be largely outside the control of the acquisition managers.
The inflexibility of many of today's personnel processes and the
diffused authority, accountability, and approval chains throughout the
organizations, result in a workforce that cannot posture itself for the
rapidly changing technological and business environment. Also, the
current personnel system does not provide an environment that motivates
employees to continue to increase their contribution to the
organization and the mission. This demonstration is designed to provide
an encouraging environment that promotes the growth of all employees
and to improve the local acquisition managers' ability and authority to
manage the acquisition workforce effectively.
C. Changes Required/Expected Benefits
This project will demonstrate that a human resource system tailored
to the mission and needs of the DoD acquisition workforce will result
in: (a) Increased quality in the acquisition workforce and the products
it acquires; (b) increased timeliness of key personnel processes; (c)
workforce data trends toward higher retention rates of ``excellent
contributors'' and separation rates of ``poor contributors''; (d)
increased satisfaction of serviced DoD customers with the acquisition
process and its products; and (e) increased workforce satisfaction with
the personnel management system.
The DoD acquisition workforce demonstration program builds on the
features of demonstration projects at the Air Force Research
Laboratory, Department of the Navy (China Lake), and National Institute
of Standards and Technology (NIST). The long-standing Department of the
Navy (China Lake) and NIST demonstration projects have produced
impressive statistics on job satisfaction for their employees versus
that for the Federal workforce in general. Therefore, in addition to
the expected benefits mentioned above, it is anticipated that the DoD
acquisition workforce demonstration project will result in more
satisfied employees as a consequence of the demonstration's pay equity,
classification accuracy, and fairness of performance management. A full
range of measures will be collected during project evaluation (sections
VII and VIII.B).
D. Bargaining Requirements
Employees within a unit to which a labor organization is accorded
exclusive recognition under Chapter 71 of title 5, United States Code,
shall not be included as part of the demonstration project unless the
exclusive representative and the agency have entered into a written
agreement covering participation in and implementation of this project.
The parties may use mediation or any other mutually acceptable means to
resolve disputes over the implementation of the project with respect to
unit employees. Neither party may request the assistance of the Federal
Service Impasses Panel to resolve such disputes.
Either labor or management may unilaterally withdraw from
negotiations over the application of this demonstration project to
bargaining unit members at any time up until final agreement approval,
without such action being considered an unfair labor practice under
Section 7116 of title 5, United States Code for refusing to negotiate
in good faith.
Written agreements addressing the initial implementation of the
demonstration project to bargaining unit members are subject to higher-
level review and approval within DoD prior to implementation. This
review is to ensure local agreements comply with the requirements of
the demonstration project and any Service-wide implementing directives.
The decision of the higher-level review is not subject to third-party
intervention or review. Written agreements established under this
paragraph shall be considered ``local agreements subject to a national
or controlling agreement at a higher level'' as provided in 5 U.S.C.
7114(c)(4), and the approved demonstration project shall be considered
a ``national agreement'' under that section.
Once a written agreement is reached and approved allowing for the
local implementation of the project, all subsequent negotiations during
the life of the project shall be subject to binding impasse procedures
under Section 7119 of title 5, United States Code, or to alternative
impasse procedures agreed to by the parties.
E. Participating Organizations
The DoD Acquisition Workforce Personnel Demonstration Project will
include various organizational elements of the Air Force, Army, Navy,
Marine Corps, Defense Information Systems Agency, and Defense Logistics
Agency. Participating organizations are shown in Table 1.
[[Page 14256]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.026
[[Page 14257]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.027
[[Page 14258]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.028
[[Page 14259]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.029
[[Page 14260]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.030
[[Page 14261]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.031
[[Page 14262]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.032
[[Page 14263]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.033
[[Page 14264]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.034
[[Page 14265]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.035
[[Page 14266]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.036
[[Page 14267]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.037
[[Page 14268]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.038
[[Page 14269]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.039
[[Page 14270]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.040
[[Page 14271]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.041
F. Participating Employees
In determining the scope of the demonstration project, primary
consideration was given to the number and diversity of occupations with
the DoD acquisition workforce and the teams of personnel, more than
half of which consist of members of the acquisition workforce and the
remainder of which consist of supporting personnel assigned to work
directly with the acquisition workforce, as well as the need for
adequate development and testing of the Contribution-based Compensation
and Appraisal System (CCAS). 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 DoD activities with increased control and accountability for
their covered workforces, the decision was made to restrict development
efforts initially to covered General Schedule (GS) positions. Employees
covered under the Performance Management and Recognition System
Termination Act (pay plan code GM) are General Schedule employees and
are covered under the demonstration project.
Interns assigned to an organization participating in this
demonstration are included. Employees in the Student Temporary
Employment Program (summer hire and stay in school), all positions
designated as primary or secondary law enforcement officer (LEO)
positions (5 U.S.C. Secs. 5541(3)), and all positions in the Defense
Civilian Intelligence Personnel System (DCIPS) (10 U.S.C. Chapter 83)
are excluded from the Demonstration Project, even if their series and
organizations are listed in Tables 1 and 2. Additionally, this
demonstration project does not cover those positions that have
previously been identified for coverage by a science and technology
reinvention laboratory demonstration project, the U.S. Army Europe
(USAREUR) demonstration project, or the permanent demonstration project
at the Naval Command, Control, and Ocean Surveillance Center, San
Diego, CA and the Naval Air Warfare Center, Weapons Division, China
Lake, CA.
The job series included in the project are identified in Table 2.
To determine if your series and organization are included, locate your
organization in Table 1 and then find your job series in Table 2.
Additional questions, if any, regarding your specific position should
be addressed to OSD, Acquisition Workforce Personnel Demonstration
Project Office, or refer to the Web Site at www.crfpst.wpafb.af.mil/
Demo/.
[[Page 14272]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.042
[[Page 14273]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.043
[[Page 14274]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.044
[[Page 14275]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.045
[[Page 14276]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.046
[[Page 14277]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.047
[[Page 14278]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.048
[[Page 14279]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.049
Qualifying positions in other job series, located in participating
organizations, may be phased in during the course of the project, up to
the statutory maximum. However, prior OSD and OPM approval would be
required.
Current demographics and union representation for the positions
covered by this demonstration project are shown in Table 3.
[GRAPHIC] [TIFF OMITTED] TN24MR98.050
[[Page 14280]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.051
Of the 71,453 personnel assigned to this project, 46,477 are
represented by labor unions. Union representatives have been separately
notified about the project and participated in its development. DoD is
proceeding to fulfill its obligation to consult or negotiate with the
unions, as appropriate, in accordance with 5 U.S.C. 4703(f).
G. Project Design
In September 1996, a Process Action Team (PAT) was formed by the
Secretary of Defense in response to Section 4308 of the National
Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106; 10
U.S.C. Sec. 1701 note). The PAT was chartered to take full opportunity
of this legislation and to develop solutions for many DoD acquisition
workforce personnel issues. The team included managers from each of the
Military Services and DoD Components, as well as subject-matter experts
from civilian personnel and manpower. This team developed 13
initiatives that together represent sweeping changes to the entire
spectrum of human resource management for the DoD acquisition
workforce. Several initiatives were designed to assist DoD acquisition
activities 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 manage workforce realignment effectively and maintain
organizational excellence were also developed. These initiatives were
endorsed and accepted in total by the acquisition leadership.
After thorough study, the original 13 initiatives were refined.
Those appearing herein constitute the demonstration project for
purposes of 5 U.S.C. Sec. 4703. The remainder are subject to policies
established by OMB and DoD; waivers are being sought at those levels.
III. Personnel System Changes
A. Hiring and Appointment Authorities
1. Simplified, Accelerated Hiring
The complexity of the current system and various hiring
restrictions create delays; hamper management's ability to hire,
develop, realign, and retain a quality workforce that is reflective of
our nation's diversity; and inhibit a
[[Page 14281]]
quick response to economic and population changes. Line managers find
the complexity limiting as they attempt to accomplish timely
recruitment of needed skills. To compete with the private sector for
the best talent available and be able to make expeditious job offers,
managers need a process that is streamlined, easy to administer, and
allows for timely job offers. In order to create a human resource
management system that facilitates mission execution and organization
excellence, this demonstration project will respond to today's dynamic
environment of downsizing, restructuring, and installation closures by
obtaining, developing, utilizing, incentivizing, and retaining high-
performing employees. The project will provide a flexible system that
can reduce, restructure, or renew the workforce quickly to meet diverse
mission needs, respond to workload exigencies, and contribute to
quality products, people and workplaces.
Specifically, this part of the demonstration project will provide
simplified, accelerated hiring that allows participating organizations
to more rapidly appoint individuals to positions. Appropriate
recruitment methods and sources will include those that are likely to
yield quality candidates with the knowledge, skills, and abilities
necessary to perform the duties of the position.
(a) Delegated Examining Process
This demonstration project proposes a streamlined examining
process. An applicant's basic eligibility will be determined using
OPM's Operating Manual ``Qualifications Standards for General Schedule
Positions'' and DAWIA requirements as needed. Minimum eligibility
requirements will be those at the lowest equivalent GS grade of the
appropriate broadband level. Selective placement factors may be
established in accordance with OPM's Operating Manual ``Qualifications
Standards for General Schedule Positions'' when judged to be critical
to successful job performance. These factors will be communicated to
applicants and must be met for basic eligibility.
Candidates who meet the basic ``minimum'' qualifications will be
further evaluated based on knowledge, skills, and abilities which are
directly linked to the position(s) to be filled. Based on this
assessment, candidates will receive numerical scores of 70, 80, or 90.
No intermediate scores will be granted except for those eligibles who
are entitled to veterans' preference. Preference eligibles meeting
basic (minimum) qualifications will receive an additional five or ten
points (depending on their preference eligibility), added to the
minimum scores identified above. Candidates will be placed in one of
the quality groups based on their numerical score, including any
veterans' preference points: Basically Qualified (score of 70 and
above); Highly Qualified (score of 80 and above); or Superior (score of
90 and above). The names of preference eligibles will be entered ahead
of others having the same numerical score.
For scientific/engineering and professional positions at the basic
rate of pay equivalent to GS-9 and above, candidates will be referred
by quality groups in the order of the numerical ratings, including any
veterans' preference points. For all other positions, (i.e., other than
scientific/engineering and professional positions at the equivalent of
GS-9 and above), preference eligibles with a compensable service-
connected disability of ten percent or more who meet basic (minimum)
eligibility will be listed at the top of the highest group certified.
Selecting officials should be provided with a reasonable number of
qualified candidates from which to choose. All candidates in the
highest group will be certified. If there is an insufficient number of
candidates in the highest group, candidates in the next lower group may
be certified in rank order. When two or more groups are certified,
candidates will be identified by quality group (i.e., Superior, Highly
Qualified, Basically Qualified) in the order of their numerical scores.
Passing over any preference eligible(s) to select a nonpreference
eligible requires approval under current pass-over or objection
procedures.
(b) Scholastic Achievement Appointment
This project proposes to establish a Scholastic Achievement
Appointment that provides the authority to appoint candidates with
degrees to positions with positive education requirements. Candidates
may be appointed under this procedure if: (1) They meet the minimum
standards for the positions as published in OPM's Operating Manual
``Qualification Standards for General Schedule Positions,'' plus any
selective factors stated in the vacancy announcement; (2) the
occupation has a positive education requirement; (3) the candidate has
a cumulative grade point average (GPA) of 3.5 or better (on a 4.0
scale) in those courses in those fields of study that are specified in
the Qualification Standards for the occupational series and an overall
undergraduate GPA of at least 3.0 on a 4.0 scale; and (4) the
appointment is into a position at a pay level lower than the top step
of GS-7. Appointments may also be made at the equivalent of GS-9
through GS-11 on the basis of graduate education and experience, but
with the requirement of a GPA of at least 3.7 on a scale of 4.0 for
graduate courses in the field of study required for the occupation.
Veterans' preference procedures will apply when selecting candidates
under this authority. Preference eligibles who meet the above criteria
will be considered ahead of nonpreference eligibles. Passing over any
preference eligible(s) to select a nonpreference eligible requires OPM
approval under current objection procedures. This authority allows for
competitive appointment to positions at the broadband level II.
2. Appointment Authority
The DoD acquisition environment is seriously affected by variable
workload and mission changes that require flexibility not only in
workforce numbers but required skills and knowledge. The current
personnel system is unable to rapidly adapt the workforce to these
changes. This demonstration project will provide a method to expand and
contract the workforce as needed. Under this demonstration project
there will be three appointment options: permanent, temporary limited,
and modified term appointments. The permanent option will be the
existing career and career-conditional appointments. The temporary
limited option will be the existing temporary-authority-not-to-exceed-
one-year appointments. The modified term option will be a new
appointment authority that is based on the existing term appointment,
but may extend up to five years with a one-year locally approved
extension. Benefits and appeal rights are the same as those currently
afforded term employees.
Agencies may make a modified term appointment for a period that is
expected to last longer than one year, but not to exceed five years
with an option for one additional year, when the need for an employee's
service is not permanent.
Reasons for making a modified term appointment include, but are not
limited to, carrying out special project work; staffing new or existing
programs of limited duration; filling a position in activities
undergoing review for reduction or closure; and replacing permanent
employees who have been temporarily assigned to another
[[Page 14282]]
position, are on extended leave, or have entered military service.
Selections for modified term appointments will be made under
competitive examining processes. An agency may make a modified term
appointment without regard to the existence of an appropriate
certificate if there are insufficient eligibles on the appropriate
register and the selectee is:
(a) A person with eligibility for reinstatement;
(b) Any veteran who meets the qualifications for a veterans
readjustment appointment;
(c) A person eligible for career or career-conditional employment
under Secs. 315.601, 315.605, 315.606, 315.607,
315.609, 315.703, or 316.608;
(d) A former term employee of the agency who left prior to the
expiration of his/her appointment. Reappointment must be to a position
covered by the same term authority under which the individual
previously served, and service under such reappointment may not exceed
the expiration date of the original term appointment;
(e) A disabled veteran who has been retired from active military
service with a disability rating of 30 percent or more, or has been
rated by the Department of Veterans Affairs within the preceding year
as having a compensable, service-connected disability of 30 percent or
more;
(f) A person eligible for acquisition of competitive status for
career appointment under 5 U.S.C. 3304(c). (However, a term employee
does not acquire a competitive status on the basis of this term
appointment; nor does this term appointment extend or terminate the
employee's eligibility under 5 U.S.C. 3304(c)); or
(g) A temporary employee who is within reach for term appointment
to the same position from an appropriate register at the time of his/
her temporary appointment, or during subsequent service in the
position, provided that the register was being used for term
appointments at the time the employee was reached and he/she has been
continuously employed in the position since being reached.
An agency may place a modified term employee in any other modified
term position provided the employee meets the qualifying requirements
of that position. However, such reassignment will not serve to extend
the appointment beyond the original term appointment time period. The
qualifications of modified term employees will be determined according
to OPM's Operating Manual ``Qualifications Standards for General
Schedule Positions'' and applicable DAWIA requirements.
Employees hired under the modified term appointment authority are
in a temporary status but may be eligible for conversion to career-
conditional appointments. To be converted, the employee must (1) have
been selected for the term position under competitive procedures, with
the announcement specifically stating that the individual(s) selected
for the term positions(s) may be eligible for conversion to career-
conditional appointment at a later date; (2) have served two years of
continuous service in the term position; and (3) be selected under
merit promotion procedures for the permanent position.
Service under a modified term appointment immediately prior to a
permanent appointment shall count toward the probationary period
requirements provided contribution is adequate and the permanent
position is in the same career path as the modified term appointment.
3. Voluntary Emeritus Program
Under the demonstration project, Commanders/Directors will have the
authority to offer retired or separated individuals voluntary
assignments in their activities and to accept the gratuitous services
of those individuals. Voluntary emeritus program assignments are not
considered employment by the Federal Government (except as indicated
below). Thus, such assignments do not affect an employee's entitlement
to buy-outs or severance payments based on earlier separation from
Federal Service. This program may not be used to replace or substitute
for work performed by civilian employees occupying regular positions
required to perform the mission of the command.
The Voluntary Emeritus Corps will ensure continued quality
acquisition by allowing higher paid employees to accept retirement
incentives with the opportunity to retain a presence in the acquisition
community. The program will be beneficial during manpower reductions as
program managers, engineers, and other skilled acquisition
professionals accept retirement and return to provide a continuing
source of corporate knowledge and valuable on-the-job training or
mentoring to less experienced employees.
To be accepted into the Voluntary Emeritus Corps, a volunteer must
be recommended to the decision-making authority by one or more
acquisition managers. No one who applies is entitled to an emeritus
position. The decision-making authority must document the decision
process for each applicant (whether accepted or rejected) and retain
the documentation throughout the assignment. Documentation of
rejections will be maintained for two years.
To ensure success and encourage participation, the volunteer's
Federal retirement pay (whether military or civilian) will not be
affected while the volunteer is serving in emeritus status. Retired or
separated Federal employees may accept an emeritus position without a
``break in service'' or mandatory waiting period.
Voluntary Emeritus Corps volunteers will not be permitted to
monitor contracts on behalf of the Government but may participate on
any contract if no conflict of interest exists. The volunteer may be
required to submit a financial disclosure form annually and will not be
permitted to participate on any contracts where a conflict of interest
exists. The same rules that currently apply to source selection members
will apply to volunteers.
An agreement will be established among the volunteer, the decision-
making authority, and the Civilian Personnel Office. The agreement must
be finalized before the assumption of duties and shall include:
(a) a statement that the service provided is gratuitous, does not
constitute an appointment in the Civil Service, is without compensation
or other benefits except as provided for in the agreement itself, and
that, except as provided in the agreement regarding work-related injury
compensation, any and all claims against the Government because of the
service are waived by the volunteer;
(b) a statement that the volunteer will be considered a Federal
employee for the purposes of:
(i) Subchapter I of Chapter 81 of title 5, U.S.C. (using the
formula established in 10 U.S.C. Secs. 1588 for determination of
compensation) (work-related injury compensation);
(ii) Chapter 171 of title 28, U.S.C. (tort claims procedure);
(iii) Section 552a of title 5, U.S.C. (records maintained on
individuals); and
(iv) Chapter 11 of title 18, U.S.C. (conflicts of interest).
(c) The 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 activity (travel, administrative,
office space, supplies, etc.);
(f) A one-page statement of duties and experience;
(g) A statement specifying that no additional time will be added to
a volunteer's service credit for such
[[Page 14283]]
purposes as retirement, severance pay, and leave as a result of being a
member of the Voluntary Emeritus Corps;
(h) A provision allowing either party to void the agreement with
ten days' written notice; and
(i) The level of security access required.
4. Extended Probationary Period
For employees in the professional career path, the current one-year
probationary period does not always provide managers the time needed to
properly assess the contribution and conduct of new hires in the
acquisition environment. Often, new hires are required to attend
extensive training and/or educational assignments away from their
normal work site and outside the review of their supervisors. A means
of extending the opportunity for management to review and evaluate the
contribution and potential of new hires so assigned is needed.
Expansion of the current one-year probationary period will afford
management better control over the quality of employees required to
meet mission needs and provide sufficient opportunity to evaluate
contribution during the beginning of an acquisition career.
All newly hired permanent career-conditional employees in the
professional career path may be subject to an extension of their
probationary period equal to the length of any educational/training
assignment that places the employee outside normal supervisory review.
The extended probationary period could apply to non-status hires, i.e.,
new hires or those who do not have reemployment or reinstatement
eligibility. An employee appointed prior to the implementation date of
the demonstration project will not be affected. Aside from extending
the probationary period, all other features of the current probationary
period are retained.
Probationary employees will be terminated when they fail to
demonstrate proper conduct, technical competency, and/or adequate
contribution for continued employment. When a supervisor decides to
terminate an employee serving a probationary period because his/her
work contribution or conduct during that period fails to demonstrate
fitness or qualifications for continued employment, the supervisor
shall terminate the employee's 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 supervisor's conclusions as to the
inadequacies of the employee's contribution or conduct.
Service under modified term appointment with no break in service
before a permanent appointment made under this demonstration project
shall count toward the probationary period requirements, provided that
the contribution is adequate and the permanent position is in the same
career path as the modified term appointment.
B. Broadbanding
1. Broadband Levels
The 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. The system will initially cover only those
positions designated by the Defense Acquisition Workforce Improvement
Act (DAWIA) in the Department of Defense acquisition workforce and
those positions that support the acquisition workforce.
Occupations with similar characteristics will be grouped together
into three career paths with broadband levels designed to facilitate
pay progression and to allow for more competitive recruitment of
quality candidates at differing rates. Competitive promotions will be
less frequent and movement through the broadband levels will be a more
seamless process than under current procedures. Like the previous
broadband systems used at the Department of the Navy (China Lake) and
the National Institute of Standards and Technology (NIST) permanent
demonstration projects, advancement within the system is contingent on
merit.
There will be four broadband levels in the demonstration project,
labeled I, II, III, and IV. Levels I through IV will include the
current grades of GS-01 through GS-15. These are the grades in which
the DoD acquisition workforce employees are currently found. Comparison
to the GS grades was used in setting the upper and lower dollar limits
of the broadband levels; however, once the employees are moved into the
demonstration project, GS grades will no longer apply.
The three career paths and their associated broadband levels are as
follows:
[[Page 14284]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.052
[[Page 14285]]
Generally, employees will be converted into the broadband level
that includes their permanent GS grade of record. 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 Schedule pay
increases, the minimum and maximum rates of the broadband levels will
also move up. Individual employees receive pay increases based on their
appraisals under the Contribution-based Compensation and Appraisal
System (CCAS). Since pay progression through the levels depends on
contribution, there will be no scheduled within-grade increases (WGIs)
or scheduled General Schedule increases for employees once the
broadbanding system is in place. Special salary rates will no longer be
applicable to demonstration project employees. Employees will be
eligible for the locality pay of their geographical area (see section
V, paragraph A, ``Conversion to the Demonstration Project'') with the
exception of those employees stationed at an overseas location.
Newly hired personnel entering the system will be employed at a
level consistent with the expected basic qualifications for the level,
as determined by rating against qualifications standards. The hiring
official will determine the starting salary based upon available labor
market considerations relative to special qualifications requirements,
scarcity of qualified applicants, programmatic urgency, and education/
experience of the new candidates.
The use of broadbanding provides a stronger link between pay and
contribution to the mission of the organization. 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.
2. Simplified Assignment Process
Today's environment of downsizing and workforce transition mandates
that the organization have maximum flexibility to assign individuals.
Broadbanding enables the organization to have the maximum flexibility
to assign an employee within broad descriptions, consistent with the
needs of the organization and the individual's qualifications.
Assignments may be accomplished as realignments and do not constitute a
position change. For instance, a technical expert can be assigned to
any project, task, or function requiring similar technical expertise.
Likewise, a manager could be assigned to manage any similar function or
organization consistent with that individual's qualifications. This
flexibility allows broader latitude in assignments and further
streamlines the administrative process and system.
C. Classification
1. Occupational Series
The present General Schedule classification system has 434
occupational series that are divided into 22 occupational families.
The acquisition personnel demonstration project currently covers
numerous series in the 22 occupational families. 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 demonstration
project.
2. Classification Standards
The present system of OPM classification standards will be used for
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 CCAS broadband level
descriptors, as aligned in the three career paths, will be used for the
purpose of broadband level determination. These descriptors are derived
from the OPM Primary Classification Standard. Under the demonstration
project, each broadband level is represented by a set of descriptors.
This eliminates the need for the use of grading criteria in OPM
classification standards. The broadband level descriptors can be found
in section D.
3. Classification Authority
Under the demonstration, commanders (or equivalent) will have
delegated classification authority and may re-delegate this authority
to subordinate management levels. Re-delegated classification approval
must be exercised at least one management level above the first-line
supervisor of the employee or position under review. First-line
supervisors will provide classification recommendations. Personnel
specialists will provide on-going consultation and guidance to managers
and supervisors throughout the classification process.
4. Position Requirements Document
Under the demonstration project's classification system, a new
position requirements document (PRD) will replace the current agency-
developed position description form. The PRD will combine the position
information, staffing requirements, and contribution expectations into
a one- or two-page document. The new PRD will include a description of
job-specific information, reference the CCAS broadband level
descriptors for the assigned broadband level, and provide other
information pertinent to the job. Supervisors will use a computer-
assisted process to produce the PRD. The objectives in developing the
new PRD are to: (a) simplify the descriptions and the preparation
process through automation; (b) provide more flexibility in work
assignments; and (c) provide a more useful tool for other functions of
personnel management, e.g., recruitment, assessment of contribution,
employee development, and reduction in force.
5. Fair Labor Standards Act
Fair Labor Standards Act (FLSA) exemption or non-exemption
determinations will be made consistent with criteria found in 5 CFR
(Code of Federal Regulations) Part 551.
All employees are covered by the FLSA unless they meet criteria for
exemption. The duties and responsibilities outlined in the broadband
level descriptors for each pay band will be compared to the FLSA
criteria and the tentative conclusions programmed into the automated
classification system so that the system will be able to generate the
FLSA coverage based upon the user's selection of occupational family,
pay band, and supervisory responsibility. Each position will be
evaluated on a case-by-case basis by comparing the duties and
responsibilities assigned, the broadband level descriptors for each
broadband level, and the 5 CFR Part 551 FLSA criteria.
6. Classification Appeals
An employee may appeal the occupational series, title, or broadband
level of his or her own position at any time. An employee must formally
raise the areas of concern to supervisors in the immediate chain of
command, either verbally or in writing. If an employee is not satisfied
with the supervisory response, he or she may then appeal to the DoD
appellate level. If an employee is not satisfied with the DoD response,
he or she may appeal to the Office of Personnel Management only after
DoD
[[Page 14286]]
has rendered a decision under the provisions of the demonstration
project. Appellate decisions from OPM are final and binding on all
administrative, certifying, payroll, disbursing, and accounting
officials of the Government. Time periods for case processing under
title 5 apply.
An employee may not appeal the accuracy of the position
requirements document, the demonstration project classification
criteria, or the pay-setting criteria; the propriety of a salary
schedule; or matters grievable under an administrative or negotiated
grievance procedure or an alternative dispute resolution procedure.
The evaluation of classification appeals under this demonstration
project is based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the
Civilian Personnel Office/Human Resources Office (CPO/HRO) providing
personnel service and will include copies of appropriate demonstration
project criteria.
D. Contribution-based Compensation and Appraisal System
1. Overview
The purpose of the Contribution-based Compensation and Appraisal
System (CCAS) is to provide an equitable and flexible method for
appraising and compensating the DoD acquisition workforce. It is
central to the objectives of the Defense Acquisition Workforce
Improvement Act (DAWIA) and the National Performance Review, and will
correlate individual compensation to organizational mission
contribution. CCAS allows for more employee involvement in the
performance appraisal process, increases communication between
supervisors and employees, promotes a clear accountability of
contribution by each employee, facilitates employee progression tied to
organizational contribution, and provides an understandable basis for
salary changes. Most of the funds previously allocated for performance-
based awards will be reserved for distribution under the CCAS system,
based on employee contribution.
CCAS is a contribution-based appraisal system that goes beyond a
performance-based rating system. That is, it measures the employee's
contribution to the goals of the organization, rather than how well the
employee performed a job as defined by a performance plan. Past
experience with the existing civilian performance appraisal system
indicates that performance plans are often tailored to the individual's
level of previous performance. Hence, an employee may have been
rewarded by salary step increases for accomplishing a satisfactory
level of performance against a diminishing set of responsibilities.
CCAS promotes salary adjustment decisions made on the basis of an
individual's overall annual contribution when compared to all other
employees and level of compensation. Therefore, larger than average
salary increases are possible for employees who are determined to be
``under-compensated,'' and smaller than average increases are permitted
for employees who are deemed to be ``over-compensated'' in relation to
their organizational contributions.
An employee's performance is a component of contribution that
influences the ultimate Overall Contribution Score (OCS). Contribution
is measured by using a set of factors, discriminators, and descriptors,
each of which is relevant to the success of a DoD acquisition center or
unit. Taken together, these factors, discriminators, and descriptors
capture the critical content of jobs in each career path. The factors,
discriminators, and descriptors may not be modified or supplemented.
These factors, discriminators, and descriptors are the same as those
used to classify a position at the appropriate broadband level.
The six (6) factors are: (1) Problem Solving, (2) Teamwork/
Cooperation, (3) Customer Relations, (4) Leadership/Supervision, (5)
Communication, and (6) Resource Management. These factors were chosen
for evaluating the yearly contribution of DoD acquisition personnel in
the three career paths: (1) Business Management & Technical Management
Professional, (2) Technical Management Support, and (3) Administrative
Support. Each factor has multiple levels of increasing contribution
corresponding to the broadband levels. Each factor contains descriptors
for each respective level within the relevant career path.
CAREER PATH: (1) BUSINESS MANAGEMENT & TECHNICAL MANAGEMENT
PROFESSIONAL
FACTOR: 1.--PROBLEM SOLVING
FACTOR DESCRIPTION
This factor describes/captures personal and organizational problem-
solving results. EXPECTED PERFORMANCE CRITERIA (Applicable to all
contributions at all levels): Work is timely, efficient, and of
acceptable quality. Completed work meets project/program objectives.
Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14287]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.053
[[Page 14288]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.054
FACTOR: 2.--TEAMWORK/COOPERATION
FACTOR DESCRIPTION
This factor, applicable to all teams, describes/captures individual
and organizational teamwork and cooperation.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Personal and organizational interactions exhibit and foster cooperation
and teamwork. Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14289]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.055
[[Page 14290]]
FACTOR: 3.--CUSTOMER RELATIONS
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of personal and
organizational interactions with customers (anyone to whom services or
products are provided), both internal (within an assigned organization)
and external (outside an assigned organization).
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Personal and organizational interactions enhance customer relations and
actively promote rapport with customers. Flexibility, adaptability, and
decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.056
[[Page 14291]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.057
FACTOR: 4.--LEADERSHIP/SUPERVISION
FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Leadership and/or supervision effectively promotes commitment to
mission accomplishment. Flexibility, adaptability, and decisiveness are
exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.058
[[Page 14292]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.059
[[Page 14293]]
FACTOR: 5.--COMMUNICATION
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of oral/written
communications.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Communications are clear, concise, and at appropriate level.
Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.060
[GRAPHIC] [TIFF OMITTED] TN24MR98.061
[[Page 14294]]
FACTOR: 6.--RESOURCE MANAGEMENT
FACTOR DESCRIPTION
This factor describes/captures personal and organizational
utilization of resources to accomplish the mission. (Resources include,
but are not limited to, personal time, equipment and facilities, human
resources, and funds.)
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Resources are utilized effectively to accomplish mission. Flexibility,
adaptability, and decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.062
[[Page 14295]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.063
CAREER PATH: (2) TECHNICAL MANAGEMENT SUPPORT
FACTOR: 1.--PROBLEM SOLVING
FACTOR DESCRIPTION
This factor describes/captures personal and organizational problem-
solving.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Completed work meets project/program objectives. Flexibility,
adaptability, and decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14296]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.064
[[Page 14297]]
FACTOR: 2.--TEAMWORK/COOPERATION
FACTOR DESCRIPTION
This factor describes/captures individual and organizational
teamwork and cooperation.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Personal and organizational interactions exhibit and foster cooperation
and teamwork. Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.065
[GRAPHIC] [TIFF OMITTED] TN24MR98.066
FACTOR: 3.--CUSTOMER RELATIONS
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of personal and
organizational interactions with customers (anyone to whom services or
products are provided), both internal (within an assigned organization)
and external (outside an assigned organization).
[[Page 14298]]
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Personal and organizational interactions enhance customer relations and
actively promote rapport with customers. Flexibility, adaptability, and
decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[GRAPHIC] [TIFF OMITTED] TN24MR98.067
[[Page 14299]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.068
FACTOR: 4.--LEADERSHIP/SUPERVISION
FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Leadership and/or supervision effectively promotes commitment to
mission accomplishment. Flexibility, adaptability, and decisiveness are
exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14300]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.069
FACTOR: 5.--COMMUNICATION
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of oral/written
communications.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality.
Communications are clear, concise, and at appropriate level.
Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14301]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.070
[GRAPHIC] [TIFF OMITTED] TN24MR98.071
FACTOR: 6.--RESOURCE MANAGEMENT
FACTOR DESCRIPTION
This factor describes/captures personal and organizational
utilization of resources to accomplish the mission.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality. Resources are
utilized effectively to accomplish mission. Flexibility, adaptability,
and decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14302]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.072
[GRAPHIC] [TIFF OMITTED] TN24MR98.073
CAREER PATH: (3) ADMINISTRATIVE SUPPORT
FACTOR: 1.--PROBLEM SOLVING
FACTOR DESCRIPTION
This factor describes/captures personal and organizational problem
solving.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality. Completed
work meets project/program objectives. Flexibility, adaptability, and
decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14303]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.074
[GRAPHIC] [TIFF OMITTED] TN24MR98.075
FACTOR: 2.--TEAMWORK/COOPERATION
FACTOR DESCRIPTION
This factor describes/captures individual and organizational
teamwork and cooperation.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality. Personal and
organizational interactions exhibit and foster cooperation and
teamwork. Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14304]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.076
FACTOR: 3.--CUSTOMER RELATIONS
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of personal and
organizational interactions with customers (anyone to whom services or
products are provided), both internal (within an assigned organization)
and external (outside an assigned organization).
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality. Personal and
organizational interactions enhance customer relations and actively
promote rapport with customers. Flexibility, adaptability, and
decisiveness are exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14305]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.077
FACTOR: 4.--LEADERSHIP/SUPERVISION
FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Leadership and/or supervision effectively promotes commitment to
mission accomplishment. Flexibility, adaptability, and decisiveness are
exercised appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14306]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.078
FACTOR: 5.--COMMUNICATION
FACTOR DESCRIPTION
This factor describes/captures the effectiveness of oral/written
communications.
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels):
Work is timely, efficient, and of acceptable quality.
Communications are clear, concise, and at appropriate level.
Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14307]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.079
FACTOR: 6.--RESOURCE MANAGEMENT
FACTOR DESCRIPTION
This factor describes/captures personal and organizational
utilization of resources to accomplish the mission. (Resources include,
but are not limited to, personal time, equipment and facilities, human
resources, and funds.)
EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at
all levels): Work is timely, efficient, and of acceptable quality.
Available resources are utilized effectively to accomplish mission.
Flexibility, adaptability, and decisiveness are exercised
appropriately.
Descriptors indicate the type of contribution appropriate for the
high end of each level. Descriptors are not to be used individually to
assess contributions, but rather are to be taken as a group to derive a
single evaluation of the factor.
[[Page 14308]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.080
2. Normal Pay Range (NPR)
The Contribution-based Compensation and Appraisal System (CCAS)
integrated pay schedule provides a direct link between increasing
levels of contribution and increasing salary. This is shown by the
graph in Figure 1. The horizontal axis spans from 0 to the maximum
contribution score of 100. The vertical axis spans from zero dollars to
the dollar equivalent of GS-15, step 10. This encompasses the full
salary range paid under this demonstration; GS-1, step 1 through GS-15,
step 10 for Calendar Year 1998 (CY98). (Note: Figure 1 currently
depicts CY98. Each year the rails for the NPR are adjusted based on the
General Schedule pay increase under 5 U.S.C. 5303.) The area between
the upper and lower rail is considered the normal pay range; employees
whose annual overall contribution score (OCS) plotted against their
base salary falls on or within the rails are considered ``appropriately
compensated.'' Employees whose salaries fall below the NPR for their
assessed contribution score are considered ``under-compensated,'' and
those falling above the NPR are considered ``over-compensated.'' The
goal of CCAS is to make pay consistent with employees' contributions to
the mission of the organization.
[[Page 14309]]
Figure 1. Normal Pay Range
[GRAPHIC] [TIFF OMITTED] TN24MR98.081
The NPR was established using the following parameters:
1. The lowest possible score is an OCS of 0, which equates to the
lowest salary paid under this demonstration, GS-1, step 1.
2. The highest possible score is an OCS of 100, which equates to
the highest salary paid under this demonstrations, GS-15, step 10.
3. Changes in OCS correspond to a constant percentage change in
salary along the rails.
4. The upper and lower rails encompass an area of +/-4.0 OCS
points, or +/-8.0 percent in terms of salary, relative to the points
established in parameters 1 and 2, above.
FORMULAE
Given these constraints, the formulae for the rails found in Figure
1 are:
Salary upper rail = 13997* (1.020043) OCS
Salary lower rail = 11923* (1.020043) OCS
The integrated pay schedule and the NPR are the same for all the
career paths. What vary among the career paths are the beginnings and
endings of the broadband levels. The minimum and maximum numerical OCS
values and associated base salaries for each broadband level by career
path are provided in Table 4. These minimum and maximum breakpoints
represent the lowest and highest General Schedule (GS) salary rate for
the grades banded together and, therefore, the minimum and maximum
salaries possible for each level. Each year, the rails for the NPR are
adjusted based on the General Schedule pay increase granted to the
Federal workforce. Locality salary adjustments are not included in the
NPR but are incorporated in the demonstration participants' pay.
Employees will enter the demonstration project without a loss of
pay (see section V) and without a CCAS score. The first CCAS score will
result from the first annual CCAS assessment process. Until then, no
employee is either under-compensated or over-compensated. Employees,
however, may determine their expected contribution range by locating
the intersection of their salary with the rails of the NPR. Future CCAS
assessments may alter an employee's position relative to these rails.
[[Page 14310]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.082
3. CCAS Appraisal Process
The annual appraisal cycle begins on October 1 and ends on
September 30 of the following year. At the beginning of the annual
appraisal period, the broadband level descriptors will be provided to
employees so that they know the basis on which their contribution will
be assessed for their pay pool. (A pay pool is a group of employees
among whom the CCAS dollars are distributed. This might be all the
employees in a division or directorate. The local commander determines
the pay pool structure.) At that time, employees will be advised that
all factors are critical. Key terms such as ``team'' and ``customer''
will be defined or clarified. Supervisor and employee discussion of
specific work assignments, standards, objectives, and the employee's
contributions within the CCAS framework should be conducted on an
ongoing basis.
At the end of the annual appraisal period, the immediate supervisor
(rating official) meets with his/her employees, requesting them to
summarize their contributions for each factor. From employees' inputs
and his/her own knowledge, the rating official identifies for each
employee the appropriate contribution level (1, 2, 3, or 4) for each
factor. The rating officials (including second-level supervisor) meet
to ensure consistency and equity of the contribution ratings. Then the
rating officials calculate the overall contribution scores (OCS).
To determine the OCS, numerical values are assigned based on the
contribution levels of individuals, using the ranges shown in Table 5.
Generally, the OCS is calculated by averaging the numerical values
assigned for each of the six factors. (All OCSs will be rounded to the
nearest whole number.) However, at the discretion of the pay pool
manager, different weights may be applied to the factors to produce a
weighted average, provided that the weights are applied uniformly
across the pay pool and employees are advised in advance, i.e., at the
beginning of the
[[Page 14311]]
rating period. Weighting may not result in any factor becoming zero.
The rating officials (including second-level supervisor) meet again
to review the OCS for all employees, correcting any inconsistencies
identified and making the appropriate adjustments in the factor
ratings, and placing the employees in rank order.
[GRAPHIC] [TIFF OMITTED] TN24MR98.083
The pay pool panel (pay pool manager and the rating officials in
the pay pool who report directly to him/her) conducts a final review of
the OCS and the recommended compensation adjustments for the pay pool
members. The pay pool panel has the authority to make OCS adjustments,
after discussion with the initial rating officials, to ensure equity
and consistency in the ranking of all employees.
Final approval of OCS rests with the pay pool manager, the
individual within the organization responsible for managing the CCAS
process. The OCS, as approved by the pay pool manager, becomes the
rating of record. Rating officials will communicate the factor scores
and OCS to each employee and discuss the results.
If on October 1, the employee has served under CCAS for less than
six months, the rating official will wait for the subsequent annual
cycle to assess the employee. The first CCAS appraisal must be rendered
within 18 months after entering the demonstration project.
When an employee cannot be evaluated readily by the normal CCAS
appraisal process due to special circumstances that take the individual
away from normal duties or duty station (e.g., long-term full-time
training, active
[[Page 14312]]
military duty, extended sick leave, leave without pay, etc.), the
rating official will document the special circumstances on the
appraisal form. The rating official will then determine which of the
following options to use:
(a) Re-certify the employee's last contribution appraisal; or
(b) Presume the employee is contributing consistently with his/her
pay level and will be given the full general increase.
Pay adjustments will be made on the basis of the CCAS appraisal or
substitute determination and the employee's rate of basic pay. Pay
adjustments are subject to pay-out rules discussed in section III D 5.
Final pay determinations will be made at the pay pool manager's level.
CCAS scores can only be adjusted after discussion with the rating
official.
Pay adjustments will be documented by SF-50, Notification of
Personnel Action. For historical and analytical purposes, the effective
date of CCAS assessments, actual appraisal scores, actual salary
increases, amounts contributed to the pay pool, and applicable
``bonus'' amounts will be maintained for each demonstration project
employee.
4. Pay Pools
The pay pool structure and allocated funds are under the authority
of the local commander or equivalent. The following minimal guidelines
will apply: (a) a pay pool is based on the organizational structure and
should include a range of salaries and contribution levels; (b) a pay
pool should be large enough to constitute a reasonable statistical
sample, i.e., not less than 35 individuals (when possible) or more than
300 individuals; (c) a pay pool must be large enough to include a
second level of supervision, since the CCAS process uses a group of
supervisors in the pay pool to determine OCS and recommended salary
adjustments; and (d) neither the pay pool manager nor the supervisors
within a pay pool will recommend or set their own individual pay
levels.
The amount of money available within a pay pool is determined by
the general pay increase and the money that would have been available
for quality step increases, within-grade increases, awards
(performance-based awards as defined in 5 U.S.C. 4505(a)), promotions
between grades encompassed in the same broadband level, and other
appropriate factors (reference section VIII B). However, the awards
money portion cannot be used for increments to salary. The dollars to
be included in the pay pool will be computed based on the salaries of
the employees in the pay pool as of September 30 each year.
5. Salary Adjustment Guidelines
After the initial assignment into the CCAS, employees' yearly
contributions will be determined by the CCAS process described above,
and their overall contribution scores versus their current rate of
basic pay will be plotted on a graph along with the NPR (see Figure 2).
The position of those points relative to the upper and lower rails of
the NPR gives a relative measure of the compensation (salary) versus
contribution (OCS). Employees fall into one of three categories: under-
compensated (Employee A), appropriately compensated (Employee B), or
over-compensated (Employee C). Depending on the category into which
each employee falls, he/she is eligible for up to three forms of
additional compensation. The pay pool panel has the option of awarding
the employee up to the full General Schedule pay increase (as
authorized by Congress and the President), a contribution rating
increase (an increase in base salary), and/or a contribution award (a
lump-sum payment that does not affect base salary). Employees on
retained rate in the demonstration plan will receive pay adjustments in
accordance with 5 U.S.C. 5363 and 5 CFR 536.101. An employee receiving
a retained rate is not eligible for a contribution rating increase,
since such increases are limited by the maximum salary rate for the
employee's broadband level. An outline of compensation eligibility by
contribution category is given in Table 6.
[[Page 14313]]
Figure 2. CCAS COMPENSATION CATEGORIES
[GRAPHIC] [TIFF OMITTED] TN24MR98.084
[[Page 14314]]
In general, those employees who fall in the under-compensated
category of the NPR should expect to receive greater percentage salary
increases than those who fall in the over-compensated category. Over
time, people will migrate closer to the normal pay range and receive a
salary appropriate for their level of contribution.
Employees whose OCS would result in awarding a contribution rating
increase such that the salary exceeds the maximum salary for their
current broadband level may receive a contribution award equaling the
difference.
The contribution rating increase fund includes what are now within-
grade increases, quality step increases, and promotions between grades
encompassed in the same broadband level. The fund will be set at not
less than two percent of the activity's total salary budget (2.4
percent for the first year). This figure will be adjusted as necessary
to maintain cost discipline over the life of the demonstration project.
The amount of money available to each pay pool is determined annually
by the local commander. The general pay increase fund and the
contribution rating increase fund may be transferred to another
category, but the contribution award fund may not be transferred.
The contribution award fund includes what were formerly performance
awards and will be used for awards given under the CCAS process. The
fund will be set at not less than one percent of the activity's total
salary budget. This fund will not exceed 90 percent of the total awards
budget so as to allow for other awards not related to the CCAS process,
e.g., on-the-spot awards and group awards, which will continue to be
encouraged by management to promote excellence in acquisition and
attainment of organizational goals. For the first year this fund will
be set at 1.3 percent.
Each pay pool manager will set the necessary guidelines for pay
adjustments in the pay pool. Decisions will be consistent within the
pay pool, reflect cost discipline over the life of the demonstration
project, and be subject to command review. The maximum available pay
rate under this demonstration project will be the rate for a GS-15,
step 10.
6. Movement Between Broadband Levels
It is the intent of the demonstration project to have career growth
accomplished through the broadband levels. Movement within a broadband
level will be determined by contribution and salary following the CCAS
pay-out calculation. Movement to a higher broadband level is normally a
competitive action, based on Office of Personnel Management
qualifications standards. Movement to a lower broadband level may be
voluntary or involuntary.
Broadband levels were derived from salaries of the banded GS
grades. The lowest salary of any given broadband level is that for step
1 of the lowest GS grade in that broadband level. Likewise, the highest
salary of any given broadband level is that for step 10 of the highest
GS grade in that broadband level. There is a natural overlap in
salaries in the GS grades that also occurs in the broadband system.
Since the OCS is directly related to salaries, there is also an overlap
between OCS across broadband levels.
Under the demonstration project, managers are provided greater
flexibility in assigning duties by moving employees between positions
within their broadband level. If there are vacancies at higher levels,
employees may be considered for promotion to those positions in
accordance with competitive selection procedures. Noncompetitive
promotion capabilities in the current system will remain viable in the
demonstration.
Under the approved competitive selection 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 broadband
level position according to the contribution-based reduction-in-pay or
removal procedures discussed in section III E 2.
7. Implementation Schedule
The 1998 employee annual appraisal will be done according to
Component performance plan rules in effect at the time of the 1998
close-out. Employees will be moved by personnel action into the
demonstration project and into the appropriate broadband level between
October 1998 and February 1999 following an implementation plan
approved by DoD and OPM. Employees will receive base pay adjustments
for accrued within-grade increases and career ladder promotions at the
time they are moved. All employees under the demonstration project will
receive the January 1999 general pay increase.
8. CCAS Grievance Procedures
An employee may not grieve the pay received under CCAS except where
the employee is covered by a negotiated grievance procedure that
includes grievances over CCAS pay.
An employee may grieve the OCS (rating of record). If an employee
is covered by a negotiated grievance procedure that includes grievances
over appraisal scores, then the employee must resolve a grievance over
an appraisal score under that procedure (i.e., that procedure is the
sole and exclusive procedure for resolving such grievances). If an
employee is not in a bargaining unit, or is in a bargaining unit but
grievances over appraisal scores are not covered under a negotiated
grievance procedure, then the employee may use the administrative
grievance procedure (5 CFR Part 771) with supplemental instructions
described in the following paragraph.
The employee will submit the grievance first to the rating
official, who will submit a recommendation to the pay pool panel. The
pay pool panel may accept the rating official's recommendation or reach
an independent decision. In the event that the pay pool panel's
decision is different from the rating official's recommendation,
appropriate justification will be provided. The pay pool panel's
decision is final unless the employee requests reconsideration by the
next higher official to the pay pool manager. That official would then
render the final decision on the grievance.
9. Using the CCAS Rating as Additional Service Credit During Reduction
in Force
Table 7 illustrates the years of retention service credit
associated with appraisal results:
[[Page 14315]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.085
[[Page 14316]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.086
E. Special Situations Related to Pay
1. Change in Assignment
[[Page 14317]]
The CCAS concept, using the broadbanding structure, provides
flexibility in making assignments. In many cases an employee can be
assigned, without change in their rate of basic pay, within broad
descriptions, and, at the same time, consistent with the needs of the
organization and commensurate with the individual's qualifications.
Subsequent organizational assignments to projects, tasks, or functions
requiring the same level and area of expertise and the same
qualifications would not constitute an assignment outside the scope or
coverage of the current level descriptors. In most cases, such
assignments would be within the factor descriptors and could be
accomplished without the need to process a personnel action. Assignment
resulting in series change or competitive level change shall be
accomplished by official personnel action. Thus, this approach allows
for broader latitude in organizational assignments and streamlines the
administrative process. Rules for specific types of assignments under
CCAS follow.
(a) Competitive, Noncompetitive, and Temporary Promotions. When an
employee is promoted to a higher broadband level, the salary upon
promotion will be at least six percent, but not more than 20 percent,
greater than the employee's current salary. However, if the minimum
rate of the new broadband level is more than 20 percent greater than
the employee's current salary, then the minimum rate of the new
broadband level is the new salary. The employee's salary may not exceed
the salary range of the new broadband level.
(b) Competitive Selection for a Position with Higher Potential
Salary. When an employee is competitively selected for a position with
a higher target broadband level than previously held (e.g., Upward
Mobility), upon movement to the new position the employee will receive
the salary corresponding to the minimum of the new broadband level or
the existing salary, whichever is greater.
(c) Voluntary Change to Lower Broadband Level/Change in Career Path
(except RIF). When an employee accepts a voluntary change to lower
broadband level or different career path, salary may be set at any
point within the broadband level to which appointed, except that the
new salary will not exceed the employee's current salary or the maximum
salary of the broadband level to which assigned, whichever is lower.
(d) Involuntary Change to Lower Broadband Level Without Reduction
in Pay Due to Contribution-based Action. Due to inadequate
contribution, an employee's salary may fall below the minimum rate of
basic pay for the broadband level to which he/she is assigned. When an
employee is changed to a lower broadband level due to such a situation,
this movement is not considered an adverse action.
(e) Involuntary Reduction in Pay, to Include Change to Lower
Broadband Level and/or Change in Career Path Due to Adverse Action. An
employee may receive a reduction in pay within his/her existing
broadband level and career path, be changed to a lower broadband level,
and/or be moved to a new position in a different career path due to an
adverse action. In these situations, the employee's salary will be
reduced by at least 6 percent, but will be set no lower than the
minimum salary of the broadband level to which assigned. Employees
placed into a lower broadband due to adverse action are not entitled to
pay retention.
(f) Reduction-in-Force (RIF) Action (including employees who are
offered and accept a vacancy at a lower broadband level or in a
different career path). The employee is entitled to pay retention if
all title 5 conditions are met.
(g) Return to Limited or Light Duty from a Disability as a Result
of Occupational Injury to a Position in a Lower Broadband Level or to a
Career Path with Lower Salary Potential than Held Prior to the Injury.
The employee is entitled indefinitely to the salary held prior to the
injury and will receive full general and locality pay increases.
2. Contribution-based Reduction-in-Pay or Removal Actions
CCAS is a contribution-based appraisal system that goes beyond a
performance-based rating system. Contribution is measured against six
critical factors corresponding to the three career paths, each having
multiple levels of increasing contribution. (For the purposes of this
section, critical factors are synonymous with critical elements as
referenced in 5 U.S.C. Chapter 43.) This section applies to reduction
in pay or removal of demonstration project employees based solely on
inadequate contribution. Inadequate contribution in any one factor at
any time during the appraisal period is considered grounds for
initiation of reduction-in-pay or removal action. The following
procedures replace those established in 5 U.S.C. 4303 pertaining to
reductions in grade or removal for unacceptable performance except with
respect to appeals of such actions. 5 U.S.C. 4303(e) provides the
statutory authority for appeals of contribution-based actions. As is
currently the situation for performance-based actions taken under 5
U.S.C. 4303, contribution-based actions shall be sustained if the
decision is supported by substantial evidence and the Merit Systems
Protection Board shall not have mitigation authority with respect to
such actions. The separate statutory authority to take contribution-
based actions under 5 U.S.C. 75, as modified in the waiver section of
this notice (section IX), remains unchanged by these procedures.
When an employee's contribution in any factor is at or less than
the mid-point of the next lower broadband level (or a factor score of
zero for broadband level 1 employees), the employee is considered to be
contributing inadequately. In this case, the supervisor must inform the
employee, in writing, that unless the contribution increases to a score
above the midpoint of this next lower broadband level, and is sustained
at this level, the employee may be reduced in pay or removed. For
broadband level 1 employees, a factor score that increases to and is
sustained above zero is determined to be adequate.
This written notification will include a contribution improvement
plan (CIP) which outlines specific areas in which the employee is
inadequately contributing. Additionally, the CIP must include actions
required of the employee, and the time in which they must be
accomplished, to increase and sustain the employee's contribution at an
adequate level.
Additionally, when an employee's contribution plots in the area
above the upper rail of the normal pay range, the employee is
considered to be contributing inadequately. In this case, the
supervisor has two options. The first is to take no action but to
document this decision in a memorandum for the record. A copy of this
memorandum will be provided to the employee and to higher levels of
management. The second option is to inform the employee, in writing,
that unless the contribution increases to, and is sustained at, a
higher level, the employee may be reduced in pay 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 CCAS assessment process may reconvene
any time during the year to review the circumstances warranting the
recommendation to take further action on the employee.
When the rating official informs the employee that the employee may
be reduced in pay or removed, the rating official will afford the
employee a
[[Page 14318]]
reasonable opportunity (a minimum of 60 days) to demonstrate acceptable
contribution with regard to identifiable factors. As part of the
employee's opportunity to demonstrate adequate contribution, he or she
will be placed on a contribution improvement plan (CIP). The CIP will
state how the employee's contribution is inadequate, what improvements
are required, recommendations on how to achieve adequate contribution,
assistance that the agency shall offer to the employee in improving
inadequate contribution, and consequences of failure to improve.
Once an employee has been afforded a reasonable opportunity to
demonstrate adequate contribution but fails to do so, a reduction-in-
pay (which may include a change to a lower broadband level and/or
reassignment) or removal action may be proposed. If the employee's
contribution increases to an acceptable level and is again determined
to deteriorate in any factor within two years from the beginning of the
opportunity period, actions may be initiated to effect reduction in pay
or removal with no additional opportunity to improve. If an employee
has contributed acceptably for two years from the beginning of an
opportunity period, and the employee's overall contribution once again
declines to an inadequate level, the employee will be afforded an
additional opportunity to demonstrate adequate contribution before it
is determined whether or not to propose a reduction in pay or removal.
An employee whose reduction in pay or removal is proposed is
entitled to a 30-day advance notice of the proposed action that
identifies specific instances of inadequate contribution by the
employee on which the action is based. The employee will be afforded a
reasonable time to answer the notice of proposed action orally and/or
in writing.
A decision to reduce in pay or remove an employee for inadequate
contribution may be based only on those instances of inadequate
contribution that occurred during the two-year period ending on the
date of issuance of the proposed action. The employee will be issued
written notice at or before the time the action will be effective. Such
notice will specify the instances of inadequate contribution by the
employee on which the action is based and will inform the employee of
any applicable appeal or grievance rights.
All relevant documentation concerning a reduction in pay or removal
that is based on inadequate contribution will be preserved and made
available for review by the affected employee or a designated
representative. As a minimum, the records will consist of a copy of the
notice of proposed action; the written answer of the employee or a
summary when the employee makes an oral reply; and the written notice
of decision and the reasons therefor, along with any supporting
material including documentation regarding the opportunity afforded the
employee to demonstrate adequate contribution.
F. Revised Reduction-In-Force (RIF) Procedures
The proposed RIF system will have a single round of competition to
replace the current two-round process. Once the position to be
abolished has been identified, the incumbent of that position may
displace another employee when the incumbent has a higher retention
standing and is fully qualified for the position occupied by the
employee with lower standing. Retention standing is based on tenure,
veterans' preference, length of service, and contribution, preserving
the same weights as today's system. The ``undue disruption'' standard
currently utilized will serve as the criterion to determine if an
employee is fully qualified. In addition, to be fully qualified, the
employee must meet DAWIA statutory requirements for the position, if
applicable. The displaced individual may similarly displace other
employees. Displacement is normally limited to one broadband level
below the employee's present level. However, a preference-eligible
employee with a compensable service-connected disability of 30 percent
or more may displace up to the equivalent of five General Schedule
grades below the employee's present level. If/when there is no position
in which an employee can either be placed by this process or be
assigned to a vacant position, that employee will be separated.
An employee's entitlement to additional service credit associated
with appraisal results will be based on the employee's three most
recent annual overall contribution scores (OCSs) of record received
during the four-year period prior to the issuance of reduction-in-force
notices (see Table 7). However, if at that time three CCAS cycles have
not yet been completed, the annual performance rating of record under
the previous performance management system will be substituted for one
or more OCSs, as appropriate. The value(s) of the actual OCS(s) or
performance rating(s) of record will be divided by the number of actual
rating(s) received. In cases where an individual employee has no annual
OCS or performance rating of record, a modal OCS or performance rating
will be assigned and used to determine the additional service credit
for that individual.
The new system will eliminate current provisions for retained
grade, but will keep retained pay provisions as outlined in 5 U.S.C.
5363 and 5 CFR 536.101 as modified in the waiver section of this notice
(section IX). All positions within commands participating in the
demonstration project and located within the same commuting area may be
considered a separate competitive area.
G. Academic Degree and Certificate Training
Trained and educated personnel are a critical resource in an
acquisition organization. This demonstration recognizes that training
and development programs are essential to improving the performance of
individuals in the acquisition workforce, and thereby raising the
overall level of performance of the acquisition workforce, and that a
well-developed training program is also a valuable tool for recruiting
and retaining motivated employees. Currently, DAWIA authorizes degree
and certificate training for acquisition-coded positions through the
year 2001. This demonstration extends that authority for the duration
of this demonstration and expands its coverage to the acquisition
support positions identified in this demonstration project. It also
provides authorization at the local level to administer and pay for
these degree and certificate training programs. This authorization will
facilitate continuous acquisition of advanced, specialized knowledge
essential to the acquisition workforce and provide a capability to
assist in the recruiting and retaining of personnel critical to the
present and future requirements of the acquisition workforce. Funding
for this training, while potentially available from numerous sources
(including DAWIA for employees in acquisition-coded positions), is the
responsibility of the participating organization.
H. Sabbaticals
Organizations participating in the Acquisition Demonstration will
have the authority to grant sabbaticals without application to higher
levels of authority. These sabbaticals will permit employees to engage
in study or work experience that contributes to their development and
effectiveness. The sabbatical provides opportunities for employees to
acquire knowledge and expertise that cannot be acquired in the
[[Page 14319]]
standard working environment. These opportunities should result in
enhanced employee contribution. The spectrum of available activities
under this program is limited only by the constraint that the activity
contribute to the organization's mission and to the employee's
development. The program can be used for training with industry or on-
the-job work experience with public, private, or nonprofit
organizations. It enables an employee to spend time in an academic or
industrial environment or to take advantage of the opportunity to
devote full-time effort to technical or managerial research.
The Acquisition Demonstration sabbatical program will be available
to all demonstration project employees who have seven or more years of
Federal service. Each sabbatical will be of three to twelve months'
duration and must result in a product, service, report, or study that
will benefit the acquisition community as well as increase the
employee's individual effectiveness. Requests for a sabbatical must be
made by the employee through the chain of command to the employee's
installation Executive Director or equivalent, who has final approval
authority and who must ensure that the program benefits both the
acquisition workforce and the individual employee. Funding for the
employee's salary and other expenses of the sabbatical is the
responsibility of the participating organization.
IV. Training
The key to the success or failure of the proposed demonstration
project will be the training provided for all involved. This training
will provide not only the necessary knowledge and skills to carry out
the proposed changes, but will also lead to participant commitment to
the program.
Training at the beginning of implementation and throughout the
demonstration will be provided to supervisors, employees, and the
administrative staff responsible for assisting managers in effecting
the changeover and operation of the new system.
The elements to be covered in the orientation portion of this
training will include: (1) a description of the personnel system; (2)
how employees are converted into and out of the system; (3) the pay
adjustment and/or bonus process; (4) the new position requirements
document; (5) the new classification system; and (6) the contribution-
based compensation and appraisal system.
In conjunction with the education, training, and career development
assets of the Military Services and DoD Agencies, the demonstration
project team will train, orient, and keep informed all supervisors and
employees covered by the demonstration project and administrative staff
responsible for implementing and administering the human resource
program changes.
A. Supervisors
The focus of this project on management-centered personnel
administration, with increased supervisory and managerial personnel
management authority and accountability, demands thorough training of
supervisors and managers in the knowledge and skills that will prepare
them for their new responsibilities. Training will include detailed
information on the policies and procedures of the demonstration
project, as well as skills training in using the classification system,
position requirements document, and contribution evaluation.
B. Administrative Staff
The administrative staff, general personnel specialists,
technicians, and administrative officers will play a key role in
advising, training, and coaching supervisors and employees in
implementing the demonstration project. This staff will receive
training in the procedural and technical aspects of the project.
C. Employees
In the months prior to implementation, the demonstration project
team and Military Service and DoD Agency training and career
development offices will provide all employees covered under the
demonstration project training through various media. This training is
intended to fully inform all affected employees of all significant
project decisions, procedures, and processes.
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's initial placement into a broadband level
without loss of pay. Automatic conversion from the permanent GS grade
and step of record at time of conversion into the new broadband system
will be accomplished. Adjustments to the employee's base salary for
step increase and non-competitive career ladder promotion will be
computed based on the current value of the step or promotion increase
and a prorated share based upon the number of weeks an employee has
completed towards the next higher step or grade, per paragraph VIII A.
This conversion process, i.e. ``buy-in,'' is applicable to employees
only at the initiation of the demonstration project.
Special salary rates will no longer be applicable to demonstration
project employees. Employees on special salary rates at the time of
conversion will receive a new basic rate of pay computed by dividing
their highest adjusted rate of basic pay (i.e., special pay rate, or if
higher, the locality rate) by the locality pay factor for their area.
All employees will be eligible for the future locality pay increases of
their geographic area.
When conversion into the demonstration project is accompanied by a
simultaneous geographic move, the employee's GS pay entitlements
(including any locality or special rate) in the new area will be
determined before converting the employee's pay to the demonstration
project pay system. 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. If the
employee's rate of basic pay exceeds the maximum rate of basic pay for
the broadband level corresponding to the employee's GS grade, the
employee will remain at that broadband level and will receive a
retained rate. Employees who enter the demonstration project later by
lateral reassignment or transfer will enter at their current basic pay
with no loss or gain due to transfer.
B. Conversion Back to the Former System
If a demonstration project employee is moving to a General Schedule
(GS) position not under the demonstration project, or if the project
ends and each project employee must be converted back to the GS system,
the following procedure will be used to convert the employee's project
pay band to a GS grade and the employee's demonstration rate of pay to
a GS rate of pay. The converted GS grade and GS rate of pay must be
determined before movement or conversion out of the demonstration
project and any accompanying geographic movement, promotion, or other
simultaneous action. For conversions upon termination of the project
and for lateral assignments, the converted GS grade and rate will
become the employee's actual GS grade and rate after leaving the
demonstration project (before any other action). For transfers,
promotions, and other actions,
[[Page 14320]]
the converted GS grade and rate will be used in applying any GS pay
administration rules applicable in connection with the employee's
movement out of the project (e.g., promotion rules, highest previous
rate rules, pay retention rules) as if the GS-converted grade and rate
were actually in effect immediately before the employee left the
demonstration project.
1. Grade-Setting Provisions
An employee is converted to one of the grades in their current
broadband level according to the following rules:
(i) The employee's adjusted rate of pay under the demonstration
project (including any locality payment) is compared with the step 4
rate in the highest applicable GS rate range. (For this purpose, a GS
rate range includes a rate range in (1) the GS base schedule, (2) the
locality rate schedule for the locality pay area in which the position
is located, or (3) the appropriate special rate schedule for the
employee's occupational series, as applicable.) If the series is a two-
grade-interval series, only odd-numbered grades are considered below
GS-11.
(ii) If the employee's adjusted project rate equals or exceeds the
applicable step 4 rate of the highest GS grade in the band, the
employee is converted to that grade.
(iii) If the employee's adjusted project rate is lower than the
applicable step 4 rate of the highest grade, the adjusted rate is
compared with the step 4 rate of the second-highest grade in the
employee's pay band. If the employee's adjusted rate equals or exceeds
the step 4 rate of the second-highest grade, the employee is converted
to that grade.
(iv) This process is repeated for each successively lower grade in
the band until a grade is found in which the employee's adjusted
project rate equals or exceeds the applicable step 4 rate of the grade.
The employee is then converted at that grade. If the employee's
adjusted rate is below the step 4 rate of the lowest grade in the band,
the employee is converted to the lowest grade.
(v) Exception: If the employee's adjusted project rate exceeds the
maximum rate of the grade assigned under the above-described step 4
rule but fits in the rate range for the next higher applicable grade
(i.e., between step 1 and step 4), then the employee shall be converted
to that next higher applicable grade.
(vi) Exception: An employee will not be converted to a lower grade
than the grade held by the employee immediately preceding a conversion,
lateral assignment, or lateral transfer into the project, unless since
that time the employee has undergone a reduction in broadband level or
reduction in pay based upon an adverse action.
2. Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's demonstration project rate of pay to a GS
rate of pay in accordance with the following rules:
(i) The pay conversion is done before any geographic movement or
other pay-related action that coincides with the employee's movement or
conversion out of the demonstration project.
(ii) An employee's adjusted rate of pay under the project
(including any locality payment) is converted to a GS rate on the
highest applicable rate range for the converted GS grade. (For this
purpose, a GS rate range includes a rate range in (1) the GS base
schedule, (2) an applicable locality rate schedule, or (3) an
applicable special rate schedule.)
(iii) If the highest applicable GS rate range is a locality pay
rate range, the employee's adjusted project rate is converted to a GS
locality rate of pay. If this rate falls between two steps in the
locality-adjusted schedule, the rate must be set at the higher step.
The converted GS unadjusted rate of basic pay would be the GS base rate
corresponding to the converted GS locality rate (i.e., same step
position). (If this employee is also covered by a special rate schedule
as a GS employee, the converted special rate will be determined based
on the GS step position. This underlying special rate will be basic pay
for certain purposes for which the employee's higher locality rate is
not basic pay.)
(iv) If the highest applicable GS rate range is a special rate
range, the employee's adjusted project rate is converted to a special
rate. If this rate falls between two steps in the special rate
schedule, the rate must be set at the higher step. The converted GS
unadjusted rate of basic pay will be the GS rate corresponding to the
converted special rate (i.e., same step position).
3. Employees Receiving a Retained Rate Under the Project
If an employee is receiving a retained rate under the demonstration
project, the employee's GS-equivalent grade is the highest grade
encompassed in his or her broadband level. The DUSD (AR) and the DASD
(CPP) will coordinate with OPM to prescribe a procedure for determining
GS-equivalent pay rates for employees receiving retained rates.
4. Years of Retention Service Credit and Appraisal Rating Provisions
Employees leaving the demonstration project will be assigned
ratings of record that conform with pattern E of 5 CFR 430.208(d) based
on the years of credit accumulated for the 3 most recent years during
the last 4 years while under the demonstration project. Since the
demonstration project does not make use of summary level designators
(e.g., Exceptional, Level 5; Highly Successful, Level 4; Fully
Successful, Level 3; or Unacceptable, Level 1) used in the appraisal
system and programs constructed under 5 U.S.C. Chapter 43 and 5 CFR
Part 430, the retention service credit that is based on the employee's
OCS as shown in Table 7 will be translated to summary level designators
as shown in Table 8 for use by the gaining agency.
[GRAPHIC] [TIFF OMITTED] TN24MR98.087
[[Page 14321]]
5. Within-Grade Increase--Equivalent Increase Determinations
Service under the demonstration project is creditable for within-
grade increase purposes upon conversion back to the GS pay system. CCAS
base salary increases (including a zero increase) under the
demonstration project are equivalent increases for the purpose of
determining the commencement of a within-grade increase waiting period
under 5 CFR 531.405(b).
VI. Project Duration
The project evaluation plan addresses how each intervention will be
comprehensively evaluated for at least the first five years of the
demonstration project. Major changes and modifications to the
interventions can be made through announcement in the Federal Register,
with OPM approval. At the five-year point, the entire demonstration
project will be reexamined for: (a) permanent implementation; (b)
modification and additional testing; (c) extension of the test period;
or (d) termination.
VII. Evaluation Plan
Demonstration-authorizing legislation (5 U.S.C. Chapter 47)
mandates evaluation of the demonstration project to assess the effects
of project features and outcomes. In addition, the project will be
evaluated for the feasibility of application to other Federal Agencies.
The overall evaluation will consist of three phases--baseline,
formative, and summative evaluations. The evaluation for the
participating agencies will be overseen by the Office of Merit Systems
Oversight and Effectiveness, OPM; the Office of the Secretary of
Defense (Acquisition & Technology); and the Office of the Deputy
Assistant Secretary of Defense (Civilian Personnel Policy), DoD.
The main purpose of the evaluation is to determine the
effectiveness of the personnel system changes to be undertaken. To the
extent possible, strong direct or indirect relationships will be
established between the project features, outcomes, and mission-related
changes and personnel system effectiveness criteria. The evaluation
approach uses an intervention impact model that specifies each
personnel system change as an intervention, the expected effects of
each intervention, the corresponding measures, and the data sources for
obtaining the measures. Table 9 presents the intervention impact model
to be used for this demonstration for initiatives affecting title 5.
[GRAPHIC] [TIFF OMITTED] TN24MR98.088
[[Page 14322]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.089
[[Page 14323]]
[GRAPHIC] [TIFF OMITTED] TN24MR98.090
[[Page 14324]]
The specific measures to be collected using the different methods
are determined from the goals and objectives stated for each
intervention. Both qualitative and quantitative measures will be
obtained. Most of the potential measures can be grouped around three
major effectiveness criteria: speed, cost, and quality. Collectively,
the outcomes of the interventions are hypothesized to lead to agency
personnel management improvements, as reflected by timeliness, cost
effectiveness, and quality.
Baseline measures will be taken prior to project implementation.
Then, repeated post-implementation measurements will be taken to allow
longitudinal comparisons by intervention within and across DoD
Components. A comparison group will be selected and compared to the
demonstration project group to determine the effects and outcomes of
the project.
The effectiveness of each intervention and of the project as a
whole in meeting stated objectives will be addressed using a multi-
approach method. Some methods will be unobtrusive in that they do not
require reactions to 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 assessments of external economic and legislative changes.
Other methods such as periodic attitude surveys, structured interviews,
and focus groups will be used to assess the perceptions of employees,
managers, supervisors, and personnel regarding the personnel system
changes and the performance of their organizations in general.
Evaluation activities will also take into account the unique nature of
this project in terms of geographic and organizational diversity.
In addition to the intervention impact model, a general context
model will be used to determine the effects of potential intervening
variables (e.g., downsizing, regionalization of the personnel function,
and the state of the economy in general). Potential unintended outcomes
will also be monitored, and an attempt will be made by the evaluation
team to link the outcomes or project interventions to organizational
effectiveness. In addition to assessing the impact of the individual
project features, the evaluation will also assess the impact of the
project as a whole, along with possible context effects and effects of
intervening variables. The evaluation will also monitor adherence to
the merit systems principles and avoidance of prohibited personnel
practices. In addition, the evaluation will attempt to link the project
effects and outcomes to organizational outcomes such as mission
accomplishment and productivity.
The initial evaluation effort will consist of three main phases--
baseline, formative, and summative evaluation covering five (5) years.
Baseline will collect workforce data to determine the ``as-is'' state.
The formative evaluation phase will include baseline data collection
and analyses, implementation evaluation, and interim assessments.
Periodic reports and annual summaries will be prepared to document the
findings. The summative evaluation phase will focus on an overall
assessment of the project outcomes, looking initially at the first four
(4) years, with a follow-on report covering the first five (5) years.
The rationale for summative evaluation after the first four years is to
assess whether the demonstration will continue after the fifth year. If
the analysis indicates that the interventions show a positive effect
towards meeting the goals of the demonstration, then documentation will
be generated to support a request that the demonstration progress
further. If the analysis indicates that the interventions do not meet
the stated objectives, or if the participating organizations do not
wish to continue in the demonstration, then documentation and planning
for conversion back to the existing personnel system must be prepared.
The fifth-year summative evaluation, used in reporting to Congress,
will provide overall assessment of all initiatives individually and as
a whole. It will also provide recommendations on broader Federal
Government application.
VIII. Demonstration Project Costs
A. Step and Promotion Buy-Ins
Under this demonstration project, implementation of the
broadbanding pay structure eliminates the step increments of the
current pay structure. To facilitate conversion to this system without
loss of pay, employees will receive a basic pay increase for that
portion of the next step corresponding to the time in-step they have
completed up to the effective date of the employee conversion. As under
the current system, supervisors will be able to withhold these partial
increases (step) if the employee's performance has fallen below fully
successful.
Rules governing within-grade increases (WGI) within each
participating Military Service/DoD agency will remain in effect until
the employee conversion date. Adjustments to employees' base salary for
WGI equity will be computed effective the first pay period in FY99
(October 1998). WGI equity shall be acknowledged by increasing base
salaries by a prorated share based upon the actual number of weeks an
employee has completed towards the next higher step. Employees at step
10, or receiving retained pay at the time of conversion will not be
eligible for this equity adjustment. For those employees in career-
ladder promotion programs who are scheduled to be promoted to a higher
grade and whose performance is at least fully successful, base pay will
be increased by a prorated share of the current value of the next
scheduled promotion increase based upon the actual number of weeks the
employee has completed towards the next scheduled promotion. No WGI
equity adjustment will be made if the employee's pay is adjusted for a
promotion that would be effective before the next scheduled WGI.
For purposes of conversion into the demonstration, the January 1999
General Schedule increase to base pay will be given to all employees.
B. Out-Year Project Costs
The overall demonstration cost strategy will be to balance
projected costs with benefits of the demonstration to bring about the
projected improvements to the DoD Acquisition Workforce. The project
evaluation results will be used to ensure that out-year project costs
will not outweigh the derived benefits to the demonstration. A baseline
will be established at the start of the project, and salary
expenditures will be tracked yearly. Implementation costs, including
the step and grade buy-in costs detailed above, will not be included in
the cost evaluations, but will be accounted for separately.
The amount of money available for contribution increases in the
out-years will be determined as part of the annual project evaluation
process, starting with a review of the prior year's data for each
individual participating site by the Personnel Policy Boards for that
site, and then will be reported to the DoD Acquisition Workforce
Demonstration Project Executive Steering Committee. The funds
determination will be based on a balancing of appropriate factors,
including the following: (1) Historical spending for WGI, quality step
increases, and in-level career promotions; (2) labor market conditions
and the need to recruit and retain a skilled workforce to meet the
business needs of the organization; and (3) the fiscal condition of the
organization.
[[Page 14325]]
Given the implications of base pay increases for long-term pay and
benefit costs, the compensation levels will be determined after cost
analysis with documentation of the mission-driven rationale for the
amount. As part of the evaluation of the project by Military Services,
participating Defense Agencies, DoD, and OPM, the base pay costs
(including average salaries) under the demonstration project will be
tracked and compared to the base pay costs under similar demonstration
projects and under a simulation model that replicates General Schedule
spending. These evaluations will balance costs incurred against
benefits gained, so that both fiscal responsibility and project success
are given appropriate weight.
C. Personnel Policy Boards
It is envisioned that each participating DoD Component shall either
establish a Personnel Policy Board for the demonstration project that
will consist of the senior civilian in each Program Management Office
and Directorate within the Component and be chaired by the Executive
Director or modify the charter of an existing group. In either case,
the board is tasked with the following:
(a) Overseeing the civilian pay budget;
(b) Addressing issues associated with two separate pay systems
(CCAS and GS) during the first phase of the demonstration;
(c) Determining the composition of the CCAS pay pool in accordance
with the established guidelines; and statutory constraints;
(d) Reviewing operation of the Component's CCAS pay pools;
(e) Providing guidance to pay pool managers;
(f) Administering funds to CCAS pay pool managers;
(g) Reviewing hiring and promotion salaries;
(h) Monitoring award pool distribution by organization and DAWIA
vs. non-DAWIA; and
(i) Assessing the need for changes to demonstration project
procedures and policies.
Should any participating Component elect not to establish a
Personnel Policy Board, the charter of an existing group within that
Component 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. These
costs are considered shared costs and will be funded by the Deputy
Undersecretary of Defense for Acquisition Reform (DUSD (AR)) for the
demonstration period. Site-specific costs for follow-on training,
employee salary conversion, and any in-house software automation will
be borne by the individual participating sites. The projected annual
expenses for each area are summarized in Table 10. Project evaluation
costs will continue for at least the first five (5) years and may
continue beyond that point.
[GRAPHIC] [TIFF OMITTED] TN24MR98.091
IX. Required Waivers to Law and Regulations
A. Waivers to Title 5, United States Code
Chapter 5, Section 552a: Records maintained on individuals. This
section is waived only to the extent required to clarify that
volunteers under the Voluntary Emeritus Program are considered
employees of the Federal Government for purposes of this section.
Chapter 31, Section 3111: Acceptance of volunteer service. This
section is waived only to the extent required to allow volunteer
service under provisions of the voluntary emeritus program.
Chapter 33, Section 3308: Competitive service; examinations;
educational requirements prohibited; exceptions (to the extent
necessary to accommodate the Scholastic Achievement Appointment's
requirement for a college degree).
Chapter 33, Section 3317(a): Competitive service; certification
from registers (insofar as ``rule of three'' is eliminated under the
demonstration project).
Chapter 33, Section 3318(a): Insofar as ``rule of three'' is
eliminated under the demonstration project. Veterans' preference
provisions remain unchanged.
Chapter 41, Section 4107(a).
Chapter 43, Sections 4301-4305 except for 4303(e) and (f): Related
to performance appraisal. In turn, 4303(e) and (f) are waived only to
the extent necessary to: (1) Substitute ``broadband'' for ``grade'',
and (2) provide that moving
[[Page 14326]]
to a lower broadband as a result of not receiving the full amount of a
general pay increase because of inadequate contribution is not an
action covered by the provisions of section 4303.
Chapter 45, Sections 4502(a) and 4502(b).
Chapter 51, Sections 5101-5102 and Sections 5104-5107: Related to
classification standards and grading.
Chapter 53, Sections 5301; 5302 (8) and (9); and 5303-5305 and
5331-5336: Related to special pay and pay rates and systems (Sections
5301, 5302 (8) and (9), and 5304 are waived 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).
Chapter 53, Section 5362: Grade retention.
Chapter 53, Section 5363: Pay retention. This waiver applies only
to the extent necessary to: (1) allow demonstration project employees
to be treated as General Schedule employees; (2) provide that pay
retention provisions do not apply to conversions from General Schedule
special rates to demonstration project pay, as long as total pay is not
reduced; and (3) replace the term ``grade'' with ``broadband level.''
Chapter 53, Section 5371: Related to health care positions. (This
waiver applies only to the extent necessary to allow demonstration
project employees to hold positions subject to Chapter 51 of title 5.)
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, and 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).
Chapter 59, Section 5941: Allowances based on living costs and
conditions of environment; employees stationed outside the continental
United States or Alaska. (This waiver applies only to the extent
necessary to provide that COLAs paid to employees under the
demonstration project are paid in accordance with regulations
prescribed by the President (as delegated to OPM)).
Chapter 59, Section 5948: Related to physicians comparability
allowances (only to the extent necessary to treat employees under the
demonstration project as General Schedule employees).
Chapter 71, to the extent its provisions (e.g., 5 U.S.C.
7103(a)(12) and 7116) would prohibit management or the union from
unilaterally terminating negotiations over whether the project will
apply to employees represented by the union.
Chapter 71, Section 7119: To the extent it gives the Federal
Service Impasses Panel jurisdiction to resolve impasses referred to it
by either party or both parties during or after implementation of the
demonstration project.
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 replace ``grade'' with
``broadband level'') 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, Volunteer service: Waived to allow volunteer service
under the provisions of the voluntary emeritus program.
Part 315, Sections 315.801 and 315.802: Probationary period.
Part 316, Section 316.301: Term appointment (to the extent that
modified term appointments may cover a maximum period of 6 years).
Part 316, Section 316.303: Tenure of term employees (to the extent
that term employees may compete for permanent status through local
merit promotion plans).
Part 316, Section 316.305: Eligibility for within-grade increases.
Part 332, Section 332.402: ``Rule of three'' will not be used in
the demonstration project.
Part 332, Section 332.404: Order of selection is not limited to
highest three eligibles.
Part 351, Sections 351.402 through 351.403: Competitive Area and
Competitive Levels; Section 351.504(a): Credit for Performance; and
Section 351.601: Order of Release from Competitive Level.
Part 351, Section 351.701 (b) and (c): Assignment rights (bump and
retreat): To the extent that the distinction between bump and retreat
is eliminated and the placement of demonstration project employees is
limited to one broadband level below the employee's present level,
except that a preference-eligible employee with a compensable service-
connected disability of 30 percent or more may displace up to the
equivalent of five General Schedule grades below the employee's present
level.
Part 410, Section 410.308(a).
Part 430, Subpart A and Subpart B: Performance management;
performance appraisal.
Part 432, Sections 432.101, 432.102, 432.106 and 432.107: (only to
the extent necessary to (1) substitute ``broadband'' for ``grade'' and
(2) provide that moving to a lower broadband as a result of not
receiving the full amount of a general pay increase because of
inadequate contribution is not an action covered by the provisions of
section 4303).
Part 432, Sections 432.103 through 432.105: Performance-based
reduction-in-grade and removal actions.
Part 451, Sections 451.106(b) and 451.107(b): Awards.
Part 511, Subpart A; Subpart B; Subpart F, Sections 511.601 through
511.612: Classification within the General Schedule; and Subpart G:
Effective Dates of Position Classification Actions or Decisions.
Part 530, Subpart C: Special salary rates.
Part 531, Subpart B, Subpart D, Subpart E: Determining rate of pay;
within-grade increases and quality step increases.
Part 531, Subpart F: 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, Grade and Pay Retention (only to the extent necessary to
eliminate grade retention and to provide that, for the purposes of
applying pay retention provisions: (1) demonstration project employees
are to be treated as General Schedule employees; (2) ``grade'' is
replaced by ``broadband level''; and (3) pay retention provisions do
not apply to conversions from General Schedule special rates to
demonstration project pay, as long as total pay is not reduced).
Part 550, Sections 550.703: Severance Pay, definition of
``reasonable offer'' (by replacing ``two grade or pay levels'' with
``one broadband level'' and ``grade or pay level'' with ``broadband
level'') and 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
[[Page 14327]]
bonuses, and retention allowances, and 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 591, Subpart B: Cost-of-Living Allowances and Post
Differential-Nonforeign Areas. (This waiver applies only to the extent
necessary to allow demonstration project employees to be treated as
employees under the General Schedule for the purposes of these
provisions.)
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 to replace `grade'' with
``broadband level'') 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. 98-7486 Filed 43-23-98; 8:45 am]
BILLING CODE 6325-01-M