[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Notices]
[Pages 39179-39181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18558]


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OFFICE OF PERSONNEL MANAGEMENT


Science and Technology Reinvention Laboratory Personnel 
Demonstration Project at the Naval Sea Systems Command Warfare Centers

AGENCY: Office of Personnel Management.

ACTION: Notice of amendment to expand coverage of all provisions of the 
Naval Sea Systems Command, Naval Surface Warfare Center and Naval 
Undersea Warfare Center personnel demonstration project to include 
employees of the Naval Warfare Assessment Station (NWAS).

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SUMMARY: Public Law 103-337, October 5, 1994, permits the Department of 
Defense (DOD), with the approval of the Office of Personnel Management 
(OPM), to carry out personnel demonstration projects at DOD Science and 
Technology (S&T) Reinvention Laboratories. This notice identifies the 
expanded coverage of the Naval Sea Systems Command, Naval Surface 
Warfare Center and Naval Undersea Warfare Center personnel 
demonstration project to include employees of the Naval Warfare 
Assessment Station (NWAS). This notice also serves to clarify 
provisions of the Warfare Centers' final demonstration project plan 
published in the December 3, 1997, Federal Register Notice.

DATES: This notice may be implemented July 21, 1999.

FOR FURTHER INFORMATION CONTACT:
Warfare Centers: Shirley Scott, NSWC/NUWC Deputy Demonstration Project 
Manager, NSWCDD, HR Department, 17320 Dahlgren Road, Dahlgren, VA 
22448, 540-653-4623.
OPM: John Andre, U.S. Office of Personnel Management, 1900 E Street, 
NW, Room 7460, Washington, DC 20415, 202-606-1255.

SUPPLEMENTARY INFORMATION: OPM has approved ``Science and Technology 
Laboratory Personnel Management Demonstration Projects'' and published

[[Page 39180]]

the Naval Sea Systems Command, Naval Surface Warfare Center and Naval 
Undersea Warfare Center final plan in the Federal Register on 
Wednesday, December 3, 1997, Volume 62, Number 232, Part II. The 
Warfare Centers' demonstration project involved a simplified broad 
banded position classification system, performance management and 
development system, performance-based incentive pay system, competitive 
examining and appointment provisions, and modified reduction-in-force 
procedures. The final plan provided for a staggered implementation 
strategy across the Warfare Centers' divisions which began March 15, 
1999.
    On February 15, 1998, the Naval Warfare Assessment Station (NWAS) 
was established as an organizational component reporting directly to 
the Naval Surface Warfare Center (NSWC). NSWC plans to expand coverage 
of the personnel demonstration project to include employees of NWAS.

    Dated: July 9, 1999.

Office of Personnel Management.
Janice R. Lachance,
Director.

I. Executive Summary

    The Naval Sea Systems Command established the Naval Surface Warfare 
Center and the Naval Undersea Warfare Center Personnel Demonstration 
Project to be generally similar to the system in use at the Naval 
Personnel Demonstration Project known as China Lake. The project was 
built upon the concepts of linking performance to pay, simplifying the 
position classification system, emphasizing performance development, 
and delegating other authorities to line managers.

II. Introduction

A. Purpose

    The Warfare Centers' personnel demonstration project attempts to 
provide managers, at the lowest practical level, the authority, control 
and flexibility needed to recruit, retain, develop, recognize and 
motivate its workforce. Expanding the demonstration project to include 
employees of the newly established NWAS activity will allow the Naval 
Surface Warfare Center to implement the provisions of the project 
throughout all of its organizational activities, and to compete more 
effectively for high-quality personnel while strengthening the 
manager's role in personnel management. All provisions of the approved 
Warfare Centers' personnel demonstration project will apply.
    Employee notification will be made by delivery of a copy of the 
December 3, 1997, final plan, any subsequent amendments, and this 
notice. Training for supervisors and employees will be accomplished by 
information briefings and training sessions prior to implementation.

B. Participating Employees

    This demonstration project will be expanded to cover all NWAS 
civilian employees, with the exception of members of the Senior 
Executive Service, located in Corona, California and remote locations. 
Table 1 reflects the duty locations and a projected number of employees 
to be covered.

                        Table 1.--NWAS Employees
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                                                               Projected
                          Location                             number of
                                                               employees
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Corona, CA..................................................         653
Arlington, VA...............................................           2
Beaufort, SC................................................           4
Cairo, Egypt................................................           1
Ceiba, Puerto Rico..........................................
Cherry Point, NC............................................           7
El Centro, CA...............................................           1
Fallon, NV..................................................          12
Key West NAV Air Station, FL................................
MCAS Miramar, CA............................................           1
Moorestown, NJ..............................................           2
------------------------------------------------------------------------

C. Other Changes

(1) Section III.B.1h.3: Pay Protection Provision
    The intent of this provision was to offer maximum protection of the 
employee's salary upon movement to a different geographic location. 
Upon conversion to the demonstration project, many employees who were 
previously covered by special salary rates had their total adjusted 
salary reallocated between basic pay and locality pay. These 
reallocations were necessary to convert the employees to a broad-banded 
classification and pay system and it was not intended to lower the 
employees' total adjusted salary. Concurrent with the conversion, some 
of these same employees received an increase in basic pay under the 
demonstration project buy-in provisions outlined in Section III.D.1.: 
Initial Conversion of Current Workforce. Increases to basic pay under 
this section were granted as a buy-in into the demonstration project to 
compensate employees for time earned creditable toward their next 
within-grade-increase under the General Schedule system. Despite 
seemingly clear language, the pay protection provision addressed in 
Section III.B.1h3. appears to disregard consideration of the employee's 
adjusted salary granted under this buy-in provision. This notice 
corrects this oversight by clarifying that the salary under protection 
includes the employee's pre-conversion special rate plus any increase 
in salary granted under the buy-in provisions. The second sentence of 
this section is amended to read: ``For these employees, the new 
adjusted rate following a geographic move may not be less than the 
dollar amount of the employee's pre-conversion special rate plus any 
increase in salary granted under Section III.D.1. of this plan.''
(2) Section III.B.5. Competitive Examining and Distinguished Scholastic 
Appointments
    The Warfare Centers' demonstration project restructures the 
competitive examining process and provides for an authority to appoint 
candidates meeting prescribed distinguished scholastic achievements. 
The final plan includes language that may be interpreted as authority 
to extend changes in the examining process to positions outside the 
demonstration project activities. To eliminate confusion, the following 
sentence is deleted: ``To further minimize resource requirements and 
the complexities inherent in administering two different sets of 
examining and hiring processes, this component may be applied to GS and 
FWS positions in activities for which the Warfare Center Divisions 
provide human resource services.''
    Also, the third sentence of that paragraph is changed from: ``When 
a Division implements the Demonstration Project for some portion of 
their workforce, this component may be available for all occupations.''
to:
    ``When a Division implements the Demonstration Project for some 
portion of their workforce, this provision may be available for all 
occupations, GS and FWS, within that Warfare Center Division.''
    This change further clarifies that this provision is used only for 
occupations covered by the Demonstration Project.
(3) Section III.D.3. Exit From the Demonstration Project
    To clarify that conversion-out procedures also apply in the event 
the project ends, the following sentence is added at the end of the 
first paragraph under this section: ``These procedures will also be 
followed for those employees who exit the project because of project 
termination.''

[[Page 39181]]

(4) Section V.A.: Waivers to title 5, United States Code
    The Warfare Centers' personnel demonstration project includes an 
enhanced performance management system requiring a waiver of existing 
laws and regulations governing performance management systems. Waivers 
of specific provisions of title 5 and the Code of Federal Regulations 
(CFR) were included under section V of the Warfare Centers' final plan. 
However, waivers of 5 U.S.C. 4304(b)(1) and (3) were inadvertently not 
included in this section. These title 5 provisions require OPM's review 
and approval of performance appraisal systems developed by agencies 
under 5 U.S.C. chapter 43. Simultaneously, Public Law 103-337 (Section 
342 of the National Defense Authorization Act for FY95), October 5, 
1994, requires OPM's approval of personnel demonstration projects. This 
approval was obtained and the Warfare Centers' final plan was published 
in the 3 December 1997 Federal Register. OPM's approval of the Warfare 
Centers' final plan removes the need to have separate review and 
approval of the revised performance appraisal system as required under 
chapter 43 of title 5 U.S.C. Part V of the final plan is therefore 
amended to add the following waivers:

5 U.S.C. 4304(b)(1)
5 U.S.C. 4304(b)(3)

[FR Doc. 99-18558 Filed 7-20-99; 8:45 am]
BILLING CODE 6325-01-P