[Congressional Record (Bound Edition), Volume 146 (2000), Part 5]
[Extensions of Remarks]
[Pages 6977-6979]
[From the U.S. Government Publishing Office, www.gpo.gov]



          EXPERIMENTAL PROGRAM TO RESHAPE AIR FORCE WORKFORCE

                                 ______
                                 

                           HON. TONY P. HALL

                                of ohio

                    in the house of representatives

                         Thursday, May 4, 2000

  Mr. HALL of Ohio. Mr. Speaker, I join my colleague from Ohio, Mr. 
Hobson, in introducing the Air Force Workforce Renewal Act, a bill to 
stabilize employment within the Air Force and bring more current 
technical skills into the Air Force workforce. The measure will give 
Air Force managers expanded use of voluntary early retirement 
incentives to create job openings to be filled by new employees with 
cutting edge technological skills.
  The rapid pace of technology development and its importance to our 
economy and national defense is well recognized. At the same time, the 
Defense Department is faced with a rapidly changing and uncertain 
threat. The convergence of these trends means that the technical 
challenges faced by defense personnel will be greater than at any other 
time in our history. Defense employees must be capable of meeting these 
challenges if our armed services are to remain the most superior 
fighting force in the world.
  Unfortunately, existing personnel laws do not give Defense Department 
managers the flexibility they need to keep up with rapidly changing 
personnel needs, especially in the scientific and technical fields. 
After more than ten years of much needed draw down and virtually no new 
hiring, the military services have been stymied in their efforts to 
acquire such personnel.
  Since 1989, the Defense Department has reduced the size of its 
workforce by more than 400,000 positions, or 36 percent. To make this 
astounding reduction possible, only a small number of new employees 
have been hired in the last decade. Thus, there has been an alarmingly 
disproportionate reduction in younger employees. The number of 
employees below the age of 31 has dropped 76 percent since 1989 and 
more than a third of the workforce will be eligible for retirement over 
the next 4 years.
  A crisis is looming in the Defense Department. Unless personnel 
practices are changed, the Pentagon will lurch from a predominantly 
senior workforce to one that is largely inexperienced. Without a smooth 
transition, vital institutional knowledge will not be passed on.
  This problem is particularly acute for the Air Force because of its 
historically heavy reliance on science and technology. The preservation 
and advancement of our Air Force's high tech advantage is more 
important than ever as new and uncertain threats to the country 
develop. The Air Force's dominant role in recent operations in Iraq and 
Kosovo also makes the case for continued improvement of our 
technological edge.
  To prevent a sudden workforce vacuum and allow for the orderly 
transfer of corporate knowledge to the next workforce, Mr. Hobson and I 
have crafted a temporary, experimental program. The measure makes a 
simple modification to the Voluntary Early Retirement Authority [VERA] 
and Voluntary Separation Incentive Pay [VSIP] programs that are already 
in existing law for Defense Department employees. Because of our 
special concern for the Air Force and the Air Force's strong support 
for personnel system reforms, this demonstration program would be 
conducted by that service.
  Under the measure, for a limited time period, Air Force leaders would 
have the power to offer financial incentives without having to 
eliminate workforce numbers. The amount of the incentive that an 
employee could be offered will be determined by the same formula that 
the current VERA/VSIP law uses, which could be as much as $25,000. 
Under this measure, work
  The test program is limited to no more than 1,000 employees annually 
and terminates after five years.
  In addition to permitting the Air Force to reshape and stabilize its 
workforce, it will also save substantial amounts of money because the 
salary of a retirement-eligible employee averages almost twice that of 
a replacement hire. Therefore, despite the initial outlays required for 
retirement incentives, the Air Force estimates the Hall-Hobson bill 
will save about $68,000 over a 5-year period for each senior slot 
opened for an entry level worker and over a seven year period, the 
cumulative savings could be as much as $120 million.
  The measure also includes a provision that allows the Air Force to 
hire entry level personnel more quickly provided that they have strong 
academic records. It is not enough for us to create positions for new 
high tech employees. If we are going to get the best, we also have to 
make the Air Force competitive with high tech industry in hiring them. 
The hiring process takes too long to attract new college graduates in 
scientific and technical fields who can get jobs in the private sector 
in only a fraction of the time it takes in the military services. I am 
familiar with attempts by the Air Force Research Laboratory to hire new 
graduates that took more than a year. In many of these cases, the job 
prospects gave up and took other jobs.
  To further strengthen the workforce, the bill also gives the Air 
Force the authority to hire a small number of eminent scientists from 
the private sector for periods of 4 years or less. These experts will 
bring unique cutting-edge skills into the research laboratory that will 
jump start new efforts in critical technology areas. The temporary 
nature of these positions gives the Air Force the agility to move at 
the pace of technology development, rotating experts through as they 
are needed. This provision is modeled after existing legislation for 
the Defense Advanced Research Project Agency [DARPA] which has been 
successful in infusing this defense agency with creative new scientific 
ideas.
  This legislation is a win-win situation for everyone. The Air Force 
will get the skills it wants and those people considering retirement 
are given the financial boost that allows them to retire early. The Air 
Force also saves money in the long term and our country will be better 
positioned to maintain our national security.
  Moreover, this experimental pilot program will provide valuable 
information that can be used to address similar workforce problems in 
the other services and non-defense Federal agencies.

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Air Force Work Force Renewal 
     Act''.

     SEC. 2. TEMPORARY AUTHORITY REGARDING VOLUNTARY SEPARATION 
                   INCENTIVES AND EARLY RETIREMENT FOR EMPLOYEES 
                   OF THE DEPARTMENT OF THE AIR FORCE.

       (a) Separation Pay.--Section 5597(b) of title 5, United 
     States Code, is amended by adding at the end the following: 
     ``Under such program separation pay may also be offered for 
     the purpose of maintaining continuity of skills among 
     employees of the Department

[[Page 6978]]

     of the Air Force and adapting the skills of the workforce of 
     such Department to emerging technologies critical to the 
     needs and goals of such Department.''.
       (b) Retirement Under Civil Service Retirement System.--
     Section 8336 of such title is amended by adding at the end 
     the following new subsection:
       ``(o)(1) An employee of the Department of the Air Force who 
     is separated from the service voluntarily as a result of a 
     determination described in paragraph (2) after completing 25 
     years of service or after becoming 50 years of age and 
     completing 20 years of service is entitled to an annuity.
       ``(2) A determination under this paragraph is a 
     determination by the Secretary of the Air Force that the 
     separation described in paragraph (1) is necessary for the 
     purpose of maintaining continuity of skills among employees 
     of the Department of the Air Force and adapting the skills of 
     the workforce of the Department to emerging technologies 
     critical to the needs and goals of the Department.''.
       (c) Retirement Under Federal Employees' Retirement 
     System.--Section 8414 of such title is amended by adding at 
     the end the following new subsection:
       ``(d)(1) An employee of the Department of the Air Force who 
     is separated from the service voluntarily as a result of a 
     determination described in paragraph (2) after completing 25 
     years of service or after becoming 50 years of age and 
     completing 20 years of service is entitled to an annuity.
       ``(2) A determination under this paragraph is a 
     determination by the Secretary of the Air Force that the 
     separation described in paragraph (1) is necessary for the 
     purpose of maintaining continuity of skills among employees 
     of the Department of the Air Force and adapting the skills of 
     the workforce of the Department to emerging technologies 
     critical to the needs and goals of the Department.''.
       (d) Limitation of Applicability.--The authority to provide 
     separation pay and retirement benefits under the amendments 
     made by this section--
       (1) may be exercised with respect to not more than 1000 
     civilian employees of the Department of the Air Force during 
     each calendar year; and
       (2) shall expire on the date that is five years after the 
     date of the enactment of this Act.

     SEC. 3. AIR FORCE EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM 
                   FOR TECHNICAL PERSONNEL.

       (a) Program Authorized.--During the 5-year period beginning 
     on the date of the enactment of this Act, the Secretary of 
     the Air Force may carry out a program of experimental use of 
     the special personnel management authority provided in 
     subsection (b) in order to facilitate recruitment of civilian 
     personnel to perform the following:
       (1) Research and exploratory or advanced development.
       (2) Acquisition of major weapons systems, excluding 
     sustainment activities.
       (b) Special Personnel Management Authority.--(1) Under the 
     program, the Secretary may--
       (A) appoint eminent scientists and engineers from outside 
     the civil service and uniformed services (as such terms are 
     defined in section 2101 of title 5, United States Code) to 
     not more than 62 positions in the Department of the Air Force 
     without regard to the provisions of such title governing the 
     appointment of employees in the civil service, except that 
     the Secretary shall--
       (i) provide for consideration of veterans' preference 
     eligibility as described in section 2108 of such title; and
       (ii) follow merit system principles, as established in 
     chapter 23 of such title;
       (B) prescribe the rates of basic pay for positions to which 
     employees are appointed under subparagraph (A) at rates not 
     in excess of the rate payable for positions at level I of the 
     Executive Schedule under section 5312 of such title; and
       (C) make payments to any employee appointed under 
     subparagraph (A) in addition to basic pay within the 
     limitation applicable to the employee under subsection 
     (d)(1).
       (2) Of the 62 positions described in paragraph (1)--
       (A) 50 of such positions shall be allocated to 
     organizations performing research and exploratory or advanced 
     development; and
       (B) 12 of such positions shall be allocated to 
     organizations whose primary mission is the development and 
     acquisition of major weapons systems, excluding sustainment 
     activities.
       (c) Limitation on Term of Appointment.--(1) Except as 
     provided in paragraph (2), the service of an employee under 
     an appointment under subsection (b)(1) may not exceed 4 
     years.
       (2) The Secretary may, in the case of a particular 
     employee, extend the period to which service is limited under 
     paragraph (1) by not more than 2 years if the Secretary 
     determines that such action is necessary to promote the 
     efficiency of the Department of the Air Force.
       (d) Limitations on Additional Payments.--(1) The total 
     amount of additional payments paid to an employee under 
     subsection (b)(1)(C) for any 12-month period may not exceed 
     the lesser of the following amounts:
       (A) $25,000.
       (B) The amount equal to 25 percent of the employee's annual 
     rate of basic pay.
       (2) An employee appointed under subsection (b)(1) is not 
     eligible for a bonus, monetary award, or other monetary 
     incentive for service other than payments authorized under 
     subsection (b)(1)(C).
       (e) Period of Program.--(1) The program authorized under 
     this section shall terminate at the end of the 5-year period 
     referred to in subsection (a).
       (2) After the termination of the program--
       (A) no appointment may be made under subsection (b)(1);
       (B) a rate of basic pay prescribed under subsection 
     (b)(1)(B) may not take effect for a position; and
       (C) no period of service may be extended under subsection 
     (c).
       (f) Savings Provisions.--In the case of an employee who, on 
     the day before the termination of the program, is serving in 
     a position pursuant to an appointment under subsection 
     (b)(1)--
       (1) the termination of the program shall not terminate the 
     employee's employment in that position before the expiration 
     of the lesser of--
       (A) the period for which the employee was appointed; or
       (B) the period to which the employee's service is limited 
     under subsection (c), including any extension made under 
     paragraph (2) of
       (2) the rate of basic pay prescribed for the position under 
     subsection (b)(1)(B) may not be reduced for so long (within 
     the period applicable to the employee under paragraph (1)) as 
     the employee continues to serve in the position without a 
     break in service.
       (g) Annual Report.--(1) Not later than October 15 of each 
     of years 2001 through 2006, the Secretary shall submit a 
     report on the program to the Committees on Armed Services of 
     the Senate and the House of Representatives.
       (2) The annual report shall contain, for the period covered 
     by the report, the following:
       (A) A detailed discussion of the exercise of authority 
     under this section.
       (B) The sources from which individuals appointed under 
     subsection (b)(1) were recruited.
       (C) The methodology used for identifying and selecting such 
     individuals.
       (D) Any additional information that the Secretary considers 
     helpful for assessing the utility of the authority under this 
     section.

     SEC. 4. AIR FORCE EXPERIMENTAL HIRING PROGRAM.

       (a) Program Authorized.--During the 5-year period beginning 
     on the date of the enactment of this Act, the Secretary of 
     the Air Force may carry out a program of experimental use of 
     the authority provided in subsections (b), (c), and (d) in 
     order to facilitate recruitment of civilian personnel to 
     carry out the following:
       (1) Research and exploratory or advanced development.
       (2) Acquisition of major weapons systems, excluding 
     sustainment activities.
       (b) Category Ranking.--(1) Notwithstanding sections 3309, 
     3313 3317(a), and 3318(a) of title 5, United States Code, the 
     Secretary may provide that applicants for positions in the 
     Department of the Air Force be evaluated according to a 
     quality category rating system based on relative degrees of 
     merit, rather than according to numerical ratings.
       (2) Under the system described in paragraph (1), each 
     applicant who meets the minimum qualification requirements 
     shall be assigned to the appropriate category based on an 
     evaluation of the quality of the applicant's knowledge, 
     skills, and abilities relative to successful performance in 
     the position to be filled.
       (3) Within each such quality category, applicants who are 
     eligible for veterans' preference under section 2108 of such 
     title shall have priority over applicants who are not 
     eligible for such preference.
       (4)(A) Each applicant, other than applicants for scientific 
     and professional positions at the GS-9 level or above, or the 
     equivalent, who meets the minimum qualifications requirements 
     and who is eligible for veterans' preference under section 
     2108(3)(C) of such title and who has a compensable service-
     connected disability of 10 percent or more shall have the 
     highest priority in the quality category.
       (B) Applicants for scientific or professional positions at 
     the GS-9 level or above, or the equivalent, shall be listed 
     within their category grouping, except that applicants who 
     are eligible for veterans' preference under such section 2108 
     shall have priority over applicants who are not eligible for 
     preference. Among preference eligibles, preference shall be 
     given without regard to the type of preference.
       Under the system described in paragraph (1), an appointing 
     official may select any qualified applicant within the 
     highest category, except that such an official may not pass 
     over a preference eligible for an individual who is not a 
     preference eligible in the same category unless the 
     requirements of section 3312(b) or 3318(b) of title 5, United 
     States Code, are satisfied. If fewer than 3 applicants

[[Page 6979]]

       (c) Shortage and Critical Need Hiring Authority.--(1) 
     Notwithstanding section 3304(b) of title 5, United States 
     Code, the Secretary of the Air Force may appoint individuals 
     into the competitive service to fill civilian positions in 
     the Department of the Air Force without competition, provided 
     public notice has been given and the positions meet one of 
     the following criteria:
       (A) There is a severe shortage of qualified candidates for 
     the position.
       (B) There is a need for expedited hiring for the position.
       (C) The position is unique and has special qualifications.
       (D) The position has a historically high turnover rate.
       (2) The Secretary may appoint individuals with exceptional 
     academic qualifications or special experience to positions 
     described in paragraph (1). Individuals who qualify on the 
     basis of education must possess a cumulative grade point 
     average of 3.5 or higher on a 4.0 scale (or the equivalent 
     grade point average on a different scale).
       (3) Applicants who are eligible for veterans' preference 
     under section 2108 of title 5, United States Code, shall have 
     priority over applicants who are not eligible for such 
     preference. Among preference eligibles, a preference eligible 
     applicant under subparagraphs (C) through (G) of section 
     2108(3) of such title shall have priority over an applicant 
     who is eligible for preference under subparagraph (A) or (B) 
     of such section. An appointing official may not pass over a 
     preference eligible applicant to select a nonpreference 
     eligible applicant unless the requirements of section 3312(b) 
     or 3318(b) of such title are satisfied.
                                  ____


                    Air Force Work Force Renewal Act


                     Section-by-Section Description

     Section 1. Designates the legislation as ``Air Force Work 
         Force Renewal Act''
     Section 2. Temporary Authority Regarding Voluntary Separation 
         Incentives and Early Retirement for Employees of the 
         Department of the Air Force
       2(a). Permits the Air Force to offer incentive bonuses of 
     up to $25,000 for maintaining continuity of skills among 
     employees of the Air Force and for adapting the skills of the 
     work force to critical emerging technologies. This is an 
     extension of the existing Department of Defense separation 
     pay program.
       2(b). Establishes that a retiring employee of the Air Force 
     who is under the Civil Service Retirement System (CSRS) may 
     become eligible for an annuity after completing 25 year of 
     service or after becoming 50 years of age and completing 20 
     years of service; and if the Air Force Secretary determines 
     that the separation is necessary for the purpose of 
     maintaining continuity of skills in the Air Force and for 
     adapting the skills of the work force to critical emerging 
     technologies.
       2(c) Establishes the same early retirement authority as 
     paragraph 1(b) for Air Force employees under the Federal 
     Employees' Retirement System (FERS).
       2(d) Limits the separation pay and retirement benefits 
     established in this section to 1000 positions per calendar 
     year for a period of five years after the date of the 
     enactment of this Act.
     Section 3. Air Force Experimental Personnel Management 
         Program for Technical Personnel
       3(a) On an experimental basis for a five-year period, to 
     facilitate recruitment of civilian personnel, authorizes the 
     Air Force to fill positions for 1) research and exploratory 
     or advanced development, and 2) acquisition of major weapons 
     systems.
       3(b) Limits the hiring authority under this section to a 
     total of 62 eminent scientists and engineers from outside the 
     civil service and uniformed services. Of his number, 50 shall 
     be allocated to organizations performing research and 
     exploratory or advanced development, and 12 shall be 
     allocated to organizations whose primary mission is the 
     development and acquisition of major weapon systems, 
     excluding sustainment activities. Certain civil service rules 
     are waived. Veterans' preference is preserved.
       3(c) In general, limits appointments under this section to 
     no more than four years; however, the Secretary of the Air 
     Force may extend an appointment an additional two years.
       3(d) Limits the total annual amount of additional payments 
     (such as bonuses or monetary awards), paid to an employee 
     hired under this section to $25,000 or an amount equal to 25 
     percent of the employee's annual salary, which ever is less.
       3(e) Provides that no employee may be hired under this 
     section (or appointment extended) after the five-year 
     experimental program expires.
       3(f) Allows employees appointed under this section to 
     finish their existing term, (without extension), following 
     the expiration of the authority under this section.
       3(g) Requires the Air Force to provide an annual report on 
     the experimental program to the Committees on Armed Services 
     of the Senate and the House of Representatives.
     Section 4. Air Force Experimental Hiring Program
       4(a) On an experimental basis for a five-year period, to 
     facilitate recruitment of civilian personnel, authorizes the 
     Air Force to fill positions for 1) research and exploratory 
     or advanced development, and 2) acquisition of major weapons 
     systems.
       4(b) Provides for a system to rate candidates for 
     employment positions under this section. Veterans' preference 
     is preserved.
       4(c) Under specific conditions, authorizes the hiring with 
     expedited competition of individuals with exceptional 
     academic qualifications or unique experience under this 
     section.

     

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