[Federal Register Volume 63, Number 41 (Tuesday, March 3, 1998)]
[Notices]
[Pages 10440-10462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5424]
[[Page 10439]]
_______________________________________________________________________
Part III
Office of Personnel Management
_______________________________________________________________________
Laboratory Personnel Management Demonstration Project; Department of
the Army, U.S. Army Medical Research and Materiel Command, Fort
Detrick, Frederick, Maryland; Notice
Federal Register / Vol. 63, No. 41 / Tuesday, March 3, 1998 /
Notices
[[Page 10440]]
OFFICE OF PERSONNEL MANAGEMENT
Laboratory Personnel Management Demonstration Project; Department
of the Army, U.S. Army Medical Research and Materiel Command, Fort
Detrick, Frederick, Maryland
AGENCY: Office of Personnel Management.
ACTION: Notice of approval of demonstration project final plan.
-----------------------------------------------------------------------
SUMMARY: The National Defense Authorization Act for Fiscal Year 1995
authorizes the Secretary of Defense, with Office of Personnel
Management (OPM) approval, to conduct personnel demonstration projects
at Department of Defense (DoD) laboratories designated as Science and
Technology Reinvention Laboratories. 5 U.S.C. 4703 authorizes 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.
DATES: This demonstration project may be implemented at the U.S. Army
Medical Research and Materiel Command (MRMC) beginning June 3, 1998.
FOR FURTHER INFORMATION CONTACT: MRMC: Carol Dick, US Army Medical
Research and Materiel Command, ATTN: MCHD-CP, 810 Schreider Street,
Suite 120, Fort Detrick, Maryland 21702-5000, phone 301-619-2247. OPM:
Fidelma A. Donahue, U.S. Office of Personnel Management, 1900 E Street,
NW, Room 7460, Washington, DC 20415, phone 202-606-1138.
SUPPLEMENTARY INFORMATION:
1. Overview
On March 12, 1997, [62 FR 11676] OPM published this proposed
demonstration plan and received 125 comments (one letter had 62
signatures and another had 35 signatures). Seven individuals commented
on the Federal Register notice at the Public Hearings. These comments
brought new and different perspectives to the attention of those
responsible for implementing, overseeing, and evaluating the project.
The comments highlighted instances of either miscommunication and/or
misunderstanding of the present system as well as the project
interventions. Further, the comments underscored the importance of
providing training to employees and supervisors on the demonstration
project. In consideration of the comments received, the demonstration
project has been modified to remove the annual general increase from
the performance pay pool. This change required modification,
clarification, and/or expanded text in the plan to address technical
provisions. A summary of comments received, along with accompanied
responses, is provided below:
A. Pay-for-Performance
1. Comment: There were 120 comments (one letter had 62 signatures
and another had 35 signatures) that expressed concern over the
inclusion of the annual general increase (often referred to as ``cost-
of-living allowance'' (COLA) by many commentors) in the performance pay
pool. Several indicated they believed it was inappropriate and may be
illegal to deny their annual general increase, which they believed was
provided to them by Congress to off-set inflation. Several stated that
the annual general increase is not tied to performance, therefore, it
should not be included in a pay-for-performance experimental program.
One commentor stated this will be the first time a demonstration
project will include the annual general increase in its ``merit pay
pool,'' and another stated neither China Lake nor the National
Institute of Standards and Technology included the annual general
increase in their demonstrations, and that the China Lake demonstration
had ended because of problems with the experimental personnel system.
Several commentors stated they were never informed prior to the
proposed plan that the annual general increase/COLA would be part of
the performance pay pool, while others claimed they had raised
objections to the annual general increase/COLA being part of the
performance pay pool prior to the publication of the Federal Register,
yet their objections were ignored. Many expressed concern that without
sufficient safeguards to prevent favoritism and abuse of power,
inclusion of the annual general increase in the performance pay pool
will result in supervisors denying increases to employees' base pay
and/or bonuses and will reduce teamwork, i.e., pit employee against
employee, and destroy morale. One employee suggested that because
employees have no control over inflation, but do control their
performance, that the awards budget should be increased to reward
performance. Some commentors, however, did agree with the pay-for-
performance concept.
Response: The comments on the annual general increase demonstrated
both miscommunication and misunderstanding of both the present and
proposed personnel systems. Briefings were provided to all employees at
each subordinate activity which included the fact that the ``annual
general increase'' would be included in the performance pay pool.
During the 2\1/2\ years of project development and design, many changes
occurred. Periodic updates were provided to the activity Commanders and
Directors for dissemination to the workforce. Commentors believed the
term ``annual general increase'' was a cost of living allowance. For
clarification purposes, the General Schedule (GS) pay adjustments
authorized under 5 U.S.C. 5303 are based on the cost of labor, not the
cost of living. Pay adjustments are linked to changes in the Employment
Cost Index (ECI). The ECI measures the overall rate of change in
employer's compensation costs in the private and public sectors,
excluding the Federal Government. The ECI does not measure the cost of
consumer goods and services. Additionally, the Department of Navy's
``China Lake'' demonstration project did include the annual general
increase in its incentive pay pool for the purposes of rewarding
employees based on performance. This compensation mechanism was
designed to send a clear message that top performers are valued in the
organization. The evaluations showed that a higher retention rate among
top performers resulted under the China Lake demonstration project.
Based on its success, Congress made permanent the China Lake
demonstration project under the same authority that granted
authorization of the DoD laboratory demonstration projects. We
acknowledge concerns expressed by employees and have attempted to build
a number of checks and balances in the new personnel system to ensure
an equitably administered program. The awards program is separate from
pay for performance and does not impact the performance pay pool. In
light of the comments received, the annual general increase was removed
from the performance pay pool. This change necessitated modification/
revision in various parts of the plan. These changes are in Section
III. C (Pay for Performance Management System), (Pay for Performance),
and (Performance Pay Increases and/or Performance Bonus).
2. Comment: Two commentors were concerned that any type of
performance bonus, rather than an increase in base pay, will have a
negative effect on their retirement (e.g., determination of high-three
salaries/matching funds for Thrift Savings Plan).
Response: Employees will have the potential for higher salaries
(base pay
[[Page 10441]]
and performance bonus) than currently afforded in the GS system, based
on their performance. The demonstration proposal clearly changes the
methods of providing incentives to employees, including the provision
of individual incentive bonuses or pay. Changing the method of
determining base pay increases does not change any provision of the
retirement system or any other benefit program. Under demonstration
authority, retirement provisions cannot be changed.
B. Performance Pay Pool
1. Comment: Two comments received asked why employees rated at the
``C'' level in the lower half of the pay band receive an increase to
their basic rate of pay while employees whose salary is beyond the mid-
point with the same rating, will receive no increase to their basic
rate of pay. They concluded that an employee who continues to perform
at the ``C'' level could also end up in a lower pay band. Further, they
felt that those employees who perform at the ``A'' or ``B'' level and
have reached the top of their pay band may not move into the next pay
band, and that the most these employees may receive is a performance
bonus, which defeats the whole concept of rewarding outstanding
performance.
Response: References to the mid-point of the pay bands (lower and
upper half) no longer apply throughout the text of the proposed plan
because of the change to remove the annual general increase from the
performance pay pool (reference A1). Employees who are rated ``C'' will
receive the annual general increase and locality adjustment, but will
not be eligible for a performance based increase to their basic rate of
pay or a performance bonus. Employees who perform at the ``A'' or ``B''
level will receive an adjustment in their basic rate of pay, a
performance bonus, or a combination of both to reward them for
performance, in addition to the annual general increase and locality
adjustment. These changes are in Section III. C (Pay for Performance).
Employees who have reached the top of their pay band may not move into
the next pay band without a promotion. Movement into the next higher
pay band constitutes a ``promotion'' which requires the employee to
perform ``higher level duties,'' not just continue to perform their
current duties at the ``A'' or ``B'' level in their current pay band.
2. Comment: Two comments received requested clarification on the
upper versus lower half of the pay bands and questioned why employees
were compensated differently depending on their performance and
location within the pay band. A single comment was received on the size
of the Engineers and Scientists (E&S) Pay Band II, specifically why it
contains 8 pay bands when the proposed plan stated: ``Each occupational
family will be divided into three to five pay bands * * *''
Response: The decision to withdraw the annual general increase from
the performance pay pool and continue granting the annual general
increase to employees rated ``A,'' ``B,'' or ``C'' eliminates the need
to determine upper and lower half of each pay band. The size of Pay
Band II of the E&S Occupational Family encompasses 8 grades (not pay
bands) under the current General Schedule (GS) system and was designed
to allow progression from entry level to full-performance level of
those positions. As illustrated in the proposed plan, the E&S
Occupational Family is divided into 5 pay bands. The elimination of the
distinctions between the upper and lower halves of the pay band and the
mid-point principle have been removed in Section III. C (Performance
Pay Pool).
C. Supervisory Bonus
Comment: Three commentors were concerned that no guidelines were
established to avoid supervisory/managerial misuse of power, and one
expressed concern that supervisors would be rewarded via supervisory
bonuses, prior to demonstration of performance and that payment of the
supervisory bonus from the performance pay pool was inappropriate.
Response: The supervisory bonus may be granted to recognize
supervisory responsibilities required most often of those in the same
pay band as non-supervisory subordinates. The Personnel Demonstration
Project Standard Operating Procedures will delineate the criteria
Commanders/Directors are to use when making a decision to grant these
bonuses, which must be negotiated annually, and will not be treated as
basic pay. The funds to pay supervisory bonuses are not a part of the
pay-for-performance pool. It is anticipated that situations warranting
supervisory bonuses will be minimal. Clarification has been added to
Section III. C (Supervisory Bonus).
D. Revised Reduction-in-Force (RIF) Procedures
Comment: Five commentors expressed concerns about the proposed RIF
procedures. Two were concerned that their rights during a RIF have been
withdrawn or limited. One expressed concern that length of service was
the last retention factor considered. Another individual requested an
explanation of the order of the retention factors and the definition of
tenure. One individual requested a comparison of current versus
proposed RIF procedures.
Response: The RIF rights and protections afforded to employees have
not been removed. Current RIF procedures are covered under 5 CFR 351
and are complicated, costly, and relatively unresponsive to the needs
of the organization. MRMC believes that flexible and responsive
alternatives are needed that will place greater emphasis on performance
rather than length of service. Only four elements in the RIF procedures
have been modified: competitive areas, assignment rights, credit for
performance ratings, and service computation date, as outlined below:
(1) Competitive areas have been modified to make each of the four
occupational families a separate competitive area within each activity.
(2) Assignment rights have been modified to restrict bumping and
retreating to positions within the employee's current occupational
family, one pay band below the employee's current pay band. A
preference eligible veteran with a compensable service-connected
disability of 30% or more may retreat to positions, within the
employee's current occupational family, two bands (or the equivalent of
five (5) grades) below his/her current band.
(3) Credit for performance has been modified to be cumulative
rather than averaged, and the number of years applied to specific
ratings have been changed to A-10, B-7, C-3, and F-0. Cumulative
performance ratings will serve as a stand alone retention determination
in the RIF process after consideration of tenure and veterans
preference.
(4) The service computation date (as determined by length of
service) includes all creditable service (civilian and military) and
will be used in situations where credit for performance results in
equal standing of two or more individuals in a RIF situation. Tenure is
the employee's type of appointment, i.e., career, career-conditional,
temporary, term, excepted service, etc. Clarification has been provided
in Section III. F (Revised Reduction-in-Force (RIF) Procedures) to
explain when service computation date (length of service) will be
applied.
E. Conversion
1. Comment: One comment concerned employees being adversely
affected by receiving a lump sum bonus instead of an increase in their
basic rate of pay if
[[Page 10442]]
the demonstration project ends or if employees transfer out of the
project.
Response: The lump-sum bonus referred to by the commentor is the
prorated within-grade increase (WGI) buyout as described in the
conversion procedures in the project plan. However, the inclusion of
pay banding, as outlined in the demonstration project, provides the
potential for higher pay (base pay and performance bonus) than
currently afforded in the GS system. Basic rates of pay attained during
participation in the demonstration project will continue upon lateral
conversion from the demonstration project to a GS position or if the
demonstration project ends. (Except for Pay Band V positions in certain
circumstances).
2. Comment: Two commentors asked exactly when the WGI buyout would
be paid (either at the beginning of the demonstration project or on the
one year anniversary date). Another commentor expressed concern over
the fiscal burden of the lump-sum payment of the prorated WGIs.
Response: Clarification is provided under Part V of this plan. The
funding required to pay employees for time served towards their WGI
will be calculated/documented prior to implementation of the project
and those funds will be set aside to be paid in a lump-sum at the one
year anniversary of the demonstration project. These funds will be
separate and apart from the performance pay pool for this one time
payment.
F. Evaluation Plan
Comment: One commentor stated he did not see anything which listed
an employee's increased satisfaction with pay, pay equity or
performance awards or with the agency's understanding of personal or
family issues as an expected or desired benefit.
Response: Part VII of the proposed plan provided information on the
Evaluation Plan. Employee attitudes and feedback using surveys,
structured interviews and focus groups, will be included in the
evaluation methods used to assess the impact of the project and will be
ongoing for the duration of the project. The personnel demonstration
project will not be evaluating personal or family issues. Because these
current policies and practices are not changed, these issues will not
be evaluated by the proposal.
G. Personnel Management Board
Comment: Four comments expressed concerns regarding the Personnel
Management Board (Board). Specifically, will the selection procedures
provide for a true representation of the civilian workforce, what are
the qualifications to be on the board, and will there be checks and
balances to ensure equitable treatment?
Response: The composition of the Personnel Management Board will be
determined by the Commander, MRMC. We are sensitive to the concerns
raised as to the composition of the Personnel Management Board. These
concerns will be considered as the Commander, MRMC appoints members to
the Personnel Management Board. The Personnel Management Board will be
particularly sensitive to issues of fairness and equity, and is charged
with the responsibility of providing oversight, policy, guidelines, and
corrective action. Section II. H (Personnel Management Board) of the
proposed plan spelled out the Board responsibilities which are
delegated to the subordinate activity Commanders/Directors.
H. Miscellaneous Comments
1. Comment: A single comment stated that the proposed system
violated the first principle of personnel management in that the people
(i.e., military supervisors) administering the demonstration plan will
not be subject to its provisions.
Response: It is true that military supervisors will not be covered
by the demonstration project. However, it is also true that all
supervisors (military and civilian) must comply with the rules and
regulations set forth by the project. Project oversight will be
provided by the Personnel Management Board and an executive steering
committee made up of top level executives within the Department of
Army.
2. Comment: A single commentor wanted to know why employees in the
Senior Executive Service (SES), the Civilian Intelligence Personnel
Management System (CIPMS), and the Federal Wage System (FWS) were not
covered by the MRMC demonstration project.
Response: The SES, CIPMS, and FWS employees are all covered by
personnel regulations, separate and apart from those governing General
Schedule employees. The number of employees covered by these personnel
systems were too small to attempt proposing changes and to realize any
meaningful results at this time.
3. Comment: One commentor requested the demonstration project plan
be written in terms that everyone understands.
Response: The comment is a good suggestion; however, the project
plan replaces many of the existing title 5 provisions, thus it must
contain technical language. Wherever possible, we have tried to use
language as simple as possible throughout the project plan.
4. Comment: One employee expressed concern that the Defense Finance
and Accounting System (DFAS) can't handle formula driven payroll now,
therefore, how can DFAS be expected to handle the new payroll system
under the demo?
Response: Management from DFAS has been involved as DoD Research
and Development Laboratories have moved towards implementing
demonstration projects. Every effort is being made to allow for a
smooth transition.
2. Demonstration Project System Changes
The following summarizes the changes and clarifications to the
project plan that were of paramount interest to employees:
(1) Section II. E (Participating Employees). Deleted reference to
ST employees following performance appraisal and awards provisions of
the demonstration project.
(2) Section III. C (Pay for Performance Management System). Deleted
the annual general increase from the funding for performance pay
increases and/or bonuses, and to correct the computation in the example
from ``1,750,000'' to ``750,000''; adjusted shares to the following:
``A''=2 shares, ``B''=1 share, ``C''=0; and reflected modifications
required due to the withdrawal of the annual general increase from the
performance pay pool funding. In addition, references to mid-point
(upper/lower pay band) within a pay band have been deleted since they
no longer apply.
(3) Section III. C (Pay for Performance Management System).
Clarified the reason for granting a supervisory bonus and that funding
for such will not be part of the performance pay pool.
(4) Section III. F (Revised Reduction in Force (RIF) Procedures).
Clarified when service computation date (length of service) will be
used in RIF procedures.
(5) Section V (Conversion). Provided for certain pay increases for
non-competitive promotion equivalents during the first 12 months
following conversion.
Dated: February 26, 1998.
Office of Personnel Management.
Janice R. Lachance,
Director.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
[[Page 10443]]
B. Problems with the Present System
C. Changes Required/Expected Benefits
D. Participating Organization
E. Participating Employees
F. Labor Participation
G. Project Design
H. Personnel Management Board
III. Personnel System Changes
A. Broadbanding
B. Classification
C. Pay-for-Performance Management System
D. Hiring and Appointment Authorities
E. Expanded Developmental Opportunities Program
F. Revised Reduction-In-Force (RIF) Procedures
IV. Training
V. Conversion
VI. Project Duration
VII. Evaluation Plan
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulation
Appendix A: Occupational Series by Occupational Family
Appendix B: Project Evaluation and Oversight
Appendix C: Performance Elements
Appendix D: Benchmark Performance Standards
I. Executive Summary
This project was designed by the Department of the Army (DA), with
participation of and review by the Department of Defense (DoD) and the
Office of Personnel Management (OPM). The purpose of the project is to
achieve the best workforce for the Medical Research & Materiel Command
(MRMC) mission, adjust the workforce for change, and improve workforce
quality.
The MRMC strives to exceed the greatest expectations of its many
customers. To achieve this, the MRMC must be able to balance customer
requirements for near-term technical and scientific products and
information with the evolving capabilities of the workforce. These
purposes will be significantly enhanced by interventions such as
expanded developmental opportunities, the contingent employee
appointment authority, broadbanding, pay for performance, etc.
The foundations of this project are based on the concept of linking
performance to pay for all covered positions; simplifying paperwork and
the processing of classification and other personnel actions;
emphasizing partnerships among management, employees and unions
representing covered employees; and delegating classification and other
authorities to line managers. Additionally, the research intellect of
the MRMC workforce will be revitalized through the use of expanded
developmental opportunities. The use of these expanded opportunities
will reinvigorate the creative intellect of the research and
development community.
Development and execution of this project will be in-house budget
neutral, based on a baseline of September 1996 in-house costs and
consistent with the DA plan to downsize laboratories. Army managers at
the DoD S&T Reinvention Laboratory sites will manage and control their
personnel costs to remain within established in-house budgets. An in-
house budget is a compilation of costs of the many diverse components
required to fund the day-to-day operations of a laboratory. These
components generally include pay of people (labor, benefits, overtime,
awards), training, travel, supplies, non-capital equipment, and other
costs depending on the specific function of the activity.
This project will be under the joint sponsorship of the Assistant
Secretary of the Army for Research, Development and Acquisition and the
Assistant Secretary of the Army for Manpower and Reserve Affairs. The
Commander, U.S. Army Medical Command (MEDCOM), will execute and manage
the project. External project oversight within the Army will be
achieved by an executive steering committee made up of top-level
executives, co-chaired by the Deputy Assistant Secretary of the Army
for Research and Technology and the Deputy Assistant Secretary of the
Army (Civilian Personnel Policy). Oversight external to the Army will
be provided by DoD and OPM.
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoD laboratories can be enhanced by allowing greater managerial
control over personnel functions and, at the same time, expanding the
opportunities available to employees through a more responsive and
flexible personnel system. The quality of DoD laboratories, their
people, and products has been under intense scrutiny in recent years.
The perceived deterioration of quality is due, in substantial part, to
the erosion of control which line managers have over their human
resources. This demonstration, in its entirety, attempts to provide
managers, at the lowest practical level, the authority, control, and
flexibility needed to achieve quality laboratories and quality
products.
B. Problems with the Present System
The MRMC provides medical solutions for military requirements to
protect and sustain the force. To do this, its management must acquire
and retain an enthusiastic, innovative, and highly educated/trained
workforce. The MRMC must be able to compete with the private sector for
the best talent and be able to make job offers in a timely manner with
the attendant bonuses and incentives to attract high quality employees.
Today, industry laboratories can make an offer of employment to a
promising new hire before the government can prepare the paperwork
necessary to begin the recruitment process.
Currently, jobs are described using a classification system that is
overly complex and specialized. This hampers a manager's ability to
shape the workforce and match the positions while making best use of
the employees. Managers must be given local control of positions and
their classification to move both their employees and vacancies freely
within their organization to other lines of the business activities to
match the life cycle needs of supported customers.
These issues work together to hamper supervisors in all areas of
human resource management. Hiring restrictions and overly complex job
classifications, coupled with poor tools for rewarding and motivating
employees and a system that does not assist managers in removing poor
performers, builds stagnation in the workforce and wastes valuable
time.
C. Changes Required/Expected Benefits
This project is expected to demonstrate that a human resource
system tailored to the mission and requirements of the MRMC will result
in: (a) Increased quality in the total workforce and the products they
produce; (b) increased timeliness of key personnel processes; (c)
increased retention of high quality employees and increased non-
retention of poor quality employees; and (d) increased satisfaction
with the MRMC and its products by all customers served.
The MRMC demonstration project builds on the successful features of
demonstration projects at China Lake and the National Institute of
Standards and Technology (NIST). These demonstration projects have
produced impressive statistics on the job satisfaction for their
employees versus that for the federal workforce in general. Therefore,
in addition to expected benefits mentioned above, the MRMC
demonstration project expects to find more satisfied employees on many
aspects of the demonstration project including pay equity,
classification accuracy, and fairness of performance management. A full
range of measures
[[Page 10444]]
will be collected during Project Evaluation (Section VII).
D. Participating Organization
This demonstration project will cover approximately 1,000 MRMC
civilian employees at all geographic sites within the United States. It
should be noted that many sites currently employ fewer than 10 people
and that the sites may change as the MRMC reorganizes, realigns, and
complies with Base Realignment and Closure Act requirements. Successor
organizations will continue coverage in the demonstration project.
Approximately 46 percent of covered employees are located at Fort
Detrick, Frederick, Maryland. The remaining employees are located at
the following sites: Aberdeen Proving Ground, Maryland; Falls Church,
Virginia; Fort Rucker, Alabama; Fort Sam Houston, Texas; Natick,
Massachusetts; Washington, DC; Tobyhanna Army Depot, Pennsylvania; Fort
Lee, Virginia; Tracy, California; Ogden, Utah; Brooks Air Force Base,
Texas; Dayton, Ohio; Tripler Army Medical Center, Hawaii; and Fort
Bragg, North Carolina. Additionally, the MRMC has some employees
participating in the Flexiplace Program who are geographically located
at Fort Collins, Colorado; Clarksville, Tennessee; and Jefferson,
Maryland.
E. Participating Employees
The demonstration project includes appropriated funded civilian
employees in the competitive and excepted service (to include non-
citizens hired in the absence of qualified citizens) paid under the
General Schedule (GS) pay system and DA Interns. The project plan does
not cover Senior Executive Service (SES) employees, Scientific and
Professional (ST) employees, Federal Wage System employees, and
employees assigned to the GS-080 series and presently covered by the
Civilian Intelligence Personnel Management System (CIPMS). Employees on
temporary appointments will not be covered in the demonstration
project. Personnel added to the MRMC in like positions, either through
appointment, promotion, reassignment, change to lower grade or where
their functions and positions have been transferred into the MRMC, will
be converted to the demonstration project.
F. Labor Participation
The National Federation of Federal Employees (NFFE) and the
American Federation of Government Employees (AFGE), represent
professional and nonprofessional GS employees at some sites within the
MRMC. The MRMC will fulfill its obligations to consult and/or negotiate
with the NFFE and AFGE, as appropriate, in accordance with 5 U.S.C.
4703(f) and 7117. The participation with the NFFE, and AFGE is within
the spirit and intent of Executive Order 12871. The bargaining units of
MRMC not endorsing the demonstration project will not participate.
G. Project Design
In October 1994, the MRMC began development of the specifics of
this personnel demonstration proposal. A Personnel Demonstration
Project Office was established and administrative support added in
April 1995. Briefings of the proposal were initially conducted for the
workforce at every participating subordinate activity with subsequent
briefings provided upon request by Commanders/Directors.
Status of the project was provided to subordinate activity
Commanders/Directors for dissemination to all employees. An electronic
mail address was established in the Fall of 1994 and made available to
all employees and managers for the purpose of expressing opinions and/
or obtaining specific information about the project.
Review of the proposal and input by the MEDCOM, MRMC workforce, as
well as critical and extensive reviews by Headquarters DA, the Office
of the Secretary of Defense, and OPM since April 1995, led to the
publication of the proposal in the March 12, 1997 Federal Register.
Subsequently, Public Hearings were held, and comments from interested
parties and the workforce were reviewed and considered, culminating in
the publication of the final MRMC demonstration project plan.
H. Personnel Management Board
The MRMC intends to establish an appropriate balance between the
personnel management authority/accountability delegated to subordinate
activity Commanders/ Directors and MRMC management/oversight
responsibilities by establishing a Personnel Management Board (PMB).
The Chairperson and members will be appointed by the Commander MRMC.
The PMB will serve to provide oversight, policy, guidelines, corrective
action, and evaluation as subordinate activity Commanders/Directors
execute the following:
1. formulate and execute the civilian pay budget;
2. determine the composition of the pay-for-performance pay pools
in accordance with the guidelines of this proposal and internal
procedures;
3. administer funds allocation to pay pool managers;
4. determine hiring and promotion salaries as well as exceptions to
pay-for-performance salary increases;
5. provide guidance to pay pool managers;
6. manage the awards pools;
7. select participants for the Expanded Developmental Opportunities
Program, long term training, and any special developmental assignments;
8. adhere to guidelines concerning the promotion of employees into
salary ranges designated ``high grades';
9. ensure in-house budget neutrality to include tracking of average
salaries, FTEs, etc.;
10. contact the PMB designee for problem resolution, recommending
changes in policy/procedure, etc.; and
11. ensure that all employees are treated in a fair and equitable
manner in accordance with all policies, regulations, and guidelines
covering this demonstration project.
III. Personnel System Changes
A. Broadbanding
Occupational Families
Occupations at the MRMC will be grouped into occupational families.
Occupations will be grouped according to similarities in type of work
and customary requirements for formal training or credentials. The
common patterns of advancement within the occupations as practiced at
DoD Laboratories and in the private sector will also be considered. The
current occupations and grades have been examined, and their
characteristics and distribution have served as guidelines in the
development of the four occupational families described below.
Positions included in each occupational family are listed in Appendix
A.
1. Engineers and Scientists. This occupational family includes all
technical professional positions, such as positions in the biological,
physical and social sciences, medical, veterinary, mathematical, and
engineering fields. Ordinarily, specific course work or educational
degrees are required for these occupations.
2. E&S Technicians. This occupational family contains specialized
functions in fields that provide direct technical support to the
scientific/engineering effort. Positions in these occupations may or
may not require completion of formal college course work. However,
training and skills in the various specialties are generally required.
3. Administrative. This occupational family contains specialized
functions in
[[Page 10445]]
such fields as management analysis, accounting, budgeting, contracting,
purchasing, legal, business and industry, library, quality assurance,
and supply. Special skills in administrative fields or special degrees
are required.
4. General Support. This occupational family is composed of
positions requiring special skills and knowledge, such as typing,
shorthand, or office automation skills, and job related experience.
Clerical work usually involves the processing and maintenance of
records. Assistant work requires knowledge of methods and procedures
within a specific administrative area. Support functions include
positions such as secretary, mail clerk, medical clerk, accounting
technician and supply technician.
Pay Bands
Each occupational family will be composed of discrete pay bands
(levels) corresponding to recognized advancement within the
occupations. These pay bands will replace grades. They will not be the
same for all occupational families. Each occupational family will be
divided into three to five pay bands, each pay band covering the same
pay range now covered by one or more grades. A salary overlap, similar
to the current overlap between GS grades, will be maintained.
Ordinarily, an individual will be hired at the lowest salary in a
pay band. Exceptional qualifications, specific organizational
requirements, or other compelling reasons may lead to a higher entrance
level within a band.
The MRMC broadbanding plan expands the broadbanding concept used at
China Lake and NIST by creating Pay Band V of the Engineers and
Scientists Occupational Family. This pay band is designed for Senior
Scientific Technical Managers.
Current OPM guidelines of Senior Executive Service (SES) and
Scientific and Professional (ST) positions do not fully meet the needs
of MRMC. The SES designation is appropriate for executive level
managerial positions whose classification exceeds the GS-15 grade
level. The primary knowledges and abilities of SES positions relate to
supervisory and managerial responsibilities. Positions classified as ST
are reserved for bench research scientists and engineers; these
positions require a very high level of technical expertise and they
have little or no supervisory responsibility.
MRMC currently has many positions, typically division/directorate
chiefs, that have characteristics of both SES and ST classifications.
Most division/directorate chiefs in MRMC are responsible for
supervising other GS-15 positions, including branch chiefs, non-
supervisory researcher scientists and engineers, and possibly ST
positions. Most division/directorate chief positions are classified at
the GS-15 level, although their technical expertise warrants
classification beyond GS-15. Because of their management
responsibilities, these individuals are excluded from the ST system.
Because of management considerations, they cannot be placed in the SES.
Management considers the primary requirement for division/directorate
chiefs to be knowledge of, and expertise in, the specific scientific
and technology areas related to the mission of their divisions/
directorates. Historically, incumbents of these positions have been
recognized within the community as scientific and engineering leaders,
who possess primarily scientific/engineering credentials and are
considered experts in their field. However, they must also possess
strong managerial and supervisory abilities. Therefore, although some
of these employees have scientific credentials that might compare
favorably with ST criteria, classification of these positions as STs is
not an option, because the managerial and supervisory responsibilities
inherent in the positions cannot be ignored.
The purpose of Pay Band V (which will reinforce the equal pay for
equal work principle) is to solve a critical classification problem. It
will also contribute to an SES ``corporate culture'' by excluding from
the SES positions for which technical expertise is paramount. Pay Band
V proposes to overcome the difficulties identified above by creating a
new category of positions, the Senior Scientific Technical Manager,
which has both scientific/technical expertise and full managerial and
supervisory authority.
Current GS-15 division/directorate chiefs will convert into the
demonstration project at Pay Band IV. After conversion, they will be
reviewed against established criteria to determine if they should be
reclassified to Pay Band V. Other positions possibly meeting criteria
for classification to Pay Band V will be reviewed on a case-by-case
basis. The proposed salary range is a minimum of 120% of the minimum
rate of basic pay for GS-15 with a maximum rate of basic pay
established at the rate of basic pay (excluding locality pay) for SES
level 4 (ES-4). Vacant positions in Pay Band V will be competitively
filled to ensure that selectees are preeminent researchers and
technical leaders in the specialty fields who also possess substantial
managerial and supervisory abilities. MRMC will capitalize on the
efficiencies that can accrue from central recruiting by continuing to
use the expertise of the Army Materiel Command SES Office as the
recruitment agent. Panels will be created to assist in filling Pay Band
V positions. Panel members will be selected from a pool of current MRMC
senior military and SES members, ST employees, and later those in Pay
Band V, and an equal number of individuals of equivalent stature from
outside the activity to ensure impartiality, diversity, breadth of
technical expertise, and a rigorous and demanding review. The panel
will apply criteria developed largely from the current OPM Research
Grade Evaluation Guide for positions exceeding the GS-15 level.
DoD will test the establishment of Pay Band V for a five-year
period. Positions established in Pay Band V will be subject to
limitations imposed by OPM and DoD. Pay Band V positions will be
established only in an S&T Reinvention Laboratory which employs
scientists, engineers, or both. Incumbents of Pay Band V positions will
work primarily in their professional capacity on basic or applied
research and secondarily perform managerial or supervisory duties. The
number of Pay Band V positions within the DoD will not exceed 40. These
40 positions will be allocated by ASD (FMP), DoD, and administered by
the respective Services. The number of Pay Band V positions will be
reviewed periodically to determine appropriate position requirements.
Pay Band V position allocations will be managed separately from SES,
ST, and SL positions. An evaluation of the Pay Band V concept will be
performed during the fifth year of the demonstration project.
The final component of Pay Band V is the management of all Pay Band
V assets. Specifically, this authority will be exercised at the DA
level, and includes the following: authority to classify, create, or
abolish positions within limitations imposed by OPM and DoD; recruit
and reassign employees in this pay band; set pay and to have their
performance appraised under this project's Pay for Performance System.
The laboratory wants to demonstrate increased effectiveness by gaining
greater managerial control and authority, consistent with merit,
affirmative action, and equal employment opportunity principles.
High-grade controls within the agency currently restrict movement
into high grade positions (GS-14/15). OPM's definition of ``high grade
position'' is a position where the base pay exceeds
[[Page 10446]]
that of a GS-13, Step 10. Unless the high-grade controls are lifted,
demonstration employees will not be able to advance into the currently
defined pay level of a high-grade, unless a high-grade authorization is
available. To accommodate this, employees whose salary adjustment would
place them above the high-grade pay limit in activities where high-
grade authorizations are unavailable will receive permanent adjustments
to basic salary up to an amount equivalent to one dollar less than the
base of the defined high-grade pay structure. Any additional amount
granted under pay-for-performance will be paid as a one-time bonus
payment from pay-pool funds. This pattern of payout will continue until
high-grade authorizations become available.
The proposed pay bands for the occupational families and how they
relate to the current GS grades are shown in Figure 1. Application of
the Fair Labor Standards Act (FLSA) within each pay band is also shown
in Figure 1. This pay band concept has the following advantages:
1. It reduces the number of classification decisions required
during an employee's career.
2. It simplifies the classification decision-making process and
paperwork. A pay band covers a larger scope of work than a grade, and
thus will be defined in shorter and simpler language.
3. It supports delegation of classification authority to line
managers.
4. It provides a broader range of performance-related pay for each
level. In many cases, employees whose pay would have been frozen at the
top step of a grade will now have more potential for upward movement in
the broader pay band.
5. It prevents the progression of low performers through a pay band
by mere longevity, since job performance serves as the basis for
determining pay.
Figure 1.--Occupational Families and Pay Bands
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Corresponding GS grades
-----------------------------------------------------------------------------------------------------------------------------------------------
Occupational Families Above
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(15)BANDS
-----------------------------------------------------------------------------------------------------------------------------------------------
Engineers & Scientists (DB).....................
(3)I
(7)II
(1)III IV V
(3)(N)
(7)(*)
(1)(E) (E) (E)
-----------------------------------------------------------------------------------------------------------------------------------------------
E&S Technicians (DE)............................
(3)(I)
(3)II
(2)III
(1)IV
(3)(N)
(3)(*)
(2)(*)
(1)(E)
-----------------------------------------------------------------------------------------------------------------------------------------------
Administrative (DJ).............................
(3)I
(5)II
(1)III
(1)IV V
(3)(N)
(5)(*)
(1)(E)
(1)(E) (E)
-----------------------------------------------------------------------------------------------------------------------------------------------
General Support (DK)............................
(3)I
(3)II
(1)III
(3)(N)
(3)(*)
(1)(*)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
FLSA CODES: N--Nonexempt E--Exempt *--Nonexempt or Exempt
Note: Although typical exemption status under the various pay bands is shown in the above table, actual FLSA exemption determinations are made on a case-by-case basis.
Fair Labor Standards Act
The FLSA exemption and nonexemption determinations will be made
consistent with criteria found in 5 CFR Part 551. Supervisors with
classification authority will make the determinations on a case-by-case
basis with reference to documentation in the operating procedures
manual and the advice and assistance of the Civilian Personnel Offices
(CPO)/Civilian Personnel Advisory Centers (CPAC)/Civilian Personnel
Operations Centers (CPOC). The generic position descriptions will not
be the sole basis for the determination. The basis for exemption/non-
exemption will be documented and attached to each description.
Exemption criteria will be narrowly construed and applied only to those
employees who clearly meet the spirit of the exemption. The basis for
determinations will be reviewed as a part of the performance review
process and when salary adjustments are warranted. Changes will be
documented and provided to the CPO/CPAC/CPOC, as appropriate.
Simplified Assignment Process
Today's environment of rightsizing and workforce transition
mandates that the MRMC have maximum flexibility to assign duties and
responsibilities to individuals. Broadbanding can be used to address
this need. As a result of the assignment to a particular level
descriptor, the organization will have maximum flexibility to assign an
employee with no change in basic pay, within broad descriptions
consistent with the needs of the organization, and the individual's
qualifications and rank or level. Subsequent assignments to projects,
tasks, or functions anywhere within the organization requiring the same
level and area of expertise, and qualifications would not constitute an
assignment outside the scope or coverage of the current level
descriptor, or benchmark position description.
Such assignments within the coverage of the generic descriptors are
accomplished without the need to process a personnel action. 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 a broader latitude in assignments and further streamlines the
administrative process and system.
Promotions
A promotion is the movement of an employee to a higher pay band
within the same occupational family or to a pay band in a different
occupational family which results in an increase in the employee's
salary. Progression within a pay band is based upon performance pay
increases; as such, these actions are not considered promotions and are
not subject to the provisions of this section.
Promotions will be processed under competitive procedures in
accordance with merit principles and requirements. The following
actions are excepted from competitive procedures:
(a) Re-promotion to a position which is in the same pay band and
occupational family as the employee previously held on a permanent
basis within the competitive service.
(b) Promotion, reassignment, demotion, transfer or reinstatement to
a position having promotion potential no greater than the potential of
a position an employee currently holds or previously held on a
permanent basis in the competitive service.
(c) A position change permitted by reduction-in-force procedures.
[[Page 10447]]
(d) Promotion without current competition when the employee was
appointed through competitive procedures to a position with a
documented career ladder.
(e) A temporary promotion, or detail to a position in a higher pay
band, of 180 days or less.
(f) Impact of person on the job, accretion of duties, and Factor IV
process (application of the Research Grade Evaluation Guide, Equipment
Development Grade Evaluation Guide or similar guides) promotions.
(g) A promotion resulting from the correction of an initial
classification error or the issuance of a new classification standard.
Link Between Promotion and Performance
To be promoted competitively or noncompetitively from one band to
the next, an employee must meet the minimum qualifications for the job
and have a current performance rating of ``B'' or better (see
Performance Evaluation) or equivalent under a different performance
management system.
B. Classification
Introduction
The objectives of the new classification system are to simplify the
classification process, make the process more serviceable and
understandable, and place more decision-making authority and
accountability with line managers. All positions listed in Appendix A
will be in the classification structure. Provisions will be made for
including other occupations as employment requirements change in
response to changing missions and technical programs.
Occupational Series
The present GS classification system has over 400 occupations (also
called series), which are divided into 22 groups. The occupational
series will be maintained. New series, established by OPM, may be added
as needed to reflect new occupations in the workforce. Appendix A lists
the occupational series currently represented at the MRMC by
occupational family.
Classification Standards
MRMC will use a classification system that is a modification of the
system now in use at the US Navy, Naval Command, Control and Ocean
Surveillance Center, San Diego, California. The present classification
standards will be used to create local benchmark position descriptions
for each pay band, reflecting duties and responsibilities comparable to
those described in present classification standards for the span of
grades represented by each pay band. There will be at least one
benchmark position description for each pay band. A supervisory
benchmark position description will be added to those pay bands that
include supervisory employees. Present titles and series will continue
to be used in order to recognize the types of work being performed and
educational backgrounds and requirements of incumbents. Locally
developed speciality codes and OPM functional codes will be used to
facilitate titling, making qualification determinations, and assigning
competitive levels to determine retention status.
Position Descriptions and Classification Process
The MRMC Commander will have delegated classification authority and
will redelegate this authority to subordinate activity Commanders/
Directors for redelegation to activity managers as appropriate. New
position descriptions will be developed to assist managers in
exercising delegated position classification authority. Managers will
identify the occupational family, job series, the functional code, the
speciality code, pay band level, and the appropriate acquisition codes.
The manager will document these decisions on a cover sheet similar to
the present DA Form 374. Speciality codes will be developed by Subject
Matter Experts (SMEs) to identify the special nature of work performed.
Functional codes are those currently found in the OPM Introduction to
the Classification Standards which defines certain kinds of activities,
e.g., Research, Development, Test and Evaluation, etc., and covers
Engineers & Scientists (E&S).
Classification Appeals
An employee may appeal the occupational series or pay band level of
his or her 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 then appeal to the Office of Personnel Management, only after DoD
has rendered a decision under the provisions of this 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 requesting a classification decision that
would exceed the equivalent of a GS-15 level may not submit the appeal
to OPM.
An employee may not appeal the assignment of the occupational
series to an occupational family; the accuracy of the occupational
family; the title of a position; the accuracy of the position
description; 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 are based upon the demonstration project classification
criteria. Case files will be forwarded for adjudication through the
CPO/CPAC/CPOC providing personnel services and will include copies of
appropriate demonstration project criteria.
C. Pay-for-Performance Management System
Performance Evaluation
Introduction
The performance appraisal system will link compensation to
performance through annual performance evaluations and performance
ratings. The performance appraisal system will allow optional use of
peer evaluation input and/or input from subordinates whenever
appropriate. The system will have the flexibility to be modified, if
necessary, as more experience is gained under the project. Details of
the system may be found in the implementing instructions.
Performance Objectives
Performance objectives are statements of job responsibilities based
on the work unit's mission, goals, and supplemental benchmark position
descriptions. Employees and supervisors will jointly develop
performance objectives which will reflect the types of duties and
responsibilities expected at the respective pay level. Absent agreement
between employees and supervisors, final authority to establish
performance objectives and element weights rests with line management.
The performance objectives, representing joint efforts of employees and
their rating chains, should be in place within 30 days from the
beginning of each rating period.
Performance Elements
New performance elements and rating forms will be designed to
implement a new scoring and rating system. The new
[[Page 10448]]
performance evaluation system will be based on critical performance
elements defined in Appendix C. All elements in the new performance
evaluation system are critical. Non-critical elements will not be used.
Each performance element is assigned a weight between a specified
range. The total weight of all elements in a performance plan is 100
points. The supervisor assigns each element some portion of the 100
points in accordance with its importance for mission attainment. These
weights will be developed along with employee performance objectives.
Mid-Year Review
A mid-year review between a supervisor and employee will be held to
determine whether objectives are being met and whether performance
objectives should be modified to reflect changes in planning, workload,
and resource allocation. Additional reviews may be held as deemed
necessary by the supervisor. The weights assigned to performance
elements will be changed, if necessary.
Performance Appraisal
A performance appraisal is scheduled for the final weeks of the
annual performance cycle, although an individual performance appraisal
may be conducted at any time after 60 days on approved standards. The
performance appraisal process brings supervisors and employees together
for formal discussions on performance and results in (1) written
appraisals, (2) performance ratings, (3) performance pay increases and/
or bonuses, (4) cash awards, and (5) other individual performance-
related actions, as appropriate. A performance appraisal may consist of
two meetings held between employee and supervisor: the performance
review meeting and the evaluation feedback meeting.
Performance Review Meeting Between Employee and Supervisor
The review meeting is to discuss job performance and
accomplishments. Supervisors do not assign scores, ratings, pay
increases, or awards at this meeting. The supervisor notifies the
employee of the review meeting in time to allow the employee to prepare
a list of accomplishments. Employees will be given an opportunity at
the meeting to give a personal performance assessment and describe
accomplishments. The supervisor and employee discuss job performance
and accomplishments in relation to the performance elements,
objectives, and planned activities established in the performance plan.
Evaluation Feedback Meeting Between Employee and Supervisor
In this second meeting between employee and supervisor, the
supervisor informs the employee of management's appraisal of the
employee's performance, the employee's performance score and rating,
and any recommended related pay increase, bonus, award, or other
personnel action. During this second meeting, the supervisor and
employee will discuss and document performance objectives for the next
rating period.
Performance Scores
Selection of the weighted points to assign to an employee's
performance is assisted by use of benchmark performance standards
(appendix D). Each benchmark performance standard describes the level
of performance associated with a particular point on a rating scale.
Supervisors may add supplemental standards to the performance plans of
the employees they supervise to further elaborate the benchmark
performance standards.
The overall score is the sum of the individual element scores.
Employees will receive an academic-type rating of ``A'', ``B'', ``C'',
or ``F'' depending upon the percentage of goal attainment. These
summary ratings are representative of Pattern E in Summary Level Chart
in 5 CFR 430.208(d)(1). This rating will become the rating of record,
and
(1) Employees rated ``B'' or higher will be eligible to receive
performance-based pay increases and/or bonuses; and
(2) Retention years credit for RIF will be received by employees
rated ``C'' or higher. (Note: except when a PIP does not result in an
annual rating of ``C'' prior to the end of the rating cycle).
(3) Employees rated ``F'' will not receive the general increase,
retention years credit for RIF, or be eligible to receive performance
based pay increases and/or bonuses.
A rating of ``A'' will be assigned for cumulative scores of 85 to
100 points, ``B'' for cumulative scores of 70 through 84, and ``C'' for
cumulative scores of 50 through 69. An overall rating of ``F''
indicates failure to perform at the 50 percent level for any one of the
assigned weighted elements. (In such a case, even though the cumulative
score may exceed 49, the employee will nonetheless receive an overall
rating of ``F''. NOTE: An ``F'' constitutes an unacceptable rating).
The academic-type ratings will be used to determine pay or bonus values
and to award additional RIF retention years as follows:
------------------------------------------------------------------------
RIF
Compensation Retention General
Rating (shares) years increase \2\
added
------------------------------------------------------------------------
``A''......................... 2 10 YES
``B''......................... 1 7 YES
``C''......................... 0 3 YES
``F''......................... 0 0 NO
------------------------------------------------------------------------
\1\ Employees rated ``B'' or higher will be eligible to receive
performance-based pay increases and/or bonuses. Retention years credit
for RIF will be received by employees rated ``C'' or higher, except
when a PIP does not result in an annual rating of ``C'' prior to the
end of the rating cycle.
\2\ The maximum pay rate for pay band V cannot exceed rate for ES-4.
Therefore, employees at or near the top pay band V may not receive the
full general increase if it is not authorized for SES employees.
Performance Based Actions
MRMC will implement a two step process to deal with poor
performers. This process may lead to involuntary separations if the
employee receives a score of less than 50 percent of the points for any
weighted element.
The process will begin with the recognition that an employee's
performance is unacceptable (any element that would be rated at less
than the 50 percent level of its assigned benchmark weight). The two
steps are as follows: (1) Performance improvement plan (PIP), and (2)
separation.
When the employee is determined to be performing below the 50%
level for any element, the supervisor and employee will develop a
structured PIP that will be monitored for a reasonable period of time.
If the employee fails to improve during this structured plan, the
employee will be given notice of proposed appropriate action. The
activity may consider a change in assignment or reduction in pay as
[[Page 10449]]
opposed to removal if the mission, organizational structure and
available resources warrant such action. If employees are separated,
they will have due process recourse as a former employee.
(Note: Performance based adverse actions may be taken under 5
U.S.C., Chapter 75 or Chapter 43).
Actions taken under Chapter 75 do not require a PIP.
If a PIP ends prior to the end of the annual performance cycle and
the employee's performance improves to the 50% or above level in all
assigned elements, the employee is appraised again at the end of the
annual performance cycle.
If, in conjunction with the completion of the PIP, the employee
attains an annual rating of ``C'' or higher, they will receive the
annual general increase and RIF retention years credit will be earned.
In addition, employees attaining an annual rating of ``B'' or higher
will also be eligible for an increase to base pay and/or bonus.
If a PIP ends after the end of the annual performance cycle and the
employee's performance has improved to the 50% or above level in all
assigned elements, employment continues but no retroactive annual
general increase, performance bonus, or RIF retention years credit is
granted for that performance cycle period.
Employee Relations
Employees covered by the project will be evaluated under a
performance evaluation system that affords grievance rights comparable
to those provided currently. The MRMC will maintain the substantive and
procedural appeal rights currently afforded when taking action for
misconduct and poor performance.
Awards
The MRMC currently has an extensive awards program consisting of
both internal and external awards. While not linked to the pay-for-
performance system, awards will continue to be given for special acts
and other categories as they occur. Awards may include, but are not
limited to, special acts, patents, suggestions, on-the-spot, and time-
off, and may be modified or expanded as appropriate. Major Army Command
(MACOM) and DoD awards and other honorary noncash awards will be
retained.
In an effort to foster and encourage team work among its employees,
a Commander/Director may allocate a sum of money to a team for
outstanding completion of a special task or significant achievement,
and the team may decide the individual distribution of the total
dollars among themselves.
Pay Administration
Introduction
The objective is to establish a pay system that will improve the
ability of the MRMC to attract and retain quality employees. The new
system will be a pay-for-performance system and, when implemented, will
result in a redistribution of pay resources based upon individual
performance.
Pay-for-Performance
MRMC will use a simplified performance appraisal system that will
permit both the supervisor and the employee to focus on quality of the
work. The proposed system will permit the manager/supervisor to base
compensation on performance or value added to the goal of the
organization rather than on longevity and risk aversion. This system
will allow managers to withhold pay increases from nonperformers,
thereby giving the nonperformer the incentive to improve performance or
leave government service.
Pay-for-performance has two components: Performance pay increases
(i.e. base pay increases) and/or bonuses. All covered employees will be
given the full amount of locality pay adjustments (as applicable) when
they occur, regardless of performance. The funding for performance pay
increases and/or bonuses is composed of money previously available for
within-grade increases, quality step increases, and promotions from one
grade to another when the grades are now in the same pay band.
Performance Pay Pool
The funding in the performance pay pool will be used for base pay
increases and/or performance bonus pay. The payouts made to employees
from the performance pay pool may be a mix of base pay increases,
subject to the pay ceiling in the pay bands, and bonus payments.
The Headquarters, MRMC Comptroller, in conjunction with each
subordinate activity Commander/Director, will calculate the total
performance pay pool and allocate pay pools to subordinate activities.
Each subordinate activity Commander/Director will allocate pay pools to
organizational units or teams as appropriate.
Performance Pay Increases and/or Performance Bonuses
A pay pool manager is accountable for staying within pay pool
limits. The pay pool manager assigns pay increases and/or bonuses to
individuals on the basis of an academic-type rating, the value of the
performance pay pool resources available, and the individual's current
basic rate of pay within a given pay band. A pay pool manager may
request approval from the Commander/Director or his/her designee to
grant a higher performance pay increase/performance bonus than is
generated by the compensation formula to recognize an employee's
extraordinary achievement or to provide accelerated compensation for
local interns.
A performance payout will be initially calculated for each
individual based upon a pay pool assignment that will be composed of
monies outlined previously. For illustration purposes, approximately
2.4 percent of the value of the combined basic rates of pay of the
assigned employees will be used. A share will be calculated so that a
pay pool manager will not exceed the resources that are available in
the pay pool. The performance payout for an individual will be
determined as follows:
[GRAPHIC] [TIFF OMITTED] TN03MR98.000
Where:
Pool Value = 0.024 * SUM (SALk); K = 1 to n
n = number of employees in pay pool
N = Number of Shares (0-2) earned by an employee based on their
performance rating
SAL = An individual's basic rate of pay
SUM = The summation of the entities in parenthesis over the range
indicated
i = individual
To illustrate the formula, the basic rates of pay of the 10
employees in a pay pool, who each earn $50,000 per year, total to
$500,000. The employees earned a total of 15 shares based on their
[[Page 10450]]
ratings (5 individuals earned an ``A'' rating, and 5 individuals earned
a ``B'' rating). The pay pool value is then 2.4 percent of the sum of
$500,000, or $12,000. The individual performance payout being
determined is for an individual who earns $50,000 per year and receives
an ``A'' on the appraisal, thus earning 2 shares. Using the formula,
the individual performance payout is calculated by multiplying the pay
pool value, $12,000, by the individual basic rate of pay, $50,000, by
the number of shares earned, 2. This product is divided by the sum of
the products of the individual basic rates of pay times the number of
shares earned, or 750,000. The resulting individual performance payout
is $1,600.00 for the year.
An annual performance base pay increase could be all, none, or part
of the compensation formula depending on the current basic rate of pay
of the employee. Annual performance base pay increases will be limited
to the difference between the particular band pay cap and the
employee's current basic rate of pay, or total dollar value of shares,
whichever is less, with the balance converted to a performance bonus.
This means that employees whose basic rates of pay have reached the
upper limits of a particular pay band will receive most performance
compensation as a performance bonus. Cash bonuses will not become a
part of the employee's basic rate of pay. Employees receiving retained
rates are subject to special rules governing basic pay adjustments. An
employee receiving a retained rate whose performance rating is ``F'' at
the time of a general pay increase will receive no increase in the
retained rate. All other employees receiving a retained rate will
receive a general pay increase equal to 50 percent of the amount of the
increase in the maximum rate of basic pay payable for the pay band of
the employee's position.
Supervisory Bonus
Supervisory bonuses of up to 10% of the basic rate of pay may be
paid at the discretion of Commanders/Directors to supervisors with
employees in the same pay band. In exceptional cases (approved by HQ,
MRMC), supervisors who do not have employees in the same pay band may
be compensated up to 5% of basic rate of pay. Employees who qualify for
the bonus include supervisors in all occupational families with formal
supervisory authority meeting that required for coverage under the OPM
GS Supervisory Guide. The supervisory bonus is to recognize supervisory
responsibilities required of supervisors most often receiving the same
pay as non-supervisory subordinates. There are two situations in which
a supervisory bonus may be warranted:
(1) Supervisors may be granted up to 10 percent of the basic rate
of pay if they supervise employees within the same pay band or,
2) Up to 5 percent of the basic rate of pay for those supervising
employees in lower or other pay bands.
Note: Pay band V employees in the E&S occupational family are
excluded.
Bonuses, which must be negotiated annually, will not be treated as
basic pay and are not a part of the performance pay pool.
Because the bonus is paid at the beginning of the appraisal period,
if the individual leaves a supervisory position or is removed from
supervisory responsibilities (unless effected through RIF action), the
prorated portion of the bonus for the non-supervisory portion of the
performance year will be recovered as a debt due the Government. Before
any supervisory bonus is paid, the supervisor will sign an agreement to
make any required repayment.
Pay and Compensation Ceilings
An employee's total monetary compensation paid in a calendar year
may not exceed the basic rate of pay paid in level I of the Executive
Schedule consistent with 5 U.S.C. 5307 and 5 CFR Part 530, Subpart B.
In addition, each pay band will have its own pay ceiling, just as
grades do in the current system. Pay rates for the various pay bands
will be directly keyed to the GS rates, except the maximum rate for pay
band V of the engineer and scientist occupational family which cannot
exceed ES-4. Basic pay will be limited to the maximum rates payable for
each pay band, except for retained rates as previously described.
Pay Setting for Promotion
The minimum basic pay increase upon promotion to a higher pay band
will be 6 percent or the minimum rate of the new pay band. The maximum
amount of pay increase upon promotion will not exceed $10,000.
When a temporary promotion is terminated, the employee's pay
entitlements will be redetermined based on the employee's position of
record, with appropriate adjustments to reflect pay events during the
temporary promotion, subject to the specific policies and rules
established by MRMC. In no case may those adjustments increase the pay
for the position of record beyond the applicable pay range maximum
rate.
Placement in a Lower Pay Band
Employees who receive 50 percent or less of an assigned benchmark
score in any element or who are on a performance improvement plan at
the time pay determinations are made, do not receive performance
payouts or the general increase. This action may result in a base
salary that is identified in a lower pay band. This occurs because the
minimum rates of basic pay in a pay band increase as the result of the
general increase (5 U.S.C. 5303). This situation, (a reduction in band
level with no reduction in pay) will not be considered an adverse
action, nor will band retention provisions apply.
D. Hiring and Appointment Authorities
Hiring Authority
A candidate's basic eligibility will be determined using OPM's
Qualification Standards Handbook of General Schedule Positions.
Candidates must meet the minimum standards for entry into the payband.
For example if the payband includes positions in grades GS-5 and GS-7,
the candidates must meet the qualifications for positions at GS-5
level. Specific experience/education required will be determined based
on whether a position to be filled is at the lower or higher end of the
band. As a general rule, pay will be set at the lowest level in a pay
band. Appointments made above the minimum level will be based upon
superior qualifications of the candidate. A candidate appointed toward
the higher end of a pay band should have qualifications approaching the
lowest General Schedule grade incorporated into the next higher pay
band. For example, a person appointed at the higher end of Pay Band II
in the Engineers and Scientists Occupational Family would have
education, experience, or a combination of the two approaching the
qualifications of the GS-13 level, which is the lowest General Schedule
grade incorporated into Pay Band III. Under the demonstration
authority, the MRMC is authorized to modify by increasing QSH
qualifications and/or experience or substitutable education
requirements. Substitutable education can be modified; however, no
changes can be made to standards with positive education requirements
or minimum education requirements. In some cases, MRMC will update
these standards to reflect current practices in the occupational
families and modern curricula in recognized degree programs. Selective
placement factors may be established when judged to be critical to
successful job performance.
[[Page 10451]]
These factors must be communicated to all candidates for specific
vacancies and must be met for basic eligibility.
In the proposed system, as with the current system, the individual
manager will decide whether to fill a position from among internal
candidates or to recruit from outside.
The MRMC is committed to positive affirmative action and equal
employment opportunity goals. Line managers will be accountable for
understanding and implementing policies designed to meet these goals.
Appointment Authority
Under the demonstration project, there will continue to be career
and career conditional appointments. These appointments will use
existing authorities and entitlements. Non-permanent positions
(exceeding one year) needed to meet fluctuating or uncertain workload
requirements will be filled using a Contingent Employee appointment
authority.
Employees hired for more than one year, under the contingent
employee appointment authority are given term appointments in the
competitive service for no longer than five years. The MRMC Commander
is authorized to extend a contingent appointment one additional year.
These employees are entitled to the same rights and benefits as term
employees and will serve a one year trial period. The Pay-for
Performance Management System outlined in this Plan applies to
contingent employees.
Appointment will be made under the same appointment authorities and
processes as regular term appointments, but recruitment bulletins must
indicate that there is a potential for conversion to permanent
employment.
Employees hired under the contingent employee authority 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
position(s) may be eligible for conversion to career-conditional
appointment at a later date; (2) served two years of substantially
continuous service in the term position; (3) be selected under merit
promotion procedures for the permanent position; and (4) have a current
rating of ``B'' or better.
Employees serving under regular term appointments at the time of
conversion to the demonstration project will be converted to the new
contingent employee appointments provided they were hired for their
current positions under competitive procedures. These employees will be
eligible for conversion to career-conditional appointment if they have
a current rating of ``B'' or better (or the equivalent of ``B'' in
their current evaluation system), and are selected under merit
promotion procedures for their permanent position after having
completed two years of continuous service. Time served in term
positions prior to conversion to the contingent employee appointment is
creditable, provided the service was continuous.
Extended Probationary Period
The current one-year probationary period will be extended to ``up
to three years'' for all newly hired employees in all pay bands. The
purpose of extending the probationary period is to allow supervisors an
adequate period of time to fully evaluate an employee's ability to
complete a research cycle and/or to fully evaluate an employee's
contribution and conduct. The length of the probationary period for the
Engineers and Scientists Occupational Family will be three years. The
probationary period for all other occupational families will be two
years.
Aside from extending the time period, all other features of the
current probationary period are retained including the potential to
remove an employee without providing the full substantive and
procedural rights afforded a non-probationary employee. Any employee
subject to serving a probationary period that was appointed prior to
the implementation date will not be affected. The ``up to three year''
probation will apply to new hires or those who do not have reemployment
rights or reinstatement privileges.
Probationary employees will be terminated when the employee fails
to demonstrate proper conduct, technical competency, and/or adequate
contribution for continued employment. When the MRMC decides to
terminate an employee serving a probationary period because his/her
work performance or conduct during this period fails to demonstrate
his/her fitness or qualifications for continued employment, it shall
terminate his/her 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 manager's conclusions as to the inadequacies of his/her
performance or conduct.
Supervisory Probationary Periods
Supervisory probationary periods will be made consistent with 5 CFR
315.901. Employees that have successfully completed the initial
probationary period will be required to complete an additional one-year
probationary period for the initial appointment to a supervisory
position. If, during the probationary period, the decision is made to
return the employee to a non-supervisory position for reasons solely
related to supervisory performance, the employee will be returned to a
comparable position of no lower pay band and basic pay than the
position from which he/she was promoted.
Voluntary Emeritus Program
Under the demonstration project, Commanders/Directors will have the
authority to offer retired or separated individuals voluntary
assignments in their activities. This authority will include
individuals who have retired or separated from Federal service.
Voluntary Emeritus Program assignments are not considered
``employment'' by the Federal Government (except for the purposes of
injury compensation). Thus, such assignments do not affect an
employee's entitlement to buy-outs or severance payments based on an
earlier separation from Federal service. The Voluntary Emeritus Program
will ensure continued quality research while reducing the overall
salary line by allowing individuals to accept retirement incentive with
the opportunity to retain a presence within their community. The
program will be of most benefit during manpower reductions as
individuals could accept retirement and return to provide valuable on-
the-job training or mentoring to less experienced individuals.
To be accepted into the emeritus program, a volunteer must be
approved by the subordinate activity Commander/Director. Everyone who
applies is not entitled to a voluntary assignment. The laboratory
Commander/Director must clearly document the decision process for each
applicant (whether accepted or rejected) and retain the documentation
throughout the assignment. Documentation of rejections will be
maintained for two years.
To ensure success and encourage participation, the individual's
Federal retirement pay (whether military or civilian) will not be
affected while serving in a voluntary capacity. Retired or separated
Federal individuals may accept an emeritus position without a break or
mandatory waiting period.
Volunteers will not be permitted to monitor contracts on behalf of
the government or to participate on any contracts where a conflict of
interest exists. The same rules that currently
[[Page 10452]]
apply to source selection members will apply to volunteers.
An agreement will be established between the volunteer, the
subordinate activity Commander/Director, and the servicing CPO/CPAC/
CPOC. The agreement will be reviewed by the Headquarters, MRMC legal
office for ethics determinations under the Joint Ethics Regulations.
The agreement must be finalized before the assumption of duties and
shall include:
(a) a statement that the voluntary assignment does not constitute
an appointment in the civil service and is without compensation, and
any and all claims against the Government because of the voluntary
assignment are waived by the volunteer;
(b) a statement that the volunteer will be considered a Federal
employee for the purpose of injury compensation;
(c) volunteer's work schedule;
(d) length of agreement (defined by length of project or time
defined by weeks, months, or years);
(e) support provided by the subordinate activity (travel,
administrative, office space, supplies);
(f) a one-page or less Statement of Duties and Experience;
(g) a provision that states no additional time will be added to a
volunteer's service credit for such purposes as retirement, severance
pay and leave as a result of being a member of the Voluntary Emeritus
Program;
(h) a provision allowing either party to void the agreement with 10
working days written notice; and
(i) the level of security access required (any security clearance
required by the position will be managed by the subordinate activity
while the volunteer is a member of the Voluntary Emeritus Program).
E. Expanded Developmental Opportunities Program
The MRMC Expanded Developmental Opportunities Program will cover
all demonstration project employees. An expanded developmental
opportunity complements existing developmental opportunities such as
(1) long-term training, (2) one-year work experiences in an industrial
setting via the Relations With Industry Program, (3) one-year work
experiences in laboratories of allied nations via the Science and
Engineer Exchange Program, (4) rotational job assignments within the
MRMC, (5) developmental assignments in higher headquarters within the
Army and DoD, (6) self-directed study via correspondence courses and
local colleges and universities, (7) details within MRMC and to other
Federal Agencies, and (8) Intergovernmental Personnel Act Agreements.
Each developmental opportunity period should benefit the MRMC, as
well as increase the employee's individual effectiveness. Various
learning or uncompensated developmental work experiences may be
considered, such as advanced academic teaching or research,
sabbaticals, or on-the-job work experience with public or non-profit
organizations.
An expanded developmental opportunity period will not result in
loss of (or reduction in) basic pay, leave to which the employee is
otherwise entitled, or credit for time or service. Input for
performance rating purposes will be obtained from the gaining
organization to ensure a rating of record is on file and, if warranted,
a performance award and/or bonus and retention years credit for RIF
purposes is documented.
The opportunity to participate in the Expanded Developmental
Opportunities Program will be announced as opportunities arise.
Instructions for application and the selection criteria will be
included in the announcement. Final selection/approval for
participation in the program will be made by activity Commanders/
Directors. The position of employees on an expanded developmental
opportunity may be backfilled by temporary promotion, or temporary/
contingent employees. However, that position or its equivalent must be
made available to the employee returning from the expanded
developmental opportunity.
An employee accepting an Expanded Developmental Opportunity must
sign a continuing service agreement. If the employee voluntarily leaves
the MRMC before the service obligation is completed, the employee is
liable for repayment. However, the MRMC Director has the authority to
waive this agreement.
F. Revised Reduction-in-Force (RIF) Procedures
Introduction
When an employee in the MRMC demonstration project is faced with
separation or downgrading due to lack of work, shortage of funds,
reorganization, insufficient personnel ceiling, the exercise of
reemployment or restoration rights, or furlough for more than 30
calendar days or more than 22 discontinuous days, RIF procedures will
be used.
The procedures in 5 CFR Part 351 will be followed with the
modifications specified below pertaining to competitive areas,
assignment rights, credit for performance ratings and service
computation date.
Competitive Areas
The Headquarters and each subordinate activity of the MRMC will be
in a separate competitive area for RIF purposes. Further, within each
subordinate activity, detachments located at different geographic sites
will be in a separate competitive area for RIF purposes. Each of the
four occupational families will be a separate competitive area within
each activity. (Competitive service and excepted service employees will
compete separately within a competitive area.) DA Interns will continue
to be part of the ACTEDS competitive area.
Retention
Within each competitive area, competitive levels will be
established consisting of all positions in the same occupational family
and pay band which are similar enough in duties, qualifications, and
working conditions that the incumbent of one position can perform
successfully the duties of any other position in the competitive level
without unduly interrupting the work program.
Current RIF regulations will be modified to restrict bumping and
retreating to positions within the employee's current occupational
family. This feature will minimize the disruption associated with the
RIF process. An employee may displace another employee within the same
occupational family by bump or retreat to one band below the employee's
existing band. A preference eligible veteran with a compensable
service-connected disability of 30% or more may retreat to positions
two bands (or the equivalent of five (5) grades) below his/her current
band.
Reductions-in-force are accomplished using the retention factors of
tenure, veterans preference, credit for performance ratings, and length
of service, in that order.
Contingent employees are in Tenure Group III for reduction-in-force
purposes. Reduction-in-force procedures are not required when
separating these employees when their appointments expire.
Link Between Performance and Retention
Credit for performance based on the last three (3) ratings of
record during the preceding four (4) years will be applied as follows:
a rating of ``A'' equals 10 years; a rating of ``B'' equals 7 years; a
[[Page 10453]]
rating of ``C'' equals 3 years, and a rating of ``F'' adds no credit
for retention. Credit for performance is cumulative, not averaged.
Ratings given under non-demonstration systems will be converted to the
demonstration rating scheme and provided the equivalent performance
rating credit.
In some cases, an employee may not have three (3) annual
performance ratings of record. In these situations, performance credit
will be given on the basis of either an average of the ratings actually
on record or if no actual ratings, modal rating (most common) given
within the employee's competitive area. When an employee is missing a
rating of record, the credit assigned for the actual ratings received
will be averaged, and the result thus derived will be used as the
credit for the missing rating. For an employee who has no ratings of
record, all credit will be based on the repeated use of a single modal
rating from the most recently completed appraisal period on record.
An employee who has received a written decision to demote him/her
to a lower pay band because of unacceptable performance, competes in
RIF from the position to which he/she will be/has been demoted.
Employees who have been demoted for unacceptable performance, and as of
the date of the issuance of the RIF notice have not received a
performance rating in the position to which demoted, will receive
either an average of the ratings actually on record or if no actual
ratings, modal rating (most common) given within the employee's
competitive area.
An employee with a current annual performance rating of ``F'' has
assignment rights only to a position held by another employee who has
an ``F'' rating. An employee who has been given a written decision of
removal because of unacceptable performance or conduct will be placed
at the bottom of the retention register for their competitive level.
Link Between Service Computation Date ( Length of Service) and
Retention
Service computation date (length of service) will be used in RIF
procedures when performance retention procedures result in two or more
employees with the same standing. When this occurs, all creditable
service (both civilian and military) will be used to determine which
employee(s) will be separated.
Notice Period
The RIF notice period will follow OPM guidelines.
Grade and Pay Retention
Except where waived or modified in the waiver section of this plan,
grade and pay retention will follow current law and regulations (e.g.
occupational family pay bands will substitute for grade.)
Use of Voluntary Incentives
Subordinate activity Commanders/Directors currently have delegated
authority to grant payments under the VSIP. This authority will
continue under this project.
IV. Training
Introduction
The key to the success or failure of the proposed demonstration
project will be the training provided for all involved. This training
will not only provide the necessary knowledge and skills to carry out
the proposed changes, but will also lead to commitment to the program
on the part of participants.
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 at a minimum:
(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) familiarization with the new position descriptions
and performance objectives, (5) the performance evaluation management
system, (6) the reconsideration process, and (7) the demonstration
project administrative and formal evaluation process.
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 mangers 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, training in using the classification system, position
description preparation, and performance evaluation. Additional
training may focus on non-project procedural techniques such as
interpersonal and communication skills.
Administrative Staff
The administrative staff, including personnel specialists,
subordinate activity administrative officers, and personnel points of
contact will play a key role in advising, training, and coaching
supervisors and employees in implementing the demonstration project.
This staff will need training in the procedural and technical aspects
of the project.
Employees
The MRMC Demonstration Project Office will make and coordinate all
arrangements necessary to train employees covered under the
demonstration project. In the months leading up to the implementation
date, meetings will be held for employees to fully inform them of all
project decisions, procedures, and processes.
V. Conversion
Conversion to the Demonstration Project
a. Initial entry into the demonstration project will be
accomplished through a full employee protection approach that ensures
each employee an initial place in the appropriate pay band without loss
of pay. Employees serving under regular term appointments at the time
of the implementation of the demonstration project will be converted to
the contingent employee appointments so long as the original term
appointment was made under competitive procedures. An automatic
conversion from current GS/GM grade and pay into a new broadband system
will be accomplished. Each employee's initial total salary under the
demonstration project will equal the total salary received immediately
before conversion. If conversion into the demonstration project is
accomplished by a geographic move, the employee's GS pay entitlements
in the new geographic area must be determined before performing the pay
conversion.
b. Employees who are on temporary promotions at the time of
conversion will be converted to a pay band commensurate with the grade
of the position to which temporarily promoted. At the conclusion of the
temporary promotion, the employee will revert to the pay band which
corresponds to the grade of record. When a temporary promotion is
terminated, the employee's pay entitlements will be determined based on
the employee's position of record, with appropriate adjustments to
reflect pay events during the temporary promotion, subject to the
specific policies and rules established by the MRMC. In no case may
those
[[Page 10454]]
adjustments increase the pay for the position of record beyond the
applicable pay range maximum rate. The only exception will be if the
original competitive promotion announcement stipulated that the
promotion could be made permanent; in these cases, actions to make the
temporary promotion permanent will be considered, and if implemented,
will be subject to all existing priority placement programs.
c. Employees who are covered by special salary rates, prior to the
demonstration project, will no longer be considered a special rate
employee under the demonstration project. These employees will,
therefore, be eligible for full locality pay. The adjusted salaries of
these employees will not change. Rather, the employees will receive a
new basic pay rate computed by dividing their adjusted basic pay
(higher of special rate or locality rate) by the locality pay factor
for their area. A full locality adjustment will then be added to the
new basic pay rate. Adverse action and pay retention provisions will
not apply to the conversion process as there will be no change in total
salary.
d. During the first 12 months following conversion, employees will
receive pay increases for non-competitive promotion equivalents when
the grade level of the promotion is encompassed within the same
broadband, the employee's performance warrants the promotion and
promotions would have otherwise occurred during that period. Employees
who receive an in-level promotion at the time of conversion will not
receive a prorated step increase equivalent as defined below.
e. Under the current pay structure, employees progress through
their assigned grade in step increments. Since this system is being
replaced under the demonstration project, employees will be awarded
that portion of the next higher step based upon the portion of the
waiting period they have completed prior to the date of implementation.
Payment will be lump sum in nature (not added to base pay) and will be
paid at the one-year anniversary of the date of implementation of the
demonstration project. Those employees added to the MRMC by actions
such as transfer of function, BRAC, etc., after initial implementation,
will be awarded that portion of the next higher step based upon the
portion of the waiting period they have completed at the time they
convert into the demonstration project. This lump sum payment will be
made upon conversion but no earlier than one year after the
implementation of the project. Rules governing within-grade increases
under the current Army performance plan will continue in effect until
the implementation date. Employees at step 10, or receiving retained
rates, on the date of implementation will not be eligible for a
prorated lump sum buyout of the WGI since they are already at or above
the top of the step scale.
Conversion or Movement From a Project Position to a General Schedule
Position
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 procedures will be used to convert the employee's project
pay band to a GS-equivalent grade and the employee's project rates of
pay to GS-equivalent rates of pay. The converted GS grade and GS rates
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 reassignments, 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, 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.
Grade-Setting Provisions
An employee in a pay band corresponding to a single GS grade is
converted to that grade. An employee in a pay band corresponding to two
or more grades is converted to one of those grades according to the
following rules:
(a) The employee's adjusted rate of basic pay under the
demonstration project (including any locality payment) is compared with
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.
(b) 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.
(c) 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
step 4 rate of the second highest grade, the employee is converted to
that grade.
(d) 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.
(e) 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.
(f) Exception: An employee will not be converted to a lower grade
than the grade held by the employee immediately preceding a conversion,
lateral reassignment, or lateral transfer into the project, unless
since that time, the employee has undergone a reduction in band.
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 GS rate
of pay in accordance with the following rules:
(a) 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.
(b) An employee's adjusted rate of basic pay under the project
(including any locality payment) is converted to a GS adjusted rate on
the highest applicable GS 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.)
(c) 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
[[Page 10455]]
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.)
(d) 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).
E&S Pay Band V Employees
An employee in Pay Band V of the E&S Occupational Family will
convert out of the demonstration project at the GS-15 level. The MRMC,
in consultation with the CPOs/CPACs/CPOCs, will develop a procedure to
ensure that employees entering Pay Band V understand that if they leave
the demonstration project and their adjusted pay exceeds the GS-15,
step 10 rate, there is no entitlement to retained pay; their GS-
equivalent rate will be deemed to be the rate for GS-15, step 10. For
those Pay Band V employees paid below the adjusted GS-15, step 10 rate,
the converted rates will be set in accordance with Pay-Setting
Provisions above.
Employees With Band or Pay Retention
If an employee is retaining a band level under the demonstration
project, apply the procedures in the Grade-Setting and Pay-Setting
Provisions above, using the grades encompassed in the employee's
retained band to determine the employee's GS-equivalent retained grade
and pay rate. The time in a retained band under the demonstration
project counts toward the 2-year limit on grade retention in 5 U.S.C.
5382.
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 band level. MRMC will coordinate with OPM to
prescribe a procedure for determining the GS-equivalent pay rate for an
employee retaining a rate under the demonstration project.
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.
Performance pay 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).
Personnel Administration
All personnel laws, regulations, and guidelines not waived by this
plan will remain in effect. Basic employee rights will be safeguarded
and merit principles will be maintained. Supporting personnel
specialists in CPOs/CPACs/CPOCs will continue to process personnel-
related actions and provide consultative and other appropriate
services.
Automation
The MRMC will continue to use the Defense Civilian Personnel Data
System (DCPDS) for the processing of personnel-related data. Payroll
servicing will continue from the respective payroll offices.
Local automated systems will be developed to support computation of
performance-related pay increases and awards and other personnel
processes and systems associated with this project.
Experimentation and Revision
Many aspects of a demonstration project are experimental.
Modifications may be made from time to time as experience is gained,
results are analyzed, and conclusions are reached on how the system is
working. The MRMC will make minor modifications, such as changes in the
occupational series in an occupational family without further notice.
Major changes, such as a change in the number of occupational families,
will be published in the Federal Register.
VI. Project Duration
Public Law 103-337 removed any mandatory expiration date for this
demonstration. The project evaluation plan adequately addresses how
each intervention will be comprehensively evaluated for at least the
first 5 years of the demonstration (Proposed Plan for Evaluation of the
DoD Laboratory Demonstration Program, OPM, 1995). Major changes and
modifications to the interventions can be made through announcement in
the Federal Register and would be made if formative evaluation data
warranted. At the 5-year point, the entire demonstration will be
reexamined for either: (a) Permanent implementation, (b) a continuing
test period, or (c) expiration.
VII. Evaluation Plan
Introduction
In response to the Reinvention Project legislation, OPM will
evaluate the project annually and provide briefings and written reports
of the findings. The Evaluation Plan stipulates both internal and
external evaluation efforts. The phases of the plan are outlined below.
Evaluation Phases
The evaluation effort will be carried out in three phases:
implementation, formative, and summative evaluation. Monitoring of the
project will be concurrent with the implementation phase. An evaluation
of this phase is necessary to determine whether the project is
implemented as designed and to ascertain when the monitored processes
become stable and fully operational. The formative phase evaluation
will extend for the duration of the project. Data will be collected
annually and periodic reports will be issued by OPM. The summative
evaluation phase will assess overall impact of the project during
appropriate time intervals and/or after 5 years of operation.
Evaluation Methodology
The evaluation will focus on the continuum of personnel issues and
will be based on before-and-after comparison of the personnel data,
using both quantitative and qualitative criteria. Personnel records and
reports, as well as previously validated survey instruments, will be
used to develop appropriate measures. New data collection methods and
measures, or modifications to existing instruments, may be required for
some criteria. Baseline data will be collected before the demonstration
project implementation. The baseline survey was administered in the
Summer of 1996.
Evaluation Criteria
While it is not possible to prove a direct causal link between
intermediate and ultimate outcomes (personnel system changes and
improved organizational performance), indirect cause and effect
relationships can be evidenced through the establishment of relevant
effectiveness measures. An intervention impact model (Appendix B) will
be used to measure the effectiveness of the various personnel system
changes or interventions. Additional measures will be developed as new
interventions are introduced or existing interventions modified
consistent with expected effects. Measures may also be deleted when
[[Page 10456]]
appropriate. Activity specific measures may also be developed to
accommodate specific needs or interests which are locally unique. The
evaluation model for the demonstration project identifies elements
critical to an evaluation of the effectiveness of the interventions.
The overall evaluation approach will also include consideration of
context variables that are likely to have an impact on project
outcomes: e.g., HRM regionalization, rightsizing, cross-service
integration, and the general state of the economy. However, the main
focus of the evaluation will be on intermediate outcomes, i.e., the
results of specific personnel system changes which are expected to
improve human resources management. The ultimate outcomes are defined
as improved organizational effectiveness, mission accomplishment and
customer satisfaction.
Data from a variety of different sources will be used in the
evaluation. Information from existing management information systems
supplemented with perceptual data will be used to assess variables
related to effectiveness. Multiple methods provide more than one
perspective on how the demonstration project is working. Information
gathered through one method will be used to validate information
gathered through another. Confidence in the findings will increase as
they are substantiated by the different collection methods. The
following types of data will be collected as part of the evaluation:
(1) Workforce data; (2) personnel office data; (3) employee attitudes
and feedback using surveys, structured interviews and focus groups; (4)
local activity histories; and (5) core measures of subordinate activity
performance.
VIII. Demonstration Project Costs
Costs associated with the development of the personnel
demonstration system include software automation, training, and project
evaluation. All funding will be provided through the MEDCOM/MRMC
budget. The projected annual expenses are as summarized in Table 1.
Project evaluation costs are not expected to continue beyond the first
5 years unless the results warrant further evaluation. Projected
developmental costs do not include potential contractor fees.
Table 1.--Projected Developmental Costs (Current Year Dollars)
[Thousands]
----------------------------------------------------------------------------------------------------------------
Baseline FY97 FY98 FY99 FY00 FY01
----------------------------------------------------------------------------------------------------------------
Training.......................... ........... $99 $19 $19 $19 $19
Project Eval...................... $17 28 60 60 60 60
Automation........................ 80 10 10 10 10 10
-----------------------------------------------------------------------------
Totals........................ 97 137 89 89 89 89
----------------------------------------------------------------------------------------------------------------
IX. Required Waivers to Law and Regulation
Public Law 103-337 gave the DoD the authority to experiment with
several personnel management innovations. In addition to the
authorities granted by the law, the following are the waivers of law
and regulation that will be necessary for implementation of the
demonstration project. In due course, additional laws and regulations
may be identified for waiver request.
1. Waivers to Title 5, U.S. Code
Chapter 31, Section 3111: Acceptance of volunteer service--To the
extent that the acceptance of retired or separated civilian and
military are included as volunteers under current statute in addition
to student volunteers.
Chapter 31, Section 3132: The Senior Executive Service, Definitions
and Exclusions.
Chapter 33, Section 3324: Appointments to Positions Classified
Above GS-15.
Chapter 33, Section 3341: Details; within Executive or military
departments--Increasing 120-Day Increments for Details to 180 days.
Chapter 35, Section 3502: Order of Retention--Applies only to the
extent that performance score is placed before length of service.
Chapter 43, Sections 4302 and 4303: To the extent necessary to (1)
substitute ``pay band'' for ``grade'' and (2) provide that moving to a
lower pay band as a result of not receiving the full amount of a
general pay increase because of poor performance is not an action
covered by the provisions of section 4303.
Chapter 51, Sections 5101-5111: Purpose, definitions, basis,
classification of positions, review, authority--Applies to the extent
that white collar employees will be covered by broadbanding. Pay
category determination criteria for federal wage system positions
remain unchanged.
Chapter 53, Sections 5301, 5302 (8) and (9), 5303 and 5304: Pay
Comparability System--Sections 5301, 5302, and 5304 are waived only to
the extent necessary to allow (1) demonstration project employees to be
treated as General Schedule employees, (2) basic rates of pay under the
demonstration project to be treated as scheduled rates of pay , and (3)
employees in Pay Band V of the Engineers and Scientists Occupational
Family to be treated as ST employees for the purposes of these
provisions.
Chapter 53, Section 5305: Special Salary rates.
Chapter 53, Sections 5331-5336: General Schedule Pay Rates.
Chapter 53, Sections 5361-5366: Grade and pay retention--This
waiver applies only to the extent necessary to (1) replace ``grade''
with ``pay band''; (2) allow demonstration project employees to be
treated as General Schedule employees; (3) provide that pay band
retention provisions do not apply to movements to a lower pay band as a
result of not receiving the general increase due to an annual
performance rating of ``F''; (4) 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; (5)
provide that an employee receiving a retained rate whose performance
rating is ``F'' at the time of a general pay increase will receive no
increase in the retained rate; (6) ensure that, for employees in Pay
Band V of the E&S Occupational Family, pay band retention is not
applicable and pay retention provisions are modified so that no rate
established under these provisions may exceed the rate of basic pay for
GS-15, step 10 (i.e., there is no entitlement to a retained rate).
Chapter 53, Section 5371: Health Care Positions--This waiver
applies only to the extent necessary to allow demonstration project
employees to be treated as if they hold positions subject to Chapter 51
of title 5.
[[Page 10457]]
Chapter 55, Section 5545(d): Hazardous Duty Differential--This
waiver applies only to the extent necessary to allow demonstration
project employees to be treated as General Schedule employees. This
waiver does not apply to employees in Pay Band V of the Engineers and
Scientists Occupational Family.
Chapter 57, Sections 5753, 5754, and 5755: Recruitment and
Relocation Bonuses; Retention Allowances and Supervisory
Differentials--This waiver applies only to the extent necessary to
allow (1) employees and positions under the demonstration project to be
treated as employees and positions under the General Schedule and (2)
employees in Pay Band V of the Engineers and Scientists Occupational
Family to be treated as ST employees.
Chapter 59, Section 5941: Allowances based on living costs and
conditions of environment; employees stationed outside continental U.S.
or Alaska. This waiver applies only to the extent necessary to provide
that COLA's 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(1): Physicians Comparability Allowances--
This waiver applies only to the extent necessary to allow (1) physicans
under the demonstration project to be treated as employees paid under
the General Schedule and (2) physicians in Pay Band V of the Engineers
and Scientists Occupational Family who are performing research and
technology assignments to be treated as ST positions.
Chapter 75, Section 7512(3): Adverse actions--This provision is
waived only to the extent necessary to (1) replace ``grade'' with ``pay
band'' and (2) provide that a reduction in band level is not an adverse
action if it results from the employee's rate of basic pay being
exceeded by the minimum rate of basic pay for his or her pay band.
Chapter 75, Section 7512(4): Adverse actions--This provision is
waived only to the extent that adverse action provisions do not apply
to conversions from General Schedule special rates to demonstration
project pay, as long as total pay is not reduced.
2. Title 5, Code of Federal Regulations
Part 300.601-605: Time-In-Grade Restrictions--Restrictions
eliminated under the demonstration.
Part 308.101-103: Volunteer Service--To the extent that retired/
separated civilians and military can perform voluntary services in
addition to student volunteers.
Part 315.801 and 315.802: Probation on Initial Appointment to a
Competitive Position--Demonstration project employees in some
occupational families will have extended probationary period.
Part 316.301: Term Employment--Adding years to exceed 4 and
establishment of Contingent appointments.
Part 316.303: Tenure of term employees--Demonstration allows for
conversion to career/career-conditional appointments.
Part 316.305: Eligibility for within-grade increases--Demonstration
employees no longer receive WGIs.
Part 334, Section 334.102: Temporary Assignment of Employees
Outside the Agency.
Part 335.103: Covering the length of details and temporary
promotions.
Part 351.402(b): Competitive Area--To the extent that occupational
family is the competitive area.
Part 351.403: Competitive Level--To the extent that pay band is
substituted for grade.
Part 351.504: Credit for Performance--Retention standing to the
extent that service credit will not be modified based on performance
rating.
Part 351.701: Assignment Involving Displacement--To the extent that
bumping and retreating will be limited to no more than one pay band
except for 30 percent compensable veterans who can retreat to the
equivalent of 5 GS grades.
Part 430.201 thru 210: Subpart B, Performance Appraisal for General
Schedule, Prevailing Rate, and Certain Other Employees--Employees under
the demonstration project will not be subject to the requirements of
this subpart.
Part 432: Performance Based Reduction In Grade and Removal
Actions--Modified to the extent that an employee may be removed,
reduced in band level with a reduction in pay, and reduced in pay
without a reduction in band level based on unacceptable performance.
For employees who are reduced in band level without a reduction in pay
as a result of non-receipt of a general increase, Sections 432.105 and
432.106 (a) and (c) do not apply.
Part 432, Sections 104 and 105: Addressing unacceptable performance
and proposing and taking action based on unacceptable performance--In
so far as references to ``critical elements'' are deleted (all elements
are critical), and adding that the employee may be ``reduced in band
level, or pay, or removed'' if performance does not improve to
acceptable levels after a reasonable opportunity.
Part 511: Classification Under the General Schedule--To the extent
that grades are changed to broadbands, and that white collar positions
are covered by broadbanding.
Part 530, subpart C: Special Salary Rate Schedules for Recruitment
and Retention.
Part 531, subparts B, D, and E: Pay Under the General Schedule--
Determining rate of basic pay, within-grade increases, and quality step
increases.
Part 531, subpart F: Locality Based Comparability Payments--This
waiver applies only to the extent necessary to allow (1) Demonstration
project employees to be treated as General Schedule employees, (2)
basic rates of pay under the demonstration project to be treated as
scheduled annual rates of pay, and (3) employees in Pay Band V of the
Engineers and Scientists Occupational Family to be treated as ST
employees for the purposes of these provisions.
Part 536: Grade and pay retention--This waiver applies only to the
extent necessary to (1) Replace ``grade'' with ``pay band'; (2) allow
demonstration project employees to be treated as General Schedule
employees; (3) provide that pay band retention provisions do not apply
to movements to a lower pay band as a result of not receiving the
general increase due to an annual performance rating of ``F'; (4)
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; (5) provide that an employee receiving a
retained rate whose performance rating is ``F'' at the time of a
general pay increase will receive no increase in the retained rate; (6)
ensure that, for employees in Pay Band V of the E&S Occupational
Family, pay band retention is not applicable and pay retention
provisions are modified so that no rate established under these
provisions may exceed the rate of basic pay for GS-15, step 10 (i.e.,
there is no entitlement to a retained rate).
Part 550.703: Severance Pay--This waiver applies only to the extent
necessary to modify the definition of ``reasonable offer'' by replacing
``two grade or pay levels'' with ``one band level'' and ``grade or pay
level'' with ``band level.''
Part 550.902: Hazardous Duty Differential--This waiver applies only
to the extent necessary to allow demonstration project employees to be
treated as General Schedule employees. This waiver does not apply to
[[Page 10458]]
employees in Pay Band V of the Engineers and Scientists Occupational
Family.
Part 575, subparts A, B, C and D: Recruitment and Relocation
Bonuses; Retention Allowances; Supervisory Differentials--This waiver
applies only to the extent necessary to allow (1) Employees and
positions under the demonstration project to be treated as employees
and positions under the General Schedule and (2) employees in Pay Band
V of the Engineers and Scientists Occupational Family to be treated as
ST employees for the purposes of these provisions.
Part 591, subpart B: Cost-of-Living Allowances and Post
Differential-Non-foreign Areas--This waiver applies to the extent
necessary to allow (1) Demonstration project employees to be treated as
employees under the General Schedule and (2) employees in Pay Band V of
the Engineers and Scientists Occupational Family to be treated as ST
employees for the purposes of these provisions.
Part 752.401(a)(3): Adverse Actions--This waiver applies only to
the extent necessary to (1) replace ``grade'' with ``pay band'' and (2)
provide that a reduction in pay band level is not an adverse action if
it results from the employee's rate of basic pay being exceeded by the
minimum rate of basic pay for his or her pay band.
Part 752.401(a)(4): Adverse Actions--This waiver applies only to
the extent that adverse action provisions do not apply to conversions
from General Schedule special rates to demonstration project pay, as
long as total pay is not reduced.
Appendix A: Occupational Series by Occupational Family
I. Engineers and Scientists
0101 Social Science
0180 Psychology
0190 Anthropology
0401 Biology
0403 Microbiology
0405 Pharmacology
0408 Ecology
0410 Zoology
0413 Physiology
0414 Entomology
0415 Toxicology
0440 Genetics
0601 General Health Science
0602 Medical Officer
0610 Nurse
0630 Dietitian & Nutritionist
0644 Medical Technologist
0662 Optometrist
0701 Veterinary Medical Science
0801 General Engineering
0808 Architecture
0830 Mechanical Engineering
0855 Electronics Engineering
0858 Biomedical Engineering
1301 General Physical Science
1306 Health Physics
1310 Physics
1320 Chemistry
1520 Mathematics
1529 Mathematical Stat
1530 Statistician
II. E&S Technicians
0181 Psychology Aid/Technician
0404 Biological Science Technician
0499 Biological Science Student Trainee
0620 Practical Nurse
0640 Health Aid & Technician
0645 Medical Technician
0646 Pathology Technician
0647 Diagnostic Radiologic Technologist
0649 Medical Instrument Technician
0802 Engineer Technician
0809 Construction Control
0818 Engineering Drafting
0856 Electronics Technician
1311 Physical Sciences Technician
1521 Mathematics Technician
III. Administrative
0018 Safety & Occupational Health Management
0028 Environmental Protection Spec
0080 Security Administration
0201 Civilian Personnel Management
0205 Military Personnel Management
0301 Misc Administration & Program
0332 Computer Operation
0334 Computer Specialist
0340 Program Management
0341 Administrative Officer
0342 Support Services Administration
0343 Management/Program Analysis
0346 Logistics Management
0391 Telecommunications
0501 Financial Administration & Program
0505 Financial Management
0510 Accounting
0511 Auditing
0560 Budget Analysis
0905 General Attorney
1020 Illustrating
1035 Public Affairs
1040 Language Specialist
1060 Photography
1071 Audiovisual Production
1082 Writing & Editing
1083 Technical Writing & Editing
1084 Visual Information
1102 Contracting
1105 Purchasing
1152 Production Control
1222 Patent Attorney
1410 Librarian
1412 Technical Information Services
1601 General Facilities & Equipment
1640 Facility Management
1670 Equipment Specialist
1710 Educational & Vocational Training
1740 Education Services
1801 General Inspection, Investigation and Compliance
1910 Quality Assurance
2001 General Supply
2003 Supply Program Management
2010 Inventory Management
2050 Supply Cataloging
2181 Aircraft Operation
IV. General Support
0086 Security Clerical & Asst
0204 Military Personnel Technician
0302 Messenger
0303 Misc Clerk and Asst
0304 Information Receptionist
0305 Mail and File
0312 Clerk-Stenographer/Reporter
0318 Secretary
0322 Clerk-Typist
0326 Office Automation Clerical/Asst
0335 Computer Clerk/Asst
0344 Management Clerical/Asst
0525 Accounting Technician
0561 Budget Clerical/Asst
0675 Medical Records Technician
0679 Medical Clerk
1016 Museum Specialist & Technician
1087 Editorial Asst
1106 Procurement Clerical/Tech
1411 Library Technician
1499 Library and Archives Student Trainee
1531 Statistical Asst
2005 Supply Clerical/Tech
2102 Transportation Clerk/Asst
Appendix B: Project Evaluation and Oversight--Intervention Impact Model--DoD Lab Demonstration Program
----------------------------------------------------------------------------------------------------------------
Intervention Expected effects Measures Data source
----------------------------------------------------------------------------------------------------------------
1. Compensation
----------------------------------------------------------------------------------------------------------------
a. Broad banding................. --Increased --Perceived flexibility. --Attitude survey
organizational
flexibility.
--Reduced administrative --Actual/perceived time --Personnel office data,
workload, paperwork savings. PME results, attitude
reduction. survey
--Advanced in-hire rates. --Starting salaries of --Workforce data
banded v. non-banded
employees.
--Slower pay progression --Progression of new --Workforce data
at entry levels. hires over time by
band, career path.
[[Page 10459]]
--increased pay potential --mean salaries by band, --Workforce data
career path, --Personnel office data
demographics.
--total payroll cost....
--increased satisfaction --employee perceptions --Attitude survey
with advancement. of advancement.
--Increased pay --Pay satisfaction, --Attitude survey
satisfaction. internal/external
equity.
--Improved recruitment... --Offer/acceptance --Personnel office data
ratios.
--Percent declinations..
--No change in high grade --Number/percentage of --Workforce data
(GS-14/15) distribution. high grade salaries pre/
post banding.
b. Conversion buy-in............. --Employee acceptance.... --Employee perceptions --Workforce data
of equity, fairness.
--Cost as a percent of
payroll.
----------------------------------------------------------------------------------------------------------------
2. Performance Management
----------------------------------------------------------------------------------------------------------------
a. Cash awards/bonuses........... --Reward/motivate --Perceived motivational --Attitude survey
performance. power.
--To support fair and --Amount and number of --Workforce data
appropriate distribution awards by career path, --Attitude survey
of awards. demographics,. --Attitude survey
--Perceived fairness of
awards.
--Satisfacttion with
monetary awards.
b. Performance/contribution based --Increased pay- --Perceived pay --Attitude survey
pay progression. performance link. performance link. --Attitude survey
--Perceived fairness of
ratings.
--Improved performance --Satisfaction with --Attitude survey
feedback. ratings. --Attitude survey
--Employee trust in --Attitude survey
supervisors.
--Adequacy of
performance feedback.
--Decreased turnover of --Turnover by --Workforce data
high performers/ performance rating
increased turnover of category.
low performers.
--Differential pay --Pay progression by --Workforce data
progression of high/low performance rating
performers. category, career path.
--Alignment of --Linkage of performance --Performance
organizational and expectations to expectations, strategic
individual performance strategic plans/goals. plans
expectations and results.
......................... --performance --Attitude survey/focus
expectations,. groups
--Increased employee --Perceived involvement. --Attitude survey/focus
involvement in groups
performance planning and
assessment.
......................... --Performance management --Personnel regulations
procedures.
c. New appraisal process......... --Reduced administrative --Employee and --Attitude survey
burden. supervisor perception
of revised procedures.
--Improved communication. --Perceived fairness of --Focus group
process.
d. Performance development....... --Better communication of --Feedback and coaching --Focus group
performance expectations. procedures used. --Personnel office data
--Time, funds spent on --Training records
training by
demographics.
--Organizational
commitment.
--Improved satisfaction --Perceived workforce --Attitude survey
and quality of workforce. quality-attitude survey. Attitude survey
----------------------------------------------------------------------------------------------------------------
3. Classification
----------------------------------------------------------------------------------------------------------------
a. Improved classification --Reduction in amount of --Time spent on --Personnel office data
systems with generic standards. time and paperwork spent classification --Personnel office data
on classification. procedures.
--Reduction of paperwork/
number of personnel
actions (classification/
promotion).
--Ease of use............ --Managers' perceptions --Attitude survey
of time savings, ease
of use, improved
ability to recruit.
--Improved recruitment of --Quality of recruits... --Attitude survey
employees with --Perceived quality of --Focus groups/
appropriate skills. recruits. interviews
--GPAs of new hires, --Personnel office data
educational levels.
b. Classification authority --Increased supervisory --Perceived authority... --Attitude survey
delegated to managers. authority/accountability.
[[Page 10460]]
--Decreased conflict --Number of --Personnel records
between management and classification disputes/
personnel staff. appeals pre/post.
--Management
satisfaction with
service provided by
personnel office.
--Attitude survey.......
--No negative impact on --Internal pay equity... --Attitude survey
internal pay equity.
c. Dual career ladder............ --Increased flexibility --Assignment flexibility --Focus groups, survey
to assign employees.
--Improved internal --Supervisory/non- --Workforce data
mobility. supervisory ratios. --Attitude survey
--Perceived internal
mobility.
--Increased pay equity... --Perceived pay equity.. --Attitude survey
--Flatter organization... --Supervisory/non- --Workforce data
supervisory ratios.
--Improved quality of --Employe perceptions of --Attitude survey
supervisory staff. quality of supervisors.
----------------------------------------------------------------------------------------------------------------
4. RIF
----------------------------------------------------------------------------------------------------------------
Modified RIF..................... --Prevent loss of high --Separated employees by --Workforce data
performing employees demographics, --Attitude survey/focus
with need skills. performance. groups
--Contain cost and --Satisfaction with RIF --Attitude survey/focus
disruption. process. groups
--Cost comparisons of --Personnel office/
traditional v. modified budget data
RIF. --Personnel office data
--Time to conduct RIF... --Personnel office data
--Number of appeals/
reinstatements.
----------------------------------------------------------------------------------------------------------------
5. Combination of all Interventions
----------------------------------------------------------------------------------------------------------------
All.............................. --Improved organizational --Combination of --All data sources
effectiveness. personnel measures.
--Improved management of --Employee/management --Attitude survey
R&D workforce. job satisfaction
(intrinsic/extrinsic).
--Improved planning...... --Planning procedures... --Strategic planning
--Perceived documents
effectiveness of --Organizational charts
planning procedures.
--Improved cross --Actual/perceived --Attitude survey
functional coordination. coordination.
--Increased product --Customer satisfaction. --Customer satisfaction
success. surveys
--Cost of innovation..... --Project training/ --Demo project records
development cost (staff --Contract documents
salaries, contract
cost, training hours
per employee).
----------------------------------------------------------------------------------------------------------------
6. Context
----------------------------------------------------------------------------------------------------------------
a. Regionalization............... --reduced servicing --HR servicing ratios... --personnel office data,
ratios/cost. workforce data
--Average cost per --Workforce data/
employee served. personnel office data
--No negative impact on --Service quality, --Attitude survey/focus
service quality. timeliness. groups
b. GPRA.......................... --Improved organizational --Other measures to be --As established
performance. developed.
----------------------------------------------------------------------------------------------------------------
Appendix C. Performance Elements
Each performance element is assigned a weight between a
specified range. The total weight of all elements in a performance
plan is 100 points. The supervisor assigns each element some portion
of the 100 points in accordance with its importance for mission
attainment.
All employees will be rated against at least the five generic
performance elements listed through ``e'' below. However, only those
employees whose duties require supervisor or manager/leader
responsibilities will be rated on element ``f''. Supervisors will be
rated against an additional performance element, listed at ``g''
below:
a. Technical Competence. Exhibits and maintains current
technical knowledge, skills, and abilities to produce timely and
quality work with the appropriate level of supervision. Makes
prompt, technically sound decisions and recommendations that add
value to mission priorities and needs. For appropriate career paths,
seeks and accepts developmental and /or special assignments.
Adaptive to technological change. (Weight Range: 15 to 50)
[[Page 10461]]
b. Working Relationships. Accepts personal responsibility for
assigned tasks. Considerate of others views and open to compromise
on areas of difference, if allowed by technology, scope, budget, or
direction. Exercises tact and diplomacy and maintains effective
relationships, particularly in immediate work environment and
teaming situations. Always willing to give assistance. Shows
appropriate respect and courtesy. (Weight Range: 5 to 15)
c. Communications. Provides or exchanges oral/written ideas and
information in a manner that is timely, accurate and cogent. Listens
effectively so that resultant actions show understanding of what was
said. Coordinates so that all relevant individuals and functions are
included in, and informed of, decisions and actions. (Weight Range:
5 to 15)
d. Resource Management. Meets schedules and deadlines, and
accomplishes work in order of priority; generates and accepts new
ideas and methods for increasing work efficiency; effectively
utilizes and properly controls available resources; support
organization's resource development and conservation goals. (Weight
Range: 15 to 50)
e. Customer Relations. Demonstrates care for customers through
respectful, courteous, reliable and conscientious actions. Seeks out
and develops solid working relationships with customers to identify
their needs, quantifies those needs, and develops practical
solutions. Keeps customers informed and prevents surprises. Within
the scope of job responsibility, seeks out and develops new programs
and /or reimbursable customer work. (Weight Range: 10 to 50)
f. Management/Leadership. Actively furthers the mission of the
organization. As appropriate, participates in the development and
implementation of strategic and operational plans of the
organization. Develops and implements tactical plans. Exercises
leadership skill within the environment. Mentors junior personnel in
career development, technical competence, and interpersonal skills.
Exercises due responsibility to oversee technical/acquisition/
organizational positions assigned to them. (Weight Range: 0 to 50)
g. Supervision/EEO. Works toward recruiting, developing,
motivating, and retaining quality team members; takes timely/
appropriate personnel actions, applies EEO/merit principles;
communicates mission and organizational goals; by example, creates a
positive, safe, and challenging work environment; distributes work
and empowers team members. (Weight Range: 15 to 50)
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BILLING CODE 6325-01-C