[Federal Register Volume 63, Number 41 (Tuesday, March 3, 1998)]
[Notices]
[Pages 10464-10483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5425]



[[Page 10463]]

_______________________________________________________________________

Part IV





Office of Personnel Management





_______________________________________________________________________



Science and Technology Laboratory Personnel Management Demonstration 
Project Final Plan: U.S. Army Engineer Waterways Experiment Station 
(WES), Vicksburg, MS; Notice

  Federal Register / Vol. 63, No. 41 / Tuesday, March 3, 1998 / 
Notices  

[[Page 10464]]



OFFICE OF PERSONNEL MANAGEMENT


Science and Technology Laboratory Personnel Management 
Demonstration Project; Department of the Army, U.S. Army Engineer 
Waterways Experiment Station (WES), Vicksburg, MS

AGENCY: Office of Personnel Management.

ACTION: Notice of approval of demonstration project final plan.

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

SUMMARY: 5 U.S.C. 4703 authorizes the Office of Personnel Management 
(OPM) to conduct demonstration projects that experiment with new and 
different personnel management concepts to determine whether such 
changes in personnel policy or procedures would result in improved 
Federal personnel management.
    Public Law 103-337, October 5, 1994, permits the Department of 
Defense (DoD), with the approval of the OPM, to carry out personnel 
demonstration projects generally similar to the China Lake 
demonstration project at DoD Science and Technology (S&T) Reinvention 
Laboratories. The Army will implement demonstration projects initially 
to cover five of its S&T Reinvention Laboratories: The Army Research 
Laboratory; the Army Missile Research, Development, and Engineering 
Center; the Army Aviation Research and Development Center; the Army 
Medical Research and Materiel Command; and the Army Engineer Waterways 
Experiment Station. This plan is for the Army Engineer Waterways 
Experiment Station (WES).

DATES: This demonstration project may be implemented at WES beginning 
on June 3, 1998.

FOR FURTHER INFORMATION CONTACT: WES: Dr. C.H. Pennington, U.S. Army 
Engineer Waterways Experiment Station, ATTN: CEWES-ZT-E, 3909 Halls 
Ferry Road, Vicksburg, Mississippi 39180-6199, phone 601-634-3549. 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. Background

    Since 1966, at least 19 studies of DoD laboratories have been 
conducted on laboratory quality and personnel. Almost all of these 
studies have recommended improvements in civilian personnel policy, 
organization, and management. The WES Personnel Management 
Demonstration Project involves simplified job classifications, pay 
banding, a performance-based compensation system, streamlined hiring 
processes, and modified Reduction-in-Force (RIF) procedures.

2. Overview

    On March 15, 1997, [62 FR 12006] OPM published this proposed 
demonstration plan and received thirty-nine letters and eight 
individuals commented on the proposed plan at the Public Hearing. These 
comments brought several new perspectives to the attention of those 
responsible for implementing, overseeing, and evaluating the project. 
The comments highlighted instances of miscommunication and 
misunderstanding with the present system as well as the project 
interventions. Further, they underscored the importance of providing 
training to employees and supervisors on the demonstration project. The 
substance of all comments received has been conveyed to the WES 
Director, Commander and Deputy Director, and the Laboratory Directors 
in the event that local policies, processes, and training sessions may 
benefit from such perspectives. A summary of all comments received, 
along with accompanying responses, is provided below.

A. General Management Issues

    Comments: Seventeen comments were in support of the project as a 
way to provide incentives for promising young people to stay in the 
Federal Government. Seven were opposed to the project, others were 
opposed to some of the provisions in the project, and two recommend 
coverage of engineers and scientists only. Many other comments were 
made that addressed the organizational environment at WES. Several 
comments expressed concern over a demonstration project which provides 
additional flexibility to supervisors and suggested that these 
flexibilities will allow for or promote abuses and compromises of the 
merit system. With the feeling that many supervisors currently do not 
properly execute supervisory responsibilities or utilize the authority 
and tools provided under the current system, these employees fear a new 
system that gives supervisors additional flexibility over their career 
and pay. Several comments mentioned that no checks or oversight seem 
apparent and that management accountability is lacking under the 
Project.
    Response: It has been the intent of WES from the inception of the 
Personnel Management Demonstration Project to include the total 
workforce in a broadbanding performance-based personnel management 
system, not just the engineers and scientists. Internal equity, 
organizational cohesiveness based on a common performance management 
philosophy, and administrative efficiency are reasons WES included the 
entire workforce in the project. WES acknowledges that the project 
provides increased authority and responsibility to supervisors, 
particularly in those areas impacting employees' pay. Experience with 
other personnel demonstration projects, including the China Lake 
project, does not support the assumption that increased supervisory 
discretion and authority leads to merit system abuses. However, WES is 
sensitive to the concerns expressed by many of the comments and is 
committed to holding supervisors accountable for the proper use of 
increased authorities and flexibilities. To assist supervisors in 
carrying out their new responsibilities, the Personnel Management 
Demonstration Project currently requires that supervisors be trained on 
the new system and receive feedback from a number of sources. Aggregate 
data from the feedback process will be made available to the top 
management at WES and will be used to monitor and identify further 
supervisory development and training needs. Project oversight will be 
achieved by an executive steering committee, co-chaired by the 
Assistant Secretary of the Army for Research and Technology and the 
Deputy Assistant Secretary of the Army, Civilian Personnel Policy. 
Additionally, extensive independent evaluations of the demonstration 
project will be conducted by OPM's Personnel Resources and Development 
Center over the first five years of the project. The results of these 
evaluations will provide WES with information as to whether specific 
provisions of the project need to be modified, continued as is, or 
curtailed.

B. Occupational Family and Broadbands

    Comments received on this aspect of the Personnel Management 
Demonstration Project were related to two subtopics; broadbanding and 
assignment of job series to occupational families.
(1) Broadbanding
    (a) Comment: Four individuals expressed concern about the proposed 
broadbanding structure in the Engineers and Scientists occupational 
family. Two recommended that grades GS-12 through GS-14 be included in 
one pay band since this was in the original WES

[[Page 10465]]

proposal. One recommended one pay band covering GS-11 through GS-15. 
The other recommended that GS-13s, GS-14s, and GS-15s be placed in 
separate pay bands. Concerns presented included: GS-12s at WES 
consistently work at the GS-13 or GS-14 level; there is a glass ceiling 
for GS-12s; GS-12s are lower than others serving on national and 
international committees; expectations of wholesale transfer of GS-12s 
which will be a loss to the community; retention problems; costs of 
retraining new recruits; and concerns about ethical dilemmas when 
raters and ratees are in the same pay band.
    Response: WES recognizes there is a concern over the lack of 
progression opportunities from GS-12 to GS-13 under the present system 
and the desirability of establishing a pay band that would remove 
promotion barriers and allow progression to a level of pay equivalent 
to the GS-14 level. This is evident in the turnover of engineer and 
science employees at the GS-12 level, which is the highest at WES. A 
proposal was included in the first WES plan to address these issues and 
to experiment with a GS-12 through GS-14 pay band for engineers and 
scientists performing research, testing and evaluation, and 
experimental development functions. Based on these comments and those 
presented during the project development process, the pay banding 
scheme for the Engineers and Scientists occupational family has been 
revised to recognize a pay band covering GS-12 through GS-14. The issue 
of raters and ratees in the same band was considered to be comparable 
to rating levels under the present system whereby person-in-job 
positions are frequently at or above the level of their raters. This is 
not viewed as a potential problem.
    (b) Comment: One commentor recommended that separate occupational 
families, pay bands, and pay pools be established for both legal and 
contracting personnel.
    Response: WES currently has 3 attorneys and 13 GS-1102 contracting 
employees. The creation of separate occupational families and pay bands 
for each professional group is impractical, would require an inordinate 
amount of time to manage, and the pay pools would be too small to 
provide substantial financial rewards to recognize exceptional 
performance. The legal and contracting occupations will continue to be 
included in the Administrative occupational family.
    (c) Comment: One commentor stated that ``the ratio of possible pay 
increases caused by the banding is highly favorable to the white male 
while the minorities, especially African Americans and females, will 
find themselves locked in the lower paying bands.''
    Response: The pay banding schemes were developed by a committee 
comprised of labor, management, professional, clerical, technical, wage 
grade, African American, white, male, and female employees. Pay band 
considerations included the nature of work (professional, 
nonprofessional, technical, support, etc.), normal level of work, and 
normal career progression of employees within the various occupational 
families. The results reflect progression from entry level trainee, to 
intern to developmental, to journeyman, to advanced journeyman, to 
expert, to managerial level. No positions were designated to bands 
based on non-merit factors such as race, sex, national origin, or any 
other personal considerations of incumbents. Additionally, experience 
of the China Lake Project shows that broadbanding does not discriminate 
based on race, sex, national origin or any other personal 
considerations. To assist WES in monitoring this important issue, data 
on band level salary, and workforce demographics, supplemented by 
perceptual data, are included in the planned evaluation strategy. 
Evaluation results will alert WES of any unintended outcomes and will 
serve as the basis for decisions to modify the project.
    (d) Comment: One employee voiced concern about the potential 
problem of applying for a job in another agency if they were at pay 
band IV in the Engineers and Scientists occupational family and the 
desired job was GS-15. The employee was concerned about how the agency 
would know their comparable grade level.
    Response: The project includes a provision for conversion out of 
the project to the General Schedule pay system. In instances such as 
this, employees will be encouraged to ask prospective employers to 
contact the employee's servicing Human Resources Management (HRM) 
Office for comparable grades, etc., in order to make qualifications 
determinations.
(2) Assignment of Job Series to Occupational Families
    Comments: Three comments were submitted raising concern about the 
identification of job series to occupational families. These comments 
were related to the assignment of GS-0544, Civilian Pay Technician, and 
GS-1106, Procurement Clerk, positions to the General Support 
occupational family.
    Response: The occupational families selected for the WES Personnel 
Management Demonstration Project group positions by job series under 
one of four occupational families: Engineers and Scientists; E&S 
Technicians; Administrative; and General Support. Each occupational 
family covers occupations similarly treated in regard to type of work, 
typical career progression, and qualification requirements. Using these 
criteria, positions designated as Civilian Pay Technician, GS-0544, and 
Procurement Clerk, GS-1106, are assigned to the General Support 
occupational family.

C. Performance Evaluation

    Comment: One commentor had three concerns about the performance 
evaluation system that will be used by this project. The commentor 
recommended that a pass/fail system be adopted, three performance 
elements be added to the appraisal, and the employee-to-supervisor 
ratio of about 15:1 be waived.
    Response: Several performance evaluation options including a pass/
fail system were considered during project development. While pass/fail 
is a viable option, a system that rates an employee's performance on a 
scale from 0 to 5 was adopted. The latter is believed to be more 
compatible for converting performance ratings or scores to pay-for-
performance. The recommended three additional performance elements 
(empowers his/her personnel, acquisition streamlining initiatives, and 
support to the organization) will not be added since they are 
considered to be embedded within the seven non-supervisory performance 
elements or the two supervisory performance elements. The plan contains 
no requirements for changing the employee-to-supervisor ratio.

D. Supervisory Pay Adjustments and Supervisory Pay Differentials

    Comments: Eight comments were received (one was signed by seven 
individuals) regarding the proposal to allow supervisory pay 
adjustments and differentials for supervisors in the Engineers and 
Scientists occupational family. One was in support of supervisory pay 
adjustments and differentials. One recommended that supervisory pay 
adjustments be applied equally to all engineers and scientists 
supervisors rather than be variable. One commentor recommended that 
adjustments and differentials be made available to all supervisors 
regardless of occupational family assignment. One recommended that 
supervisory pay

[[Page 10466]]

adjustments be allowed to exceed the pay band maximum pay and 
considered as basic pay. The others recommended that the proposal to 
allow these adjustments and differentials be withdrawn. Reasons given 
included supervisory skills are supporting elements that are not 
specific to mission and are generic tasks, supervisory work force is 
stable, proposed plan simplifies the work of supervisors, increased pay 
for supervisors will penalize direct-mission skills, and the plan 
should reward individual performance not the position.
    Response: The proposal to allow supervisory pay adjustments was to 
attract and reward the best individuals for supervisory positions, 
recognize the increased burden placed on engineers and scientists 
supervisors, and to compensate supervisors who supervise employees that 
are typically at the same grade level or higher. The supervisory pay 
adjustment will allow an increase in pay for new supervisors who 
lateral from a nonsupervisory position to a supervisory position within 
the same pay band, i.e., pay band IV or V. This adjustment is not 
automatic and may be varied based on a supervisor's performance, up to 
a maximum of 10 percent. Supervisory pay differentials are included in 
order to recognize pay for performance for supervisors who have reached 
the maximum pay for their pay band. This extension of pay will be given 
and adjusted based on their actual performance and the differential 
will not be treated as basic pay. Supervisory adjustments and 
differentials were not made available to supervisors in other 
occupational families since most supervise employees in lower pay 
bands.

E. Distinguished Scholastic Achievement Appointment

    Comments: Eighteen individuals identified a need to modify the 
Personnel Management Demonstration Project to include an initiative 
that was in the original WES proposal, the establishment of a 
Distinguished Scholastic Achievement Appointment which provides the 
authority to appoint undergraduates and graduates with outstanding 
scholastic records to positions in the Engineers and Scientists 
occupational family.
    Response: 5 U.S.C. 4703 states that before a personnel 
demonstration project is conducted, a plan shall be developed which 
identifies the methodology of the project. The plan must be published 
in the Federal Register and submitted as published to public hearings. 
New initiatives or substantive changes to a proposed personnel 
demonstration project are not permitted without being submitted to 
public hearing. The Distinguished Scholastic Achievement Appointment is 
considered to be a new initiative and has not been the subject of a 
public hearing. Therefore, the Distinguished Scholastic Achievement 
Appointment will not be included as part of the WES Personnel 
Management Demonstration Project at this time. However, WES management 
intends to submit the Distinguished Scholastic Achievement Appointment 
as a personnel initiative at the appropriate time in the future.

F. Voluntary Emeritus Program

    Comment: One person suggested that the Voluntary Emeritus Program 
be made available to retired or separated individuals regardless of 
occupational family.
    Response: The national prominence earned by researchers at WES 
results from their unparalleled engineering and scientific 
achievements. Many of the retired engineers and scientists continue to 
be leaders in their professions and the Voluntary Emeritus Program 
allows them the opportunity to assist WES in solving problems of 
importance to the nation in broad areas of civil engineering and 
environmental quality. This intervention will be retained as written 
and will be monitored through the evaluation process to determine 
whether it should be expanded to other occupational families.

G. Conversion Buy-In

    Comments: Seven commentors were concerned that, at the time of 
conversion, employees would be given a lump sum cash payment rather 
than adjusting base salary for time credited toward what would have 
been the employee's next within-grade increase. All believe that a one-
time payment equal to an employee's time vested in their current grade 
step takes away from the employee's future earnings.
    Response: WES has modified the conversion procedure so that, at the 
time of conversion into the project, each employee will have their 
basic pay adjusted for time credited toward what would have been the 
employee's next within-grade increase.

H. Reduction-In-Force (RIF)

    Comments: Five commentors were concerned with the revised RIF 
procedures that place greater emphasis on performance when establishing 
retention registers. Two commentors viewed the revised procedures as 
unfair since performance scores are not used to adjust the service 
computation date; one commentor was concerned about veterans' 
preference issues; one commentor did not believe that competitive areas 
should be defined as the occupational family; and the other commentor 
saw no need to change current RIF procedures.
    Response: The current RIF system is complicated, costly, and 
relatively unresponsive to the needs of the organization. WES believes 
that flexible and responsive alternatives are needed that place greater 
emphasis on performance while preserving the guiding principles of 
veterans' preference laws. The revised RIF procedures will disrupt the 
organization the least and will increase the probability of retaining 
the highest performing individuals. Under the Project, employees will 
retain rights and protections during RIF. At the same time, one goal of 
the Project is to expand the role of performance in various aspects of 
employment. For this reason, the Project does not use performance 
scores to adjust the service computation date (SCD), as one commentor 
suggested. The Project instead emphasizes performance by using the most 
recent employee performance score as a separate element in the order of 
retention during RIF and by giving that score priority over the service 
computation date in determining the order of retention. Retention 
standing will be based upon the following factors, listed in order of 
priority: tenure, veterans' preference, most recent employee 
performance score, and SCD. The role of veterans' preference remains 
unchanged from the current system. Finally, competitive areas have been 
modified to make each of the four occupational families a separate 
competitive area. All positions in a given occupational family, 
regardless of their geographic locations, will fall within a single 
competitive area.

3. Demonstration Project System Changes

    Minor editorial changes were made to correct the final version of 
the Project. In addition, pertinent sections of the final plan have 
been modified to include: a pay band in the Engineers and Scientists 
occupational family that combines GS 12-14 positions (Section III, A, 
Broadbanding); and an adjustment of basic pay for the time credited 
toward the employee's next within-grade increase at the time of 
conversion into the project (Section V, A, Conversion to the 
Demonstration Project).

    Dated: February 26, 1998.


[[Page 10467]]


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

Table of Contents

I. Executive Summary
II. Introduction
    A. Purpose
    B. Problems with the Present System
    C. Changes Required and Expected Benefits
    D. Participating Organization
    E. Participating Employees
    F. Project Design
III. Personnel System Changes
    A. Broadbanding
    B. Classification
    C. Pay for Performance
    D. Pay Setting Provisions
    E. Hiring and Placement Authorities
    F. Employee Development
    G. Reduction in Pay or Removal Actions
    H. Revised Reduction-In-Force (RIF) Procedures
IV. Training
    A. Supervisors
    B. Administrative Staff
    C. Employees
V. Conversion
    A. Conversion to the Demonstration Project
    B. Conversion from the Demonstration Project
VI. Project Duration
VII. Evaluation Plan
VIII. Demonstration Project Costs
IX. Required Waivers to Law and Regulations
    A. Waivers to Title 5, U.S. Code
    B. Waivers to Title 5, Code of Federal Regulations
Appendix A: Intervention Impact Model: Project Evaluation

I. Executive Summary

    The Department of the Army (DA) will establish Personnel 
Demonstration Projects generally similar to the system currently in use 
at the Navy Personnel Demonstration Project known as China Lake. The 
Personnel Demonstration Projects will be developed to be in-house 
budget neutral, based on a baseline of September 1995 in-house costs 
and consistent with the DA plan to downsize the DA laboratories and 
research and development centers. 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 was designed by the Assistant Secretary of the Army 
for Research, Development and Acquisition with the support of the 
Assistant Secretary of the Army for Civil Works, and the participation 
of five Army S&T Reinvention Laboratories. Review was provided by the 
US Army Corps of Engineers, DA, DoD, and OPM. Phases of the project 
that address non-Title 5 issues began as early as 1 October 1995, with 
implementation of Title 5 initiatives to begin no earlier than June 3, 
1998.
    This project is built upon the concepts of linking performance to 
pay for all covered positions, simplifying paperwork in the processing 
of classification and other personnel actions, emphasizing partnerships 
among management, employees, and unions, and delegating other 
authorities to line managers.

II. Introduction

A. Purpose

    The quality of DoD laboratories, their people, and products has 
been under intense scrutiny in recent years. The perceived 
deterioration of laboratory 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. The 
purposes of the demonstration project are to: Improve the hiring 
process and allow WES to compete more effectively for high-quality 
personnel; motivate and retain staff through pay for performance, 
sabbaticals, and a more responsive personnel system; strengthen the 
manager's role in personnel management through increased delegation of 
personnel authorities; increase the efficiency of the personnel system 
by simplifying the classification system through broadbanding and 
reduction of guidelines, steps, and paperwork; and create a model that 
could be adopted by other government agencies.
    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 
MACOM Commander will execute and manage the project.
    Project oversight 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.

B. Problems With the Present System

    The civilian personnel system currently in use at DoD laboratories 
has several major inefficiencies, which hinder management's ability to 
recruit and retain the best qualified personnel. Line managers have 
only limited flexibility to administer personnel resources, and 
existing personnel regulations are often in conflict with line 
management's ability to perform world-class research. Laboratory 
managers are frustrated in their attempts to hire the best and 
brightest engineers and scientists.
    The classification system requires lengthy, narrative, individual 
position descriptions, which have to be classified by the use of 
complex and often outdated position classification standards. The 
system causes delays in recruiting, reassigning, promoting, and 
removing employees. Rewarding or taking a performance based action 
requires inordinate paperwork and time, often discouraging managers 
from pursuing critical actions. Few incentives, with limited 
flexibility, exist for managers to deal with all levels of the 
workforce, and pay is not always commensurate with an employee's 
performance. The current RIF system does not adequately recognize 
performance as a major criterion in RIF situations. The RIF rules are 
complex, and difficult to understand and administer. The RIF process 
disrupts operations, due to displacement of employees within their 
competitive levels and in the exercise of bumping and retreat rights.

C. Changes Required and Expected Benefits

    This project is expected to demonstrate that a human resource 
management system tailored to the mission and need of WES will result 
in: Increased quality in the engineering and science workforce and the 
laboratory products they produce; increased timeliness of key personnel 
processes; trended workforce data that reveals increased retention of 
excellent contributors and separation rates of poor contributors; and 
increased customer satisfaction with the laboratory and its products by 
customers serviced.
    This demonstration program builds on the successful features of 
demonstration projects at China Lake and the National Institute of 
Standards and Technology (NIST). These demonstration projects have 
produced impressive statistics on job satisfaction of their employees 
versus that for the federal workforce in general. This demonstration 
expects similar successes. A full range of data will be collected to 
evaluate the project (and is described in Section VII, Evaluation 
Plan).

[[Page 10468]]

D. Participating Organization

    U.S. Army Engineer Waterways Experiment Station, 3909 Halls Ferry 
Road, Vicksburg, Mississippi 39180-6199. Employees assigned to WES work 
at the locations shown in Table 1.

                        Table 1.--Duty Locations                        
------------------------------------------------------------------------
                                                              Total No. 
                          Location                                of    
                                                              employees 
------------------------------------------------------------------------
London, England............................................            1
Berkeley, CA...............................................            1
Mobile, AL.................................................            3
Washington, DC.............................................            1
Fayette, NC................................................            1
Natchez, MS................................................            1
Vicksburg, MS..............................................        1,312
Duck, NC...................................................           10
Calhoun Falls, SC..........................................            2
Lewisville, TX.............................................            3
North Bonneville, WA.......................................            3
Dallesport, WA.............................................            1
Spring Valley, WI..........................................            2
Omaha, NE..................................................           56
------------------------------------------------------------------------

E. Participating Employees

    The project will cover all General Schedule (GS) employees assigned 
to WES. Federal Wage System (FWS) employees, Civilian Intelligence 
Personnel Management System (CIPMS) employees covered by Title 10, and 
5 U.S.C. 3105 Scientific and Technical (ST) employees are not covered, 
but will follow the same employee development provisions of this plan, 
except, in the case of CIPMS employees, where the provisions are found 
to be in conflict with CIPMS. The occupational series of employees 
included in the project are identified by occupational family in Table 
2. All GS employees with appointments exceeding one year will be 
covered by the provisions of this project. GS employees with 
appointments limited to one year or less will be covered for pay 
banding, the performance appraisal process, and salary adjustments. 
Senior Executive Service (SES) employees will not be included in the 
project. It is the intent of WES to expand coverage of the project to 
all FWS employees 1 to 2 years following the date of implementation. In 
the event of expansion to FWS employees beyond the employee development 
provisions, full approval will be obtained from DA, DoD, and OPM.
    The American Federation of Government Employees (AFGE) represents 
approximately 500 GS and FWS employees at WES. The AFGE represents most 
E&S Technicians; most Administrative employees; all General Support 
employees except fire protection inspectors, security guards, student 
trainees, and those designated as confidential employees; and all 
nonsupervisory FWS employees. WES plans to implement this project on 
June 3, 1998. Bargaining unit employees will be included in the project 
at that time if Impact and Implementation bargaining is complete. If 
Impact and Implementation bargaining has not been completed on the date 
of project implementation, employees represented by AFGE Local 3310 may 
not be brought into the project until completion of the bargaining 
process. AFGE Local 3310 has been involved with and participated in the 
development of the project since its inception. WES will continue to 
fulfill its obligation to consult or negotiate with the AFGE, as 
appropriate, in accordance with 5 U.S.C. 4703 (f) and 7117. The 
participation with the AFGE is within the spirit and intent of 
Executive Order 12871.

   Table 2.--Occupational Series Included in the Demonstration Project  
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                         Engineers & Scientists                         
                                                                        
0023                              Outdoor Recreation Planner            
0150                              Geographer                            
0193                              Archeologist                          
0401                              Biologist                             
0403                              Microbiologist                        
0408                              Ecologist                             
0410                              Zoologist                             
0414                              Entomologist                          
0430                              Botanist                              
0434                              Plant Pathologist                     
0435                              Plant Physiologist                    
0470                              Soil Scientist                        
0471                              Agronomist                            
0482                              Fishery Biologist                     
0486                              Wildlife Biologist                    
0499                              Student Trainee                       
0690                              Industrial Hygienist                  
0801                              General Engineer                      
0803                              Safety Engineer                       
0806                              Materials Engineer                    
0807                              Landscape Architecture                
0808                              Architecture                          
0810                              Civil/Hydraulic/Structural Engineer   
0819                              Environmental Engineer                
0830                              Mechanical Engineer                   
0850                              Electrical Engineer                   
0854                              Computer Engineer                     
0855                              Electronics Engineer                  
0893                              Chemical Engineer                     
0896                              Industrial Engineer                   
0899                              Student Trainee                       
1301                              Physical Scientist                    
1310                              Physicist                             
1313                              Geophysicist                          
1315                              Hydrologist                           
1320                              Chemist                               
1350                              Geologist                             
1360                              Oceanographer                         
1399                              Student Trainee                       
1515                              Operations Research Analyst           
1520                              Mathematician                         
1530                              Statistician                          
1550                              Computer Scientist                    
1599                              Student Trainee                       
                                                                        
                             E&S Technicians                            
                                                                        
0028                              Environmental Protection Specialist   
0802                              Engineering Technician                
0818                              Engineering Draftsman                 
0856                              Electronics Technician                
1311                              Physical Science Technician           
1371                              Cartographic Technician               
1521                              Mathematics Technician                
1670                              Equipment Specialist                  
                                                                        
                             Administrative                             
                                                                        
0018                              Safety & Occupational Health          
                                   Specialist                           
0099                              Student Trainee                       
0260                              Equal Employment Opportunity          
                                   Specialist                           
0301                              Info Syst Mgr Spec/Joint Test Prog Mgt
                                   Coordinator/Emergency Oper Mgr       
0334                              Computer Specialist                   
0341                              Administrative Officer                
0343                              Mgt & Prog Analysis Officer           
0346                              Logistics Management Officer          
0391                              Telecommunications Officer            
0399                              Student Trainee                       
0505                              Financial Manager                     
0510                              Accountant                            
0511                              Auditor                               
0560                              Budget Officer                        
0599                              Student Trainee                       
0610                              Nurse                                 
0905                              General Attorney                      
0950                              Paralegal Specialist                  
1020                              Illustrator                           
1035                              Public Affairs Specialist             
1060                              Photographer                          
1071                              Audiovisual Specialist                
1082                              Editor                                
1084                              Visual Information Specialist         
1102                              Contract Specialist                   
1104                              Property Disposal Specialist          
1199                              Student Trainee                       
1410                              Librarian                             
1412                              Technical Information Specialist      
1499                              Student Trainee                       
1712                              Training Instructor                   
2001                              General Supply Specialist             
2101                              Transportation Specialist             
                                                                        
                             General Support                            
                                                                        
0019                              Safety Technician                     
0081                              Firefighter                           
0085                              Security Guard                        
0090                              Guide                                 
0099                              Student Trainee                       
0302                              Messenger                             
0303                              Clerk                                 
0305                              Mail & File Clerk                     
0312                              Clerk-Stenographer                    
0318                              Secretary                             
0322                              Clerk-Typist                          
0326                              Office Automation Clerk               
0332                              Computer Operator                     
0335                              Computer Clerk                        
0344                              Management Assistant                  
0361                              Equal Employment Opportunity Assistant
0394                              Communications Clerk                  
0503                              Financial Clerk & Assistant           
0525                              Accounting Technician                 
0530                              Cash Processing Technician            
0540                              Civilian Pay Technician               
0544                              Teller                                

[[Page 10469]]

                                                                        
0561                              Budget Clerk                          
0986                              Legal Clerk                           
1105                              Purchasing Clerk                      
1106                              Procurement Clerk                     
1107                              Property Disposal Clerk               
1411                              Library Technician                    
2005                              Supply Clerk                          
2102                              Transportation Clerk                  
2131                              Freight Rate Specialist               
------------------------------------------------------------------------

F. Project Design

    In August 1994, a Project Manager was appointed to lead the WES 
reinvention effort. The Project Manager was assisted by a 
representative of the servicing HRM Office. During October-November 
1994, a WES concept plan was developed to map out desired areas in 
which to propose changes in the personnel system. The concept plan was 
then merged into a single Army plan for the participating Army S&T 
Laboratories and was submitted to the DA in December 1994.
    WES formed four teams in January 1995 to develop specific 
initiatives to be undertaken in the WES demonstration project. The 
teams were composed of 7 to 14 employees each and included 
representatives from management, engineers, scientists, technicians, 
clerical, administrative, wage grade, human resources, and 
representatives from the local union. The teams developed human 
resources management initiatives which were designed to: assist in 
hiring the best people to accomplish the mission; improve training and 
development of the workforce; improve and simplify the position 
classification process; develop a broadband system to facilitate 
classification and career progression; and develop a pay for 
performance system to recognize employee contributions to mission 
accomplishment.
    The Army's plan was reviewed concurrently by DoD and OPM in April 
1996. It was recommended that each Army lab submit individual project 
plans. The second joint review by DoD and OPM of the lab plans was 
conducted in September 1996. The philosophy and intent of WES 
throughout the process of project development was the inclusion of its 
total workforce. As such, a pay-for-performance broadbanding system was 
developed for FWS employees, in partnership with representation from 
the bargaining unit, and was included as part of the WES plan. At the 
joint reviews, the DoD Civilian Personnel Management Service and OPM's 
Office of Classification and Office of Compensation Policy considered 
the broadbanding of FWS employees as outlined in the WES plan to be 
inappropriate. FWS employees were removed from the plan but will follow 
the same employee development provisions of this plan. Options for 
including them in a pay-for-performance system at a later date will be 
developed by WES, DA, DoD, and OPM.
    This plan and these initiatives are the result of many months of 
effort by dedicated participants at WES, U.S. Army Corps of Engineers, 
DA, DoD, and OPM levels.

III. Personnel System Changes

A. Broadbanding

1. Pay Bands
    Each occupational family will be composed of discrete pay bands 
corresponding to recognized career advancement within the occupations. 
The pay bands will replace grades. The pay bands will not be the same 
for all occupational families. Each occupational family will be divided 
into four to six pay bands, each pay band covering the same pay range 
now covered by one or more grades. The minimum rate of basic pay for a 
band will be the minimum rate for the lower grade in the band as shown 
on the regular GS schedule. The maximum rate of basic pay for a pay 
band will be the highest regular schedule GS rate possible for 
positions within that occupational family and pay band. 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 
salary within a pay band.
    The proposed pay bands for the occupational families and how they 
relate to the current GS grades are shown in Table 3. This pay band 
concept has the following advantages because it: reduces the number of 
classification decisions required during an employee's career; 
simplifies the classification decision-making process and paperwork; 
supports delegation of classification authority to line managers; 
provides a broader range of performance-related pay for each pay band; 
and prevents the progression of low performers through a pay band by 
mere longevity, since job performance serves as the basis for 
determining pay.
    The WES pay banding plan expands the pay banding concept used at 
China Lake and NIST by creating pay band VI of the Engineers and 
Scientists occupational family. This pay band is designed for Senior 
Scientific Technical Managers.
    Current legal definitions of Senior Executive Service (SES) and ST 
positions do not fully meet the needs of WES. The SES designation is 
appropriate for executive level managerial positions whose 
classification exceeds the GS-15 grade level. The primary knowledge 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.

                                                                          Table 3.--Occupational Families and Pay Bands                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Occupational families                                                                                                                                                              
(15)Pay Bands                                                                                                                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Engineers and Scientists (E&S)*................                                                                                                                                                 
(3)I                                                                                                                                                                                            
(5)II                                                                                                                                                                                           
(1)III                                                                                                                                                                                          
(1)IV                                                 V       VI                                                                                                                                
                                                                                                                                                                                                
(3)(N)                                                                                                                                                                                          
(5)(N)                                                                                                                                                                                          
(1)(E)                                                                                                                                                                                          
(1)(E)                                              (E)      (E)                                                                                                                                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
E&S Technicians................................                                                                                                                                                 
(3)I                                                                                                                                                                                            
(2)II                                                                                                                                                                                           
(2)III                                                                                                                                                                                          
(1)IV                                                                                                                                                                                           
                                                                                                                                                                                                
(3)(N)                                                                                                                                                                                          
(2)(N)                                                                                                                                                                                          
(2)(N)                                                                                                                                                                                          
(1)(E)                                                                                                                                                                                          
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Administrative.................................                                                                                                                                                 
(3)I                                                                                                                                                                                            
(5)II                                                                                                                                                                                           
(1)III                                                                                                                                                                                          
(1)IV                                                 V                                                                                                                                         
                                                                                                                                                                                                
(3)(N)                                                                                                                                                                                          
(5)(N)                                                                                                                                                                                          
(1)(E)                                                                                                                                                                                          
(1)(E)                                              (E)                                                                                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
General Support................................                                                                                                                                                 
(2)I                                                                                                                                                                                            
(1)II                                                                                                                                                                                           
(1)III                                                                                                                                                                                          
(1)IV                                                                                                                                                                                           
                                                                                                                                                                                                
(2)(N)                                                                                                                                                                                          
(1)(N)                                                                                                                                                                                          
(1)(N)                                                                                                                                                                                          
(1)(E)                                                                                                                                                                                          
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 10470]]

                                                                                                                                                                                                
Corresponding GS Grades........................       1        2        3        4        5        6        7        8        9       10       11       12       13       14       15     Above 
                                                                                                                                                                                             15 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
*Engineers and Scientists pay band II includes a mix of positions: positions equivalent to GS-5 through 10 involve research, test, evaluation, and equipment development work as well as non-   
  research work; positions equivalent to GS-11 involve research work. Pay band III includes non-research positions, e.g., engineers in public works. Pay band IV positions equivalent to GS-12  
  through GS-14 involve research work; the balance of band IV includes a mix of research and non-research supervisory positions, and program managers. FLSA Codes: N=Nonexempt; E=Exempt.       
  Although typical exemption status under the various pay bands is shown, actual FLSA exemption status determinations are made on a case-by-case basis.                                         

    WES currently has a few positions which typically have 
characteristics of both SES and ST classifications. Most of these 
positions are responsible for supervising other GS-15 positions, 
including branch or division chiefs, non-supervisory research engineers 
and scientists, and potential ST positions. These positions are 
classified at the GS-15 level, although their technical expertise 
warrants classification beyond GS-15. Because of their management 
responsibility, these individuals are excluded from the ST system.
    Because of management considerations, they cannot be placed in the 
SES. WES management considers the primary requirement for the positions 
to be knowledge of and expertise in the specific scientific and 
technology areas related to the mission of the organization. 
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 VI (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. Payband 
VI 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-15s will convert into the demonstration project at pay 
band V. After conversion they will be reviewed against established 
criteria to determine if they should be reclassified to pay band VI. 
Other positions possibly meeting criteria for classification to pay 
band VI will be reviewed on a case-by-case basis. The proposed salary 
range is a minimum of 120 percent 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 VI 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.
    Selection panels will be created to assist in filling Payband VI 
positions. Panel members will be selected from a pool of current WES 
SES members, ST employees, and later those in Payband VI, and an equal 
number of individuals of equivalent stature from outside the laboratory 
to ensure impartiality, 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 VI for a 5-year period. 
Positions established in pay band VI will be subject to limitations 
imposed by OPM and DoD. Pay band VI positions will be established only 
in an S&T Reinvention Laboratory which employs scientists, engineers, 
or both. Incumbents of pay band VI 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 VI positions within 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 VI positions will be reviewed 
periodically to determine appropriate position requirements. Pay band 
VI position allocations will be managed separately from SES, ST, and 
Senior Level (SL) positions. An evaluation of the pay band VI concept 
will be performed during the fifth year of the demonstration project.
    The final component of pay band VI is the management of all pay 
band VI assets. Specifically, this authority will be exercised at the 
DA level and includes the following: authority to classify, create or 
abolish positions within the 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.
2. Occupational Families
    Positions will be grouped into occupational families according to 
similarities in type of work and customary requirements for formal 
training or credentials. The historical patterns of advancement within 
the occupational families will be considered. The current positions and 
grades at WES have been examined, and their characteristics and 
distribution have served as guidelines in the development of 
occupational families. Four occupational families will be established:
    (a) Engineers and Scientists. This occupational family includes all 
technical professional positions such as engineers (civil, hydraulic, 
structural, mechanical, electronic, electrical, chemical, and 
environmental), mathematicians, statisticians, computer scientists, 
outdoor recreational planners, geographers, architects, archaeologists, 
operations research analysts, and a variety of physical and biological 
scientists. Specific course work or educational degrees are required 
for positions in this occupational family.
    (b) E&S Technicians. This occupational family consists of the 
positions that support the various engineering and scientific 
activities. Employees in this occupational family are required to have 
training and skills in the various technical areas (civil, hydraulic, 
structural, geotechnical, physical, coastal, biological, chemical).
    (c) Administrative. This occupational family contains specialized 
functions in such fields as counsel, audit, finance, procurement, 
public information, accounting, administrative, computing, safety, and 
management analysis. Special training and skills in administrative 
fields or special degrees are required.

[[Page 10471]]

    (d) General Support. This occupational family is composed of 
positions requiring special skills and knowledge, such as typing or 
shorthand, 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. Other support functions include the work of secretaries, legal 
clerks, guards, mail clerks, etc.
3. Fair Labor Standards Act
    Fair Labor Standards Act (FLSA) exemption and nonexemption 
determinations will be made consistent with criteria found in 5 CFR 
part 551. All employees are covered by the FLSA unless they meet the 
executive, administrative, or professional criteria for exemption. As a 
general rule, the FLSA status can generally be matched to the 
occupational families and pay bands found in Table 3. Exceptions to 
these guidelines include supervisors/managers who meet the definitions 
outlined in the OPM General Schedule Supervisory Guide. The generic 
position descriptions will not be the sole basis for the FLSA 
determination. Each position will be evaluated on a case by case basis 
by comparing the duties and responsibilities assigned, the 
classification standards for each pay band, under 5 CFR part 551 
criteria.

B. Classification

1. Coverage
    The present GS classification system has over 400 occupations (also 
called series), which are divided into 22 groups. The present 
occupational series will be maintained. New series may be added as 
needed to reflect new occupations in the work force when established by 
OPM.
2. Classification Standards
    The classification system will be modified to facilitate pay 
banding. The present classification standards will be used to create 
local benchmark position description/standards 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. 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 specialty 
codes and OPM functional codes will be used to facilitate titling, 
making qualification determinations, and assigning competitive levels 
to determine retention status.
3. Position Descriptions and Classification Process
    New standardized position descriptors will be developed to assist 
managers in exercising delegated position classification authority. 
Managers will identify the appropriate pay band and descriptor 
definition and proceed to finalize the position description. A cover 
sheet similar to the present DA Form 374 will be used to reflect their 
classification decision. The cover sheet used will include a provision 
for designating specialty codes. These specialty codes will be 
developed to identify the special nature of work performed and will be 
included on the final position descriptor.
    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 OPM 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 accuracy of the position 
description, the demonstration project classification criteria, or the 
pay-setting criteria; the assignment of occupational series to the 
occupational family; 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 
Civilian Personnel Office/Human Resources Office providing personnel 
service and will include copies of appropriate demonstration project 
criteria.

C. Pay for Performance

    The objective is to establish a pay system that will improve the 
ability of WES 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.
1. Determining Pay Increases
    Compensation will be allocated to employees through organizational 
compensation pools. The WES Director, Commander and Deputy Director, 
and Laboratory Directors at WES will manage their respective pools.
    The compensation pools will have two components: Funds for 
performance pay increases (money previously available for within-grade 
increases, quality step increases, and promotions between grades that 
are banded under the project); and funds for General Schedule pay 
increases. Performance awards (cash awards and bonuses presently 
allowed) and locality pay increases will continue under the project and 
will be excluded from the compensation pools. The compensation pools 
will be managed to ensure relative cost neutrality. As a result, funds 
will not be shifted between pools.
    Annual base pay increases paid from the performance pay increase 
component of the compensation pools will be based on eligibility as 
well as scores on the established standards as follows:
[GRAPHIC] [TIFF OMITTED] TN03MR98.003

Where:

PR = employee's annual performance-based pay raise, $
V = value of a share, percent
S = number of shares earned by employee based on performance
P = employee's salary prior to pay raise

    The number of shares earned by an employee will vary from 0 to 4 
and will depend upon their performance score. A performance pay 
increase may not cause the employee's rate of basic pay to exceed the 
maximum rate of the pay band.
    The value of a share will be computed in a manner to ensure that 
the amount of money available for performance pay increases will not 
exceed the amount of money in a compensation pool that is available for 
raises. Therefore, the amount of money available annually within a pay 
pool for performance-based pay raises is:


[[Page 10472]]

[GRAPHIC] [TIFF OMITTED] TN03MR98.004


Where:

A = average annual historical pay raise, percent
M = pay pool size, $
Pi = salary of employee I
n = number of employees in compensation pool

    The share value (percent) is computed in a manner to ensure exact 
expenditure of the amount of money in the compensation pool as follows:

[GRAPHIC] [TIFF OMITTED] TN03MR98.005

Where:

Si = number of shares earned by employee I based upon 
performance
ne = number of employees within compensation pool that are 
eligible for a performance-based pay raise

    A payout function that correlates number of shares earned by an 
employee for a performance based pay raise to average performance score 
will be similar to the plot shown in Figure 1.
    The annual General Schedule pay increase will be allocated as 
follows:
    (a) The first step is setting the percentage General Schedule 
increase that will be given to all eligible employees. This amount will 
be equal to the General Schedule increase authorized for GS employees. 
All employees whose average performance score is 2.0 or greater will be 
eligible for the increase. Employees with an average performance score 
of less than 2.0 will be ineligible for the full General Schedule 
increase and may receive either none or one-half of the increase. Pay 
increases for employees receiving retained rates will be determined in 
accordance with 5 U.S.C. 5363 except that those with an average 
performance score of less than 2.0 may receive either none or one-
quarter of the increase in the maximum rate of basic pay for the 
applicable pay band.

Figure 1. Relation Between Shares Earned for Performance and 
Average Performance Score

BILLING CODE 6325-01-P
[GRAPHIC] [TIFF OMITTED] TN03MR98.002


BILLING CODE 6325-01-C

    (b) The minimum and maximum pay rates of basic pay for each pay 
band in an occupational family will be adjusted by any general pay 
increase to reflect the new rates in accordance with the criteria 
reflected in Section III, A, Broadbanding, of this plan. The maximum 
pay rate for pay band VI cannot exceed the rate for SES level 4. 
Therefore, employees at or near the top of pay band VI may not receive 
the full general increase if it is not authorized for SES employees.
2. Performance Evaluation
    The performance appraisal system will link compensation to 
performance

[[Page 10473]]

through annual performance evaluations and performance ratings. 
Performance will be evaluated against generic performance standards. 
Rating elements will be provided for all employees. All rating elements 
will be critical and scored on a scale of 0 to 5. The score will be 
based on employees performance as evaluated against generic performance 
standards for each element. The supervisor will discuss performance 
rating standards with the employee to clarify performance criteria at 
the beginning of the rating period. The generic performance standards, 
with the provision to add specific work plans, will be used to evaluate 
employee performance. The standards will describe the level of 
performance required for the employee to be rated fully successful. 
Reviews will be conducted at least at mid-year to evaluate employee 
progress in meeting performance standards. However, WES interns in 
recognized career programs will be appraised semi-annually until they 
complete their internship. The last performance rating in each annual 
cycle will be considered to be the rating of record.
    Since all employees will not have the same number of rating 
elements, the element scores will be summed and averaged by the number 
of elements rated to determine the overall performance score. The score 
will be used for setting performance pay increases and determining 
eligibility for performance awards.
    Employees must have an average performance score of 2.5 and above 
to be eligible for performance pay increases. Employees with an average 
performance score of 2.0 or greater will be eligible for performance 
awards and full General Schedule increases. Employees with an average 
score of less than 2.0 will be ineligible for performance awards and 
full General Schedule increases. A within-the-year review may be used 
to reevaluate employees with performance scores of less than 2.0. If 
the employee's performance has improved sufficiently since the last 
rating period, the employee may be eligible for a nonretroactive 
General Schedule pay raise at that time.
3. Awards
    WES currently has an extensive awards program consisting of both 
internal and external awards. On-the-spot, special act, and other 
internal awards (both monetary and nonmonetary) will continue under the 
project. MACOM, DA, and DoD awards and other honorary noncash awards 
will be retained.
    Cash awards may be given for performance and to recognize and 
encourage special contributions. Awards can be made to individuals, 
teams, or organizations. Awards must be approved at a managerial level 
at least one level higher than the recommending official except in the 
case where the WES Director is the recommender. Cash awards will not be 
considered to be a part of base pay.

D. Pay Setting Provisions

1. Pay and Compensation
    (a) Pay Ceilings. An employee's total monetary compensation paid in 
a calendar year may not exceed the rate of basic pay for level I of the 
Executive Schedule consistent with 5 U.S.C. 5307 and 5 CFR part 530, 
subpart B. Each pay band will have its own pay ceiling, just as grades 
do in the GS system. Basic pay rates for the various pay bands will be 
directly keyed to the GS basic rates of pay except for pay band VI in 
the Engineers and Scientists occupational family. Pay band VI will have 
pay rates keyed to a minimum of 120% of the minimum rate of basic pay 
for GS-15 basic pay with a maximum of the basic rate of pay established 
for SES level 4.
    (b) Staffing Supplements. Employees assigned to occupational series 
and geographic areas covered by special rates will be eligible for a 
staffing supplement if the maximum adjusted rate for the banded GS 
grades to which assigned is a special rate that exceeds the maximum GS 
locality rate for the banded grades (e.g., certain engineers in pay 
bands II and III). The staffing supplement is added to the base pay, 
much like locality rates are added to base pay. The employee's total 
pay immediately after implementation of the demonstration project will 
be the same as immediately before the demonstration project, but a 
portion of the total will be in the form of a staffing supplement. 
Adverse action and pay retention provisions will not apply to the 
conversion process as there will be no change in total salary. The 
staffing supplement is calculated as described below.
    Upon conversion, the demonstration base rate will be established by 
dividing the old GS adjusted rate (the higher of special rate or 
locality rate) by the staffing factor. The staffing factor will be 
determined by dividing the maximum special rate for the banded grades 
by the GS unadjusted rate corresponding to that special rate (step 10 
of the GS rate for the same grade as the special rate). The employee's 
demonstration staffing supplement is derived by multiplying the 
demonstration base rate by the staffing factor minus one. So the 
employee's final demonstration special staffing rate equals the 
demonstration base rate plus the special staffing supplement; this 
amount will equal the employee's former GS adjusted rate. Simplified, 
the formula is:
[GRAPHIC] [TIFF OMITTED] TN03MR98.006

Staffing supplement=Demonstration base rate x (staffing factor--1)
Salary upon conversion=Demonstration base rate + staffing supplement 
(sum will = existing rate)

    Example: In the case of a GS-801-11/03 employee who is receiving a 
special salary rate, the salary before the demonstration project is 
$42,944. The maximum special rate for a GS-801-11 Step 10 is $51,295 
and the corresponding regular rate is $46,523. The staffing factor is 
computed as follows:

[[Page 10474]]

[GRAPHIC] [TIFF OMITTED] TN03MR98.007


    Then to determine the staffing supplement, multiply the 
demonstration base by the staffing factor minus 1.
[GRAPHIC] [TIFF OMITTED] TN03MR98.008

    The staffing supplement of $3,996 is added to the demonstration 
base rate of $38,948 and the total salary is $42,944, which is the 
salary of the employee before conversion to the demonstration project.
    If an employee is in a band where the maximum GS adjusted rate for 
the banded grades is a locality rate, when the employee is converted 
into the demonstration, the demonstration base rate is derived by 
dividing the employee's former GS adjusted rate (the higher of locality 
or special rate) by the applicable locality pay factor. The employee's 
demonstration locality-adjusted rate will equal the employee's former 
GS adjusted rate.
    Any General Schedule or special rate schedule adjustment will 
require recomputation of the staffing supplement. Employees receiving a 
staffing supplement remain entitled to an underlying locality rate, 
which may over time supersede the need for a staffing supplement. If 
OPM discontinues or decreases a special rate schedule, affected 
employees will be entitled to pay retention. Upon geographic movement, 
an employee who receives the special staffing supplement will have the 
supplement recomputed. Any resulting reduction in pay will not be 
considered an adverse action or a basis for pay retention.
    Established salary including the staffing supplement will be 
considered basic pay for the same purposes as a locality rate under 5 
CFR 531.606(b), i.e., for purposes of retirement, life insurance, 
premium pay, and severance pay purposes and for advances in pay. It 
will also be used to compute worker's compensation payments and lump 
sum payments for accrued and accumulated annual leave.
2. 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, whether by performance pay 
increases or supervisory adjustments, 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 RIF procedures.
    (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-in-the-job promotions.
    (g) Promotion resulting from the accretion of duties and 
responsibilities.
    (h) A promotion resulting from the correction of an initial 
classification error.
    Upon promotion to a higher pay band, an employee will be entitled 
to a 6 percent basic pay increase or the lowest level in the pay band 
to which promoted, whichever is greater.
3. Link Between Promotion and Performance
    Noncompetitive promotions (e.g., accretion of duties, recognition 
of impact of person-in-job, career ladder) will require an acceptable 
level of performance in their current position. To be promoted 
noncompetitively from one band to the next within an occupational 
family, an employee must meet the minimum qualifications for the job 
and have a current average performance score of 2.5 or above (Section 
III, C, Pay for Performance) or equivalent under a different 
performance management system (an equivalence chart will be developed 
by HRM specialists and included in the implementation instructions). 
Selection of employees through competitive procedures will require a 
current average performance score of 2.5 or above.
4. Supervisory Pay Adjustments
    Supervisory pay adjustments may be used, at the discretion of the 
WES Director, to compensate employees in the Engineers and Scientists 
occupational family in supervisory positions. Employees in pay band VI 
of the Engineers and Scientists occupational family are excluded from 
receiving supervisory pay adjustments. Supervisory pay adjustments are 
increases to the supervisor's basic rate of pay, ranging up to 10 
percent of that pay rate, subject to the constraint that the adjustment 
may not cause the employee's basic rate of pay to exceed the pay band 
maximum rate. Only employees in supervisory positions with formal 
supervisory authority meeting that required for coverage under the OPM 
GS Supervisory Guide will be considered for the supervisory pay 
adjustment. Criteria to be considered in determining the pay increase 
percentage include the following organizational and individual employee 
factors: needs of the organization to attract, retain, and motivate 
high quality supervisors; budgetary constraints; years of supervisory 
experience; amount of supervisory training received;

[[Page 10475]]

performance; and managerial impact on the organization.
    Conditions, after the date of conversion into the demonstration 
project, under which the application of a supervisory pay adjustment 
will be considered are as follows:
    (a) New hires into supervisory positions will have their initial 
rate of basic pay set at the supervisor's discretion within the pay 
range of the applicable pay band. This rate of pay may include a 
supervisory pay adjustment determined using the ranges and criteria 
outlined above.
    (b) An employee selected for a supervisory position that is within 
the employee's current pay band may also be considered for a 
supervisory pay adjustment.
    (c) If a supervisor is already authorized a supervisory pay 
adjustment and is subsequently selected for another supervisory 
position, within the same pay band, then the supervisory pay adjustment 
will be redetermined.
    (d) An employee promoted to a supervisory position in a higher pay 
band may be considered for a supervisory adjustment in addition to the 
pay increase that resulted from the promotion.
    Supervisors, upon initial conversion into the demonstration project 
into the same, or substantially similar position, will be converted at 
their existing basic rate of pay and will not be given a supervisory 
pay adjustment at conversion.
    Before supervisory employees may receive the pay adjustment, they 
must sign a statement acknowledging that the entire adjustment will be 
immediately withdrawn if they are removed from the supervisory position 
because of unacceptable performance or conduct. Supervisory employees 
who are reassigned to a nonsupervisory position for any other reasons 
(i.e., employee choice, management directed reassignment, or RIF) will 
receive one-half of the pay adjustment for one year following the 
reassignment. Eliminations or reductions in supervisory pay adjustments 
are not adverse actions, are not subject to appeal, and are not covered 
under pay retention provisions.
5. Supervisory Pay Differentials
    Supervisory pay differentials may be used, at the discretion of the 
WES Director, to incentivize and reward supervisors in the Engineers 
and Scientists occupational family in pay bands IV and V whose pay is 
at the maximum rate of the pay band. Employees in pay band VI of the 
Engineers and Scientists occupational family are excluded from 
receiving supervisory pay differentials. Formal supervisory authority 
meeting that required for coverage under the OPM GS Supervisory Guide 
is required. A supervisory pay differential is a cash incentive, paid 
out on a pay period basis, which is not included as part of the 
supervisor's basic rate of pay. The differential may be up to 10 
percent of the supervisor's basic rate of pay. Criteria to be 
considered in determining the amount of this supervisory pay 
differential includes those identified for supervisory pay adjustments.
    Supervisors, upon initial conversion into the demonstration project 
into the same, or substantially similar position, will be converted at 
their existing basic rate of pay and will not be given a supervisory 
pay differential upon conversion. The differential will be terminated 
if the employee is removed from a supervisory position, regardless of 
cause.
    As specified in the Supervisory Pay Adjustment Section, all 
personnel actions involving a supervisory differential will require a 
statement signed by the employee acknowledging that the differential 
may be terminated or reduced at the discretion of the WES Director. The 
termination or reduction of the differential is not an adverse action, 
is not subject to appeal, and is not covered under pay retention 
provisions.

E. Hiring and Placement Authorities

1. Modified Term Appointments
    WES conducts many research and development projects that range from 
3 to 6 years. The current 4-year limitation on term appointments 
imposes a burden on laboratory managers by forcing the termination of 
some term employees prior to completion of projects they were hired to 
support. This disrupts the research and development process and reduces 
the ability of WES to serve its customers.
    Under the demonstration project, WES will have the authority to 
hire individuals under modified term appointments. These appointments 
will be used to fill positions for a period of more than 1 year but not 
more than 5 years when the need for employee's services is not 
permanent. The modified term appointments differ from term employment 
as described in 5 CFR part 316 in that they may be made for a period 
not to exceed 5, rather than 4 years. The WES Director is authorized to 
extend a term appointment 1 additional year.
    Employees hired under the modified term appointment authority may 
be eligible for conversion to career-conditional appointments. To be 
converted, the employee must: have been selected for the term position 
under competitive procedures, with the announcement specifically 
stating that the individual(s) selected may be eligible for conversion 
to a career-conditional appointment at a later date; have served 2 
years of continuous service in the term position; be selected under WES 
merit promotion procedures for the permanent position; and have a 
current performance score of 2.5 or better.
    Employees serving under term appointments at the time of conversion 
to the demonstration project will be converted to the new modified term 
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 performance 
score of 2.5 or better and are selected under merit promotion 
procedures for the permanent position after having completed 2 years of 
continuous service. Time served in term positions prior to conversion 
to the modified term appointment is creditable, provided the service 
was continuous. Employees serving under modified term appointments 
under this plan will be covered by the plan's pay-for-performance 
system.
2. Extended Probationary Period
    A new employee needs to demonstrate adequate contribution during 
all cycles of a research effort for a laboratory manager to render a 
thorough evaluation. The current 1-year probationary period will be 
extended to 2 years for all newly hired career employees in the 
Engineers and Scientists occupational family. The purpose of extending 
the probationary period is to allow supervisors an adequate period of 
time to fully evaluate an employee's contribution and conduct.
    Aside from extending the time period, all other features of the 
current probationary period, including the criteria for crediting prior 
service and the limited notice and appeal rights, are retained. The 
requirements for conversion to career tenure are unchanged. Employees 
appointed prior to the implementation date will not be affected.
    Probationary employees will be terminated when the employee fails 
to demonstrate proper conduct, technical competency, and/or adequate 
work contribution for continued employment. When WES decides to 
terminate an

[[Page 10476]]

employee serving a probationary period because their work contribution 
or conduct during this period fails to demonstrate their fitness or 
qualifications for continued employment, it shall terminate their 
services by written notification of the reasons for separation and the 
effective date of the action. The information in the notice as to why 
the employee is being terminated shall, as a minimum, consist of WES's 
conclusions as to the inadequacies of their work contribution or 
conduct.
3. Voluntary Emeritus Program
    Under the demonstration project, the WES Director will have the 
authority to offer retired or separated engineers and scientists 
voluntary assignments in the laboratory. This authority will include 
engineers and scientists who have retired or separated from Federal 
service. Voluntary Emeritus Program assignments are not considered 
``employment'' by the Federal Government (except for 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 higher paid individuals to accept retirement 
incentives with the opportunity to retain a presence in the scientific 
community. The program will be of most benefit during manpower 
reductions as senior engineers and scientists could accept retirement 
and return to provide valuable on-the-job training or mentoring to less 
experienced employees.
    To be accepted into the emeritus program, a volunteer must be 
recommended by a Laboratory Director to the WES Director. Everyone who 
applies is not entitled to a voluntary assignment. The WES Director 
must clearly document the decision process for each applicant (whether 
accepted or rejected) and retain the documentation.
    To ensure success and encourage participation, the volunteer's 
federal retirement pay (whether military or civilian) will not be 
affected while serving in a voluntary capacity. Retired or separated 
federal employees may accept an emeritus position without a waiting 
period.
    Volunteers will not be permitted to monitor contracts on behalf of 
the government or to participate on any contracts or solicitations 
where a conflict of interest exists. The same rules that currently 
apply to source selection members will apply to volunteers.
    An agreement will be established between the volunteer and WES. The 
agreement will be reviewed by the local Office of Counsel for ethics 
determinations under the Joint Ethics Regulation. 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 laboratory (travel, administrative, 
office space, supplies);
    (f) A one page Statement of Duties;
    (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 assignment will be managed by the laboratory while the 
volunteer is a member of the Voluntary Emeritus Program).

F. Employee Development

    The objective of the employee development program will be to 
develop the competence of employees for maximum achievement of 
Laboratory, MACOM, DA, and DoD goals. WES will continue its employee 
development programs, such as local training, off-site training, long-
term training, and developmental assignments. Under this Project, the 
opportunity to apply for expanded developmental opportunities to 
include sabbaticals and training for degrees, which was previously 
restricted, will be made available to permanent employees.
1. Sabbatical
    WES will have the authority to grant paid sabbaticals to career 
employees to permit them to engage in study or uncompensated work 
experience that will contribute to their development and effectiveness. 
Each sabbatical should benefit WES as well as increase the employee's 
individual effectiveness. Examples are as follows: advanced academic 
teaching, study, or research; self-directed (independent) or guided 
study; and on-the-job work experience with a public, private, or 
nonprofit organization. Each recipient of a sabbatical must sign a 
continued service agreement and agree to serve a period equal to at 
least three times the length of the sabbatical.
2. Degree Training
    Degree training is an essential component of an organization that 
requires continuous acquisition of advanced and specialized knowledge. 
Degree training in the academic environment of DoD laboratories is also 
a critical tool for recruiting and retaining employees with or 
requiring critical skills. Constraints under current law and regulation 
limit degree payment to shortage occupations. In addition, current 
government-wide regulations authorize payment for degrees based only on 
recruitment or retention needs. Degree payment is currently not 
permitted for non-shortage occupations involving critical skills.
    Under the Personnel Demonstration Project, WES will expand the 
authority to provide degree training for purposes of meeting critical 
skill requirements, to ensure continuous acquisition of advanced and 
specialized knowledge essential to the organization, and to recruit and 
retain personnel critical to the present and future requirements of the 
organization. It is expected that the degree payment authority will be 
used primarily for attainment of advanced degrees.

G. Reduction in Pay or Removal Actions

    Employees covered by the project will be evaluated under a 
performance evaluation system that affords grievance and/or appeal 
rights the same as those provided currently.
1. Unacceptable Performance
    An employee whose performance is unacceptable (i.e.,who does not 
perform at the acceptable level described by the standards for a 
particular critical element, and whose performance thus warrants a 
performance score of 0 on that element) at any time during the year 
shall be placed in a Performance Improvement Plan (PIP). If an employee 
is in a PIP at the end of a rating period, the performance rating will 
be delayed until the end of the PIP. Any General Schedule increase will 
be based on the rating at the end of the PIP. If performance remains 
unsatisfactory upon completion of the PIP, the employee will be 
separated from his or

[[Page 10477]]

her position or reduced to a lower pay band. If performance becomes 
satisfactory, the employee will receive a performance rating of record 
and appropriate adjustments to pay may be made at that time (i.e., 
granting General Schedule increase). These performance-based actions 
will follow the same procedures as current performance-related removals 
and reductions in grade under Chapter 43 or Chapter 75 when 
appropriate.
2. Placement in a Lower Pay Band
    An employee with an average performance score of less than 2.0 is 
ineligible for a performance pay increase or performance award and may 
receive either none or one-half the General Schedule pay increase. 
Because the minimum pay rate for each pay band will be increased each 
year by the amount of the General Schedule increase, it is possible 
that the new minimum rate of a pay band will exceed the basic pay of an 
employee in that band who did not receive the full General Schedule 
increase. In these cases, the employee will be moved to the next lower 
band level. This will not be considered an adverse action, will not be 
appealable through a statutory appeals process, and will not be covered 
under grade retention provisions.

H. Revised Reduction in Force (RIF) Procedures

    Modifications include limiting competitive areas to occupational 
families and increasing the emphasis on performance in the RIF process. 
These modifications will increase the probability of retaining the 
highest performing individuals in their positions and will increase the 
probability of displacing the lowest performing individuals.
1. Competitive Areas
    For RIF purposes, the competitive area will be the occupational 
family in which the employee is assigned and will cover all geographic 
locations.
2. Retention
    Retention registers will be established based on the following 
criteria listed in order of priority: Tenure status (Tenure I-career, 
Tenure II-career conditional, Tenure III-modified term); veteran's 
preference; most recent employee performance score; and service 
computation date. Modified term employees within the affected 
occupational family will be separated before permanent Tenure I and II 
employees. The present RIF system essentially remains in effect, except 
that performance scores are part of the retention order. Performance 
scores will not be used to adjust the service computation date. The 
service computation date will be used as a tie breaker. A preference 
eligible with a compensable service-connected disability of 30 percent 
or more may displace employees in positions equivalent to 5 GS grades 
below the minimum grade level of his/her current pay band. Other 
employees may displace employees in positions no more than two pay band 
levels below the minimum level of his/her current pay band. Increasing 
the emphasis on job performance will help ensure the retention of 
outstanding individuals in RIF situations.
    In some cases, an employee may not have a performance score of 
record. In these situations, a modal performance score will be 
assigned.
    An employee who has received a written decision to demote him/her 
to a lower pay band competes in a RIF from the position to which he/she 
has been demoted. Employees who have been demoted for unacceptable 
performance or conduct, and as of the date of issuance of the RIF 
notice have not received a performance score in the position to which 
demoted, will receive a modal performance score.
    An employee who has received an improved performance score 
following a PIP will have the improved performance score considered as 
the current performance score of record, provided that notification of 
such improvement is approved and received prior to the cutoff for 
receipt of personnel actions associated with implementation of RIF 
mechanics.
    An employee with a current rating of unsatisfactory has assignment 
rights only to a position held by another employee who has a rating of 
unsatisfactory. An employee who has been given a written decision of 
removal will not compete in the RIF process.
    Modified term appointment 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.
3. 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.

IV. Training

    The key to the success or failure of the proposed demonstration 
project will be the training provided for all involved. This training 
will 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 all participants. Training will be tailored to fit the 
requirements of every employee included in the project and will fully 
address employee concerns to ensure that everyone has a comprehensive 
understanding of the program.
    Training at the beginning of implementation and throughout the 
demonstration will be provided to supervisors, employees, and the 
administrative staff responsible for assisting managers in effecting 
the changeover and operation of the new system.
    The elements to be covered in the orientation portion of this 
training will include the following: A description of the system; how 
employees are converted into the system; pay adjustment process; 
familiarization with the new position descriptions and performance 
objectives; the individual performance rating process; the 
reconsideration process; and the demonstration project administrative 
and formal evaluation process.

A. Supervisors

    The focus of this project on management-centered personnel 
administration, with increased supervisory and managerial personnel 
management authority and accountability, demands thorough training of 
supervisors and managers in the knowledge and skills that will prepare 
them for their new responsibilities. Training will include detailed 
information on the policies and procedures of the demonstration 
project, skills training in using the classification system, position 
description preparation, and performance evaluation. Additional 
training may focus on nonproject procedural techniques such as 
interpersonal and communication skills.

B. Administrative Staff

    The administrative staff, generally personnel specialists, 
technicians, and administrative officers, will play a key role in 
advising, training, and coaching supervisors and employees in 
implementing the demonstration project. This staff will need training 
in the procedural and technical aspects of the project.

C. Employees

    WES will 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

[[Page 10478]]

of all project decisions, procedures, and processes.

V. Conversion

A. Conversion to the Demonstration Project

    Initial entry into the demonstration project for covered employees 
will be accomplished through a full employee protection approach that 
ensures each employee an initial place in the appropriate occupational 
family and pay band without loss of pay. An automatic conversion from 
current GS/GM grade and pay into the new broadbanding system will be 
accomplished.
    Special conversion rules will apply to special rate employees (see 
Section III, D, Pay Setting Provisions). Employees who enter the 
demonstration project later by lateral reassignment or transfer will be 
subject to the same pay conversion rules. Employees serving under 
regular term appointments at the time of project implementation will be 
converted to the modified term appointment. Position announcements, 
etc., will not be required for these term appointments. If conversion 
into the demonstration project is accompanied by a geographic move, the 
employee's GS pay entitlements in the new geographic area must be 
determined before performing the pay conversion.
    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 WES. In no case may those 
adjustments increase the pay for the position of record beyond the 
maximum pay rate for the applicable pay band. 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.
    At the time of conversion, each employee will have their basic pay 
adjusted for the time credited (in weeks) toward what would have been 
the employee's next within-grade increase. This adjustment in basic pay 
is applicable when employees are converted into the project.
    Any employee covered by the project that is located at a permanent 
duty station Outside the Continental United States will continue to be 
ineligible for locality pay. Except for the maximum rate of basic pay 
for pay band VI, which will be limited to rate of basic pay for SES 
level 4, the maximum basic salary payable in the pay band will be 
limited to the maximum rate of pay on the GS salary table which does 
not include any locality pay.

B. Conversion From the Demonstration Project

    If a demonstration project employee is moving to a 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 rate of pay to GS 
equivalent rates of pay. The converted GS grade and 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 rates of pay 
will become the employee's actual GS grade and rates of pay after 
leaving the demonstration project (before any other action). For 
transfers, promotions, and other actions, the converted GS grade and 
rates of pay will be used in applying any GS pay/administration rules 
applicable in connection with the employee's movement out of the 
project (i.e., promotion rules, highest previous rate rules, pay 
retention rules) as if the GS converted grade and rates of pay were 
actually in effect immediately before the employee left the 
demonstration project.
1. 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 or staffing 
supplement but excluding any supervisory pay adjustment) is compared 
with step 4 rates in the highest applicable GS rate range. For this 
purpose, a ``GS rate range'' includes a rate range in the GS base 
schedule, the locality rate schedule for the locality pay area in which 
the position is located, or 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 of pay is lower than 
the applicable step 4 rate of the highest grade, the adjusted rate of 
pay is compared with the step 4 rate of the second highest grade in the 
employee's pay band. If the employee's adjusted rate of pay 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 of pay 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 of pay 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 of pay 
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 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.
2. Pay-Setting Provisions
    An employee's pay within the converted GS grade is set by 
converting the employee's demonstration project rates of pay to GS 
rates 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 or staffing supplement but excluding 
any supervisory pay adjustment) is

[[Page 10479]]

converted to a GS adjusted rate of pay on the highest applicable GS 
rate range for the converted GS grade. For this purpose, a ``GS rate 
range'' includes a rate range in the GS base schedule, an applicable 
locality rate schedule, or 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 of pay is converted to a GS 
locality rate of pay. If this rate falls between two steps in the 
locality-adjusted schedule, the rate of pay must be set at the higher 
step. The converted GS unadjusted rate of basic pay would be the GS 
base rate corresponding to the converted GS locality rate (i.e., same 
step position). If this employee is also covered by a special rate 
schedule as a GS employee, the converted special rate will be 
determined based on the GS step position. This underlying special rate 
will be basic pay for certain purposes for which the employee's higher 
locality rate is not basic pay.
    (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).
3. Engineers and Scientists Pay Band VI Employees
    Employees in pay band VI of the Engineers and Scientists 
occupational family will convert out of the demonstration project at 
the GS-15 level. WES will develop a procedure to ensure that employees 
entering pay band VI 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 VI 
employees paid below the adjusted GS-15, step 10 rate, the converted 
rates will be set in accordance with paragraph 2 above.
4. Employees With Band or Pay Retention
    (a) If an employee is retaining a pay band level under the 
demonstration project, apply the procedures in paragraphs 1 and 2, 
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.
    (b) If an employee is retaining rate under the demonstration 
project, the employee's GS equivalent grade is the highest grade 
encompassed in his or her band level. WES 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.
5. Within-Grade Increase--Equivalent Increase Determinations
    Service under the demonstration project since the last pay-for-
performance determination 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).

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 the 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: permanent implementation; change and another 3-5 
year test period; or expiration.

VII. Evaluation Plan

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

[[Page 10480]]

the effectiveness of the various personnel system changes or 
interventions. Additional measures will be developed as new 
interventions are introduced or existing interventions modified with 
consistent with expected effects. Measures may also be deleted when 
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 on context variables that are likely to have an impact on 
project outcomes (e.g., HRM regionalization, downsizing, 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: 
workforce data; personnel office data; employee attitudes and feedback 
using surveys, structured interviews and focus groups; local activity 
histories, and core measures of laboratory effectiveness.

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 WES budget. The 
projected annual expenses for each area is summarized in Table 4.

                                     Table 4.--Projected Developmental Costs                                    
----------------------------------------------------------------------------------------------------------------
                                                  FY 96      FY 97      FY 98      FY 99      FY 00      FY 01  
----------------------------------------------------------------------------------------------------------------
Training......................................  .........       $97K       $19K  .........  .........  .........
Project Evaluation............................       $25K        60K        60K       $60K       $60K       $60K
Automation....................................        80K        10K  .........  .........  .........  .........
                                               -----------------------------------------------------------------
    Totals....................................       105K       167K        79K        60K        60K        60K
----------------------------------------------------------------------------------------------------------------

IX. Required Waivers to Law and Regulations

    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.

A. Waivers to Title 5, U.S. Code

    Section 3111, Acceptance of volunteer service.
    Section 3132, The Senior Executive Service; definitions and 
exclusions.
    Section 3324, Appointments to positions classified above GS-15.
    Section 3341, Details (to the extent that non-competitive details 
to higher band levels can now be 180 days rather than 120).
    Section 4107, Non-Government facilities; restrictions (to the 
extent that training may be paid for the purpose of an employee to 
obtain a degree).
    Section 4108, Employee agreements; service after training (to the 
extent that continued service is required only for long-term training 
and sabbaticals).
    Section 4303(f), Actions based on unacceptable performance (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).
    Sections 5101-5111, Purpose, definitions, basis, classification of 
positions, review, authority (to the extent that white collar employees 
will be covered by broadbanding. Pay category determination criteria 
for Federal Wage System positions remain unchanged).
    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 basic pay; 
and (3) employees in band VI of the Engineers and Scientists 
occupational family to be treated as ST employees for the purposes of 
these provisions).
    Section 5305, Special pay authority.
    Sections 5331-5336, General Schedule pay rates.
    Sections 5361-5366, Grade and pay retention (to the extent 
necessary to (1) replace ``grade'' with ``pay band'; (2) allow 
demonstration project employees to be treated as General Schedule; (3) 
provide that pay band retention provisions do not apply to movements to 
a lower pay band as a result of receiving no or only part of a general 
pay increase because of poor performance; (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, and to reductions in pay due solely to the removal of all or 
part of a supervisory pay adjustment upon leaving a supervisory 
position; (5) provide that an employee on pay retention whose 
performance rating is less than 2.0 is not entitled 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; and (6) ensure that for 
employees of pay band VI of the Engineers and Scientists 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 retained rate).
    Section 5545, Night, standby, irregular, and hazardous duty 
differential (to the extent necessary to allow demonstration project 
employees to be treated as General Schedule employees. This waiver does 
not apply to employees in band VI of the Engineers and Scientists 
occupational family).

[[Page 10481]]

    Sections 5753, 5754, and 5755, Recruitment and relocation bonuses, 
retention allowances, and supervisory differentials (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 band VI of the Engineers and Scientists 
occupational family to be treated as ST employees).
    Section 7512(3), Adverse actions (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 adverse 
action).
    Section 7512(4), Adverse actions (to the extent necessary to 
provide that adverse action provisions do not apply to: (1) Conversions 
from General Schedule special rates to demonstration project pay, as 
long as total pay is not reduced; and (2) reductions in pay due to 
removal of all or part of a supervisory adjustment).

B. Waivers to Title 5, Code of Federal Regulations

    Part 300.601-605, Time-in-grade restrictions (to the extent that 
time-in-grade restrictions are eliminated).
    Part 308.101-103, Volunteer service (to the extent that volunteer 
service is unrestricted).
    Parts 315.801(a) and 315.802(a), Length of probationary period (to 
the extent that the probationary period for engineers and scientists is 
increased to 2 years).
    Part 316.301, Term appointment (to the extent that modified term 
appointments may cover a maximum period of 6 years).
    Part 316.303, Tenure of term employees (to the extent that term 
employees may compete for permanent status through local merit 
promotion plans).
    Part 316.305, Eligibility for within grade increases.
    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, Retention standing, credit for performance (to the 
extent that service credit will not be modified based on performance 
rating).
    Part 351.701, Assignment involving displacement (to the extent that 
a performance score of 1 is substituted for level 2 and bumping and 
retreating will be limited to no more than 2 pay bands except for 30 
percent compensable veterans who can retreat to the equivalent of 5 GS 
grades).
    Part 410.308, Training to obtain an academic degree.
    Part 410.309, Agreements to continue in service. (To the extent 
necessary that individuals pursuing academic degrees do not sign 
service agreements.)
    Part 430.204, Definition of rating of record (to the extent 
necessary to allow ratings of record that do not cover performance over 
the entire appraisal period).
    Part 430.208(d), Summary levels (to the extent necessary to allow 
use of summary performance scores that are not further categorized into 
five or fewer summary levels).
    Part 432.104-105, Performance based reduction in grade and removal 
actions (to the extent that ``pay band'' is substituted for ``grade'' 
and reduction in band level as a result of non-receipt of General 
Schedule increases because of poor performance is not an adverse 
action.
    Part 511.101, 201-203, General provisions and coverage of the 
General Schedule (to the extent that positions are covered by 
broadbanding).
    Part 511.601-612, Classification appeals (to the extent that 
positions are covered by broadbanding).
    Part 530, subpart C, Special salary rates.
    Part 531, subparts B, D, and E, Determining the rate of basic pay, 
within-grade increases, and quality step increases.
    Part 531, subpart F, Locality-based comparability payments (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 band VI of the Engineer and Scientist occupational 
family to be treated as ST employees).
    Part 536, Grade and pay retention (to the extent necessary to: (1) 
Replace ``grade'' with ``pay band''; (2) provide that pay band 
retention provisions do not apply to movements to a lower pay band as a 
result of receiving no or only part of a general pay increase because 
of poor performance; (3) provide that pay retention provisions do not 
apply to conversions from General Schedule special rates to 
demonstration project pay, as long as total pay is not reduced, and to 
reductions in pay due solely to the removal of all or part of a 
supervisory pay adjustment upon leaving a supervisory position; (4) 
provide than an employee on pay retention whose performance rating is 
less than 2.0 is not entitled 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 and (5) ensure that for employees in pay band 
VI of the Engineers and Scientists 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 
retained rate).
    Part 550.703, Severance pay (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, definition of 
``employee'' (to the extent necessary to allow demonstration project 
employees to be treated as General Schedule employees. This waiver does 
not apply to employees in band VI of the Engineers and Scientists 
occupational family).
    Part 575, subparts A, B, C, and D, Recruitment bonuses, relocation 
bonuses, retention allowances and supervisory differentials (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 band VI 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 provision is waived only 
to the extent necessary to (1) substitute ``pay band'' for ``grade'' 
and (2) provide that moving 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 adverse action.
    Part 752.401 (a)(4), Adverse actions (to the extent necessary to 
provide that adverse action provisions do not apply to: (1) Conversions 
from General Schedule special rates to demonstration project pay, as 
long as total pay is not reduced; and (2) reductions in pay due to the 
removal of all or part of a supervisory adjustment).

[[Page 10482]]



                            Appendix A--Intervention Impact Model: Project Evaluation                           
----------------------------------------------------------------------------------------------------------------
           Intervention                 Expected effects              Measures                Data sources      
----------------------------------------------------------------------------------------------------------------
1. Broadbanding:                                                                                                
     a. Pay Bands................  --Less difficulty and      --Perceptions of          --Focus groups.         
                                    less time spent on         difficulty and time      --Attitude survey.      
                                    classification.            spent on classification  --Personnel activity    
                                                               activities by managers    reports.               
                                                               and personnelists.                               
                                   --Increased understanding  --Perceptions of          --Focus groups.         
                                    with the classification    satisfaction with        --Attitude survey.      
                                    results under the new      classification process.                          
                                    system.                                                                     
    b. Occupational Families.....  --Increased satisfaction   --Perceptions of          --Focus groups.         
                                    with advancement           satisfaction with        --Attitude survey.      
                                    potential.                 career path process and                          
                                                               progression.                                     
                                   --Increase in management   --Perception of           --Attitude survey.      
                                    authority.                 authority.                                       
    c. Conversion of Employees to  --Employee acceptance....  --Perception of equity    --Attitude survey.      
     the Demonstration Project.                                and fairness.                                    
2. Classification:                                                                                              
    a. Classification Standards..  --Less difficulty and      --Perceptions of          --Focus groups.         
                                    less time spent on         difficulty and time      --Attitude survey.      
                                    classification; less       spent on classification  --Personnel activity    
                                    difficulty classifying     activities by managers    reports.               
                                    jobs.                      and personnelists.                               
                                   --Increased satisfaction   --Perceptions of          --Focus groups.         
                                    with the classification    satisfaction with        --Attitude survey.      
                                    results under the new      classification process.                          
                                    system.                                                                     
    b. Position Descriptions and   --Less difficulty and      --Perceptions of          --Focus groups.         
     Classification Process.        less time spent on         difficulty and time      --Attitude survey.      
                                    classification by          spent on classification  --Personnel activity    
                                    managers.                  activities by managers    reports.               
                                                               and personnelists.                               
                                   --Fewer position           --Reduced time to         --Attitude survey.      
                                    descriptions.              develop position         --Personnel activity    
                                                               descriptions.             reports.               
                                   --Increased satisfaction   --Perceptions of          --Focus groups.         
                                    with the classification    satisfaction with        --Attitude survey.      
                                    results under the new      classification process.                          
                                    system.                                                                     
                                   --Development of generic   --Implementation of       --Personnel activity    
                                    classification standards.  generic standards.        reports.               
3. Pay for Performance:                                                                                         
    a. Supervisory Pay             --Reward top performers    --Attitudes of            --WES workforce data.   
     Adjustments and                who take supervisory and   supervisors and          --Attitude survey.      
     Differentials.                 managerial assignments.    managers with pay.                               
    b. Promotion Link............  --Promotions based on      --Probability of          --WES workforce data.   
                                    individual's performance.  promotion for high       --Attitude survey.      
                                                               performers.                                      
    c. Link Between Performance    --Stronger link between    --Pay for performance     --WES workforce data.   
     and Pay.                       performance and pay.       correlations.            --Attitude survey.      
                                                              --Perception of pay for                           
                                                               performance link.                                
                                   --Improve retention of     --Employee perception of  --Attitude survey.      
                                    high performers.           equality.                                        
                                   --Increase turnover among  --Turnover rates by       --WES workforce data.   
                                    low performers.            performance over time.                           
                                   --Increase in supervisory  --Supervisors perception  --Attitude survey.      
                                    decision making            of pay for performance                           
                                    authority accountability.  link.                                            
                                   --Increase pay             --Employees perception    --Attitude survey.      
                                    satisfaction.              of pay for performance                           
                                                               link.                                            
    d. Awards....................  --Reward/motivate          --Perceived motivational  --Attitude survey.      
                                    performance.               power.                                           
                                   --To support fair and      --Amount and number of    --WES workforce data.   
                                    appropriate distribution   awards by occupational                           
                                    of awards.                 family, demographics.                            
                                                              --Perceived fairness of   --Attitude survey.      
                                                               awards.                                          
                                                              --Satisfaction with       --Attitude survey.      
                                                               monetary awards.                                 
4. Hiring and Placement:                                                                                        
    a. Hiring Authority..........  --Reduction in time to     --Time lag from           --WES workforce data    
                                    hire.                      announcement to date.     hiring log.            
                                   --Improve rate of job      --Offer acceptance rate.  --WES workforce data    
                                    offers/acceptance.                                   hiring log.            
                                   --Improve image as         --Offer acceptance rate.  --Managers' and         
                                    interested caring                                    supervisors' documented
                                    employer.                                            experience.            
    b. Modified Term Appointments  --Decrease in hiring       --Better qualified        --WES workforce data.   
                                    authorities.               candidates within the                            
                                                               temporary workforce.                             
    c. Extended Probationary       --Provide managers time    --Managers perception of  --Attitude survey.      
     Period.                        to accurately identify     new hires success.                               
                                    successful employees.                                                       

[[Page 10483]]

                                                                                                                
                                                              --New hires performance   --WES workforce data.   
                                                               ratings.                                         
                                   --Increase in length of    --Pre and post            --WES workforce data.   
                                    probation for engineers    comparison of length of                          
                                    and scientists.            probation.                                       
                                   --Increase in voluntary    --Comparison of           --WES workforce data.   
                                    (in lieu of adverse        voluntary/involuntary                            
                                    action) and involuntary    turnover rates for low                           
                                    turnover of low            performers during                                
                                    performers during          probation period.                                
                                    probation.                                                                  
5. Employee Development:                                                                                        
    a. Sabbaticals...............  --Increase development of  --Perception of fairness  --Attitude survey.      
                                    employees.                 in career development.   --Documented experience 
                                   --Use of sabbaticals for                              of managers and        
                                    career development.                                  supervisors.           
    b. Degree Training...........  --Increase development of  --Perception of fairness  --Attitude survey.      
                                    employees.                 in career development.                           
6. Reduction-In-Force:                                                                                          
    Modified RIF.................  --Retention of high        --Evaluation rating vs    --WES workforce data.   
                                    performers.                RIF turnover.            --Historical WES data.  
                                                                                        --Historical RIF data   
                                                                                         from other Army        
                                                                                         Laboratories.          
                                   --Reduce disruption to     --Attitudes on a RIF      --Attitude survey.      
                                    the workforce by           action.                                          
                                    limiting RIF to                                                             
                                    occupational family.                                                        
7. 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.             satisfaction.                                    
                                   --Improved planning......  --Planning procedures...  --Strategic planning    
                                                                                         documents.             
                                   --Improved cross           --Perceived               --Organizational charts.
                                    functional coordination.   effectiveness of                                 
                                                               planning procedures.                             
                                                              --Actual perceived                                
                                                               coordination.                                    
                                   --Increased product        --Customer satisfaction.  --Attitude survey.      
                                    success.                                            --Customer satisfaction 
                                                                                         surveys.               
----------------------------------------------------------------------------------------------------------------

[FR Doc. 98-5425 Filed 3-2-98; 8:45 am]
BILLING CODE 6325-01-P