[Federal Register Volume 64, Number 47 (Thursday, March 11, 1999)]
[Notices]
[Pages 12216-12217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6031]



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Part II





Office of Personnel Management





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Science and Technology Laboratory Personnel Management Demonstration 
Project: the Army Engineer Research and Development Center (ERDC); the 
Army Missile Research, Development, and Engineering Center (MRDEC); and 
the Army Aviation Research, Development, and Engineering Center 
(AVRDEC); Notice

  Federal Register / Vol. 64, No. 47 / Thursday, March 11, 1999 / 
Notices  

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OFFICE OF PERSONNEL MANAGEMENT


Science and Technology Laboratory Personnel Management 
Demonstration Project: the Army Engineer Research and Development 
Center (ERDC); the Army Missile Research, Development, and Engineering 
Center (MRDEC); and the Army Aviation Research, Development, and 
Engineering Center (AVRDEC)

AGENCY: Office of Personnel Management.

ACTION: Notice of amendment of three demonstration project plans and 
inclusion of competitive examining and Distinguished Scholastic 
Achievement Appointment authorities (See 5 CFR 470.315). Clarification 
of plans regarding OPM's approval of the plans' performance appraisal 
systems.

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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 at DoD Science and Technology (S&T) Reinvention 
Laboratories. This notice identifies the competitive examining and 
Distinguished Scholastic Achievement Appointment authorities for three 
Army laboratories: ERDC, MRDEC, and AVRDEC. Additionally, this notice 
makes explicit the intent of the demonstration projects regarding OPM 
approval of the performance appraisal systems already contained in the 
project plans.

DATES: This amendment to the demonstration projects may be implemented 
at the Army laboratories beginning on the date of publication of this 
notice.

FOR FURTHER INFORMATION CONTACT:
    ERDC: 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.
    MRDEC: Ms. Lana Hargrove, Acting Special Assistant for Laboratory 
Management, Missile Research, Development, and Engineering Center, U.S. 
Army Aviation and Missile Command, ATTN: AMSAM-RD, Redstone Arsenal, 
Alabama 35898-5000, phone 256-955-6734.
    AVRDEC: Mr. Dave Knepper, Aviation Research, Development, and 
Engineering Center, U.S. Army Aviation and Missile Command, ATTN: 
AMSAM-AR-Z, Redstone Arsenal, Alabama 35898-5000, phone 256-313-4895.
    OPM: Ms. Fidelma A. Donahue, U.S. Office of Personnel Management, 
1900 E Street, N.W., Room 7460, Washington, D.C. 20415, phone 202-606-
1138.

SUPPLEMENTARY INFORMATION:

1. Background

    OPM approved and published final plans in the Federal Register for 
the following Science and Technology Reinvention Laboratory Personnel 
Management Demonstration Projects:
    A. Waterways Experiment Station (WES) final publication on Tuesday, 
March 3, 1998, Volume 63, Number 41, Part IV.
    WES correction and re-publication on Wednesday, March 25, 1998, 
Volume 63, Number 57, Part V.
    Publication of WES expansion amendment to include Construction 
Engineering
    Research Laboratory (CERL), Cold Regions Research and Engineering
    Laboratory (CRREL), and Topographic Engineering Center (TEC) 
published on Friday, October 16, 1998, Volume 63, Number 200, Part V.

    Note: The WES demonstration project was renamed the ERDC 
demonstration project following consolidation of the Army Corps of 
Engineers' laboratories.

    B. MRDEC final publication on Friday, June 27, 1997, Volume 62, 
Number 124, Part IV.
    C. AVRDEC final publication on Friday, June 27, 1997, Volume 62, 
Number 124, Part V.
    The demonstration projects involved simplified job classification, 
pay banding, performance-based compensation systems, employee 
development provisions, and modified reduction-in-force procedures.

2. Overview

    At the beginning of the projects, when asked what the laboratories 
would like to change in the existing personnel management system, 
managers at all three laboratories overwhelmingly said, ``Speed up the 
hiring process and allow us to hire the best people.'' The project 
development teams at each laboratory included such initiatives in 
earlier versions of the demonstration project plans. However, the 
initiatives were not included in any of the Army's Federal Register 
notices mentioned above. The Army laboratories require a process which 
will allow for the rapid filling of vacancies, is less labor intensive, 
and is responsive to their needs.

    Dated: March 2, 1999.

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

I. Executive Summary

    The Department of the Army established the personnel management 
demonstration projects to be generally similar to the system in use at 
the Navy personnel demonstration project known as China Lake. The 
projects and this amendment were 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

    The demonstration projects at the three Army laboratories attempt 
to provide managers, at the lowest practical level, the authority and 
flexibility needed to achieve quality laboratories and quality 
products. The purpose of this amendment is to allow the Army 
laboratories to compete more effectively for high quality personnel and 
strengthen the manager's role in personnel management. Restructuring 
the examining process and providing an authority to appoint candidates 
meeting distinguished scholastic achievements will help meet the 
purpose of this amendment and the goals of the demonstration projects. 
Other basic provisions of the approved plans are unchanged.

III. Personnel System Changes

A. Competitive Examining Authority

1. Coverage
    The Army laboratories propose to demonstrate a streamlined 
examining process for both permanent and non-permanent positions. This 
authority will apply to all positions covered by the respective 
demonstration projects with the exception of positions in the Senior 
Executive Service, Senior Level (ST/SL) positions, the Executive 
Assignment System or positions of Administrative Law Judge, and any 
examining process covered by court order. This authority will include 
the coordination of recruitment and public notices, the administration 
of the examining process, the administration of veterans' preference, 
the certification of candidates, and selection and

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appointment consistent with merit principles.
2. Description of Examining Process
    The primary change in the examining process to be demonstrated is 
the grouping of eligible candidates into three quality groups using 
numerical scores and the elimination of consideration according to the 
``rule of three.''
    For each candidate, minimum qualifications will be determined using 
OPM's operating manual, ``Qualification Standards Handbook for General 
Schedule Positions,'' including any selective placement factors 
identified for the position. Candidates who meet basic (minimum) 
qualifications will be further evaluated based on knowledge, skills, 
and abilities which are directly linked to the position(s) to be 
filled. Based on this assessment, candidates will receive a numerical 
score of 70, 80, or 90. No intermediate scores will be granted except 
for those eligibles who are entitled to veterans' preference. 
Preference eligibles meeting basic (minimum) qualifications will 
receive an additional 5 or 10 points (depending on their preference 
eligibility) which is added to the minimum scores identified above. 
Candidates will be placed in one of three quality groups based on their 
numerical score, including any veterans' preference points: Basically 
Qualified (score of 70 and above), Highly Qualified (score of 80 and 
above), or Superior (score of 90 and above). The names of preference 
eligibles shall be entered ahead of others having the same numerical 
rating.
    For engineering/scientific and professional positions at the 
equivalent of GS-9 and above, candidates will be referred by quality 
groups in the order of the numerical ratings, including any veterans' 
preference points. For all other positions, i.e., other than 
engineering/scientific and professional positions at the equivalent of 
GS-9 and above, preference eligibles with a compensable service-
connected disability of 10 percent or more who meet basic (minimum) 
eligibility will be listed at the top of the highest group certified.
    In making their selections, selecting officials should be provided 
with a reasonable number of qualified candidates from which to choose. 
All candidates in the highest group will be certified. If there is an 
insufficient number of candidates in the highest group, candidates in 
the next lower group may then be certified. Should this process not 
yield a sufficient number, groups will be certified sequentially until 
a selection is made or the qualified pool is exhausted. When two or 
more groups are certified, candidates will be identified by quality 
group (i.e., Superior, Highly Qualified, Basically Qualified) in the 
order of their numerical scores. In making selections, to pass over any 
preference eligible(s) in order to select a nonpreference eligible 
requires approval under current pass-over or objection procedures.

B. Distinguished Scholastic Achievement Appointment

    The Army laboratories further propose to establish a Distinguished 
Scholastic Achievement Appointment using an alternative examining 
process which provides the authority to appoint undergraduates and 
graduates through the doctoral level to professional positions at the 
equivalent of GS-7 through GS-11, and GS-12 positions.
    At the undergraduate level, candidates may be appointed to 
positions at a pay level no greater than the equivalent of GS-7, step 
10, provided that: they meet the minimum standards for the position as 
published in OPM's operating manual, ``Qualification Standards for 
General Schedule Positions,'' plus any selective factors stated in the 
vacancy announcement; the occupation has a positive education 
requirement; and the candidate has a cumulative grade point average of 
3.5 or better (on a 4.0 scale) in those courses in those fields of 
study that are specified in the Qualifications Standards for the 
occupational series.
    Appointments may also be made at the equivalent of GS-9 through GS-
12 on the basis of graduate education and/or experience for those 
candidates with a grade point average of 3.5 or better (on a 4.0 scale) 
for graduate level courses in the field of study required for the 
occupation.
    Veterans' preference procedures will apply when selecting 
candidates under this authority. Preference eligibles who meet the 
above criteria will be considered ahead of nonpreference eligibles. In 
making selections, to pass over any preference eligible(s) to select a 
nonpreference eligible requires approval under current pass-over or 
objection procedures. Priority must also be given to displaced 
employees as may be specified in OPM and DoD regulations.
    Distinguished Scholastic Achievement Appointments will enable the 
Army laboratories to respond quickly to hiring needs with eminently 
qualified candidates possessing distinguished scholastic achievements.

IV. 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 amendment of the 
demonstration projects. Additional waivers in the area of performance 
management make explicit the intent of the demonstration projects 
regarding OPM approval of the performance appraisal systems already 
contained in the project plans.

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

    Section 3317(a), Competitive Service; certification from registers 
(insofar as ``rule of three'' is eliminated under the demonstration 
projects).
    Section 3318(a), Competitive Service; selection from certificates 
(insofar as ``rule of three'' is eliminated under the demonstration 
projects).

B. Waivers to Title 5, Code of Federal Regulations

    Part 332.401 (b), Only to the extent that for non-professional or 
non-scientific positions equivalent to GS-9 and above, preference 
eligibles with a compensable service-connected disability of 10 percent 
or more who meet basic (minimum) qualification requirements will be 
entered at the top of the highest group certified without the need for 
further assessment.
    Part 332.402, ``Rule of three'' will not be used in the 
demonstration projects.
    Part 332.404, Order of selection is not limited to highest three 
eligibles.
    Part 430.210, (For ERDC only; inasmuch as OPM approval of the final 
demonstration project plans enumerated in paragraph 1 of the 
``Supplementary Information,'' above, also constitutes OPM approval of 
the performance appraisal systems contained in those plans.) Note that 
this waiver applies only to the ERDC plan; AVRDEC and MRDEC previously 
waived all of 5 CFR 430, Subpart B, which contains this provision.

[FR Doc. 99-6031 Filed 3-10-99; 8:45 am]
BILLING CODE 6325-01-U