[Federal Register Volume 65, Number 14 (Friday, January 21, 2000)]
[Notices]
[Pages 3500-3501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1341]


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OFFICE OF PERSONNEL MANAGEMENT


Science and Technology Laboratory Personnel Management 
Demonstration Project, Department of the Army, Army Research Laboratory 
(ARL)

AGENCY:  Office of Personnel Management (OPM).

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

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SUMMARY:  5 U.S.C. 4703 authorizes the 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 the 
ARL. Additionally, this notice makes explicit the intent of the 
demonstration project regarding OPM approval of the performance 
appraisal system already contained in the project plan.

DATES:  This amendment to the demonstration project may be implemented 
at the ARL beginning on the date of publication of this notice.

FOR FURTHER INFORMATION CONTACT:
     ARL: Mr. Jack R. Wilson, II, U.S. Army Research Laboratory, ATTN: 
AMSRL-CS-HR, 2800 Powder Mill Road, Adelphi, MD 20783-1197, phone 301-
394-1105.
    OPM: Mr. Gary Hacker, U.S. Office of Personnel Management, ATTN: 
OP-OMSOE, 1900 E Street, NW, Room 7460, Washington, DC 20415, phone 
202-606-2820.

SUPPLEMENTARY INFORMATION:

1. Background

    OPM approved and published the final plan in the Federal Register 
for the S&T Reinvention Laboratory Personnel Management Demonstration 
Project at the ARL on Wednesday, March 4, 1998, Volume 63, Number 42, 
Part II, with a correction published Thursday, March 19, 1998, Volume 
63, Number 53, page 13458.
    The demonstration project involves simplified job classification, 
pay banding, a performance-based compensation system, employee 
development provisions, and modified reduction-in-force procedures.

2. Overview

    At the beginning of the project, when asked what they would like to 
change in the existing personnel management system, managers at the 
laboratory overwhelmingly said, ``Speed up the hiring process and allow 
us to hire the best people.'' The project development team at the 
laboratory included such initiatives in earlier versions of the 
demonstration project plan. However, the initiatives were not included 
in ARL's Federal Register notice referenced above. The ARL requires a 
process which will allow for the rapid filling of vacancies, is less 
labor intensive, and is responsive to its needs.

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

I. Executive Summary

    The Department of the Army established the personnel management 
demonstration project to be generally similar to the system in use at 
the Navy personnel demonstration project known as China Lake. The 
project 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 project at the ARL attempts to provide managers, 
at the lowest practical level, the authority and flexibility needed to 
achieve a quality laboratory and quality products. The purpose of this 
amendment is to allow the ARL 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 project. Other basic provisions of the approved 
plan are unchanged.

III. Personnel System Changes

A. Competitive Examining Authority

1. Coverage
    ARL proposes to demonstrate a streamlined examining process for 
both permanent and non-permanent positions. This authority will apply 
to all positions covered by the demonstration project 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 appointment consistent with merit 
principles. ARL's implementing instructions will detail when this 
alternative examining process will be used versus the traditional 
examining process.
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

[[Page 3501]]

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

    ARL further proposes 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 
ARL 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 project. Additional waivers in the area of performance 
management make explicit the intent of the demonstration project 
regarding OPM approval of the performance appraisal system already 
contained in the project plan.

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 
project).
    Section 3318(a), Competitive Service; selection from certificates 
(insofar as ``rule of three'' is eliminated under the demonstration 
project).
    Section 4304(b)(1) and (3), Inasmuch as OPM approval of the final 
demonstration project plan enumerated in paragraph 1 of the 
SUPPLEMENTARY INFORMATION, above, also constitutes OPM approval of the 
performance appraisal system contained in that plan.

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 project.
    Part 332.404, Order of selection is not limited to highest three 
eligibles.
    Part 430.210, Inasmuch as OPM approval of the final demonstration 
project plan enumerated in paragraph 1 of the SUPPLEMENTARY 
INFORMATION, above, also constitutes OPM approval of the performance 
appraisal system contained in that plan.

[FR Doc. 00-1341 Filed 1-20-00; 8:45 am]
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