[Federal Register Volume 65, Number 14 (Friday, January 21, 2000)]
[Notices]
[Pages 3498-3500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1342]


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

OFFICE OF PERSONNEL MANAGEMENT


Laboratory Personnel Management Demonstration Project: Department 
of the Air Force

AGENCY:  Office of Personnel Management.

ACTION:  Notice of change in demonstration project procedures.

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

SUMMARY:  Title VI of the Civil Service Reform Act, 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 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 Air Force implemented its demonstration project on 
March 2, 1997, which covers its

[[Page 3499]]

reinvention laboratory, the Air Force Research Laboratory (AFRL).

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

FOR FURTHER INFORMATION CONTACT:  AFRL Ms. Michelle Neuner, AFRL/HR, 
1864 4th Street, Suite 1, Wright Patterson AFB, Ohio 45433-7131, 937-
904-9600. OPM Mr. John Andre, U.S. Office of Personnel Management, 1900 
E Street, NW, Room 7460, Washington DC 20415, 202-606-2820.

SUPPLEMENTARY INFORMATION:

1. Background

    On November 27, 1996, OPM published in the Federal Register (61 FR 
60400) the approval to conduct a demonstration project in the 
Department of the Air Force. The AFRL demonstration project involves 
simplified job classifications, two types of appointment authorities, 
an extended probationary period, pay banding, and a contribution-based 
compensation system (CCS).

2. Overview

    The final plan outlined in the November 27, 1996 Federal Register 
stated that the extended probationary period would ``apply to non-
status hires'' and went on to state that it would ``apply to new hires 
or those who do not have reemployment or reinstatement rights.'' These 
statements are somewhat contradictory in that a ``new hire'' could also 
include a ``status hire'' appointed from a register, which requires a 
probationary period. This notice clarifies probationary period 
requirements.
    Experience through two cycles under the CCS has shown that changes 
are needed to provide the ability to assign an overall CCS score up to 
5.25 and to pay a CCS bonus to level IV employees who are subject to 
the GS-15, step 10 pay cap. This notice changes the maximum assignable 
overall score and establishes eligibility for the CCS bonus.
    In order to clarify the proper application of broadband level 
descriptor ``Cooperation and Supervision'' and CCS Factor 6 
``Cooperation and Supervision,'' the name is being changed to 
``Teamwork and Leadership.'' This notice implements the name change.

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

I. Executive Summary

    The Department of the Air Force established the Air Force 
Laboratory Personnel Management Demonstration Project to be generally 
similar to the system in use at the Navy Personnel Demonstration 
Project known as China Lake. The Air Force project was built upon the 
concept of a contribution-based compensation system, two appointing 
authorities, extended probationary period, simplified classification 
procedures delegated to the AFRL Commander, and pay banding.

II. Introduction

Purpose

    The purpose of this notice is to clarify which employees are 
subject to the extended probationary period; provide the CCS bonus to 
eligible employees subject to the GS-15, step 10 pay cap; and change 
the name of broadband level descriptor ``Cooperation and Supervision'' 
and CCS Factor 6 ``Cooperation and Supervision'' to ``Teamwork and 
Leadership.'' No other changes are made to the sections referred to 
herein. Pursuant to 5 CFR 470.315, the changes are hereby made to the 
Federal Register, Part V, Laboratory Personnel Management Demonstration 
Project; Department of the Air Force; Notice, Volume 61, Number 230, 
pages 60400-60424 Wednesday, November 27, 1996; Section III.A.3, 
Section III.C.2, and Sections III.D.1, 3, and 5 as outlined in the 
following paragraphs.

III. Personnel System Changes

A. Hiring and Appointment Authorities

    Change Section III.A.3, Extended Probationary Period, by replacing 
it in its entirety as follows:

    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 one year probationary period will 
be extended to three years for all newly hired regular career 
employees. 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. The three-year probationary 
period will apply to individuals required to serve a probationary 
period as described in 5 CFR 315.801 with the exception that current 
Federal employees who enter the demonstration project while serving 
a probationary period are required only to complete one year of 
probation. Prior Federal civilian service counts toward completion 
of probation when the service meets the criteria specified in 5 CFR 
315.802.
    Aside from extending the time period, all other features of the 
current probationary period are retained including the potential to 
remove an employee without providing the full substantive and 
procedural rights afforded a non-probationary employee. Any employee 
appointed prior to the implementation date will not be affected. 
Participants in the Palace Knight and Senior Knight programs are not 
included in the demonstration project until they reassign from their 
Air Force Personnel Center (AFPC) authorization/position to an AFRL 
manpower authorization/position. Once placed on the demonstration 
project position, Palace Knights and Senior Knights who were 
appointed to AFPC rolls after the implementation of the 
Demonstration Project must complete three years of directly 
supervised employment in the laboratory to complete the probationary 
period. Those appointed to AFPC rolls prior to implementation are 
subject to the original probationary period, as defined under the 
terms of employment. Time spent at school does not count toward 
fulfilling the probationary requirement.
    Probationary employees will be terminated when the employee 
fails to demonstrate proper conduct, technical competence, and/or 
adequate contribution for continued employment. In terminating 
probationary employees, AFRL will provide employees with written 
notification of the reasons for their separation and provide the 
effective date of the action.

B. Classification

    Change Section III.C.2, Classification Standards, by replacing all 
references to ``Cooperation and Supervision'' with ``Teamwork and 
Leadership.''

C. Contribution-Based Compensation System

    1. Change Section III.D.1, Overview, by replacing all references to 
``Cooperation and Supervision'' with ``Teamwork and Leadership.''
    2. Change Section III.D.3, The CCS Assessment Process, by replacing 
the third paragraph in its entirety as follows:

    Factor scores are then averaged to give an overall CCS score. 
The broadband is well defined for overall CCS scores from 1.0 to 
5.25. Differing degrees of ``exceeded'' or ``failed'' contributions, 
reflective of overall CCS scores outside this range, have no impact 
on CCS payouts. The maximum expected overall CCS score for the 
broadband level IV is set at 5.25 to be consistent with the maximum 
expected overall CCS scores for other broadband levels (4.25 for 
broadband level III, 3.25 for broadband level II, and 2.25 for 
broadband level I). Therefore, when the average of CCS factor scores 
exceeds 5.25, the overall CCS score will be set to 5.25 with the 
individual identified to upper management as having exceeded the 
maximum contribution defined by the broadband. Employees with an 
overall CCS score below 1.0 are automatically deemed to be above the 
upper rail for purposes of CCS assessment and associated salary 
adjustments.

    3. Change Section III.D.5, Salary Adjustment Guidelines, by 
replacing the third paragraph in its entirety as follows:


[[Page 3500]]


    Employees whose CCS score would result in awarding of ``I'' 
money such that the salary exceeds the maximum salary for broadband 
level II would be eligible for one of the following: movement into 
level III if a high grade allocation exists (section III D 6), or 
salary adjustment to the maximum salary in level II and a ``bonus'' 
payout of the additional ``I'' funds warranted by the assessment. 
Employees whose CCS score would result in awarding of ``I'' money 
such that the salary exceeds the maximum salary for broadband level 
IV will receive salary adjustment to the maximum salary in level IV 
and a ``bonus'' payout of the additional ``I'' funds warranted by 
the assessment. This bonus payment will not permanently increase 
base salary.

[FR Doc. 00-1342 Filed 1-20-00; 8:45 am]
BILLIING CODE 6325-01-U