[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Notices]
[Pages 52453-52456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22004]


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OFFICE OF PERSONNEL MANAGEMENT


Science and Technology (S&T) Reinvention Laboratory Personnel 
Demonstration Project, Department of the Navy, Naval Sea Systems 
Command Warfare Centers

AGENCY: Office of Personnel Management (OPM).

ACTION: Notice of amendment of a demonstration project plan to 
establish a new category of positions designated as Senior Scientific 
Technical Manager (SSTM).

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SUMMARY: 5 U.S.C. 4703 authorizes OPM to conduct demonstration projects 
that experiment with new and different personnel management concepts to 
determine whether such changes in personnel policy or procedures would 
result in improved Federal personnel management.
    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 S&T reinvention laboratories. The Warfare 
Centers commenced implementation of their demonstration project on 
March 15, 1998.

DATES: The Warfare Centers may implement this amendment to the 
personnel demonstration project beginning on August 29, 2000.

FOR FURTHER INFORMATION CONTACT:
    Warfare Centers: Vicki Warner, NSWC/NUWC Demonstration Project 
Office, NSWCDD, HR Department, 17320 Dahlgren Road, Dahlgren, VA 22448, 
phone 540-653-8507.
    OPM: Joan Jorgenson, U.S. Office of Personnel Management, 1900 E 
Street NW, Room 7458, Washington, DC 20415, phone 202-606-1315.

SUPPLEMENTARY INFORMATION:

1. Background

    On Wednesday, December 3, 1997, OPM approved and published in the 
Federal Register (Volume 62, Number 232, Part II) the final plan for 
the S&T Reinvention Laboratory Personnel Demonstration Project at the 
Naval Sea Systems Command Warfare Centers.

[[Page 52454]]

Additionally, on Wednesday, July 21, 1999, OPM approved and published 
in the Federal Register (Volume 64, Number 139, pages 39179-39181) an 
amendment to the plan.
    The demonstration project involves a simplified classification 
system, performance development and incentive pay systems, a 
streamlined reduction-in-force system, and a simplified examining and 
appointment process.

2. Overview

    From the initial development of their personnel demonstration 
project concept plan, the Warfare Centers have had, as a principal 
objective, the establishment of a flexible classification and 
compensation system. Consistent with numerous independent studies of 
laboratory effectiveness over the last several decades, such a system 
is considered essential to recruiting and retaining a world-class 
workforce. The project plan published on December 3, 1997, largely 
meets that objective. However, it falls short of addressing a 
relatively small, but critical, element of the Warfare Centers' 
scientific and engineering workforce, i.e., employees with 
responsibilities substantially exceeding the GS-15 classification 
criteria and not otherwise appropriately designated as Senior Level 
(SL) or Scientific and Professional (ST). The Warfare Centers intend to 
resolve this deficiency by amending the project plan to recognize a new 
category of positions, Senior Scientific Technical Manager (SSTM).

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

I. Executive Summary

    The Department of the Navy (DON) established the Naval Sea Systems 
Command Warfare Centers personnel demonstration project to be generally 
similar to the system in use by the permanent demonstration project at 
the Naval Command, Control, and Ocean Surveillance Center, San Diego, 
CA and the Naval Air Warfare Center, Weapons Division, China Lake, CA 
(commonly called ``the China Lake demonstration project''). The Warfare 
Centers demonstration project and this amendment are designed to 
promote the overall goal of implementing a human resources management 
system that facilitates mission execution and organizational 
excellence; responds to today's dynamic environment by obtaining, 
developing, utilizing, incentivizing, and retaining high performing 
employees; and permits adjustment of workforce levels to meet program 
and organizational needs.

II. Introduction

    The purpose of this notice is to add a new category of positions, 
Senior Scientific Technical Manager (SSTM). Broad band VI of the 
scientific and engineering career path is redefined as described below, 
and all references to this broad band in the final plan published in 
the Federal Register on December 3, 1997 are hereby brought into 
conformance with this new definition. (Note particularly that positions 
which, prior to project implementation, were classified as ST or SL are 
hereby removed from this broad band.) Other provisions of the approved 
plan are unchanged. Pursuant to 5 CFR 470.315, changes are hereby made 
to the Federal Register, Science and Technology Reinvention Laboratory 
Personnel Demonstration Project at the Naval Sea Systems Command 
Warfare Centers; Department of the Navy; Notice, Wednesday, December 3, 
1997, Volume 62, Number 232, Part II.

III. Personnel System Changes

    A. In Section III B 1, amend Figure 2, Career Paths and Broad 
Bands, to replace ``ST/SL'' with ``SSTM'' as the label for broad band 
level ND-VI.
    B. At the end of Section III B 1 b, Broad Bands and Levels of 
Responsibility, append the following text:
    The Warfare Centers broad banding plan creates a pay band in the 
Scientific and Engineering occupational family for Senior Scientific 
Technical Managers. The current definitions of Senior Executive Service 
(SES), Senior Level (SL), and Scientific and Professional (ST) 
positions do not fully meet the needs of the Warfare Centers.
    The SES designation is appropriate for executive level managerial 
positions whose classification exceeds grade 15 of the General 
Schedule. The primary knowledge and abilities of employees occupying 
SES positions relate to supervisory and managerial responsibilities. 
Positions classified as ST are designed for bench research scientists 
and engineers. These positions require a very high level of technical 
expertise and have little or no supervisory responsibilities. The SL 
classification is generally used for positions classifiable above grade 
GS-15 that do not meet the SES or ST criteria, but have minimal 
supervisory responsibility.
    The Warfare Centers currently have positions that warrant 
classification above grade 15 of the General Schedule because of their 
technical expertise requirements. These positions, typically division/
office/branch heads, have some characteristics of SES and SL or ST 
classifications. Most of these positions are responsible for 
supervising other GS-15 positions, including lower level supervisors, 
non-supervisory engineers and scientists, and in some cases ST 
positions. The supervisory and managerial requirements exceed those 
appropriate for SL and ST positions.
    Management considers the primary requirement for these positions to 
be knowledge of and expertise in the specific scientific and technology 
areas related to the mission of their organizations, rather than the 
executive leadership qualifications that are characteristic of the SES. 
Historically, incumbents of these positions have been recognized within 
the community as scientific and engineering leaders who 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 or SLs is not an 
option because the managerial and supervisory responsibilities cannot 
be ignored.
    The project plan is hereby modified to redefine pay band VI of the 
Scientific and Engineering occupational family. While SL and ST 
positions will continue to be covered by the demonstration project for 
incentive pay and other purposes, pay band VI will no longer include SL 
and ST positions, as described in the project plan. The redefined pay 
band VI will apply to a new category of positions designated as Senior 
Scientific Technical Managers (SSTM). Positions so designated will 
include those requiring both scientific/technical expertise and full 
managerial and supervisory authority. Their scientific/technical 
expertise and responsibilities warrant classification above the GS-15 
level.
    Warfare Centers' positions possibly meeting criteria for 
designation as SSTM will be reviewed on a case-by-case basis. The 
salary range for SSTM positions is a minimum of 120% of the minimum 
rate of basic pay for GS-15, with the maximum rate of basic pay 
established at the rate of basic pay (excluding locality pay) for SES 
Level 4 (ES-4).
    Vacant SSTM positions will be competitively filled to ensure that 
selectees are preeminent technical leaders in the specialty fields who 
also possess managerial and supervisory abilities. Panels will be 
created to assist in filling SSTM positions. Panel members typically 
will be current or former SES members, ST employees,

[[Page 52455]]

and, later, those designated as SSTM. In addition, senior military 
officers and recognized technical experts from outside the Warfare 
Centers may also serve, as appropriate. The purpose of the panel is to 
ensure impartiality, breadth of technical expertise, and a rigorous and 
demanding review.
    The Department of Defense (DoD) will test SSTM positions for a 5-
year period. SSTM positions will be subject to limitations imposed by 
the Office of Personnel Management (OPM) and DoD. SSTM positions will 
be established only in an S&T reinvention laboratory that employs 
scientists, engineers, or both. Incumbents of these positions will work 
primarily in their professional capacity on basic or applied research. 
Secondarily, they will also perform managerial or supervisory duties.
    The number of SSTM positions, and the equivalent in other approved 
S&T reinvention laboratory personnel demonstration projects within DoD, 
will not exceed 40. These 40 positions will be allocated by the 
Assistant Secretary of Defense (Force Management Policy) and 
administered by the respective Services. The number of positions will 
be reviewed periodically to determine appropriate position 
requirements. SSTM (and the equivalent in other S&T reinvention 
laboratories? demonstration projects) position allocations will be 
managed separately from SES, ST, and SL allocations. An evaluation of 
the concept for these positions will be performed during the fifth year 
of the demonstration project.
    Specific details regarding the control and management of all SSTM 
positions will be included in the Warfare Centers? demonstration 
project regulations in accordance with guidance developed and provided 
by DON.
    Here ends the text appended at the end of Section III B 1 b, Broad 
Bands and Levels of Responsibility, of the Warfare Centers? 
demonstration project plan.
    C. After the third paragraph of Section III D 3, Exit from the 
Demonstration Project, insert the following text:
    SSTM employees will convert out of the demonstration project at the 
GS-15 level. The Warfare Centers will develop procedures to ensure that 
employees designated as SSTM 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 the rate for GS-15, step 10. SSTM employees paid below the 
adjusted GS-15, step 10 rate will be converted to a GS-adjusted rate on 
the highest applicable rate range for the converted GS grade. (For this 
purpose, a GS rate range includes a rate range in (1) the GS base 
schedule, (2) an applicable locality rate schedule, or (3) an 
applicable special rate schedule.)
    D. In Section V A, Waivers to Title 5, United States Code, append 
the following to the existing waiver of Chapter 53, Section 5363, Pay 
Retention: For SSTM employees, pay retention provisions are modified so 
that no rate established under these provisions may exceed the rate of 
basic pay for GS-15, step 10; i.e., there is no entitlement to a 
retained rate.
    E. In Section V A, Waivers to Title 5, United States Code, 
substitute the following text for that of the existing waivers for the 
chapters and sections indicated:
    1. Chapter 53, Sections 5301; 5302 (1), (8), and (9); 5303, and 
5304: Pay Comparability System. (This waiver applies only to the extent 
necessary to allow demonstration project employees covered by broad 
banding, except those designated as SSTM, to be treated as General 
Schedule employees; to allow SSTM employees to be treated as ST 
employees; and to allow basic rates of pay under the demonstration 
project to be treated as scheduled rates of basic pay. This waiver does 
not apply to Federal Wage System (FWS) employees. Neither does it apply 
to ST and SL employees, who continue to be covered by these provisions, 
as appropriate.)
    2. Chapter 55, Section 5545(d): Hazardous duty differential. (This 
waiver applies only to the extent necessary to allow demonstration 
project employees covered by broad banding to be treated as General 
Schedule employees. This waiver does not apply to FWS, ST, SL, or SSTM 
employees.)
    3. Chapter 57, Sections 5753, 5754, and 5755: Recruitment and 
Relocation Bonuses, Retention Allowances, and Supervisory 
Differentials. (This waiver applies only to the extent necessary to 
allow demonstration project employees and positions covered by broad 
banding, except SSTM employees and positions, to be treated as 
employees and positions under the General Schedule; and to allow SSTM 
employees and positions to be treated as ST employees and positions. 
This waiver does not apply to FWS employees. Neither does it apply to 
ST and SL employees, who continue to be covered by these provisions, as 
appropriate.)
    F. To Section V A, Waivers to Title 5, United States Code, add the 
following new waivers:
    1. Chapter 31, Section 3132: The Senior Executive Service: 
Definitions and Exclusions.
    2. Chapter 33, Section 3324: Appointment to Positions Classified 
Above GS-15.
    G. In Section V B, Waivers to Title 5, Code of Federal Regulations, 
append the following to the existing waiver of Part 536, Section 
536.104: Pay Retention: For SSTM employees, pay retention provisions 
are modified so that no rate established under these provisions may 
exceed the rate of basic pay for GS-15, step 10; i.e., there is no 
entitlement to a retained rate.
    H. In Section V B, Waivers to Title 5, Code of Federal Regulations, 
append the following to the existing waiver of Part 591, subpart B: 
Cost-of-Living Allowances and Post Differential--Non-Foreign Areas: 
SSTM employees are to be treated as ST employees for the purposes of 
these provisions.
    I. In Section V B, Waivers to Title 5, Code of Federal Regulations, 
substitute the following text for that of the existing waivers for the 
parts and subparts indicated:
    1. Part 531, Subpart C: Special Pay Adjustments for Law Enforcement 
Officers. (This waiver applies only to the extent necessary to allow 
demonstration project employees covered by broad banding, except SSTM 
employees, to be treated as General Schedule employees; to allow SSTM 
employees to be treated as ST employees; and to allow basic rates of 
pay under the demonstration project to be treated as scheduled annual 
rates of pay. This waiver does not apply to FWS employees. Neither does 
it apply to ST and SL employees, who continue to be covered by these 
provisions, as appropriate.)
    2. Part 531, Subpart F: Locality-Based Comparability Adjustments. 
(This waiver applies only to the extent necessary to allow 
demonstration project employees covered by broad banding, except SSTM 
employees, to be treated as General Schedule employees; to allow SSTM 
employees to be treated as ST employees; and to allow basic rates of 
pay under the demonstration project to be treated as scheduled annual 
rates of pay. This waiver does not apply to FWS employees. Neither does 
it apply to ST and SL employees, who continue to be covered by these 
provisions, as appropriate.)
    3. Part 550, Section 550.902, definition of ``employee'': Hazardous 
Duty Pay. (This waiver applies only to the extent necessary to treat 
demonstration project employees covered by broad banding as General 
Schedule employees. This waiver does not apply to FWS, ST, SL, or SSTM 
employees.)

[[Page 52456]]

    4. Part 575, subparts A, B, C, and D: Recruitment Bonuses, 
Relocation Bonuses, Retention Allowances, and Supervisory 
Differentials. (This waiver applies only to the extent necessary to 
allow demonstration project employees and positions covered by broad 
banding, except SSTM employees and positions, to be treated as 
employees and positions under the General Schedule; and to allow SSTM 
employees and positions to be treated as ST employees and positions. 
This waiver does not apply to FWS employees. Neither does it apply to 
ST and SL employees, who continue to be covered by these provisions, as 
appropriate.)

[FR Doc. 00-22004 Filed 8-28-00; 8:45 am]
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