[Federal Register Volume 66, Number 118 (Tuesday, June 19, 2001)]
[Notices]
[Pages 32984-33012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15387]



[[Page 32983]]

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

Part II





Department of Defense





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



Office of the Secretary



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



Proposed Science and Technology (S&T) Reinvention Laboratory Personnel 
Management Demonstration Project at the U.S. Army Communications-
Electronics Command (CECOM), Research, Development and Engineering 
(RDE) Community; Notice

  Federal Register / Vol. 66, No. 118 / Tuesday, June 19, 2001 / 
Notices  

[[Page 32984]]


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

DEPARTMENT OF DEFENSE

Office of the Secretary


Proposed Science and Technology (S&T) Reinvention Laboratory 
Personnel Management Demonstration Project at the U.S. Army 
Communications-Electronics Command (CECOM), Research, Development and 
Engineering (RDE) Community

AGENCY: DoD, Office of the Deputy Assistant Secretary of Defense 
(Civilian Personnel Policy).

ACTION: Notice of proposed demonstration project.

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

SUMMARY: The National Defense Authorization Act for Fiscal Year 1995, 
as amended by Section 1114 of the National Defense Authorization for 
Fiscal Year 2001, authorizes the Secretary of Defense to conduct 
personnel demonstration projects at Department of Defense (DoD) 
laboratories designated as Science and Technology (S&T) Reinvention 
Laboratories. The above-cited legislation authorizes DoD to conduct 
demonstration projects that experiment with new and different personnel 
management concepts to determine whether such change in personnel 
policy or procedures would result in improved Federal personnel 
management.

DATES: To be considered, comments must be submitted on or before August 
11, 2001. A public hearing will be scheduled for July 12, 2001, 1:00 
p.m., at the Myer Center, Building 2700, Pearl Harbor Boulevard, in the 
Charles Wood area of Fort Monmouth, New Jersey 07703. Employees located 
at other sites with video teleconferencing facilities can observe the 
public hearing and submit their written comments to the address 
provided below.
    At the time of the hearings, interested persons or organizations 
may present their written or oral comments on the proposed 
demonstration. The hearings will be informal. However, anyone wishing 
to testify should contact the person listed under FOR FURTHER 
INFORMATION CONTACT and state the hearing location, so that DoD can 
plan the hearing and provide sufficient time for all interested persons 
and organizations to be heard. Priority will be given to those on the 
schedule, with others speaking in any remaining available time. Each 
speaker's presentation will be limited to five minutes. Written 
comments may be submitted to supplement oral testimony during the 
public comment period.

ADDRESSES: Written comments may be mailed to Patricia M. Stewart, 
Civilian Personnel Management Service, CPMS-AF, Suite B-200, 1400 Key 
Boulevard, Arlington, Virginia 22209-5144.

FOR FURTHER INFORMATION CONTACT: On proposed demonstration project: 
Thomas Sheehan, U. S. Army Communications-Electronics Command, Research 
Development and Engineering Center, (AMSEL-RD-LQ), Myer Center, Fort 
Monmouth, New Jersey 07703-5201, (732) 427-4465; on proposed 
demonstration project and public hearing: DoD, Patricia M. Stewart, 
CPMS-AF, Suite B-200, 1400 Key Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION: Since 1966, many studies of Department of 
Defense (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 proposed project involves: (1) Three appointment 
authorities (permanent, modified term, and temporary limited); (2) 
extended probationary period for newly hired Engineering and Science 
employees; (3) pay banding; (4) streamlined delegated examining; (5) 
modified reduction-in-force (RIF) procedures; (6) simplified job 
classification; (7) a pay-for-performance based appraisal system; (8) 
academic degree and certificate training; (9) sabbaticals; and (10) a 
voluntary emeritus corps.

    Dated: June 13, 2001.
L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

Table of Contents

I. Executive Summary
II. Introduction
    A. Purpose
    B. Problems With the Present System
    C. Changes Required/Expected Benefits
    D. Participating Organizations
    E. Participating Employees and Union Representation
    F. Project Design
    G. Personnel Management Board
III. Personnel System Changes
    A. Pay Banding
    B. Classification
    C. Pay for Performance
    D. Hiring Authority
    E. Internal Placement and Pay Setting
    F. Employee Development
    G. Reduction-in-Force Procedures
IV. Implementation Training
V. Conversion
    A. Conversion to the Demonstration Project
    B. Conversion Out of the Demonstration Project
VI. Project Duration
VII. Evaluation Plan
    A. Overview
    B. Evaluation Model
    C. Evaluation
    D. Method of Data Collection
VIII. Demonstration Project Costs
    A. Cost Discipline
    B. Developmental Costs
IX. Required Waivers to Law and Regulation
    A. Waivers to Title 5, U.S. Code
    B. Waivers to Title 5, Code of Federal Regulations
Appendix A: RDE Employee Duty Locations
Appendix B: Occupational Series by Occupational Family
Appendix C: Performance Elements
Appendix D: Intervention Model

I. Executive Summary

    This project was designed by the U.S. Army Communications-
Electronics Command (CECOM), Research, Development and Engineering 
(RDE) organizations, with participation and review by Department of 
Defense (DoD) and the Office of Personnel Management (OPM). CECOM RDE 
organizations are defined as the CECOM Research, Development and 
Engineering Center (RDEC) and the CECOM Software Engineering Center 
(SEC). Both the RDEC and SEC headquarters are located at Fort Monmouth, 
New Jersey.
    The primary mission of the CECOM (RDE) organizations is focused on 
moving the 21st Century Army fully into the Information Age. Although 
these organizations are predominantly organized around a technology-
centric theme, Information Age technologies will allow us to think in 
network-centric terms, i.e. the system-of-systems way of organizing, 
acquiring and maintaining our forces and capability. The RDE's vision 
is to enable commanders at all echelons to make truly informed and 
timely decisions, and see to it that those decisions get executed, as 
events require. In simple terms, getting the right information to the 
right place at the right time. CECOM RDE organizations support the war 
fighting and sustaining base communities as well as Program Executive 
Offices, Project Managers and other customers. We manage technology-
based programs by defining, developing and acquiring superior 
technologies; developing, acquiring, testing and evaluating systems; 
and sustaining and enhancing systems and equipment for a trained and 
ready Army undergoing revolutionary changes. To do this, CECOM RDE 
organizations must be able to hire and retain enthusiastic, innovative, 
and highly educated scientists and engineers to meet mission needs, 
along with dynamic, committed technical, clerical and administrative 
support personnel.
    The goal of the project is to enhance the quality and 
professionalism of the

[[Page 32985]]

CECOM RDE workforce through improvements in the efficiency and 
effectiveness of the human resource system. The project interventions 
will strive to achieve the best workforce for the RDE mission, adjust 
the workforce for change, and improve workforce satisfaction. This 
demonstration project builds on the concepts, and uses much of the same 
language, as the demonstration projects developed by the Army Research 
Laboratory (ARL), the Aviation and Missile Research, Development, and 
Engineering Center (AMCOM RDEC), the Navy's ``China Lake,'' and the 
National Institute of Standards and Technology (NIST). DoD, and 
Department of the Army (DA) will provide for an evaluation of the 
results of the project throughout the first 5 years after 
implementation. The Army has programmed a decision point 5 years into 
the project for permanent implementation, modification and additional 
testing, or termination of the entire demonstration project.

II. Introduction

A. Purpose

    The purpose of the project is to demonstrate that the effectiveness 
of Department of Defense (DoD) laboratories can be enhanced by 
expanding opportunities available to employees and by allowing greater 
managerial control over personnel functions through a more responsive 
and flexible personnel system. The quality of DoD laboratories, their 
people, and products has been under intense scrutiny in recent years. A 
common theme has emerged that Federal laboratories need more efficient, 
cost effective, and timely processes and methods to acquire and retain 
a highly creative, productive, educated, and trained workforce. This 
project, in its entirety, attempts to improve employees' opportunities 
and provide managers, at the lowest practical level, the authority, 
control, and flexibility needed to achieve the highest quality 
organization and hold them accountable for the proper exercise of this 
authority within the framework of an improved personnel management 
system.
    Many aspects of a demonstration project are experimental. 
Modifications may be made from time to time as experience is gained, 
results are analyzed, and conclusions are reached on how the system is 
working. The provisions of this project plan will not be modified, 
duplicated in organizations not listed in the project plan, or extended 
to individuals or groups of employees not included in the project plan 
without the approval of the Deputy Assistant Secretary of Defense 
(Civilian Personnel Policy). ODASD (CPP) will inform DA of requirements 
for notification to stakeholders, which may include Congress, 
employees, labor organizations, and the public. The extent of 
notification requirements will depend on the nature and extent of the 
requested project modifications. As a minimum, however major changes 
and modifications will be published in the Federal Register subject to 
ODASD (CPP) approval. Minor modifications may be made without further 
notice.

B. Problems With the Present System

    The current Civil Service General Schedule (GS) system has existed 
in essentially the same form since the 1920's. Work is classified into 
one of fifteen overlapping pay ranges that correspond with the 15 
grades. Pay is set at one of those fifteen grades and the ten interim 
steps within each grade. The Classification Act of 1949 rigidly defines 
types of work by series and grade, with very precise qualifications for 
each job. This system does not quickly or easily respond to new ways of 
designing work and changes in the work itself.
    The performance management model that has existed since the passage 
of the Civil Service Reform Act has come under extreme criticism. 
Employees frequently report there is inadequate communication of 
performance expectations and feedback on performance. There are 
perceived inaccuracies in performance ratings with general agreement 
that the ratings are inflated and often unevenly distributed by grade, 
occupation and geographic location.
    The need to change the current hiring system is essential as CECOM 
RDE organizations must be able to recruit and retain scientific, 
engineering and information technology (IT) professionals. The CECOM 
RDE organizations must be able to compete with the private sector for 
the best talent and be able to make job offers in a timely manner with 
the attendant bonuses and incentives to attract high quality employees.
    Finally, current rules on training, retraining and otherwise 
developing employees make it difficult to correct skill imbalances and 
to prepare current employees for new lines of work to meet changing 
missions.

C. Changes Required/Expected Benefits

    The primary benefit expected from this demonstration project is 
greater organizational effectiveness through increased employee 
satisfaction. The long-standing Department of the Navy China Lake and 
NIST demonstration projects have produced impressive statistics on 
increased job satisfaction and quality of employees versus that for the 
Federal workforce in general. This project will demonstrate that a 
human resource system tailored to the mission and needs of the CECOM 
RDE workforce will result in: (a) Increased quality in the RDE 
workforce and resultant products; (b) increased timeliness of key 
personnel processes; (c) increased retention of ``excellent 
performers''; (d) increased success in recruitment of personnel with 
critical skills; (e) increased management authority and accountability; 
(f) increased satisfaction of RDE customers; and (g) increased 
workforce satisfaction with the personnel management system. An 
evaluation model was developed by the Director of Defense, Research and 
Engineering (DDR&E) in conjunction with laboratory and service 
representatives and OPM. The model will measure the effectiveness of 
demonstration projects, as modified in this plan, and will be used to 
measure the results of specific personnel system changes.

D. Participating Organizations

    The CECOM RDE is composed of two major organizational entities: the 
Research, Development and Engineering Center (RDEC) and the Software 
Engineering Center (SEC), both headquartered at Fort Monmouth, New 
Jersey. RDE employees are geographically dispersed at the locations 
shown in Appendix A. It should be noted that some sites currently 
employ fewer than 10 people and that the sites may change as CECOM 
reorganizes, realigns, or complies with Base Realignment and Closure 
Act requirements. Successor organizations will continue coverage in the 
demonstration project.

E. Participating Employees and Union Representation

    This demonstration project will cover approximately 2,100 CECOM RDE 
civilian employees under Title 5, United States Code in the occupations 
listed in Appendix B. The project plan does not cover members of the 
Senior Executive Service (SES), Scientific and Professional (S&T) 
employees, Federal Wage System (FWS) employees, employees presently 
covered by the Defense Civilian Intelligence Personnel System (DCIPS) 
and Department of Army (DA) and Major Subordinate Command (MSC) 
centrally funded interns and co-operative education students. Employees 
on temporary

[[Page 32986]]

appointments will not be covered in the demonstration project.
    DA, MSC centrally funded and local interns (hired prior to 
implementation of the project) will not be converted to the 
demonstration project until they reach the target grade of the intern 
program and/or convert to a CECOM RDE employee. They will also continue 
to follow the TAPES performance appraisal system. Local interns hired 
after implementation of the project will be covered by all terms of the 
demonstration project.
    Personnel brought into CECOM RDE organizations either through 
appointment, promotion, reassignment, change to a lower grade or where 
their functions and positions have been transferred to an RDE 
organization will be converted to the demonstration project.
    The American Federation of Government Employees (AFGE) and the 
National Federation of Federal Employees (NFFE) represent many CECOM 
RDE employees. Of those employees assigned to the CECOM RDE 
organizations, approximately 50% are represented by labor unions.
    In April 1997, unions representing the majority of RDE employees at 
Fort Monmouth were briefed, along with Directors and senior managers, 
on the major aspects of the Personnel Demonstration Plan. The unions 
have received updates as specific proposals evolved during the design 
phase. The unions have attended town meetings and smaller focus group 
briefings provided to the workforce. CECOM RDE organizations continue 
to fulfill our obligation to consult and/or negotiate with all labor 
organizations in accordance with 5 U.S.C. 4703(f) and 7117. We are 
committed to a full partnership with our unions in the development of 
this project.

F. Project Design

    In September 1995, a Project Leader was appointed to lead the 
reinvention effort. During the next several months, waivers to various 
restrictions in the personnel arena were discussed, and it was learned 
that these initiatives should be merged into the DoD S&T Reinvention 
Laboratory Personnel Demonstration Project. Work then began gathering 
information from the original five Army S&T Reinvention Laboratories. 
Those demonstration projects were the first to introduce major changes 
to improve the personnel system specifically tailored to the Army labs.
    In the summer/fall of 1997, the RDEC Associate Director for 
Operations hosted a series of town meetings providing an overview of 
Personnel Demonstration Projects. These meetings were held at Forts 
Monmouth and Fort Belvoir where the majority of CECOM RDE employees are 
located. Plans were outlined to establish teams of volunteers to design 
the major aspects of the project, e.g., Pay/Classification, Staffing, 
Employee Development and Performance Management along with an 
additional team dedicated to Workforce Communication. All levels of 
employees, supervisors and the labor organizations were invited to 
participate. The Associate Director for Operations provided executive 
oversight and briefed the project to senior managers and those local 
unions representing a majority of employees. From October 1997 through 
April 1998, the teams developed their portions of the project as 
outlined above. During this time, feedback was provided to RDE 
employees through briefings, newsletters, a web site and a dedicated 
anonymous electronic mailbox for employees to post questions and 
receive answers. As the majority of the members on the teams were non-
supervisory employees, the opinions and comments of the workforce are 
clearly reflected in the overall design of this project. A draft 
proposal was developed and staffed throughout the CECOM RDE 
organizations and the Command. Comments and requested changes have been 
incorporated.
    To further validate the proposed Pay for Performance (PFP) system, 
a test was conducted. The goals were to provide employees feedback on 
how they might fare under PFP, increase employee and management 
participation in the process and identify areas needing improvement 
before actual implementation. The results of the test have been briefed 
to senior managers, provided to the unions, published in the Personnel 
Demo Newsletter and placed on the website. An interactive tool is also 
available on the website which permits employees to input their current 
salary and calculate performance pay outs based upon projected 
performance scores.

G. Personnel Management Board

    CECOM RDE organizations will create an RDE Personnel Management 
Board (PMB) to oversee and monitor the fair, equitable, and consistent 
implementation of the provisions of the demonstration project to 
include establishment of internal controls and accountability. 
Permanent members of the board will include RDE senior leaders 
appointed by the RDE Center Directors. Other members include the CECOM 
Deputy Chief of Staff for Personnel and the Equal Employment Officer 
(EEO) to ensure proper management and oversight of the project. Sub-
boards may be established at the Center level, reporting to the RDE 
Personnel Management Board, to address specific issues within the scope 
of the separate CECOM RDE organizations. The boards will execute the 
following:
    (a) Determine the composition of the pay-for-performance pay pools 
in accordance with the guidelines of this proposal and internal 
procedures;
    (b) Review operation of pay pools and provide guidance to Pay Pool 
Managers;
    (c) Oversee disputes in pay pool issues;
    (d) Formulate and execute the civilian pay budget;
    (e) Manage the awards pools;
    (f) Determine hiring and promotion salaries as well as exceptions 
to pay for performance salary increases;
    (g) Conduct classification review and oversight, monitoring and 
adjusting classification practices and deciding board classification 
issues;
    (h) Approve major changes in position structure;
    (i) Address issues associated with multiple pay systems during the 
demonstration project;
    (j) Establish Standard Performance Elements and Benchmarks;
    (k) Assess the need for changes to demonstration project procedures 
and policies;
    (l) Review requests for Supervisory/Team Leader Pay Adjustments and 
provide recommendations to the appropriate Center Director;
    (m) Ensure in-house budget discipline;
    (n) Manage the number of employees by occupational family and 
payband;
    (o) Develop policies and procedures for administering Developmental 
Opportunity Programs;
    (p) Ensure that all employees are treated in a fair and equitable 
manner in accordance with all policies, regulations and guidelines 
covering this demonstration project; and,
    (q) Monitor the evaluation of the project.

III. Personnel System Changes

A. Pay Banding

    The design of the CECOM RDE pay banding system takes advantage of 
the many reviews performed by DA, DoD, and OPM. The design has the 
benefit of being preceded by exhaustive studies of pay banding systems 
currently practiced in the Federal sector, to include those practiced 
by the Navy's ``China Lake'' experiment and NIST. The pay banding

[[Page 32987]]

system will replace the current General Schedule (GS) structure. 
Currently the 15 grades of the General Schedule are used to classify 
positions and, therefore, to set pay. The General Schedule covers all 
white-collar work--administrative, technical, clerical and 
professional. Changes in this rigid structure are required to allow 
flexibility in hiring, developing, retaining, and motivating the 
workforce.
1. Occupational Families
    Occupations with similar characteristics will be grouped together 
into one of three occupational families with pay band levels designed 
to facilitate pay progression. Each occupational family will be 
composed of pay bands corresponding to recognized advancement and 
career progression expected within the occupations. These pay bands 
will replace individual grades and will not be the same for each 
occupational family. Each occupational family will be divided into 
three to five pay bands with each pay band covering the same pay range 
now covered by one or more GS grades. Employees track into an 
occupational family based on their current series as provided in 
Appendix B. Upon implementation employees are initially assigned to the 
highest band in which their grade fits. For example a Management 
Analyst GS-343-12 in the Business and Technical Family is assigned to 
Pay Band III as illustrated in Figure 1. The upper and lower salary 
limit of each band is defined by the salary of the GS grade and step as 
indicated in Figure 1. Comparison to the GS grades was used in setting 
the upper and lower dollar limits of the pay band levels; however, once 
employees are moved into the demonstration project, GS grades will no 
longer apply. The current occupations have been examined, and their 
characteristics and distribution have served as guidelines in the 
development of the following three occupational families:
    Engineering and Science (E&S) (Pay Plan DB): This occupational 
family includes technical professional positions, such as engineers, 
physicists, chemists, mathematicians, operations research analysts and 
computer scientists. Specific course work or educational degrees are 
required for these occupations. Five bands have been proposed for the 
E&S occupational family:
    Band I is a student trainee track covering GS-1, step 1 through GS-
4, step 10.
    Band II is a developmental track covering GS-5, step 1 through GS-
11, step 10.
    Band III * is a full-performance technical track covering GS-12, 
step 1 through GS-14, step 10.
    Band IV * includes both senior technical positions along with 
supervisors-managers covering GS-14, step 1 through GS-15, step 10.
---------------------------------------------------------------------------

    \*\ Bands III and IV overlap at the end and start points. These 
two bands have been designed following a feature used by the Navy's 
``China Lake'' project. Upon implementation, employees in the E&S 
family currently at grade GS-14 are assigned to Band IV.
---------------------------------------------------------------------------

    Band V is a senior scientific-technical manager. The salary range 
is from 120 percent of the minimum rate of basic pay for a GS-15 to a 
maximum rate of SES level 4 (ES-4) excluding locality pay.
    Business & Technical (B&T) (Pay Plan DE): This occupational family 
includes such positions as computer specialists, equipment specialists, 
quality assurance specialists, telecommunications specialists, 
engineering and electronics technicians, procurement coordinators, 
finance, accounting, administrative computing, and management analysis. 
Employees in these positions may or may not require specific course 
work or educational degrees. Five bands have been proposed the B&T 
occupational family:
    Band I is a student trainee track covering GS-1, step 1 through GS-
4, step 10.
    Band II is a developmental track covering GS-5, step 1 through GS-
11, step 10.
    Band III is a full performance track covering GS-12, step 1 through 
GS-13, step 10.
    Band IV is a senior technical/manager track covering GS-14, step 1 
through GS-15, step 10.
    General Support (GEN) (Pay Plan DK): This occupational family is 
composed of positions for which specific course work or educational 
degrees are not required. Clerical work usually involves the processing 
and maintenance of records. Assistant work requires knowledge of 
methods and procedures within a specific administrative area. This 
family includes such positions as secretaries, office automation 
clerks, and budget/program/computer assistants. Three bands have been 
proposed for the GEN occupational family:
    Band 1 includes entry-level positions covering GS-1, step 1 through 
GS-4, step 10.
    Band 2 includes full-performance positions covering GS-5, step 1 
through GS-8, step 10.
    Band 3 includes senior technicians/assistants/secretaries covering 
GS-9 step 1 through step 10.
2. Pay Band Design
    The proposed pay bands for the occupational families and how they 
relate to the current GS framework are shown in Figure 1.

                                                                Figure 1.--Pay Bank Chart
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Occupational Family                                                          Equivalent GS Grades
--------------------------------------------------------------------------------------------------------------------------------------------------------
E&S................................  GS-01--GS-04..........  GS-05--GS-11..........  GS-12--GS-14.........  GS-14--GS-15.........  >GS-15.
                                     I.....................  II....................  III..................  IV...................  V.
Business & Technical...............  GS-01--GS-04..........  GS-05--GS-11..........  GS-12--GS-13.........  GS-14--GS-15.........
                                     I.....................  II....................  III..................  IV...................
General Support....................  GS-01--GS-04..........  GS-05--GS-08..........  GS-09................
                                     I.....................  II....................  III..................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Employees will be converted into the occupational family and pay 
band that corresponds to their GS/GM series and grade. Each employee is 
assured an initial place in the system without loss of pay. New hires 
will ordinarily be placed 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 
band. As the rates of the General Schedule are increased due to general 
pay increases, the upper and lower salary limits of the pay bands will 
also increase. Since pay progression through the bands depends directly 
on performance, there will be no scheduled Within-Grade Increases 
(WIGIs) or Quality Step Increases (QSIs) for employees once the pay 
banding system is in place. Special salary rates

[[Page 32988]]

will no longer be applicable to demonstration project employee. Special 
provisions have been included to ensure conversion without a loss of 
pay (See section E, paragraph 8, Staffing Supplements).
3. Pay Band V
    The CECOM RDE pay banding plan expands the pay banding concept used 
at China Lake and NIST by creating Pay Band V for the Engineering and 
Science occupational family. This pay band is designed for Senior 
Scientific Technical Managers (SSTM). The current definition of Senior 
Executive Service (SES) and Scientific and Professional (ST) positions 
do not fully meet the needs of the CECOM RDE organizations.
    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 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.
    CECOM RDE organizations currently have positions that warrant 
classification above grade 15 of the General Schedule because of their 
technical expertise requirements. These positions, typically division/
office chiefs, have characteristics of both SES and 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 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 is not an option 
because the managerial and supervisory responsibilities cannot be 
ignored.
    Pay Band V will apply to a new category of positions designated as 
Senior Scientific Technical Managers (SSTM). Positions so designated 
will include those requiring scientific/technical expertise and full 
managerial and supervisory authority. Their scientific/technical 
expertise and responsibilities warrant classification above the GS-15 
level.
    Current GS-15 division/office chiefs will convert into the 
demonstration project at Pay Band IV. After conversion they will be 
reviewed against established criteria to determine if they should be 
reclassified to Pay Band V. Other 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 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 SSTM positions will be filled competitively to ensure that 
selectees are preeminent technical leaders in specialty fields who also 
possess substantial managerial and supervisory abilities. The CECOM RDE 
organizations will capitalize on the efficiencies that can accrue from 
central recruiting by continuing to use the expertise of the Army 
Materiel Command SES Office as the recruitment agent.
    Panels will be created to assist in filling SSTM positions. Panel 
members typically will be current or former SES members, ST employees 
and later those designated as SSTMs. In addition, senior military 
officers and recognized technical experts from outside the RDE 
organizations may also serve as appropriate. The panel will apply 
criteria developed largely from the current OPM Research Grade 
Evaluation Guide for positions exceeding the GS-15 level. The purpose 
of the panels is to insure impartiality, breadth of technical expertise 
and a rigorous and demanding review.
    DoD will test SSTM positions for a five-year period. SSTM positions 
will be subject to limitations imposed by 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.
    The final component of Pay Band V is the management of all Pay Band 
V 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 appraise 
performance under this project's Pay for Performance system. The CECOM 
RDE organizations want to demonstrate increased effectiveness by 
gaining greater managerial control and authority, consistent with 
merit, affirmative action, and equal employment opportunity principles.

B. Classification

1. Occupational Series
    The present General Schedule classification system has 434 
occupational series, which are divided into 22 occupational groupings. 
The CECOM RDE organizations currently have positions in approximately 
70 occupational series that fall into 14 occupational groupings. All 
positions listed in Appendix B will be in the classification structure. 
Provisions will be made for including other occupations in response to 
changing missions.
2. Classification Standards and Position Descriptions
    CECOM RDE organizations will use a fully automated classification 
system modeled after the Navy's `` China Lake'' and ARL. ARL has 
developed a Web-based automated classification system that can create 
standardized, classified, position descriptions under the new pay 
banding system in a matter of minutes. The present system of OPM 
classification standards will be used for the identification of proper 
series and occupational titles of positions within the demonstration 
project. Current OPM Position Classification Standards will not be used 
to grade positions in this project. However, the grading criteria in 
those standards will be used as a framework to develop new and 
simplified standards for the purpose of pay band determinations. The 
objective is to record the essential criteria for each

[[Page 32989]]

pay band within each occupational family by stating the characteristics 
of the work, the responsibilities of the position, and the knowledge, 
skills, and abilities required. New position descriptions will replace 
the current DA Form 374, Department of the Army Job Description. The 
classification standard for each pay band will serve as an important 
component in the new position description, which will also include 
position-specific information, and provide data element information 
pertinent to the job. Supervisors will follow a computer-assisted 
process to produce position descriptions. The new descriptions will be 
easier to prepare, minimize the amount of writing time and make the 
position description a more useful and accurate tool for other 
personnel management functions.
    Specialty work codes will be used to further differentiate types of 
work and the skills and knowledge required for particular positions 
with an occupational family and pay band. Each code represents a 
specialization or type of work within the occupation.
3. Fair Labor Standards Act
    Fair Labor Standards Act (FLSA) exemption and non-exemption 
determinations will be consistent with criteria found in 5 CFR (Code of 
Federal Regulations) Part 551. All employees are covered by the FLSA 
unless they meet the criteria for exemption. The duties and 
responsibilities outlined in the classification standards for each pay 
band will be compared to the FLSA criteria. As a general rule, the FLSA 
status can be matched to occupational family and pay band as indicated 
in Figure 2. For example, positions classified in Pay Band I of the E&S 
occupational family are typically nonexempt, meaning they are covered 
by the overtime entitlements prescribed by the FLSA. An exception to 
this guideline includes supervisors/managers who meet the definitions 
outlined in the OPM General Schedule Supervisory Guide and who spend 80 
percent or more of the workweek on supervisory duties. Therefore, 
supervisors/managers in any of the pay bands who meet the foregoing 
criteria are exempt from the FLSA. Supervisors with classification 
authority will make the determinations on a case-by-case basis by 
comparing assigned duties and responsibilities to the classification 
standards for each pay band and the 5 CFR Part 551 FLSA criteria. 
Additionally, the advice and assistance of the Civilian Personnel 
Advisory Center/Civilian Personnel Operations Center (CPAC/CPOC) will 
be obtained in making determinations as part of the performance review 
process. The benchmark position descriptions will not be the sole basis 
for the determination. Basis for exemption will be documented and 
attached to each position description. Exemption criteria will be 
narrowly construed and applied only to those employees who clearly meet 
the spirit of the exemption. Changes will be documented and provided to 
the CPAC/CPOC, as appropriate.

                                              Figure 2--FLSA Status
                                                   [Pay bands]
----------------------------------------------------------------------------------------------------------------
       Occupational Family               I              II              III             IV               V
----------------------------------------------------------------------------------------------------------------
E&S.............................  N               N/E             E               E               E
B&T.............................  N               N/E             E               E
GEN.............................  N               N               E               ..............  ..............
----------------------------------------------------------------------------------------------------------------
N--Non-Exempt from FLSA; E--Exempt from FLSA.
N/E--Exemption status determined on a case-by-case basis.
Note: Although typical exemption status under the various pay bands is shown in the above table, actual FLSA
  exemption determinations are made on a case-by-case basis.

4. Classification Authority
    CECOM RDE Center Directors will have delegated classification 
authority and may, in turn, re-delegate this authority to appropriate 
levels. Position descriptions will be developed to assist managers in 
exercising delegated position classification authority. Managers will 
identify the occupational family, job series, functional code, 
specialty work code, pay band level, and the appropriate acquisition 
codes. Personnel specialists will provide ongoing consultation and 
guidance to managers and supervisors throughout the classification 
process. The manager will document these decisions on a form similar to 
the present DA Form 374.
5. Classification Appeals
    Classification appeals under this demonstration project will be 
processed using the following procedures: An employee may appeal the 
determination of occupational family, occupational series, position 
title, and pay band of his/her position at any time. An employee must 
formally raise the area of concern to supervisors in the immediate 
chain of command, either verbally or in writing. If the employee is not 
satisfied with the supervisory response, he/she may then appeal to the 
DoD appellate level. Appeal decisions rendered by DoD will be final and 
binding on all administrative, certifying, payroll, disbursing, and 
accounting officials of the government. Classification appeals are not 
accepted on positions which exceed the equivalent of a GS-15 level. 
Time periods for cases processed under 5 CFR, Part 511 apply.
    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.
    The evaluations of classification appeals under this demonstration 
project are based upon the demonstration project classification 
criteria. Case files will be forwarded for adjudication through the 
CPAC/CPOC providing personnel service and will include copies of 
appropriate demonstration project criteria.

C. Pay for Performance

1. Overview
    The purpose of the PFP system is to provide an effective, 
efficient, and flexible method for assessing, compensating, and 
managing the RDE workforce. It is essential for the development of a 
highly productive workforce and to provide management at the lowest 
practical level, the authority, control, and flexibility needed to 
achieve a quality organization. PFP allows for more employee 
involvement in the assessment process, strives to increase 
communication between supervisor and

[[Page 32990]]

employee, promotes a clear accountability of performance, facilitates 
employee career progression, and provides an understandable and 
rational basis for salary changes by linking pay and performance.
    The PFP system uses annual performance payouts that are based on 
the employee's total performance score rather than within-grade 
increases, quality step increases, promotions from one grade to another 
where both grades are now in the same pay band (i.e., there are no 
within-band promotions) and performance awards. The normal rating 
period will be one year. The minimum rating period will be 120 days. 
PFP payouts can be in the form of increases to base pay or in the form 
of bonuses that are not added to base salary but rather are given as a 
lump sum bonus. Other awards such as special acts, time-off awards, 
etc., will be retained separately from the PFP payouts.
    The system will have the flexibility to be modified, if necessary, 
as more experience is gained under the project.
2. Performance Objectives
    Performance objectives define a target level of activity, expressed 
as a tangible, measurable objective, against which actual achievement 
can be compared. These objectives will specifically identify what is 
expected of the employee during the rating period and will typically 
consist of 3 to 10 concise statements. The employee and his/her 
supervisor rater will jointly develop the employee's performance 
objectives at the beginning of the rating period. These are to be 
reflective of the employee's duties/responsibilities and pay band along 
with the mission/organizational goals and priorities. Objectives will 
be reviewed annually and revised upon changes in salary reflecting 
increased responsibilities commensurate with salary increases. Use of 
generic one-size fits all objectives will be avoided, as performance 
objectives are meant to define an individual's specific 
responsibilities and expected accomplishments. In contrast, performance 
elements as described in the next paragraph, will identify generic 
performance characteristics, against which the accomplishment of 
objectives will be measured. As a part of this demonstration project, 
training focused on overall organizational objectives and the 
development of performance objectives will be held for both supervisors 
and employees. Performance objectives may be jointly modified, changed 
or deleted as appropriate during the rating cycle. As a general rule, 
performance objectives should only be changed when circumstances 
outside the employee's control prevent or hamper the accomplishment of 
the original objectives. It is also appropriate to change objectives 
when mission or workload shifts occur.
3. Performance Elements
    Performance elements define generic performance characteristics 
that will be used to evaluate the employee's success in accomplishing 
his/her performance objectives. The use of generic characteristics for 
scoring purposes helps to ensure comparable scores are assigned yet 
while accommodating diverse individual objectives. This pay-for-
performance system will utilize those performance elements provided in 
Appendix C. All elements are critical. A critical performance element 
is defined as an attribute of job performance that is of sufficient 
importance that performance below the minimally acceptable level 
requires remedial action and may be the basis for removing an employee 
from their position. Non-critical elements will not be used. Each of 
the performance elements will be assigned a weight, which reflects its 
importance in accomplishing an individual's performance objectives. A 
minimum weight is set for each performance element. The sum of the 
weights for all of the elements must equal 100.
    A single set of performance elements will be used for evaluating 
the annual performance of all CECOM RDE personnel covered by this plan. 
This set of performance elements may evolve over time, based on 
experience gained during each rating cycle. This evolution is essential 
to capture the critical characteristics the organization encourages in 
its workforce toward meeting individual and organizational objectives. 
This is particularly true in an environment where technology and work 
processes are changing at an increasingly rapid pace. The RDE Personnel 
Management Board will annually review the set of performance elements 
and set them for the entire organization before the beginning of the 
rating period. The following is an initial set of proposed performance 
elements along with the minimum weight:

(1) Technical Competence (Minimum Weight: 15%)
(2) Interpersonal Skills (Minimum Weight: 10%)
(3) Management of Time and Resources (Minimum Weight: 15%)
(4) Customer Satisfaction (Minimum Weight: 10%)
(5) Team/Project Leadership (Minimum Weight: 15%)
(6) Supervision/EEO (Minimum Weight: 25%)

All employees will be rated against the first four performance 
elements. Team/Project Leadership is mandatory for team leaders and 
Supervision/EEO is mandatory for all managers/supervisors. At the 
beginning of the rating period, Pay Pool Managers will review the 
objectives and weights assigned to employees within the pay pool, to 
verify consistency and appropriateness.
4. Performance Feedback and Formal Ratings
    The most effective means of communication is person-to-person 
discussion between supervisors and employees of requirements, 
performance goals and desired results. Employees and supervisors alike 
are expected to actively participate in these discussions for optimum 
clarity regarding expectations and identify potential obstacles to 
meeting goals. In addition, employees should explain (to the extent 
possible) what they need from their supervisor to support goal 
accomplishment. The timing of these discussions will vary based on the 
nature of work performed, but will occur at least at the mid-point and 
end of the rating period. The supervisor and employee will discuss job 
performance and accomplishments in relation to the performance 
objectives and elements. At least one review, normally the mid-point 
review, will be documented as a formal progress review. More frequent, 
task specific, discussions may be appropriate in some organizations. In 
cases where work is accomplished by a team, team discussions regarding 
goals and expectations will be appropriate.
    The employee will provide a list of his/her accomplishments to the 
supervisor at both the mid-point and end of the rating period. An 
employee may elect to provide self-ratings on the performance elements 
and/or solicit input from team members, customers, peers, supervisors 
in other units, subordinates, and other sources which will permit the 
supervisor to fully evaluate accomplishments during the rating period.
    At the end of the rating period, following a review of the 
employee's accomplishments, the supervisor will rate each of the 
performance elements by assigning a score between 0 and 50. Benchmark 
performance standards have been developed that have been developed that 
describe the level of performance associated with a score. Using these 
benchmarks, the supervisor decides where (at any point on a scale of 0 
to 50), the performance of the employee fits and assigns an

[[Page 32991]]

appropriate score. It should be noted that these scores are not 
discussed with the employee or considered final until all scores are 
reconciled and approved by the Pay Pool Manager. The element scores 
will then be multiplied by the element-weighting factor to determine 
the weighted score expressed to two decimal points. The weighted scores 
for each element will then be totaled to determine the employees 
overall appraisal score and rounded to a whole number as follows: if 
the digit to the right of the decimal is between five and nine it 
should be rounded to the next higher whole number, if the digit to the 
right of the decimal is between one and four, it should be dropped.
    A total score of 10 or above will result in a rating of acceptable. 
A total score of 9 or below will result in a rating of unacceptable, 
and requires the employee be placed on a Performance Improvement Plan 
(PIP) immediately or following a temporary assignment. A score of 9 or 
below in a single element will also result in a rating of unacceptable, 
and requires the employee be placed on a PIP. If at the conclusion of 
the PIP the employee's performance improves to an acceptable level, a 
new rating of record will be issued.
5. Unacceptable Performance
    Informal employee performance reviews will be a continuous process 
so that corrective action, to include placing an employee on a 
Performance Improvement Plan (PIP), may be taken at any time during the 
rating cycle. Whenever a supervisor recognizes an employee's 
performance on one or more performance elements is unacceptable, the 
supervisor should immediately inform the employee. Efforts will be made 
to identify the possible reasons for the unacceptable performance.
    As an informal first step, the supervisor and employee may explore 
a temporary assignment to another unit in the organization. This 
recognizes conflicts sometimes occur between a supervisor and an 
employee, or that an employee may be assigned to a position for which 
they are not suited. The supervisor is under no obligation to explore 
this option prior to taking more formal action. If the temporary 
assignment is not possible or has not worked out, and the employee 
continues to perform at an unacceptable level or has received an 
unacceptable rating, written notification outlining the unacceptable 
performance will be provided to the employee. At this point an 
opportunity to improve will be structured in a PIP. The supervisor will 
identify the items/action which need to be corrected or improved; will 
outline required time frames (no less than 30 days) for such 
improvement; and will provide the employee with any available 
assistance as appropriate. Progress will be monitored during the PIP 
and all counseling sessions will be documented.
    If at the conclusion of the PIP the employee's performance is 
acceptable, no further action is necessary. If a PIP ends prior to the 
end of the annual performance cycle and the employee's performance 
improves to an acceptable level, the employee is appraised again at the 
end of the annual performance cycle.
    If the employee fails to improve during the PIP, the employee will 
be given notice of proposed appropriate action. This action can 
include: removal from the Federal service, placement in a lower pay 
band with a corresponding reduction in pay (demotion), reduction in pay 
within the same pay band, or a change in position or occupational 
family. For the most part, employees with an unacceptable rating will 
not be permitted to remain at their current pay band or salary. 
Reductions in salary within the same pay band or changes to a lower pay 
band will be accomplished with a minimum of a 5 percent decrease in an 
employee's base pay.

(Note: Nothing in this subsection will preclude action under Title 
5, United States Code, Chapter 75, when appropriate.)

    All relevant documentation concerning a reduction in pay or removal 
based on unacceptable performance will be preserved and made available 
for review by the affected employee or a designated representative. As 
a minimum, the record will consist of a copy of the notice of proposed 
personnel action, the employee's written reply, if provided, or a 
summary when the employee makes an oral reply. Additionally, the record 
will contain the written notice of decision and the reasons therefore; 
along with any supporting material including documentation regarding 
the opportunity afforded the employee to demonstrate improved 
performance.
    If the employee's performance deteriorates to an unacceptable 
level, in any element, within two years from the beginning of a PIP, 
follow-on actions may be initiated with no additional opportunity to 
improve. If an employee's performance is at an acceptable level for two 
years from the beginning of the PIP, and performance once again 
declines to an unacceptable level, the employee will be given an 
additional opportunity to improve, before proposing follow-on actions.
6. Reconciliation Process
    Following the initial scoring of each employee by the rater, the 
rating officials in an organizational unit, along with their next level 
of supervision, will meet to ensure consistency and equity of the 
ratings. In this step, each employee's performance objectives, 
accomplishments, preliminary scores and current salary are compared. 
Through discussion and consensus building, consistent and equitable 
ratings are reached.
    Managers will not prescribe a distribution of total scores. The Pay 
Pool Manager will then chair a final review with the rating officials 
who report directly to him or her to validate these ratings. If 
consensus cannot be reached in this process, the Pay Pool Manager makes 
all final decisions. After this reconciliation process is complete, 
scores are finalized. Payouts proceeds according to each employee's 
final score and current salary. Upon approval of this plan, 
implementing procedures and regulations will provide details on this 
process to employees and supervisors.
7. Pay Pools
    Employees within the CECOM RDE organizations will be placed into 
pay pools. Pay pools are combinations of organizational elements (e.g., 
Directorates, Divisions, Branches, Offices, etc.) that are defined for 
the purpose of determining performance payouts under the PFP system. 
The RDE Center Directors will establish pay pools within their 
respective organizations. Typically, pay pools will have between 35 and 
300 employees. A pay pool should be large enough to encompass a 
reasonable distribution of ratings but not so large as to compromise 
rating consistency. Supervisory personnel will be placed in a pay pool 
separate from subordinate non-supervisory personnel. Neither the Pay 
Pool Manager nor supervisors within a pay pool will recommend or set 
their own individual pay. Decisions regarding the amount of the 
performance payout are based on the established formal payout 
calculations.
    Funds within a pay pool available for performance payouts are 
calculated from anticipated pay increases under the existing system and 
divided into two components, base pay and bonus. The funds within a Pay 
Pool used for base pay increases, are those that would have been 
available from within-grade increases, quality step increases and 
promotions (excluding the costs of promotions still provided under the 
banding system). This amount will be defined based on historical data 
and set between 2.0 percent-2.4 percent of total

[[Page 32992]]

salary annually. The funds available to be used for bonus payouts are 
funded separately within the constraints of the organization's overall 
award budget. This amount will be defined based on historical data and 
set between 1.0 percent-1.4 percent of total salary annually. The sum 
of these two factors is referred to as the pay pool percentage factor. 
The RDE Personnel Management Board will annually review the pay pool 
funding formula and recommend adjustments to the RDE Center Directors 
to ensure cost discipline over the life of the demonstration project. 
Cost discipline is assured within each pay pool by limiting the total 
base pay increase to the funds available, based on what would have been 
available in the General Schedule system from within-grade increases, 
quality step increases and within-band promotions. RDE Center Directors 
may reallocate the amount of funds assigned to each pay pool as 
necessary to ensure equity and to meet unusual circumstances.
8. Performance Payout Determination
    The performance payout an employee will receive is based on the 
total performance score from the Pay for Performance assessment 
process. An employee will receive a performance payout as a percentage 
of current salary. This percentage is based on the number of shares 
that equates to their final appraisal score. Shares will be awarded on 
a continuum as follows:

Score = Shares
50 = 3
40 = 2
30 = 1
21 = .1
10-20 = 0
9=0 (Performance Improvement Plan required)

    Fractional shares will be awarded for scores that fall in between 
these scores. For example: A score of 38 will equate to 1.8 shares, and 
a score of 44 will equate to 2.4 shares.
    The value of a share cannot be exactly determined until the rating 
and reconciliation process is complete. The share value is expressed as 
a percentage. The formula that computes the value of each share is 
based on the (1) value of pay pool, (2) the employee's pay, (3) the 
number of shares awarded to each employee in the pay pool, and (4) the 
total number of shares awarded in the pay pool. This formula assures 
that each employee within the pool receives a share amount equal to all 
others in the same pool who are at the same rate of basic pay and 
receiving the same score. The formula is shown in figure 3.
[GRAPHIC] [TIFF OMITTED] TN19JN01.001


Where:

F = Payout Factor; initially 3.8 percent of combined basic rates of 
pay of the assigned employees in a pay pool
SUM = Summation of entities within parenthesis
SAL = An individual's basic rate of pay
tSAL = Total of basic rates of pay in a pay pool
Pool Value = F * (tSAL)
N = Number of shares (0 to 3) earned by an individual employee based 
on his/her score (0 to 50)
tN = Total of shares earned by employees in pool

    A Pay Pool Manager is accountable for staying within pay pool 
limits. The Pay Pool Manager makes final decisions on pay increases 
and/or bonuses to individuals based on rater recommendation, the final 
score, the pay pool funds available, and the employee's current salary. 
A Pay Pool Manager may request approval from the Personnel Management 
Board at the Center level or its designee to grant a pay increase to an 
employee that is higher than the one generated by the compensation 
formula for that employee. Examples of employees who might warrant such 
consideration are those making extraordinary achievements or to provide 
accelerated compensation for a local intern.
9. Base Pay Increases and Bonuses
    The amount of money available for performance payouts is divided 
into two components, base pay increases and bonuses. The base pay and 
bonus funds are based on the pay pool funding formula established 
annually. Once the individual performance amounts have been determined, 
the next step is to determine what portion of each payout will be in 
the form of a base pay increase as opposed to a bonus payment. The 
payouts made to employees from the pay pool may be a mix of base pay 
and bonus, such that all of the allocated funds are disbursed as 
intended. To continue to provide performance incentives while also 
ensuring cost discipline, base pay increases may be limited or capped. 
Certain employees will not be able to receive the projected base pay 
increase due to base pay caps. Base pay is capped when an employee 
reaches the maximum rate of pay in an assigned pay band, when the mid-
point rule applies (see below) or when the Significant Accomplishment/
Contribution rule applies (see below). Also, for employees receiving 
retained rates above the applicable payband maximum, the entire 
performance payout will be in the form of a bonus payment.
    When capped, the total payout an employee receives will be in the 
form of a bonus versus the combination of base pay and bonus. Bonuses 
are cash payments and are not part of the basic pay for any purpose 
(e.g., lump sum payments of annual leave on separation, life insurance, 
and retirement). The maximum base pay rate under this demonstration 
project will be the unadjusted base pay rate of GS-15/Step 10, except 
for employees in Pay Band V of the E&S Occupational Family. In this 
case, the 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 ES-4.
    If the organization determines it is appropriate, it may re-
allocate a portion (up to the maximum possible amount) of the 
unexpended base pay funds for capped employees to uncapped employees. 
This re-allocation will be determined by the Pay Pool Manager. Any 
dollar increase in an employee's project base pay increase will be 
offset, dollar for dollar, by an accompanying reduction in the 
employee's project bonus payment. Thus, the employee's total 
performance payout is unchanged.
10. Mid-Point Rule
    To provide added performance incentives as an employee progresses 
through a pay band, a mid-point rule will be used to determine base pay 
increases. The mid-point rule dictates that any employee must receive a 
score of 30 or higher for their base pay to cross the salary midpoint 
of their pay band. Also, once an employee's base pay exceeds the salary 
midpoint of their band, the employee must receive a score of 30 or 
higher to receive any additional base pay increases. Any amount of an

[[Page 32993]]

employee's performance payout, not paid in the form of a base pay 
increase because of the mid-point rule, will be paid as a bonus. This 
rule effectively raises the standard of performance expected of an 
employee once the salary mid point of a band is crossed. This applies 
to all employees in every occupational family and pay band.
11. Significant Accomplishment/Contribution Rule
    The purpose of this rule is to maintain cost discipline while 
ensuring that employee payouts are in consonance with accomplishments 
and levels of responsibility. The rule will apply only to employees in 
E&S Band III whose base salary falls within the top 15 percent of the 
band. For employees meeting these criteria, the following provisions 
will apply:
    If an employee's score falls in the top third of scores received in 
his/her pay pool, he/she will receive the full allowable base pay 
increase portion of the performance payout. The balance of the payout 
will be paid as a lump sum bonus.
    If an employee's score falls in the middle third of scores received 
in his/her pay pool, the base pay increase portion will not exceed 1% 
of base salary. The balance of the payout will be paid as a lump sum 
bonus.
    If an employee's appraisal score falls in the bottom third of 
scores received in his/her pay pool, the full payout will be paid as a 
lump sum bonus.
12. Awards
    To provide additional flexibility in motivating and rewarding 
individuals and groups, some portion of the performance award budget 
will be reserved for special acts and other categories as they occur. 
Awards may include, but are not limited to, special acts, patents, 
suggestions, on the spot, and time-off. The funds available to be used 
for awards are separately funded within the constraints of the 
organization's overall award budget.
    While not directly linked to the pay for performance system, this 
additional flexibility is important to encourage outstanding 
accomplishments and innovation in accomplishing the diverse mission of 
the CECOM RDE organizations. Additionally, to foster and encourage 
teamwork among its employees, organizations may give group awards. 
Under the demonstration project, a team may elect to distribute such 
awards among themselves. Thus, a team leader or supervisor may allocate 
a sum of money to a team for outstanding performance, and the team may 
decide the individual distribution of the total dollars among 
themselves. The Commanding General, CECOM will have the authority to 
grant special act awards to covered employees of up to $10,000 IAW the 
criteria of AR 672-20, Incentive Awards.
13. General Pay Increase
    Employees, who are on a PIP at the time pay determinations are 
made, do not receive performance payouts or the General Pay Increase. 
An employee that receives an unacceptable rating of record will not 
receive any portion of the General Pay Increase or RIF service credit 
until such time as their performance improves to the acceptable level 
and remains acceptable for at least 90 days. When the employee has 
performed acceptably for at least 90 days, the General Pay Increase 
will be granted at the beginning of the next pay period after the 
supervisor authorizes its payment.
    These actions may result in a base salary that is identified in a 
lower pay band. This occurs because the minimum rates of basic pay in a 
pay band increases as the result of the General Pay Increase (5 U.S.C. 
5303). This situation (a reduction in band level with no reduction in 
pay) will not be considered an adverse action, nor will band retention 
provisions apply.
14. Reverse Feedback
    Employee feedback to supervisors is considered essential for the 
success of the Pay for Performance System. A feedback instrument for 
subordinates to anonymously evaluate the effectiveness of their 
supervisors is being developed and shall be implemented as part of the 
demonstration project. Supervisors and their managers will be provided 
the results of that feedback in a format that does not identify 
individual raters or ratings. The data will be aggregated into a 
summary and used to establish both personal and organizational 
performance development goals. The use of this type of instrument will 
help focus attention on desired leadership behaviors, structure the 
feedback in a constructive manner, and offset the power imbalance that 
often prevents supervisors from getting useful feedback from their 
employees.
15. Grievances and Disciplinary Actions
    An employee may grieve the performance rating /score received under 
the PFP system. Non-bargaining unit employees, and bargaining unit 
employees covered by a negotiated grievance procedure, which does not 
permit grievances over performance ratings, must file under 
administrative grievance procedures. Bargaining unit employees, whose 
negotiated grievance procedures cover performance-rating grievances 
must file under those negotiated procedures.
    Except where specifically waived or modified in this plan, adverse 
action procedures under 5 CFR part 752 remain unchanged.

D. Hiring Authority

1. Qualifications
    The qualifications required for placement into a position in a pay 
band within an occupational family will be determined using the OPM 
Qualification Standards Handbook for General Schedule (GS) positions. 
Since the pay bands are anchored to the GS grade levels, the minimum 
qualification requirements for a position will be the requirements 
corresponding to the lowest GS grade incorporated into that pay band. 
For example, for a position in the E&S occupational family, Pay Band II 
individuals must meet the basic requirements for a GS-5 as specified in 
the qualification standard for Professional and Scientific Positions.
    Selective factors may be established for a position in accordance 
with the OPM Qualification Standards Handbook, when determined to be 
critical to successful job performance. These factors will become part 
of the minimum requirements for the position and applicants must meet 
them in order to be eligible. If used, selective factors will be stated 
as part of the qualification requirements in vacancy announcements and 
recruiting bulletins.
2. Delegated Examining
    Competitive service positions with the CECOM RDE Demonstration 
Project will be filled through Merit Staffing or under Delegated 
Examining. The ``Rule of Three'' will be eliminated. When there are no 
more than 15 qualified applicants and no preference eligibles, all 
eligible applicants are immediately referred to the selecting official 
without rating and ranking. Rating and ranking will be required only 
when the number of qualified candidates exceeds 15 or there is a mix of 
preference and non-preference applicants. Statutes and regulations 
covering veterans' preference will be observed in the selection process 
and when rating and ranking are required. If the candidates are rated 
and ranked, a random number selection method using the application 
control number will be used to determine which applicants will be 
referred when scores are tied after the rating process. Veterans will 
be referred ahead of non-veterans within the same score.

[[Page 32994]]

3. Legal Authority
    For actions taken under the auspices of the Demonstration Project, 
the legal authority, Public Law 103-337 will be used. For all other 
actions, the CECOM RDE organizations will continue to use the nature of 
action codes and legal authority codes prescribed by OPM, DoD or DA.
4. Revisions to Term Appointments
    The CECOM RDE organizations conduct a variety of projects that 
range from three to six years. The current four-year limitation on term 
appointments often forces the termination of term employees prior to 
completion of projects they were hired to support. This disrupts the 
research and development process and affects the organization's ability 
to accomplish the mission and serve its customers.
    CECOM RDE organizations will continue to have career and career 
conditional appointments and temporary appointments not to exceed one 
year. These appointments will use existing authorities and 
entitlements. Under the demonstration project, CECOM RDE organizations 
will have the added authority to hire individuals under a modified term 
appointment. These appointments will be used to fill positions for a 
period of more than one year, but not more than a total of five years 
when the need for an 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 five, 
rather than four years. RDE Directors are authorized to extend a term 
appointment one additional year.
    Employees hired under the modified term appointment authority are 
in a non-permanent status, but may be eligible for conversion to 
career-conditional appointments. To be converted, the employee must (1) 
have been selected for the term position under competitive procedures, 
with the announcement specifically stating that the individual(s) 
selected for the term position may be eligible for conversion to a 
career-conditional appointment at a later date; (2) have served two 
years of continuous service in the term position; (3) be selected under 
merit promotion procedures for the permanent position; and (4) be 
performing at the acceptable level of performance with a current score 
of 30 or greater.
    Employees serving under regular 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 appointments if they (1) 
have served two years of continuous service in the term position; (2) 
are selected under merit promotion procedures for the permanent 
position; and (3) are performing at the acceptable level of performance 
with a current score of 30 or greater (or equivalent if not yet rated 
under the demonstration project). 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.
5. Extended Probationary Period
    The current one year probationary period will be extended to three 
years for all newly hired permanent career-conditional employees in the 
Engineering and Science occupational family. The purpose of extending 
the probationary period is to allow supervisors an adequate period of 
time to fully evaluate an employee's ability to complete a cycle of 
work and to fully assess an employee's contribution and conduct. The 
three-year probationary period will apply only to new hires subject to 
a probationary period.
    If a probationary employee's performance is determined to be 
satisfactory at a point prior to the end of the three year probationary 
period, a supervisor has the option of ending the probationary period 
at an earlier date, but not before the employee has completed one year 
of continuous service. If the probationary period is terminated before 
the end of the three-year period, the immediate supervisor will provide 
written reasons for his/her decision to the next level of supervision 
for concurrence prior to implementing the action. Aside from extending 
the time period for all newly hired permanent career-conditional 
employees in the Engineering and Science occupational family, 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.
6. Termination of Probationary Employees
    Probationary employees may be terminated when they fail to 
demonstrate proper conduct, technical competency, and/or acceptable 
performance for continued employment. When a supervisor decides to 
terminate an employee during the probationary period because his/her 
work performance or conduct is unacceptable, the supervisor shall 
terminate the employee's services by written notification stating the 
reasons for termination and the effective date of the action. The 
information in the notice shall at a minimum, consist of the 
supervisor's conclusions as to the inadequacies of his/her performance 
or conduct, or those conditions arising prior to appointment that 
support the termination.
7. Supervisory Probationary Periods
    Supervisory probationary periods will be made consistent with 5 CFR 
315. Employees that have successfully completed the initial 
probationary period will be required to complete an additional one-year 
probationary period for initial appointment to a supervisory position. 
If, during this probationary period, the decision is made to return the 
employee to a non-supervisory position for reasons related to 
supervisory performance, the employee will be returned to a comparable 
position of no lower pay than the position from which they were 
promoted or reassigned.
8. Volunteer Emeritus Corps
    Under the demonstration project, RDE Directors will have the 
authority to offer retired or separated employees voluntary positions. 
Voluntary Emeritus Corps 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 
buyouts or severance payments based on an earlier separation from 
Federal service.
    The Voluntary Emeritus Corps will ensure continued quality services 
while reducing the overall salary line by allowing higher paid 
employees to accept retirement incentives with the opportunity to 
retain a presence in the RDE community. The program will be beneficial 
during manpower reductions as employees accept retirement and return to 
provide a continuing source of corporate knowledge and valuable on-the-
job training or mentoring to less-experienced employees.
    To be accepted into the emeritus corps, a volunteer must be 
recommended by an RDE manager to a directorate director. Everyone who 
applies is not entitled to an emeritus position. The responsible 
director must

[[Page 32995]]

document acceptance or rejection of the applicant. If accepted, the 
documentation must be retained throughout the assignment. If rejected, 
documentation will be maintained for two years.
    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 break or 
mandatory waiting period.
    Voluntary Emeritus Corps 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 
volunteers may be required to submit a financial disclosure form 
annually. The same rules that currently apply to source selection 
members will apply to volunteers.
    An agreement will be established between the volunteer, the 
responsible director, and the Civilian Personnel Operations Center 
(CPOC). 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, is without compensation, and the 
volunteer waives any claims against the Government based on the 
voluntary assignment;
    (b) A statement that the volunteer will be considered a federal 
employee only for the purpose of injury compensation;
    (c) The 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 organization (travel, administrative 
support, office space, and supplies);
    (f) A statement of duties;
    (g) A statement providing that 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 volunteer;
    (h) A provision allowing either party to void the agreement with 2 
working days written notice;
    (i) The level of security access required by the volunteer (any 
security clearance required by the position will be managed by the 
employing organization;
    (j) The provision that any publication(s) resulting from his/her 
work will be submitted to the RDE Center Directors for review and 
approval;
    (k) A statement that he/she accepts accountability for loss or 
damage to Government property occasioned by his/her negligence or 
willful action;
    (l) A statement that his/her activities on the premises will 
conform to the regulations and requirements of the organization;
    (m) A statement that he/she will not release any sensitive or 
proprietary information without the written approval of the employing 
organization and further agrees to execute additional non-disclosure 
agreements as appropriate, if required, by the nature of the 
anticipated services; and,
    (n) A statement that he/she agrees to disclose any inventions made 
in the course of work performed at the RDEC/SEC. The RDE Center 
Directors have the option to obtain title to any such invention on 
behalf of the U.S. Government. Should the RDE Center Directors elect 
not to take title, the RDE Centers/ISEC shall at a minimum retain a 
non-exclusive, irrevocable, paid up, royalty-free license to practice 
or have practiced the invention worldwide on behalf of the U.S. 
Government.
    Exceptions to the provisions in this procedure may be granted by 
the RDE Center Directors on a case by case basis.

E. Internal Placement and Pay Setting

1. Promotions
    A promotion is the movement of an employee to a higher pay band in 
the same occupational family or to another pay band in a different 
occupational family, wherein the band in the new family has a higher 
maximum salary than the band from which the employee is moving. The 
move from one band to another must result in an increase in the 
employee's salary to be considered a promotion. Positions with known 
promotion potential to a specific band within an occupational family 
will be identified when they are filled. Not all positions in an 
occupational family will have promotion potential to the same band. 
Movement from one occupational family to another will depend upon 
individual knowledge, skills, and abilities, qualifications and needs 
of the organization. Supervisors may consider promoting employees at 
any time since promotions are not tied to the pay for performance 
system. Progression within a pay band is based upon performance pay 
increases; as such, these actions are not considered promotions and are 
not subject to the provisions of this section. Except as specified 
below, promotions will be processed under competitive procedures in 
accordance with merit principles and requirements and the local merit 
promotion plan.
    To be promoted competitively or non-competitively from one band to 
the next, an employee must meet the minimum qualifications for the job 
and have a current performance rating , the employee will be treated 
the same as an employee with an ``acceptable'' rating as long as there 
is no known adverse performance information.
    The following actions are excepted from competitive procedures:
    (a) Re-promotion to a position which is in the same pay band or GS 
equivalent 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 reduction in force 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) A promotion due to the reclassification of positions based on 
accretion (addition) of duties.
    (g) A promotion resulting from the correction of an initial 
classification error or the issuance of a new classification standard.
    (h) Consideration of a candidate who did not receive proper 
consideration in a competitive promotion action.
    (i) Impact of person in the job and Factor IV process (application 
of the Research Grade Evaluation Guide, Equipment Development Grade 
Evaluation Guide, Part III, or similar guides) promotions.
2. Supervisory and Team Leader Pay Adjustments
    Supervisory and team leader pay adjustments may be approved by the 
RDE Center Directors and the ISEC Commander based on the recommendation 
of the Personnel Management Board at the Center level to compensate 
employees with supervisory or team leader responsibilities. Only 
employees in supervisory or team leader positions as defined by the OPM 
GS Supervisory Guide or GS Leader Grade Evaluation Guide may be 
considered for the pay adjustment. These pay adjustments are funded 
separately from Performance Pay Pools. These pay adjustments are 
increases to the basic rate of pay, ranging up to 10 percent of that 
pay rate for supervisors and up to

[[Page 32996]]

5 percent of that pay rate for team leaders. Pay adjustments are 
subject to the constraint that the adjustment may not cause the 
employee's basic rate of pay to exceed the pay band maximum rate. 
Criteria to be considered in determining the pay increase percentage 
include: (1) Needs of the organization to attract, retain, and motivate 
high quality supervisors/team leaders; (2) budgetary constraints; (3) 
years and quality of related experience; (4) relevant training; (5) 
performance appraisals and experience as a supervisor/team leader; (6) 
organizational level of position; and (7) impact on the organization. 
The pay adjustment will not apply to employees in Pay Band V of the E&S 
Occupational Family.
    Conditions, after the date of conversion into the demonstration 
project, under which the application of a pay adjustment may be 
considered, are as follows:
    (1) New hires into supervisory/team leader positions will have 
their initial rate of base pay set at the supervisor's discretion 
within the pay range of the applicable pay band. This rate of pay may 
include a pay adjustment determined by using the ranges and criteria 
outlined above.
    (2) A career employee selected for a supervisory/team leader 
position that is within the employee's current pay band may also be 
considered for a pay adjustment. If a supervisor/team leader is already 
authorized a pay adjustment and is subsequently selected for another 
supervisor/team leader position, within the same pay band, then the pay 
adjustment will be re-determined.
    Supervisors/team leaders, 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 
eligible for a pay adjustment.
    The supervisor/team leader pay adjustment will be reviewed 
annually, with possible increases or decreases based on the appraisal 
scores for the performance elements Team/Project Leadership and 
Supervision/EEO. The initial dollar amount of a pay adjustment will be 
removed when the employee voluntarily leaves the position. The 
cancellation of the adjustment under these circumstances is not an 
adverse action and is not subject to appeal. If an employee is removed 
from a supervisory/team leader position for personal cause (performance 
or conduct), the adjustment will be removed under adverse action 
procedures. However, if an employee is removed from a non-probationary 
supervisory/team leader position for conditions other than voluntary or 
for personal cause, then the grade and pay retention provisions of 5 
CFR part 536 will prevail where ``pay band level'' is substituted for 
``grade.''
3. Supervisory/Team Leader Pay Differentials
    Supervisory and team leader pay differentials may be used, by RDE 
Center Directors and the Commander ISEC, to provide an incentive and 
reward supervisors and team leaders as defined by the OPM GS 
Supervisory Guide and GS Leader Grade Evaluation Guide. Pay 
differentials are not funded from Performance Pay Pools. A pay 
differential is a cash incentive that may range up to 10 percent of 
base pay for supervisors and up to 5 percent of base pay for team 
leaders. It is paid on a pay period basis with a specified not-to-
exceed (NTE) of one year or less and is not included as part of the 
base pay. Criteria to be considered in determining the amount of the 
pay differential are the same as those identified for Supervisory/Team 
Leader Pay Adjustments. The pay differential will not apply to 
employees in Pay Band V of the E&S occupational family.
    The pay differential may be considered, either during conversion 
into or after initiation of the demonstration project, if the 
supervisor/team leader has subordinate employees in the same pay band. 
The differential must be terminated if the employee is removed from a 
supervisory/team leader position, regardless of cause.
    After initiation of the demonstration project, all personnel 
actions involving a supervisory/team leader differential will require a 
statement signed by the employee acknowledging that the differential 
may be terminated or reduced at the discretion of the RDE Center 
Directors or the Commander ISEC. The termination or reduction of the 
differential is not an adverse action and is not subject to appeal.
4. Pay Administration
    Pay administration policies will be established by the RDE 
Personnel Management Board, which conform to basic governmental pay 
fixing policy; however, these policies will be exempt from Army 
Regulations or CECOM local pay fixing policies. Upon initial 
appointment, the individual's pay may be set anywhere within the band 
level consistent with the special qualifications of the individual and 
the unique requirements of the position. These special qualifications 
may be in the form of education, training, experience, or any 
combination thereof that is pertinent to the position in which the 
employee is being placed. Guidance on hiring salaries will be 
established by the RDE Personnel Management Board.
    CECOM RDE organizations may make full use of recruitment, retention 
and relocation payments as currently provided for by OPM.
    Highest Previous Rate (HPR) will be considered in placement actions 
authorized under rules similar to the HPR rules in 5 CFR 531.203 (c) 
and (d). Use of HPR will be at the supervisor's discretion, but if used 
are subject to policies established by the RDE Personnel Management 
Board. The pay retention provisions of 5 U.S.C. 5363 and 5 CFR 536.101 
will apply to this plan except where waived or modified as specified in 
the waiver section. RDE Center Directors may also grant pay retention 
to employees who meet general eligibility requirements, but do not have 
specific entitlement by law, provided they are not specifically 
excluded.
5. Pay and Compensation Ceilings
    An employee's total monetary compensation paid in a calendar year 
may not exceed the basic pay of level I of the Executive Schedule 
consistent with 5 U.S.C. 5307 and 5 CFR Part 530 Subpart B. In 
addition, each pay band will have its own pay ceiling, just as grades 
do in the current system. Pay rates for the various pay bands will be 
directly keyed to the GS rates, except the maximum range for Pay Band V 
of the Engineer and Scientist occupational family which cannot exceed 
ES-4. Basic pay will be limited to the maximum rates payable for each 
pay band, except for retained rates.
6. Pay Setting for Promotion
    The minimum basic pay increase upon promotion to a higher pay band 
will be 6 percent or the minimum rate of the new pay band, whichever is 
greater. The maximum amount of pay increases will not exceed $10,000, 
or other such amount as established by the RDE Personnel Management 
Board.
    When a temporary promotion is terminated, the employee's pay 
entitlements will be re-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 the RDE Personnel Management Board. In no case may those 
adjustments increase the pay for the position of record beyond the 
applicable pay range maximum rate.

[[Page 32997]]

7. Pay Setting for Demotion or Placement in a Lower Pay Band
    A demotion is a placement into a lower pay band within the same 
occupational family or placement into a pay band in a different 
occupational family with a lower salary. Demotions may be for cause 
(performance or conduct) or for reasons other than cause (e.g., erosion 
of duties, reclassification of duties to a lower pay band, application 
under competitive announcements or at the employee's request, or 
placement actions resulting from RIF procedures). Employees demoted for 
cause are not entitled to pay retention. Employees demoted for reasons 
other than cause may be entitled to pay retention in accordance with 
pay fixing policies.
    Employees who receive an unacceptable rating or who are on a 
performance improvement plan at the time pay determinations are made, 
do not receive performance payouts or the general pay increase. This 
action may result in a base salary that is identified in a lower pay 
band. This occurs because the minimum rates of basic pay in a pay band 
increase as the result of the general pay increase (5 U.S.C. 5303). 
This situation, (a reduction in band level with no reduction in pay) 
will not be considered an adverse performance based action, nor will 
band retention provisions apply.
8. 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. 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. Upon conversion, 
the demonstration base rate will be established by dividing the 
employee's 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 this:
    [GRAPHIC] [TIFF OMITTED] TN19JN01.002
    
9. Application of Future Special Salary Rates
    The Office of Personnel Management (OPM) may approve special salary 
rates (SSR) that would apply to a group of employees already converted 
to the demonstration project pay band structure if those employees 
remained in the General Schedule. If such a special rate is 
established, the pay of equivalent demonstration project employees 
would be reviewed and may be adjusted as appropriate to accommodate the 
salary increase. An increase provided under this authority is not an 
equivalent increase, as defined by 5 CFR 531.403.
10. Simplified Assignment Process
    Today's environment of downsizing and workforce fluctuations 
mandates that the organization have maximum flexibility to assign 
duties and responsibilities to individuals. Pay banding can be used to 
address this need, as it enables the organization to have maximum 
flexibility to assign an employee with no change in basic pay, within 
broad descriptions, consistent with the needs of the organization, and 
the individual's qualifications and rank and level. Subsequent 
assignments to projects, tasks, or functions anywhere within the 
organization requiring the same level and area of expertise, and 
qualifications would not constitute an assignment outside the scope or 
coverage of the current position description. For instance, a technical 
expert can be assigned to any project, task, or function requiring 
similar technical expertise. Likewise, a manager could be assigned to 
manage any similar function or organization consistent with that 
individual's qualifications. This flexibility allows broader latitude 
in assignments and further streamlines the administrative process and 
system.
11. Details
    Under this plan employees may be detailed to a position in the same 
band (requiring a different level of expertise and qualifications) or 
lower pay band (or its equivalent in a different occupational family) 
for up to one year. Details may be implemented through an official 
personnel action to cover the one-year period. Details to a position in 
a higher pay band up to 180 days will be made non-competitively. Beyond 
180 days requires competitive procedures.

F. Employee Development

1. Expanded Developmental Opportunity Program
    The Expanded Developmental Opportunity Program will be available to 
all demonstration project employees. Expanded developmental 
opportunities complement existing developmental opportunities such as 
long-term training, rotational job assignments,

[[Page 32998]]

developmental assignments to AMC/Army/DoD and self directed study via 
correspondence courses and local colleges and universities. Each 
developmental opportunity must result in a product, service, report or 
study that will benefit the RDE or customer organization as well as 
increase the employee's individual effectiveness. The developmental 
opportunity period will not result in loss of (or reduction) in basic 
pay, leave to which the employee is otherwise entitled, or credit for 
service time. The positions of employees on expanded developmental 
opportunities may be back-filled (i.e., with temporarily assigned, 
detailed or promoted employees or with term employees). However, that 
position or its equivalent must be made available to the employee upon 
return from the expanded developmental opportunity. The RDE Personnel 
Management Board will provide written guidance for employees on 
application procedures and develop a process that will be used to 
review and evaluate applicants for development opportunities.
    a. Sabbaticals. RDE Center Directors will have the authority to 
grant paid or unpaid sabbaticals to all career employees. The purpose 
of a sabbatical will be to permit employees to engage in study or 
uncompensated work experience that will benefit the organization and 
contribute to the employee's development and effectiveness. Each 
sabbatical must result in a product, service, report, or study that 
will benefit the CECOM RDE mission as well as increase the employee's 
individual effectiveness. Various learning or developmental experiences 
may be considered, such as advanced academic teaching; study; research; 
self-directed or guided study; and on-the-job work experience with 
public, private, commercial, or private non-profit organization.
    Paid sabbaticals of up to 12 months in duration and unpaid 
sabbaticals of up to 6 months in a calendar year may be granted to an 
employee in any 7-year period. Employees will be eligible to request a 
sabbatical after completion of seven years of Federal service. 
Employees approved for a paid sabbatical must sign a service obligation 
agreement to continue in service in the CECOM RDE for a period of three 
times the length of the sabbatical. If an employee voluntarily leaves 
the CECOM RDE organization before the service obligation is completed 
he/she is liable for repayment of expenses associated with training 
during the sabbatical such as, registration fees, tuition and 
matriculation fees, library and laboratory fees, purchase or rental of 
books, materials, supplies, travel, per diem, and miscellaneous other 
related training program costs. Expenses do not include salary costs. 
The RDE Center Directors have the authority to waive this requirement.
    Specific procedures will be developed for processing sabbatical 
applications upon implementation of the demonstration project.
    b. Critical Skills Training (Training for Degrees). Training is an 
essential component of an organization that requires continuous 
acquisition of advanced and specialized knowledge. Degree training 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 not permitted for 
non-shortage occupations involving critical skills.
    The CECOM RDE organizations are expanding the authority to provide 
degree payment for non-shortage occupations for purposes of meeting 
critical skill requirements, to ensure continuous acquisition of 
advanced specialized knowledge essential to the organization, and to 
recruit and retain personnel critical to the present and future 
requirements of the organization. Degree or certificate payment may not 
be authorized where it would result in a tax liability for the employee 
without the employee's express and written consent. Any variance from 
this policy must be rigorously determined and documented. Guidelines 
will be developed to ensure competitive approval of degree payment and 
that such decisions are fully documented. Employees approved for degree 
training must sign a service obligation agreement to continue in 
service in a CECOM RDE organization for a period of three times the 
length of the training period. If an employee voluntarily leaves the 
CECOM RDE organization before the service obligation is completed he/
she is liable for repayment. The repayment amount will be based on the 
additional expenses or direct costs of the training such as, 
registration fees, tuition and matriculation fees, library and 
laboratory fees, purchase or rental of books, materials, supplies, 
travel, per diem, and miscellaneous other related training program 
costs. The RDE Center Directors have the authority to waive this 
requirement.

G. Reduction-in-Force (RIF) Procedures

    RIF procedures will be used when a CECOM RDE employee faces 
separation or downgrading due to lack of work, shortage of funds, 
reorganization, insufficient personnel ceiling, the exercise of re-
employment or restoration rights, or furlough for more than 30 calendar 
days or more than 22 discontinuous days. The procedures in 5 CFR 351 
will be followed with slight modifications pertaining to the 
competitive areas, assignment rights, the calculation of adjusted 
service computation date and grade/pay retention. Modified term 
appointment employees are in Tenure Group III for RIF purposes. RIF 
procedures are not required when separating these employees when their 
appointments expire.
1. Competitive Areas
    Separate competitive areas for RIF purposes will be established at 
each geographic location. Separate RIF competitive areas for demo and 
non-demo employees will be established at each geographic location. 
Bumps and retreats will occur only within the same competitive area and 
only to positions for which the employee meets all qualification 
standards including medical and/or physical qualifications.
    Within each competitive area, competitive levels will be 
established based on the occupational family, pay band and series which 
are similar enough in duties and qualifications that employees can 
perform the duties and responsibilities of any other position in the 
competitive level upon assignment to it, without any loss of 
productivity beyond what is normally expected.
2. Assignment Rights
    An employee may displace another employee by bump or retreat to one 
band below the employee's existing band. A preference eligible with a 
compensable service-connected disability of 30 percent or more may 
retreat to positions two bands (or equivalent to five grades) below 
his/her current band.

3. Crediting Performance in Reductions in Force (RIF)

    Reductions in force are accomplished using the existing procedures 
with the retention factors of: Tenure, veteran's preference and length 
of service as adjusted by performance ratings, in that order. However, 
the additional RIF service credit for performance will be based on the 
last three total performance scores during the preceding 4 years and 
will be applied as follows:

Total Performance Scores = Years of Service Credit
    48-50 = 10
    45-47 = 9

[[Page 32999]]

    42-44 = 8
    39-41 = 7
    36-38 = 6
    33-35 = 5
    30-32 = 4
    27-29 = 3
    24-26 = 2
    20-23 = 1

    A score of below 20 adds no credit for RIF retention.

(Note: The additional years of service credit are added, not 
averaged. Ratings given under non-demonstration systems will be 
converted to the demonstration-rating scheme and provided the 
equivalent rating credit.)

    Employees who have been rated under different patterns of summary 
rating levels will receive RIF appraisal credit based on the following:
    If there are any ratings to be credited for the RIF given under a 
rating system, which includes one or more levels above fully successful 
(Level 3), employee will receive:

10 years for Level 5
7 years for Level 4
3 years for Level 3

    If an employee comes from a system with no levels above Fully 
Successful (Level 3), they will receive credit based on the 
demonstration project's modal score for the employee's competitive 
area.
    In some cases, an employee may not have three (3) ratings of 
record. If an employee has less than three annual ratings of record, 
then for each missing rating, an average of the scores received for the 
past four years will be used. When the score is calculated to be a 
decimal, it should be rounded to the next higher whole number using the 
method described in paragraph III.C.4. For an employee who has no 
ratings of record, all credit will be based on the repeated use of a 
single modal rating from the most recently completed appraisal period 
on record.
    An employee who has received a written decision that their 
performance is unacceptable has no bump or retreat rights. Employees 
who have been demoted for unacceptable performance, and as of the date 
of the issuance of the RIF notice have not received a performance 
rating in the position to which demoted, will receive the same 
additional retention service credit granted for a level 3 rating or 
record. An employee who has received an acceptable rating following a 
PIP will have that rating considered as the current rating of record.
    An employee with a current unacceptable rating of record has 
assignment rights only to a position held by another employee who has 
an unacceptable rating of record.
4. Grade and Pay Retention
    Except where waived or modified by this plan, grade and pay 
retention will follow current law and regulations, (e.g. occupational 
family pay bands will substitute for grade).

IV. Implementation Training

    Critical to the success of the demonstration project is the 
training developed to ensure understanding of the broad concepts and 
finer details needed to implement and successfully execute this 
project. Pay banding, a new job classification and performance 
management system all represent a significant cultural change to the 
organization. Training will be tailored to fit the requirements of 
every employee and will fully address employee concerns to ensure a 
comprehensive understanding of the program. Training will be required 
both prior to implementation and at various times during the life of 
the demo.
    A training program will begin not later than 90 days prior to 
implementation and will include modules tailored for employees, 
supervisors, senior managers, and administrative staff. Typical modules 
are:

An Overview of the Personnel System
How Employees are converted into and out of the System
Pay Banding
The Pay for Performance system
Defining Performance Objectives
How to Assign Weights
Assessing Performance--Giving Feedback
New Position Descriptions
Demonstration Project Administration and Formal Evaluation

Various types of training are being considered including, videos, on-
line tutorials, chain teaching and train the trainer concepts.

V. Conversion

A. Conversion to the Demonstration Project

    Initial entry into the demonstration project will be accomplished 
through a full employee-protection approach that ensures each employee 
an initial place in the appropriate pay band without loss of pay. 
Employees serving under regular term appointments at the time of the 
implementation of the demonstration project will be converted to the 
modified term appointment if all requirements in III.D.4. (Revisions to 
Term Appointments) have been satisfied. Position announcements, etc., 
will not be required for these term appointments.
    Conversion from current GS/GM grade and pay into the new pay band 
system will be accomplished upon implementation of the demonstration 
project. Each employee's initial total salary under the demonstration 
project will equal the total salary received immediately before 
conversion. Special conversion rules apply to special rate employees, 
which are described in III.E.8. (Staffing Supplements). Employees who 
enter the demonstration project later by lateral reassignment or 
transfer will be subject to parallel pay conversion rules. 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 covered by special salary rates prior to the 
demonstration project will no longer be considered a special rate 
employee under the demonstration project. These employees will, 
therefore, be eligible for full locality pay. The adjusted salaries of 
these employees will not change. Rather, the employees will receive a 
new basic pay rate computed by dividing their adjusted basic pay 
(higher of special rate or locality rate) by the locality pay factor 
for their area. A full locality adjustment will then be added to the 
new basic pay rate. Adverse action and pay retention provisions will 
not apply to the conversion process as there will be no change in total 
salary.
    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 grade or pay band 
that corresponds to the position of record. When a temporary promotion 
is terminated, pay will be determined based on the position of record, 
with appropriate adjustments to reflect pay events during the temporary 
promotion, subject to the specific policies and rules established by 
the CECOM RDE. In no case may those adjustments increase the pay for 
the position of record beyond the applicable pay range maximum rate. 
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.
    During the first 12 months following conversion, employees will 
receive pay increases for non-competitive

[[Page 33000]]

promotion equivalents when the grade level of the promotion is 
encompassed within the same pay band, the employee's performance 
warrants the promotion and promotions would have otherwise occurred 
during that period. Employees who receive an in-level promotion at the 
time of conversion will not receive a prorated step increase equivalent 
as defined below.
    Under the current pay structure, employees progress through their 
assigned grade in step increments. Since this system is being replaced 
under the demonstration project, employees will be awarded that portion 
of the next higher step they have completed up until the effective date 
of implementation. As under the current system, supervisors will be 
able to withhold these partial step increases if the employee's 
performance is below an acceptable level of competence.
    Rules governing WGIs under the current Army performance plan will 
continue in effect until the implementation date. Adjustments to the 
employee's base salary for WGI equity will be computed effective the 
date of implementation to coincide with the beginning of the first 
formal PFP assessment cycle. WGI equity will be acknowledged by 
increasing base salaries by a prorated share based upon the number of 
weeks an employee has completed toward the next higher step. Payment 
will equal the value of the employee's next WGI times the proportion of 
the waiting period completed (weeks completed in waiting period/weeks 
in the waiting period) at the time of conversion. Employees at step 10, 
or receiving retained rates, on the day of implementation will not be 
eligible for WGI equity adjustments since they are already at or above 
the top of the step scale. Employees serving on retained grade will 
receive WGI equity adjustments provided they are not at step 10 or 
receiving a retained rate.

B. Conversion Out of the Demonstration Project

    When a participating organization, or other substantial group of 
employees withdraws from the demonstration project before the end of 
the first annual appraisal cycle for that organization, the affected 
employees will normally return to the same positions (i.e., same grade, 
series, duties, responsibilities, and qualifications) that these 
employees encumbered before they were placed into the demonstration. 
The beginning date of the next within-grade increase (WGI) waiting 
period will be the effective date of the organization's termination of 
participation in the demonstration. When appropriate, these employees 
will be provided pay retention per the conversion procedures below. For 
example, before the demonstration, consider a situation in which one 
employee previously held a GS-15 official position of record, and a 
second employee held a GS-14 official position of record. In the 
demonstration both employees were on the same generic official position 
description. After conversion from the demonstration back to the former 
system, the GS-15 employee is returned to a GS-15 official position of 
record, while the second employee is returned to the same GS-14 
official position of record that the employee held before the 
demonstration, even though the GS-14 employee may be receiving retained 
pay based on a GS-15 rate determined by application of the pay 
administration provisions of the conversion out procedure, below. 
Exceptions to the above: (1) Employees who have been permanently 
assigned to a higher payband than the payband to which assigned upon 
entry into the demonstration project, will exit the project under 
normal conversion rules (for example, the employee who has been 
permanently promoted while in the project would exit under the normal 
conversion out procedures); (2) employees who enter the project under 
an initial appointment to the Federal government would exit the project 
under the normal conversion out rules, since they had not occupied a 
General Schedule position upon which to return; (3) employees who move 
into the demonstration project after the initial organizational 
conversion into the project also would have their pay set in accordance 
with the normal conversion out rules; and (4) cases that present 
similar anomalies should be referred to the demonstration project 
office for advice and assistance.
    When a participating organization withdraws from the demonstration 
project after the end of the first annual appraisal cycle for that 
organization, management shall apply the normal conversion rules for 
determining an employee's converted GS grade and pay rate. The 
converted GS grade and pay rate are deemed to be in effect immediately 
before the employee leaves the demonstration project for the purpose of 
setting the employee's pay in the new GS position. Care must be taken 
to ensure that the resulting GS positions are accurately described and 
properly classified.
    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 the GS-
equivalent rate of pay. The converted GS grade and GS rate 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 rate will 
become the employee's actual GS grade and rates after leaving the 
demonstration project (before any other action). For transfers, 
promotions, and other actions, the converted GS grade and rate will be 
used in applying any GS pay administration rules applicable in 
connection with the employee's movement out of the project (e.g., 
promotion rules, highest previous rate rules, pay retention rules), as 
if the GS converted grade and rate 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) is compared with 
step 4 rates in the highest applicable GS rate range. (For this 
purpose, a GS rate range includes a rate in (1) the GS base schedule, 
(2) the locality rate schedule for the locality pay area in which the 
position is located, or (3) 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 is lower than the 
applicable step 4 rate of the highest grade, the adjusted rate is 
compared with the step 4 rate of the second highest grade in the 
employee's pay band. If the employee's adjusted rate 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

[[Page 33001]]

employee's adjusted project rate 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 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 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 
to 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) is 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.)
    (c) If the highest applicable GS rate range is a locality pay rate 
range, the employee's adjusted project rate is converted to a GS 
locality rate of pay. If this rate falls between two steps in the 
locality-adjusted schedule, the rate 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).
    (e) E&S Pay Band V Employees: An employee in Pay Band V of the E&S 
Occupational Family will convert out of the demonstration project at 
the GS-15 level. Procedures will be developed to ensure that employees 
entering Pay Band V understand that if they leave the demonstration 
project and their adjusted project 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 V 
employees paid below the adjusted GS-15, Step 10 rate, the converted 
rates will be set in accordance with paragraph b.
    (f) Employees with Pay Retention: If an employee is receiving a 
retained rate under the demonstration project, the employee's GS-
equivalent grade is the highest grade encompassed in his or her band 
level. OPM will prescribe a procedure for determining the GS-equivalent 
pay rate for an employee retaining a rate under the demonstration 
project.
3. Within Grade Increase--Equivalent Increase Determinations
    Service under the demonstration project 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).
4. Personnel Administration
    All personnel laws, regulations, and guidelines not waived by this 
plan will remain in effect. Basic employee rights will be safeguarded 
and merit principles will be maintained. Servicing CPOCs/CPACs will 
continue to process personnel-related actions and provide consultative 
and other appropriate services.
5. Automation
    The CECOM RDE organizations will continue to use the Defense 
Civilian Personnel Data System (DCPDS) for the processing of personnel-
related data. Payroll servicing will continue from the respective 
payroll offices.
    Local automated systems will be developed to support computation of 
performance related pay increases and awards and other personnel 
processes and systems associated with this project.
6. Experimentation and Revision
    Many aspects of a demonstration project are experimental. 
Modifications may be made from time to time as experience is gained, 
results are analyzed, and conclusions are reached on how the new system 
is working. The provisions of this project plan will not be modified, 
duplicated in organizations not listed in the project plan, or extended 
to individuals or groups of employees not included in the project plan 
without the approval of the Deputy Assistant Secretary of Defense 
(Civilian Personnel Policy). ODASD(CPP) will inform DA of requirements 
for notification to stakeholders, which may include Congress, 
employees, labor organizations, and the public. The extent of 
notification requirements will depend on the nature and extent of the 
requested project modification. As a minimum, however, major changes 
and modifications will be published in the Federal Register.

VI. Project Duration

    Public Law 103-337 removed any mandatory expiration date for this 
demonstration. CECOM, DA and DoD will ensure this project is evaluated 
for the first five years after implementation in accordance with 5 
U.S.C. 4703. Modifications to the original evaluation plan or any new 
evaluation will ensure the project is evaluated for its effectiveness, 
its impact on mission and any potential adverse impact on any employee 
groups. 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 
demonstration will be reexamined for permanent implementation, 
modification and additional testing, or termination of the entire 
demonstration project.

VII. Evaluation Plan

A. Overview

    Chapter 47 of 5 U.S.C. requires that an evaluation be performed to 
measure the effectiveness of the proposed demonstration project, and 
its impact on improving public management. A comprehensive evaluation 
plan for the entire demonstration program, originally covering 24 DoD 
laboratories, was developed by a joint OPM/DoD Evaluation Committee in 
1995. This plan was submitted to the Office of Defense Research & 
Engineering and was subsequently approved. The main purpose of the 
evaluation is to

[[Page 33002]]

determine whether the waivers granted result in a more effective 
personnel system and improvements in ultimate outcomes (i.e. 
organizational effectiveness, mission accomplishment, and customer 
satisfaction).

B. Evaluation Model

    Appendix D shows an intervention model for the evaluation of the 
demonstration project. The model is designated to evaluate two levels 
of organizational performance; intermediate and ultimate outcomes. The 
intermediate outcomes are defined as the results from specific 
personnel system changes and the associated waivers of law and 
regulation expected to improve human resource (HR) management (i.e. 
cost, quality, timeliness). The ultimate outcomes are determined 
through improved organizational performance, mission accomplishment, 
and customer satisfaction. Although it is not possible to establish a 
direct causal link between changes in the HR management system and 
organizational effectiveness, it is hypothesized that the new HR system 
will contribute to improved organizational effectiveness.
    Organizational performance measures established by the 
organization, will be used to evaluate the impact of a new HR system on 
the ultimate outcomes. The evaluation of the new HR system for any 
given organization will take into account the influence of three 
factors on organizational performance: context, degree of 
implementation, and support of implementation. The context factor 
refers to the impact which intervening variables (i.e., downsizing, 
changes in mission, or the economy) can have on the effectiveness of 
the program. The degree of implementation considers: (1) The extent to 
which the proposed HR changes are given a fair trial period; (2) the 
extent to which the proposed changes are implemented; and (3) the 
extent to which the proposed changes conform to the HR interventions as 
planned. The support of implementation factor accounts for the impact 
that factors such as training, internal regulations and automated 
support systems have on the support available for program 
implementation. The support for program implementation factor can also 
be affected by the personal characteristics (e.g. attitudes) of 
individuals who are implementing the program.
    The degree to which the project is implemented and operated will be 
tracked to ensure that the evaluation results reflect the project as it 
was intended. Data will be collected to measure changes in both 
intermediate and ultimate outcomes, as well as any unintended outcomes, 
which may happen as a result of any organizational change. In addition, 
the evaluation will track the impact of the project and its 
interventions on veterans and other EEO groups, the Merit Systems 
Principles, and the Prohibited Personnel Practices. Additional measures 
may be added to the model in the event that changes or modifications 
are made to the demonstration plan.
    The intervention model at Appendix D will be used to measure the 
effectiveness of the personnel system interventions implemented. The 
intervention model specifies each personnel system change or 
``intervention'' that will be measured and shows: (1) The expected 
effects of the intervention, (2) the corresponding measures, and (3) 
the data sources for obtaining the measures. Although the model makes 
predictions about the outcomes of specific intervention, causal 
attributions about the full impact of specific interventions will not 
always be possible for several reasons. For example, many of the 
initiatives are expected to interact with each other and contribute to 
the same outcomes. In addition, the impact of changes in the HR system 
may be mitigated by context variables (e.g. the job market, 
legislation, and internal support systems) or support factors (e.g. 
training, automation support systems).

C. Evaluation

    A modified quasi-experimental design will be used for the 
evaluation of the S&T Personnel Demonstration Program. Because most of 
the eligible laboratories are participating in the program, a Title 5 
U.S.C. comparison group will be compiled from the Civilian Personnel 
Data File (CPDF). This comparison group will consist of workforce data 
from Government-wide research organizations in civilian Federal 
agencies with missions and job series matching those in the DoD 
laboratories. This comparison group will be used primarily in the 
analysis of pay banding costs and turnover rates. The original ``China 
Lake'' project will serve as a second comparison group which can be 
used as a benchmark representing a stable pay banding system.

D. Method of Data Collection

    Data from several sources will be used in the evaluation. 
Information from existing management information systems and from 
personnel office records will be supplemented with perceptual survey 
data from employees to assess the effectiveness and perception of the 
project. The multiple sources of data collection will provide a more 
complete picture as to how the interventions are working. The 
information gathered from one source will serve to validate information 
obtained through another source. In so doing, the confidence of overall 
findings will be strengthened as the different collection methods 
substantiate each other.
    Both quantitative and qualitative data will be used when evaluating 
outcomes. The following data will be collected: (1) Workforce data; (2) 
personnel office data; (3) employee attitude surveys; (4) focus group 
data; (5) local site historian logs and implementation information; (6) 
customer satisfaction surveys; and (7) core measures of organizational 
performance.
    The evaluation effort will consist of two phases, formative and 
summative evaluation, covering at least 5 years to permit inter- and 
intra-organizational estimates of effectiveness. The formative 
evaluation phase will include baseline data collection and analysis, 
implementation evaluation, and interim assessments. The formal reports 
and interim assessments will provide information on the accuracy of 
project operation, and current information on impact of the project on 
veterans and EEO groups, Merit System Principles, and Prohibited 
Personnel Practices. The summative evaluation will focus on an overall 
assessment of project outcomes after five years. The final report will 
provide information on how well the HR system changes achieved the 
desired goals, which interventions were most effective, and whether the 
results can be generalized to other Federal installations.

VIII. Demonstration Project Costs

A. Cost Discipline

    An objective of the demonstration project is to ensure in-house 
budget discipline. A baseline will be established at the start of the 
project and salary expenditures will be tracked yearly. Implementation 
costs, including project development, automation costs, and step buy-
out costs and evaluation costs are considered one-time costs and will 
not be included in the cost discipline.
    The RDE Personnel Management Board will track personnel cost 
changes and recommend adjustments if required to achieve the objective 
of cost discipline.

B. Developmental Costs

    Costs associated with the development of the personnel 
demonstration project include software

[[Page 33003]]

automation, training, and project evaluation. All funding will be 
provided through the organization's budget. The projected annual 
expenses are summarized in Table 1. Project evaluation costs are not 
expected to continue beyond the first 5 years unless the results 
warrant further evaluation.

                           Table 1.--Projected Developmental Costs (Then Year Dollars)
----------------------------------------------------------------------------------------------------------------
                                                             FY 00       FY01       FY02       FY03       FY04
----------------------------------------------------------------------------------------------------------------
Training.................................................                  150K       250K        50K
Project Evaluation.......................................        47K        47K        47K        47K        47K
Automation...............................................                  400K       400K
                                                          ------------------------------------------------------
    Totals...............................................        47K       597K       697K        97K        47K
----------------------------------------------------------------------------------------------------------------

IX. Required Waivers to Law and Regulation

    Public Law 103-398 gave the DoD the authority to experiment with 
several personnel management innovations. In addition to the 
authorities granted by the law, the following are 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.
    The following waivers and adaptations of certain Title 5, U.S.C., 
provisions are required only to the extent that these statutory 
provisions limit or are inconsistent with the actions contemplated 
under this demonstration project. Nothing in this plan is intended to 
preclude the demonstration project from adopting or incorporating any 
law or regulation enacted, adopted, or amended after the effective date 
of this demonstration project.

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

    Chapter 31, Section 3111: Acceptance of Volunteer Service--Amended 
to allow for a Voluntary Emeritus corps in addition to student 
volunteers.
    Chapter 31, Section 3132: The Senior Executive Service: Definitions 
and Exclusions
    Chapter 33, Subchapter 1, Section 3318(a): Competitive Service, 
Selection from Certificate
    Chapter 33, Section 3324: Appointments to Positions Classified 
Above GS-15
    Chapter 33, Section 3341: Details. This waiver applies to the 
extent necessary to waive the time limits for details.
    Chapter 41, Section 4107(a) and (b) (1) Restriction on Degree 
Training
    Chapter 43, Section 4302: To the extent necessary to substitute 
``pay band'' for ``grade''
    Chapter 43, Section 4303: 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 general pay increase because of 
poor performance is not an action covered by the provisions of section 
4303 (a)-(d).
    Chapter 43, Section 4304(b)(1) and (3): Responsibilities of the OPM
    Chapter 51, Sections 5101-5111, Classification
    Chapter 53, 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 pay, and (3) 
employees in Pay Band V of the E&S Occupational Family to be treated as 
ST employees for the purposes of these provisions.
    Chapter 53, Section 5305: Special Rates
    Chapter 53, Sections 5331-5336: General Schedule Pay Rates:
    Chapter 53, Sections 5361-5366 Grade and Pay Retention: This waiver 
applies only to the extent necessary to (1) replace ``grade'' with 
``pay band''; (2) allow demonstration project employees to be treated 
as General Schedule employees; (3) provide that pay band retention 
provisions do not apply to conversions from General Schedule special 
rates to demonstration project pay, as long as total pay is not 
reduced, to reductions in pay due solely to the removal of a 
supervisory pay adjustment upon voluntarily leaving a supervisory 
position; and to movements to a lower pay band as a result of not 
receiving the General Increase due to a rating of record of 
``Unacceptable''; (4) provide that an employee on pay retention whose 
rating of record is ``Unacceptable'' 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 of Pay Band V of the E&S occupational family, 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).
    Chapter 55, Section 5542(a)(1)-(2): Overtime rates; computation. 
This waiver applies only to the extent necessary to provide that the 
GS-10 minimum special rate (if any) for the special rate category to 
which a project employee belongs is deemed to be the ``applicable 
special rate'' in applying the pay cap provisions in 5 U.S.C. 5542.
    Chapter 55, Section 5545(d): Hazardous duty differential. This 
waiver applies only to the extent necessary to allow demonstration 
project employees to be treated as General Schedule employees. This 
waiver does not apply to employees in Pay Band V of the E&S 
occupational family.
    Chapter 55, Section 5547 (a)-(b): Limitation on premium pay. This 
waiver applies only to the extent necessary to provide that the GS-15 
maximum special rate (if any) for the special rate category to which a 
project employee belongs is deemed to be the applicable special rate'' 
in applying the pay cap provisions in 5 U.S.C. 5547.
    Chapter 57, Section 5753, 5754, and 5755: Recruitment and 
relocation, bonuses, retention allowances and supervisory 
differentials. (This waiver applies only 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 Pay Band V of the E&S occupational family to be treated as 
ST employees.)
    Chapter 59, Section 5941: Allowances based on living costs and 
conditions of environment; employees stationed outside continental U.S. 
or Alaska. This waiver applies only to the extent necessary to provide 
that COLAs paid to employees under the demonstration project are paid 
in accordance with regulations prescribed by the President (as 
delegated to OPM).
    Chapter 75, Section 7512(3): Adverse actions--This provision is 
waived only to the extent necessary to replace ``grade'' with ``pay 
band''.

[[Page 33004]]

    Chapter 75, Section 7512(4): Adverse actions (This waiver applies 
only to the extent necessary to provide that (1) adverse action 
provisions do not apply to 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 a supervisory pay 
adjustment upon voluntary movement to a non-supervisory position.)

B. Waivers to Title 5, Code of Federal Regulations

    Part 300, Sections 300.601 through 605: Time-in-Grade restrictions. 
Time in grade restrictions eliminated in the demonstration project.
    Part 308, Sections 308.101 through 308.103: Volunteer service. 
Amended to allow for a Voluntary Emeritus Corps in addition to student 
volunteers.
    Part 315, Section 315.801 and 315.802: Probationary Period--(This 
waiver applies only to the extent necessary to extend probationary 
periods from one year to a maximum of three years for newly-hired 
permanent career-conditional employees in the E&S occupational family.)
    Part 315, Section 315.901: Statutory requirements--(This waiver 
applies only to the extent necessary to replace ``grade'' with ``pay 
band.'')
    Part 316, Section 316.301: Term Appointments for more than 4 years.
    Part 316, Section 316.303: Converting Terms to Status
    Part 332, subpart D., section 332.404: Order of Selection from 
Certificates
    Part 335, Section 335.103: Covering the length of details and 
temporary promotions.
    Part 337, subpart A, section 337.101(a): Rating Applicants. Waive 
when 15 or fewer qualified candidates.
    Part 351.402(b): Competitive Area.
    Part 351.403: Competitive Level--(This waiver applies only to the 
extent necessary to replace ``grade'' with ``pay band.'')
    Part 351, Section 351.504: As it relates to years of credit.
    Part 351, Section 351.701: Assignment Involving Displacement--(This 
waiver applies to the extent that employee bump and retreat rights will 
be limited to one pay band except in the case of 30 percent preference 
eligible, and to include employees with an unsatisfactory current 
rating of record.)
    Part 410, Section 410.308(a-f): Training to obtain an academic 
degree.
    Part 410, Section 410.309: Agreements to Continue in Service--(This 
waiver applies to that portion that pertains to the authority of the 
head of the agency to determine continued service requirements, to 
waive repayment of such requirements, and to the extent that the 
service obligation is to the CECOM RDE organizations.)
    Part 430, Section 430.203: Rating of Record--(This waiver applies 
to the extent that the definition shall also include ratings for 
interns that are based on less than the whole appraisal period and 
improved ratings following an opportunity to demonstrate acceptable 
performance as provided for in the waiver of 351.504.)
    Part 430, Section 430.210: OPM Responsibilities
    Part 432, Section 432.102: (This waiver applies to the extent that 
the term ``grade level'' is replaced with ``pay band.'')
    Part 432: Modified to the extent that an employee may be removed, 
reduced in pay band level with a reduction in pay, reduced in pay 
without a reduction in pay band level and reduced in pay band level 
without a reduction in pay based on unacceptable performance. Also 
modified to delete reference to critical element. For employees who are 
reduced in pay band level without a reduction in pay, Sections 432.105 
and 432.106(a) do not apply.
    Part 432, Sections 432.104: Addressing unacceptable performance. 
References to ``critical elements'' are deleted as all elements are 
critical and adding that the employee may be ``reduced in pay band 
level, or pay, or removed'' if performance does not improve to an 
acceptable level during a reasonable opportunity period.
    Part 432, Section 432.105(a)(2): Waive ``If an employee has 
performed acceptably for 1 year'' to allow for ``within two years from 
the beginning of a PIP.''
    Part 511, subpart A: General Provisions, and subpart B: Coverage of 
the General Schedule.
    Part 511, Section 511.601: Classification Appeals modified to the 
extent that white collar positions established under the project plan, 
although specifically excluded from Title 5, are covered by the 
classification appeal process outlined in this section, as amended 
below.
    Part 511, Section 511.603(a): Right to appeal--substitute band for 
grade.
    Part 511, Section 511.607(b): Non-Appealable Issues--add to the 
list of issues that are neither appealable nor reviewable, the 
assignment of series under the project plan to appropriate occupational 
families
    Part 530, Subpart C: Special salary rates.
    Part 531, Subparts B, D, and E: Determining rate of basic pay, 
within-grade increases, and quality step increases.
    Part 531, Subpart F: Locality pay--(This waiver applies only to the 
extent necessary to allow (1) demonstration project employees, except 
employees in Band V of the E&S occupational family, 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 V of the E&S occupational family to be 
treated as ST employees for the purposes of these provisions.)
    Part 536: Grade and pay retention:--(This waiver applies only to 
the extent necessary to (1) replace ``grade'' with ``pay band''; (2) 
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 a supervisory pay adjustment upon voluntarily leaving a 
supervisory position; (3) allow demonstration project employees to be 
treated as General Schedule employees; (4) provide that pay retention 
provisions do not apply to movements to a lower pay band as a result of 
not receiving the general increase due to an annual performance rating 
of ``Unacceptable''; (5) provide that an employee on pay retention 
whose rating of record is ``Unacceptable'' 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 V in the E&S occupational family, 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.) This waiver applies 
to ST employees if they move to a GS-equivalent position under the 
demonstration project under conditions that trigger entitlement to pay 
retention.)
    Part 550.703: Severance Pay--(This waiver applies only 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--(This waiver applies 
only to the extent necessary to allow demonstration project employees 
to be treated as General Schedule employees. This waiver does not apply 
to employees in Pay Band V of the E&S occupational family.)
    Part 575, Subparts A, B, C, and D: Recruitment Bonuses, Relocation 
Bonuses, Retention Allowances and

[[Page 33005]]

Supervisory Differentials. (This waiver applies to the extent necessary 
to allow (1) employees and positions under the demonstration project 
covered by pay banding to be treated as employees and positions under 
the General Schedule and (2) employees in Pay Band V of the E&S 
occupational family to be treated as ST employees for the purposes of 
these provisions.)
    Part 591, Subpart B: Cost-of-Living Allowances and Post 
Differential--Non-foreign Areas (This waiver applies only to the extent 
necessary to allow (1) demonstration project employees to be treated as 
employees under the General Schedule and (2) employees in Band V of the 
E&S occupational family to be treated as ST employees for the purposes 
of these provisions.
    Part 752.401 (a)(3): Adverse Actions. (This waiver applies only to 
the extent necessary to replace ``grade'' with ``pay band.'' and to 
provide that a reduction in pay band level is not an adverse action if 
it results from the employee's rate of basic pay being exceeded by the 
minimum rate of basic pay for his/her pay band.)
    Part 752.401(a)(4): Adverse Actions. (This waiver applies only 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 a supervisory pay adjustment 
upon voluntary movement to a non-supervisory position).

                               Appendix A
            [Totals exclude SES, ST, DCIPS and FWS Employees]
------------------------------------------------------------------------
                                         CECOM
            Duty location              Employees       Servicing CPOC
------------------------------------------------------------------------
Fort Huachuca, AZ...................           22  West Region.
                                                2  NCR.
Melbourne, FL.......................            1  Northeast.
Miami, FL...........................            1  Northeast.
Valparaiso, FL......................            1  Northeast.
Fort Benning, GA....................            1  NCR.
Fort Wayne, IN......................            1  NCR.
Fort Meade, MD......................           78  NCR.
                                                3  Northeast.
Fort Meade, MD......................          100  Northeast.
Fort Monmouth, NJ...................         1315  Northeast.
Lakehurst, NJ.......................           14  Northeast.
Zimmerman, OH.......................            1  Northeast.
Fort Sill, OK.......................           29  Southwest.
Arlington, VA.......................            1  Northeast.
Fairfax, VA.........................            1  Northeast.
                                                5  NCR.
Fort AP Hill, VA....................            1  NCR.
Fort Belvoir, VA....................          571  NCR.
McLean, VA..........................            2  NCR.
Fort Monroe, VA.....................            1  Northeast.
    Total All Employees.............         2052
------------------------------------------------------------------------


CPOCs

Northeast: 1340
NCR: 661
Southwest: 29
West: 22
Total: 2052

Appendix B: Occupational Series by Occupational Family

I. Engineering & Science

0180  Psychologist Series
0801  General Engineering Series
0810  Civil Engineering Series
0830  Mechanical Engineering Series
0850  Electrical Engineering Series
0854  Computer Engineering Series
0855  Electronics Engineering Series
0893  Chemical Engineering Series
0892  Ceramic Engineering Series
0896  Industrial Engineering Series
0899  Engineering and Architecture Student Trainee Series
1301  General Physical Science Series
1310  Physics Series
1320  Chemistry Series
1515  Operations Research Series
1520  Mathematics Series
1550  Computer Science Series
1599  Mathematics and Statistics Student Trainee Series

II. Business/Technical

0018  Safety and Occupational Health Management Series
0028  Environmental Protection Specialist Series
0301  Miscellaneous Administration and Program Series
0334  Computer Specialist Series
0340  Program Management Series
0341  Administrative Officer Series
0342  Support Services Administration Series
0343  Management and Program Analysis Series
0346  Logistics Management Series
0391  Telecommunications Series
0501  Financial Administration and Program Series
0510  Accounting Series
0560  Budget Analysis Series
0802  Engineering Technician Series
0818  Engineering Drafting Series
0856  Electronics Technician Series
1001  General Arts and Information Series
1082  Writing and Editing Series
1083  Technical Writing and Editing Series
1084  Visual Information Series
1101  General Business and Industry Series
1102  Contracting Series
1150  Industrial Specialist Series
1152  Production Control Series
1311  Physical Science Technician Series
1410  Librarian Series
1412  Technical Information Services Series
1499  Library and Archives Student Trainee Series
1521  Mathematics Technician Series
1601  General Facilities and Equipment Series
1640  Facility Management Series
1670  Equipment Specialist Series
1910  Quality Assurance Series
2001  General Supply Series
2003  Supply Program Management Series
2010  Inventory Management Series
2101  Transportation Specialist Series
2130  Traffic Management Series
2181  Aircraft Operation Series
2200  Information Technology Series

III. General Support

0085  Security Guard Series
0086  Security Clerical and Assistance Series (Non-CIPMS)

[[Page 33006]]

0302  Messenger Series
0303  Miscellaneous Clerk and Assistant Series
0305  Mail and File Series
0312  Clerk-Stenographer and Reporter Series
0318  Secretary Series
0326  Office Automation Clerical and Assistance Series
0332  Computer Operation Series
0335  Computer Clerk and Assistant Series
0344  Management Clerical and Assistance Series
0394  Communications Clerical Series
0399  Administration and Office Support Student Trainee Series
0525  Accounting Technician Series
0561  Budget Clerical and Assistance Series
01087  Editorial Assistance Series
01411  Library Technician Series
2005  Supply Clerical and Technician Series
2102  Transportation Clerk and Assistant Series

Appendix C: Performance Elements

    Each performance element is assigned a minimum weight. The total 
weight of all elements in a performance plan is 100. The supervisor 
assigns percentage of the 100 in accordance with individual duties/
responsibilities objectives and the organization's mission and 
goals. All employees will be rated against the first four 
performance elements listed below. Those employees whose duties 
require team leader responsibilities will be rated on element 5. All 
managers/supervisors will be rated against element 6.
    1. Technical Competence: Exhibits and maintains knowledge, 
skills and abilities and initiative to produce quality work as 
defined in individual performance objectives. Assignments are 
completed in a timely manner with an appropriate level of 
supervision. The quality and quantity of work meets expectations. 
Makes prompt, technically sound decisions and recommendations that 
get the desired results. Where appropriate, seeks and accepts 
developmental and/or special assignments.
Minimum Weight: 15%
    2. Interpersonal Skills: Provides or exchanges oral/written 
ideas and information in a manner that is timely, accurate and 
easily understood. Listens effectively so that resultant actions 
show complete comprehension. Coordinates actions appropriately so 
that others are included in, and informed of, decisions and actions. 
Is an effective team player. Accepts personal responsibility for 
assigned tasks. Is considerate of differing viewpoints, exhibiting 
willingness to compromise on areas of difference. Exercises tact and 
diplomacy and maintains effective relationships both within and 
external to the organization. Readily gives assistance and shows 
appropriate respect and courtesy.
Minimum Weight: 10%
    3. Management of Time and Resources: Meets schedules and 
deadlines. Arranges work schedules to effectively balance difficult 
and time-consuming high priority tasks with other lower priority and 
less time consuming tasks. Generates and accepts new ideas and 
methods for increasing work efficiency. Effectively utilizes and, 
where appropriate, properly controls available resources.
Minimum Weight: 15%
    4. Customer Satisfied: Demonstrates care for customers through 
responsive, courteous, and reliable actions. Promotes relationships 
of trust and respect. Maintains solid working relationship with 
existing customers and where appropriate seeks out and develops new 
customers. Responds to taskings and develops practical solutions to 
satisfy those needs. Keeps customer informed. Within the scope of 
job responsibility seeks out and develops new programs and/or 
reimbursable customer work.
Minimum Weight: 10%
    5. Team/Project Leadership: Ensures that the organization/
project strategic plan, mission, vision and values are communicated 
into the team work plans, products and services. Provides advice on 
work methods practices and procedures. Assists members in 
identifying viable solutions to work issues. As appropriate, 
distributes and balances workload, checks on work in progress, makes 
adjustments as needed. Reports to the supervisor on team and 
individual work accomplishments, problems and training needs. 
Resolves simple, informal complaints, informs supervisor of 
performance management issues/problems. (Mandatory for team leaders 
optional for others, e.g. project leaders.)
Minimum Weight: 15%
    6. Supervision and EEO: Plans, develops, communicates and 
directs the implementation of strategic and operational goals and 
objectives of the organization. Allocates, and monitors resources 
and equitably distributes work to subordinates. Initiates personnel 
actions to recruit, select, promote and/or reassign employees in a 
timely manner. Develops subordinates, through counseling and 
positive motivational techniques on job expectations, identification 
of training needs, and attainment of career goals. Recognizes and 
rewards quality performance. Takes corrective action to resolve 
inadequate performance or behavioral issues. Applies EEO and Merit 
Principles. Creates a positive, safe and challenging work 
environment. Ensure appropriate internal controls to prevent fraud, 
waste or abuse and to safeguard assigned property and resources. 
(Mandatory for managers/ /supervisors)
Minimum Weight: 25%

BILLING CODE 5001-08-U

[[Page 33007]]

[GRAPHIC] [TIFF OMITTED] TN19JN01.003


[[Page 33008]]


[GRAPHIC] [TIFF OMITTED] TN19JN01.004


[[Page 33009]]


[GRAPHIC] [TIFF OMITTED] TN19JN01.005


[[Page 33010]]


[GRAPHIC] [TIFF OMITTED] TN19JN01.006


[[Page 33011]]


[GRAPHIC] [TIFF OMITTED] TN19JN01.007


[[Page 33012]]


[GRAPHIC] [TIFF OMITTED] TN19JN01.008

[FR Doc. 01-15387 Filed 6-18-01; 8:45 am]
BILLING CODE 5001-08-C