[Federal Register Volume 66, Number 210 (Tuesday, October 30, 2001)]
[Notices]
[Pages 54872-54899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27065]



[[Page 54871]]

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Part IV





Department of Defense





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Office of the Secretary



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

  Federal Register / Vol. 66, No. 210 / Tuesday, October 30, 2001 / 
Notices  

[[Page 54872]]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Science and Technology (S&T) Reinvention Laboratory Personnel 
Management Demonstration Project at the United States 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 approval of a demonstration project final plan.

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SUMMARY: The National Defense Authorization Act for Fiscal Year 1995, 
as amended by Section 1114 of the National Defense Authorization Act 
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: Implementation of this demonstration project will begin by 
February 1, 2002, or earlier. Participating organizations will be 
phased into the project in accordance with the implementation time 
frames approved by the Office of the Assistant Secretary of the Army 
(Manpower and Reserve Affairs).

FOR FURTHER INFORMATION CONTACT: CECOM RDE Community: 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. DoD: Patricia M. Stewart, CPMS-AF, 
Suite B-200, 1400 Key Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION:

1. Background

    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 project involves: 
(1) Two appointment authorities (permanent and modified term); (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.

2. Overview

    On June 19, 2001, DoD published the proposed demonstration project 
in the Federal Register (66 FR 32983-33012). During the public comment 
period ending August 11, 2001, DoD received comments from 16 
individuals, including 11 individuals who presented oral comments at 
the public hearing held at Fort Monmouth, NJ on July 12, 2001. All 
comments were carefully considered. Some commenters addressed topics 
that lie outside the project's scope or the demonstration authority of 
5 U.S.C. Chapter 47 (e.g., whether or not unions choose to embrace this 
demonstration). These comments are not included in the summary below. 
The following summary addresses the pertinent comments received, 
provides responses, and notes resultant changes to the original project 
plan in the first Federal Register notice. Most commenters addressed 
several topics, which were counted separately. Thus, the total number 
of comments exceeds the number of individuals cited above.

A. General Positive Comments

    Six commenters were totally supportive of the demonstration, saying 
that a performance-based system will be better than the current system, 
that it will make clear distinctions between top performers and 
mediocre ones, and that the personnel demonstration project offers a 
real opportunity for all employees and will work very well.

B. Pay for Performance Appraisal System

    Seven comments were received about pay for performance.
(1) Reconciliation Process
    Comments: Two commenters expressed concern that the reconciliation 
process might be influenced by non-performance factors such as the 
availability and leadership dynamics of the officials involved, that 
the process might be too subjective and removed from the employee, and 
that scores might be reconciled to benefit unduly those personnel 
working on favored programs. One commenter suggested adding some form 
of oversight to the process.
    Response: The reconciliation process provides for a structured, 
group review of initial scores by raters within an organizational unit. 
Each employee's preliminary scores are compared, and through discussion 
and consensus building, ratings are reconciled. After the division 
chiefs have initially met and reconciled scores, the Pay Pool Manager 
performs an overview of the distribution of ratings and payouts in an 
effort to achieve consistent ratings across the organization and 
resolve any scoring issues. This process is similar to the informal 
process many managers currently use within their own organization to 
compare performance levels with ratings and performance awards. The 
demonstration's formal reconciliation process expands this comparison 
across organizational lines and provides a forum to share initial 
assessments to ensure equity and consistency.
(2) Pay Pools
    Comments: Three inquiries were received regarding pay pools, as 
follows: Whether team leaders would be part of a supervisory pay pool 
or a non-supervisory pay pool; whether the guidelines for determining 
pay pools can be waived when circumstances prevent meeting them; and 
which pay pool would include Pay Band V employees.
    Response: As to the first question of team leaders, language has 
been added that would permit those team leaders classified by the GS 
Leader Grade-Evaluation Guide to be included in the supervisory pay 
pool. Other leaders who have project responsibility but do not actually 
lead other workers would be appropriately placed in non-supervisory pay 
pools. As to the second question on how pay pools would be structured, 
language has been added that authorizes RDE Center Directors to deviate 
from the guidelines. As to the third question, a Pay Band V employee 
would be assigned to the supervisory pay pool within his/her 
organization, because Pay Band V employees by definition have full 
managerial and supervisory authority.
(3) Significant Accomplishment/Contribution Rule
    Comment: Two comments were received relating to this rule. The 
first suggested that the performance of those affected by the rule 
should be compared only to other engineers and scientists in the pay 
pool, rather than to all

[[Page 54873]]

employees in the pay pool. The second comment suggested applying the 
rule to all occupational families and all pay bands at or above the GS-
14 equivalent level.
    Response: We have carefully considered these comments. The rule 
links the total performance score to the amount of base pay increase an 
employee can receive. All scores in the pay pool are placed in rank 
order. Employees whose scores fall in the top third of scores in the 
pay pool will receive the full allowable base pay increase portion of 
the performance pay out. Employees whose scores fall in the middle or 
bottom third will receive a base pay increase of 1 percent of salary or 
no base pay increase, respectively. The comment proposes that, since 
the rule only affects DB-III employees, only the scores of DB-III 
employees should be ranked to determine whose scores fall in the top, 
middle, or bottom third.
    We performed mock rankings in order to assess the effects of the 
methodology originally proposed versus that suggested by the commenter. 
Our analysis shows that, since scores are being ranked and not 
individual employees, it is more advantageous for DB-III employees to 
be part of a larger ranking (all employees in the pay pool) than a 
smaller ranking (only E&S employees in the pay pool). The way the rule 
is currently defined enhances the potential for DB-III employees to 
receive a score ranked in the upper third and, hence, to receive the 
full base pay increase.
    As to the comment that the rule should be expanded to the Business 
and Technical family, this rule was imposed to maintain a degree of 
cost discipline for DB-III employees, because their pay band uniquely 
spans three high grades under the Governmentwide personnel system, GS-
12 through -14. Promotion to GS-14 currently requires scientists and 
engineers to assume supervisory responsibilities or apply highly 
specialized technical knowledge. The normal progression of a non-
supervisory engineer or scientist is to GS-13. The rule in question 
allays concerns that DB-III employees would otherwise have the 
potential to progress to the highest salary in the band without 
necessarily operating at increased levels of performance or 
responsibility.
    The bands for the Business & Technical (B&T) family were designed 
differently, with DE-II spanning grades 12-13 and DE-III reserved for 
14-15. To go from Band II to Band III would normally require a 
competitive promotion to a new position of greater responsibility. 
Since pay progression for the B&T family is already limited by 
splitting the pay bands between grades 13 and 14, cost discipline is 
already factored into the band design.

C. Management Issues

(1) Fairness
    Comment: Three comments were received addressing the need for fair 
and unbiased performance ratings. One commenter expressed concern about 
managers' ability to motivate employees to be top performers, while 
recognizing that there are also employees who do not perform or 
contribute their share of the work. Another commenter saw the potential 
for favoritism under both the current system and the demonstration. 
Still another suggested that the current performance management system 
be improved.
    Response: The demonstration project incorporates a number of 
features to address these concerns. These features include a Personnel 
Management Board at the RDE level and the Center level to provide 
oversight for the project, including equity issues. Membership on the 
RDE board includes the CECOM Deputy Chief of Staff for Personnel, the 
Deputy Chief of Staff for Operations and Plans, and the Equal 
Employment Opportunity Officer, among others. Specific features of the 
pay for performance appraisal system were designed to address concerns 
of fairness and potential for favoritism. They include the 
reconciliation process as previously described, which is specifically 
designed to balance ratings based on comparisons of the levels and 
quality of performance across the organization. A feedback mechanism 
was designed so that, following the appraisal cycle, employees will 
rate their managers on a number of dimensions. This will help identify 
developmental needs. Additionally, a thorough training program has been 
designed for all supervisors associated with the demonstration project, 
with particular emphasis on skills needed in appraising performance. 
Specific modules will be offered on giving and receiving performance 
feedback, resolving conflict and confrontation in performance reviews, 
addressing developmental needs, rating performance, etc. Lastly, 
demonstration results will be analyzed and evaluated to determine if 
they are effective. Perceived fairness of the appraisal process has 
been identified as an item for evaluation and will be included in 
surveys of the workforce and focus group discussions with employees.
(2) Managerial Preparedness
    Comments: A commenter questioned management's readiness to 
administer a complex pay for performance system.
    Response: The CECOM RDE has made a significant commitment to this 
demonstration project. In addition to the training program previously 
described, automation tools have been developed to simplify procedural 
aspects of the new system and offer better analytical tools to support 
key decisions.

D. Credit for Performance

    Comment: A commenter felt that the method of calculating credit for 
performance in reduction in force (RIF) places greater weight on 
performance during the past three years than on experience, which might 
disadvantage older workers.
    Response: Under the current TAPES system, employees receive 
additional service credit based upon their three most recent 
performance ratings during the 4 years prior to a RIF. This process is 
unchanged. The demonstration project changes the method of computing 
credit for performance by linking the additional years of credit to the 
total performance score (rather than to the summary level, as in the 
traditional title 5 system) and by adding the years instead of 
averaging them. This new methodology does place greater emphasis on 
performance, which is consistent with the demonstration's pay for 
performance system.

E. Modifications to the Project Plan

    Comment: If the project later requires modifications, one commenter 
asked, who determines the extent of notification requirements?
    Response: The Office of the Deputy Assistant Secretary of Defense 
(Civilian Personnel Policy) will determine the extent of notification 
requirements.

F. Close-out Evaluations and Awards

    Comment: One commenter questioned whether there would be a 
performance closeout rating under the current system known as TAPES, 
and if so, how would any award associated with the appraisal be 
processed and factored into the employees' pay when they convert to the 
demonstration project.
    Response: A closeout performance appraisal will be required for 
some employees, depending on when their last appraisal was given. If 
there were a Quality Step Increase associated with the appraisal, it 
would be effective prior to implementation of the demonstration 
project. The employee would then convert into the demo at the higher 
salary rate. (If there were a performance award associated with the 
appraisal, it

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would have no effect on base pay, because such awards are paid as a 
one-time cash bonus.)

G. Performance Improvement

    Comment: One commenter asked how management will help the under-
achiever to improve to an acceptable level of performance.
    Response: The demonstration project plan addresses this topic in 
several ways. As soon as the unacceptable performance is noted, the 
supervisor is to inform the employee. At this point, it is appropriate 
to identify the possible reasons and explore some options such as 
counseling, training, closer supervision, or a temporary assignment to 
another unit in the organization. Actions that are more formal may also 
be taken at this point. In that case, a written notice outlining the 
unacceptable performance must be provided to the employee in the form 
of a Performance Improvement Plan (PIP). The PIP will identify the 
items/actions that need to be corrected or improved, outline required 
time frames for such improvement, and provide the employee with any 
available assistance as appropriate.

H. Cost Discipline

    Comment: A commenter inquired about the source of funds for 
supervisory pay adjustments.
    Response: Supervisory and team leader pay adjustments can be up to 
10 percent of base pay for supervisors and up to 5 percent of base pay 
for team leaders. These pay adjustments are funded separately from pay 
pools, must be funded from project funds, and are subject to budget 
constraints. These adjustments will be used selectively, not routinely, 
to compensate only those supervisors and/or team leaders who meet 
detailed criteria contained in demonstration project operating 
procedures. They are subject to approval by the Director, RDEC, or the 
Director, SEC.

I. Within-Grade Increase Buy-Ins

    Comment: A commenter asked if employees who enter the demonstration 
project after initial implementation would be awarded that portion of 
the next higher step they have completed.
    Response: Language has been added to paragraph V.A. of the 
demonstration project plan to address this issue. It provides for 
employees who enter the demonstration project after initial 
implementation by lateral transfer, reassignment, or realignment to be 
subject to the same pay conversion rules. Specifically, adjustments to 
the employee's base salary for a step increase and a non-competitive 
career ladder promotion will be computed as a prorated share of the 
current value of the step or promotion increase based upon the number 
of weeks an employee has completed toward the next high step or grade 
at the time the employee moves into the project.

J. Other Changes to Project Plan

    No comments were received regarding staffing supplements. However, 
language has been added at III. E. 8. to clarify how staffing 
supplements will be calculated and administered under this 
demonstration. Additionally, the language at III. F. 1. b., Critical 
Skills Training (Training for Degrees) has been amended to reflect 
changes in this area made necessary by section 1121 of the National 
Defense Authorization Act for FY 01.

    Dated: October 22, 2001.
Patricia L. Toppings,
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
    C. Personal Administration
    D. Automation
    E. Experimentation and Revision
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 by 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 the Department of 
the Army (DA) and Department of Defense (DoD). 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 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

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(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 the Office of Personnel Management (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 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

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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.

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 Fort 
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 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 were 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 Web site 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 (DCSPER), Deputy Chief of Staff for 
Operations and Plans (DCSOPS), and 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 pay 
band;
    (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 and DoD. 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 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.

[[Page 54877]]

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 established 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. Four bands have been established for 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 
established for the GEN occupational family:

    Band I includes entry-level positions covering GS-1, step 1 
through GS-4, step 10.
    Band II includes full-performance positions covering GS-5, step 
1 through GS-8, step 10.
    Band III includes senior technicians/assistants/secretaries 
covering GS-9 step 1 through step 10.
2. Pay Band Design
    The pay bands for the occupational families and how they relate to 
the current GS framework are shown in Figure 1.

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

    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 will no longer be 
applicable to demonstration project employees. 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 definitions 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

[[Page 54878]]

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 per cent 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 panel 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 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.

[[Page 54879]]

    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. 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, or 
an alternative dispute resolution 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 and meet mission requirements. PFP 
allows for more employee involvement in the assessment process, strives 
to increase communication between supervisor and 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.

[[Page 54880]]

    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 results-oriented statements. The employee and his/
her supervisor 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 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 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 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 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

[[Page 54881]]

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. A new 
rating of record will be issued if the employee's performance improves 
to an acceptable level at the conclusion of the PIP.
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 that 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/actions that need to be corrected or improved, 
outline required time frames (no less than 30 days) for such 
improvement, and provide the employee with any available assistance as 
appropriate. Progress will be monitored during the PIP, and all 
counseling sessions will be documented.
    If the employee's performance is acceptable at the conclusion of 
the PIP, 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 change in position or occupational family. For the 
most part, employees with an unacceptable rating will not be permitted 
to remain at their current salary and may be reduced in pay band. 
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 therefor 
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 management proposes 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 and resolve any scoring issues. 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 guidelines in the next paragraph are provided for determining pay 
pools. These guidelines will normally be followed. However, RDE Center 
Directors may deviate from the guidelines if they determine that there 
is a compelling need to do so and document their rationale in writing.
    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. Team leaders 
classified by the GS Leader Grade-Evaluation Guide will be included in 
a supervisory pay pool. Those team leaders who have project 
responsibility but who do not actually lead other workers will be 
included in a non-supervisory pay pool. 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 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

[[Page 54882]]

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 completed and all scores are finalized. 
The share value is expressed as a percentage. The formula that computes 
the value of each share is based on (1) the 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.

Figure 3. Formula
[GRAPHIC] [TIFF OMITTED] TR30OC01.000

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 pay band 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 projected base pay increase will be 
offset, dollar for dollar, by an accompanying reduction in the 
employee's projected 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 54883]]

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 midpoint 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 who 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 not be retroactive but 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 rate 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 that 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 
Operating Manual for Qualification Standards 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 Operating Manual, 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 with the same score.

[[Page 54884]]

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, and for conditions arising before 
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 before 
employment that support the termination.
7. Supervisory Probationary Periods
    Supervisory probationary periods will be made consistent with 5 CFR 
315. Employees who 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.

[[Page 54885]]

    To be accepted into the emeritus corps, a volunteer must be 
recommended by an RDE manager to a directorate director. Not everyone 
who applies is entitled to an emeritus position. The responsible 
director must document acceptance or rejection of the applicant. For 
acceptance, documentation must be retained throughout the assignment. 
For rejection, 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) A 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 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 of ``acceptable'' with a score of 
30 or better, or equivalent under a different performance appraisal 
system. If an employee does not 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 documented evidence of unacceptable 
performance.
    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 based on the recommendation of the Personnel 
Management Board at the Center level to compensate employees with 
supervisory or team leader responsibilities. Only

[[Page 54886]]

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 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.
    After the date of conversion into the demonstration project, a pay 
adjustment may be considered under the following conditions:
    (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.
    Upon initial conversion into the demonstration project into the 
same or substantially similar position, supervisors/team leaders 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 grade and pay retention will follow current 
law and regulations at 5 U.S.C. 5362, 5363, and 5 CFR part 536, except 
as waived or modified in section IX.
3. Supervisory/Team Leader Pay Differentials
    Supervisory and team leader pay differentials may be used by RDE 
Center Directors 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. 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, HPR is subject to policies established by the RDE Personnel 
Management Board. Pay band and pay retention will follow current law 
and regulations at 5 U.S.C. 5362, 5363, and 5 CFR part 536, except as 
waived or modified in section IX, the waiver section of this plan. 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. However, for employees assigned to occupational categories and 
geographic areas covered by special rates, the minimum salary rate in 
the pay band to which promoted is the minimum salary for the 
corresponding special rate or locality rate, whichever is greater. For

[[Page 54887]]

employees covered by a staffing supplement, the demonstration staffing 
adjusted pay is considered basic pay for promotion calculations. 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.
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 
the provisions of 5 U.S.C. 5363 and 5 CFR part 536, except as waived or 
modified in section IX of this plan.
    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 rate 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 performance based action, nor will 
band retention provisions apply.
8. Staffing Supplements
    Employees assigned to occupational categories and geographic areas 
covered by special rates will be entitled to 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. For employees being converted 
into the demonstration project, total pay immediately after conversion 
will be the same as immediately before, but a portion of the total pay 
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.
    The staffing supplement is calculated as follows. Upon conversion, 
the demonstration base rate will be established by dividing the 
employee's former 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. Therefore, 
the employee's final demonstration special staffing rate equals the 
demonstration base rate plus the staffing supplement. This amount will 
equal the employee's former GS adjusted rate. Simplified, the formula 
is this:
[GRAPHIC] [TIFF OMITTED] TR30OC01.001

    Example: Assume there is a GS-854-11, step 03 employee assigned 
to Fort Monmouth, NJ, who is entitled to the greater of a special 
salary rate of $53,648 or a locality rate of $48,763 ($42,918+13.62 
percent). The maximum special rate for a GS-854-11, step 10 is 
$65,381, and the corresponding regular rate is $52,305. The maximum 
GS-11 locality rate in Fort Monmouth is $59,429 ($52,305+13.62 
percent), which is less than the maximum special salary rate. Thus, 
a staffing supplement is payable. The staffing factor is computed as 
follows:
Staffing factor = $65,381/$52,305 = 1.2500
Demonstration base rate = $53,648/1.2500 = $42,918

    Then to determine the staffing supplement, multiply the 
demonstration base by the staffing factor minus 1.

Staffing supplement = $42,918  x  0.2500 = $10,730

    The staffing supplement of $10,730 is added to the demonstration 
base rate of $42,918, and the total salary is $53,648, which is the 
salary of the employee before conversion.
    If an employee is in a band where the maximum GS adjusted rate for 
the banded grades is a locality rate, when the employee enters into the 
demonstration project, the demonstration base rate is derived by 
dividing the employee's former GS adjusted rate (the higher of locality 
rate or special rate) by the applicable locality pay factor. The 
employee's demonstration locality-adjusted rate will equal the 
employee's former GS adjusted rate. Any GS or special rate schedule 
adjustment will require computing the staffing supplement again. 
Employees receiving a staffing supplement remain entitled to an 
underlying locality rate, which may over time supersede the need for a 
staffing supplement. If OPM discontinues or decreases a special rate 
schedule, pay retention provisions will be applied. Upon geographic 
movement, an employee who receives the staffing supplement will have 
the supplement recomputed. Any resulting reduction in pay will not be 
considered an adverse action or a basis for pay retention.
    The calculation of a staffing supplement as previously illustrated 
was presented in the context of a GS employee entering the 
demonstration project. Application of the staffing supplement is 
normally intended to maintain pay comparability for GS employees 
entering the demonstration. However, the staffing supplement formulas 
must be compatible with non-Government employees entering the 
demonstration and also be adaptable to the special circumstances of 
employees already in the demonstration. The following principles will 
govern the modifications necessary to the previous

[[Page 54888]]

staffing supplement calculations to apply the staffing supplement to 
circumstances other than a GS employee entering the demonstration 
project. No adjustment under these provisions will provide an increase 
greater than that provided by the special salary rate. An increase 
provided under this authority is not an equivalent increase, as defined 
by 5 CFR 531.403. These principles are stated with the understanding 
that the necessary conditions exist that require the application of a 
staffing supplement.
    1. If a non-Government employee is hired into the demonstration, 
then the employee's entry salary will be used for the term, ``former GS 
adjusted rate'' to calculate the demonstration base rate.
    2. If a current employee is covered by a new or modified special 
salary rate table, then the employee's current demonstration base rate 
is used to calculate the staffing supplement percentage. The employee's 
new demonstration adjusted base salary is the sum of the current 
demonstration base rate and the calculated staffing supplement.
    3. If a current employee is in an occupational category that is 
covered by a special salary rate table and subsequently, the 
occupational category becomes covered by a different special salary 
rate table with a higher value (e.g., a DB 854 originally covered by 
table 422 is subsequently covered by table 999E, which is a higher rate 
schedule), then the following steps must be applied to calculate a new 
demonstration base rate:
    Step 1. To obtain a relevance factor, divide the staffing factor 
that will become applicable to the employee by the staffing factor that 
would have applied to the employee. For example, table 999E (Special 
Salary Rate Table for Certain Information Technology employees, 
containing 2001 rates for New Jersey) is applicable to a DB 854-II 
employee, and the applicable staffing factor is 1.25 ($65,381 /
$52,305). For table 0422 (the table that would have applied if table 
999E had not been implemented), the applicable staffing factor is 
1.1281 ($59,010/$52,305). Thus:

Relevance factor = 1.25 / 1.281 = 1.108

    Step 2. Multiply the relevance factor resulting from step 1 by the 
employee's current adjusted demonstration rate to determine a new 
adjusted demonstration rate.
    Step 3. Divide the result from step 2 by the applicable staffing 
factor to derive a new demonstration base rate. This new demonstration 
base rate will be used to calculate the staffing supplement and the new 
demonstration adjusted base salary.
    4. If, after the establishment of a new or adjusted special salary 
rate table, an employee enters the demonstration (whether converted 
from GS or hired from outside Government) prior to this intervention, 
then the employee's current adjusted base salary is used for the term 
``former GS adjusted rate'' to calculate the demonstration base rate. 
This principle prevents double compensation due to the single event of 
a new or adjusted special salary rate table.
    5. If an employee is in an occupational category covered by a new 
or modified special salary rate table, and the pay band to which 
assigned is not entitled to a staffing supplement, then the employee's 
salary may be reviewed and adjusted to accommodate the salary increase 
provided by the special salary rate. The review may result in a one-
time pay increase if the employee's salary equals or is less than the 
highest special salary grade and step that exceeds the comparable 
locality grade and step. Demonstration project operating procedures 
will identify the officials responsible to make such reviews and 
determinations. The applicable salary increase will be calculated by 
determining the percentage difference between the highest step 10 
special salary rate and the comparable step 10 locality rate and 
applying this percentage to the demonstration base rate.
    An established salary including the staffing supplement will be 
considered basic pay for the same purposes as a locality rate under 5 
CFR 531.606(b), i.e., for purposes of retirement, life insurance, 
premium pay, severance pay, and advances in pay. It will also be used 
to compute worker's compensation payments and lump-sum payments for 
accrued and accumulated annual leave.
9. 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 level. Subsequent assignments to 
projects, tasks, or functions anywhere within the organization 
requiring the same level, 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 could 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.
10. 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, 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 
developmental period. 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

[[Page 54889]]

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 organizations.
    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. Until 2000, 5 U.S.C. 4107 limited degree 
payment to those employees in shortage occupations with a recruitment 
or retention problem. Degree payment was not permitted for non-shortage 
occupations involving critical skills. In section 1121 of the National 
Defense Authorization Act for FY 01, the Congress approved legislation 
sought by DoD to link degree payment to programs of systematic 
professional development, dropping the shortage occupation constraint. 
This demonstration project exempts CECOM from both conditions--linkage 
to professional development programs or to a shortage occupation.
    The CECOM RDE organizations are expanding the authority to provide 
degree or certificate payment for non-shortage occupations for purposes 
of meeting critical skill requirements. This will ensure continuous 
acquisition of advanced specialized knowledge essential to the 
organization, and enhance our ability 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 or certificate 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, the 
employee 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, and supplies; 
travel and 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 band 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
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

[[Page 54890]]

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 of 
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. Pay Band and Pay Retention
    Pay band and pay retention will follow current law and regulations 
at 5 U.S.C. 5362, 5363, and 5 CFR part 536, except as waived or 
modified in section IX of this plan.

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 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, 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 salary rate 
employees, which are described in III.E.8. (Staffing Supplements). 
Employees who enter the demonstration project later by lateral 
transfer, reassignment or realignment will be subject to the same 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 entering 
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 or a staffing supplement. 
The adjusted salaries of these employees will not change. Rather, the 
employees will receive a new basic pay rate computed under the staffing 
supplement rules in section III. E. 8. 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 Personnel Management Board. 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 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

[[Page 54891]]

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.
    Employees who enter the demonstration project after initial 
implementation by lateral transfer, reassignment, or realignment will 
be subject to the same pay conversion rules as above. Specifically, 
adjustments to the employee's base salary for a step increase and a 
non-competitive career ladder promotion will be computed as a prorated 
share of the current value of the step or promotion increase based upon 
the number of weeks an employee has completed toward the next higher 
step or grade at the time the employee moves into the project.

B. Conversion Out Of The Demonstration Project

    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 rate 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 or staffing 
supplement) 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 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 GS 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

[[Page 54892]]

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. Demonstration project operating procedures will outline the 
methodology 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).

C. 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.

D. 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.

E. 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, subject to 
ODASD(CPP) approval.

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 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 
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 HR changes are 
given a fair trial period; (2) the extent to which the changes are 
implemented; and (3) the extent to which the 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

[[Page 54893]]

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 that 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 
cost 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, step buy-in 
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 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)
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    FY 00         FY01        FY 02        FY 03        FY 04
----------------------------------------------------------------------------------------------------------------
Training.......................................  ...........           40          232           10
Project Evaluation.............................           40           40           40           40           40
Automation.....................................  ...........          495          383          202  ...........
                                                ----------------------------------------------------------------
    Totals.....................................           40          575          655          252           40
----------------------------------------------------------------------------------------------------------------

IX. Required Waivers to Law and Regulation

    Public Law 106-398 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.

[[Page 54894]]

    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; (5) provide that pay retention 
does not apply to reduction in basic pay due solely to the reallocation 
of demonstration project pay rates in the implementation of a staffing 
supplement; and (6) 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). This waiver applies to ST employees only if they move to a GS-
equivalent position within the demonstration project under conditions 
that trigger entitlement to pay retention.
    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.''
    Chapter 75, Section 7512(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 or team leader 
pay adjustment upon voluntary movement to a non-supervisory or non-team 
leader 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 are 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 316, section 316.305: Eligibility for Within-Grade Increases.
    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

[[Page 54895]]

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 ``pay 
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 Pay 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 Pay 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; (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); and (7) provide that 
pay retention does not apply to reduction in basic pay due solely to 
the reallocation of demonstration project pay rates in the 
implementation of a staffing supplement. This waiver applies to ST 
employees only if they move to a GS-equivalent position within the 
demonstration project under conditions that trigger entitlement to pay 
retention.
    Part 550, sections 550.105 and 550.106: Bi-weekly and annual 
maximum earnings limitations--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.
    Section 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.'')
    Section 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 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.
    Section 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.)
    Section 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 or team leader 
pay adjustment upon voluntary movement to a non-supervisory or non-team 
leader position).

Appendix A: RDE Employees by Duty Location

------------------------------------------------------------------------
                                                                CECOM
                       Duty Location                          employees
------------------------------------------------------------------------
Fort Huachuca, AZ..........................................           24
Melbourne, FL..............................................            2
Miami, FL..................................................            1
Valparaiso, FL.............................................            1
Fort Benning, GA...........................................            1
Fort Wayne, IN.............................................            1

[[Page 54896]]

 
Fort Meade, MD.............................................           81
Fort Monmouth, NJ..........................................         1315
Fort Monmouth..............................................         1315
Lakehurst, NJ..............................................           14
Zimmerman, OH..............................................            1
Fort Sill, OK..............................................           29
Arlington, VA..............................................            1
Fairfax, VA................................................            6
Fort AP Hill, VA...........................................            1
Fort Belvoir, VA...........................................          571
McLean, VA.................................................            2
Fort Monroe, VA............................................            1
                                                            ------------
    Total All Employees 2052...............................         2052
------------------------------------------------------------------------
Note: Totals exclude SES, ST, DCIPS and FWS Employees.

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
1306 Health Physics 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
2210  Information Technology Management Series

III. General Support

0085  Security Guard Series
0086  Security Clerical and Assistance Series (Non-CIPMS)
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
1087  Editorial Assistance Series
1411  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 on element 6.

1. Technical Competence

    Exhibits and maintains knowledge, skills, 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 Satisfaction

    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

[[Page 54897]]

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%.

Appendix D: Intervention Model

----------------------------------------------------------------------------------------------------------------
             Intervention                  Expected effects             Measures               Data sources
----------------------------------------------------------------------------------------------------------------
1. Compensation:
    a. Paybanding....................  --Increased              --Perceived flexibility  --Attitude survey.
                                        organizational
                                        flexibility.
                                       --Reduced                --Actual/perceived time  --Personnel office
                                        administrative           savings.                 data, PME results,
                                        workload, paperwork                               attitude survey.
                                        reduction.
                                       --Advanced in-hire       --Starting salaries of   --Workforce data.
                                        rates.                   banded v. non-banded
                                                                 employees.
                                       --Slower pay             --Progression of new     --Workforce data.
                                        progression at entry     hires over time by
                                        levels.                  band, career path.
                                       --Increased pay          --Mean salaries by       --Workforce data.
                                        potential.               band, career path,
                                                                 demographics.
                                                                --Total payroll costs..  --Personnel office
                                                                                          data.
                                       --Increased              --Employee perceptions   --Attitude survey.
                                        satisfaction with        of advancement.
                                        advancement.
                                       --Increased pay          --Pay satisfaction,      --Attitude survey.
                                        satisfaction.            internal/external
                                                                 equity.
                                       --Improved recruitment.  --Offer/acceptances      --Personnel office
                                                                 rations.                 data.
                                                                --Percent declinations.
    b. Conversion buy-in.............  --Employee acceptance..  --Employee perceptions   --Attitude survey.
                                                                 of equity, fairness.
                                                                --Cost as a percent of   --Workforce data.
                                                                 payroll.
    c. Pay differentials/adjustments.  --Increased incentive    --Perceived              --Attitude survey.
                                        to accept supervisory/   motivational power.
                                        team leader positions.
2. Performance Management:
    a. Cash awards/bonuses...........  --Reward/motivate        --Perceived              --Attitude survey.
                                        performance.             motivational power.
                                       --To support fair and    --Amount and number of   --Workforce data.
                                        appropriate              awards by career path,
                                        distribution of awards.  demographics.
                                                                --Perceived fairness of  --Attitude survey.
                                                                 awards.
                                                                --Satisfaction with      --Attitude survey.
                                                                 monetary awards.
    b. Performance based pay           --Increased pay-         --Perceived pay-         --Attitude survey.
     progression.                       performance link.        performance link.
                                                                --Perceived fairness of  --Attitude survey.
                                                                 ratings.
                                       --Improved performance   --Satisfaction with      --Attitude survey.
                                        feedback.                ratings.
                                                                --Employee trust in      --Attitude survey.
                                                                 supervisors.
                                                                --Adequacy of            --Attitude survey.
                                                                 performance feedback.
                                       --Decreased turnover of  --Turnover by            --Workforce data.
                                        high performers/         performance rating
                                        increased turnover of    category.
                                        low performers.
                                       --Differential pay       --Pay progression by     --Workforce data.
                                        progression of high/     performance score,
                                        low performers.          career path.
                                       --Alignment of           --Linkage of             --Performance
                                        organizational and       performance              expectations,
                                        individual performance   expectations to          strategic plans.
                                        expectations and         strategic plans/goals.
                                        results.
                                       --Increased employee     --Perceived involvement  --Attitude survey/focus
                                        involvement in                                    group.
                                        performance planning
                                        and assessment.
                                                                --Performance            --Personnel
                                                                 management.              regulations.
    c. New appraisal process.........  --Reduced                --Employee and           --Attitude survey.
                                        administrative burden.   supervisor perceptions
                                                                 of revised procedures.
                                       --Improved               --Perceived fairness of  --Focus groups.
                                        communication.           process.
    d. Performance development.......  --Better communications  --Feedback and coaching  --Focus groups.
                                        of performance           procedures used.        --Personnel office
                                        expectations.                                     data.
                                                                --Time, funds spent on   --Training records.
                                                                 training by
                                                                 demographics.
                                       --Improved satisfaction  --Perceived workforce    --Attitude survey.
                                        and quality of           quality.
                                        workforce.
3. Classification:
    a. Improved classification system  --Reduction in amount    --Time spent on          --Personnel office
     with generic standards in an       of time and paperwork    classification           data.
     automated mode.                    spent on                 procedures.
                                        classification.
                                                                --Reduction of paper     --Personnel office
                                                                 work/number of           data.
                                                                 personnel actions
                                                                 (classification/
                                                                 promotion).
                                       --Ease of use..........  --Managers' perceptions  --Attitude survey.
                                                                 of time savings, ease
                                                                 of use.

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    b. Classification authority        --Increased supervisory  --Perceived authority..  --Attitude survey.
     delegated to managers.             authority/
                                        accountability.
                                       --Decreased conflict     --Number of              --Personnel records.
                                        between management and   classification
                                        personnel staff.         disputes/appeals pre/
                                                                 post.
                                                                --Management             --Attitude survey.
                                                                 satisfaction with
                                                                 service provided by
                                                                 personnel office.
                                       --No negative impact on  --Internal pay equity..  --Attitude survey.
                                        internal pay equity.
    c. Dual career ladder............  --Increased flexibility  --Assignment             --Focus groups,
                                        to assign employees.     flexibility.             surveys.
                                       --Improved internal      --Perceived internal     --Attitude survey.
                                        mobility.                mobility.
                                       --Increased pay equity.  --Perceived pay equity.
                                       --Flatter                --Supervisory/non-       Workforce data.
                                        organizational           supervisory ratios.
                                        structure.
                                       --Improved quality of    --Employee perceptions   --Attitude survey.
                                        supervisory staff.       of quality of
                                                                 supervisory.
4. Modified RIF:                       --Minimize loss of high  --Separated employees    --Workforce data.
                                        performing employees     by demographics,        --Attitude survey/focus
                                        with needed skills.      performance scores.      group.
                                       --Contain costs and      --Satisfaction with RIF  --Attitude survey/focus
                                        disruption.              process.                 group.
                                                                --Cost comparison of     --Personnel office/
                                                                 traditional vs.          budget data.
                                                                 modified RIF.
                                                                --Time to conduct RIF..  --Personnel office
                                                                                          data.
                                                                --Number of appeals/     --Personnel office
                                                                 reinstatements.          data.
5. Hiring and Authority:
    a. Delegated Examining...........  --Improved ease and      --Perceived flexibility  --Attitude survey.
                                        timeliness of hiring     in authority to hire.
                                        process.
                                       --Improved recruitment   --Offer/accept ratios..  --Personnel office
                                        of employees in         --Percent declinations.   data.
                                        shortage categories.    --Timeliness of job      --Personnel office
                                                                 offers.                  data.
                                                                --GPAs of new hires,     --Personnel office
                                                                 educational levels.      data.
                                                                                         --Personnel office
                                                                                          data.
                                       --Reduced                --Actual/perceived       --Attitude survey.
                                        administrative           skills.
                                        workload/paperwork
                                        reduction.
    b. Term Appointment Authority....  --Increased capability   --Number/percentage of   --Workforce data.
                                        to expand and contract   conversions from        --Personnel office
                                        workforce.               modified term to         data.
                                                                 permanent appointments.
    c. Flexible Probationary Period..  --Expanded employee      --Average conversion     --Workforce data.
                                        assessment.              period to permanent     --Personnel office
                                                                 status.                  data.
                                                                --Number/percentage of   --Workforce data.
                                                                 employees completing    --Personnel office
                                                                 probationary period.     data.
                                                                --Number of separations  --Workforce data.
                                                                 during probationary     --Personnel office
                                                                 period.                  data.
6. Expanded Development
 Opportunities:
    a. Sabbaticals...................  --Expanded range of      --Number and type of     --Workforce data.
                                        professional growth      opportunities taken.
                                        and development.
                                       --Application of         --Employee and           --Attitude survey.
                                        enhanced knowledge and   supervisor perceptions.
                                        skills to work product.
    b. Critical Skills Training......  --Improved               --Number and type of     --Personnel office
                                        organizational balance.  training.                data.
                                                                --Placement of           --Personnel office
                                                                 employees, skills        data.
                                                                 imbalances corrected.
                                                                --Employee and           --Attitude survey.
                                                                 supervisor perceptions.
                                                                --Application of         --Attitude survey/focus
                                                                 knowledge gained from    groups.
                                                                 training.
7. Combination of All Interventions:
    All..............................  --Improved               --Combination of         --All data sources.
                                        organizational           personnel measures.
                                        effectiveness.
                                       --Improved management    --Employee/management    --Attitude survey.
                                        of the workforce.        job satisfaction
                                                                 (intrinsic/extrinsic).
                                       --Improved planning....  --Planning procedures..  --Strategic planning
                                                                                          documents.
                                                                --Perceived              --Organizational
                                                                 effectiveness of         charts.
                                                                 planning procedures.
                                       --Improved cross         --Actual/perceived       --Attitude survey.
                                        functional               coordination.
                                        coordination.
                                       --Increased product      --Customer satisfaction  --Customer satisfaction
                                        success.                                          surveys.

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                                       --Cost of innovation...  --Project training/      --Demo project records.
                                                                 development costs       --Contract documents.
                                                                 (staff salaries,
                                                                 contract costs,
                                                                 training hours per
                                                                 employee).
8. Context:
    Regionalization..................  --Reduced servicing      --HR servicing ratios..  --Personnel office
                                        rations/costs.                                    data, workforce data.
                                                                --Average cost per       --Personnel office
                                                                 employee served.         data, workforce data.
                                       --No negative impact on  --Service quality,       --Attitude survey/focus
                                        service quality.         timeliness.              groups.
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[FR Doc. 01-27065 Filed 10-29-01; 8:45 am]
BILLING CODE 5001-08-P