[Federal Register Volume 66, Number 222 (Friday, November 16, 2001)]
[Notices]
[Pages 57778-57822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28550]



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Part II





Department of Defense





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Office of the Secretary



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Proposed Science and Technology (S&T) Reinvention Laboratory Personnel 
Management Demonstration Project at the U.S. Army Tank-Automotive and 
Armaments Command (TACOM); Notice

  Federal Register / Vol. 66, No. 222 / Friday, November 16, 2001 / 
Notices  

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DEPARTMENT OF DEFENSE

Office of the Secretary


Proposed Science and Technology (S&T) Reinvention Laboratory 
Personnel Management Demonstration Project at the U.S. Army Tank-
Automotive and Armaments Command (TACOM); Notice

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

ACTION: Notice of proposed demonstration project.

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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 changes in personnel 
policy or procedures would result in improved Federal personnel 
management.

DATES: To be considered, comments must be submitted on or before 
January 18, 2002. Public hearings will be scheduled as follows:
    1. Tuesday, December 4, 2001, 1 p.m., at USA TACOM, Command 
Conference Center, Building 1, Picatinny Arsenal, New Jersey 07806.
    2. Tuesday, December 11, 2001, 1 p.m., at USA TACOM, Black Hawk 
Conference Center, Building 110, Rock Island, Illinois 61299.
    3. Wednesday, December 12, 2001, 1 p.m., at USA TACOM, Auditorium, 
Building 200, Warren, Michigan 48397.
    Employees located at other sites with video teleconferencing 
facilities can observe the public hearings and submit their written 
comments to the address provided below.
    At the time of the hearings, interested persons or organizations 
may present their written or oral comments on the proposed 
demonstration. The hearings will be informal. However, anyone wishing 
to testify should contact the person listed under FOR FURTHER 
INFORMATION CONTACT and state the hearing location, so that DoD can 
plan the hearings and provide sufficient time for all interested 
persons and organizations to be heard. Priority will be given to those 
on the schedule, with others speaking in any remaining available time. 
Each speaker's presentation will be limited to five minutes. Written 
comments may be submitted to supplement oral testimony during the 
public comment period.

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

FOR FURTHER INFORMATION CONTACT: On proposed demonstration project: 
Gregory L. Berry, USA TACOM, ATTN AMSTA-CM-HD MS #161, 6501 E 11 Mile 
Road, Warren, Michigan 48397-5000, (810) 574-5053; on proposed 
demonstration project and public hearings: DoD, Patricia M. Stewart, 
CPMS-AF, Suite B-200, 1400 Key Boulevard, Arlington, Virginia 22209-
5144, (703) 696-1302.

SUPPLEMENTARY INFORMATION: Since 1966, many studies of Department of 
Defense (DoD) laboratories have been conducted on laboratory quality 
and personnel. Almost all of these studies have recommended 
improvements in civilian personnel policy, organization, and 
management. The proposed project involves: (1) Three appointment 
authorities (permanent, modified term, and temporary limited); (2) 
extended probationary period for newly hired Professional and Business 
Management employees: (3) broadbanding; (4) simplified, accelerated 
hiring; (5) modified reduction-in-force (RIF) procedures; (6) 
simplified job classification; (7) a pay-for-performance based 
appraisal system; (8) academic degree and certificate training; (9) 
sabbaticals; and (10) a voluntary emeritus corps.

    Dated: November 8, 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 Locations
    E. Participating Employees and Union Representation
    F. Project Design
    G. Personnel Management Board and Personnel Policy Boards

III. Personnel System Changes

    A. Broadbanding
    B. Classification
    C. TACOM Appraisal and Performance Payout System (TAPPS)
    D. Hiring and Appointment Authorities
    E. Internal Placement and Pay Setting
    F. Employee Development
    G. Reduction in Force (RIF)

IV. Implementation Training

    A. Policy
    B. Supervisors
    C. Others Administering the Demonstration Project
    D. Employees

V. Conversion

    A. Conversion to the Demonstration Project
    B. Conversion Out of the Demonstration Project

VI. Project Duration

VII. Evaluation Plan

    A. Overview
    B. Evaluation Model
    C. Evaluation
    D. Method of Data Collection

V. Demonstration Project Costs

    A. Cost Discipline
    B. Developmental Costs

IX. Required Waivers and Adaptations of Law and Regulation

    A. Waivers and Adaptations of Title 5, United States Code 
(U.S.C.)
    B. Waivers and Adaptations of Title 5, Code of Federal 
Regulations (CFR)
    C. Adaptation of Title IV of the Federal Employees Pay 
Comparability Act of 1990 (Public Law 101-509): Federal Law 
Enforcement Pay Reform
Appendix A: Occupational Series by Occupational Family
Appendix B: Position Description Form (Sample)
Appendix C: Broadband Performance Benchmarks by Occupational Family
Appendix D: TACOM Appraisal and Performance Payout Forms (Samples)
Appendix E: Project Evaluation Model

I. Executive Summary

    This project was designed by the U.S. Army Tank-automotive and 
Armaments Command (TACOM), with participation and review by the 
Department of the Army (DA) and the Department of Defense (DoD).
    The TACOM mission is to generate war-fighting capability for the 
U.S. Army; to sustain the war-fighting readiness of the Army; to manage 
the Army's investment in science and technology, research and 
development, and sustainment; and to serve as the life-cycle manager 
and integrator for ground combat and support equipment. TACOM's goals 
are to manage from the customer perspective; increase customer 
satisfaction; reduce the cost of doing business; and work the 
partnerships with, and commitments to, our customers, suppliers, 
associates, and stakeholders. To achieve this mission, TACOM must hire 
and retain dynamic, enthusiastic, innovative, committed, and highly-
educated scientists, engineers, and support personnel who possess and 
can develop the multiple

[[Page 57779]]

knowledges, skills, and abilities necessary to meet the challenges of 
the 21st century.
    The purpose of the project is to attain the best possible workforce 
for TACOM, equip the workforce for change, and improve its ability to 
execute the TACOM mission. There are five major areas of change: (a) 
Broadbanding and simplified classification; (b) a pay for performance-
based appraisal system; (c) simplified, accelerated hiring; (d) 
expanded employee development; and (e) modified reduction-in-force 
(RIF) procedures.
    This project is intended to improve the efficiency and 
effectiveness of the human resources management system in order to 
attract and retain a workforce that is leader based, business centered 
and customer focused. The interventions to be demonstrated will link 
pay to performance; simplify processes and paperwork associated with 
position classification and other personnel actions; and emphasize 
productive partnerships among TACOM's leadership, employees, and 
unions. Additionally, the project's expanded opportunities for employee 
training and development (along with the redesign of the workforce as a 
multi-functional, learning organization) will revitalize the business 
intellect of the TACOM workforce.
    TACOM will exercise cost discipline in the development and 
execution of this project, consistent with the Department of the Army 
(DA) plan to downsize laboratories. TACOM leadership will manage and 
control personnel costs to remain within established in-house budgets. 
An in-house budget is a compilation of costs of the many diverse 
components required to fund the day-to-day operations of organizations 
covered by this demonstration. These components generally include pay 
of people (labor, benefits, overtime, awards), training, travel, 
supplies, non-capital equipment, and other costs depending on the 
specific function of the activity.
    DoD and the Department of the Army (DA) will provide for an 
evaluation of the results of the project through the first 5 years 
after implementation. DA has programmed a decision point 5 years into 
the project for permanent implementation, modification and additional 
testing, or termination of the entire demonstration project.
    This plan provides a general description of the project's major 
interventions. Specific operating procedures will provide details on 
how the personnel demonstration will be implemented.

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 modification. 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 15 
grades with 10 steps each and involves lengthy, narrative, individual 
position descriptions which must be classified by complex, 
Governmentwide position classification standards. Because these 
standards have to meet the needs of the entire Federal Government, they 
are not always responsive to the specific needs of TACOM. Additionally, 
the classification standards do not provide for a clear progression 
beyond the full performance level, especially for scientific and 
engineering occupations where progression through technical, as well as 
managerial, career paths is important.
    The current performance management system does not ensure a 
positive correlation between compensation and contributions, value to 
the organization, or support for the goals and objectives of the 
corporation. One of the goals of this demonstration is to attract and 
retain a workforce that is leader based, business centered, and 
customer focused. To this end, TACOM requires a performance appraisal 
system that emphasizes employees' contributions to the mission. 
Finally, current rules on degree 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 
mission needs.

C. Changes Required/Expected Benefits

    The proposed demonstration project will replace GS grades with 
broadbanding and establish a pay for performance-based appraisal 
system. In response to skills imbalances, rapidly changing missions, 
and the challenge of developing multi-functional employees, the project 
also incorporates modified reduction-in-force processes and an 
enhanced, expanded program of developmental opportunities.
    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. This project will 
demonstrate that a human resources system tailored to the mission and 
needs of TACOM's workforce will result in increases in the following: 
(1) Quality of the workforce and its products; (2) timeliness of key 
personnel processes; (3) retention of high performers; (4) recruitment 
of personnel with critical skills; (5) management authority and 
accountability for key personnel processes; (6) satisfaction of TACOM 
customers; and (7) workforce satisfaction with the personnel management 
system.

D. Participating Locations

    TACOM has approximately 7,500 employees covered by the project at 
three major sites (Warren, Michigan;

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Picatinny Arsenal, New Jersey; and Rock Island, Illinois) and numerous 
other locations worldwide. Approximately 3,900 additional employees are 
assigned to the Red River Army Depot (RRAD), Texarkana, Texas, to 
include the Camp Stanley Storage Activity, San Antonio, Texas; and the 
Anniston Army Depot (ANAD), Anniston, Alabama, to include the Mobile 
Rail Facility at Hill AFB, Utah. The demonstration project may be 
implemented incrementally for depot employees, in accordance with the 
timetable approved by DA in the project's operating procedures and in 
conjunction with a negotiated agreement with the unions that represent 
the employees at those sites.

E. Participating Employees and Union Representation

    In determining the scope of the demonstration project, primary 
consideration was given to the number and diversity of occupations 
within the corporation and the need for adequate development and 
testing of the appraisal and payout system. Additionally, current DoD 
human resources management design goals and priorities for the entire 
civilian workforce were considered. While the intent of this project is 
to provide TACOM leadership with increased authority and 
accountability, the decision was made to restrict demonstration project 
coverage initially to General Schedule (GS/GM) positions.
    To this end, the project will cover all competitive and excepted 
service appropriated fund civilian GS/GM employees. Members of the 
Senior Executive Service (SES) are excluded; employees classified in 
the Scientific and Professional (ST) pay plan are excluded from 
coverage, except for the provisions under III.F., Employee Development.
    Federal Wage System (FWS) employees will initially be excluded. 
However, a decision point has been programmed between 12 and 30 months 
after initial implementation to determine whether to expand coverage to 
FWS employees. In the event of expansion to FWS employees, full 
approval of the decision to do so and of the expansion plan will be 
obtained from DA and ODASD(CPP).
    Defense Civilian Intelligence Personnel System (DCIPS) employees 
covered by Title 10 are not covered by this demonstration but will 
follow the same employee development provisions of this plan, except 
where those provisions are found to be in conflict with DCIPS. DCIPS 
employees will not be eligible for the educational development payouts, 
because they are not participating in pay-for-performance initiatives.
    Army Civilian Training, Education, and Development System (ACTEDS) 
interns will not be converted to the demonstration project until they 
either reach the target grade of the intern program or otherwise become 
TACOM employees. Locally funded interns and students hired under the 
Student Education Employment Program are included in this 
demonstration; however, the degree to which they are covered by the 
provision of this project plan will be specifically addressed in the 
project's operating procedures. There will be a special provision for 
pay setting for TACOM interns, co-ops, and any other employees with 
whom TACOM establishes a written agreement at the time of selection 
that spells out developmental goals and specific pay progressions. Pay 
adjustments equivalent to those received by their peers covered by 
Title V will be calculated and paid to such employees, in accordance 
with the written agreement. TACOM Appraisal and Performance Payout 
System (TAPPS) pay pool funds will not be used to fund these pay 
adjustments. Details in each individual case will be incorporated into 
the written training agreement at the time of selection.
    The series to be included in the project are identified in Appendix 
A.
    The American Federation of Government Employees (AFGE) and the 
International Federation of Professional and Technical Engineers 
(IFPTE) represent many TACOM employees, while several other unions each 
represent fewer than 100 employees. In all, approximately 87 percent of 
TACOM's employees are represented by labor unions.
    TACOM continues to fulfill its obligation to consult or negotiate 
with unions that represent both professional and nonprofessional 
employees, in accordance with 5 U.S.C. 4703(f) and 7117. Union 
representatives have been jointly involved and collaborated on the 
development of this project. The unions are an integral part of this 
personnel demonstration and will be full partners in arriving at major 
decisions involving project implementation. It is anticipated that this 
project will be implemented uniformly at all sites; however, the 
project will be implemented for a given bargaining unit only after 
there is a written agreement through the collective bargaining process 
with the affected union. The bargaining units of TACOM that do not 
initially participate in the demonstration project will participate 
only when full agreement is reached. The parties may use mediation or 
any other mutually acceptable means to resolve disputes over the 
implementation of the project with respect to unit employees. Neither 
party may request the assistance of the Federal Service Impasses Panel 
to resolve initial implementation disputes.
    Either labor or management may unilaterally withdraw from 
negotiations over the application of this demonstration project to 
bargaining unit members at any time up until final agreement approval, 
without such action being considered an unfair labor practice under 
Section 7116 of Title 5, United States Code for refusing to negotiate 
in good faith.
    Once a written agreement is reached and approved allowing for the 
local implementation of the project, all subsequent negotiations during 
the life of the project shall be subject to binding impasse procedures 
under section 7119 of Title 5, United States Code, or to alternative 
impasse procedures agreed to by the parties.

F. Project Design

    In June 1995, authority under the DoD Science and Technology (S&T) 
Reinvention Laboratory Program was extended individually to both TACOM 
laboratories (the Tank-automotive RDEC and the Armaments RDEC) to 
design personnel demonstration projects for laboratory employees. In 
December 1996, TACOM elected to participate in the DoD civilian 
Acquisition workforce personnel demonstration project for employees not 
assigned to either laboratory, albeit with concerns regarding the 
potential implications of multiple personnel systems. In August 1997, 
in conjunction with dedicated efforts to integrate TACOM mission, 
business, and data environments, the Commander, TACOM determined the 
best course of action for TACOM would be to design a single personnel 
system using the demonstration project authority that could best 
facilitate the desired mission, goals, objectives, and direction of 
TACOM leadership and its associates. A Project Task Force was 
established, with membership from all major TACOM sites, to include 
representation from TACOM's leadership, associates, the unions, and 
human resources, to study the demonstration initiatives for the purpose 
of designing a single plan.
    In February 1998, the Commander, TACOM and the Project Task Force, 
in conjunction with the union leadership, began an extensive 
communication effort to inform and educate the workforce on these 
important changes to the personnel management system.

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Informational videos, brochures, an Internet website, numerous 
briefings, and other communications media were used. From April through 
June, the workforce received briefings on first-generation design 
options for both the science and technology reinvention laboratory 
(STRL) and Acquisition demonstrations. In July, TACOM employees 
completed a survey to determine their interest in the options 
presented.
    Based on the feedback from employees, as well as management's 
desire to make personnel changes that would support reorganization and 
reculturation efforts, TACOM leadership sought to expand the existing 
STRL demonstration project authority beyond ARDEC and TARDEC, in order 
to develop a plan for all of TACOM. In October 1998, TACOM received the 
necessary authority to do so.
    Design of the personnel demonstration was preceded by an exhaustive 
study of broadbanding and appraisal systems now used in the Federal 
sector. The later-generation design options evolved from extensive 
consultation with the designers of other DoD demonstration project 
plans, in particular the Army Research Laboratory and the DoD civilian 
Acquisition workforce personnel demonstration projects.
    Automated systems will be designed to support computation of 
performance-related pay increases and awards, and other personnel 
processes and systems associated with this project.

G. Personnel Management Board and Personnel Policy Boards

    As part of the effort to maintain cost discipline, manage project 
operations, and oversee expenditures, the following board structure 
will be developed to oversee and manage the demonstration project 
operations.
1. TACOM Personnel Management Board
    TACOM will create a Personnel Management Board to oversee and 
monitor the fair and equitable implementation of the demonstration 
project, to include establishment of internal controls and 
accountability. The board will track personnel cost changes and 
recommend adjustments, if required, to achieve the objective of cost 
discipline. In addition, the board will assess the need for changes to 
demonstration project procedures and policies affecting the entire 
covered population.
    The board's membership will consist of senior leadership of TACOM 
appointed by the Commander, to include the Director of Human Resources, 
Chief Counsel, and others as appointed by the Commander for proper 
management and oversight of the entire demonstration project.
2. TACOM Personnel Policy Boards
    In addition to the Personnel Management Board, which has overall 
responsibility for the project, individual Personnel Policy Boards will 
be established by major site location to oversee the day-to-day 
operations of the demonstration project for that specific location. 
Initially, there will be TACOM Personnel Policy Boards for each of the 
major site locations. The Commander, or designee, will determine 
composition of these boards, and as a minimum they will include a 
representative of each local union that represents participating 
bargaining unit employees at that site location, the Civilian Personnel 
Advisory Center (CPAC), the Office of Equal Opportunity, and a 
representative from the Demonstration Project Task Force. The board 
will be responsible for, but not limited to, such duties as the 
following:
    (a) Review operation of pay pools and provide guidance to pay pool 
managers;
    (b) Oversee disputes in pay pool issues;
    (c) Oversee the civilian pay budget; and
    (d) Ensure in-house budget discipline.
    These policy boards will also handle local disputes, resolve 
individual employee situations, and address those other actions not 
requiring the attention of the Personnel Management Board. They will 
regularly provide input to the Personnel Management Board regarding the 
management and effectiveness of the demonstration project at their 
respective sites.

III. Personnel System Changes

A. Broadbanding

    The TACOM demonstration project will use a broadbanding approach to 
compensation and classification. Such an approach overcomes some of the 
problems experienced with the current system. A broadbanding system 
will simplify the classification system by reducing the number of 
distinctions between levels of work, which will facilitate delegating 
classification authority and responsibility to line managers. There are 
several advantages to broadbanding. It is simpler, less time consuming, 
and less costly to maintain. In addition, such a system is more easily 
understood by managers and employees, enables classification authority 
to be easily delegated to managers, coincides with recognized 
occupational families, and complements the other personnel management 
aspects of the demonstration project.
    The broadbanding 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 broadband 
levels are designed to enhance pay progression and allow for more 
competitive recruitment of quality candidates at differing rates within 
the appropriate broadband level(s). Competitive promotions will be less 
frequent, and movement through the broadbands will be a more seamless 
process than today's procedures. Like other broadbanding systems in 
use, advancement within each pay band is based upon performance. The 
project's broadbanding scheme covers all General Schedule, white-collar 
work--administrative, technical, clerical, and professional. Federal 
Wage System (FWS), Scientific and Professional (ST), Senior Executive 
Service (SES), and Defense Civilian Intelligence Personnel System 
(DCIPS) employees are not covered.
1. Occupational Families
    Occupations at TACOM have been grouped into three occupational 
families according to similarities in type of work and customary 
requirements for formal training or credentials. The specific grouping 
of GS grades into a particular pay band level was based on a careful 
examination of the grade levels at which it has proven difficult for 
managers, employees, and classifiers to distinguish between current 
performance levels within occupations, and traditional training and 
career development practices. The common patterns of advancement within 
the occupations as practiced at TACOM and in the private sector were 
also considered. The current occupations and grades have been examined, 
and their characteristics and distribution were used to develop the 
following three occupational families:
    (a) Professional and Business Management (Pay Plan DB): This 
occupational family includes professional positions, such as engineers, 
physicists, chemists, psychologists, metallurgists, mathematicians, and 
computer scientists. It also includes specialized functions in such 
fields as finance, procurement, human resources, public information, 
computing, supply, library science, and management analysis. 
Ordinarily, specific course work or educational degrees (or for non-
professional occupations, specialized skills in specific administrative 
fields) are required.

[[Page 57782]]

    (b) Technical Support (Pay Plan DE): This occupational family 
consists of positions that directly support the various professional 
and business management activities. Employees in these positions are 
not required to have college course work. However, practical, quasi-
professional training and skills in the various aspects of electronic, 
electrical, mechanical, chemical, or computer engineering are generally 
required.
    (c) General Support (Pay Plan DK): This occupational family is 
composed of positions for which minimal formal education is needed, but 
for which special skills, such as office automation, typing, or 
shorthand, may be required. Clerical work usually involves the 
processing and maintenance of records. Assistant work requires 
knowledge of methods and procedures within a specific administrative 
area. Other support functions include the work of secretaries, police, 
and firefighters.
    Each occupational family broadband will be composed of four or five 
discrete pay band levels that correspond to recognized advancement 
within the occupations and the same pay range now covered by two or 
more GS grades. The broadband levels are designed to maintain the 
underlying pay structure of the GS grades by combining complete grade 
pay ranges into the broadband levels.
    The occupational broadband families and pay band levels for the 
occupational families, and how they relate to the current GS framework, 
are shown in Figure 1.

                                                             Figure 1.--Broadbanding Design
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Occupational Families                                                                Corresponding GS Grades
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            1 2 3 4        5 6 7 8 9 10 11           12 13        14 15                      Above 15
--------------------------------------------------------------------------------------------------------------------------------------------------------
Professional and Business Mgt (DB).....           I              II                    III           IV                         V*
                                             GS-1-4            GS-5-11            GS-12-13     GS-14-15   *Engineers & Scientists Only
--------------------------------------------------------------------------------------------------------------------------------------------------------
Technical Support (DE).................           I           II          III           IV            V
                                             GS-1-4       GS-5-8      GS-9-11     GS-12-13     GS-14-15
--------------------------------------------------------------------------------------------------------------------------------------------------------
General Support (DK)...................           I           II          III           IV
                                             GS-1-4       GS-5-7      GS-8-10     GS-11-13
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Not all positions in the occupational broadband families have work 
assignments that will support movement to the top band. Positions that 
typically support the higher salaries perform non-supervisory work 
associated with formulating programs and policies with wide scope and 
impact. Other positions perform supervision of operating-level programs 
in one or more administrative/technical fields.
    Generally, employees will be converted into the occupational family 
(broadband) and pay band level that correspond to their GS series and 
permanent grade of record. Each employee is assured an initial place in 
the system without loss of pay. As the rates of the General Schedule 
are increased due to general pay increases, the minimum and maximum 
rates of the broadband levels will also move up. All employees will 
receive the general pay increases as the increases are approved, except 
for some employees in the Professional and Business Management 
broadband occupational family in Pay Band Level V. Since the maximum 
rate for Pay Band Level V is linked to ES-4, employees at or near the 
top of the band may not receive the full general increase if it is not 
authorized for SES employees. Special salary rates will no longer be 
applicable to demonstration project employees. All employees will 
receive future locality pay increases for their geographical area or a 
staffing supplement (see III E 2 c, Staffing Supplement). Employees can 
receive pay increases based on their assessments under the TACOM 
Appraisal and Performance System (TAPPS). Since pay progression through 
the levels is performance based, there will be no scheduled within-
grade increases (WGIs) or quality step increases (QSIs) for employees 
once the broadbanding system is in place.
    Newly hired personnel entering the system will be employed at a pay 
band level consistent with the expected level of performance of the 
position and individual basic qualifications for the particular level, 
as determined by rating against qualifications standards. Starting 
salary will be determined based upon available labor market 
considerations relative to special qualification requirements, 
availability of qualified applicants, programmatic urgency, and the 
education and experience of the new candidates. In addition to the 
flexibilities available under the broadbanding system, the authorities 
for retention, recruitment, and relocation payments granted under the 
Federal Employees Pay Comparability Act of 1990 (FEPCA) and any other 
future, similar legislation, can also be used.
2. Simplified Assignment Process
    Today's environment of downsizing and workforce transition mandates 
that TACOM have increased flexibility to assign individuals. 
Broadbanding can be used to address this need. As a result of a more 
general position description, the organization will have increased 
flexibility to assign an employee consistent with the needs of the 
organization and the individual's qualifications and level, without a 
position change. 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.
    Such assignments within the coverage of the generic descriptions 
are accomplished without the need to process a personnel action. For 
instance, a technical expert can be assigned to any project, task, or 
function requiring similar technical expertise. This flexibility allows 
broader latitude in assignments and further streamlines the 
administrative process and system.
3. Pay Band Level V
    The TACOM plan expands the broadbanding concept used at China Lake 
and the National Institute of Standards and Technology (NIST) by 
creating Pay Band V for engineers and scientists. This pay band is 
designed for Senior Scientific Technical Managers.
    Current legal definitions of Senior Executive Service (SES) and 
Scientific and Professional (ST) positions do not fully meet the needs 
of TACOM. The SES designation is appropriate for executive level 
managerial positions whose classification exceeds the GS-15

[[Page 57783]]

grade level. The primary knowledge and abilities of SES positions 
relate to supervisory and managerial responsibilities. Positions 
classified as ST are reserved for bench research scientists and 
engineers; these positions require a very high level of technical 
expertise, and they have little or no supervisory responsibility.
    TACOM currently has a few positions that have characteristics of 
both SES and ST classifications. Most of these positions are 
responsible for supervising other GS-15 positions, including branch 
chiefs, non-supervisory research engineers and scientists, and in some 
cases, ST positions. These positions are classified at the GS-15 level, 
although their technical expertise warrants classification beyond GS-
15. Because of their management responsibilities, these individuals are 
excluded from the ST system. Because of management considerations, they 
cannot be placed in the SES.
    TACOM management considers the primary requirements for these 
positions to be knowledge of, and expertise in, the specific scientific 
and technology areas related to the mission of their respective areas. 
Historically, incumbents of these positions have been recognized within 
the community as scientific and engineering leaders who possess 
primarily scientific/engineering credentials and are considered experts 
in their field. However, they must also 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 inherent in the positions 
cannot be ignored.
    The purpose of Pay Band Level V is to solve a critical 
classification problem. It will also contribute to an SES ``corporate 
culture'' by excluding from the SES, positions for which technical 
expertise is paramount. Pay Band V attempts to overcome the 
difficulties identified in the previous paragraph by creating a new 
category of positions, the Senior Scientific Technical Manager, which 
has both scientific/technical expertise and full managerial and 
supervisory authority.
    Current GS-15s will convert into the demonstration project at Pay 
Band IV. After conversion, their positions will be reviewed against 
established criteria to determine if they should be reclassified to Pay 
Band V. Other positions possibly meeting criteria for classification to 
Pay Band V will be reviewed on a case-by-case basis.
    The salary range is a minimum of 120% 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 
positions in Pay Band V will be competitively filled to ensure that 
selectees are preeminent researchers and technical leaders in the 
specialty fields who also possess substantial managerial and 
supervisory abilities.
    TACOM 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 Pay Band V positions. Panel members will 
be selected from a pool of current TACOM SES members, ST employees, 
and, later, those in Pay Band V, and an equal number of individuals of 
equivalent stature from outside the laboratory to ensure impartiality, 
diversity, breadth of technical expertise, and a rigorous and demanding 
review. The panel will apply criteria developed largely from the 
current OPM Research Grade-Evaluation Guide for positions exceeding the 
GS-15 level.
    DoD will test the establishment of Pay Band V for a 5-year period. 
Positions established in Pay Band V will be subject to limitations 
imposed by OPM and DoD. Pay Band V positions will be established only 
in an S&T reinvention laboratory that employs scientists, engineers, or 
both. Incumbents of Pay Band V positions will work primarily in their 
professional capacity on basic or applied research and secondarily 
perform managerial or supervisory duties.
    The number of Pay Band V positions within the Department of Defense 
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 Pay Band V 
positions will be reviewed periodically to determine appropriate 
position requirements. Pay Band V position allocations will be managed 
separately from SES, ST, and SL positions. An evaluation of the Pay 
Band V concept 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 
laboratory wants 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 23 occupational families. 
The TACOM demonstration project currently has over 100 series that fall 
into 20 occupational families. The occupational series, which 
frequently provide well-recognized disciplines with which employees 
wish to be identified, will be maintained. This will facilitate 
movement of personnel in and out of the demonstration project. Other 
series established by OPM may be added as needed to reflect new 
occupations in the workforce in response to changing missions.
2. Classification Standards
    The present system of OPM classification standards will be used to 
create local benchmark position descriptions for each pay band level, 
reflecting duties and responsibilities comparable to those described in 
present classification standards for the span of grades represented by 
each pay band level. Current series and occupational titles of 
positions will continue to be used in order to recognize the types of 
work being performed and the educational backgrounds and requirements 
of incumbents. Specialty codes and OPM functional codes may be used to 
facilitate titling, make qualification determinations, and assign 
competitive levels. References in the position classification standards 
to grade criteria will not be used as part of this demonstration 
project. Rather, the appraisal and payout system's standardized rating 
criteria factors and performance level definitions, as designed in the 
three broadband occupational families, will be used for the purpose of 
making broadband/pay band level determinations. These factors/
definitions are based on the OPM primary classification standard and 
eliminate the need for the use of grading criteria in the OPM 
classification standards. Standardized rating criteria factors and 
performance level definitions can be found in III.C., TACOM Appraisal 
and Performance Payout System (TAPPS) and Appendix

[[Page 57784]]

C, Broadband Performance Benchmarks by Occupational Family.
3. Classification Authority
    The TACOM Commander will have delegated classification authority 
and may re-delegate this authority to subordinate management levels. 
First-line supervisors will provide classification recommendations. 
Human resources specialists will provide on-going consultation and 
guidance to managers and supervisors throughout the classification 
process.
4. Position Descriptions
    Under the demonstration project's classification system, a new 
position description (like that shown at Appendix B) will replace the 
current DA Form 374, Department of the Army Job Description. The 
classification standard used for each pay band level 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. The objectives in developing the new 
descriptions are to: (a) Simplify the descriptions and the preparation 
process through the use of standardized rating criteria factors and 
performance level definitions; (b) provide more flexibility in 
assigning work; and (c) provide a more accurate and useful tool for 
other functions of personnel management, such as recruitment, 
measurement of accomplishments, employee development, and reduction in 
force.
5. Fair Labor Standards Act
    Fair Labor Standards Act (FLSA) exemption or non-exemption 
determinations will be made consistent with criteria found in 5 Code of 
Federal Regulations (CFR) Part 551. Each position will be evaluated on 
a case-by-case basis by comparing the duties and responsibilities 
assigned, the classification standards for each pay band level, and the 
5 CFR Part 551 FLSA criteria. The final review of FLSA status will be 
made by the servicing Civilian Personnel Operations Center (CPOC).
6. 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 supervisor 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 that 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 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 
addressed through an alternative dispute resolution procedure.
    The evaluation of classification appeals under this demonstration 
project is 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. TACOM Appraisal and Performance Payout System (TAPPS)

1. Overview
    The intent of the TACOM Appraisal and Performance Payout System 
(TAPPS) is to provide an equitable and flexible method for appraising 
and compensating employees. This system allows for more employee 
involvement in the performance appraisal process, increased 
communication between supervisors and employees, clear accountability 
of accomplishments and achievements, facilitation of employee 
progression tied to standardized rating criteria factors, and an 
understandable basis for performance payout (salary increase and/or 
bonus) determinations.
2. The TACOM Appraisal and Performance Payout System (TAPPS)
    This system provides for a comprehensive, balanced assessment/
measurement system that considers employee accomplishments, self-
development, and corporate/personal vision. The process under this 
demonstration project measures an employee's accomplishments against 
standardized rating criteria factors, rather than individual 
objectives. In turn, such measurement facilitates performance payout 
decisions in the form of ``share earnings'' on the basis of an 
employee's overall annual accomplishments when compared to their 
current salary. The performance evaluations made under the 
demonstration project will ensure that top performers receive a 
performance payout commensurate with their achievement.
(a) Standardized Rating Criteria Factors and Performance Level 
Definitions (Broadband Performance Benchmarks)
    An employee's accomplishments are measured against standardized 
rating criteria factors (each of which is a component of the position 
classification standards) and performance level definitions. Taken 
together, these factors capture the critical content of jobs in each 
broadband occupational family. Each factor is considered critical to 
successful job performance. The factors and performance level 
definitions may not be modified or supplemented, as they are the same 
as those used to classify a position at the appropriate pay band level.
    The six standardized rating criteria factors are: (1) Problem 
Solving, (2) Teamwork/Cooperation, (3) Customer Relations, (4) 
Leadership, (5) Communication, and (6) Resource Management. These 
rating criteria factors will be used in evaluating the yearly 
accomplishments of employees within the demonstration project in the 
three broadband occupational families: (1) Professional and Business 
Management; (2) Technical Support; and (3) General Support. Each factor 
is defined and has ``sub-factors'' to consider, as well as increasing 
levels of accomplishments (performance) that directly correspond to the 
appropriate pay band levels. Each performance level presents 
``performance illustrations'' for the respective pay band level within 
the relevant broadband occupational family. Performance level 
definitions for each factor in the three broadband occupational 
families are outlined in Appendix C, Broadband Performance Benchmarks 
by Occupational Family by Occupational Family.
(b) The Appraisal Process
    The TAPPS appraisal cycle is 1 year in duration, beginning April 1 
and ending March 31 of the following year. At the beginning of the 
annual appraisal cycle, an employee's performance benchmarks will be 
discussed with him/her.
    While each of the standardized rating criteria factors is 
considered a critical part of the job, it may be that a particular 
factor is considered more important to the employee's performance than 
another. Given this, and at the discretion of the rating

[[Page 57785]]

official, rating criteria factors may be weighted consistent with 
desired performance. Different weights may be applied to factors to 
produce a weighted average. Weights on factors must add up to 100. 
Weights will be applied uniformly for similarly situated employees 
performing the same tasks and approved by the pay pool manager. 
Employees will be given information as to weighted criteria in 
conjunction with the performance discussion at the beginning of the 
appraisal cycle. Upon approval of this plan, demonstration project 
operating procedures will provide details on weighting rating criteria 
factors to employees and rating officials.
    The minimum period of performance that must be completed before a 
performance rating may be prepared is 120 days. Employees cannot be 
rated until they perform under an approved performance plan for at 
least 120 days.
    The purpose of the performance discussion at the beginning of the 
rating cycle is to ensure the employee understands his/her performance 
objectives and how their objectives relate to the rating factors and 
standardized rating criteria. A performance objective is defined as a 
statement of specific job responsibilities expected of the employee 
during the rating period. These are to be based on the organization's 
mission and goals and should be consistent with the employee's position 
description. While the standardized rating criteria may not be modified 
or changed, individual performance objectives may be modified and/or 
changed as appropriate during the rating cycle. As a 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 changes occur.
    Rating officials and employee collaboration on the development of 
specific work assignments and tasks, and objectives, and discussion of 
the employee's accomplishments within the appraisal system's framework, 
should be conducted not only at the beginning of the cycle, but 
regularly throughout the rating period. Disagreements will be handled 
through the normal chain of command. Management retains the right to 
establish objectives and identify their importance. Employees retain 
their current grievance rights. Use of alternative dispute resolution 
is encouraged.
    The rating official will conduct a mid-point performance review to 
provide feedback to the employee on how well he/she is performing. 
Additionally, whenever a rating official determines that an employee's 
accomplishments are at a level that could result in an unacceptable 
performance rating, the rating official will discuss the situation with 
the employee in an effort to identify the reasons for poor performance. 
Corrective actions, to include establishing a performance improvement 
plan (PIP), may be taken at any time during the rating cycle.
    At the end of the appraisal cycle, the employee submits a summary 
of accomplishments for each of the six factors. Employees will submit 
their own accomplishments and may also solicit input from team members, 
customers, peers, supervisors in other organizations, subordinates, and 
other sources, which will permit the rating official to fully measure 
the employee's accomplishments during the rating cycle. From the 
employee's input and the rating official's own knowledge, the rating 
official identifies, for each employee, the most appropriate 
performance level (Level I, II, III, IV, or V) and score range (low, 
medium, or high) for each factor which best describes the level of work 
accomplished. This rating is called a factor level rating.
    Appendix D contains the appropriate appraisal and performance 
payout forms. All rating officials in a pay pool then meet to reconcile 
the assigned factor level ratings for all employees within their 
respective pools, with the purpose being to reach a consensus on the 
type and level of achievements that warrant particular scores.
    Pay pool managers will establish and chair a panel to review 
supervisors' preliminary factor level ratings and make any necessary 
adjustments. The panel will consist of all rating supervisors below the 
pay pool manager. The reconciliation process gives raters the 
opportunity to verify that their factor level ratings and approach to 
scoring conform with that of other raters within the pay pool and 
ensures that performance assessments of employees are comparable and 
equitable across organizational lines and among occupational families. 
In this step, each employee's factor level rating is compared and, 
through discussion and consensus building, a final score is re-affirmed 
for each factor. The reconciliation process is aimed at determining the 
relative worth of employee accomplishments. The rationale behind 
reconciliation is that supervisors within a pay pool will reach a 
consensus on the type and level of accomplishment that warrant 
particular scores. Each panel will develop operating procedures that 
will provide for fair and equitable conclusions within the guidance 
provided by the Personnel Management and/or Policy Boards. If the panel 
cannot reach consensus, the pay pool manager makes final decisions. 
After this reconciliation process is complete, a final overall 
performance rating score (OPRS) is calculated for each employee.
(c) Pay Pools
    The pay pool structure and allocated funds are under the authority 
of the TACOM Commander, or designee. The following minimal guidelines 
will apply.
    (1) A pay pool is based on the organizational structure and should 
include a range of salaries and broadband/pay band levels;
    (2) A pay pool should be large enough to constitute a reasonable 
statistical sample (i.e., whenever possible, no fewer than 35 nor more 
than 300 individuals);
    (3) A pay pool should be large enough to include a second level of 
supervision, since the appraisal process uses a group of rating 
officials in the pay pool to determine overall performance rating 
scores and recommended payout determinations; and
    (4) Neither the pay pool manager nor the rating officials within a 
pay pool will recommend or set their own individual performance payout.
(d) The Overall Performance Rating Score (OPRS)
    The pay pool panel members calculate each employee's overall 
performance rating score (OPRS). To determine the OPRS, numerical 
values are assigned to the factor level ratings assigned to each 
employee using the ranges shown in Figure 2. Generally, the overall 
score is calculated by averaging the numerical values assigned for each 
of the six factors. (All OPRS will be rounded up to the nearest whole 
number.) In order to ensure accurate assessment and scoring, the 
overlap of the score ranges among pay band levels (Figure 2) allows for 
the ``exceptional'' employee in a particular pay band level to receive 
scores commensurate with performance at the next higher pay band level. 
Likewise, an employee may receive a score commensurate with performance 
in the next lower pay band level. Figure 2 shows the typical OPRS 
ranges, that is, the minimum and maximum OPRS commensurate with each 
pay band level.

[[Page 57786]]



 Figure 2.--Overall Performance Rating Score (OPRS) Ranges by Broadband
------------------------------------------------------------------------
                                                             Normal OPRS
                Broadband level                  GS grades      range
------------------------------------------------------------------------
   Professional and Business Management--Broadband Occupational Family
------------------------------------------------------------------------
I.............................................          1-4         0-32
II............................................         5-11        24-72
III...........................................        12-13        67-92
IV............................................        14-15       86-115
V.............................................     Above 15      105-120
------------------------------------------------------------------------
            Technical Support--Broadband Occupational Family
------------------------------------------------------------------------
I.............................................          1-4         0-32
II............................................          5-8        24-56
III...........................................         9-11        47-72
IV............................................        12-13        67-92
V.............................................        14-15       86-115
------------------------------------------------------------------------
             General Support--Broadband Occupational Family
------------------------------------------------------------------------
I.............................................          1-4         0-32
II............................................          5-7        24-50
III...........................................         8-10        41-67
IV............................................        11-13        57-96
------------------------------------------------------------------------

    The pay pool panel conducts a final review of the scores, ensuring 
equity and consistency in the rating of all employees. Final approval 
of scores rests with the pay pool manager. The OPRS, as approved by the 
pay pool manager, becomes the rating of record. Rating officials will 
communicate the factor scores and overall score to each employee and 
discuss the panel results.
(e) Standard Pay Table
    Each overall performance rating score (OPRS) corresponds to an 
appropriate salary level (defined as ``expected salary'') as determined 
by the standard pay table (Figure 3). Each employee's expected salary 
will be determined on the basis of his/her OPRS. The expected salary 
will then be compared to the employee's current salary, a salary 
variance computed, and the number of earned shares determined.
    The standard pay table provides a direct link between increasing 
levels of accomplishment and increasing levels of salary. The rating 
score column spans from 0 to 120, the maximum overall performance 
rating score attainable. The salary column ranges from $14,244 
(equivalent to GS-1, step 1) to $125,500 (the highest level of pay 
possible at ES level 4). Changes in rating score (0 to 120) correspond 
to a constant percentage change in salary. This table encompasses the 
full salary range paid under this demonstration project for calendar 
year 2001 (GS-1, step 1 through ES level 4). Each year, the standard 
pay table will be adjusted to reflect changes in the General Schedule 
pay table and changes to the ES-4 salary level. (This annual adjustment 
does not require publication of a notice in the Federal Register.) The 
standard pay table does not include locality pay and is the same for 
all broadband occupational families.

                                       Figure 3.--2001 Standard Pay Table
----------------------------------------------------------------------------------------------------------------
   Score         Salary         Score         Salary         Score         Salary        Score        Salary
----------------------------------------------------------------------------------------------------------------
       0          $14,244          31          $24,990          61          $43,054          91         $74,177
       1           14,505          32           25,447          62           43,842          92          75,534
       2           14,770          33           25,913          63           44,644          93          76,916
       3           15,040          34           26,387          64           45,461          94          78,323
       4           15,316          35           26,870          65           46,293          95          79,757
       5           15,596          36           27,361          66           47,140          96          81,216
       6           15,881          37           27,862          67           48,003          97          82,702
       7           16,172          38           28,372          68           48,881          98          84,216
       8           16,468          39           28,891          69           49,775          99          85,757
       9           16,769          40           29,420          70           50,686         100          87,326
      10           17,076          41           29,958          71           51,614         101          88,924
      11           17,388          42           30,506          72           52,558         102          90,551
      12           17,707          43           31,064          73           53,520         103          92,208
      13           18,031          44           31,633          74           54,499         104          93,895
      14           18,360          45           32,212          75           55,496         105          95,613
      15           18,696          46           32,801          76           56,512         106          97,363
      16           19,039          47           33,401          77           57,546         107          99,144
      17           19,387          48           34,012          78           58,599         108         100,959
      18           19,742          49           34,635          79           59,671         109         102,806
      19           20,103          50           35,259          80           60,763         110         104,687
      20           20,471          51           35,912          81           61,875         111         106,603
      21           20,845          52           36,571          82           63,007         112         108,553
      22           21,227          53           37,240          83           64,160         113         110,540
      23           21,615          54           37,922          84           65,334         114         112,563
      24           22,413          55           38,616          85           66,530         115         114,622
      25           22,842          56           39,322          86           67,747         116         116,720
      26           23,241          57           40,042          87           68,987         117         118,855
      27           23,667          58           40,774          88           70,249         118         121,030
      28           24,100          59           41,521          89           71,535         119         123,245
      29           24,541          60           42,280          90           72,844         120         125,500
      30           24,990
----------------------------------------------------------------------------------------------------------------

    Employees may anticipate their corresponding OPRS by locating their 
salary and the score associated with it (Figure 3).
(f) Salary Variance
    Once the OPRS is determined and the employee's expected salary and 
current salary compared, a salary variance is computed. The formula for 
determining the salary variance is:

[[Page 57787]]

[GRAPHIC] [TIFF OMITTED] TN16NO01.000

    The salary variance is then used to calculate earned shares for 
each employee in accordance with the guidelines in Figure 4 for 
purposes of determining performance payout. The number of shares earned 
by an employee will determine the dollar value of the payout.

              Figure 4.--Share Variance/Shares Earned Table
------------------------------------------------------------------------
                                                              Number of
       If salary variance is:               Category            shares
                                                                earned
------------------------------------------------------------------------
Less than -8%......................  E.....................            4
Greater than or equal to -8% and     D.....................            3
 Less than or equal to 0%.
Greater than 0% and Less than or     RTC...................          **2
 equal to 8%.
Greater than 8% and Less than or     B.....................           *1
 equal to 16%.
Greater than 16%...................  A.....................           0
------------------------------------------------------------------------
* The share earned for a category B salary variance will be paid in the
  form of a bonus.
** The base increase payout for category C may not exceed the amount
  needed to raise an employee's salary to 8 percent above the expected
  salary for their OPRS. The portion of the base increase payout that
  exceeds this amount will be paid in the form of a bonus.

    A pay pool manager may request approval from the Personnel 
Management Board (PMB) or its designee to grant an employee a 
performance payout higher than the amount derived by calculating the 
employee's shares earned. The PMB or designee will document its 
rationale for granting or denying any such requests.
    (g) Share Values and Payouts
    Share values will vary depending on the number of employees within 
a pay pool and the total number of shares earned by all employees in 
the pool. However, the exact value of a share cannot be determined 
until the pay pool panel's rating and reconciliation of the employees' 
OPRS have been completed. Inflated ratings (should they occur) will 
reduce the value of the share; conversely, lower average ratings will 
increase the value of a share. The share value is expressed as a 
percentage of base salary. It is computed by dividing the amount of the 
pay pool by the sum of each pay pool member's salary multiplied by his/
her earned shares, or:
[GRAPHIC] [TIFF OMITTED] TN16NO01.001

    Each employee's performance payout is then calculated by 
multiplying the share value for the pay pool by the employee's base 
salary and shares earned, or:

Performance Payout = Share Value  x  Salary  x  Shares Earned
(h) Payout Records
    Pay adjustments will be documented by SF-50, Notification of 
Personnel Action. For historical and analytical purposes, the effective 
date of the TAPPS assessments, actual appraisal scores, actual salary 
increases, amounts contributed to the pay pool, and applicable bonus 
amounts will be maintained for each demonstration project employee.
(i) Employees on Retained Rate
    Employees on retained rate in the demonstration will receive pay 
adjustments in accordance with 5 U.S.C. 5363 and 5 CFR 536.101 as 
waived or modified by IX, Required Waivers and Adaptations to Law and 
Regulation, of this plan. An employee receiving a retained rate is 
eligible for a bonus but ineligible for a base salary increase, since 
such increases are limited by the maximum salary rate for the 
employee's pay band level.
3. Payout Determinations
    The amount of money available for base salary increases and bonuses 
within a pay pool is determined by the money that would have been 
available in the General Schedule system for quality step increases, 
within-grade increases, promotions between grades in the same pay band 
level, and performance awards. TAPPS provides the ability to make a 
performance payout in the form of a bonus to employees who are at the 
top of their pay band level and cannot receive an increase in base pay. 
Bonuses differ from salary increases in that they are not added to base 
salary, but rather are given as a lump sum payment. Employees whose 
performance payout would result in a base salary increase such that the 
new salary exceeds the maximum salary for their current pay band level 
shall instead receive a bonus equaling the difference. The dollars to 
be included in the pay pool will be computed annually based on the 
salaries of the employees in the pay pool. After the initial assignment 
into the demonstration project, employees' yearly performance payouts 
will be determined by the process described in this section.
    Performance payout determinations will be made on the basis of the 
appraisal and OPRS and the employee's rate of basic pay. Final pay 
determinations will be made at the pay pool manager's level. Overall 
performance rating scores (OPRS) can only be adjusted after discussion 
with the pay pool manager.
4. The Base Salary Increase Fund and the Bonus Fund
    Cost discipline is ensured within each pay pool by establishing the 
base salary increase fund with monies that would have been available in 
the General Schedule system from within-grade increases, quality step 
increases, and promotions between grades that are now encompassed in 
the same pay band level. The base salary increase fund will be set at 
not less than two percent (2%) of the activity's total salary budget.
    The bonus fund includes monies that were formerly available for 
performance awards and that will be used in the demonstration project 
for awards given under the TAPPS process. The bonus fund will be set at 
not less than 1.5 percent (1.5%) of the activity's total salary budget. 
Monies rendered from this fund must be paid in the form of a bonus and 
cannot be used for increases to base salary.
    The TACOM Commander may consider allocating funds above the minimum 
levels on an annual basis.

[[Page 57788]]

5. Awards
    Because TAPPS rewards performance as reflected in the employee's 
most recent OPRS, traditional performance awards under 5 CFR 
451.104(a)(3) will not be used under the demonstration project. 
However, management may continue to grant cash, honorary, or informal 
recognition awards, or grant time-off without charge to leave or loss 
of pay, unrelated to the TAPPS process. These awards may include, but 
are not limited to, value engineering awards, suggestion awards, and 
special act or service awards. They may be granted by any level of 
management (including MACOM, DA, and DoD) to individuals or groups of 
employees. Cash awards are lump-sum payments and are not basic pay for 
any purpose.
6. Interns
    Interns hired into the demonstration project will be placed on an 
agreement that will allow them to progress in pay increments equivalent 
to non-demonstration project interns. Operating procedures will be 
developed to ensure comparability under the demonstration with current 
pay promotion practices for local interns, as well as other employees 
who, under pre-demonstration agreements, were competitively selected to 
progress non-competitively to higher grade(s) than previously held.

D. Hiring and Appointment Authorities

1. Simplified, Accelerated Hiring
    The complexity of the current system and various hiring 
restrictions create delays and hamper management's ability to hire, 
develop, realign, and retain a quality workforce. Line managers find 
the complexity limiting as they attempt to accomplish timely 
recruitment of needed skills. To compete with the private sector for 
the best talent available and be able to make expeditious job offers, 
managers need a process that is streamlined, easy to administer, and 
allows for timely job offers. In order to create a human resource 
management system that facilitates mission execution and organizational 
excellence, this demonstration project will respond to today's dynamic 
environment of downsizing and restructuring by obtaining, developing, 
utilizing, incentivizing, and retaining high-performing employees. The 
demonstration project will provide a flexible system that can reduce, 
restructure, or renew the workforce quickly to meet diverse mission 
needs, respond to workload exigencies, and contribute to quality 
products, people and workplaces.
    Specifically, this part of the demonstration project will provide 
simplified, accelerated hiring that allows a more rapid appointment of 
individuals to positions. Appropriate recruitment methods and sources 
will include those that are likely to yield quality candidates with the 
knowledge, skills, and abilities necessary to perform the duties of the 
position.
(a) Delegated Examining Process
    This demonstration project establishes a streamlined examining 
process. This process may be used to fill positions covered by this 
demonstration project with the following exceptions: Positions in the 
Senior Executive Service or the Executive Assignment System, Senior 
Level (ST/SL) positions; Administrative Law Judge positions; and 
positions subject to any examining process covered by court order.
    The qualifications required for placement into a position in a pay 
band level within a broadband occupational family will be determined 
using OPM's Operating Manual, ``Qualification Standards for General 
Schedule Positions.''\1\ Since the pay band levels are anchored to the 
General Schedule grade levels, the minimum qualification requirements 
for a position will be the requirements corresponding to the lowest 
General Schedule grade incorporated into that pay band level. For 
example, the minimum eligibility requirements for a position in Pay 
Band Level II in the Professional and Business Management broadband 
occupational family will be the GS-5 qualification requirements for 
that series. Selective factors may be established for a position in 
accordance with OPM qualification standards when determined to be 
critical to successful job performance. These factors become part of 
the minimum requirements for the position that applicants must meet in 
order to be eligible. If used, selective factors will be clearly stated 
as part of the qualification requirements in vacancy announcements and 
recruiting bulletins.
---------------------------------------------------------------------------

    \1\ Available from the U.S. Office of Personnel Management's web 
site, www.opm.gov.
---------------------------------------------------------------------------

    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. To ensure selection is made 
from among the best qualified, demonstration project operating 
procedures will establish a method to distinguish the relative ability 
of the candidates. 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.
(b) Distinguished Scholastic Achievement Appointment
    This demonstration project establishes a distinguished scholastic 
achievement appointment using an alternative examining process that 
provides the authority to appoint undergraduates and graduates through 
the doctoral level to professional positions at the equivalent of GS-7 
through GS-11, and GS-12 professional positions.
    At the undergraduate level, candidates may be appointed to 
positions at a pay level no greater than the equivalent of GS-7, step 
10, provided they meet the minimum standards for the position as 
published in OPM's Operating Manual, ``Qualification Standards for 
General Schedule Positions,'' plus any selective factors stated in the 
vacancy announcement; the occupation has a positive education 
requirement; and the candidate has a cumulative grade point average of 
3.5 or better (on a 4.0 scale) in those courses, in those fields of 
study, that are specified in the qualifications standards for the 
occupational series.
    Appointments may also be made at the equivalent of GS-9 through GS-
12 on the basis of graduate education and/or experience for those 
candidates with a grade point average of 3.5 or better (on a 4.0 scale) 
for graduate level courses in the field of study required for the 
occupation.
    Veterans' preference procedures will apply when selecting 
candidates under this authority. Preference eligibles who meet the 
above criteria will be considered ahead of non-preference eligibles. In 
making selections, to pass over any preference eligible(s) to select a 
non-preference eligible requires approval under current pass-over or 
objection procedures. Priority must also be given to displaced 
employees as may be specified in OPM and DoD regulations.

[[Page 57789]]

    Distinguished scholastic achievement appointments will enable TACOM 
to respond quickly to hiring needs with eminently qualified candidates 
possessing distinguished scholastic achievements.
(c) Revisions to Term Appointments
    When the need for an employee's services is not permanent, 
contingent employee appointments (CEAs) may be made under the 
demonstration project for a period of more than 1 year and up to 5 
years. The TACOM Commander, or designee, is authorized to extend a CEA 
1 additional year. These employees are entitled to the same rights and 
benefits as term employees and will serve a probationary period of the 
length prescribed for the pay band level into which hired. Appointments 
will be made under the same appointment authorities and processes as 
regular term appointments, but vacancy announcements must indicate that 
there is a potential for conversion to permanent employment.
    Employees hired under the CEA authority may be eligible for 
conversion to career-conditional appointments. To be converted, the 
employee must (1) have been selected for the CEA position under 
competitive procedures, with the announcement specifically stating that 
the individual(s) selected for the CEA position(s) may be eligible for 
conversion to career-conditional appointment at a later date; (2) 
served two years of continuous service in the CEA position; (3) be 
selected under merit promotion procedures for the permanent position; 
and (4) have a current performance rating above the minimum value of 
the point range for the broadband level to which the employee is 
assigned.
    Employees serving under regular term appointments at the time of 
conversion to the demonstration project will be converted to the new 
contingent employee appointments, provided they were hired for their 
current positions under competitive procedures. These employees will be 
eligible for conversion to career-conditional appointment if they have 
a current rating of satisfactory or better and are selected under merit 
promotion procedures for the permanent position after having completed 
2 years of continuous service. Time served in term positions prior to 
conversion to the contingent employee appointment is creditable for 
this service requirement, provided the service was continuous.
2. Extended Probationary Period
    For new employees appointed to non-supervisory/non-managerial 
positions in the Professional and Business Management broadband 
occupational family, the current 1-year probationary period will be 
extended to 3 years. (However, employees appointed prior to the 
implementation date of this demonstration project will not be affected 
by this change.) 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 (such as research, 
program development and execution, and/or technology transfer) and to 
fully evaluate an employee's accomplishments and conduct. In 
particular, supervisors of employees serving on rotating internships 
will now have sufficient time to directly supervise and evaluate the 
employee's work. New employees appointed in the Technical and General 
Support broadband occupational families will continue to serve a 1-year 
probationary period. The required 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 required probationary 
period, a supervisor has the option of ending the probationary period 
at an earlier date, but not before the employee has completed 1 year of 
continuous service. The supervisor will develop a written rationale for 
exercising this option and elevate it, at a minimum, to the next higher 
level of management for review before implementing the option. Specific 
guidance with respect to the review process will be outlined in 
demonstration project operating procedures.
    All other existing provisions pertaining to probationary periods 
are retained, including limited notice and appeal rights and crediting 
prior service. Prior Federal civilian service (including 
nonappropriated fund service; service in temporary or term positions; 
and service under a contingent employee appointment, with no break in 
service, before a permanent appointment made under this demonstration 
project) counts toward completion of probation when the service is in 
the Department of the Army, is in the same line of work, and contains 
or is followed by no more than a single break in service that does not 
exceed 30 calendar days.
3. Supervisory Probationary Periods
    New supervisors, that is, those who have not previously completed a 
supervisory probationary period, will be required to complete a one-
year probationary period for the initial appointment to a supervisory 
position. An additional supervisory probationary period of 1 year will 
be required when an employee is officially assigned to a different 
supervisory position that constitutes a major change in supervisory 
responsibilities from the supervisory position where the previous 
probationary period was previously completed. During the probationary 
period, the decision can be made to return the employee to a non-
supervisory position, but only for reasons related to supervisory 
performance or conduct.
4. Voluntary Emeritus Program (VEP)
    Under the demonstration project, retired or separated individuals 
may be offered voluntary positions under the voluntary emeritus program 
(VEP). Such 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 buy-outs or 
severance payments based on an earlier separation from Federal service. 
The voluntary emeritus program will ensure continued quality work 
performance while reducing the overall salary line by typically 
allowing higher paid individuals to accept retirement incentives with 
the opportunity to retain a presence in the TACOM community. The 
program will be of most benefit during manpower reductions, as 
employees could accept retirement and return to provide valuable on-
the-job training or mentoring to less-experienced employees.
    To be accepted into the emeritus program, a volunteer must be 
recommended by a management official and approved by the TACOM 
Commander, or designee. Not everyone who applies is entitled to an 
emeritus position. Management must clearly document the decision 
process for each applicant (whether accepted or rejected) and retain 
the documentation throughout the assignment. Documentation of 
rejections will be maintained for 2 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 program volunteers will not be permitted to 
monitor contracts on behalf of the Government. The volunteers may be 
required to submit a financial disclosure form annually and will not be 
permitted to participate on any contracts where a

[[Page 57790]]

conflict of interest may exist. The same rules that currently apply to 
source selection members will apply to volunteers.
    A written agreement must be finalized with the volunteer before the 
assumption of duties commences and shall include:
    (a) A statement that the voluntary assignment does not constitute 
an appointment in the civil service and is without compensation, and 
any and all claims against the Government because of the voluntary 
assignment are waived by the volunteer;
    (b) A statement that the volunteer will be considered a Federal 
employee for the purpose of injury compensation;
    (c) The volunteer's work schedule;
    (d) The length of agreement (defined by length of project or time 
defined by weeks, months, or years);
    (e) Any support provided by TACOM (travel, administrative, office 
space, and supplies);
    (f) A one-page statement of duties and experience;
    (g) A statement providing that no additional time will be added to 
volunteer's service credit for such purposes as retirement, severance 
pay, and leave as a result of participating in the voluntary emeritus 
program;
    (h) A provision allowing either party to void the agreement with 10 
working days written notice; and
    (i) The level of security access required (any security clearance 
required by the position will be managed by TACOM while the volunteer 
is participating in the emeritus program).

E. Internal Placement and Pay Setting

    Rules for specific types of assignments under the demonstration 
project follow.
1. Changes in Assignment
(a) Promotions
    A promotion is the movement of an employee to a higher pay band 
level in the same occupational family or to a pay band level in a 
different occupational family that results in an increase in the 
employee's salary. (Pay progression within a pay band level will be 
accomplished under TAPPS; it is not a promotion and thus is not subject 
to the provisions of this section.). Except as specified at E.1.(b), 
promotions will be processed under competitive procedures in accordance 
with merit principles and requirements of the local merit promotion 
plan.
(b) Exceptions from Competitive Procedures
    The following actions are excepted from competitive procedures:
    (1) Re-promotion to a position that is in the same pay band 
andoccupational family as the employee previously held on a permanent 
basis within the competitive service;
    (2) 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;
    (3) A position change permitted by reduction-in-force procedures;
    (4) Promotion without current competition when the employee was 
appointed through competitive procedures to a position with a 
documented career ladder;
    (5) A temporary promotion or detail of 180 days or less to a 
position in a higher pay band
    (6) Reclassification to include impact-of-person-in-the-job 
promotions;
    (7) A promotion resulting from the correction of an initial 
classification error or the issuance of a new classification standard; 
and
    (8) Consideration of a candidate not given proper consideration in 
a competitive promotion action.
(c) Details
    Under this demonstration, employees may be detailed to a position 
in the same pay band level (requiring a different level of expertise 
and qualifications) or lower pay band level (or its equivalent in a 
different occupational family) for up to 1 year. Details may be 
implemented by submitting one personnel action (PERSACTION) to cover 
the 1-year period. Details to duties in a higher pay band level for 
more than 180 days will be implemented using competitive procedures.
2. Pay Fixing Policy and Pay Setting
    The TACOM Commander will establish pay administration policies. 
TACOM policies for employees within the demonstration project will 
conform to basic Government pay fixing policy and the provisions of 
this demonstration project plan; however, the TACOM policies will be 
exempt from Army regulations or local pay fixing policies, except where 
negotiated agreements prevail. Firefighter pay is covered under 5 
U.S.C. 5545b and 5 CFR part 550, subpart M.
(a) Policy
    Highest previous rate (HPR) will be considered in placement actions 
for which 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. 
The pay retention provisions of 5 U.S.C. 5363 and 5 CFR 536.101 will 
apply to this plan except where waived or modified as specified in the 
waiver section. Pay retention may also be granted by the TACOM 
Commander to employees who meet general eligibility requirements but do 
not have specific entitlement by law, provided not specifically 
excluded.
    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.
    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 TACOM. In no case may those adjustments increase the pay 
for the position of record beyond the applicable pay range's maximum 
rate.
(b) Pay Setting
    (1) Promotion. Upon promotion to a higher pay band level, an 
employee will be entitled to a 6 percent increase in base pay or the 
lowest level in the pay band level to which promoted, whichever is 
greater. 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 
employees covered by a staffing supplement, the demonstration staffing 
adjusted pay is considered basic pay for promotion calculations. 
Highest previous rate may also be considered in setting pay upon 
promotion, under rules similar to the highest previous rate rules in 5 
CFR 531.203(c) and (d).
    (2) Competitive Selection for a Position with Higher Potential 
Salary. When an employee is competitively selected for a position with 
a higher target career level than previously held (e.g., Upward 
Mobility), upon movement to the new position, the employee will receive 
the salary corresponding to the minimum of the new broadband level or 
the existing salary, whichever is greater.
    (3) Voluntary Change to Lower Pay Band Level/Change in Career Path

[[Page 57791]]

(except RIF). When an employee accepts a voluntary change to lower pay 
band level or different career path, salary may be set at any point 
within the new pay band level, except that the new salary will not 
exceed the employee's current salary or the maximum salary of the pay 
band level to which assigned, whichever is lower.
    (4) Involuntary Reduction in Pay, Change to Lower Pay Band Level, 
and/or Change in Career Path Due to Adverse or Performance-based 
Action. When an employee is changed to a lower pay band level, moves to 
a new position in a different career path, or receives a reduction in 
pay within his/her existing pay band level and career path due to 
adverse or performance-based action, then the employee's salary will be 
reduced by at least 6 percent, but will be set no lower than the 
minimum salary of the pay band level to which assigned. Employees 
placed into a lower pay band level due to adverse or performance-based 
action are not entitled to pay retention.
    (5) Involuntary Change to Lower Pay Band Level or Change in Career 
Path, Other than Adverse or Performance-based Action. If such an 
involuntary change is not a result of an adverse or performance-based 
action, the salary will be maintained to the extent possible within the 
salary range of the new pay band and/or career path. If position 
reclassification resulting in the employee's being assigned to a lower 
pay band level or different career path, the employee is entitled to 
pay band level and pay retention in accordance with the provisions of 5 
U.S.C. 5361-5366 and 5 CFR part 536 (as waived or modified by this 
demonstration project).
    (6) Reduction-in-Force (RIF) Action (including employees who are 
offered and accept a vacancy at a lower pay band level or in a 
different broadband occupational family). The employee is entitled to 
pay band level and pay retention in accordance with the provisions of 5 
U.S.C. 5361-5366 and 5 CFR part 536 (as waived or modified by this 
demonstration project).
    (7) Return to Limited or Light Duty from a Disability as a Result 
of Occupational Injury to a Position in a Lower Pay Band Level or to a 
Career Path with Lower Salary Potential than Held Prior to the Injury. 
The employee is entitled to wage loss compensation from the Department 
of Labor, Office of Workers Compensation Programs, based upon the 
difference between the pay band level held on the date of injury and 
the pay band level of the limited duty position.
(c) Staffing Supplement
    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 base pay, much like 
locality rates are added to base pay. For employees being converted 
into the demonstration, 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 
described in this section.
    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] TN16NO01.002

    Example: Assume there is a GS-801-11, step 03, employee assigned to 
Picatinny Arsenal, 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-801-11, step 10 is $65,381, 
and the corresponding GS unadjusted rate is $52,305. The maximum GS-11 
locality rate in New Jersey 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 - 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.
    Calculation of the staffing supplement discussed above was 
presented in the context of a General Schedule employee entering the 
demonstration project. Application of the staffing supplement is 
normally intended to maintain pay comparability for General Schedule

[[Page 57792]]

employees entering the demonstration project. Application of the 
staffing supplement is normally intended to maintain pay comparability 
for General Schedule employees entering the demonstration. However, the 
staffing supplement formulas must be compatible with non-Government 
employees entering the demonstration and adaptable to the special 
circumstances of employees already in the demonstration.
    The following principles will govern the modifications necessary to 
the previous staffing supplement calculations to apply the staffing 
supplement to circumstances other than a General Schedule 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-II originally covered by 
table 0422 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 = 1.25/1.1281 = 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 the General Schedule 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.
3. Supervisory and Team Leader Pay Differentials
    Supervisory and team leader pay differentials may be used, at the 
discretion of the TACOM Commander or designee, to incentivize and 
reward supervisors and team leaders, with the exception of those in the 
Professional and Business Management broadband occupational family's 
``above GS-15'' pay band level V for engineers and scientists. 
Employees in supervisory positions with formal supervisory authority 
meeting that required for coverage under the OPM GS Supervisory Guide 
may be considered for a supervisory pay differential. Employees in team 
leader positions with leader authority meeting that required for 
coverage under the OPM GS Leader Grade-Evaluation Guide may be 
considered for a team leader pay differential.
    A supervisory pay differential is a cash incentive that may range 
up to 10 percent of the supervisor's basic rate of pay. A team leader 
pay differential is a cash incentive that may range up to 5 percent of 
the team leader's basic rate of pay. Differentials may be paid as a 
one-time lump sum amount, or on a pay period basis for a specified 
period of 1 year or less. Differentials are not included as part of the 
recipient's basic rate of pay.
    Criteria to be considered in determining the differential 
percentage include the following organizational and individual employee 
factors and are further defined in the demonstration project operating 
procedures: (a) Needs of the organization to attract, retain, and 
motivate high quality supervisors and team leaders; (b) budgetary 
constraints; (c) years of supervisory or team leader experience; (d) 
amount of supervisory or leadership training received; (e) performance 
appraisals and experience as a group or team leader; (f) organizational 
level of supervision; and (g) managerial impact on the organization.
    The differential may be considered, either during conversion into 
or after initiation of the demonstration project, if the supervisor or 
team leader has subordinate employees in the same pay band level. The 
differential must be terminated if the employee is removed from a 
supervisory or team leader position, regardless of cause, or no longer 
meets established eligibility criteria. Supervisory and team leader pay 
differentials will not be funded from performance pay pools.
    After initiation of the demonstration project, all personnel 
actions involving a supervisory or team leader pay differential will 
require a statement signed by the employee acknowledging that the 
differential may be terminated or reduced at the discretion of the 
TACOM Commander or designee. The termination or reduction of the

[[Page 57793]]

differential is not an adverse action and is not subject to appeal.
4. Performance-Based Reduction-in-Pay or Removal Actions
    This section applies to reduction in pay or removal of 
demonstration project employees based solely on unacceptable 
performance. Unacceptable performance at any time during the appraisal 
period is considered grounds for initiation of reduction in pay or 
removal action. The following procedures replace those established in 5 
U.S.C. 4303 pertaining to reductions in grade or removal for 
unacceptable performance, except with respect to appeals of such 
actions. 5 U.S.C. 4303(e) provides the statutory authority for appeals 
of performance-based actions. As is currently the situation for 
performance-based actions taken under 5 U.S.C. 4303, performance-based 
actions under the demonstration project shall be sustained if the 
decision is supported by substantial evidence, and the Merit Systems 
Protection Board shall not have mitigation authority with respect to 
such actions. The separate statutory authority to take performance-
based actions under 5 U.S.C. 75, as modified in the waiver section of 
this notice (section IX), remains unchanged by these procedures.
    Unacceptable performance is performance that meets either of the 
following definitions.
    (a) Unacceptable performance is performance that results in a 
salary variance greater than +16% with an OPRS that is below the lowest 
value of the point range for the broadband level to which the employee 
is assigned. In this case, the supervisor must inform the employee in 
writing that, unless performance increases to a level that results in a 
salary variance less than or equal to +16% (thereby meeting the 
definition of acceptable performance) and is sustained at that level, 
the employee may be reduced in pay or removed. This written 
notification will include a performance improvement plan (PIP) that 
outlines specific areas in which the employee is performing 
unacceptably. Additionally, the PIP must include standards for 
acceptable performance, corrective actions required of the employee, 
and the time in which they must be accomplished to increase and sustain 
the employee's performance at an acceptable level. The PIP must specify 
improvements in any factor level rating(s) required to meet the maximum 
acceptable salary variance (+16%).
    (b) Alternatively, unacceptable performance is performance that 
results in a salary variance greater than +16% with an OPRS at or above 
the lowest value of the point range for the broadband level to which 
the employee is assigned. In this case, management may either: (1) 
Provide written notification and place the employee on a PIP, or (2) 
take no action, but document this decision in a memorandum for the 
record, a copy of which must be furnished to the employee and to higher 
levels of management.
    When the rating official informs the employee that the employee may 
be reduced in pay or removed, the rating official will afford the 
employee a reasonable opportunity (a minimum of 60 days) to demonstrate 
acceptable performance. As part of the employee's opportunity to 
demonstrate acceptable performance, he or she will be placed on a PIP. 
The PIP will state how the employee's performance is unacceptable and 
include what improvements are required, recommendations on how to 
achieve acceptable performance, assistance that the agency shall offer 
to the employee in improving unacceptable performance, and consequences 
of failure to improve.
    Once an employee has been afforded a reasonable opportunity to 
demonstrate acceptable performance but fails to do so, a reduction in 
pay (which could result in a change to a lower pay band level and/or 
reassignment) or removal action may be proposed. If the employee's 
performance increases to an acceptable level and is again determined to 
have deteriorated to an unacceptable level within 2 years from the 
beginning of the opportunity period, actions may be initiated to effect 
reduction in pay or removal with no additional opportunity to improve. 
If an employee has performed acceptably for 2 years from the beginning 
of an opportunity period and the employee's overall performance once 
again declines, the employee will be afforded an additional opportunity 
to demonstrate acceptable performance before it is determined whether 
or not to propose a reduction in pay or removal.
    An employee whose reduction in pay or removal is proposed is 
entitled to a 30-day advance notice of the proposed action that 
identifies specific instances of unacceptable performance by the 
employee on which the action is based. The employee will be afforded a 
reasonable time to answer the notice of proposed action orally and/or 
in writing.
    A decision to reduce in pay or remove an employee for unacceptable 
performance may be based only on those instances of unacceptable 
performance that occurred during the 2-year period ending on the date 
of issuance of the proposed action. The employee will be issued written 
notice at or before the time the action will be effective. Such notice 
will specify the instances of unacceptable performance by the employee 
on which the action is based and will inform the employee of any 
applicable appeal or grievance rights.
    All relevant documentation concerning a reduction in pay or removal 
that is based on unacceptable performance will be preserved and made 
available for review by the affected employee or designated 
representative. At a minimum, the records will consist of a copy of the 
notice of proposed action; the written answer of the employee or a 
summary thereof when the employee makes an oral reply; and the written 
notice of decision and the reasons for the decision, along with any 
supporting material including documentation regarding the opportunity 
afforded the employee to demonstrate acceptable performance.

F. Employee Development

1. Expanded Developmental Opportunities
    TACOM's evolving, multi-faceted mission requires a new learning 
paradigm that will engage its workforce in acquiring multiple 
knowledge, skills and abilities that prepare every employee to meet the 
future head on. An expanded developmental opportunity program will 
significantly assist in creating a multi-knowledgeable, multi-skilled, 
and multi-functional workforce.
    The TACOM expanded developmental opportunity program will cover all 
demonstration project employees. The time that an employee is on an 
expanded developmental opportunity will not result in loss of (or 
reduction in) basic pay, leave to which the employee is otherwise 
entitled, or credit for time of service. The positions of employees on 
expanded developmental opportunities may be backfilled with detailed, 
temporarily promoted, or temporary/CEA employees. However, that 
position or its equivalent must be made available to the employee 
returning from the expanded developmental opportunity.
(a) Sabbaticals
    TACOM will have authority to grant paid sabbaticals to career 
employees to permit them to engage in study or uncompensated work 
experiences that will benefit the organization and contribute to their 
development and effectiveness. Various learning or

[[Page 57794]]

developmental work experiences may be considered, such as advanced 
academic teaching; study; research; self-directed or guided study; and 
on-the-job work experience with a public, private commercial, or 
private non-profit organization. Employees will be eligible for a 
sabbatical after completion of 7 years of Federal service.
    A sabbatical may last 3-12 months, and each sabbatical must result 
in a product, service, report, or study that will benefit the TACOM 
mission as well as increase the employee's individual effectiveness. An 
employee accepting a paid sabbatical must sign a service obligation 
agreement to continue in service in TACOM for a period of three times 
the length of the sabbatical. If the employee voluntarily leaves TACOM 
employment before the service obligation is completed, the employee is 
liable for repayment of expenses associated with training during the 
sabbatical, such as registration fees, purchase or rental of books, 
materials, supplies, travel, per diem, and miscellaneous other related 
costs related to the sabbatical. (Expenses do not include the cost of 
the employee's salary.) The TACOM Commander or designee has the 
authority to waive the service obligation agreement.
    The demonstration project operating procedures will contain 
specific procedures for processing sabbaticals.
(b) Critical Skills Training
    Training is an essential component of an organization that requires 
continuous acquisition of advanced and specialized knowledge. Degree 
training in the academic environment of TACOM 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 TACOM from both conditions--linkage to 
professional development programs or to a shortage occupation.TACOM is 
expanding the authority of management to administer and pay for degree 
and certificate training programs (e.g., a graduate certificate in 
logistics) for employees in all occupational families in order to meet 
critical skill requirements, to ensure continuous acquisition of 
advanced specialized knowledge essential to the organization, and to 
retain personnel critical to 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. Employees approved for degree 
training must sign a service obligation agreement to continue in 
service in TACOM for a period of three times the length of the training 
period. If an employee voluntarily leaves TACOM before the service 
obligation is completed, the employee is liable for repayment of 
expenses associated with the training, such as tuition and 
matriculation fees; registration fees; library and laboratory fees; 
purchase or rental of books, materials, and supplies; travel and per 
diem; and miscellaneous other costs related to the training program. 
The TACOM Commander has the authority to waive the service obligation 
agreement.
    Demonstration project operating procedures will include guidelines 
to ensure competitive approval of payment for degree and certificate 
training, as well as documentation of decisions to do so.

2. Appraisals for Employees on Expanded Developmental Opportunities

    Expanded developmental opportunities generally fall into two 
categories: classroom and developmental (on-the-job training). 
Developmental assignments should be treated as any other temporary 
assignment that continues for 120 days or more. A performance plan is 
established, and the incumbent receives a performance rating upon 
completion. Assignments that involve classroom work are covered by one 
of two options. The first is to render a rating as soon as the employee 
returns to the position and completes 120 days under a performance 
plan. The second is to render a rating for the classroom performance. 
Procedures for this option will follow those currently in place for the 
Department of Army's Long-Term Training (LTT) Program.
3. Learning Development Share
    Employees can earn a learning development share (LDS), which is a 
lump sum payment for successfully completing professional, personal, or 
future educational requirements of the organization. The LDS provides a 
cash incentive for continuing to develop one's intellectual 
opportunities, and it also supports TACOM's goal of developing a multi-
knowledge, multi-skilled and multi-functional workforce.
    Demonstration project operating procedures will prescribe 
eligibility criteria (e.g., completion of a specified number of 
continuing education units) and formulas for calculating the amount of 
an LDS. The LDS will be paid out of Command-designated funds set aside 
for employee training and development.

G. Reduction in Force (RIF)

    When reduction in force (RIF) becomes necessary, the procedures in 
5 CFR part 351 will be followed with the modifications specified below.
1. Competitive Areas
    A separate competitive area will be established by geographic 
location for all personnel included in this demonstration project. 
Because of their mobility requirements, Logistics Assistance 
Representatives (LARS) will constitute a separate competitive area 
worldwide, without regard to their geographic locations.
2. Competitive Levels
    Within each competitive area, competitive levels will be 
established consisting of all positions in the same broadband 
occupational family and pay band level which are similar enough in 
duties, qualifications, and working conditions that the incumbent of 
one position can perform successfully the duties of any other position 
in the competitive level without undue interruption.
3. Retention Standing
    Retention standing is determined utilizing the retention factors of 
tenure, veterans' preference, and length of service, only, and in that 
order. There will be no augmented service credit based on performance 
ratings.
4. Rounds of Competition
    The proposed system will retain two rounds of competition. An 
employee released from his/her competitive level will compete in a 
second round of competition. Bumping and retreating to another position 
will be limited to the same or next lower pay band level in any 
occupational family. However, a preference eligible employee with a 
compensable service disability of 30 percent or more may retreat to a 
position equivalent to five GS grades below the minimum grade level 
encompassed by the employee's current pay band level (i.e., up to two 
pay band levels below the employee's current pay band level except for 
engineers and scientists in the Business and Management Professional 
pay band

[[Page 57795]]

level V, who may retreat up to three pay band levels below their 
current pay band level).
5. Unacceptable Performance
    An employee with a current rating of record of unacceptable has no 
assignment rights and does not compete in RIF if released from his/her 
competitive level.
    An employee who has received an acceptable rating following a PIP 
will have that rating considered as the current rating of record, 
provided that notification of the acceptable rating is approved and 
received prior to the cutoff for receipt of personnel actions 
associated with implementation of the RIF.
    Employees who have received a written decision to demote them to a 
lower pay band compete in RIF from the position to which they have been 
or will be demoted.
    An employee who has been given a written decision of removal will 
be placed on a list separate from the competitive level retention 
register and will not compete in RIF.
6. Pay Band Level and Pay Retention
    Except where waived or modified in the waiver section of this plan, 
pay band level and pay retention will follow current law and 
regulations (e.g., pay band level will substitute for grade).

IV. Implementation Training

A. Policy

    A key element in the success of the proposed demonstration project 
will be the training provided for all involved. This training will not 
only provide the necessary knowledge and skills to carry out the 
proposed changes, but also foster participants' commitment to the 
program.
    Training before the beginning of implementation and throughout the 
demonstration will be provided to supervisors, employees, and others 
administering the demonstration project.
    The elements to be covered in the orientation portion of this 
training will include: (1) A description of the personnel system; (2) 
how employees are converted into and out of the system; (3) 
familiarization with simplified classification, new position 
descriptions, and standardized rating criteria; (4) the appraisal and 
performance payout process; and (5) the demonstration project's 
administrative and formal evaluation process.

B. Supervisors

    The focus of this project on management-centered personnel 
administration, with increased supervisory and managerial authority and 
accountability for personnel management, demands thorough training of 
supervisors and managers in the knowledge and skills required for their 
new responsibilities. Training will include detailed information on the 
policies and procedures of the demonstration project, as well as skills 
training in using the classification system, preparing position 
descriptions, and evaluating performance.

C. Others Administering the Demonstration Project

    The administrative staff, general personnel specialists, 
technicians, and administrative officers will play a key role in 
advising, training, and coaching supervisors and employees in 
implementing the demonstration project. This staff will receive 
training in the procedural and technical aspects of the project.

D. Employees

    In the months prior to implementation, the demonstration project 
team and career development offices will provide all employees covered 
under the demonstration project training through various media. This 
training is intended to fully inform all affected TACOM associates of 
all significant project decisions, procedures, and processes.

V. Conversion

A. Conversion to the Demonstration Project

    For those employees covered by the demonstration project, initial 
conversion into the project will be accomplished through a full 
employee protection approach that ensures assignment to a position in 
the appropriate broadband occupational family and pay band level 
without a loss of pay. Each employee's initial total salary under the 
demonstration project will equal the total salary received immediately 
prior to the implementation date of the project, plus the pro-rated 
amount of a within-grade increase (WGI) to which he/she is entitled, as 
described in V.A.4.
    General Schedule employees who enter the demonstration project 
after initial implementation enter at their current pay with no loss or 
gain due to the WGI equity adjustment. If conversion into the 
demonstration project is accompanied by a simultaneous geographic move, 
the employee's GS pay entitlements (including locality pay or special 
rate) in the new area must be determined before converting the pay to 
the demonstration project system.
    Adverse action and pay retention provisions will not apply to the 
conversion process, as there will be no change in total salary. Prior 
to conversion, if the employee's rate of basic pay exceeds the maximum 
rate of basic pay for the pay band level corresponding to the 
employee's GS grade, as with retained pay or special salary rates, the 
employee will remain at that pay band level and will receive a retained 
rate.
1. Employees on Temporary Promotions
    Employees who are on temporary promotions at the time of conversion 
will be converted to a pay band level commensurate with the grade of 
the position to which temporarily promoted. At the conclusion of the 
temporary promotion, the employee will revert to the pay band level 
that corresponds to the grade of the position held under the GS system 
prior to the temporary promotion. Pay entitlements will be determined 
based on the employee's position of record under the GS system 
immediately prior to conversion into the project, with appropriate 
adjustments to reflect pay events during the temporary promotion, 
subject to the specific policies and rules established by local pay-
setting procedures. In no case may those adjustments increase the pay 
for the position of record beyond the applicable pay range's maximum 
rate. The only exception would 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 program procedures.
2. Employees on Term Appointments
    Employees serving under regular term appointments at the time of 
the implementation of the demonstration project will be converted to 
contingent employee appointments (CEA). Conditions for CEA employees 
are addressed in III.D., Hiring and Appointment Authorities.
3. Employees Covered by Special Salary Rates
    Employees who are covered by special salary rates, upon being 
covered by the demonstration project, will no longer be considered 
special rate employees under the demonstration project. These employees 
will, therefore, be entitled to full locality pay or a staffing 
supplement. The adjusted

[[Page 57796]]

salaries of these employees will not change. Rather, the employees will 
receive a new basic pay rate computed under the staffing supplement 
rules in III.E.2.(c), Staffing Supplement, if applicable. Adverse 
action and pay retention provisions will not apply to the conversion 
process, as there will be no change in total salary.
4. Pro-Rated Credit for Completion of Within-Grade Increase (WGI) 
Waiting Period
    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, based upon the portion of the waiting period 
they have completed up until the effective date of implementation of 
the demonstration project. As under the current system, supervisors 
will be able to withhold these partial step increases if the employee's 
performance is below an acceptable level of performance. Rules 
governing within-grade increases under the current Army performance 
plan will continue in effect until the demonstration project 
implementation date. Adjustments to the employee's base salary for WGI 
equity will be computed effective the date of implementation of the 
demonstration project to coincide with the beginning of the first 
formal TACOM Appraisal and Performance Payout System (TAPPS) rating 
cycle. WGI equity will be acknowledged by increasing base salaries by a 
pro-rated amount based upon the actual number of weeks an employee has 
completed toward the next higher step. At the time of conversion, 
payment will equal the current value of the employee's next WGI times 
the proportion of the waiting period completed (weeks completed in the 
waiting period/weeks in the waiting period). Employees at step 10 or 
receiving retained rates on the date of implementation will not be 
eligible for WGI equity adjustments, since they are already at or above 
the top of the step scale.

B. Conversion Out of the Demonstration Project

    If a demonstration project employee is moving to a General Schedule 
(GS) position not under the demonstration project, or if the project 
ends, each project employee must be converted back to the GS system. 
The procedures below will be used to convert the employee's pay band 
level position to a GS-equivalent grade and the employee's 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 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. The rules for determining the converted GS grade for pay 
administration purposes do not apply to the determination of an 
employee's GS equivalent grade for other purposes, such as reduction-
in-force or adverse action determinations.
1. Grade-Setting Provisions
    An employee is converted to one of the grades in the current pay 
band level according to the ``step 4 rule,'' as follows:
    (a) The employee's adjusted rate of basic pay under the 
demonstration project (including any locality payment or staffing 
supplement) is compared with the step 4 rate 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 demonstration 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. Pay will be set at the step 
that equals the current salary. If no step equals current salary, pay 
is set at the next higher step.
    (c) If the employee's adjusted demonstration 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 level. 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 
demonstration 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 demonstration project 
rate exceeds the maximum rate of the grade assigned under the ``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 demonstration 
project, unless since that time the employee has undergone a reduction 
in pay band level or reduction in pay based upon adverse action.
2. Pay-Setting Provisions
    An employee's pay within the converted GS grade is set by 
converting the employee's demonstration project rate of pay to a GS 
rate 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 pay or staffing supplement) is converted to a 
GS adjusted rate on the highest applicable rate range for the converted 
GS grade. (For this purpose, a GS rate range includes a rate range in: 
(1) The GS base schedule; (2) an applicable locality rate schedule; or 
(3) an applicable special rate schedule.
    (c) If the highest applicable GS rate range is a locality pay rate 
range, the employee's adjusted demonstration 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

[[Page 57797]]

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 demonstration 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).
3. Employees With Band or Pay Retention
    (a) If an employee is retaining a pay band level under the 
demonstration project, apply the procedures in the grade-setting and 
pay-setting provisions above, using the grades encompassed in the 
employee's retained pay band to determine the employee's GS-equivalent 
retained grade and pay rate. The time in a retained pay band under the 
demonstration project counts toward the 2-year limit on grade retention 
in 5 U.S.C. 5362.
    (b) If an employee is retaining a rate under the demonstration 
project, the employee's GS-equivalent grade is the highest grade 
encompassed in his or her band level. Convert the employee's retained 
rate as follows:
    (1) If the employee's adjusted retained rate is less than the 
maximum rate of the highest applicable rate range, then apply the 
procedures in V.B.2. to determine the employee's GS-equivalent pay 
rate.
    (2) If the employee's adjusted retained rate exceeds the maximum 
rate of the highest applicable rate range and the employee is not in a 
special rate category, then convert the employee's unadjusted retained 
rate to a GS-equivalent retained rate.
    (3) If the employee's adjusted retained rate exceeds the maximum 
rate of the highest applicable rate range and the employee is in a 
special rate category, then convert the employee's adjusted retained 
rate to a GS-equivalent retained rate.
4. 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. 
TAPPS performance pay increases (including a zero increase) under the 
demonstration project are considered equivalent increases for the 
purpose of determining the commencement of a within-grade increase 
waiting period under 5 CFR 531.405(b).
5. Engineer and Scientist (E&S) Pay Band Level V Employees
    An employee in pay band level V of the Engineer and Scientist 
broadband occupational family will convert out of the demonstration 
project at the GS-15 level. TACOM will develop a procedure to ensure 
that employees entering pay band level V understand that if they leave 
the demonstration project and their adjusted pay exceeds the GS-15, 
step 10 rate, there is no entitlement to retained pay. Their GS-
equivalent rate will be deemed to be the rate for GS-15, step 10. For 
those pay band level V employees paid below the adjusted GS-15, step 10 
rate, the converted rates will be set in accordance with V.B.2.
6. Years of Retention Service Credit and Appraisal Rating Provisions
    Employees leaving the demonstration project will be assigned 
ratings of record that conform with summary pattern H of 5 CFR 
430.208(d) with level 3 being the highest for those who pass (20 years 
of retention credit) and Level 1 being the lowest for those who fail (0 
years of retention credit). The levels are assigned consistent with the 
definitions of acceptable and unacceptable performance in III.C.2.

VI. Project Duration

    Public Law 103-337 removed any mandatory expiration date for this 
demonstration project. TACOM, DA and DoD will ensure this project is 
evaluated for the first five years after implementation in accordance 
with 5 U.S.C. 4703. Modifications to the original evaluation plan or 
any new evaluation will ensure the project is evaluated for its 
effectiveness, its impact on mission, and any potential adverse impact 
on any employee groups. Major changes and modifications to the 
interventions can be made through announcement in the Federal Register 
and would be made if formative evaluation data warranted. At the 5-year 
point, the demonstration will be reexamined for permanent 
implementation, modification and additional testing, or termination of 
the entire demonstration project.

VII. Evaluation Plan

A. Overview

    Chapter 47 of 5 U.S.C. requires that an evaluation be performed to 
measure the effectiveness of the proposed demonstration project and its 
impact on improving public management. A comprehensive evaluation plan 
for the entire laboratory 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 E shows an intervention model for the evaluation of the 
demonstration project. The model is designed 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 resources (HR) management (i.e., 
cost, quality, timeliness). The ultimate outcomes are determined 
through improved organizational performance, mission accomplishment, 
and customer satisfaction. Although it is not possible to establish a 
direct causal link between changes in the HR management system and 
organizational effectiveness, it is hypothesized that the new HR system 
will contribute to improved organizational effectiveness.
    Organizational performance measures established by the 
organization, will be used to evaluate the impact of a new HR system on 
the ultimate outcomes. The evaluation of the new HR system for any 
given organization will take into account the influence of three 
factors on organizational performance: context, degree of 
implementation, and support of implementation. The context factor 
refers to the impact which intervening variables (i.e., downsizing, 
changes in mission, or the economy) can have on the effectiveness of 
the program. The degree of implementation considers: (1) The extent to 
which the proposed HR changes are given a fair trial period; (2) the 
extent to which the proposed changes are implemented; and (3) the 
extent to which the proposed changes conform to the HR interventions as 
planned. The support of implementation factor accounts for the impact 
that factors such as training, internal regulations and automated 
support systems have on the support available for program 
implementation. The support for program implementation factor can also 
be affected by the personal characteristics (e.g. attitudes) of 
individuals who are implementing the program.

[[Page 57798]]

    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 E will be used to measure the 
effectiveness of the personnel system interventions implemented. The 
intervention model specifies each personnel system change or 
``intervention'' that will be measured and shows: (1) The expected 
effects of the intervention, (2) the corresponding measures, and (3) 
the data sources for obtaining the measures. Although the model makes 
predictions about the outcomes of specific intervention, causal 
attributions about the full impact of specific interventions will not 
always be possible for several reasons. For example, many of the 
initiatives are expected to interact with each other and contribute to 
the same outcomes. In addition, the impact of changes in the HR system 
may be mitigated by context variables (e.g. the job market, 
legislation, and internal support systems) or support factors (e.g. 
training, automation support systems).

C. Evaluation

    A modified quasi-experimental design will be used for the 
evaluation of the S&T Personnel Demonstration Program. Because most of 
the eligible laboratories are participating in the program, a Title 5 
U.S.C. comparison group will be compiled from the Civilian Personnel 
Data File (CPDF). This comparison group will consist of workforce data 
from Government-wide research organizations in civilian Federal 
agencies with missions and job series matching those in the DoD 
laboratories. This comparison group will be used primarily in the 
analysis of pay banding costs and turnover rates. The original ``China 
Lake'' project will serve as a second comparison group 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 
budget discipline. A baseline will be established at the start of the 
project, and salary expenditures will be tracked yearly. Implementation 
costs, including project development, automation costs, WGI equity 
adjustments, credit for career ladder promotions, and evaluation costs 
are considered one-time costs and will not be included in the cost 
discipline evaluations. To ensure corporate consistency, the 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 TACOM 
budget. The projected annual expenses are summarized in Figure 5. 
Project evaluation costs are not expected to continue beyond 5 years, 
unless the results warrant further evaluation.

                                    Figure 5.--Projected Developmental Costs
----------------------------------------------------------------------------------------------------------------
                                                                      FY 02    FY 03    FY 04    FY 05    FY 06
----------------------------------------------------------------------------------------------------------------
Training...........................................................      30K     100K      15K  .......  .......
Project Evaluation.................................................      75K      75K      75K      75K      75K
Automation.........................................................     375K     100K      35K      35K      35K
                                                                    --------------------------------------------
    Totals.........................................................     480K     275K     125K     110K     110K
----------------------------------------------------------------------------------------------------------------

IX. Required Waivers and Adaptations of Law and Regulation

    Public Law 106-398 gave DoD the authority to experiment with 
several personnel management innovations. In addition to the 
authorities granted by the law, the following are waivers and 
adaptations 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 provisions are 
required only to the extent that these statutory provisions limit or 
are

[[Page 57799]]

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 and Adaptations of Title 5, United States Code (U.S.C.)

    Chapter 5, Section 552a: Records Maintained on Individuals. This 
section is adapted only to the extent necessary to allow demonstration 
project volunteers under the voluntary emeritus program to be treated 
as ``Federal personnel'', as that term is defined in this section.
    Chapter 31, Section 3111: Acceptance of Volunteer Service. This 
section is adapted only to the extent necessary to allow acceptance of 
volunteer service under provisions of the demonstration project's 
voluntary emeritus program.
    Chapter 31, Section 3132: The Senior Executive Service; Definitions 
and Exclusions. This section is adapted only to the extent necessary to 
allow creation of pay band V of the Professional and Business 
Management broadband occupational family.
    Chapter 33, Section 3308: Competitive Service; Examinations; 
Educational Requirements Prohibited; Exceptions. This section is 
adapted only to the extent necessary to allow the requirement for a 
college degree under the distinguished scholastic achievement 
appointment authority of this demonstration project.
    Chapter 33, Section 3317(a): Competitive Service; Certification 
from Registers. This section is waived to eliminate the ``rule of 
three'' under the demonstration project.
    Chapter 33, Section 3318(a): Competitive Service; Selection from 
Certificates. This section is waived to eliminate the ``rule of three'' 
under the demonstration project. Chapter 33, Section 3324: Appointment 
to positions classified above GS-15. This section is waived to allow 
creation of pay band V of the Professional and Business Management 
broadband occupational family.
    Chapter 33, Section 3341: Details; Within Executive or Military 
Departments. This section is adapted only to the extent necessary to 
allow details to extend beyond 120 days.
    Chapter 35, Section 3502(a)(4): Order of Retention. This section is 
waived to eliminate augmented service credit for performance ratings.
    Chapter 41, Section 4107: Restriction on Degree Training. This 
section is adapted only to the extent necessary to allow payment for 
any degree training, even when not linked to a professional development 
program or to a shortage occupation.
    Chapter 43, Sections 4301(3): Definitions. This section is waived 
to allow a different definition of the term, ``unacceptable 
performance'' under this demonstration.
    Chapter 43, Section 4302: Establishment of Performance Appraisal 
Systems. This section is adapted only to the extent necessary to allow 
broadbanding and to accommodate performance-focused pay features of the 
TACOM Appraisal and Performance Payout System.
    Chapter 43, Sections 4303(a), (b), and (c): Actions Based on 
Unacceptable Performance. These sections are adapted only to the extent 
necessary to replace the term ``grade'' with ``pay band level'' and 
accommodate this demonstration project's procedures for taking actions 
based on unacceptable performance.
    Chapter 43, Sections 4304 (b) (1) and (3): Responsibilities of the 
Office of Personnel Management. These sections are waived to reflect 
changes in responsibilities authorized by section 1114 of the National 
Defense Authorization Act of 2001.
    Chapter 45, Sections 4502(a) and (b): General Provisions. These 
sections are adapted only to the extent necessary to allow awards up to 
$25,000 for individual employees to be approved under the demonstration 
project plan's procedures.
    Chapter 51, Sections 5101-5113: Classification. These sections are 
waived to permit classification of demonstration project positions to 
pay band levels on the basis of broadband range factors and allow 
deviation from OPM-prescribed position description formats.
    Chapter 53, Sections 5301; 5302 (1), (8), and (9); 5303; and 5304: 
Pay Comparability System. These sections are adapted only to the extent 
necessary to (1) allow employees in pay band V of the Professional and 
Business Management broadband occupational family to be treated as ST 
employees, (2) allow all other demonstration project employees to be 
treated as General Schedule employees, and (3) allow basic rates of pay 
under the demonstration project to be treated as scheduled rates of 
basic pay. However, these adaptations do not apply to ST employees, who 
will continue to be covered by these Title 5 statutory provisions, as 
appropriate.
    Chapter 53, Section 5305: Special Pay Authority. This section is 
waived only to the extent necessary to ensure that special salary rates 
are inapplicable to demonstration project employees after their 
conversion into the demonstration project and to allow future special 
salary rates only when specifically incorporated through the use of the 
staffing supplement provisions of the demonstration project plan.
    Chapter 53, Sections 5331-5336: General Schedule Pay Rates. These 
sections are waived to allow broadbanding and accommodate performance-
focused pay features of the TACOM Appraisal and Performance Payout 
System (TAPPS).
    Chapter 53, Sections 5361-5366: Grade and Pay Retention. These 
sections are adapted only to the extent necessary to: (1) Replace 
``grade'' with ``pay band level''; (2) allow demonstration project 
employees to be treated as General Schedule employees; (3) 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; (4) 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 (5) ensure 
that for employees of pay band level V of the Professional and Business 
Management broadband occupational family, pay band level retention is 
not applicable and 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). These adaptations do not apply with respect to coverage for ST 
employees, except when an ST employee moves to a GS-equivalent position 
within the demonstration project under conditions that trigger 
entitlement to pay retention.
    Chapter 55, Sections 5542(a)(1)-(2): Overtime Rates; Computation. 
These sections are adapted 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 
section is adapted only to the extent necessary to allow demonstration 
project employees to be treated as General Schedule employees. However, 
this adaptation does not apply to ST employees or employees in pay band 
V of the Professional and Business Management broadband occupational 
family, and they are excluded from coverage under 5 U.S.C. 5545(d).

[[Page 57800]]

    Chapter 55, Section 5547(a)-(b): Limitation on Premium Pay. These 
sections are adapted 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, Sections 5753, 5754, and 5755: Recruitment and 
Relocation Bonuses; Retention Allowances; and Supervisory 
Differentials. These sections are adapted only to the extent necessary 
to (1) allow employees in pay band V of the Professional and Business 
Management broadband occupational family to be treated as ST employees, 
(2) allow all other demonstration project employees to be treated as 
General Schedule employees, and (3) allow basic rates of pay under the 
demonstration project to be treated as scheduled rates of basic pay. 
However, these adaptations do not apply to ST employees, who will 
continue to be covered by these Title 5 statutory provisions, as 
appropriate.
    Chapter 59, Section 5941: Allowances Based on Living Costs and 
Conditions of Environment; Employees Stationed Outside Continental 
United States or in Alaska. This section is adapted 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 71: Labor-Management Relations. This chapter is waived only 
to the extent that its provisions (e.g., 5 U.S.C. 7103(a)(12) and 7116) 
would prohibit management or the union from unilaterally terminating 
negotiations over whether employees represented by the union will be 
converted into the demonstration project.
    Chapter 75, Section 7512(3): Adverse Actions. This section is 
adapted only to the extent necessary to replace ``grade'' with ``pay 
band level'' and to provide that reductions in pay band level not 
accompanied by a reduction in pay are not covered by chapter 75, 
subchapter II.
    Chapter 75, Section 7512(4): Adverse Actions. This section is 
adapted only to the extent necessary to ensure that adverse action 
provisions do not apply to conversions from General Schedule special 
rates to demonstration project pay, as long as total pay is not 
reduced.

B. Waivers and Adaptations of Title 5, Code of Federal Regulations 
(CFR)

    Sections 300.601-300.605: Time-in-Grade Restrictions. These 
sections are waived to eliminate time-in-grade restrictions under this 
demonstration project.
    Sections 308.101 through 308.103: Volunteer Service. These sections 
are adapted only to the extent necessary to allow retired and separated 
individuals to perform volunteer service under the provisions of the 
voluntary emeritus program.
    Sections 315.801 and 315.802: Probationary Period. These sections 
are adapted only to the extent necessary to allow extended probationary 
periods for certain employees, as specified in the project plan for 
this demonstration project.
    Section 315.901: Statutory Requirement. This section is adapted 
only to the extent necessary to replace ``grade'' with ``pay band 
level.''
    Section 315.904: Probationary Period. This section is adapted only 
to the extent necessary to allow imposition of an additional 1-year 
supervisory probationary period when an employee is officially assigned 
to a different supervisory position that constitutes a major change in 
supervisory responsibilities.
    Section 316.301: Term Employment; Purpose and Duration. This 
section is adapted only to the extent necessary to allow contingent 
employee appointments to cover a maximum period of 6 years.
    Section 316.303: Tenure of Term Employees. This section is adapted 
only to the extent necessary to allow employees on demonstration 
project contingent employee appointments to compete for permanent 
status through local merit promotion plans.
    Section 332.402: Regular Order of Certification for Appointment. 
This section is waived.
    Section 332.404: Order of Selection from Certificates. This section 
is adapted only to the extent necessary to eliminate the ``rule of 
three'' under this demonstration project.
    Section 335.103 (c) (i): Agency Promotion Programs. This section is 
adapted only to the extent necessary to allow temporary promotions of 
180 days or less to a position in a higher pay band level.
    Section 335.103 (c) (ii): Agency Promotion Programs. This section 
is adapted only to the extent necessary to allow details of 180 days or 
less to a position in a higher pay band level.
    Section 351.402(b): Competitive Area. This section is waived only 
to the extent necessary to allow Logistics Assistance Representatives 
to be placed into a separate competitive area worldwide, without regard 
to their geographic locations.
    Section 351.403: Competitive Level. This section is adapted only to 
the extent necessary to replace the term ``grade'' with ``pay band 
level.''
    Section 351.504: Credit for Performance. This section is waived 
only to the extent necessary to eliminate augmented service credit for 
performance ratings.
    Section 351.701: Assignment Involving Displacement. This section is 
adapted only to the extent necessary to limit the displacement of 
demonstration project employees to only one broadband level below the 
employee's present level in any occupational family, except that a 
preference-eligible employee with a compensable service-connected 
disability of 30 percent or more may retreat to a position which is 
equivalent to no more than five General Schedule grades below the 
minimum grade level encompassed by the employee's current pay band 
level.
    Section 410.308: Training to Obtain an Academic Degree. This 
section is adapted only to the extent necessary to allow payment for 
any degree training, even when not linked to a professional development 
program or to a shortage occupation.
    Part 430, Subpart B: Performance Appraisal for General Schedule, 
Prevailing Rate, and Certain Other Employees. This subpart is waived to 
accommodate the establishment of the TACOM Appraisal and Performance 
Payout System (TAPPS).
    Part 432: Performance Based Reduction in Grade and Removal. This 
part is adapted only to the extent necessary to (1) allow employees to 
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, (2) 
eliminate performance standards and critical elements, (3) incorporate 
what constitutes ``acceptable performance'' and ``unacceptable 
performance,'' as defined in the demonstration project plan, (4) 
replace the term ``grade'' with ``pay band level,'' and (5) provide 
that, for employees who are reduced in pay band level without a 
reduction in pay, Sections 432.105 and 432.106(a) do not apply.
    Sections 432.104 and 432.105: Addressing Unacceptable Performance; 
Proposing and Taking Action Based on Unacceptable Performance. These 
sections are waived to allow the establishment of alternative 
procedures under the TACOM Appraisal and Performance Payout System 
(TAPPS).
    Sections 451.106 and 451.107: Agency and OPM Responsibilities. 
These sections are adapted only to the extent necessary to allow awards 
up to $25,000

[[Page 57801]]

for individual employees to be approved under the project plan 
procedures.
    Part 511: Classification Under the General Schedule. This part is 
adapted only to the extent necessary to (1) replace ``grade'' with 
``pay band level,'' (2) permit classification of demonstration project 
positions to pay band levels on the basis of broadband range factors, 
and (3) allow deviation from OPM-prescribed position description 
formats.
    Part 530, Subpart C: Special salary rates. This subpart is waived 
to the extent necessary to ensure that special salary rates are 
inapplicable to demonstration project employees after their conversion 
into the demonstration project.
    Part 531, Subparts B, D, and E: Determining Rates of Basic Pay; 
Within-Grade Increases; and Quality Step Increases. These subparts are 
waived to allow broadbanding and accommodate performance-focused pay 
features of the TACOM Appraisal and Performance Payout System (TAPPS).
    Part 531, Subpart C: Special Pay Adjustments for Law Enforcement 
Officers. This subpart is adapted only to the extent necessary to allow 
law enforcement officers covered by broadbanding to be treated as 
General Schedule employees, and to allow basic rates of pay under the 
demonstration project to be treated as scheduled annual rates of pay.
    Part 531, Subpart F: Locality-Based Comparability Payments. This 
subpart is adapted only to the extent necessary to (1) allow employees 
in pay band V of the Professional and Business Management broadband 
occupational family to be treated as ST employees, (2) allow all other 
demonstration project employees to be treated as General Schedule 
employees, and (3) allow basic rates of pay under the demonstration 
project to be treated as scheduled rates of basic pay. However, these 
adaptations do not apply to ST employees, who will continue to be 
covered by these Title 5 regulatory provisions, as appropriate.
    Section 531.302: Determining Special Law Enforcement Adjusted Rates 
of Pay. This section is adapted only to the extent necessary to (1) 
allow employees in pay band V of the Professional and Business 
Management broadband occupational family to be treated as ST employees, 
(2) allow all other demonstration project employees to be treated as 
General Schedule employees, and (3) allow basic rates of pay under the 
demonstration project to be treated as scheduled rates of basic pay. 
However, these adaptations do not apply to ST employees, who will 
continue to be covered by these Title 5 regulatory provisions, as 
appropriate.
    Part 536: Grade and Pay Retention. This part is adapted only to the 
extent necessary to: (1) Replace ``grade'' with ``pay band level'; (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; (3) 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 (4) ensure that for employees of pay band V of the 
Professional and Business Management broadband occupational family, pay 
band level retention is not applicable and 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). These adaptations do not apply with respect to 
coverage for ST employees, except when an ST employee moves to a GS-
equivalent position within the demonstration project under conditions 
that trigger entitlement to pay retention.
    Part 550, Sections 550.105-550.106: Biweekly and Annual Maximum 
Earnings Limitations. These sections are adapted 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.
    Part 550, Section 550.113(a): Computation of Overtime Pay. This 
section is adapted 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.
    Section 550.703: Definitions. This section is adapted only to the 
extent necessary to modify the definition of ``reasonable offer'' by 
replacing ``two grade or pay levels'' with ``one pay band level'' and 
``grade or pay level'' with ``pay band level.''
    Section 550.902: Hazardous Duty Differential. This section is 
adapted only to the extent necessary to allow demonstration project 
employees to be treated as General Schedule employees. However, this 
adaptation does not apply to ST employees or employees in pay band V of 
the Professional and Business Management broadband occupational family, 
and they are excluded from coverage under section 550.902.
    Part 575, Subparts A, B, C, and D: Recruitment Bonuses; Relocation 
Bonuses; Retention Allowances; and Supervisory Differentials. These 
subparts are adapted only to the extent necessary to (1) allow 
employees in pay band V of the Professional and Business Management 
broadband occupational family to be treated as ST employees, (2) allow 
all other demonstration project employees to be treated as General 
Schedule employees, and (3) allow basic rates of pay under the 
demonstration project to be treated as scheduled rates of basic pay. 
However, these adaptations do not apply to ST employees, who will 
continue to be covered by these Title 5 regulatory provisions, as 
appropriate.
    Part 591, Subpart B: Cost-of-Living Allowances and Post 
Differential--Nonforeign Areas. This subpart is adapted only to the 
extent necessary to allow demonstration project employees to be treated 
as employees under the General Schedule, and employees in pay band V of 
the Professional and Business Management broadband occupational family 
to be treated as ST employees.
    Section 752.401 (a)(3): Adverse Actions. This section is adapted 
only to the extent necessary to replace ``grade'' with ``pay band 
level.''
    Section 752.401(a)(4): Adverse Actions. This section is adapted 
only to the extent necessary to provide that adverse action provisions 
do not apply to conversions from General Schedule special rates to 
demonstration project pay, as long as total pay is not reduced.

C. Adaptation of Title IV of the Federal Employees Pay Comparability 
Act of 1990 (Public Law 101-509): Federal Law Enforcement Pay Reform

    This title is adapted only to the extent necessary to allow law 
enforcement officers covered by broadbanding under the demonstration 
project to be treated as law enforcement officers under the General 
Schedule.

Appendix A--Occupational Series by Occupational Family

I. Professional and Business Management Family

0018  Safety and Occupational Health Management
0028  Environmental Protection Specialist
0030  Sports Specialist
0080  Security Administration
0101  Social Science
0132  Intelligence
0170  History
0180  Psychology
0185  Social Work
0187  Social Services
0188  Recreation Specialist
0201  Human Resources Management
0205  Military Personnel Management


[[Page 57802]]


    Note: In December 2000, OPM issued the GS-0201, Human Resources 
Management standard and, in so doing, canceled the GS-0205, Military 
Personnel Management series. TACOM is in the process of applying the 
new standard as of the date of this Federal Register notice.

0230  Employee Relations

    Note: In December 2000, OPM issued the GS-0201, Human Resources 
Management standard and, in so doing, canceled the GS-0230, Employee 
Relations series. TACOM is in the process of applying the new 
standard as of the date of this Federal Register notice.

0260  Equal Employment Opportunity
0301  Miscellaneous Administration and Program
0334  Computer Specialist

    Note: In May 2001, OPM issued the GS-2210, Information 
Technology Management standard and, in so doing, canceled the GS-
0334, Computer Specialist series. TACOM is in the process of 
applying the new standard as of the date of this Federal Register 
notice.

0340  Program Management
0341  Administrative Officer
0343  Management and Program Analysis
0346  Logistics Management
0391  Telecommunications
0399  Student Trainee
0401  General Biological Sciences
0501  Financial Administration and Program
0505  Financial Management
0510  Accounting
0511  Auditing
0560  Budget Analysis
0601  Corporate Fitness Program Management
0690  Industrial Hygiene
0801  General Engineering
0803  Safety Engineering
0806  Materials Engineering
0810  Civil Engineering
0819  Environmental Engineering
0830  Mechanical Engineering
0850  Electrical Engineering
0854  Computer Engineering
0855  Electronics Engineering
0861  Aerospace Engineering
0892  Ceramic Engineering
0896  Industrial Engineering
0893  Chemical Engineering
0899  Student Trainee
0905  General Attorney
0950  Paralegal
1001  General Arts and Information
1010  Exhibits Specialist
1020  Illustrating
1035  Public Affairs
1060  Photography
1071  Audiovisual Production
1082  Writing and Editing
1083  Technical Writing and Editing
1084  Visual Information
1101  General Business and Industry
1102  Contracting
1103  Industrial Property Management
1150  Industrial Specialist
1170  Realty
1173  Housing Management
1199  Student Trainee
1222  Patent Attorney
1301  General Physical Sciences
1306  Health Physics
1310  Physics
1315  Hydrology
1320  Chemistry
1321  Metallurgy
1399  Student Trainee
1410  Librarian
1412  Technical Information Services
1515  Operations Research
1520  Mathematics
1529  Mathematical Statistician
1550  Computer Science
1599  Student Trainee
1601  General Facilities and Equipment
1670  Equipment Specialist
1701  General Education and Training
1710  Education and Vocational Training
1712  Training Instruction
1740  Education Services
1801  General Inspection, Investigation, and Compliance
1811  Criminal Investigating
1910  Quality Assurance
2001  General Supply
2003  Supply Program Management
2010  Inventory Management
2030  Distribution Facilities and Storage Management
2032  Packaging
2130  Traffic Management
2210  Information Technology Management

II. Technical Support Family

0019  Safety Technician
0301  Miscellaneous Administration and Program
0802  Engineering Technician
0809  Construction Control
0818  Engineering Drafting
0856  Electronics Technician
0873  Ship Surveyor
0895  Industrial Engineering Technician
1152  Production Control
1311  Physical Science Technician
1521  Mathematics Technician

III. General Support Family

0081  Fire Protection and Prevention
0083  Police
0085  Security Guard
0086  Security Clerical and Assistance
0134  Intelligence Aid/Clerical
0186  Social Services Aid and Assistant
0189  Recreation Aid and Assistant
0203  Human Resources Assistance
0204  Military Personnel Clerical and Technician

    Note: In December 2000, OPM issued the GS-0203, Human Resources 
Assistance standard and, in so doing, canceled the GS- 0204, 
Military Personnel Clerical and Technician series. TACOM is in the 
process of applying the new standard as of the date of this Federal 
Register notice.

0301  Miscellaneous Administration and Program
0303  Miscellaneous Clerk and Assistant
0304  Information Receptionist
0305  Mail and File
0318  Secretary
0322  Clerk-Typist
0326  Office Automation Clerical and Assistance
0332  Computer Operation
0335  Computer Clerk and Assistant
0344  Management and Program Clerical and Assistance
0350  Equipment Operator
0361  Equal Opportunity Assistance
0382  Telephone Operating
0390  Telecommunications Processing
0392  General Telecommunications
0394  Communications Clerical
0503  Financial Clerical and Assistance
0525  Accounting Technician
0540  Voucher Examining
0544  Civilian Pay Clerk
0561  Budget Clerical and Assistance
0986  Legal Assistance
1001  General Arts and Information
1087  Editorial Assistance
1101  General Business and Industry
1105  Purchasing
1106  Procurement Clerical and Technician
1411  Library Technician
1601  General Facilities and Equipment
1702  Education and Training Technician
2005  Supply Clerical and Technician
2102  Transportation Clerk and Assistant
2131  Freight Rate
2151  Dispatching

Appendix B--Position Description Form (Sample)

TACOM Personnel Demonstration Project Position Requirements Document

I. Organizational Information:
    U.S. Army Tank-automotive and Armaments Command
    (Name of Business Center)
    (Name of Division/Branch) (Site Location)
II. Position Information:
    (Title), (Pay Plan Designation), (Series), (Pay Band Level)
    PRD Number:
    FLSA:
    Competitive Level:
    Position Sensitivity:
III. Major Range of Duties: (Description of the major duties and 
responsibilities of the work performed)
IV. Broadband Range Factors:
    Factor 1. Problem Solving
    (Description)
    Level Designation:

    Factor 2. Teamwork/Cooperation
    (Description)
    Level Designation:

    Factor 3. Customer Relations
    (Description)
    Level Designation:

    Factor 4. Leadership
    (Description)
    Level Designation:

    Factor 5. Communication
    (Description)
    Level Designation:

    Factor 6. Resource Management
    (Description)
    Level Designation:

V. Additional Requirements: (If necessary, such items as special 
travel or physical requirements; additional knowledges, skills, and 
abilities needed to perform the range of work; or any other item(s) 
not previously covered).
VI. Electronic Certification

Appendix C--Broadband Performance Benchmarks by Occupational Family

[[Page 57803]]



                                  Table 1.--Performance Benchmarks for Broadband: Professional and Business Management
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                         RATING CRITERIA FACTOR 1--PROBLEM SOLVING  This factor measures personal and organizational problem solving
                                                                                           results.
                                    --------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe  the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range                         Level IV  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score      Low 86-92  Med 93-
                                                                Low 0-5  Med 6-27     Med 44-55  Mh 56-67   Range  Low 67-72  Med    105  High 106-110
                                                                   High 28-32              High 68-72         73-87  High 88-92        Very High 115
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Scope/Impact..........  Conducts activities on  Plans and conducts     Plans and conducts     Independently plans &
     acceptable quality and is                                a segment of a task.    administrative         complex                conducts a complex
     performed on a regular basis.                            Assists supervisor or   activities for         administrative         multi-faceted
     Completed work meets project/                            other appropriate       projects.              activities.            program, or the
     program/function objectives.                             personnel.                                                            operations of a
     Flexibility, adaptability, and                                                                                                 complex multi-
     decisiveness are exercised                                                                                                     faceted
     appropriately.                                                                                                                 organization.
                                     Complexity/Difficulty.  Applies standard        Develops, modifies     Develops rules,        Develops, integrates
                                                              rules, procedures, or   and/or applies         procedures, or         & implements
                                                              operations to resolve   rules, procedures or   operations for         organization/
                                                              routine problems.       operations to          complex/difficult      program, policies
                                                                                      resolve problems of    organizational tasks.  and procedures.
                                                                                      moderate complexity/
                                                                                      difficulty.
                                     Independence..........  Independently carries   Independently plans    Identifies issues and  Independently solves
                                                              out routine tasks.      and executes           determines             organization/program
                                                                                      assignments;           approaches and         problems.
                                                                                      resolves problems      methods to
                                                                                      and handles            accomplish tasks.
                                                                                      deviations.            Initiates effective
                                                                                                             actions and resolves
                                                                                                             related conflicts.
                                     Creativity............  Tasks initiative in     Identifies and adapts  Identifies issues      Develops program/
                                                              selecting and           guidelines for new     requiring new          organization
                                                              implementing            or unusual             procedures and         operating procedures
                                                              appropriate             situations.            develops appropriate   and guidelines to
                                                              procedures.                                    guidelines.            fit new
                                                                                                                                    circumstances/
                                                                                                                                    situations and to
                                                                                                                                    improve overall
                                                                                                                                    program and
                                                                                                                                    policies.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                    RATING CRITERIA FACTOR 1--PROBLEM
                                 SOLVING  This factor measures personal
                                   and organizational problem solving
                                                results.
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                     DEFINITIONS--Level
                                                    definitions in this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                   Sub-Factors      score range for each
                                                       pay band level
 
                                                          Level V
                                                       (Applicable to
                                                   Employees in Pay Band
                                                          Level V)
----------------------------------------------------              Score-
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all levels):
    Work is timely, efficient,  Scope/Impact.....  Leads major national,
     of acceptable quality and                      agency, multi-
     is performed on a regular                      service or
     basis. Completed work                          international
     meets project/program/                         project/programs.
     function objectives.                           Identifies and
     Flexibility,                                   resolves problems
     adaptability, and                              that cross Services/
     decisiveness are                               agencies.
     exercised appropriately.
                                Complexity/        Provides strategic
                                 Difficulty.        direction on issues
                                                    that involve defense
                                                    policies, programs,
                                                    and/or initiatives.
                                Independence.....  Makes independent
                                                    decisions at the
                                                    command, senior
                                                    Service, and/or DoD
                                                    levels.
                                Creativity.......  Formulates strategic
                                                    vision and conceives
                                                    innovative
                                                    approaches for
                                                    implementation.
                                                    Foster an
                                                    environment where
                                                    creative ideas
                                                    flourish.
------------------------------------------------------------------------


[[Page 57804]]


 
                                     RATING CRITERIA FACTOR 2--TEAMWORK/COOPERATION  This factor, applicable to both formal and informal teams, measures
                                                                   individual and organizational teamwork  and cooperation.
                                    --------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe  the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range                         Level IV  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score      Low 86-92  Med 93-
                                                                Low 0-5  Med 6-27     Med 44-55  MH 56-67   Range  Low 67-72  Med    105  High 106-110
                                                                   High 28-32              High 68-72        High 73-87  High 88-      Very High 115
----------------------------------------------------------------------------------------------------------------------92--------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Scope of Team Effort..  Works with others to    Works with others to   Works with others to   Leads/guides/mentors
     acceptable quality. Personal                             accomplish routine      accomplish projects/   accomplish complex     workforce in dealing
     and organizational                                       tasks.                  programs/functions.    projects/program/      with complex
     interactions exhibit and                                                                                functions.             problems.
     foster cooperation and
     teamwork, Flexibility,
     adaptability, and decisiveness
     are exercised appropriately.
                                     Contribution to Team..  Contributes ideas in    Uses varied            Applies innovative     Solves broad
                                                              own area of             approaches to          approaches to          organizational
                                                              expertise. Interacts    resolve or             resolve unusual/       issues. Implements
                                                              cooperatively with      collaborate on         difficult issues       strategic plans
                                                              others.                 project/program/       significantly          within and across
                                                                                      function issues.       impacting important    organizational
                                                                                      Facilitates            public policies or     components. Ensures
                                                                                      cooperative            programs. Promotes     a cooperative
                                                                                      interactions with      and maintains          teamwork
                                                                                      others.                environment for        environment.
                                                                                                             cooperation and
                                                                                                             teamwork.
                                     Effectiveness.........  Regularly completes     Guides/supports        Leads and guides       Leads/guides
                                                              assignments in          others in executing    others in              workforce in
                                                              support of team goals.  team assignments.      formulating and        achieving
                                                                                      Proactively            executing team         organizational
                                                                                      functions as an        plans. Expertise is    goals. Participates
                                                                                      integral part of the   sought by peers.       on high level teams.
                                                                                      team.                                         Is sought out for
                                                                                                                                    consultation.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                   RATING CRITERIA FACTOR 2--TEAMWORK/
                                 COOPERATION  This factor, applicable to
                                both formal and informal teams, measures
                                 individual and organizational teamwork
                                            and cooperation.
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                     DEFINITIONS--Level
                                                    definitions in this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                   Sub-Factors      score range for each
                                                   pay band level  Level
                                                     V  (Applicable to
                                                   Employees in Pay Band
                                                   Level V)  Score Range
                                                    Low 105-110  Med 111-
                                                     115  High 116-120
------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all levels):
    Work is timely, efficient,  Scope of Team      Develops alliances
     of acceptable quality.      Effort.            and team
     Personal and                                   relationships at the
     organizational                                 strategic level.
     interactions exhibit and                       Directs teams in
     foster cooperation and                         resolving issues
     teamwork. Flexible                             with major
     adaptability, and                              organizational
     decisiveness are                               impact.
     exercised appropriately.
                                Contribution to    Formulates strategic
                                 Team.              objectives and
                                                    plans, and
                                                    facilitates
                                                    implementation.
                                                    Fosters a
                                                    cooperative teamwork
                                                    environment.
                                Effectiveness....  Participates as a
                                                    member of senior
                                                    level teams.
                                                    Charters teams on
                                                    organizational level
                                                    issues.
------------------------------------------------------------------------


[[Page 57805]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     RATING CRITERIA FACTOR 3--CUSTOMER RELATIONS  This factor measures the effectiveness of personal and organizational
                                                                   interactions with customers, both internal and external.
                                    --------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score    Level IV  Score Range
                                                                Low 0-5  Med 6-27     Med 44-55  MH 56-67   Range  Low 67-72  Med    Low 86-92  Med 93-
                                                                   High 28-32              High 68-72         73-87  High 88-92      105  High 106-115
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Breadth of Influence..  Independently carries   Guides the technical/  Guides and integrates  Leads/guides/mentors
     acceptable quality. Personal                             out routine customer    functional efforts     functional efforts     workforce in dealing
     and organizational                                       requests.               of individuals or      of individuals or      with complex
     interactions enhance customer                                                    team members as they   teams with focus on    problems.
     relations and actively promote                                                   interact with          quality in suport of
     rapport with customers.                                                          customers.             customer
     Flexibility, adaptability, and                                                                          interaction. Seeks
     decisiveness are exercised                                                                              innovative
     appropriately.                                                                                          approaches to
                                                                                                             satisfy customers.
                                     Customer Needs........  Participants as a team  Initiates meetings     Establishes customer   Works to assess and
                                                              member to meet          and interactions       alliances,             promulgate
                                                              customer needs.         with customers to      anticipates and        political, fiscal
                                                                                      understand customer    fulfills customer      and other factors
                                                                                      needs/expectations.    needs and translates   affecting customer
                                                                                                             customer needs to      and program/project/
                                                                                                             programs/projects/     function needs.
                                                                                                             functions.             Works with customer
                                                                                                                                    at management levels
                                                                                                                                    to resolve problems
                                                                                                                                    affecting programs/
                                                                                                                                    projects.
                                     Customer Interaction    Interacts with          Interacts              Leads and guides       Works at senior level
                                      Level.                  customers on routine    independently with     others in              to stimulate
                                                              issues with             customers to           formulating and        customer alliances
                                                              appropriate guidance.   communicate            executing team         for program/project/
                                                                                      information and        plans. Expertise is    function support.
                                                                                      coordinate actions.    sought by peers.       Stimulates,
                                                                                                                                    organizes and leads
                                                                                                                                    overall customer
                                                                                                                                    interactions.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                   RATING CRITERIA FACTOR 3--CUSTOMER
                                   RELATIONS  This factor measures the
                                      effectiveness of personal and
                                    organizational interactions with
                                 customers, both internal and external.
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                     DEFINITIONS--Level
                                                    definitions in this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                                    score range for each
                                   Sub-Factors         pay band level
                                                  ----------------------
 
                                                              Level V
                                                            (Applicable
                                                    to Employees in Pay
                                                       Band Level V)
 
--------------------------------------------------------Score Range-----
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all Influence strategic
 perspective levels):
    Work is timely, efficient,  Breadth of         Provides broad
     of acceptable quality.      Influence.         strategic
     Personal and                                   perspective for
     organizational                                 development of
     interactions enhance                           organizational
     customer relations and                         interactions with
     actively promote rapport                       customers.
     with customers.
     Flexibility,
     adaptability, and
     decisiveness are
     exercised appropriately.
                                Customer Needs...  Works at senior level
                                                    to influence
                                                    political, fiscal,
                                                    and other factors
                                                    affecting customers
                                                    and projects/
                                                    programs.
                                Customer           Provides technical
                                 Interaction        and management
                                 Level.             consultation to
                                                    stimulate customer
                                                    alliances for
                                                    program/project
                                                    support. Acts as
                                                    senior level
                                                    resource for
                                                    structuring and
                                                    marketing customer
                                                    interactions.
------------------------------------------------------------------------


[[Page 57806]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          RATING CRITERIA FACTOR 4--LEADERSHIP  This factor measures individual and organizational leadership and/or
                                                                                  supervisory contributions.
                                    --------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range                         Level IV  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score      Low 86-92  Med 93-
                                                                Low 0-5  Med 6-27     Med 44-55  MH 56-67   Range  Low 67-72  Med    105  High 106-110
                                                                   High 28-32              High 68-72         73-87  High 88-92        Very High 115
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Leadership Role.......  Takes initiative in     Actively contributes   Provides guidance to   Establishes and/or
     acceptable quality. Leadership                           accomplishing           as a team member/      individuals/teams;     leads teams to carry
     and/or supervision effectively                           assigned tasks.         leader; provides       resolves conflicts.    out complex projects
     promotes commitment to mission                                                   insight and            Considered a           or programs.
     accomplishment. Flexibility,                                                     recommends changes     functional/technical   Resolves conflicts.
     adaptability, and decisiveness                                                   or solutions to        expert by other in     Creates climate
     are exercised appropriately.                                                     problems.              the organization; is   where empowerment
                                                                                                             regularly sought out   and creativity
                                                                                                             by other for advice    thrive. Recognized
                                                                                                             and assistance.        as a technical/
                                                                                                                                    functional authority
                                                                                                                                    on specific issues.
                                     Breadth of Influence..  Provides inputs to      Proactively guides,    Defines, organizes     Leads, defines,
                                                              others in own           coordinates, and       and assigns            manages and
                                                              technical/functional    consults with others   activities to          integrates efforts
                                                              area.                   to accomplish          accomplish project/    of several groups or
                                                                                      projects.              program goals.         teams. Ensures
                                                                                                             Guides, motivates      organizational
                                                                                                             and oversees the       mission and program
                                                                                                             activities of          success.
                                                                                                             individuals and
                                                                                                             teams with focus on
                                                                                                             project/program/
                                                                                                             function issues.
                                     Mentoring/Employee      Seeks and takes         Identifies and         Fosters individual/    Fosters the
                                      Development.            advantage of            pursues individual/    team development by    development of other
                                                              developmental           team development       mentoring. Pursues     teams members by
                                                              opportunities.          opportunities.         or creates training    providing guidance
                                                                                                             development programs   or sharing
                                                                                                             for self and others.   expertise. Directs
                                                                                                                                    assignments to
                                                                                                                                    encourage employee
                                                                                                                                    development and
                                                                                                                                    cross-functional
                                                                                                                                    growth to meet
                                                                                                                                    organizational
                                                                                                                                    needs. Pursues self-
                                                                                                                                    professional
                                                                                                                                    development.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                  RATING CRITERIA FACTOR 4--LEADERSHIP
                                   This factor measures individual and
                                    organizational leadership and/or
                                       supervisory contributions.
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                    DEFINITIONS----Level
                                                    definitions in this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                                    score range for each
                                   Sub-Factors         pay band level
                                                  ----------------------
 
                                                              Level V
                                                            (Applicable
                                                    to Employees in Pay
                                                       Band Level V)
 
--------------------------------------------------------Score Range-----
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all levels):
    Work is timely, efficient,  Leadership Role..  Establishes
     of acceptable quality.                         organizational
     Leadership and/or                              strategic
     supervision effectively                        objectives.
     promotes commitment to                         Coordinates and
     mission accomplishment.                        forms cross
     Flexibility,                                   component/Service/
     adaptability, and                              industry alliances
     decisiveness are                               to attain objectives
     exercised appropriately.                       and mission goals.
                                Breadth of         Leads, manages and
                                 Influence.         integrates
                                                    organizational
                                                    efforts to meet
                                                    strategic goals.
                                                    Assesses and
                                                    redefines
                                                    organizational and
                                                    mission focus to
                                                    adapt to economic
                                                    and political
                                                    influences.
                                Mentoring/         Creates
                                 Employee           organizational
                                 Development.       climate where
                                                    mentoring and
                                                    employee development
                                                    thrive. Creates
                                                    career and
                                                    professional
                                                    development
                                                    opportunities.
                                                    Develops senior
                                                    leaders within the
                                                    organization. Shares
                                                    experience and
                                                    expertise.
------------------------------------------------------------------------


[[Page 57807]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                       RATING CRITERIA FACTOR 5--COMMUNICATION  This factor measures the effectiveness of oral/written communications.
                                    --------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range                         Level IV  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score      Low 86-92  Med 93-
                                                                Low 0-5  Med 6-27     Med 44-55  MH 56-67   Range  Low 67-72  Med    105  High 106-110
                                                                   High 28-32              High 68-72         73-87  High 88-92        Very High 115
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Level of Interaction    Communicates routine    Communicates team or   Communicates project   Determines and
     acceptable quality.              (Audience).             task status results     group tasking          or program results     communicates
     Communications are clear,                                as required.            results, internally    to all levels,         organizational
     concise, and at appropriate                                                      and externally, at     internally and         positions on major
     level. Flexibility,                                                              peer levels.           externally.            projects or policies
     adaptability, and decisiveness                                                                                                 to senior level.
     are exercised appropriately.
                                     Written...............  Provides timely data    Writes, or is a major  Reviews and approves,  Prepares, reviews and
                                                              and written analyses    contributor to,        or is a major          approves major
                                                              for input to            management/technical   contributor to lead    reports or policies
                                                              management/technical    reports or             author of management   of organization for
                                                              reports or              contractual            reports or             internal and
                                                              contractual documents.  documents.             contractual            external
                                                                                                             documents for          distribution.
                                                                                                             external               Resolves divers
                                                                                                             distribution.          viewpoints/
                                                                                                             Provides input to      controversial
                                                                                                             policies.              issues.
                                     Oral..................  Explains status/        Presents               Presents briefings to  Presents
                                                              results of assigned     informational          obtain consensus/      organizational
                                                              tasks.                  briefings.             approval.              briefings to convey
                                                                                                                                    strategic vision or
                                                                                                                                    organizational
                                                                                                                                    policies.
--------------------------------------------------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                 RATING CRITERIA FACTOR 5--COMMUNICATION
                                 This factor measures the effectiveness
                                     of oral/written communications.
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                     DEFINITIONS--Level
                                                      definitions this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                                    score range for each
                                   Sub-Factors         pay band level
                                                  ----------------------
 
                                                              Level V
                                                            (Applicable
                                                    to Employees in Pay
                                                       Band Level V)
 
--------------------------------------------------------Score Range-----
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all Interaction
 communicates levels):
    Work is timely, efficient,  Level of           Determines and
     of acceptable quality.      Interaction        communicates
     Communications are clear,   (Audience).        strategic positions
     concise, and at                                across agencies,
     appropriate level.                             Services,
     Flexibility,                                   international
     adaptability, and                              entities, or
     decisiveness are                               industries.
     exercised appropriately.
                                Written..........  Reviews and approves
                                                    strategic documents;
                                                    authors executive
                                                    reports/opinions for
                                                    presentation to DoD
                                                    forums that may have
                                                    industry-wide
                                                    impacts.
                                Oral.............  Delivers senior-
                                                    levels presentations
                                                    to DoD and/or
                                                    defense industry
                                                    leaders conveying
                                                    program mission or
                                                    strategic
                                                    objectives.
------------------------------------------------------------------------


 
                                        RATING CRITERIA FACTOR 6--RESOURCE MANAGEMENT  This factor measures personal and organizational utilization of
                                         resources to accomplish the mission. (Resources include but are not limited to personal time, equipment and
                                                                           facilities, human resources and funds.)
                                    --------------------------------------------------------------------------------------------------------------------
                                                             PERFORMANCE LEVEL DEFINITIONS--Below level definitions provide illustrations which describe
                                                                                   the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                               Level II  Score Range                         Level IV  Score Range
                                                              Level I  Score Range     Low 24-32  ML 33-43     Level III  Score      Low 86-92  Med 93-
                                                                Low 0-5  Med 6-27     Med 44-55  MH 56-67   Range  Low 67-72  Med    105  High 106-110
                                                                   High 28-32              High 68-72         73-87  High 87-92        Very High 115
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS          Scope of                Uses assigned           Plans and utilizes     Plans and allocates    Develops, acquires,
 (Applicable accomplishments at all   Responsibility.         resources needed to     appropriate            resources to           and allocates
 levels):                                                     accomplish tasks.       resources to           accomplish multiple    resources to
                                                                                      accomplish project     project/programs.      accomplish mission
                                                                                      goals.                                        goals and strategic
                                                                                                                                    objectives.

[[Page 57808]]

 
    Work is timely, efficient, of
     acceptable quality. Resources
     are utilized effectively to
     accomplish the mission.
     Flexibility, adaptability, and
     decisiveness are exercised
     appropriately.
                                     Planning/Budgeting....  Plans individual time   Optimizes resources    Identifies and         Formulates
                                                              and assigned            to accomplish          optimizes resources    organizational
                                                              resources to            projects/programs      to accomplish          strategies, tactics,
                                                              accomplish tasks.       within established     multiple project/      and budget/action
                                                                                      schedules.             program goals.         plan to acquire and
                                                                                                                                    allocate resources.
                                     Execution/Efficiency..  Effectively             Effectively            Effectively            Optimizes, controls
                                                              accomplishes assigned   accomplishes project/  accomplishes           and manages all
                                                              tasks.                  program goals within   multiple project/      resources across
                                                                                      established resource   program goals within   project/programs.
                                                                                      guidelines.            established            Develops and
                                                                                                             guidelines.            integrates
                                                                                                                                    innovative
                                                                                                                                    approaches to attain
                                                                                                                                    goals and minimize
                                                                                                                                    expenditures.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                   RATING CRITERIA FACTOR 6--RESOURCE
                                    MANAGEMENT  This factor measures
                                 personal and organizational utilization
                                 of resources to accomplish the mission.
                                 (Resources include but are not limited
                                     to personal time, equipment and
                                 facilities, human resources and funds.)
                               -----------------------------------------
                                                     PERFORMANCE LEVEL
                                                     DEFINITIONS--Level
                                                    definitions in this
                                                       table provide
                                                    illustrations which
                                                   describe the ``high''
                                                    score range for each
                                   Sub-Factors         pay band level
                                                  ----------------------
 
                                                              Level V
                                                            (Applicable
                                                    to Employees in Pay
                                                       Band Level V)
 
--------------------------------------------------------Score Range-----
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments
 at all levels):
    Work is timely, efficient,  Scope of           Leads the strategic
     of acceptable quality.      Responsibility.    resources planning
     Resources are utilized                         process for the
     effectively to accomplish                      organization.
     the mission. Flexibility,                      Advises senior-level
     adapatability, and                             management/DoD on
     decisiveness are                               resource issues.
     exercised appropriately.
                                Planning/          Administers
                                 Budgeting.         organizational
                                                    resources to achieve
                                                    goals.
                                Execution/         Promulgates
                                 Efficiency.        innovative
                                                    organizational
                                                    strategies to
                                                    maximize resource
                                                    utilization.
------------------------------------------------------------------------


[[Page 57809]]


                                            Table 2.--Performance Benchmarks for Broadband: Technical Support
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                           describe the ``high'' score range for each pay band level
                                                     ---------------------------------------------------------------------------------------------------
                                                                                                                                        Level V  Score
                                      Sub-Factors       Level I  Score      Level II  Score    Level III  Score     Level IV  Score    Range  Low 86-92
                                                        Range  Low 0-5     Range  Low 24-32    Range  Low 47-56    Range  Low 67-72    Med 93-105  High
                                                      Med 6-27  High 28-   ML 33-38  Med 39-  Med 57-67  High 68- Med 73-87  High 88- 106-110  Very High
                                                              32          44  MH 45-51  High          72                  92                  115
---------------------------------------------------------------------------------52-56------------------------------------------------------------------
                                                        RATING CRITERIA FACTOR 1--PROBLEM SOLVING
                                        This factor measures personal and organizational problem solving results.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at
 all levels):
    Work is timely, efficient,    Scope/Impact......  Conducts            Plans and conducts  Plans and conducts  Identifies and      Defines,
     of acceptable quality and                         activities on a     technical           challenging and     resolves complex    establishes &
     is performed on a regular                         task; assists       activities for      difficult           problems that may   directs
     basis. Completed work meets                       supervisor or       projects.           technical           cross functional/   organizational
     project/program/function                          other appropriate                       activities for      technical           focus (on
     objectives. Flexibility,                          personnel.                              projects/programs/  boundaries and      challenging &
     adaptability, and                                                                         function.           promulgates         highly complex
     decisiveness are exercised                                                                                    solutions.          projects/programs/
     appropriately.                                                                                                                    functions).
                                                                                                                                       Identifies &
                                                                                                                                       resolves highly
                                                                                                                                       complex problems
                                                                                                                                       that cross
                                                                                                                                       organizational
                                                                                                                                       boundaries &
                                                                                                                                       promulgates
                                                                                                                                       solutions.
                                                                                                                                       Resolution of
                                                                                                                                       problems requires
                                                                                                                                       mastery of the
                                                                                                                                       field to develop
                                                                                                                                       new hypotheses or
                                                                                                                                       fundamental new
                                                                                                                                       concepts.
                                  Complexity/         Resolves routine    Identifies and      Develops,           Develops,           Assesses and
                                   Difficulty.         problems within     resolves non-       integrates and      integrates          provides
                                                       established         routine technical   implements          implements          strategic
                                                       guidelines.         problems            solutions to        solutions to        direction for
                                                                           utilizing           complex problems    diverse, complex    resolution of
                                                                           established         on projects/        problems which      mission critical
                                                                           patterns and        programs.           may cross           problems,
                                                                           methods.                                multiple projects/  policies and
                                                                                                                   programs or         procedures.
                                                                                                                   functional/
                                                                                                                   technical areas.
                                  Independence......  Works with others   Identifies and      Identifies          Independently       Works at senior
                                                       in solving          resolves            problems,           resolves and        level to define,
                                                       problems with       problems, adapts    develops            coordinates         integrate, &
                                                       appropriate         accepted            solutions and       technical           implement
                                                       guidance.           policies,           action plans with   problems            strategic
                                                                           procedures or       minimal guidance.   involving           direction for
                                                                           methods with                            multiple projects/  vital programs
                                                                           moderate guidance.                      programs.           with long term
                                                                                                                                       impact on large
                                                                                                                                       numbers of
                                                                                                                                       people. Initiates
                                                                                                                                       actions to
                                                                                                                                       resolve major
                                                                                                                                       organizational
                                                                                                                                       issues.
                                                                                                                                       Promulgates
                                                                                                                                       innovative
                                                                                                                                       solutions and
                                                                                                                                       methodologies.
                                  Creativity........  Takes initiative    Adapts existing     Develops plans and  Develops plans and  Works with senior
                                                       in selecting and    plans and           techniques to fit   techniques top      management to
                                                       implementing        techniques to       new situations.     fit new             establish new
                                                       appropriate         accomplish                              situations and/or   fundamental
                                                       procedures.         projects.                               to address issues   concepts and
                                                                                                                   that cross          criteria and
                                                                                                                   technical/          stimulate the
                                                                                                                   functional areas.   development of
                                                                                                                                       new policies,
                                                                                                                                       methodologies,
                                                                                                                                       and techniques.
                                                                                                                                       Converts
                                                                                                                                       strategic goals
                                                                                                                                       into programs or
                                                                                                                                       policies.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 57810]]

 
                                                     RATING CRITERIA FACTOR 2--TEAMWORK/COOPERATION
               This factor, applicable to both formal and informal teams, measures individual and organizational teamwork and cooperation.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFOR-MANCE STANDARDS
 (Applicable accomplish-ments at
 all levels):
    Work is timely, efficient,    Scope of Team       Works with others   Works with others   Works with others   Leads/guides/       Leads/guides/
     of acceptable quality.        Effort.             to accomplish       to accomplish       to accomplish       mentors workforce   mentors workforce
     Personal and organizational                       routine tasks.      projects.           complex projects/   in dealing with     in dealing with
     interactions exhibit and                                                                  programs.           complex problems.   complex problems.
     foster cooperation and
     teamwork. Flexibility,
     adaptability, and
     decisiveness are exercised
     appropriately.
                                  Contribution to     Contributes ideas   Contributes ideas   Assists others to   Solves broad        Solves broad
                                   Team.               in own area of      in own area of      resolve or          organizational      organizational
                                                       expertise.          expertise.          collaborate on      issues.             issues.
                                                       Interacts           Facilitates         complex to          Implements          Implements
                                                       cooperatively       cooperative         project/program     strategic plans     strategic plans
                                                       with others.        interactions with   issues. Promotes    within and across   within and across
                                                                           others.             cooperative         organizational      organizational
                                                                                               interactions with   components.         components.
                                                                                               others.             Ensures a           Ensures a
                                                                                                                   cooperative         cooperative
                                                                                                                   teamwork            teamwork
                                                                                                                   environment.        environment.
                                  Effectiveness.....  Regularly           Supports others in  Integrates          Leads/guides        Leads/guides
                                                       completes           executing team      technical           workforce in        workforce in
                                                       assignments in      assignments.        expertise and       achieving           achieving
                                                       support of team     Proactively         guides activities   organizational      organizational
                                                       goals.              functions as an     to support team     goals.              goals.
                                                                           integral part of    accomplishment.     Participates on     Participates on
                                                                           the team.                               high level teams.   high level teams.
                                                                                                                   Is sought out for   Is sought out for
                                                                                                                   consultation.       consultation.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      RATING CRITERIA FACTOR 3--CUSTOMER RELATIONS
             This factor measures the effectiveness of personal and organizational interactions with customers, both internal and external.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFOR- MANCE STANDARDS
 (Applicable accomplishments at
 all levels):
    Work is timely, efficient,    Breadth of          Assists customer    Actively            Guides the          Leads and           Leads and manages
     of acceptable quality.        Influence.          support             participates with   technical efforts   coordinates         the
     Personal and organizational                       activities.         others to satisfy   of individuals or   technical efforts   organizational
     interactions enhance                                                  customer requests.  teams as they       of individuals or   interactions with
     customer relations and                                                                    relate with         teams in support    customers from a
     actively promote rapport                                                                  customers.          of customer         strategic
     with customers.                                                                           Deviates from       interactions.       standpoint.
     Flexibility, adaptability,                                                                standard approach   Develops
     and decisiveness are                                                                      when necessary.     innovative
     exercised appropriately.                                                                                      approaches to
                                                                                                                   satisfy customers.

[[Page 57811]]

 
                                  Customer Needs....  Participates as a   Interacts with      Initiate meetings   Establishes         Woks to assess and
                                                       team member to      customers to        and interactions    customer            promulgate
                                                       meet customer       respond to          with customers to   alliance;           political, fiscal
                                                       needs.              customer needs/     understand          anticipates and     and other factors
                                                                           expectations.       customer needs/     fulfills customer   affecting
                                                                                               expectations.       needs and           customer at
                                                                                                                   translates          management levels
                                                                                                                   customer needs to   to resolve
                                                                                                                   project/programs.   problems
                                                                                                                   Organizes and       affecting
                                                                                                                   leads customer      programs/
                                                                                                                   interactions.       projects.
                                  Customer            Interacts with      Interacts           Interacts           Interacts with      Works at senior
                                   Interaction Level.  customers on        independently       independently       customers on        level to
                                                       routine issues      with customer to    with customers on   proactive basis     stimulate
                                                       with appropriate    communicate         proactive basis     to identify and     customer
                                                       guidance.           information and     to identify/        define complex/     alliances for
                                                                           coordinate          define problems     controversial       program/project/
                                                                           actions.            and to implement    problems and to     function support.
                                                                                               solutions.          develop and         Stimulates,
                                                                                                                   implement           organizes and
                                                                                                                   strategies or       leads overall
                                                                                                                   techniques for      customer
                                                                                                                   resolving project/  interactions.
                                                                                                                   program issues.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          RATING CRITERIA FACTOR 4--LEADERSHIP
                             This factor measures individual and organizational leadership and/or supervisory contributions.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishment at
 all levels):
    Work is timely, efficient,    Leadership role...  Takes initiate in   Actively            Actively            Provides guidance   Establishes and/or
     of acceptable quality.                            accomplishing       contributes as a    contributes as      to individuals/     leads teams to
     Leadership and/or                                 assigned tasks.     team member;        team member or      teams; resolves     carry out complex
     supervision effectively                           Asks for            takes initiative    leader.             conflicts. Serves   projects or
     promotes commitment to                            assistance as       to accomplish       Recognized for      as subject matter   programs.
     mission accomplishment.                           appropriate.        assigned projects.  functional/         expert.             Resolves
     Flexibility, adaptability,                                                                technical                               conflicts.
     and decisiveness are                                                                      expertise.                              Creates climate
     exercised approximately.                                                                                                          where empowerment
                                                                                                                                       and creativity
                                                                                                                                       thrive.
                                                                                                                                       Recognized as a
                                                                                                                                       technical/
                                                                                                                                       functional
                                                                                                                                       authority on
                                                                                                                                       specific issues.
                                  Breadth of          Provides inputs to  Consults and        Defines, organizes  Guides, motivates   Leads, defines,
                                   Influence.          others in own       coordinates with    and assigns         and oversees        manages and
                                                       technical/          others to           activities to       multiple complex    integrates
                                                       functional area.    complete projects   accomplish goals.   projects/programs.  efforts of
                                                                           within              Guides, motivates                       several groups or
                                                                           established         and oversees                            teams. Ensures
                                                                           guidelines.         others in                               organizational
                                                                                               accomplishing                           mission and
                                                                                               project/programs.                       program success.
                                  Mentoring/Employee  Seeks and takes     Identifies and      Promotes            Directs             Fosters the
                                   Development.        advantage of        pursues             developmental       assignments to      development of
                                                       developmental       individual/team     opportunities for   encourage           other team
                                                       opportunities.      developmental       self and team.      employee            members by
                                                                           opportunities.      Advises others to   development and     providing
                                                                                               seek specific       cross technical/    guidance or
                                                                                               training.           functional growth   sharing
                                                                                                                   to meet             expertise.
                                                                                                                   organizational      Directs
                                                                                                                   needs. Pursues      assignments to
                                                                                                                   self-development.   encourage
                                                                                                                                       employee
                                                                                                                                       development and
                                                                                                                                       cross-functional
                                                                                                                                       growth to meet
                                                                                                                                       organizational
                                                                                                                                       needs. Pursues
                                                                                                                                       self-professional
                                                                                                                                       development
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 57812]]

 
                                                         RATING CRITERIA FACTOR 5--COMMUNICATION
                                         This factor measures the effectiveness of oral/written communications.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS (Applicable accomplishments at all levels):
    Work is timely, efficient,    Level of            Communicate s       Communicates at     Communicates        Determines and      Determines and
     of acceptable quality.        Interaction         routine task        equivalent levels   project/program     communicates        communicates
     Communications are clear,     (Audience).         status results as   within the          status/results to   projects/policies   organizational
     concise, and at appropriate                       required.           agency, team, or    management.         positions at        positions on
     level. Flexibility                                                    group project                           senior levels.      major projects or
     adaptability, and                                                     status/results.                                             policies to
     decisiveness are exercised                                                                                                        senior levels.
     appropriately.
                                  Written...........  Writes timely and   Writes segments of  Consolidates input  Prepares, reviews   Prepares, reviews
                                                       accurate draft      management/         and writes          and approves        and approves
                                                       documentation of    technical reports   management/         management/         major reports or
                                                       assigned tasks      of documents.       technical reports/  technical reports   policies of
                                                       for input to                            documents for       for internal and    organization for
                                                       reports or                              project programs.   external            internal and
                                                       documents.                                                  distribution.       eternal
                                                                                                                                       distribution.
                                                                                                                                       Resolves diverse
                                                                                                                                       viewpoints/
                                                                                                                                       controversial
                                                                                                                                       issues.
                                  Oral..............  Explains status/    Communicates group/ Presents project/   Presents projects/  Present
                                                       results of          team results.       program briefings.  program briefings   organizational
                                                       assigned tasks.                                             to obtain           briefings to
                                                                                                                   consensus/          convey strategic
                                                                                                                   approval.           vision or
                                                                                                                   Represents the      organization
                                                                                                                   organization as     polices.
                                                                                                                   technical subject
                                                                                                                   matter expert.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      RATING CRITERIA FACTOR 6--RESOURCE MANAGEMENT
 This factor measures personal and organizational utilization of resources to accomplish the mission. (Resources include but are not limited to personal
                                               time, equipment and facilities, human resources and funds.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at
 all levels):
    Work is timely, efficient,    Scope of            Uses assigned       Identifies and      Plans and utilizes  Plans and           Develops,
     of acceptable quality.        Responsibility.     resources to        uses resources to   appropriates        allocates           acquires, and
     Resources are utilized                            accomplish tasks.   accomplish          resources to        resources to        allocates
     effectively to accomplish                                             projects.           accomplish          accomplish          resources to
     the mission. Flexibility,                                                                 projects/programs.  multiple project/   accomplish
     adaptability, and                                                                                             program goals.      mission goals and
     decisiveness are exercised                                                                                                        strategic
     appropriately.                                                                                                                    objectives.
                                  Planning/Budgeting  Plans individual    Plans resources to  Optimizes           Identifies and      Formulates
                                                       to time             achieve task        resources to        optimizes           organizational
                                                       accomplish tasks.   schedules.          accomplish          resources to        strategies,
                                                                                               projects within     accomplish          tactics, and
                                                                                               established         multiple project/   budget/action
                                                                                               milestones.         program goals.      plan to acquire
                                                                                                                                       and allocate
                                                                                                                                       resources.

[[Page 57813]]

 
                                  Execution/          Effectively         Independently       Effectively         Effectively         Optimizes,
                                   Efficiency.         accomplishes        accomplishes        accomplishes        accomplishes        controls and
                                                       assigned tasks      assigned tasks.     projects/programs   multiple project/   manages all
                                                       with appropriate                        within              program goals       resources across
                                                       guidance.                               established         within              project/programs.
                                                                                               resource            established         Develops and
                                                                                               guidelines.         thresholds.         integrates
                                                                                                                   Develops            innovative
                                                                                                                   innovative          approaches to
                                                                                                                   approaches to       attain goals and
                                                                                                                   attain goals and    minimize
                                                                                                                   minimize resource   expenditures.
                                                                                                                   expenditures.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                             Table 3.--Performance Benchmarks for Broadband: General Support
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              PERFORMANCE LEVEL DEFINITIONS--Level definitions in this table provide illustrations which
                                                                              describe the ``high'' score range for each pay band level
                                                            --------------------------------------------------------------------------------------------
                                           Sub-Factors                                                                             Level IV  Score Range
                                                              Level I  Score Range   Level II  Score Range     Level III  Score     Low 57-67  Med 68-87
                                                                Low 0-5  Med 6-27     Low 24-32  Med 33-45  Range  Low 41-50  Med     High 88-92  Very
                                                                   High 28-32              High 46-50         51-62  High 63-67           High 96
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        RATING CRITERIA FACTOR 1--Problem Solving
                                        This factor measures personal and organizational problem solving results.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Scope/Impact..........  Conducts activities on  Plans and conducts     Plans and conducts     Independently plans &
     acceptable quality and is                                a segment of a task.    administrative         complex                conducts a complex
     performed on a regular basis.                            Assists supervisor or   activities for         administrative         multi-faceted
     Completed work meets project/                            other appropriate       projects.              activities.            program, or the
     program/function objectives.                             personnel.                                                            operations of a
     Flexibility, adaptability, and                                                                                                 complex multi-
     decisiveness are exercised                                                                                                     faceted
     appropriately.                                                                                                                 organization.
                                     Complexity/Difficulty.  Applies standard        Develops, modifies     Develops rules,        Develops, integrates
                                                              rules, procedures, or   and/or applies         procedures, or         & implements
                                                              operations to resolve   rules, procedures or   operations for         organization/
                                                              routine problems.       operations to          complex/difficult      program, policies
                                                                                      resolve problems of    organizational tasks.  and procedures.
                                                                                      moderate complexity/
                                                                                      difficulty.
                                     Independence..........  Independently carries   Independently plans    Identifies issues and  Independently solves
                                                              out routine tasks.      and executes           determines             organization/program
                                                                                      assignments;           approaches and         problems.
                                                                                      resolves problems      methods to
                                                                                      and handles            accomplish tasks.
                                                                                      deviations.            Initiates effective
                                                                                                             actions and resolves
                                                                                                             related conflicts.
                                     Creativity............  Takes initiative in     Identifies and and     Identifies issues      Develops program/
                                                              selecting and           adapts guidelines      requiring new          organization
                                                              implementing            for new or unusual     procedures and         operating procedures
                                                              appropriate             situations.            develops appropriate   and guidelines to
                                                              procedures.                                    guidelines.            fit new
                                                                                                                                    circumstances/
                                                                                                                                    situations and to
                                                                                                                                    improve overall
                                                                                                                                    program and
                                                                                                                                    policies.
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):

[[Page 57814]]

 
    Work is timely, efficient, of    Scope of Team Effort..  Works with others to    Works with others to   Works with others to   Coordinates with
     acceptable quality. Personal                             accomplish routine      accomplish tasks.      accomplish complex     others from other
     and organizational                                       tasks.                                         issues/problems that   functions/programs
     interactions exhibit and                                                                                may cross functional   to assure
     foster cooperation and                                                                                  areas.                 integration and
     teamwork. Flexibility,                                                                                                         accomplishment of
     adaptability, and decisiveness                                                                                                 complex programs.
     are exercised appropriately.
                                     Contribution to Team..  Contributes ideas in    Resolves               Applies expertise in   Applies innovative
                                                              own area of             administrative         resolving complex      approaches to
                                                              expertise. Interacts    problems;              administrative         resolve complex
                                                              cooperatively with      facilitates            issues. Promotes and   programmatic issues.
                                                              others.                 cooperative            maintains              Promotes and
                                                                                      interactions with      environment for        maintains
                                                                                      others.                cooperation and        environment for
                                                                                                             teamwork. Sets tone    cooperation/
                                                                                                             for internal/          teamwork. Sets tone
                                                                                                             external cooperation.  for internal/
                                                                                                                                    external
                                                                                                                                    cooperation.
                                     Effectiveness.........  Regularly completes     Guides others and      Leads and guides       Leads and guides
                                                              assignments in          coordinates            others in              others in
                                                              support of team goals.  activities in          formulating and        formulating and
                                                                                      support of team        executing plans in     executing team
                                                                                      goals. Proactively     support of team        plans. Expertise is
                                                                                      functions as an        goals.                 sought by peers.
                                                                                      integral part of the
                                                                                      team.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      RATING CRITERIA FACTOR 3--CUSTOMER RELATIONS
             This factor measures the effectiveness of personal and organizational interactions with customers, both internal and external.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):
    Work is timely, efficient, of    Breadth of Influence..  Assists customer        Guides the             Identifies, defines    Guides and integrates
     acceptable quality. Personal                             support activities.     administrative         and guides             program/organization
     and organizational                                                               efforts of             administrative         efforts with focus
     interactions enhance customer                                                    individuals or team    efforts in support     on quality; seeks
     relations and actively promote                                                   members as they        of customer            innovative
     rapport with customers.                                                          interact with          interactions;          approaches to
     Flexibility, adaptability, and                                                   customers.             coordinates and        satisfy wide variety
     decisiveness are exercised                                                                              focuses activities     of customers.
     appropriately.                                                                                          to support multiple
                                                                                                             customers.
                                     Customer Needs........  Meets routine customer  Initiates              Establishes customer   Establishes customer
                                                              needs.                  interactions with      alliances, and         alliances,
                                                                                      customers to           translates needs to    anticipates &
                                                                                      understand customer    customer service.      fulfills customer
                                                                                      needs/expectations.                           needs and translates
                                                                                                                                    customers
                                                                                                                                    requirements to
                                                                                                                                    program/projects/
                                                                                                                                    functions.
                                     Customer Interaction    Interacts with          Interacts              Works independently    Interacts
                                      Level.                  customers on routine    independently with     with customers at      independently with a
                                                              issues with             customer to            all levels to define   wide variety of
                                                              appropriate guidance.   communicate            services and resolve   customers on
                                                                                      information and        non-routine problems.  proactive basis to
                                                                                      coordinate actions.                           identify, define and
                                                                                                                                    resolve complex/
                                                                                                                                    difficult problems
                                                                                                                                    with program
                                                                                                                                    implications.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          RATING CRITERIA FACTOR 4--LEADERSHIP
                             This factor measures individual and organizational leadership and/or supervisory contributions.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):

[[Page 57815]]

 
    Work is timely, efficient, of    Leadership Role.......  Takes initiative in     Actively contributes   Provides guidance to   Establishes and/or
     acceptable quality. Leadership                           accomplishing           as a team member or    individuals/teams;     leads teams to carry
     and/or supervision effectively                           assigned tasks. Asks    leader; takes          resolves conflicts.    out complex
     promotes commitment to mission                           for assistance as       initiative to          Expertise solicited    programs. Resolves
     accomplishment. Flexibility,                             appropriate.            accomplish assigned    by others.             conflicts.
     adaptability, and decisiveness                                                   projects.                                     Recognized as
     are exercised appropriately.                                                                                                   technical authority
                                                                                                                                    on program.
                                     Breadth of Influence..  Provides inputs to      Guides others in       Guides and accounts    Leads, defines,
                                                              others in own           accomplishing          for results or         manages and accounts
                                                              technical/functional    projects.              activities of          for results and
                                                              area.                                          individuals, teams     activities of groups
                                                                                                             or projects.           or teams. Ensures
                                                                                                                                    organizational
                                                                                                                                    mission and program
                                                                                                                                    success.
                                     Mentoring/Employee      Seeks and takes         Idenifies and pursues  Promotes individual/   Fosters the
                                      Development.            advantage of            individual/team        team development;      development of other
                                                              developmental           development            leads and              teams members by
                                                              opportunities.          opportunities.         development of         providing guidance
                                                                                                             training programs      or sharing
                                                                                                             for self and others.   expertise. Directs
                                                                                                                                    assignments to
                                                                                                                                    encourage employee
                                                                                                                                    development and
                                                                                                                                    cross-functional
                                                                                                                                    growth to meet
                                                                                                                                    organizational
                                                                                                                                    needs. Pursues self-
                                                                                                                                    professional
                                                                                                                                    development.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         RATING CRITERIA FACTOR 5--COMMUNICATION
                                         This factor measures the effectiveness of oral/written communications.
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS          Level of Interaction    Communicates routine    Interprets and         Develops and advises   Determines and
 (Applicable accomplishments at all   (Audience).             task status results     communicates           on administrative      communicates
 levels):                                                     as required.            administrative         procedures.            positions on a multi-
                                                                                      procedures within      Communicates them to   faceted program/
                                                                                      immediate              all levels, both       organization to
                                                                                      organization.          internally and         senior level.
                                                                                                             externally.
    Work is timely, efficient, of
     acceptable quality.
     Communications are clear,
     concise, and at appropriate
     level. Flexibility,
     adaptability, and decisiveness
     are exercise appropriately.
                                     Written...............  Writes timely and       Prepares,              Prepares, reviews and/ Prepares, reviews and
                                                              accurate draft          coordinates, and       or approves            approves program
                                                              document.               consolidates           documents, reports,    regulations,
                                                                                      documents, reports,    or briefing.           policies, and plans
                                                                                      or briefing.                                  for internal and
                                                                                                                                    external
                                                                                                                                    distribution.
                                                                                                                                    Resolves divers
                                                                                                                                    viewpoints/
                                                                                                                                    controversial
                                                                                                                                    issues.
                                     Oral..................  Explains status/        Communicates/presents  Explains and/or        Presents
                                                              results of assigned     internal               communications         organizational
                                                              task.                   administrative/        administrative/        briefings on program/
                                                                                      functional             functional             organization
                                                                                      procedures and tasks   procedures at all      policies, plans, and
                                                                                      internally and         levels.                regulations/
                                                                                      externally.                                   operations at all
                                                                                                                                    levels.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      RATING CRITERIA FACTOR 6--RESOURCE MANAGEMENT
 This factor measures personal and organizational utilization of resources to accomplish the mission. (Resources include but are not limited to personal
                                               time, equipment and facilities, human resources and funds.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
BASIC PERFORMANCE STANDARDS
 (Applicable accomplishments at all
 levels):

[[Page 57816]]

 
    Work is timely, efficient, of    Scope of                Uses assigned           Identifies and uses    Plans, acquires and    Develops, acquires
     acceptable quality. Resources    Responsibility.         resources needed to     resources to           allocates resources    and allocates
     are utilized effectively to                              accomplish tasks.       accomplish projects.   to accomplish          resources to
     accomplish the mission.                                                                                 objectives.            accomplish program
     Flexibility, adaptability, and                                                                                                 goals and
     decisiveness are exercised                                                                                                     objectives.
     appropriately.
                                     Planning/Budgeting....  Plans individual time   Plans resources to     Coordinates resources  Formulates program
                                                              and assigned            achieve project        across projects.       strategies, tactics,
                                                              resources to            schedules.                                    and budget/action
                                                              accomplish tasks.                                                     plan to acquire and
                                                                                                                                    allocate resources.
                                     Execution/Efficiency..  Effectively             Effectively            Optimizes resource     Optimizes, controls
                                                              accomplishes assigned   accomplishes           utilization across     and manages all
                                                              tasks.                  projects within        projects.              resources across
                                                                                      established resource                          organization/
                                                                                      guidelines.                                   programs. Develops
                                                                                                                                    and integrates
                                                                                                                                    innovative
                                                                                                                                    approaches to attain
                                                                                                                                    goals and minimize
                                                                                                                                    expenditures.
--------------------------------------------------------------------------------------------------------------------------------------------------------


BILLING CODE 5001-08-P

[[Page 57817]]

[GRAPHIC] [TIFF OMITTED] TN16NO01.003


[[Page 57818]]


[GRAPHIC] [TIFF OMITTED] TN16NO01.004


[[Page 57819]]


[GRAPHIC] [TIFF OMITTED] TN16NO01.005


[[Page 57820]]


[GRAPHIC] [TIFF OMITTED] TN16NO01.006

BILLING CODE 5001-08-C

[[Page 57821]]

Appendix E--Project Evaluation Model

--------------------------------------------------------------------------------------------------------------------------------------------------------
        Interventions and expected effects                                  Measures                                         Data sources
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Simplified Accelerated Hiring:
    A. Ease of hiring............................  I. Perceived flexibility                                   a. Attitude survey
    B. Improved recruitment......................  I. Offer/accept rations                                    a. Personnel office data
                                                   II. Percent declinations                                   a. Personnel office data
    C. Increased quality of new hires............  I. Employee effectiveness                                  a. Attitude survey
                                                   II. Experience, education, skills
    D. Reduced administrative workload/paperwork   I. Actual/perceived time savings                           a. Personnel office data
     reduction.                                                                                               b. Attitude survey
    E. Retention.................................  I. Employee turnover                                       a. Personnel office data
2. Expanded Candidate Selection Process:
    A. Flexibility in recruitment................  I. Perceived flexibility                                   a. Attitude survey
                                                   II. Number/percentage of employees hired beyond high 3     a. Workforce data
    B. Increased quality of new hires............  I. Employee effectiveness                                  a. Attitude survey
                                                   II. Experience, educational skills
3. Appointment Authority (Permanent, Modified
 Term, Temporary Limited):
    A. Increased capability to expand and          I. Number/percentage of contingent employees               a. Workforce data
     contract workforce.
                                                   II. Conversion rate to permanent status                    a. Workforce data
                                                                                                              b. Personnel office data
                                                   III. Average length of employment (contingent hires)       a. Workforce data
                                                                                                              b. Personnel office data
    B. Reduced administrative workload...........  i. Actual/perceived time savings                           a. Attitude survey
                                                                                                              b. Personnel office data
    C. More experienced personnel entering         I. Mission effectiveness                                   a. Attitude survey
     permanent workforce.
    D. Ease in filing permanent billets (non-      I. Number/percentage of conversion from modified term to   a. Workforce data
     competitive conversion).                       permanent appointments                                    b. Personnel office data
4. Flexible/Probationary Period:
    A. Expanded employee assessment period.......  I. Average conversion period to                            a. Workforce data
                                                                                                              b. Personnel office data
                                                   II. Number/percentage of employees completing              a. Workforce data
                                                    probationary period                                       b. Personnel office data
5. The TACOM Appraisal & Performance and
 Performance Payout System (TAPPS):
    I. Performance Benchmarks:
        A. Increased pay-accomplishment link.....  I. Pay-contribution correlations                           a. Attitude survey
                                                                                                              b. Comparison of historical data on
                                                                                                               compensation.
                                                   II. Perceived pay-contribution link                        a. Personnel office data
                                                   III. Perceived fairness of ratings                         a. Attitude survey
                                                   IV. Satisfaction with ratings                              a. Attitude survey
                                                   V. Employees trust in supervisors                          a. Attitude survey
        B. Improved accomplishment and             I. Adequacy of accomplishment and performance feedback     a. Attitude survey
         performance feedback.
        C. Increased retention of contributions..  I. Turnover by accomplishment assessment                   a. Attitude survey
        D. Increased turnover of low contributors  I. Turnover by accomplishment assessment                   a. Attitude survey
    II. Base Salary Increase and Bonus Funds and
     the Educational Development Share/Bonus:
        A. Reward/motivate accomplishment and      I. Amount & number of awards by career path, demographics  a. Workforce data
         performance.
                                                   II. Perceived motivational power                           a. Attitude survey
                                                   III. Perceived fairness of awards                          a. Attitude survey
6. Broadbanding:
    A. Increased organizational flexibility......  I. Perceived flexibility                                   a. Attitude survey
    B. Reduced administrative workload/paperwork   I. Actual/perceived time savings                           a. Personnel office data
     reduction.                                                                                               b. Attitude survey
    C. Higher starting salaries..................  I. Starting salaries of banded vs. non-banded employees    a. Workforce data
    D. More gradual pay progression at entry       I. Progression of new hires over time by band and career   a. Workforce data
     level.                                         path.
    E. Increased pay potential...................  I. Mean salaries by band, career path, demographics        a. Workforce data
    F. Higher average salary.....................  I. Total payroll cost                                      a. Workforce data
    G. Increased satisfaction with advancement...  I. Employees perception of advancement                     a. Attitude survey
    H. Increased pay satisfaction................  I. Pay satisfaction, internal/external equity              a. Attitude survey

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7. Simplified Classification:
    A. Ease of classification....................  I. Perceived flexibility                                   a. Attitude survey
                                                   II. Fewer position requirements documents                  a. Workforce data
                                                                                                              b. Personnel office data
    B. Reduced admin workload paperwork reduction  I. Actual/perceived time                                   a. Personnel office data
                                                                                                              b. Attitude survey
8. Simplified modified RIF:
    A. Prevent loss of high-performing employees   I. Separate employees by demographics, performance         a. Workforce data
     with needed skills.                           II. Satisfaction with RIF process                          b. Attitude survey/focus groups
    B. Contain cost and disruption...............  I. Number of employees affected by RIF                     a. Personnel office data
                                                   II. Time to conduct RIF
                                                   III. Number of appeals/reinstatements
9. Employee Development:
    A. Increased employee career progression.....  I. Demographics of affected employees                      a. Workforce data
                                                   II. Employee/management satisfaction                       a. Attitude survey
    B. Increased capability/flexibility for        III. Perceived flexibility                                 a. Attitude survey
     workforce shaping.
10. Sabbaticals:
    A. Increased employee career progression.....  I. Demographics of affected employees                      a. Workforce data
                                                   II. Employee/management satisfaction                       a. Attitude survey
    B. Increased capability/flexibility for        I. Perceived flexibility                                   a. Attitude survey
     workforce shaping.
11. Voluntary Emeritus Program:
    A. Encourage voluntary retirement and open up  I. Frequency of use and cost                               a. Workforce data
     hiring slots for new staff.
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[FR Doc. 01-28550 Filed 11-15-01; 8:45 am]
BILLING CODE 5001-08-P