[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Notices]
[Pages 20192-20193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9957]


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OFFICE OF PERSONNEL MANAGEMENT


Civilian Acquisition Workforce Personnel Demonstration Project; 
Department of Defense (DoD)

AGENCY: Office of Personnel Management (OPM).

ACTION: Notice of amendment to this demonstration to make employees in 
the top broadband level of their career path eligible to receive a 
``very high'' overall contribution score (OCS) and to reduce the 
minimum rating period under the Contribution-based Compensation and 
Appraisal System (CCAS) to 90 calendar days.

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SUMMARY: The Department of Defense (DoD), with the approval of OPM, may 
conduct a personnel demonstration project within DoD's civilian 
acquisition workforce and among those supporting personnel assigned to 
work directly with it. (See Section 4308 of the National Defense 
Authorization Act for Fiscal Year 1996 (Pub. L. 104-106; 10 U.S.C.A. 
1701 note), as amended by section 845 of the National Defense 
Authorization Act for Fiscal Year 1998 (Pub. L. 105-85)). This notice 
amends the project plan for this demonstration to (1) make employees in 
the top broadband level of their career path eligible to receive a 
``very high'' overall contribution score (OCS) and (2) reduce the 
minimum rating period under the Contribution-based Compensation and 
Appraisal System (CCAS) to 90 consecutive calendar days.

DATES: This amendment is effective upon publication of this notice.

FOR FURTHER INFORMATION CONTACT: DoD: Anthony D. Echols, Civilian 
Acquisition Workforce Personnel Demonstration Project, 2001 North 
Beauregard Street, Suite 750, Alexandria, VA 22311, 703-681-3553. OPM: 
Mary Lamary, U.S. Office of Personnel Management, 1900 E Street NW., 
Room 7460, Washington, DC 20415, 202-606-2820.

SUPPLEMENTARY INFORMATION:

1. Background

    OPM approved and published the project plan for the Civilian 
Acquisition Workforce Personnel Demonstration Project in the Federal 
Register on January 8, 1999 (Volume 64, Number 5, part VII). An 
amendment was published in the May 21, 2001, Federal Register, Volume 
66, Number 98 to (1) correct discrepancies in the list of occupational 
series included in the project and (2) authorize managers to offer a 
buy-in to Federal employees entering the project after initial 
implementation. This demonstration project involves hiring and 
appointment authorities, broadbanding, simplified classification, a 
contribution-based compensation and appraisal system, revised 
reduction-in-force procedures, academic degree and certificate 
training, and sabbaticals.

2. Overview

    To recognize high contributors, the project plan incorporates 
``very high'' scores for employees who are capped at the top of their 
broadband level. Each career path has a different ``very high'' score, 
as follows: 115 for Business Management and Technical Management 
Professional, 95 for Technical Management Support, and 70 for 
Administrative Support.
    The project plan reserves ``very high'' scores for employees whose 
pay rate is at the maximum for their broadband level. Employees with 
lower pay rates are not eligible to receive the ``very high'' score 
that could place them in the

[[Page 20193]]

inappropriately compensated region below the rails, compensation 
category B. This produces unintended results. Specifically, employees 
whose salaries happen to be at the top of their broadband are eligible 
to receive higher contribution rating increase percentages than other 
employees in the same broadband. They would receive any payout in the 
form of a bonus, because their salaries were already at the top of the 
broadband.
    The following explains how this unintended outcome occurs. Figure 2 
in the demonstration project plan, titled ``CCAS Compensation 
Categories,'' shows the rails for the normal pay range and the three 
resulting compensation categories: A, B, and C. The lower rail of the 
normal pay range intersects the vertical line representing a 100 score 
at a base salary equivalent to a GS-15, step 7.
    Under the current project plan, employees with salaries equivalent 
to a GS-15, step 7 are not eligible to receive an overall contribution 
score (OCS) that would place them in the inappropriately compensated 
region below the rails, category B, because they are not eligible to 
receive the ``very high'' score of 115. Therefore, the highest 
contribution rating increase these employees can receive is 6 percent, 
the maximum percentage for the appropriately compensated region between 
the rails, category C. (See Table 6, Compensation Eligibility Chart, in 
the demonstration project plan which breaks out the contribution rating 
increase percentages by compensation category.)
    Other employees with salaries at the GS-15, step 10 level (the top 
of broadband level IV of the Business Management and Technical 
Management Professional career path), however, are eligible to receive 
the ``very high'' OCS of 115. A 115 score would place them in the 
inappropriately compensated region below the rails, compensation 
category B. Therefore, these employees are eligible to receive a 
contribution rating increase up to 20 percent. In other words, this 
group of employees can receive a higher percentage increase than the 
first group, just because their salaries are at the maximum rate of the 
broadband.
    This amendment eliminates the potential for such unintended 
outcomes by making all employees in the top broadband level of each 
career path eligible to receive ``very high'' scores and contribution 
rating increases of up to 20 percent, as shown in Table 6.
    According to the project plan, if an employee has served under CCAS 
for less than six months, the rating official must wait for the 
subsequent annual cycle to assess the employee. Experience gained 
during the project's operation reveals that a shorter minimum rating 
period would be beneficial. By instituting this change, more employees 
will receive ratings of record and be eligible for contribution rating 
increases and contribution awards. In addition, managers will not have 
to wait six months or longer to recognize employees' contributions. 
This notice changes the minimum rating period to 90 consecutive 
calendar days. It also requires that the first appraisal be rendered 
within 15 months of entering the demonstration project.

Office of Personnel Management.
Kay Coles James,
Director.

I. Executive Summary

    The project was designed by a Process Action Team (PAT) under the 
authority of the Under Secretary of Defense for Acquisition and 
Technology, with the participation of and review by DoD and the Office 
of Personnel Management (OPM). The purpose of the project is to enhance 
the quality, professionalism, and management of the DoD acquisition 
workforce through improvements in the human resources management 
system.

II. Introduction

    This demonstration project provides managers, at the lowest 
practical level, the authority, control, and flexibility they need to 
achieve quality acquisition processes and quality products. This 
project not only provides a system that retains, recognizes, and 
rewards employees for their contribution, but also supports their 
personal and professional growth.

A. Purpose

    The purpose of this notice is to make all employees in the top 
broadband level of their career path eligible to receive a ``very 
high'' overall contribution score (OCS) and to reduce the minimum 
rating period under the Contribution-based Compensation and Appraisal 
System (CCAS) to 90 consecutive calendar days. Other provisions of the 
approved plan are unchanged. Pursuant to 5 CFR 470.315, changes are 
hereby made to the Federal Register, Civilian Acquisition Workforce 
Personnel Demonstration Project; Department of Defense; Notice, Friday, 
January 8, 1999, Volume 64, Number 5, Part VII, pages 1473, 1474, 1476, 
and 1490.

B. Employee Notification and Collective Bargaining Requirements

    The demonstration project program office shall notify employees of 
this amendment by posting it on the demonstration project's web pages 
(http://www.acq.osd.mil/acqdemo/new_site). Participating organizations 
must fulfill any collective bargaining obligations to unions that 
represent employees covered by the demonstration.

III. Personnel System Changes

A. Overall Contribution Score (OCS)

    Change the third sentence of Section III. D. 2 to read:
    The horizontal axis spans from 0 to the maximum contribution score 
of 100, with a notional ``very high'' score of 115 for those employees 
in the top broadband level of their career path.
    Change last sentence of Section III. D. 2., subparagraph 2 to read:
    The same is true for the other two career paths: Technical 
Management Support with a ``very high'' score of 95 for employees in 
broadband level IV, and Administrative Support with a ``very high'' 
score of 70 for employees in broadband level III.
    Change Section III. D. 3., paragraph 6 to read:
    If on October 1, the employee has served under CCAS for less than 
ninety (90) consecutive calendar days, the rating official shall wait 
for the subsequent annual cycle to assess the employee. The first CCAS 
appraisal must be rendered within 15 months after entering the 
demonstration project.
    Insert a new paragraph 7 as follows:
    Employees who have served under CCAS for less than 90 consecutive 
calendar days shall not receive contribution rating increases or 
contribution awards for that cycle. However, their salaries shall be 
increased by the amount and at the time of the next General Schedule 
pay increase under 5 U.S.C. 5303.
    In Section VIII A, delete paragraph 3, which contains an obsolete 
reference to the January 1999 General Schedule pay increase.

[FR Doc. 02-9957 Filed 4-23-02; 8:45 am]
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