[Federal Register Volume 67, Number 200 (Wednesday, October 16, 2002)]
[Notices]
[Pages 63948-63949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26271]



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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 intent to amend this demonstration by changing the 
method for determining and translating retention service credit.

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SUMMARY: The Department of Defense (DoD), with the approval of OPM, may 
conduct a personnel demonstration within DoD's civilian acquisition 
workforce and 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 proposes to amend the project 
plan for this demonstration to change the method for determining and 
translating retention service credit.

DATES: OPM and DoD will consider written comments if received no later 
than November 15, 2002.

ADDRESSES: Send written comments to Mary Lamary, U.S. Office of 
Personnel Management, 1900 E Street NW., Room 7460, Washington, DC 
20415.

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). Since that 
time, three amendments have been published. The first 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. 
The second amendment was published in the April 24, 2002, Federal 
Register, Volume 67, Number 79 to (1) make employees in the top 
broadband level of their career path eligible to receive a ``very 
high'' overall contribution score and (2) reduce the minimum rating 
period under the Contribution-based Compensation and Appraisal System 
(CCAS) to 90 calendar days. Finally, the third amendment was published 
in the July 1, 2002, Federal Register, Volume 67, Number 126 to (1) 
list all organizations that are eligible to participate in the project 
and (2) make the resulting adjustments to the table that describes the 
project's workforce demographics and union representation. 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

    The project plan links employees' overall contribution scores 
(OCSs) to retention service credit for reduction in force. Experience 
during the first three rating cycles showed that the method for linkage 
causes two unintended results.
    The first unintended result adversely affects high contributors 
(that is, employees with a high OCS for the expected contribution range 
of their broadband level). High contributors can only receive high 
retention service credit if their positions are toward the top of the 
salary rate range for the broadband level.
    Second, high contributors receive less credit than lower 
contributors in some cases. The structure of Table 7, Retention Service 
Credit Associated with Appraisal Results, allows such outcomes.
    This notice proposes to amend the project plan for this 
demonstration to change the method for determining retention service 
credit based on Contribution-based Compensation and Appraisal System 
(CCAS) process results. For consistency, this notice also proposes to 
change Table 8, Translation of Retention Service Credit.

    Dated: October 4, 2002.

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 propose to amend this 
demonstration by changing the method for determining and translating 
retention service credit. Other provisions of the approved plan are 
unaffected by this proposal. Pursuant to 5 CFR 470.315, changes are 
hereby proposed 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 1479-82 and 1484.

B. Employee Notification and Collective Bargaining Requirements

    The demonstration project program office shall notify employees of 
this proposed amendment by posting it on the demonstration project's 
web page (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

Retention Service Credit

    The following are the proposed changes to the demonstration project 
plan.
    Delete all of Section III. D. 9., including Table 7.
    Throughout the project plan, re-number Tables 8, 9, and 10 as 
Tables 7, 8, and 9, respectively.
    Delete the second and third rows of the re-designated Table 7, 
Translation of Retention Service Credit, as follows: ``20: Outstanding 
or equivalent, Level 5'' and ``16: Highly Successful or equivalent, 
Level 4.'' A copy of the revised re-designated Table 7 appears at the 
end of this amendment.
    Delete the fourth paragraph of Section III. F. and insert the 
following:
    Employees shall receive additional years of retention service 
credit in RIF, based on their CCAS process results. Refer to Figure 2, 
CCAS Compensation

[[Page 63949]]

Categories, which depicts the three categories: A, B, and C. To 
calculate the number of additional years of retention service credit, 
average the number of additional years received for the employees' 
three most recent annual placements in category A, B, or C during the 
4-year period before the issuance of RIF notices. Use the following 
rules to determine the number of years for a given annual placement.
    Rule 1--Employees whose annual OCS places them above the upper rail 
in category A shall not receive any additional years.
    Exception to Rule 1--Category A employees on retained pay may have 
lacked the opportunity to contribute at the level of their retained 
pay. Therefore, they shall receive 12 additional years.
    Rule 2--Employees whose OCS places them in categories B or C shall 
receive 12 additional years.
    Rule 3--Substitute the annual performance rating of record under 
the previous performance management system for one or more CCAS process 
results if, before the issuance of RIF notices, (1) three complete CCAS 
cycles have not yet occurred or (2) an individual has not completed 
three cycles to obtain three CCAS process results. In such cases, 
consistent with the re-designated Table 7, Translation of Retention 
Service Credit, employees with ratings of record at or above Fully 
Successful or equivalent (Level 3) shall receive 12 additional years, 
while those with lower ratings of record shall not receive any 
additional years. After including both CCAS results and previous 
ratings of record, employees who still have only received one or two of 
these shall receive credit for performance on the basis of adding the 
value and dividing by the number of CCAS results and/or ratings of 
record actually received. Those who have no annual performance rating 
of record or CCAS results shall receive 12 additional years.
    Change Section V. B. 4. to read:
    The demonstration project does not use summary level designators. 
In this regard, the project differs from non-demonstration appraisal 
systems and programs established under 5 U.S.C. Chapter 43 and 5 CFR 
part 430. To accommodate this difference and to allow the CCAS 
contribution information to be used as equivalent ratings under 5 CFR 
part 430, translate retention service credit based on the employee's 
OCS for the 3 most recent years of the last 4 years while under the 
demonstration project to summary level designators for use by the 
gaining agency. The re-designated Table 7, Translation of Retention 
Service Credit, shows how to do this translation.

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       Retention service credit              Appraisal rating level
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12....................................  Fully Successful or equivalent,
                                         Level 3.
0.....................................  Unsuccessful, Level 1.
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[FR Doc. 02-26271 Filed 10-15-02; 8:45 am]
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