[Federal Register Volume 71, Number 83 (Monday, May 1, 2006)]
[Notices]
[Pages 25615-25616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4049]


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OFFICE OF PERSONNEL MANAGEMENT


Personnel Demonstration Project; Alternative Personnel Management 
System for the U.S. Department of Commerce

AGENCY: Office of Personnel Management.

ACTION: Notice of modification to the Department of Commerce Personnel 
Management Demonstration Project.

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SUMMARY: The Office of Personnel Management (OPM) has authority to 
conduct demonstration projects that experiment with new and different 
human resources management concepts to determine whether changes in 
policies and procedures result in improved Federal human resources 
management. OPM approved a demonstration project covering several 
operating units of the U.S. Department of Commerce (DoC). OPM must 
approve modifications to demonstration project plans. This notice 
rescinds the demonstration project's independent authority pertaining 
to recruitment and retention payments. By so doing, it allows the 
demonstration project to take advantage of the expanded recruitment and 
retention flexibilities applicable to General Schedule and other 
employees.

DATES: This notice modifying the DoC Demonstration Project may be 
implemented upon publication.

FOR FURTHER INFORMATION CONTACT: Department of Commerce:
    Joan Jorgenson, U.S. Department of Commerce, 14th and Constitution 
Avenue, NW., Room 5004, Washington, DC 20230, (202) 482-4233. Office of 
Personnel Management: Jill Rajaee, U.S. Office of Personnel Management, 
1900 E Street, NW., Washington, DC 20415, (202) 606-0836.

SUPPLEMENTARY INFORMATION:

1. Background

    The Office of Personnel Management (OPM) approved the Department of 
Commerce (DOC) Demonstration Project and published the final plan in 
the Federal Register Volume 62, Number 247, Part II, on Wednesday, 
December 24, 1997. The project was implemented on March 29, 1998, and 
modified in the Federal Register on Thursday, September 30, 1999, 
Volume 64, Number 189 [Notices] [Pages 52810-52812], and on Tuesday, 
August 12, 2003, Volume 68, Number 155 [Notices] [Pages 47948-47949]. 
OPM approved a request to extend the DOC Demonstration Project for five 
years as stated in an administrative letter from OPM, dated February 
14, 2003. The project was approved for expansion in the Federal 
Register Volume 68, Number 180 [Notices] [Pages 54505-54507], on 
Wednesday, September 17, 2003, to include an additional 1,505 
employees. The demonstration project was again modified on Tuesday, 
July 5, 2005, Volume 70, Number 127 [Notices] [Pages 38732-38733]. This 
notice rescinds the demonstration project's independent authority 
pertaining to recruitment and retention payments. By so doing, it 
allows the demonstration project to take advantage of the expanded 
recruitment and retention flexibilities under 5 U.S.C. 5753 and 5754, 
and subparts A and C of 5 CFR part 575.

    Authority: 5 U.S.C. 4703; 5 CFR 470.315

    Office of Personnel Management.
Linda M. Springer,
 Director.

Table of Contents

I. Executive Summary
II. Basis for Project Plan Modification
III. Changes to the Project Plan

I. Executive Summary

    The Department of Commerce (DOC) Demonstration Project utilizes 
many features similar to those implemented by the National Institute of 
Standards and Technology (NIST) Demonstration Project in 1988. The DOC 
Demonstration Project supports several key objectives: To simplify the 
classification system for greater flexibility in classifying work and 
paying employees; to establish a performance management and rewards 
system for improving individual and organizational performance; and to 
improve recruitment and retention to attract highly qualified 
candidates. The project is designed to test whether the interventions 
of the NIST project, which is now a permanent alternative personnel 
system, could be successful in other DOC environments. The current 
participating organizations include the Office of the Chief Financial 
Officer and Assistant Secretary for Administration (CFO/ASA), the 
Technology Administration, the Bureau of Economic Analysis, the 
Institute for Telecommunication Sciences, and units of the National 
Oceanic and Atmospheric Administration: Office of Oceanic and 
Atmospheric Research, National Marine Fisheries Service, and the 
National Environmental Satellite, Data, and Information Service.

II. Basis for Project Plan Modification

    As part of the Commerce Demonstration Project plan, as published in 
the Federal Register notice (62 FR 67434), the recruitment bonus and 
retention allowance authorities under 5 U.S.C. 5753 and 5754, and 
subparts A and C of 5 CFR part 575, were waived for the DOC 
Demonstration Project and replaced with an independent authority to pay 
recruitment and retention payments. Based on independent evaluations, 
the recruitment and retention payment flexibilities have been 
underutilized in the demonstration project. The changes in statute made 
by section 101 of the Federal Workforce Flexibility Act of 2004 (Pub. 
L. 108-411, October 30, 2004) provide robust recruitment and retention 
incentives in an effort to

[[Page 25616]]

address challenges such as labor market competition and skill gap 
issues. However, because of the previous waivers, the demonstration 
project is precluded from taking advantage of these tools to address 
recruitment and retention concerns. This notice removes the 
demonstration project's independent authority to pay recruitment and 
retention payments, thereby allowing the project to use the recruitment 
and retention incentive authorities in 5 U.S.C. 5753 and 5754, and 
subparts A and C of 5 CFR part 575. This will provide managers in the 
demonstration project the same flexibilities now available to General 
Schedule and other employees under title 5. The demonstration project 
needs to be able to take advantage of legislative changes to title 5 
when appropriate. It should be noted that since the demonstration 
project did not waive 5 U.S.C. 5753 or subpart B of 5 CFR part 575 
pertaining to relocation bonuses, the demonstration project could use 
the relocation incentive flexibilities provided by the Federal 
Workforce Flexibility Act of 2004 and implementing regulations prior to 
this notice. This notice continues to allow the demonstration project 
to use the title 5 relocation incentive authority.

III. Changes to the Project Plan

    This notice modifies the Commerce demonstration plan by rescinding 
its independent authority related to recruitment and retention 
payments, thereby providing authority to use recruitment and retention 
incentive authorities under 5 U.S.C. 5753 and 5754, and subparts A and 
C of 5 CFR part 575. The following discussion refers readers to the 
substantive changes to the project plan. The following page numbers 
refer to the pages in the final plan, published in the Federal Register 
on December 24, 1997.
    (1) Page 67451: Remove Paragraph B.12, ``Recruitment and Retention 
Payments,'' and renumber Paragraphs B.13, ``Travel Expenses,'' and 
B.14, ``Promotion,'' as Paragraphs B.12 and B.13, respectively.
    (2) Page 67463: In section X, ``Authorities and Waiver of Laws and 
Regulations Required,'' remove the following waivers:

--``5 U.S.C. 5753-5754 Recruitment and relocation bonuses; Retention 
allowances (except that relocation bonuses under Section 5753 continue 
to apply),''
--``Part 575, Subpart A, Recruitment bonuses,'' and
--``Part 575, Subpart C, Retention allowances.''

    (3) Page 67463: In section X, ``Authorities and Waiver of Laws and 
Regulations Required,'' add the following new waivers:

--Before the waiver for ``Section 7512(3),'' insert ``Section 5753 and 
5754 Recruitment, Relocation and Retention Incentives. This waiver 
applies only to the extent necessary to allow employees and positions 
under the demonstration project to be treated as employees and 
positions under the General Schedule or the SL/ST pay plan.''
--Before the waiver for ``Section 752.401(a)(3),'' insert ``Part 575, 
Subparts A, B and C, Recruitment, Relocation and Retention Incentives. 
This waiver applies only to the extent necessary to allow employees and 
positions under the demonstration project to be treated as employees 
and positions under the General Schedule or the SL/ST pay plan.''

[FR Doc. 06-4049 Filed 4-28-06; 8:45 am]
BILLING CODE 6325-43-P