[Federal Register Volume 71, Number 192 (Wednesday, October 4, 2006)]
[Notices]
[Pages 58638-58639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16261]


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OFFICE OF PERSONNEL MANAGEMENT


Civilian Acquisition Workforce Personnel Demonstration Project; 
Department of Defense

AGENCY: Office of Personnel Management.

ACTION: Notice of amendment to this demonstration to facilitate the 
transition of Acquisition Demonstration Project employees to the 
National Security Personnel System (NSPS) by authorizing an out-of-
cycle Contribution-based Compensation and Appraisal System (CCAS) 
payout and amending conversion-out procedures.

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SUMMARY: The Department of Defense (DoD or ``the Department''), with 
the approval of the Office of Personnel Management (OPM), received 
authority to conduct a personnel demonstration project 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. 
section 1701 note), as amended by section 845 of the National Defense 
Authorization Act for Fiscal Year 1998 (Pub. L. 105-85)]. The project 
was developed under legislative authority granted in Fiscal Year 1996 
and modified in Fiscal Year 1998. Subsequent legislation authorized 
establishment of NSPS, a human resources management system for DoD 
under 5 U.S.C. 9902, as enacted by section 1101 of the National Defense 
Authorization Act for Fiscal Year 2004 (Pub. L. 108-136). This notice 
provides authorization for an out-of-cycle payout under CCAS prior to 
transition to NSPS and addresses procedures for conversion of employees 
from this demonstration project to NSPS.

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

FOR FURTHER INFORMATION CONTACT: DoD: Mary S. Thomas, Civilian 
Acquisition Workforce Personnel Demonstration Project, 2001 North 
Beauregard Street, Suite 210, Alexandria, VA 22311, 703-681-3508. OPM: 
Michael Carmichael, U.S. Office of Personnel Management, 1900 E Street 
NW., Room 7412, Washington, DC 20415, 202-606-1868.

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. A 
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 CCAS 
to 90 consecutive 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

[[Page 58639]]

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

    This amendment provides the authority to individual DoD Components 
to conduct an out-of-cycle CCAS payout prior to transition to NSPS. 
Prior to transition of any demonstration project employees to NSPS, a 
CCAS closeout appraisal must be accomplished and an out-of-cycle payout 
may be made. The required funding floors [not less than two percent of 
an activity's total salary budget for Contribution Rating Increases 
(CRIs) and not less than one percent of an activity's total salary 
budget for Contribution Awards (CAs)] may be suspended for any out-of-
cycle payout. This amendment also provides authority to convert 
employees from this demonstration project to NSPS in accordance with 
DoD implementing issuances pursuant to 5 U.S.C. 9902. Office of 
Personnel Management.

Linda M. Springer,
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 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 amendment is to ensure that demonstration 
employees are not inadvertently penalized, but receive their earned 
contribution-based permanent pay increases and/or contribution awards, 
upon transition to NSPS. Additionally, since the current demonstration 
project plan only contains conversion-out procedures for employees 
converting back to General Schedule positions, this amendment will 
authorize conversion-out procedures for employees transitioning to 
NSPS. Pursuant to 5 CFR 470.315, an amendment is 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.

B. Employee Notification and Collective Bargaining Requirements

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

III. Personnel System Changes

    [64 FR 1452] Section III.D.1. Contribution-Based Compensation and 
Appraisal System. Insert the following new paragraph after the 2nd 
paragraph: ``As described in detail below, the CCAS uses performance 
factors to measure contributions for appraisal purposes. Any AcqDemo 
organization scheduled to transition to the National Security Personnel 
System (NSPS) may notify affected employees that, as of a specified 
date, the performance appraisal provisions of Section III.D. shall 
cease to apply, and that appropriate performance management standards 
may be substituted for CCAS performance factors until the organization 
is covered by NSPS.''
    [64 FR 1477] Section III.D.4. Pay Pools. Amend the last sentence of 
the last paragraph to read, ``The funds to be included in the pay pool 
will be computed based on the salaries of the employees in the pay pool 
as of the last calendar day of the CCAS appraisal period.''
    [64 FR 1478] Section III.D.5. Salary Adjustment Guidelines. Insert 
as last sentence in 4th paragraph (that begins ``The contribution 
rating increase* * *''): In the event of an out-of-cycle payout (see 
Section V.C.), this funding floor may be suspended.
    [64 FR 1478] Section III.D.5. Salary Adjustment Guidelines. Insert 
as last sentence in 5th paragraph (that begins ``The contribution award 
fund* * *''): In the event of an out-of-cycle payout (see Section 
V.C.), this funding floor may be suspended.
    [64 FR 1484] Section V.C. [Added.] C. Conversion to the National 
Security Personnel System (NSPS). Prior to transition of any 
demonstration project employees to NSPS, a CCAS closeout appraisal must 
be accomplished and an out-of-cycle payout may be made. Funding levels 
for out-of-cycle payouts may be reduced on a pro rata basis if the 
period between the previous CCAS payout and the out-of-cycle payout was 
less than one year. Funding that corresponds to the general pay 
increase shall not form part of the pay pools for any out-of-cycle 
payouts. Thereafter, conversion of employees covered by this 
demonstration to NSPS shall be accomplished in accordance with NSPS 
implementing issuances published by the Department. The General 
Schedule conversion procedures regarding reduction-in-force service 
credit (i.e., Section V.B.4. of the existing demonstration project 
plan) shall not apply to employees converted from the demonstration to 
NSPS, because after conversion to NSPS, the Department will determine 
retention standing solely on the basis of the NSPS final regulations at 
5 CFR part 9901, subpart F, and related implementing issuances.

 [FR Doc. E6-16261 Filed 10-3-06; 8:45 am]
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