[Federal Register Volume 73, Number 232 (Tuesday, December 2, 2008)]
[Notices]
[Pages 73248-73252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28591]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Science and Technology Reinvention Laboratory Personnel 
Management Demonstration Program

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

ACTION: Notice of amendment of demonstration project plans and notice 
of proposals to adopt a demonstration project plan.

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SUMMARY: Section 342(b) of the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 1995, as amended (10 U.S.C. 2358 note) by 
section 1109 of NDAA FY 2000 and section 1114 of NDAA FY 2001, 
authorizes the Secretary of Defense to conduct personnel demonstration 
projects at DoD laboratories designated as Science and Technology 
Reinvention Laboratories (STRLs). The above-cited statute authorizes 
the Department to conduct demonstration projects to determine whether a 
specified change in personnel management policies or procedures would 
result in improved Federal personnel management.
    Section 1107 of the NDAA for FY 2008 requires the Secretary of 
Defense to take all necessary actions to fully implement and use the 
authorities provided under section 342(b) of the NDAA for FY 1995, as 
amended (10 U.S.C. 2358 note) by section 1109 of the NDAA for FY 2000 
and section 1114 of the NDAA for FY 2001, to include executing a 
process and implementation plan to fully utilize the authorities to 
enhance the performance of the missions of the laboratories. Further, 
subsection 1107(c) authorizes that any flexibility available to any 
demonstration laboratory shall be available for use at any other 
laboratory

[[Page 73249]]

as enumerated in subsection 9902(c)(2) of title 5, United States Code.
    This Federal Register notice (FRN):
    1. Serves as an amendment to add subsection 1107(c) authority to 
the STRL Personnel Management Demonstration Project final FRNs that 
were published prior to the date of this FRN;
    2. Serves as notice pursuant to subsection 1107(c) that the three 
STRLs listed in subsection 9902(c)(2) not having personnel 
demonstration projects at this time may adopt any of the flexibilities 
of the other laboratories listed in subsection 9902(c)(2);
    3. Provides a basic process to adopt flexibilities, make minor 
changes, and/or request Federal Register notices; and
    4. Serves as notice of the proposed adoption of a STRL Personnel 
Management Demonstration Project by two centers under the United States 
Army Research, Development and Engineering Command (RDECOM): Edgewood 
Chemical Biological Center (ECBC) and Natick Soldier Research, 
Development and Engineering Center (NSRDEC).

DATES: 1. The amendment to the listed demonstration project plans and 
the notice of the authority to adopt any 9902(c)(2) laboratory 
flexibilities by the non-demonstration project laboratories may be 
implemented beginning on the date of publication of this notice in the 
Federal Register; and implementation of the process will be through 
regulations issued by the Under Secretary of Defense for Personnel and 
Readiness.
    2. The proposed adoption of an existing STRL demonstration project 
by ECBC and NSRDEC may not be implemented until a 30-day comment period 
is provided, comments addressed, and a final Federal Register notice 
published. To be considered, written comments must be submitted on or 
before January 2, 2009.

ADDRESSES: Send comments on or before the comment due date by mail to 
Ms. Betty A. Duffield, CPMS-PSSC, Suite B-200, 1400 Key Boulevard, 
Arlington, VA 22209-5144; by fax to (703) 696-5462; or by e-mail to 
[email protected].

FOR FURTHER INFORMATION CONTACT:
    Department of the Army:
     Army Research Laboratory (ARL): Mr. Tom Bock, Program 
Manager, ARL Personnel Demonstration Project, AMSRD-ARL-O-HR, 2800 
Powder Mill Road, Adelphi, MD 20783-1197;
     Aviation and Missile Research, Development, and 
Engineering Center (AMRDEC): Dr. Steven P. D. Smith, Senior Technical 
Advisor to the Director, AMRDEC, 5400 Fowler Road, Redstone Arsenal, AL 
35898-5000;
     Communications-Electronics Research, Development, and 
Engineering Center (CERDEC): Ms. Desiree DiAngelo, CERDEC Personnel 
Demonstration Project Administrator, Myer Center, Building 2700, Room 
2C204, ATTN: AMSRD-CER-HRO, Fort Monmouth, NJ 07703-5209;
     Edgewood Chemical Biological Center (ECBC): Ms. Kim 
Hoffman, Management and Program Analyst, ECBC, Directorate of Program 
Integration, Workforce Management Office, Department of the Army, ATTN: 
AMSRD-ECB-PI-WM, 5183 Blackhawk Road, Building 3330, Aberdeen Proving 
Ground, MD 21010-5424;
     Engineer Research and Development Center (ERDC): Mr. 
Timothy D. Ables, Personnel Demonstration Project Manager, U.S. Army 
Engineer Research and Development Center, 3909 Halls Ferry Road, 
Vicksburg, MS 39180-6199;
     Medical Research and Materiel Command (MRMC): Ms. Linda 
Krout, Director, Civilian Personnel Advisory Center, Medical Research 
and Material Command, 810 Schreider Street, Suite 106, Fort Detrick, MD 
21702-5000; and
     Natick Soldier Research, Development and Engineering 
Center (NSRDEC): Ms. Karen K. Sullivan, Demonstration Project Manager, 
Natick Soldier Research, Development and Engineering Center, Kansas 
Street, (AMSRD-NSR-BO-W), Natick, MA 01760.
    Department of the Air Force:
     Air Force Research Laboratory (AFRL): Ms. Michelle 
Williams, Personnel Demonstration Project Manager, Air Force Research 
Laboratory, 1864 4th Street, Wright-Patterson Air Force Base, OH 45433-
5209.
    Department of the Navy:
     Office of Naval Research (ONR): Ms. Margaret Mitchell, 
Director, Human Resources Office, Office of Naval Research, 875 North 
Randolph Street, Code 01HR, Arlington, VA 22203;
     Naval Research Laboratory (NRL): Ms. Cathy Downing, 
Director, Strategic Workforce Planning, Naval Research Laboratory, 4555 
Overlook Ave., SW.,Washington, DC 20375-5320; and
     Naval Sea Systems Command (NAVSEA) Warfare Centers: Ms. 
Vicki Warner, Deputy Manager, NAVSEA Demonstration Program, Naval 
Surface Warfare Center Dahlgren Division, 17632 Dahlgren Road, Suite 
200, Dahlgren, VA 22448-5154.
    Department of Defense (DoD): Ms. Betty A. Duffield, CPMS-PSSC, 
Suite B-200, 1400 Key Boulevard, Arlington, VA 22209-5144.

SUPPLEMENTARY INFORMATION:

1. Background

    The STRL Personnel Management Demonstration Projects involve broad-
banded pay systems and simplified classification; pay for performance, 
including contribution-based pay; recruitment and staffing changes; and 
enhanced training and development including critical skills training, 
Voluntary Emeritus Corps, and sabbaticals.
    Final plans were published in the Federal Register for the 
following STRL Personnel Management Demonstration Projects within the 
Departments of the Army, Navy, and Air Force, as follows:
     Department of the Army: Army Research Laboratory (ARL)--63 
FR 10679, March 4, 1998; Aviation and Missile Research, Development, 
and Engineering Center (AMRDEC)--62 FR 34875, June 27, 1997; 
Communications-Electronics Research, Development, and Engineering 
Community (which consists of the Communications-Electronics Research, 
Development, and Engineering Center (CERDEC) and the Software 
Engineering Center (SEC))--66 FR 54872, October 30, 2001; Engineer 
Research and Development Center (ERDC)--63 FR 14579, March 25, 1998; 
and Medical Research and Materiel Command (MRMC)--63 FR 10439, March 3, 
1998;
     Department of the Navy: Naval Research Laboratory (NRL)--
64 FR 33970, June 24, 1999; and Naval Sea Systems Command (NAVSEA) 
Warfare Centers--62 FR 64050, December 3, 1997; and
     Department of the Air Force: Air Force Research Laboratory 
(AFRL)--61 FR 60339, November 27, 1996.
     Amendments and/or corrections to final plans were published in the 
Federal Register as follows:
     Department of the Army: Army Research Laboratory (ARL)--63 
FR 13458, March 19, 1998; and 65 FR 3500, January 21, 2000; Aviation 
and Missile Research, Development, and Engineering Center (AMRDEC)--64 
FR 11074, March 8, 1999; 64 FR 12216, March 11, 1999; 65 FR 53142, 
August 31, 2000; and 67 FR 5716, February 6, 2002; Engineer Research 
and Development Center (ERDC)--63 FR 55770, October 16, 1998; 64 FR 
12216, March 11, 1999; 65 FR 32135, May 22, 2000; and 67 FR 5712, 
February 6, 2002; and Medical Research and Materiel Command (MRMC)--64 
FR 30378, June 7, 1999;
     Department of the Navy: Naval Research Laboratory (NRL)--
No

[[Page 73250]]

amendments were published; and Naval Sea Systems Command (NAVSEA) 
Warfare Centers--64 FR 39179, July 21, 1999; and 65 FR 52453, August 
29, 2000; and
     Department of the Air Force: Air Force Research Laboratory 
(AFRL)--65 FR 3498, January 21, 2000; and 70 FR 60495, October 18, 
2005.
    Section 342(b) of the NDAA for FY 1995 provided the Secretary of 
Defense the authority, with the approval of the Director of the Office 
of Personnel Management (OPM), to carry out personnel demonstration 
projects and modified standard demonstration project authorities (5 
U.S.C. section 4703). Section 1109 of the NDAA for FY 2000 amended 
section 342(b) to provide STRLs exemption from certain workforce 
management restrictions. Section 1114 of the NDAA for FY 2001 amended 
section 342(b) to authorize the Secretary of Defense to exercise OPM 
demonstration project authorities under 5 U.S.C. section 4703 for the 
STRLs. Section 1107 of the NDAA for FY 2008 required full 
implementation of section 342(b) of the NDAA for FY 1995 as amended and 
authorized that any flexibility available to any demonstration 
laboratory shall be available for use at any other laboratory as 
enumerated in subsection 9902(c)(2) of title 5, U.S.C. The laboratories 
listed in subsection 9902(c)(2) are:
    Department of the Army:
     Army Research Laboratory (ARL);
     Aviation and Missile Research, Development, and 
Engineering Center (AMRDEC);
     Communications-Electronics Research, Development, and 
Engineering Command (reorganization changed designation to 
Communications-Electronics Research, Development, and Engineering 
Center (CERDEC));
     Engineer Research and Development Command (name changed to 
the Engineer Research and Development Center (ERDC));
     Medical Research and Materiel Command (MRMC);
     Soldier and Biological Chemical Command (reorganization 
changed designation to Natick Soldier Research, Development and 
Engineering Center (NSRDEC) and Edgewood Chemical Biological Center 
(ECBC) under the United States Army Research, Development and 
Engineering Command).
    Department of the Navy:
     Naval Research Laboratory (NRL);
     Naval Sea Systems Command (NAVSEA) Warfare Centers; and
     Office of Naval Research.
    Department of the Air Force:
     Air Force Research Laboratory (AFRL).

 2. Overview

    Because the various STRLs implemented their personnel demonstration 
projects at different times between 1997 and 2002, the later 
demonstration projects contain initiatives that the earlier ones do 
not. For example, the earliest STRL personnel management demonstration 
project (AFRL) contains no hiring flexibilities, while later STRL 
personnel demonstration projects include several hiring and appointment 
flexibilities. In this example, subsection 1107(c) of the NDAA for FY 
2008 provides AFRL the option to implement any of the hiring and 
appointment flexibilities that were subsequently approved for use in 
another STRL personnel demonstration project. It also provides the 
option for the three STRLs listed in subsection 9902(c)(2) not having 
personnel demonstration projects to adopt the flexibilities, including 
adopting an entire personnel management demonstration project, of the 
other laboratories listed in 9902(c)(2). In addition, subsections 
1107(a) and 1107(b) of the NDAA for FY 2008 require that all necessary 
actions be taken including executing a process and implementation plan 
to fully implement and use the personnel demonstration project 
authorities provided to the Secretary of Defense to enhance the 
performance of the missions of the laboratories. This Federal Register 
notice is one of the steps necessary to execute the required process.

I. Executive Summary

    The STRL personnel management demonstration projects are generally 
similar in nature to the Department of the Navy's China Lake personnel 
demonstration project. The STRL personnel demonstration projects were 
built upon the concepts of broad-banded pay systems and simplified 
classification; pay for performance, including contribution-based pay; 
recruitment and staffing changes; enhanced training and development 
including critical skills training; a Voluntary Emeritus Corps; and 
sabbaticals.

II. Introduction

A. Purpose

    STRL personnel management demonstration projects provide managers, 
at the lowest practical level, the personnel authorities and 
flexibilities needed to achieve a quality laboratory and quality 
products. The purposes of this FRN are to:
    1. Serve as an amendment to add subsection 1107(c) authority to the 
STRL Personnel Management Demonstration Project final FRNs listed 
herein at Section 1., Background, Supplementary Information, that were 
published prior to the date of this FRN;
    2. Serve as notice pursuant to subsection 1107(c) that the three 
STRLs listed in subsection 9902(c)(2) not having personnel 
demonstration projects at this time (Office of Naval Research and two 
Centers under the United States Army Research, Development and 
Engineering Command (RDECOM): Edgewood Chemical Biological Center 
(ECBC) and Natick Soldier Research, Development and Engineering Center 
(NSRDEC), may adopt any of the flexibilities of the other laboratories 
listed in subsection 9902(c)(2);
    3. Provide a basic process to adopt flexibilities, make minor 
changes to a demonstration project plan, and request Federal Register 
notices as part of the process to fully implement and use the 
authorities provided under section 342(b) of the NDAA for FY 1995, as 
amended; and
    4. Serve as notice of the proposed adoption without changes of the 
STRL Personnel Management Demonstration project designed by the U.S. 
Army Communications-Electronics Command, Research, Development, and 
Engineering organizations (reorganization changed designation to the 
United States Army Communications-Electronics Research, Development and 
Engineering Center (CERDEC)) by ECBC and NSRDEC except for the name of 
organizations; organizational and work force information; approval 
authorities; technical modifications to conform to changes in the law 
and governing OPM regulations, which are not being waived, that were 
effected after the publication of the CERDEC personnel demonstration 
project plan; and changes in response to comments received during the 
30-day comment period.

B. Employee Notification and Collective Bargaining Requirements

    ECBC and NSRDEC employees affected by the proposed adoption of the 
CERDEC Personnel Management Demonstration Project will be provided a 
copy of this notice. Prior to implementing any discretionary 
flexibility adopted pursuant to subsection 1107(c) of the NDAA for FY 
2008, participating organizations must fulfill any collective 
bargaining obligations to unions that represent

[[Page 73251]]

employees covered by the STRL personnel demonstration project involved.

III. Personnel System Changes

    A. The following STRL demonstration project plans are hereby 
amended to add that each of the STRLs enumerated in subsection 
9902(c)(2) may use any flexibility granted to these STRLs by their 
final demonstration project plans, including the amendments thereto, 
published as listed in Section 1, Background, Supplemental Information, 
in this Federal Register notice.
Department of the Army
     Army Research Laboratory (ARL);
     Aviation and Missile Research, Development, and 
Engineering Center (AMRDEC);
     Communications-Electronics Research, Development, and 
Engineering Center (CERDEC);
     Engineer Research and Development Center (ERDC); and
     Medical Research and Materiel Command (MRMC).
Department of the Navy
     Naval Research Laboratory (NRL); and
     Naval Sea Systems Command (NAVSEA) Warfare Centers.
Department of the Air Force
     Air Force Research Laboratory (AFRL).
    Future STRL final FRNs will contain the statement, ``Flexibilities 
published in this Federal Register shall be available for use by all 
STRLs enumerated in subsection 9902(c)(2) of title 5, U.S.C., if they 
wish to adopt them.''
    B. The three STRLs listed in subsection 9902(c)(2) not having 
personnel demonstration projects at this time (Office of Naval 
Research, ECBC and NSRDEC) may adopt the flexibilities of the other 
laboratories listed in subsection 9902(c)(2) using the process 
described herein under III. Personnel System Changes, paragraph D.
    C. This Federal Register notice also serves as notice of the 
proposed adoption of an existing STRL Personnel Management 
Demonstration Project by two Centers under the United States Army 
Research, Development and Engineering Command (RDECOM): Edgewood 
Chemical Biological Center (ECBC) and Natick Soldier Research, 
Development and Engineering Center (NSRDEC).
     The ECBC includes the ECBC organization at the Edgewood 
Area of Aberdeen Proving Ground, and employees matrixed to the Joint 
Program Executive Office for Chemical/Biological Defense (JPEO-CBD), as 
well as ECBC employees with duty stations at other sites. This 
demonstration project will cover approximately 1,100 ECBC civilian 
employees under title 5, United States Code.
     The NSRDEC includes the NSRDEC organization at the Natick 
Soldier Systems Center site, NSRDEC employees matrixed from NSRDEC to 
Program/Project/Product Management Offices (e.g., PM-Force Sustainment 
Systems, and PM-Clothing and Individual Equipment) as well as NSRDEC 
employees with duty stations at other sites. This demonstration project 
is intended to cover approximately 700 NSRDEC civilian employees under 
title 5, United States Code.
    ECBC and NSRDEC propose to adopt without changes the STRL Personnel 
Management Demonstration project designed by the United States Army 
Communications-Electronics Command, Research, Development and 
Engineering organizations (now known as the United States Army 
Communications-Electronics Research, Development and Engineering Center 
(CERDEC)) published in 66 FR 54872, October 30, 2001, except for the 
name of organizations; organizational and work force information; 
approval authorities; technical modifications to conform to changes in 
the law and governing OPM regulations, which are not being waived, that 
were effected after the publication of the CERDEC personnel 
demonstration project plan; and changes in response to comments 
received during the 30-day comment period.
     The adoption of the CERDEC demonstration project by ECBC and 
NSRDEC may not be implemented until the requirements in this notice 
have been fulfilled. This includes a 30-day comment period, a review 
and discussion of comments in the supplemental information section of 
their final FRNs, and publishing the final FRNs. In addition, ECBC and 
NSRDEC will need to prepare and execute an implementation plan that 
includes a timeline, a plan to socialize the proposal through such 
means as letters to employees, briefings, town hall meetings, Web 
sites, and newsletters; a communication plan; a training plan; and 
plans to meet collective bargaining obligations. The implementation 
plan shall be provided to the Deputy Under Secretary of Defense 
(Civilian Personnel Policy) (DUSD (CPP)) for review and comment. ECBC 
and NSRDEC internal operating policies and procedures would be 
described and published in their directives systems with copies to the 
DUSD (CPP).
    D. Section 1107 of the NDAA for FY 2008 requires a process for full 
implementation of the demonstration project authorities provided to the 
Secretary of Defense. The basic process for STRLs to use to adopt 
flexibilities, make minor changes, or request a FRN is outlined below. 
Additional details to support implementation of the DoD process will be 
published through the DoD directives system.
     The process begins when a STRL makes a decision to adopt a 
flexibility from a demonstration laboratory listed in subsection 
9902(c)(2). Flexibilities are defined as those features described in 
final STRL FRNs; amendments thereto published in FRNs; minor changes 
made within the authorities of a demonstration project plan, documented 
in laboratory internal issuances and disseminated to employees; and 
official laboratory implementing issuances that have been distributed. 
Once the STRL has developed their plan and coordinated the plan through 
their various stakeholders, a notification is sent to the DUSD (CPP) by 
memorandum with simultaneous copies to DUSD (Laboratories and Basic 
Sciences) (LABS) under the Under Secretary of Defense for Acquisition, 
Technology and Logistics, and their respective Component point of 
contact. When a laboratory's request is received, the DUSD (CPP) will 
request from both DUSD (LABS) and the Component their concurrence, 
comments, etc. before making a final decision on the request. Notices 
must include the description of flexibilities being adopted; the cite 
where the flexibility is found; reason for the change; results 
expected; evaluation methodology; information technology implications 
and cost; projected date of implementation; communication plan; and, as 
appropriate, bargaining unit status, draft FRN, and any other pertinent 
information needed to adhere to the tenets of section 4703 of title 5 
U.S.C.
     The DUSD (CPP) staff will review each notification 
individually for adherence to process; consistency with existing FRN 
provisions; completeness and accuracy of waivers; impact on Department-
wide initiatives, information technology, cost, etc.; consider the 
concurrence and any comments from the DUSD (LABS) and the Component; 
provide comments to the STRL; assist, when needed, to finalize 
notification; and provide concurrence with adoption following 
resolution of any issues. The DUSD (CPP) is responsible for ensuring 
that

[[Page 73252]]

the notice includes only existing flexibilities, the proposed 
flexibilities are not internally contradictory or inconsistent, and 
timing does not adversely affect other Department initiatives. Each 
laboratory will document in its own implementing issuances its internal 
procedures for the use of any flexibility adopted from another 
demonstration laboratory and disseminate the information to employees 
and other interested parties.
     Demonstration laboratories are still required to document 
changes to existing FRNs not under the auspices of subsection 1107(c) 
and proposed new flexibilities. Normally, changes not covered by 
subsection 1107(c) to existing FRNs or new initiatives require 
publication in the Federal Register. A draft FRN is forwarded to the 
DUSD (CPP) for review. Simultaneously copies are to be sent to the DUSD 
(LABS) and the Component point of contact. When a draft FRN is 
received, the DUSD (CPP) will request from both DUSD (LABS) and the 
Component their concurrence, comments, etc. before making a 
recommendation on the FRN. The DUSD (CPP) forwards the recommendation 
for approval/disapproval of the FRN to the Under Secretary of Defense 
for Personnel and Readiness (USD (P&R)). The USD (P&R) retains 
approval/disapproval authority for new initiatives or change requests 
not covered by subsection 1107(c). Minor modifications are possible 
without a FRN if they can be made within the demonstration project's 
existing authorities and if appropriate notice is given to employees 
and other interested parties. Each laboratory will document in its own 
implementing instructions its minor modifications to its demonstration 
project plan and any associated revised internal procedures. A copy of 
the implementing instructions will be provided the DUSD (CPP), DUSD 
(LABS), and Component point of contact.

    Dated: November 25, 2008.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. E8-28591 Filed 12-1-08; 8:45 am]
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