[Federal Register Volume 82, Number 131 (Tuesday, July 11, 2017)]
[Notices]
[Pages 32056-32121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14251]



[[Page 32055]]

Vol. 82

Tuesday,

No. 131

July 11, 2017

Part II





Department of Defense





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

  Federal Register / Vol. 82 , No. 131 / Tuesday, July 11, 2017 / 
Notices  

[[Page 32056]]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DOD-2017-OS-0031]


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

AGENCY: Office of the Deputy Assistant Secretary of Defense (Civilian 
Personnel Policy) (DASD (CPP)), DoD.

ACTION: Proposed notice of consolidation, modification, and 
republication as amended of a Personnel Demonstration Project Plan.

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SUMMARY: The DoD, 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 
among those supporting personnel assigned to work directly with it. The 
purpose of this notice is to consolidate the original AcqDemo project 
plan and, as appropriate, the still relevant interventions described in 
the six subsequent amendments and one notice of intent as listed in 
Appendix A into a single document for better understanding and ease of 
use; record the modifications made to existing demonstration project 
initiatives as a result of experience gained from their use; describe 
additional personnel management initiatives undertaken to generate 
further improvement of and increased efficiencies in support for the 
DoD acquisition workforce; and republish the AcqDemo Project Plan as 
amended and as updated for corrections, deletions, additions, and 
clarifications.

DATES: DoD will consider written comments if received no later than 
August 10, 2017.

ADDRESSES: You may submit comments, identified by docket number and 
title, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Department of Defense, Office of the Deputy Chief 
Management Officer, Directorate for Oversight and Compliance, 4800 Mark 
Center Drive, Mailbox #24, Suite 08D09B, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency 
name, docket number and title for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
Internet at http://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: DoD: Scott Wortman, Program Manager, 
Civilian Acquisition Workforce Personnel Demonstration Project, 9820 
Belvoir Road, Ft. Belvoir, VA 22060, 703-805-5050; DoD: Ms. Megan 
Maciejewski, Defense Civilian Personnel Advisory Service, Human 
Resources Operational Programs and Advisory Services, Staffing Policy 
Division, 4800 Mark Center Drive, Suite 05F16, Alexandria, VA 22350-
1100, 571-372-1538.

SUPPLEMENTARY INFORMATION:

A. Background

    The AcqDemo Project was established under the authority of the 
Secretary of Defense, with the approval of OPM. Subject to the 
authority, direction, and control of the Secretary, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics (USD(AT&L)) 
carries out the powers, functions, and duties of the Secretary 
concerning the DoD acquisition workforce (AWF). Title 10 United States 
Code (U.S.C.) Chapter 87 describes general authorities and 
responsibilities, defense acquisition positions, Acquisition Corps, 
education and training, and general management provisions applicable to 
the Defense AWF. The purpose of the AcqDemo, as stated in 10 U.S.C. 
Chapter 87, Section 1762, is ``to determine the feasibility or 
desirability of one or more proposals for improving the personnel 
management policies or procedures that apply with respect to the 
acquisition workforce of the [DoD] and supporting personnel assigned to 
work directly with the acquisition workforce.''
    This demonstration project was originally authorized under Section 
4308 of the National Defense Authorization Act (NDAA) for Fiscal Year 
(FY) 1996 (Pub. L. 104-106, 110 Stat. 669; 10 United States Code 
Annotated (U.S.C.A.) 1701 note), as amended by section 845 of NDAA for 
FY 1998 (Pub. L. 105-85, 111 Stat.1845); Section 813 of NDAA for FY 
2003 (Pub. L. 107-314, 116 Stat. 2609); and Section 1112 of NDAA for FY 
2004 (Pub. L. 108-136, 117 Stat. 1634). The NDAA for FY 2004 authorized 
the National Security Personnel System (NSPS) and most AcqDemo 
employees converted to the NSPS in 2006. Section 1113 of NDAA for FY 
2010 (Pub. L. 111-84, 123 Stat. 2190) repealed the NSPS and directed 
conversion of all NSPS employees to their previous pay system by 
January 1, 2012. All NSPS employees formerly in AcqDemo were 
transitioned back to AcqDemo during the month of May 2011. On January 
7, 2011, the original demonstration project authority was repealed and 
codified at 10 U.S.C. 1762 pursuant to Section 872 of the Ike Skelton 
NDAA for FY 2011 (Pub. L. 111-383, 124 Stat. 4300, 4302). With the 
enactment of Section 872 of the Ike Skelton NDAA for Fiscal Year (FY) 
2011, Public Law 111-383, Congress extended the authority for AcqDemo 
until September 30, 2017, and increased the total number of persons who 
may participate in the project from 95,000 to 120,000. Congress further 
extended the authority for AcqDemo to December 31, 2020, in Section 846 
of NDAA for FY 2016 (Pub. L. 114-92). Through Section 867 of NDAA for 
FY 2017 (Pub. L. 114-328), Congress provided that the Secretary of 
Defense shall exercise the authorities granted to the OPM under 5 
U.S.C. 4703 for purposes of the demonstration project.
    OPM approved and published the final project plan for the AcqDemo 
on January 8, 1999, in 64 Federal Register (FR) 1426-1492. Since that 
time, six amendments have been approved and published, and one notice 
of intent to amend published by OPM. These are listed in Appendix A.

B. Overview

    The project was initially designed in the 1997-1999 timeframe by a 
Process Action Team under the authority of then-Under Secretary of 
Defense for Acquisition and Technology with the participation of and 
review by DoD and the OPM. The purpose of the project is to enhance the 
quality, professionalism, and management of the DoD acquisition 
workforce through improvements in the efficiency and effectiveness of 
the human resources management system. The project interventions strive 
to support DoD's efforts to ``create a professional, agile, and 
motivated workforce that consistently makes smart business decisions, 
acts in an ethical manner, and delivers timely and affordable 
capabilities to the warfighter.'' \1\
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    \1\ DoD Directive 5000.52, January 12, 2005, Subject: Defense 
Acquisition, Technology, and Logistics Workforce Education, 
Training, and Career Development Program.
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    The original AcqDemo Project Plan included streamlined hiring and 
appointment authorities; a Voluntary Emeritus Program; broadbanding; 
simplified classification; combined classification and appraisal 
criteria into six factors; revised reduction-in-force procedures; a 
contribution-based compensation and appraisal system; academic degree 
and certification

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training; and sabbaticals. A number of new initiatives have been added 
and clarifications made to this updated project plan based on 
experience gained with the original processes and procedures since 
implementation in January 1999; feedback from participants at all 
AcqDemo organizational levels; changes in title 5 U.S.C. and title 5 
Code of Federal Regulations (CFR); changes in legislative language 
impacting AcqDemo employee/organization coverage and project 
evaluation; environmental conditions such as a weak economy, government 
downsizing, and sequestration; and concerns with the relationship 
between position management, Contribution-based Compensation and 
Appraisal System (CCAS) scoring; compensation management; and 
appropriate pay. The new or modified initiatives and/or topics include 
target broadband level; reduction of the six classification and 
appraisal factors to three factors; direct hire authority; modified 
expedited hiring authority; rule of many; expanded supervisory 
probationary period; expanded detail and temporary promotion authority; 
revised reduction-in-force procedures basing order of retention 
primarily on individual employee performance; compensation management; 
clarification of various pay setting procedures for conversions, new 
hires, employee movement within AcqDemo, and employees voluntarily 
joining AcqDemo; supervisory and team leader cash differentials; 
accelerated compensation for developmental positions; student intern 
relocation incentive; overall assessment of the quality of performance; 
CCAS very high score methodology; and modified contribution improvement 
plan procedures. The text of the original FRN and its amendments have 
been realigned and rewritten, as necessary, to improve clarity, 
organize by topic, remove duplication, eliminate outdated and cancelled 
items, and include revisions to existing flexibilities and descriptions 
of new interventions. Consequently, the document needs to be read in 
its entirety to obtain the full scope of the modernized demonstration 
project.

C. Evaluation Results

    Since its implementation in early 1999, the AcqDemo interventions 
have confirmed that a human resources system tailored to the mission 
and needs of the AWF increases workforce satisfaction with the 
personnel management system, while providing quality acquisition 
products to DoD customers as evidenced by the 2006 AcqDemo Summative 
Evaluation \2\ and periodic AcqDemo employee attitude surveys.
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    \2\ Department of Defense (DoD) Civilian Acquisition Workforce 
Personnel Demonstration Project (AcqDemo), Summative Evaluation 
Report, June 2006, prepared by the AcqDemo Project Office, 2001 N. 
Beauregard Street, Suite 210, Alexandria, Virginia 22311.
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    The June 2006 Summative Evaluation Report stated: ``AcqDemo had a 
positive impact on overall workforce quality by enabling managers to 
compete with the private sector for the best talent available and make 
timely job offers to potential employees. When AcqDemo procedures were 
fully implemented, hiring timeliness was significantly improved. 
AcqDemo succeeded in retaining `high contributors' and increasing the 
separation rates of `low contributors' without damaging employees' 
overall sense of fairness. AcqDemo resulted in high levels of customer 
satisfaction, and both employees and supervisors realized the benefits 
of AcqDemo flexibilities in responding to customer requirements 
quickly. Finally, a variety of data indicated that there was a positive 
shift in workforce satisfaction with the AcqDemo personnel management 
system.''
    Since the return of employees from NSPS in May 2011, there 
continues to be strong evidence that the initiatives implemented under 
the AcqDemo are effective:
    (1) Component acquisition leaders' feedback on effectiveness of 
AcqDemo programs on recruitment and retention has been positive.
    (2) Senior Leader interviews were positive on the outcomes of 
programs but suggested processes may need to be tweaked, e.g., two 
recommended changes were (a) to decrease the number of classification 
and appraisal factors from six factors to three factors to further 
simplify position classification and streamline the CCAS appraisal 
process, and (b) add a very high score scheme to each of the three 
factors for contributions above the maximum score for each career path 
to provide more gradation and increase flexibility for assessment of 
different levels of contribution. Following receipt of the Senior 
Leader feedback, the workforce was polled on a draft proposal for three 
factors in 2014. Over 56% of the workforce was in favor of converting 
to the more concise language recommended by the Senior Leaders. 
Additionally, overwhelming support on the three-factor format was 
received during follow-on Senior Leader Interviews that were conducted 
as well as numerous requests for a very high score contribution 
appraisal structure for each of the factors as initially suggested. 
Therefore, the three new factors, each with their very high score 
scheme, are included in the updated AcqDemo Project Plan described in 
this FRN.
    (3) Additional organizations are seeking to join AcqDemo.
    (4) Analysis \3\ provided evidence that people who entered the 
acquisition workforce and were covered by an AcqDemo pay plan (or any 
demonstration pay plan) were retained longer compared to those in the 
General Schedule (GS) plan. Retention was 24 percent higher for the 
AcqDemo pay plan than for the GS plan.
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    \3\ RAND Corporation, Retention and Promotion of High-Quality 
Civil Service Workers in the Department of Defense Acquisition 
Workforce, by Christopher Guo, Philip Hall-Partyka, Susan M. Gates; 
Copyright 2014; Chapter 4, Effects of Acquisition Demonstration Pay 
Plan on Retention, page 34, 1st partial paragraph; and Conclusion, 
page 36, 1st paragraph.
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    (5) Results from the 2015 OPM Federal Employee Viewpoint Survey 
(FEVS) indicated that 87% of the 2015 AcqDemo FEVS responses were 
better than the 2014 AcqDemo FEVS responses.
    (6) Interview and survey data suggest that many aspects of AcqDemo 
are positively perceived, i.e., supervisory perceptions regarding the 
ability to hire people as needed and to reassign or reclassify 
employees in response to changing mission needs.
    (7) Survey respondents reported being more optimistic about 
opportunities for promotion and were more likely to believe that their 
organization is retaining the highest-performing employees among their 
peers in the organizations selected for comparison.
    (8) A 2016 independent research report \4\ indicated that unionized 
employees have fared well in AcqDemo as compared to unionized employees 
in the GS system. AcqDemo provided higher starting salaries, paid 
higher salaries overall, and offered a more rapid increase in salaries. 
The annualized basic pay was $700 to $1,400 higher for bargaining union 
members compared to their GS counterparts. Unionized employees were 
more likely to receive promotions than nonunionized employees, while 
within the GS comparison group the reverse occurred. The four-year 
retention rate for AcqDemo unionized employees was 80.3 percent 
compared

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to a corresponding rate of 78.5 percent for the weighted GS control 
group.
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    \4\ RAND Corporation, 2016 Assessment of the Civilian 
Acquisition Workforce Personnel Demonstration Project, by Jennifer 
Lamping Lewis, Laura Werber, Cameron Wright, Irina Danescu, Jessica 
Hwang, Lindsay Daugherty; Copyright 2017; Report Number RR1783.
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    (9) The 2016 OPM FEVS Employee Engagement Index questions, which 
best exemplify ``an employee's sense of purpose,'' and the New 
Inclusive Intelligence (IQ) Index questions, which ``center on 
behaviors that help create an inclusive environment,'' show continued 
year after year improvement from 2014 through 2016 and consistently 
higher positive responses than the DoD and overall Federal workforce 
across all subcomponents. The top three AcqDemo 2016 positive items 
reflect sense of pride in work and are shown below with their 
respective percentage of positive responses:
    (a) When needed I am willing to put in the extra effort to get a 
job done. (95.2%)
    (b) Pay raises depend on how well employees perform their jobs. 
(39.8%)
    (c) How satisfied are you with your opportunity to get a better job 
in your organization? (37.9%)
    This information is a testament to the success of AcqDemo as a 
valuable human resources management tool in the efforts of the 
USD(AT&L) to emphasize and achieve broader and stronger workforce 
professional and technical qualifications, abilities, and capabilities 
for all sixteen DoD acquisition career fields. With the extension of 
the AcqDemo authority until December 31, 2020, the Department now has 
an additional opportunity to better adjust AcqDemo to the emergent 
qualifications associated with the myriad, complex defense acquisition 
situations with timely workforce development and more efficient, agile, 
and effective processes and procedures. New as well as modified 
flexibilities in human resources management activities can be tested 
and adjusted for maximum effectiveness in support of the USD(AT&L) 
``principle that continuous improvement is the best approach to 
improving the performance of the defense acquisition enterprise.'' \5\
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    \5\ Better Buying Power 3.0, White Paper, Office of the Under 
Secretary of Defense Acquisition, Technology and Logistics, 
Honorable Frank Kendall, 19 September 2014.
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D. Notification Responsibilities

    The DoD AcqDemo Program Office will post this amendment on the 
Program Office's Web site at http://AcqDemo.hci.mil. In addition, 
Participating Organizations will be requested to notify employees, 
appropriate union officials, and other stakeholders of this FRN as well 
as their communication vehicles, e.g., Web site; letters to employees 
and union officials; consultation and negotiation with union officials; 
town halls; etc.; and the DoD Program Office Web site and information 
contained therein.

    Dated: June 30, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

Table of Contents

I. Introduction
    A. Executive Summary
    B. Governance
    1. Management Oversight
    2. Personnel Policy Boards
    3. AcqDemo Project Plan Revisions
    4. AcqDemo Internal Guidance
    5. Legal Authority
    C. Organization and Team Participation
    1. Scope of Acquisition Organizations
    2. Request To Participate in AcqDemo
    3. Calls for Additional Participation
    4. Eligibility Requirements
    5. Application Process
    D. Eligible Organizations
    E. Workforce Coverage
    1. Covered Workforce
    2. Current Participating Employees
    F. Bargaining Requirements
II. Personnel System Interventions
    A. Classification
    1. Broadbanding
    2. Occupational Series, Titles, and Classification Standards
    3. Classification Level and Appraisal Factors
    4. Classification Authority
    5. Position Requirements Document
    6. Fair Labor Standards Act
    7. Maximum Broadband Level
    8. Classification Appeals
    B. Recruitment and Staffing
    1. Appointment Authorities
    a. Competitive and Excepted Appointing Authorities
    b. Modified Term Appointment Option
    2. Targeted Recruitment and Outreach
    3. Qualifications and Assessments
    4. External Hiring Authorities
    a. General Principles
    b. Direct Hire Appointments for the Business and Technical 
Management Professional Career Path
    c. Veteran Direct Hire Appointments for the Business and 
Technical Management Professional and Technical Management Career 
Paths
    d. Acquisition Student Intern Appointments
    e. Scholastic Achievement Appointment
    f. Simplified Hiring Processes
    5. Expanded Initial Probationary Period
    6. Staffing Within AcqDemo
    a. Expanded Supervisory and/or Managerial Probationary Periods
    b. Internal AcqDemo Assignment Process
    c. Expanded Detail and Temporary Promotion Authority
    d. Exceptions to Competition
    e. Reduction in Force
    C. Pay Administration
    1. Introduction
    2. Compensation Strategy
    3. Aggregate Limitation on Basic Pay
    4. Special Rates
    5. Promotions
    6. Retained Pay
    7. General Schedule (GS) Annual Base Pay Increase
    8. Locality Pay
    9. Hires From Outside the AcqDemo
    10. Internal AcqDemo Employee Movements
    11. Accelerated Compensation for Developmental Positions
    12. Supervisory and Team Leader Cash Differentials
    13. Highest Previous Rate
    14. Recruitment, Relocation, and Retention Incentives
    15. Awards
    D. Contribution-Based Compensation and Appraisal System
    1. Overview
    2. CCAS Appraisal Process
    3. Integrated Pay Schedule
    4. Compensation Adjustments
    5. Contribution Improvement Plan (CIP)
    6. CCAS Grievance Procedures
    E. Employee Development
    1. Academic Degree and Certificate Training
    2. Sabbaticals
    3. Student Intern Relocation Incentive
    F. Movement Into and From AcqDemo
    1. Management-Directed Conversion into the Demonstration Project
    2. Non-AcqDemo Federal Employee Voluntarily Joins AcqDemo
    3. Movement From the Demonstration Project
    G. Training for AcqDemo
    1. Introduction
    2. Roles and Responsibilities
    3. Conversion Training
III. Evaluation Plan
    A. Internal
    B. External
    C. Purpose
IV. Project Duration
V. Demonstration Project Costs
VI. Automation Support
VII. Required Waivers to Law and Regulations
A. General
B. Waivers to Title 5, U.S.C.
C. Waivers to Title 5, CFR
Appendix A. History of Legislative Provisions and Federal Register 
Notices DoD Civilian Acquisition Workforce Personnel Management 
Demonstration Project
Appendix B. Tables of Eligible Organizations
Appendix C. Series Included in the DoD Acquisition Workforce 
Personnel Demonstration Project
Appendix D. Definitions of Career Paths and Corresponding Broadband 
Levels
Appendix E. Classification Level and Appraisal Factors
Appendix F. Intervention Impact Evaluation Model
Appendix G. AcqDemo Sample Master Retention List (RIF Effective Date 
July 2017), Competitve Area: Local Commuting Area; Fort Husky, 
Virgina; Supply Directorate; Business Management and Technical 
Management Career Path (NH)

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I. Introduction

A. Executive Summary

    AcqDemo is an acquisition-based alternative human resource 
management pay and personnel system that provides managers and 
organizations with increased flexibilities in recruitment, staffing, 
classification, performance management, compensation, and employee 
development. The purpose of the project is to enhance the quality, 
professionalism, and management of the DoD AWF through improvements in 
the efficiency, effectiveness, and agility of the human resources 
management system. This project not only provides a system that 
retains, recognizes, and rewards employees for their contributions, but 
also supports their personal and professional growth as acquisition 
specialists and professionals. In addition, this demonstration project 
provides managers, at the lowest practical level, the authority, 
control, and flexibility they need to achieve effective workforce 
management, quality acquisition processes, and superior products.

B. Governance

1. Management Oversight
    The AcqDemo Project was established under the authority of the 
Secretary of Defense (SECDEF), with the approval of OPM. Subject to the 
authority, direction, and control of the SECDEF, the USD(AT&L) carries 
out the powers, functions, and duties of the SECDEF concerning the DoD 
AWF. The USD(AT&L) is authorized to establish policies and procedures, 
in coordination with the Under Secretary of Defense for Personnel and 
Readiness (USD(P&R)), for the effective management of the acquisition, 
technology, and logistics workforce in the DoD, which includes 
management and oversight of the DoD AcqDemo. To assist in this 
endeavor, the USD(AT&L) chartered the DoD Civilian Acquisition 
Workforce Personnel Demonstration Project Program Office in September 
1999. The Office of Human Capital Initiatives was chartered by the 
USD(AT&L) in November 2015, and the Director designated as the senior 
official responsible for the AcqDemo program. The Director, Human 
Capital Initiatives, is responsible for oversight, policy, direction, 
design and centralized management of the AcqDemo. Subject to the 
authority, direction, and control of the Director, Human Capital 
Initiatives, the AcqDemo Program Manager is responsible for the 
centralized management of the DoD AcqDemo Project. The Program Manager 
also has authority to establish and chair an Executive Council 
comprised of a representative from each DoD Component, Agency, and 
Field Activity with organizations and/or teams participating in the 
AcqDemo Project (hereafter referred to as Participating Organizations) 
plus USD(P&R) and/or USD(AT&L) representatives serving in an advisory 
role as appropriate. Each Participating Organization has authority to 
manage and oversee AcqDemo implementation and operation within 
overarching USD(AT&L), HCI, and/or AcqDemo Program Office policy and 
guidance.
2. Personnel Policy Boards
    It is envisioned that each Participating Organization, to include 
subordinate AcqDemo participating organizations and/or teams, shall 
establish a Personnel Policy Board (PPB). The PPB is the body to 
manage, evaluate, and make policy and procedural changes for its 
respective organization within the parameters of the AcqDemo Project 
Plan published in the Federal Register notice 64 FR 1426-1492, DoD 
AcqDemo Program Office guidance, and Department of Defense Instructions 
(DoDIs). The Executive Director, members, and staff of the Board are 
designated by the Head of the Participating Organization. Should any 
Participating Organization elect not to establish a PPB, the charter of 
an existing group within the respective organization must be modified 
to include the duties detailed in Section I.B.2(a) through (i). In 
either case, the Board is tasked, at a minimum, with the following:
    (a) Overseeing the civilian pay budget;
    (b) Addressing issues associated with two or more pay systems 
(e.g., AcqDemo, GS, and other pay banded systems);
    (c) Determining the composition of the CCAS pay pool in accordance 
with the established guidelines and statutory constraints;
    (d) Reviewing operation of the organization's CCAS pay pools;
    (e) Providing guidance to pay pool managers;
    (f) Administering funds to CCAS pay pool managers;
    (g) Reviewing hiring and promotion salaries;
    (h) Monitoring award pool distribution by organization and 
acquisition workforce (AWF) employees vs. non-AWF employees; and
    (i) Assessing the need for and making changes to local 
demonstration project procedures and policies when needed to further 
define specific interventions to ensure standard application across the 
participating AcqDemo organization(s) and/or team(s).
3. AcqDemo Project Plan Revisions
    Modifications to the AcqDemo Project Plan must be made from time to 
time as experience is gained, results are analyzed, and conclusions are 
reached on how the various flexibilities are working individually and 
within the overall project. Minor policy and procedural modifications 
of this published AcqDemo project plan within already existing waivers 
may be made by the Director, Human Capital Initiatives, with delegation 
to the Program Manager, and published in internal issuances and AcqDemo 
Memorandums and/or at http://www.acqdemo.hci.mil to inform stakeholders 
such as USD(P&R); AcqDemo Executive Council; Defense Civilian Personnel 
Advisory Service; Participating Organizations; employees; Unions; and/
or other interested parties as appropriate. New waivers from law or 
regulation must be approved by the USD(AT&L) in coordination with the 
USD(P&R) and published in a Federal Register notice.
4. AcqDemo Internal Guidance
    The DoD AcqDemo Program Office is responsible for preparing and/or 
issuing implementation, operational, sustainment, and other internal 
guidance such as AcqDemo Memoranda, Operating Procedures, and/or DoDIs 
regarding the AcqDemo provisions to Participating Organizations. This 
internal guidance, which can be found at http://www.acqdemo.hci.mil, 
supplements with additional details the general guidelines and 
parameters established through legislation and Federal Register 
notices. Participating Organizations may issue additional internal 
guidance to ensure standard application across AcqDemo participating 
subordinate organizations and teams. All personnel laws, regulations, 
and guidelines not waived by the AcqDemo Project Plan will remain in 
effect. Basic employee protections and entitlements such as grievance, 
merit system principles, equal opportunity, leave, insurance, 
annuities, etc., are unchanged by AcqDemo and remain applicable.
5. Legal Authority
    For actions taken under the auspices of the demonstration project, 
the legal authority code Z2W, Public Law 111-383, will be used. For all 
other actions, the nature of action codes (NOAC) and legal authority 
codes prescribed by OPM and/or DoD will continue to be used unless 
revised or new codes are

[[Page 32060]]

developed for specific AcqDemo interventions. Information and guidance 
on codes specific to AcqDemo will be published in internal implementing 
issuances.

C. Organization and Team Participation

    1. Scope of Acquisition Organizations. The DoD has numerous 
civilian acquisition organizations and teams in the Departments of the 
Army, the Navy (including the Marine Corps), and the Air Force as well 
as several Defense agencies and field activities. These organizations 
and teams are located not only across the United States but also in 
various foreign countries. Various elements of these organizations may 
be included in AcqDemo if they request to participate in AcqDemo, meet 
the eligibility requirements, are coordinated with the USD(P&R), and 
approved by the USD(AT&L).
    2. Request to Participate in AcqDemo. As a demonstration project, 
AcqDemo is subject to audit, evaluation, and reporting requirements as 
Department leaders consider expanding participation in AcqDemo and the 
merits of undertaking modified and installing new initiatives. 
Therefore, to assist in the effective management of the project, it is 
necessary to establish and utilize a formal application and approval 
process for organizations and teams desiring to participate in AcqDemo. 
The broad parameters of this process are described below with finite 
content requirements to be issued by the DoD AcqDemo Program Office 
using various internal DoD issuances such as AcqDemo Memorandum, 
AcqDemo Operating Procedures, and/or DoDIs. As experience is gained 
using this process, analysis is conducted, and conclusions reached, 
minor modifications may be made by the DoD AcqDemo Program Office.
    3. Calls for Additional Participation. The AcqDemo Program Office 
may establish a regular schedule or periodically announce opportunities 
for interested acquisition organizations to apply for approval to 
participate in AcqDemo. Out-of-cycle participation requests will be 
reviewed on a case-by-case basis. During the demonstration project 
authority period, limited expansion of the project may be determined 
valuable by the USD(AT&L). In these cases, plans for such expansion 
will be coordinated with the USD(P&R) prior to execution.
    4. Eligibility Requirements. Organizational and team participation 
in AcqDemo is voluntary. For an interested organization or team to be 
approved to participate, the following conditions must be met:
    (a) At least one-third of the workforce selected to participate in 
the demonstration project consists of members of the acquisition 
workforce (civilian employees occupying positions coded as meeting the 
requirements of the Defense Acquisition Workforce Improvement Act 
(DAWIA) of 1990 as amended);
    (b) At least two-thirds of the workforce participating in the 
demonstration project consists of members of the acquisition workforce 
and supporting personnel assigned to work directly with the acquisition 
workforce;
    (c) Positions are classified to an approved occupational series; 
and
    (d) The organization or team request is coordinated through the 
chain of command, to include the USD(P&R), for approval by USD(AT&L) 
for participation in the AcqDemo Project. Following receipt of 
appropriate coordination and approvals for the requesting organization 
to participate in AcqDemo, the AcqDemo Program Office staff will 
initiate appropriate notification to the requesting Military Department 
or DoD Component and USD(P&R). In addition, any organization approved 
to participate will notify affected employees, labor organizations, and 
other appropriate stakeholders.
    5. Application Process. The organization or team seeking approval 
to participate in AcqDemo would follow the process steps listed below:
    (a) Complete the following preliminary activities:
    (1) Review the AcqDemo design with the Participating Organization's 
DoD AcqDemo Executive Council Representative, if applicable, and DoD 
AcqDemo Program Office officials;
    (2) Informally coordinate concurrence of their participation within 
its component leadership for any enterprise planning impacts; and
    (3) Assess the acceptance level of the workforce with 
participation, views of stakeholders such as local bargaining union 
leadership (if applicable), and consider any other local climate and/or 
operational issues that would impact effective implementation of the 
project.
    (b) Gather and include the required information described below in 
an application packet:
    (1) Complete DoD Component, DoD Agency, or DoD Field Activity 
address.
    (2) Identification of the acquisition-related mission of the 
population requesting participation, including a brief discussion of 
the major functions performed.
    (3) Requesting organizations are encouraged to provide any 
applicable local workforce challenges being encountered that are not 
covered in 64 FR 1426-1492 and indicate how it is anticipated that 
AcqDemo could help address such challenges.
    (4) Workforce Demographic Data.
    (5) Identification of occupational series that need to be added.
    (6) A statement of confirmation that applicable Within-Grade 
Increase (WGI) buy-in conversion costs, if applicable, have been 
estimated and do not present an adverse financial impact on payroll 
budgeting and execution.
    (7) Communication plan, as available.
    (8) Desired conversion date for candidate population.
    (c) Route the application package through its command channels to 
the Service Acquisition Executive and the Assistant Secretary for 
Manpower and Reserve Affairs (M&RA) for the Military Departments or the 
appropriate equivalent authority for other DoD components for 
appropriate review and endorsement to the DoD AcqDemo Program Manager. 
The AcqDemo Program Office staff will review the application package 
for compliance with required information and eligibility requirements 
and facilitate coordination of eligibility with USD(P&R), Defense 
Civilian Personnel Advisory Services (DCPAS) and participation approval 
with USD(AT&L). The AcqDemo Program Manager will then ensure the 
approval decisions are implemented, with quarterly updates provided to 
USD(P&R) and USD(AT&L).

D. Eligible Organizations

    Appendix B provides two tables containing lists of organizations 
that have been determined to be eligible to participate. Table 1 of 
Appendix B provides a list of those organizations that were determined 
to be eligible to participate as of July 1, 2002. Table 1A of Appendix 
B contains a list of new or realigned organizations whose eligibility 
to participate in AcqDemo was approved by the DoD in calendar year 2014 
and by OPM in calendar year 2015.

E. Workforce Coverage

    1. Covered Workforce. Section 872 of the Ike Skelton NDAA for FY 
2011 increased the number of employees who may participate in AcqDemo 
from 95,000 to 120,000 at any one time. The scope of AcqDemo workforce 
coverage for the DoD-wide critical acquisition function gives primary 
consideration to the number and diversity of occupations within (1) the 
acquisition workforce; and (2) the supporting personnel assigned to 
work directly with the acquisition workforce. This coverage encompasses 
acquisition-related duties

[[Page 32061]]

and positions in sixteen acquisition career fields: Auditing; business-
cost estimating; business-financial management; contracting; facilities 
engineering; information technology; life cycle logistics; production, 
quality, and manufacturing; program management; property; purchasing; 
science and technology management; engineering; test and evaluation; 
small business; and international acquisition, with all but two 
considered critical acquisition career fields. This position management 
structure reflects the structure described in Appendix 1 of the April 
2010 DoD Strategic Human Capital Plan (SHCP) Update for the Defense 
Acquisition Workforce as well as in the Defense Acquisition Workforce 
update for the 2016 DoD SHCP. The occupational series for this 
collection of duties and associated positions included in the AcqDemo 
are listed in Appendix C.
    Additionally, in determining the scope of the demonstration 
project, DoD human resources management design goals and priorities for 
the entire civilian workforce were considered. While the intent of this 
project is to provide DoD activities with increased control and 
accountability for their covered workforce, the decision was made to 
restrict development efforts initially to positions in the GS and GM 
pay plans. Employees covered under the Performance Management and 
Recognition System Termination Act (pay plan code GM) are GS employees 
and are covered under the demonstration project. The AcqDemo currently 
includes employees who previously held positions under the GS or GM pay 
plan codes or under one of the National Security Personnel System pay 
plan codes or under other pay systems. Employees and positions in other 
personnel systems and pay plans may be converted into AcqDemo as a 
result of reorganizations, restructuring, realignment, consolidation, 
Base Realignment and Closure decisions, legislative dictates, or other 
organizational changes as determined appropriate by the AcqDemo Program 
Manager. Students and recent graduates hired through the Pathways 
Programs may be included as determined by Participating Organizations. 
Excluded from coverage of this project at this time are Senior 
Executive Service, Senior Level, Scientific and Technical, Federal Wage 
System, and Administratively Determined positions. Also excluded from 
the project are (1) positions allocated to a Physicians and Dentist Pay 
Plan, either GP or GR; (2) positions covered by the Defense Civilian 
Intelligence Personnel System (10 U.S.C. chapter 83); (3) positions 
covered by or to be included in one of the Science and Technology 
Reinvention Laboratory (STRL) personnel demonstration projects (Section 
342(b) of the NDAA for FY 1995, Pub. L. 103-337 (10 U.S.C. 2358), as 
amended); (4) primary or secondary law enforcement officer (LEO) 
positions (5 U.S.C. 5541(3)); and (5) administrative law judge 
positions. To determine if an organization and series are included, 
locate the organization in Appendix B, either in Table 1 or Table 1A, 
and then find the job series in Appendix C.
    2. Current Participating Employees. Table 1 provides a breakout of 
the AcqDemo actual population as of July 29, 2016, by Participating 
Organizations including number of employees by career path, broadband 
level, and bargaining unit representation. Of the 33,639 employees, 
6.45% or 2,171 are represented by labor unions. The American Federation 
of Government Employees and the National Federation of Federal 
Employees represent the largest number of employees. The International 
Association of Fire Fighters, International Federation of Professional 
and Technical Engineers, and Laborers' International Union of North 
America represent the remainder of AcqDemo bargaining unit employees.

F. Bargaining Requirements

    1. Written Agreements. Employees within a unit to which a labor 
organization is accorded exclusive recognition under 5 U.S.C. chapter 
71, shall not be included as part of the demonstration project unless 
the exclusive representative and the agency have entered into a written 
agreement covering participation in and implementation of this project. 
In order to ensure that the integrity of the acquisition demonstration 
project is maintained, parties may not change the design and intent of 
any of the project initiatives during negotiations. DoD has authority 
to operate only ONE project with the initiatives applying to all 
Participating Organizations. Revisions to initiatives may only be made 
in accordance with Section I.B.3 of this project plan.
    The parties may use mediation or any other mutually acceptable 
means to resolve disputes over the implementation of the project with 
respect to unit employees. Neither party may request the assistance of 
the Federal Service Impasses Panel to resolve such disputes. Either 
labor or management may unilaterally withdraw from negotiations over 
the application of this demonstration project to bargaining unit 
members at any time up until final agreement approval, without such 
action being considered an unfair labor practice under 5 U.S.C. 7116, 
for refusing to negotiate in good faith.
    Written agreements addressing the initial implementation of the 
demonstration project to bargaining unit members of Participating 
Organizations are subject to agency head review and approval within DoD 
prior to implementation. Thus, agreements will be reviewed as provided 
in 5 U.S.C. 7114(c).
    2. Subsequent Negotiations. Once a written agreement is reached and 
approved allowing for the local implementation of the project, all 
subsequent negotiations during the life of the project shall be subject 
to binding impasse procedures under 5 U.S.C. 7119.
BILLING CODE 5001-06-P

[[Page 32062]]

[GRAPHIC] [TIFF OMITTED] TN11JY17.000


[[Page 32063]]


BILLING CODE 5001-06-C

II. Personnel System Interventions

A. Classification

1. Broadbanding
    a. The broadbanding system replaces the current GS fifteen-grade 
structure. The fifteen GS grades are arranged into three or four 
broadband levels within a career path in accordance with recognized 
advancement expected within the occupations assigned to the career 
path. Broadband level pay ranges were derived from base pay rates under 
5 U.S.C. 5303 of the banded GS grades. The lowest basic pay rate of any 
given broadband level is that for step 1 of the lowest GS grade in that 
broadband level. Likewise, the highest basic pay rate of any given 
broadband level is that for step 10 of the highest GS grade in that 
broadband level. There is a natural overlap in basic pay ranges in the 
GS grades that also occurs in the broadband system. Once employees move 
into the demonstration project, GS grades as well as WGIs and quality 
step increases will no longer apply and promotions will be less 
frequent. Movement through a broadband level will be based on employee 
appraisals under the CCAS; movement to a higher broadband level will be 
by competitive or non-competitive promotion; and voluntary or 
involuntary movement to a lower broadband level by a change to a lower 
broadband level personnel action.
    b. There are three distinct career paths where AcqDemo occupations 
with similar characteristics are grouped together to facilitate 
advancement, pay progression, and more competitive recruitment of 
quality candidates at differing rates. The career paths are designated 
as Business Management and Technical Management Professional, Pay Plan 
NH; Technical Management Support, Pay Plan NJ; and Administrative 
Support, Pay Plan NK. The occupations placed within each of these 
career paths are listed in Appendix C. The three career paths and their 
associated broadband levels compared to GS grades are shown in Figure 
1, Career Paths and Broadband Structure.
[GRAPHIC] [TIFF OMITTED] TN11JY17.001

    c. The broadband levels represent basic pay only and will be 
labeled I, II, III, or IV. Comparison to the GS base pay table is used 
in setting the minimum and maximum basic pay limits of the broadband 
levels. As the rates of the GS are increased for any annual across-the-
board GS pay increase, the minimum and maximum basic pay rates of the 
broadband levels will also increase. Basic pay rates for employees are 
established within the minimum and maximum basic pay range for their 
position's broadband level. Section C, Pay Administration, offers more 
detail on how to set pay within a broadband level.
    Since employees' pay progression through a broadband level depends 
on their contribution to the organization's mission and accomplishment 
of higher level, broader scope, and/or more difficult work assignments, 
there will be no scheduled WGIs or scheduled across-the-board GS 
increases for employees covered by the broadbanding system. Advancement 
to a higher broadband level is typically through merit promotion or 
competitive recruitment procedures. Movement to a lower broadband level 
may be voluntary or involuntary. Special salary rates will no longer be 
applicable to demonstration project employees. Employees will be 
eligible for the locality pay of their geographical area with the 
exception of those employees stationed at an overseas location.
2. Occupational Series, Titles, and Classification Standards
    The AcqDemo Project will continue to use the occupational series 
designators and position titles consistent with those authorized by DoD 
and/or OPM to identify positions. The current AcqDemo occupational 
series will be placed into appropriate career paths as shown in 
Appendix C. Appendix C has been updated to remove those series 
cancelled by OPM, to provide current series titles, to include 
additional series, and to move existing series to different or 
additional career paths. Other occupational series may be added or 
current series revised or deleted as a result of fluctuations in 
mission requirements or future DoD or OPM modifications to occupational 
series. Titling practices consistent with those

[[Page 32064]]

established by DoD or OPM classification standards will be used to 
determine the official title of positions. References in the position 
classification standards to grade criteria will not be used as part of 
the demonstration project. Rather, the AcqDemo provides definitions for 
each of the career paths and corresponding broadband levels within them 
as described in Appendix D.
3. Classification Level and Appraisal Factors
    a. General. Under the demonstration project, a standard set of 
three classification levels and appraisal factors has been developed 
for each career path--Factor 1. Job Achievement and/or Innovation; 
Factor 2. Communication and/or Teamwork; and Factor 3. Mission Support. 
These factors comprised of expected contribution criteria and broadband 
level descriptors and discriminators, as aligned to the three career 
paths and their broadband levels, will be used for broadband level 
classification and employee contribution assessment. The employee 
contribution assessment includes both a determination of an Overall 
Contribution Score (OCS) and a performance appraisal level for each 
factor. While the basic classification and appraisal factors, 
descriptors, and discriminators cannot be changed, the factors with the 
addition of an employee's contribution plan are fundamental to the 
success of an acquisition organization and capture the critical content 
and expectations for positions in the three career paths--Business 
Management and Technical Management Professional, Technical Management 
Support, and Administrative Support.
    b. Expected Contribution Criteria. The AcqDemo utilizes baseline 
expected contribution criteria prepared for each of the three factors. 
These criteria are applicable to all contributions at all broadband 
levels under the appropriate factor. The criteria form the basis from 
which specific contribution expectations, standards, goals, or 
objectives are developed for an employee's contribution plan for the 
classification level of work in the employee's position. These criteria 
may only be modified by the DoD AcqDemo Program Office.
    c. Factors. The factors are derived from the Office of Personnel 
Management, Introduction to the Position Classification Standards, 
Appendix 3, Primary Standard, and represent the primary type of work 
and contribution typically found in positions classified to a specific 
career path and broadband level.
    (1) Descriptors. Descriptors are narrative statements that are 
written at increasing levels of complexity, scope, and value of 
position and employee contribution. They are meant to correspond with 
the broadband levels, and their associated ranges of basic pay, for 
classification and appraisal purposes. While the descriptors indicate a 
position classification and/or contribution level appropriate at the 
upper end of each broadband level, a broadband may actually contain an 
array of positions with varying levels of work, responsibilities, and 
value. These attributes range from just above the upper end of the next 
lower broadband level to an employee's position to the upper end of the 
employee's broadband level as defined by an organization's position 
management structure needed to accomplish its mission. Descriptors are 
not to be used individually to determine position classification or 
assess contributions, but rather are to be considered as a group to 
derive a single evaluation of each factor.
    (2) Discriminators. The discriminators refine the descriptors. For 
example, the Communication and/or Teamwork factor has four 
discriminators (oral, written, contribution to team, and 
effectiveness), which are the same for all broadband levels. The 
discriminators help to define the type and complexity of work; degree 
of responsibility; and scope of contributions that need to be 
ultimately accomplished to reach the highest basic pay potential within 
a broadband level for an employee's position and contributions. The 
discriminators are often times included in the duties portion of the 
Position Requirements Document to clarify the generic descriptors as to 
type and level of work, and in contribution expectations, standards, 
goals, and/or objectives included in an employee's contribution plan to 
foster contributions at the appropriate level and value for the 
position within its broadband level and to support the organization's 
strategic goals and objectives needed to meet its mission.
    (3) Summary. The three factor evaluations when taken as a whole 
result in either a classification determination of the broadband level 
for the position or an OCS and performance appraisal for an employee's 
contribution assessment depending on the action being addressed. This 
structure in turn would be used to set the stage for determination of 
position classification, contribution assessment, and ultimately 
compensation decisions. The definitions for the career paths and 
corresponding broadband levels within them are found in Appendix D. The 
classification levels with descriptors, discriminators, and appraisal 
factors can be found in Appendix E.
4. Classification Authority
    Under the AcqDemo, Heads of Participating Organizations (or 
equivalent) will have delegated classification authority and may re-
delegate this authority to subordinate management levels to a level not 
lower than one management level above the first-line supervisor of the 
position under review, except in the case of those employees reporting 
directly to the Head of the Participating Organization or equivalent. 
First-line supervisors will provide classification recommendations. 
Individuals knowledgeable and experienced in classification 
methodology, to include Human Resources Specialists, may provide 
ongoing consultation and guidance to managers and supervisors 
throughout the classification process.
5. Position Requirements Document
    Under the demonstration project's classification system, a position 
requirements document (PRD) combines the position information; staffing 
requirements; factors, descriptors, and discriminators; expected 
contribution criteria for the assigned broadband level; and position 
evaluation statement into a single document. The AcqDemo Program Office 
has developed fillable templates for each career path broadband level 
to aid supervisors in producing a PRD. These templates may be found on 
the AcqDemo Web site at: http://acqdemo.hci.mil/PRD.html. Participating 
Organizations may use an alternative automated system to support 
AcqDemo classification as needed. The objectives in developing the new 
PRD are to: (a) Simplify the descriptions and the preparation process 
through automation; (b) provide more flexibility in work assignments; 
and (c) provide a more useful tool for other functions of personnel 
management, e.g., recruitment, assessment of contribution, employee 
development, and reduction in force.
6. Fair Labor Standards Act
    Fair Labor Standards Act (FLSA) exemption or non-exemption 
determinations will be made consistent with criteria found in 5 CFR 
part 551. All employees are covered by the FLSA unless they meet 
criteria for exemption. Positions will be evaluated as needed by 
comparing the duties and responsibilities assigned, the broadband level 
descriptors for each broadband

[[Page 32065]]

level, and the 5 CFR part 551 FLSA criteria.
7. Maximum Broadband Level
    Each position under the demonstration project will have a 
designated maximum broadband level. This maximum broadband level will 
be identified as the top broadband level within a career path for a 
particular position and the broadband level to which an incumbent, 
selected competitively or through merit promotion for a lower broadband 
level, may be advanced without further competition. These broadband 
levels will be based upon the full performance levels of positions 
before conversion into AcqDemo. After conversion a newly created or re-
described AcqDemo position may be assigned a different maximum 
broadband level based on the AcqDemo organization's position management 
structure, change in mission, reorganization, and similar factors. 
Maximum broadband levels may vary based upon occupation or career path. 
An employee's basic pay will be capped at the maximum rate for the 
designated broadband level until the employee has been promoted into 
the next higher broadband level.
8. Classification Appeals
    An employee may appeal the occupational series, title, or broadband 
level of his or her own position at any time. An employee may not 
appeal the accuracy of the position requirements document; the 
demonstration project classification criteria; the pay-setting 
criteria; the propriety of a salary schedule; or matters grievable 
under an administrative or negotiated grievance procedure or an 
alternative dispute resolution procedure.
    An employee must formally raise the areas of concern to supervisors 
in the immediate chain of command, either orally or in writing. If an 
employee is not satisfied with the supervisory response, he/she may 
appeal to the Head of his/her organization. If the employee is not 
satisfied with the supervisory response, he/she may then appeal to his/
her organization's Component or Agency level in accordance with their 
instructions. If the employee is not satisfied with the Component or 
Agency decision, the employee may appeal to the DoD appellate level. 
Appellate decisions rendered by DoD will be final and binding on all 
administrative, certifying, payroll, disbursing, and accounting 
officials of the Department. The evaluation of classification appeals 
under this demonstration project is based upon the demonstration 
project classification criteria. Case files will be forwarded for 
adjudication through the civilian personnel/human resources office 
providing personnel service and will include copies of appropriate 
demonstration project criteria. Time periods for case processing under 
5 CFR 511.605 apply.

B. Recruitment and Staffing

    One of the goals of the DAWIA Program is to create well-trained, 
multi-skilled professionals who can effectively manage multi-million-
dollar programs. Hiring restrictions and complex processes unduly 
increase hiring timelines, exhaust valuable resources, and 
unnecessarily detract attention from the acquisition mission. Managers 
must be able to compete with academia and the private sector for the 
best talent and be able to make timely job offers to potential 
employees who display the experience, education, competencies, 
knowledge, skills, abilities, and motivation to be successful in the 
highly dynamic DoD acquisition environment. The program has statutory 
and regulatory requirements necessitating substantial education, 
training and experience, special certifications, and continuous 
learning designed to create a cadre of highly skilled acquisition 
professionals ready for assignment to the DoD's most senior acquisition 
positions.
    The position management structure for the DAWIA Program contains 
three categories of AWF members and positions that may be found in each 
of the acquisition career fields. The largest category is comprised of 
persons assigned to developmental and mid-level acquisition positions. 
The next category encompasses Critical Acquisition Positions which are 
senior acquisition positions with significant responsibility, primarily 
involving supervisory or management duties in acquisition systems. The 
top level of positions, Key Leadership Positions, require special 
USD(AT&L) attention, have significant leadership responsibilities, are 
held by personnel in the most demanding acquisition positions, and are 
critical to the success of the DoD acquisition program.
    To maintain an adequate complement of trained AWF members in each 
of the position categories and career fields, the DoD establishes 
hiring strategies and goals that are published in its biennial Human 
Capital Strategic Workforce Plan. A recent Government Accountability 
Office (GAO) \6\ review of the results from the goals expressed in the 
DoD 2010 acquisition workforce plan and to be achieved by 2015, 
indicated that DoD did not reach the growth targets for six acquisition 
career fields by about 4,400 personnel. This includes four critical 
career fields, i.e., contracting; business; production, quality, and 
manufacturing; and engineering along with two non-critical career 
fields, i.e., property and purchasing. This shortfall in reaching 
essential growth targets illustrates the need for more efficient, 
agile, and effective hiring flexibilities to provide consideration of a 
broader spectrum of candidates from which to quickly acquire and 
steadfastly maintain a high quality acquisition workforce and its 
direct support personnel for each of the sixteen acquisition career 
fields.
---------------------------------------------------------------------------

    \6\ United States Government Accountability Office, Report to 
Congressional Committees, Defense Acquisition Workforce, Actions 
Needed to Guide Planning Efforts and Improve Workforce Capability, 
December 2015, GAO-16-80.
---------------------------------------------------------------------------

1. Appointment Authorities
    a. Competitive and Excepted Appointing Authorities. Under this 
demonstration project, there are two primary tenure existing 
competitive service appointment options used in the competitive service 
and excepted service: Permanent and temporary time-limited (which 
includes temporary and term (or term-like in the excepted service)). 
The permanent option consists of the existing career-conditional and 
career appointments (and equivalent appointments in the excepted 
service). The temporary limited option may be used to fill a short-term 
position, i.e., one that is not expected to last longer than one year 
and is filled on a temporary basis. However, if warranted, the 
temporary limited appointment may be extended up to a maximum of one 
additional year for a total of 24 months of service. As appropriate 
under the provisions of this demonstration project, Participating 
Organizations may use other competitive service or excepted service 
appointing authorities and assignment mechanisms including the 
Veterans' Recruitment Appointment, Pathways Programs, and Appointment 
for Individuals with Disabilities for appointments into AcqDemo. While 
authorities such as Expert and Consultant and Intergovernmental 
Personnel Act appointments are not covered by the FRN, Participating 
Organizations may use them.
    b. Modified Term Appointment Option.
    (1) The modified term option is based on the existing term 
appointment. A modified term appointment is expected to last longer 
than one year but not to exceed five years unless a one-year

[[Page 32066]]

extension is locally approved for a total not to exceed six years when 
the need for an employee's service is not permanent. Reasons for making 
a modified term appointment include, but are not limited to, carrying 
out special project work; staffing new or existing programs of limited 
duration; filling a position in activities undergoing review for 
reduction or closure; replacing permanent employees who have been 
temporarily assigned to another position, are on extended leave, or 
have entered military service; and hiring college students for the 
Acquisition Student Intern Program. Most selections for modified term 
appointments will be made under the competitive examining processes or 
by using direct-hire procedures. However, an AcqDemo Participating 
Organization may give a noncompetitive modified term appointment to a 
selectee who is qualified for the position and is eligible for one of 
the categories listed in 5 CFR 316.302(b), items (1) through (8).
    (2) Reassignment. A Participating Organization may place a modified 
term employee in any other modified term position provided the employee 
meets the qualifying requirements of that position. However, such 
reassignment will not serve to extend the appointment beyond the 
original term appointment time period. The minimum eligibility 
requirements for the position will be determined according to OPM's 
Operating Manual ``Qualifications Standards for General Schedule 
Positions'' and applicable DAWIA requirements. DAWIA requirements may 
be used as quality ranking factors. Both sets of eligibility 
requirements do provide waivers by an appropriate authority.
    (3) Conversion to Career-Conditional Appointment. Employees hired 
under the modified term appointment authority are in a temporary status 
but may be eligible for conversion to career-conditional appointments 
or career appointments if applicable. To be converted, the employee 
must: (a) Have been selected for the term position under competitive 
procedures, with the announcement specifically stating that the 
individual(s) selected for the term positions(s) may be eligible for 
conversion to career-conditional appointment at a later date; (b) have 
served two years of continuous service in the term position; and (c) 
have been considered to have adequate contributions for two appraisal 
cycles (including the current appraisal cycle) immediately preceding 
conversion. Service under a modified term appointment immediately prior 
to a permanent appointment shall count toward the probationary period 
requirements described in 10 U.S.C. 1599e.
    (4) Benefits and Appeal Rights. Benefits and appeal rights are the 
same as those currently afforded term employees.
2. Targeted Recruitment and Outreach
    Hiring managers of Participating Organizations are encouraged to 
use a variety of sources for their targeted recruitment and outreach 
efforts for both permanent and time-limited positions in the 
competitive and excepted services, including: Colleges/universities 
with degree programs that meet acquisition position requirements, job 
fairs, virtual career fairs, professional organizations, alumni 
associations, USAJOBS and non-Federal employment Web sites, employee 
referrals, contractors, and separating or retiring military members. 
Short-term or long-term job announcements may be posted for current 
and/or projected vacancies, multiple vacancies, broadband levels, and/
or geographic locations as appropriate based upon the availability of 
qualified candidates and the type of position being filled. Hiring 
managers have, in consultation with their Human Resources Offices, the 
option of making on-the-spot tentative job offers at job fairs and 
other recruiting events when using a noncompetitive or direct hiring 
authority. These offers are contingent upon meeting appropriate public 
notice requirements, clearing local priorities to include Priority 
Placement Program, Reemployment Priority List, and Interagency Career 
Transition Assistance Plan, and meeting any other requirements (e.g., 
security clearances, certifications).
3. Qualifications and Assessments
    For external government hiring, an applicant's basic eligibility 
for a position will be determined using OPM's Operating Manual, 
``Qualifications Standards for General Schedule Positions,'' and DAWIA 
requirements as appropriate. Experience gained in both permanent and 
time-limited competitive and excepted service positons as well as 
external government positions may be considered as appropriate.
    a. Qualifications. Minimum eligibility requirements will be those 
corresponding to the lowest GS grade referenced in the broadband level 
of the position being filled. For internal government hiring, 
qualifying experience is defined as one year at the next lower 
broadband level in AcqDemo or an equivalent career path and broadband 
level in a different pay banding system; or one GS grade or equivalent 
level lower than the lowest GS grade referenced in the AcqDemo 
broadband level of the position being filled; or a combination of both 
this AcqDemo and GS experience.
    b. Assessments. For assessment purposes, selective placement 
factors may be established in accordance with OPM's Operating Manual 
``Qualifications Standards for General Schedule Positions'' when judged 
to be critical to successful job performance. Selective factors 
identify any qualifications that are required when a selectee starts 
the job. Based on his/her characteristics, if an applicant does not 
meet a selective factor, he/she is ineligible for further 
consideration. Quality ranking factors are experience, competencies, 
knowledge, skills, abilities, and DAWIA certifications required that 
are expected to enhance performance in a position and focus on the 
level of proficiency the selectee brings to the job. Unlike selective 
factors, quality ranking factors are not used to ``screen out'' 
applicants but to focus on the level of proficiency applicants would 
bring to the position. Both the selective factors and/or quality 
ranking factors, when used for applicant assessment, will be 
communicated to applicants via a vacancy announcement or public notice 
when such is required.
4. External Hiring Authorities
    a. General Principles. When exercising the AcqDemo external hiring 
authorities, Participating Organizations will adhere to all applicable 
authorities and the following principles:
    (1) A highly qualified workforce is critical to the Department's 
acquisition mission.
    (2) Recruitment efforts should be designed to attract diverse 
candidates who are representative of all segments of society.
    (3) Merit factors shall be the basis for selecting individuals for 
positions. All personnel programs and practices shall be administered 
in accordance with DoD Directive 1020.02E, ``Diversity Management and 
Equal Opportunity in the DoD''.
    (4) The criteria in 5 U.S.C. 2108 and 5 U.S.C. 2108a for 
determining the preference eligibility of each applicant shall apply to 
AcqDemo without change. DoD AcqDemo Program Office and Participating 
Organizations' procedures shall ensure that, at a minimum:
    (a) Selecting officials treat veterans' preference eligibility as a 
positive factor when making a selection from external recruitment 
sources or where veterans'

[[Page 32067]]

preference is otherwise applicable. The detailed definition of 
``positive factor'' rests with participating organizations and is 
expected to be described in internal issuances and on vacancy 
announcements. The AcqDemo Program Office guidance is stated generally 
to keep veterans' preference as a highlighted item to define how it 
will be addressed in external recruiting and to provide maximum 
flexibility to Participating Organizations in developing their policy.
    (b) When making final selections, any candidates with veterans' 
preference should be considered for appointments if they are found to 
best meet mission requirements.
    (c) If a non-preference eligible candidate is selected over a 
veteran considered to best meet mission requirements, the reasons for 
non-selection of any veteran considered to best meet mission 
requirements must be documented in writing. Non-selection documentation 
must be made part of the permanent selection record. Reasons for non-
selection will be provided to the veteran candidate by the servicing 
human resources office if requested by the veteran. Participating 
Organizations may establish a higher level review and/or approval 
process above the selecting official if appropriate.
    (5) Displaced employee procedures shall be adhered to when using 
this authority.
    (6) Participating Organizations must ensure transparency, 
accountability, and auditability in hiring processes.
    b. Direct Hire Appointments for the Business and Technical 
Management Professional Career Path. The Head of a Participating 
Organization may appoint qualified candidates possessing at least a 
baccalaureate degree required by OPM or DoD qualification standards 
covering acquisition positions and/or qualified candidates for those 
positions involving 51% or more of time in direct support of 
acquisition positions in a critical acquisition career field classified 
to the Business and Technical Management Professional, NH, career path, 
without regard to the provisions of 5 U.S.C. chapter 33, subchapter I 
(other than sections 3303, 3308, and 3328 of such title).
    c. Veteran Direct Hire Appointments for the Business and Technical 
Management Professional and Technical Management Career Paths. The Head 
of a Participating Organization may appoint qualified veteran 
candidates to acquisition positions in a critical acquisition career 
field and to those positions involving 51% or more of time in direct 
support of an acquisition position classified to either the Business 
and Technical Management Professional, NH, career path or to the 
Technical Management Support, NJ, career path, without regard to the 
provisions of 5 U.S.C. chapter 33, subchapter I (other than sections 
3303 and 3328 of such title). The term ``veteran'' has the meaning 
given that term in 38 U.S.C. 101.
    d. Acquisition Student Intern Appointments. The Head of a 
Participating Organization, without regard to the provisions of 5 
U.S.C. chapter 33, subchapter (other than sections 3303 and 3328 of 
such title), may appoint candidates enrolled in a program of 
undergraduate or graduate instruction at an institution of higher 
education leading to either:
    (1) A baccalaureate degree in a course of study required by OPM or 
DoD qualification standards for an acquisition position in a critical 
acquisition career field; or (2) A degree the completion of which 
(including any additional essential credit hours or related experience 
in an acquisition-related field as defined by DoD internal issuances) 
provides competencies, knowledge, skills, etc., directly linked to an 
acquisition position's requirements (selective placement or quality 
ranking factors) for one of the critical acquisition career fields.
    An ``institution of higher education'' for this purpose has the 
same meaning as that term is defined in Section 101 and 102 of the 
Higher Education Act of 1965 (20 U.S.C. 1001). Appointments under this 
authority may be made using a term appointment authority or the 
Pathways appointment authority.
    e. Scholastic Achievement Appointment. This demonstration project 
establishes a Scholastic Achievement Appointment that provides the 
authority to appoint candidates with degrees to acquisition positions 
with positive education requirements without regard to the provisions 
of subchapter I of chapter 33 of title 5, U.S.C. (other than sections 
3303 and 3328 of such title). This authority allows for competitive 
appointment to acquisition positions classified to either the NH-II or 
NH-III broadband level of the Business and Technical Management 
Professional career path. Candidates may be appointed under this 
procedure if:
    (1) They have at least a baccalaureate degree required by OPM or 
DoD qualification standards, or a degree the completion of which 
(including any additional essential credit hours or specialized 
experience in an acquisition-related field as identified by DoD 
internal issuances) provides competencies, knowledge, skills, etc., 
directly linked to an acquisition position's requirements for one of 
the critical acquisition career fields plus any selective factors, 
quality ranking factors, and/or DAWIA certification requirements stated 
in a vacancy announcement;
    (2) the candidate has a cumulative grade point average (GPA) of 
3.25 or better (on a 4.0 scale) in those courses in those fields of 
study that are specified in the OPM Qualification Standards for the 
occupational series and an overall undergraduate GPA of at least 3.0 on 
a 4.0 scale; and
    (3) the appointment is into a permanent or term position at a pay 
level within the NH-II broadband level basic pay range. Appointments 
may also be made to the NH-III broadband level on the basis of graduate 
education and/or experience, but with the requirement of a GPA of at 
least 3.5 on a scale of 4.0 for graduate courses in the field of study 
required for the occupation.
    f. Simplified Hiring Processes. The goal of the simplified hiring 
processes is to enable AcqDemo Participating Organizations to expedite 
the hiring and appointment of qualified persons to acquisition 
positions as well as to direct support positions in any of the sixteen 
acquisition career fields using the approaches described below:
    (1) A name request may be submitted to expedite the appointment of 
a qualified candidate identified through a Participating Organization's 
targeted recruitment actions.
    (2) A certificate of eligibles may be developed from qualified 
applicants to a vacancy announcement who have been evaluated or rated 
under an appropriate assessment methodology such as the Administrative 
Careers with America examination, USA Hire, or OPM category rating 
procedures.
    (3) This demonstration project established a streamlined AcqDemo 
Delegated Examining-Category Rating process. This process may be used 
to fill both acquisition positions and those in direct support of 
acquisition positions covered by this demonstration project.
    An applicant's basic eligibility will be determined using OPM's 
Operating Manual ``Qualifications Standards for General Schedule 
Positions'' and any DAWIA requirements as needed. Minimum eligibility 
qualification requirements will be those corresponding to the lowest GS 
grade referenced in the broadband level of the position being filled. 
For internal government hiring (i.e., promotion and internal placement 
in the competitive service), qualifying experience is defined as one 
year at the next lower broadband level in AcqDemo or an

[[Page 32068]]

equivalent career path and broadband level in a different pay banding 
system; or one GS grade or equivalent level lower than the lowest GS 
grade referenced in the AcqDemo broadband level of the position being 
filled; or a combination of both this AcqDemo and GS experience. 
Selective placement factors may be established in accordance with OPM's 
Operating Manual ``Qualifications Standards for General Schedule 
Positions'' when judged to be critical to successful job performance 
and become part of the minimum qualification requirements for the 
position being filled. Selective placement factors identify any 
qualifications that are required when a selectee starts the job. Based 
on the applicant's characteristics, if an applicant does not meet a 
selective factor, he/she is ineligible for further consideration. 
Quality ranking factors are experience, competencies, knowledge, 
skills, abilities, and DAWIA certifications required that are expected 
to enhance performance in a position and focus on the level of 
proficiency the selectee brings to the job. Unlike selective factors, 
quality ranking factors are not used to ``screen out'' applicants but 
to focus on assessing the level of proficiency applicants would bring 
to the position. Both the selective factors and/or quality ranking 
factors, when used for applicant assessment, will be communicated to 
applicants via a vacancy announcement, public notice, or job 
announcement when such notice is required.
    Candidates who meet the basic minimum eligibility qualifications 
will be further evaluated based on knowledge, skills, and abilities 
which are directly linked to the positions(s) to be filled. Based on 
this assessment, candidates will be placed in one of the quality 
groups, i.e., Superior, Highly Qualified, or Basically Qualified. The 
process for listing names within each specific category is to be 
determined by the Participating Organization.
    Selecting officials should be provided with a reasonable number of 
qualified candidates from which to choose. All candidates in the 
highest group will be certified. If there is an insufficient number of 
candidates in the highest group, candidates in the next lower group may 
then be certified; should this process not yield a sufficient number, 
groups will be certified sequentially until a selection is made or the 
qualified pool is exhausted. When two or more groups are certified, 
candidates will be identified by quality group (i.e., Superior, Highly 
Qualified, or Basically Qualified). Veterans' preference eligibility 
will be determined when making final selections. When making final 
selections, any candidates with veterans' preference should be 
considered for appointments if they are found to best meet mission 
requirements.
    (4) Rule of Many. When there are no more than 25 applicants for an 
acquisition position or a direct support position in any career field, 
all eligible applicants regardless of veterans' preference may be 
referred. Veterans' preference eligibility will be determined when 
making final selections. When making final selections, any candidates 
with veterans' preference should be considered for appointments if they 
are found to best meet mission requirements.
(5) Voluntary Emeritus Program
    (a) Eligibility and Program Criteria. Under the demonstration 
project, Heads of Participating Organizations have the authority to 
offer voluntary assignments in Participating Organizations and to 
accept the gratuitous services of the following individuals:
    1--AcqDemo retired or separated civilian employees who served in 
either DAWIA-covered positions or positions in direct support to DAWIA-
coded positions (for the Voluntary Emeritus Program, hereinafter 
referred to as AcqDemo employees) and
    2--Non-AcqDemo DoD retired or separated civilian employees and 
former military members who worked in DAWIA-covered positions.
    Voluntary Emeritus Program assignments are not considered 
employment by the Federal Government (except as indicated below). Thus, 
such assignments do not affect a former civilian employee's entitlement 
to buy-outs or severance payments based on earlier separation from 
Federal Service. This program may not be used to replace or substitute 
for work performed by civilian employees occupying regular acquisition 
positions required to perform the mission of the Participating 
Organization.
    The Voluntary Emeritus Program will ensure continued quality 
acquisition by allowing experienced, former civilian and military DoD 
acquisition professionals who served in DAWIA-covered positions and 
former AcqDemo employees to accept retirement incentives with the 
opportunity to retain a presence in the acquisition community. The 
program will be beneficial during manpower reductions as program 
managers, engineers, other skilled acquisition professionals and former 
AcqDemo employees who provided direct support to acquisition 
professionals to accept retirement and return to provide a continuing 
source of corporate knowledge and valuable on-the-job training or 
mentoring to less experienced employees.
    To be accepted into the Voluntary Emeritus Program, a volunteer 
must be recommended to the decision-making authority by one or more 
acquisition managers familiar with the skills that the volunteer offers 
to the organization. Acquisition managers at any level may initiate the 
decision process, however the decision-making documentation must be 
routed through the senior acquisition manager of the organization where 
the volunteer will be assigned, in route to the Head of the 
Participating Organization making the decision. No one who applies is 
entitled to an emeritus position. The decision-making authority must 
document the decision process for each applicant (whether accepted or 
rejected) and retain the documentation throughout the assignment. 
Documentation of rejections will be maintained for two years.
    To ensure success and encourage participation, the volunteer's 
Federal retirement pay (whether the retirement pay is based upon 
military or civilian service) will not be affected while the volunteer 
is serving in emeritus status. Retired or separated AcqDemo employees, 
non-AcqDemo DoD civilian employees and military members who served in 
DAWIA-coded positions may accept an emeritus position without a ``break 
in service'' or mandatory waiting period.
    Voluntary Emeritus Program volunteers will not be permitted to 
monitor contracts on behalf of the Government but may participate on 
any contract if no conflict of interest exists. The volunteer may be 
required to submit a financial disclosure form annually and will not be 
permitted to participate on any contracts where a conflict of interest 
exists. The same rules that currently apply to source selection members 
will apply to volunteers.
    (b) Agreement Requirements. An agreement will be established among 
the volunteer, the decision-making authority, and the Human Resources 
Office. The agreement must be finalized before the assumption of duties 
and shall include:
    1--A statement that the service provided is gratuitous, does not 
constitute an appointment in the Civil Service, is without compensation 
or other benefits except as provided for in the agreement itself, and 
that, except as provided in the agreement regarding work-related injury 
compensation, any and all claims against the Government

[[Page 32069]]

because of the service are waived by the volunteer;
    2--A statement that the volunteer will be considered a Federal 
employee for the purposes of:
    a--Subchapter I of 5 U.S.C. chapter 81 (using the formula 
established in 10 U.S.C. 1588 for determination of compensation) (work-
related injury compensation);
    b--28 U.S.C. chapter 171 (tort claims procedure);
    c--5 U.S.C. 552a (records maintained on individuals); and
    d--18 U.S.C. chapter 11 (conflicts of interest).
    3--The volunteer's work schedule;
    4--Length of agreement (defined by length of project or time 
defined by weeks, months, or years);
    5--Support provided by the activity (travel, administrative, office 
space, supplies, etc.);
    6--A one-page statement of duties and experience;
    7--A statement specifying that no additional time will be added to 
a volunteer's service credit for such purposes as retirement, severance 
pay, and leave as a result of being a member of the Voluntary Emeritus 
Program;
    8--A provision allowing either party to void the agreement with ten 
days' written notice; and
    9--The level of security access required by the volunteer (any 
security clearance required by the position will be managed by the 
Participating Organization and may or may not result in a delay in 
setting the volunteer's reporting date).
    5. Expanded Initial Probationary Period. The original AcqDemo 
expanded initial probationary period covering periods of training 
beyond 1 year has been eliminated and replaced by the provisions of 10 
U.S.C. 1599e (NDAA 2016 (Pub. L. 114-92), section 1105, Required 
Probationary Period for New Employees of the Department of Defense). 10 
U.S.C. 1599e requires a two-year probationary period for ``. . . any 
individual appointed to a permanent position within the competitive 
service at the Department of Defense . . .'' Use of this provision will 
be required for Participating Organizations.
6. Staffing Within AcqDemo
    a. Expanded Supervisory and/or Managerial Probationary Periods. New 
supervisors, that is, those who have not previously completed a civil 
service supervisory probationary period, will be required to complete a 
one-year probationary period for the initial appointment to a 
supervisory position. An additional supervisory probationary period of 
one year may be required when an employee is officially assigned to a 
different supervisory position that constitutes a major change in 
supervisory responsibilities from any previously held supervisory 
position, e.g., moving from a journeyman level supervisory acquisition 
position to a Critical Acquisition Position or moving from a Critical 
Acquisition Position to a Key Leadership Position. If, during a 
supervisory probationary period, the decision is made to return the 
employee to a non-supervisory position for reasons related to conduct 
or supervisory contribution and/or performance, the probationary 
employee's supervisor will provide written notification subject to 
higher level management approval and the employee will be returned to a 
comparable position of no lower basic pay than the position from which 
promoted or reassigned.
    b. Internal AcqDemo Assignment Process. Today's environment of 
downsizing and workforce transition mandates that the organization have 
maximum flexibility to assign individuals. The AcqDemo waivers to title 
5 U.S.C. and title 5 CFR enable organizations to have the maximum 
flexibility under the broadbanding structure to assign an employee 
within broad descriptions, consistent with the needs of the 
organization and the individual's qualifications. Employees may receive 
subsequent organizational assignments to projects, tasks, or functions 
within their broadband level requiring the same occupational series, 
level and area of expertise, knowledge, skills, abilities, 
competencies, qualifications, and DAWIA certification, as appropriate, 
as their current position and typically without change in their rate of 
basic pay. For instance, a technical expert can be assigned to any 
project, task, or function requiring similar technical expertise. 
Likewise, a manager could be assigned to manage any similar function or 
organization consistent with that individual's qualifications. 
Assignments generally may be accomplished as Realignments using Nature 
of Action Code 790 and do not constitute a position change. However, if 
the assignment results in an occupational series change; broadband 
level change; change to competencies, knowledge, skills, or abilities; 
change in acquisition certification levels; change in official duty 
station; change to a different agency; or a change in CCAS pay pools, a 
different Nature of Action Code, an official SF-50, and/or Defense 
Civilian Personnel Data System (DCPDS) data field updates may be 
required by the OPM Guide to Processing Personnel Actions or internal 
guidance. For example, when an employee moves to a different AcqDemo 
organization and becomes a member of its CCAS pay pool, the DCPDS Pay 
Pool Identifier data field needs to be updated to reflect the 
employee's new pay pool for use in internal assessments and 
evaluations. Further guidance on documenting the assignment will be 
published in implementing issuances.
    c. Expanded Detail and Temporary Promotion Authority. Current 
regulations require that temporary promotions and details for more than 
120 days to higher broadband level positions than an employee currently 
holds or previously held must be made competitively. Under the 
demonstration project, AcqDemo Participating Organizations would be 
able to effect temporary promotions and details to higher broadband 
level positions than AcqDemo employees currently hold or previously 
held without competition as long as the temporary promotion, detail, or 
a combination of a detail and temporary promotion does not exceed one 
year within a 24-month period to positions within the demonstration 
project. If any detail and/or temporary promotion is needed beyond one 
year, competition is required. In addition, renewing the detail or 
temporary promotion in 120-day or other short-term renewals is waived 
under this demonstration project.
    d. Exceptions to Competition. The following actions are exceptions 
from competitive procedures:
    (1) Non-competitive Movements Involving Promotion:
    (a) Promotion, re-promotion, reassignment, change to a lower 
broadband level, transfer, or reinstatement to an AcqDemo position in a 
broadband level having a referenced GS grade or level of work and no 
greater promotion potential than the GS grade or level of work and 
promotion potential of the position a reinstatement candidate held or 
an employee currently holds or previously held on a permanent basis in 
the competitive service.
    (b) Promotion without current competition when the employee was 
appointed through competitive procedures to a position with a 
documented GS career ladder position or target pay band/broadband level 
or promotion potential equivalent to a referenced GS grade or level of 
work in a higher broadband level than what would be the AcqDemo 
broadband level appropriate for the employee's current position.

[[Page 32070]]

    (c) A temporary promotion or detail of an AcqDemo employee to a 
position in a higher broadband level not to exceed one year in a 24-
month period.
    (d) A promotion resulting from the correction of an initial 
classification error or the issuance of a new classification standard.
    (2) Examples of Other Non-Competitive Movements
    (a) Movement is to a position in a broadband level having a 
referenced GS grade or level of work equal to that of the employee's 
current position and no promotion potential. For example: Employee's 
current position is a GS-318-7 without promotion potential and the 
employee is moving to an NK-318-II position which contains the GS-7 as 
the highest grade and offers no promotion potential; or
    (b) Movement is to a position in a broadband level having a 
referenced range of GS grades or levels of work containing that of the 
employee's current position with no potential to a higher broadband 
level. For example: Employee's current position is a GS-1102-12 with 
potential to a full performance level of GS-1102-13 and the employee is 
moving to an NH-1102-III position which contains both the referenced 
GS-12 and the referenced full performance level of GS-13 without 
further promotion potential to a higher referenced GS grade found in 
the NH-IV broadband level; or
    (c) Referenced GS grade or level of work or potential of the new 
position is no greater than the GS grade or level of work of a position 
previously held by the employee on a permanent basis in the competitive 
service. For example: Employee held a competitive service GS-855-7 
position with potential to GS-855-11 from May 1, 2012 to April 30, 2014 
and is returned to an NH-855-II position on July 6, 2015 which contains 
the range of referenced GS grades (GS-7 through 11) and levels of work 
without potential to a higher referenced GS grade found in the NH-III 
broadband level; or
    (d) Movement is to an AcqDemo position from a different 
demonstration project with referenced GS grades of selectee's current 
pay banded position split between two AcqDemo broadband levels without 
further promotion potential. For example: Employee's current position 
is an Engineering Technician, Pay Band DT-IV (includes referenced GS 
grades 11 and 12). Candidate being considered for either an AcqDemo NJ-
802-III position containing referenced GS grades 9 and 11 or an NJ-802-
IV position containing referenced GS grades 12 and 13. Candidate could 
be placed non-competitively in either NJ position as both broadband 
levels contain one of the referenced GS grades.
    (3) A position change permitted by demonstration project reduction-
in-force procedures.
    (4) Consideration of a candidate not given proper consideration in 
a prior competitive promotion action under the demonstration project.
    (5) Conversion of an AcqDemo employee from a modified term 
appointment to a permanent appointment in the same broadband level and 
occupational family as the modified term position.
    (6) Addition of supervisory duties within the assigned broadband 
level.
    (7) Reclassification to include impact of person in the job or an 
accretion of duty promotion.
    (8) Any other non-competitive action as determined by the 
Participating Organizations.
e. Reduction in Force
    (1) Employee Separations Primarily on the Basis of Performance. For 
any RIF of civilians covered by the AcqDemo within DoD, the 
determination as to which employees will be separated from employment 
will be made primarily on the basis of performance.
    (2) Title 10 U.S.C. 1597. AcqDemo Participating Organizations, in 
accordance with 10 U.S.C. 1597, may not implement any involuntary 
reduction or furlough of civilians and may not implement any 
substantial reduction of contract operations or contract employment 
(involving 100 or more people) during a fiscal year, until the 
expiration of the 45-day period beginning on the date that the 
Component for the Participating Organization submits to Congress a 
report setting forth the reasons such reductions or furloughs are 
required and a description of any change in workload or position 
requirements that will result from same.
    (3) Coordination with the Office of the USD(P&R). DoD Components of 
Participating Organizations will coordinate with the Office of the 
USD(P&R) (ATTN: Office of the Deputy Assistant Secretary of Defense for 
Civilian Personnel Policy) regarding any proposed involuntary reduction 
or furlough of civilians or any substantial reduction of contract 
operations or contract employment (involving 100 or more people) during 
a fiscal year. The coordination process must occur before any 
notification to an employee or member of the public regarding such 
action, release of information to an employee or the public, or 
notification to a Member or Committee of Congress, or their staffs, or 
other executive branch agencies.
    (4) Minimizing the need for RIF as a result of Workforce Reshaping. 
The Heads of Participating Organizations will consider and employ every 
reasonably available option, consistent with applicable policies and 
procedures, to mitigate the size of a proposed RIF, including job 
changes or retraining, the use of voluntary early retirement authority 
or voluntary separation incentive payments, hiring freezes, termination 
of temporary employees, reductions in work hours, curtailment of 
discretionary spending, and other pre-RIF placement activities for 
employees eligible for placement assistance and referral programs.
    (5) RIF Procedures. If a RIF becomes nessesary, RIF procedures will 
be used when an employee faces separation or downgrading due to lack of 
work, shortage of funds, reorganization, insufficient personnel 
ceiling, the exercise of re-employment or restoration rights, or 
furlough for more than 30 calendar or more than 22 discontinuous days. 
Generally, AcqDemo RIF shall be conducted according to the provisions 
of 5 CFR part 351, except as otherwise specified below:
    (a) Competitive Areas. A competitive area establishes the 
boundaries within which employees compete for retention under AcqDemo 
RIF regulations. AcqDemo competitive areas may be refined beyond a 
given component or part of a component at a given geographic location. 
Generally, the geographic area of coverage will be the local commuting 
area. Once the geographic area is determined, additional factors will 
be introduced to ensure that there is sufficient flexibility within the 
competitive area to effect such reassignments and reallocations of work 
as necessary to carry out the mission of the organization with minimal 
disruptions. Typically, these additional factors could include such 
items as career path (pay plan), specific broadband level(s) within a 
career path, and occupational series. Additional factors may include 
lines of business, product lines, organizational units, funding lines, 
and/or functional area, or a combination of these elements and must 
include all AcqDemo project employees within the defined competitive 
area. For each defined RIF competitive area, AcqDemo and non-AcqDemo 
employees must be placed in separate RIF competitive areas. The RIF 
competitive areas will be established no fewer than 90 days in advance 
of any planned effective date of an AcqDemo RIF. All AcqDemo project 
employees

[[Page 32071]]

within the AcqDemo defined competitive area must be included in that 
competitive area. Therefore, AcqDemo employees would not displace non-
AcqDemo employees and vice versa.
    (b) Master Retention List. Competitive service employees and 
excepted service employees are placed on separate Master Retention 
Lists which are established in accordance with this FRN. A Master 
Retention List contains the names and position information for all 
competing employees in the RIF competitive area ranked by tenure group 
category and within each category by three retention factors, i.e., 
average annual rating of record, veterans' preference, and RIF service 
computation date (SCD). The employees are listed within the tenure 
groups in the order of their relative retention standing with 
performance being the primary retention factor. For example, the 
employee with the highest average annual rating of record, i.e., a 
Level 5--Outstanding Rating, is at the top of a tenure group category 
list; an employee with no months of assessed performance would be at 
the bottom of the Tenure Group I--Less than 12 months of Assessed 
Performance category; and the employee who received an unacceptable 
performance appraisal as his/her most recent rating of record, i.e., a 
Level 1--Unacceptable Rating, is placed in Tenure Group I--Current 
Unacceptable Rating of Record category ranked by average annual rating 
of record. Further ranking occurs in each category using additional 
retention factors to accommodate veterans' preference and RIF service 
computation date. A sample Master Retention List is contained in 
Appendix G.
(c) Tenure Groups
    1--Tenure Group Change. Tenure Groups I and II, as defined in 5 CFR 
351.501(b) for competitive service and 5 CFR 351.502(b) for excepted 
service, have been combined into a new Tenure Group I for the 
competitive service and a new Tenure Group I for the excepted service. 
Tenure group III remains the same and will be listed below any Tenure 
Group I categories. Under AcqDemo, the conversion to permanent 
appointment of term employees (Tenure Group III) previously selected 
through competitive procedures, and who otherwise meet conditions 
required for such conversion, may be converted to permanent 
appointments (Tenure Group I), provided such conversions are effective 
not less than 90 days prior to the effective date of the RIF.
2--Tenure Group Categories
    a--Competing employees within a competitive area are listed on a 
master retention list in one of two tenure groups: Tenure Group I 
includes all permanent career and career-conditional employees and 
Tenure Group III includes employees on Term Appointments. Tenure Group 
I is divided into three categories: Tenure Group I employees who have 
12 months or more of assessed performance; Tenure Group I employees who 
have less than 12 months of assessed performance; and Tenure Group I 
employees who received an unacceptable performance appraisal as their 
most recent rating of record. Tenure Group III employees are also 
divided into three categories: Tenure Group III employees who have 12 
months or more of assessed performance; Tenure Group III employees who 
have less than 12 months or more of assessed performance; and Tenure 
Group III employees who received an unacceptable performance appraisal 
as their most recent rating of record.
    b--Periods of Assessed Performance. For purposes of AcqDemo RIF, 
employees are placed in one of two assessed performance categories: 
employees with a period of assessed performance of less than 12 months 
and employees with a period of assessed performance of 12 months or 
more. An employee's period of assessed performance for RIF purposes 
will be the sum of the months of assessed performance associated with 
the employee's performance appraisals within the most recent four-year 
period preceding the ``cutoff date'' established for the RIF. Periods 
of time in a rating cycle for which an employee's performance was not 
assessed are not included in the employee's period of assessed 
performance. For example, if an employee receives a rating of record 
after serving 10 months of a 12-month appraisal cycle, the employee's 
period of assessed performance is ``10 months'' for that rating cycle.
    (d) Retention Factors.
    1--Average Annual Rating of Record. The average annual rating of 
record is the primary retention factor in determining which employees 
shall be separated from employment.
    a--Rating of Record Criteria. A rating of record may be issued only 
in accordance with the AcqDemo appraisal cycle, other approved 
appraisal periods under AcqDemo, another DoD performance management 
program, or a performance management system used by another federal 
agency with which an employee was formerly employed. Ratings of record 
may not be issued solely for purposes of documenting performance in 
advance of a RIF. An employee's average annual rating of record for RIF 
purposes is the average of the ratings of record averages drawn from 
the two most recent annual CCAS ratings or other official ratings of 
record received by the employee within the four-year period preceding 
the ``cutoff date ``established for the RIF, except when the employee's 
most recent rating of record is ``unacceptable.'' When the most recent 
rating of record is ``unacceptable,'' only that rating of record will 
be considered for purposes of RIF. Other rating of record exceptions 
include the following situations:
    i. Employees serving as fulltime union representatives or on a 
prolonged absence due to a work-related injury discussed in Section 
II.D.2(h)(5); and
    ii. Employees who were absent for military service referred to in 
Section II.D.2(h)(6).
    b--``Cutoff Date.'' The ``cutoff date'' is the date after which no 
new rating of record will be considered for purposes of the RIF. The 
``cutoff date'' established will be at least 60 days prior to the date 
of the issuance of RIF notices.
    c--CCAS Ratings of Record. The CCAS average annual rating of record 
is the average of the averages obtained for each of the two most recent 
CCAS ratings of record (if less than two, the actual rating of record 
average) that determined the final performance appraisal level for each 
of the two most recent annual ratings of record in the four-year period 
preceding the ``cutoff date'' established for the RIF. The averages for 
the two CCAS ratings of record would be totaled and the sum divided by 
two to determine the average annual rating of record for RIF retention. 
The resulting quotient will be rounded to the nearest tenth of a 
decimal point. If the hundredths decimal is less than 0.05, the tenths 
decimal does not change. If the hundredths decimal is equal to or 
greater than 0.05, the tenths decimal is increased by ``.1''.
    d--Non-CCAS Ratings of Record. An employee may have a non-CCAS 
rating from another Federal organization as one or both of the two most 
recent ratings of record within the most recent four-year period 
preceding the RIF ``cutoff date.'' In this instance, the average annual 
rating of record will be determined by converting the employee's two 
non-CCAS ratings (if less than two, the actual rating) to the 
corresponding numeric rating, regardless of performance summary level 
pattern (for example: Highly Successful--Level 4; Pass--Level 3;

[[Page 32072]]

Marginally Successful--Level 2; or Unacceptable--Level 1) provided by 
the summary level pattern used by the employee's former Federal 
organization, totaling the numeric ratings, and dividing by the actual 
number of ratings. If one of the two most recent ratings is a CCAS 
rating, add the average obtained for determination of the annual CCAS 
rating of record and the numeric rating of record level for the non-
CCAS rating of record to obtain a total, divide the sum by two. The 
resulting quotient, for either scenario, is rounded in the same manner 
as for two CCAS ratings as described in Section II.B.6.e(5)(d)1-a-.
    e--Employees without a Rating. Presumptive status ratings 1, 2, and 
3 assigned pursuant to Section II.D.6.h will not be used for RIF 
purposes. In the event of a RIF, employees with less than 12 months of 
assessed performance within the most recent four-year period prior to a 
RIF ``cutoff date'' will be placed at the bottom of Tenure Group I--
Less than 12 months of Assessed Performance.
    f--CIP. Employees under a CIP are listed on the master retention 
list in their appropriate tenure group category until a decision is 
reached. If the decision is that the employees have improved to a fully 
successful level, the employees will continue to compete in their 
appropriate tenure group category with other employees whose average 
ratings of record are above unacceptable. If the decision results in an 
unacceptable rating of record, the employees are listed in Tenure Group 
1--Current Unacceptable Rating of Record according to their retention 
standing and compete only within this tenure group
    g--Unacceptable Ratings of Record. If an employee's most recent 
annual or other official rating of record, e.g., rating of record based 
on completion of a CIP, is ``unacceptable,'' the employee would compete 
only in Tenure Group I--Current Unacceptable Rating of Record with 
other employees who received a current unacceptable rating of record. 
If a position encumbered by an unacceptable employee is the best offer 
for an employee with a rating of record above unacceptable, the 
employee with the higher retention standing may be offered the position 
regardless of the retention standing of the unacceptable employee. If 
there is no other position listed in Tenure Group I--Current 
Unacceptable Rating of Record for which the unacceptable employee is 
qualified, the employee will be separated. The unacceptable employee 
has no further displacement rights.
    2--Veterans' Preference. Competing employees are placed in a 
veterans' preference subgroup in accordance with the definitions in 5 
CFR 351.501(c). The three veterans' preference subgroups are: AD (30% 
disabled veteran); A (a veteran who is eligible for veterans' 
preference for purposes of RIF, but is not eligible for placement in 
the AD category); and B (an employee not eligible for veterans' 
preference for purposes of RIF.)
    3--Length of Service (DoD SCD-RIF). The DoD service computation 
date includes all creditable service under 5 CFR 351.503(a) and (b). 
Each AcqDemo Participating Organization is responsible for establishing 
the DoD SCD-RIF applicable to each employee competing for retention 
under this process. Additional service credit for outstanding and fully 
successful performance appraisals will not be calculated in the DoD 
SCD-RIF.
    (e) Displacement. The AcqDemo RIF process has a single round of 
competition which replaces the traditional two-round (bump and retreat) 
process. Displacement is limited to an employee's current career path, 
broadband level, and one broadband level below that is within the 
employee's career path. Broadband level I employees would displace 
within their current broadband level I. Preference eligible employees 
with a compensable service connected disability of 30 percent or more 
may displace within the two broadband levels below their present 
broadband level within their career path not to exceed the equivalent 
of 5 GS grades below the employee's present GS grade-level equivalent. 
Broadband level I preference eligible employees with a compensable 
service connected disability of 30 percent or more can displace within 
their current broadband level. Offer of assignment shall be to the 
position that requires no reduction or the least possible reduction in 
broadband. Where more than one such position exists, the employee must 
be offered the position encumbered by the employee with the lowest 
retention standing.
    (f) Qualifications for Assignment. An employee is qualified to 
displace another employee on the retention list if he or she meets the 
designated standards and requirements in 5 CFR 351.702, including DAWIA 
certification, if applicable, for the position. (However, statutory 
waivers shall continue to apply.) Recency of experience may be used, 
when appropriate, to determine an employee's proper placement. The 
``undue disruption'' standard currently outlined in 5 CFR 351.203 will 
serve as the criteria to determine if an employee is fully qualified.
    (g) Pay Retention. Employees covered by the demonstration are not 
eligible for grade retention. Pay retention will be granted to 
employees downgraded by reduction in force whose rate of basic pay 
exceeds the maximum basic pay range of the broadband level to which 
assigned. Such employees will be entitled to retain the rate of basic 
pay received immediately before the reduction, not to exceed 150% of 
the maximum salary of the lower broadband level.
    (h) Appeals. Under the demonstration project, all employees 
affected by a reduction-in-force action, other than a reassignment, 
maintain the right to appeal to the Merit Systems Protection Board 
(MSPB) if they believe the process/procedures were not properly 
applied.
    (i) Vacant Positions. Prior to RIF, employees may be offered a 
vacant position in the same broadband as the highest broadband 
available by displacement. Employees may also be offered placement into 
vacant positions for which management has waived the qualifications 
requirements. When an AcqDemo Participating Organization chooses to 
fill a vacancy with an employee who will be released from his/her 
position, the organization must consider the relative retention 
standing of all released employees. The vacant position must be offered 
to the released employee with the highest retention standing before 
offering a position to a released employee with a lower retention 
standing. If the employee is not placed into a vacant position and 
cannot be made an offer of assignment via displacement, the employee 
shall be separated.
    (j) Interim RIF Process. In the event a RIF is necessary after the 
final FRN is published but before a rating of record with an average 
score can be established for employees in the competitive area pursuant 
to this FRN, the USD(P&R) may approve an interim RIF process.

C. Pay Administration

1. Introduction
    AcqDemo inspires the use of a compensation strategy that utilizes 
all available and appropriate compensation tools to attract and retain 
an agile, highly-skilled, professional acquisition workforce and the 
supporting personnel assigned to work with that workforce. 
Organizations executing the DoD acquisition mission need talent with 
very specific skills, knowledge, and certifications. To be successful 
in this mission also demands a commitment to providing the warfighter 
with state-of-the-art effective and reliable weapon

[[Page 32073]]

systems that yield equally effective and predictable results. AcqDemo's 
compensation philosophy insures equitable pay for the duties of the 
position, recognizes individual competency achievements, and rewards 
contribution to mission. To assist in this endeavor, AcqDemo provides a 
number of interventions and policies for special situations such as pay 
setting for new hires, reinstatement eligibles, and non-AcqDemo Federal 
civilian employees voluntarily accepting an AcqDemo position; 
promotions; buy-ins on voluntary permanent lateral transfers, 
reassignments, and realignments into AcqDemo; changes to lower career 
path, broadband level, and/or basic pay; supervisory and team leader 
cash differentials; accelerated compensation for developmental 
positions; and a contribution-based compensation system that aligns 
employees' pay to their contributions to the organization's mission and 
to the scope, difficulty, and value of their positions.
    The DoD AcqDemo Program Office will issue policy and guidance on 
pay setting. Participating Organizations are encouraged, through their 
Personnel Policy Boards to issue internal guidance and/or criteria to 
further define their compensation policy and processes based upon 
funding levels; qualifications and experience of selectees; market 
conditions; difficulty of position; organizational level of position; 
etc., to ensure standard application. Copies of an organization's 
internal pay setting guidance are to be provided to the AcqDemo Program 
Office.
    Modifications to the AcqDemo pay administration guidance, 
processes, and/or procedures may be made by the DoD AcqDemo Program 
Manager as experience is gained, economic conditions change, results 
are analyzed, and conclusions are reached. Any supplemental policies, 
guidance, and procedures on pay setting (and modifications to those 
policies, guidance, and procedures) issued by the DoD AcqDemo Program 
Office and Participating Organizations will adhere to the pay 
administration provisions and waivers in this Federal Register notice.
2. Compensation Strategy
    A primary goal of AcqDemo is to compensate employees appropriately 
for their individual and organizational contribution to the mission of 
their organization and the value of their position. This goal promotes 
greater compensation for those who are the highest contributors; 
encouragement for the lowest contributors to improve; and appropriate 
compensation for all levels of contribution in between. Equal with the 
need to appropriately recognize and compensate employee contribution is 
the need to effectively manage the compensation levels of the AcqDemo 
organizational positions. Although each position contained within a 
broadband level could have access to the complete range of pay options, 
it does not mean that all jobs within that broadband level should be 
compensated at the top rate of basic pay of the broadband level. 
Instead, management decisions should be made about the appropriate 
compensation value of the organization's position management structure, 
based on factors such as level of effort, required skills and/or 
certifications, and labor market conditions. Once made, management 
should seek to maintain that level of compensation, unless changes 
occur in the stated compensation factors. Total pay set above or below 
the target basic pay is contingent upon the employee's overall 
contribution to the mission. This approach challenges the organization 
to consider the value identified for each position when determining an 
appropriate level and means of compensation (basic pay adjustment and/
or award) for individual compensation.
    Although broadbanding makes available a broader range of 
compensation choices, basic pay adjustments known within AcqDemo as 
Contribution Rating Increase (CRI) adjustments, are not the sole means 
to compensate employees, and in some cases are not the recommended 
means. As the compensation value of organizational positions are 
identified, managers should consider utilizing appropriate means to 
preserve those values. Compensation methodologies include the 
assignment of a maximum OCS, to coincide with the identified 
compensation value. A CRI resulting from the assignment of an OCS 
assumes the level of contribution, and associated basic pay, is 
expected to continue at least at that level and will be reflected in 
the employee's Contribution Plan for future assessment cycles. These 
scores or values should be identified against PRDs, and then considered 
during hiring actions and in determining compensation means to 
recognize contribution assessments. Means to preserve the identified 
compensation values may include the establishment of control points or 
pay ranges within a broadband level. When compared to their 
counterparts in other compensation systems, e.g., GS and STRL, these 
employees as a group should generally maintain equity with the normal 
pay progression scenarios in these systems. For example, for positions 
equivalent to GS-14 in value and level of difficulty, control points 
should be established based on the basic pay ranges of the lowest 
referenced GS grade in the appropriate broadband level, i.e., GS-14, 
step 10, for the NH-IV broadband level. These tools should be 
considered to, at a minimum, require a management decision to establish 
an appropriate compensation value or to increase an employee's basic 
pay above the identified compensation value. The use of such 
methodologies establishes compensation equity, consistency, and 
transparency for employees and supervisors alike throughout the 
organization. No matter what the compensation system, over time 
positions reach a plateau where salary growth levels off; some at the 
top of the pay scale and others at other points.
3. Aggregate Limitation on Basic Pay
    The calendar year aggregate limitation on pay under 5 U.S.C. 5307 
and 5 CFR part 530, subpart B, of the rate payable for level I of the 
Executive Schedule applies to employees. In addition, the maximum rate 
of basic pay for each broadband level will be limited to the maximum 
rate of basic pay for the highest referenced grade covered by the 
broadband. Other than where a retained rate applies, basic pay rates 
will be limited to the maximum rate of basic pay payable for each 
broadband level.
4. Special Rates
    AcqDemo will not utilize OPM derived special rates. Employees on 
special rates at the time of conversion of their organization into 
AcqDemo will have their pay protected under the provisions of Section 
II.F of this notice. New hires, reinstatement eligibles, and non-
AcqDemo Federal civilian employees entering an AcqDemo position not as 
the result of a conversion will have pay set in accordance with Section 
II.C.9 of this notice.
5. Promotions
    a. Permanent or Temporary Promotion. A permanent or temporary 
promotion action occurs when a non-AcqDemo Federal employee or an 
AcqDemo employee is selected under competitive or merit promotion 
procedures for an AcqDemo position in a broadband level with a 
referenced GS grade or level of work in a higher broadband level than 
what would be appropriate for the Federal employee's current GS grade, 
or the AcqDemo employee's current broadband level, or a previously held 
position on a

[[Page 32074]]

permanent basis in the competitive service. When setting pay for a 
promotion action, either permanent or temporary, consideration must be 
given to both the value of the position and the selectee's expected 
level of contribution in the new position. The basic pay for a 
permanent or temporary promotion action will be set within the 
broadband level for the position to be filled, not to exceed 20 percent 
of the selectee's current basic pay. However, if the minimum rate of 
the selectee's new broadband level is more than 20 percent greater than 
the selectee's current basic pay, then the minimum rate of the new 
broadband level is the new basic pay. The selectee's basic pay shall 
not exceed the basic pay range of the new broadband level.
    b. Temporary Promotion Basic Pay Adjustment Guidelines.
    (1) Upon Termination. When a temporary promotion is terminated, an 
employee's pay entitlements will be re-determined based on the 
employee's permanent position of record with appropriate adjustments to 
reflect any CCAS ratings, e.g., a presumptive rating, and/or General 
Pay increases applicable to the permanent position during the period of 
the employee's temporary promotion. While on a temporary promotion, any 
basic pay adjustments to reflect a CCAS rating for contributions and 
General Pay increases occurring while on that temporary promotion will 
be applied to the temporary promotion basic pay and not the basic pay 
of the permanent position of record. If a temporary promotion of less 
than 1 year is extended so that the total time of the temporary 
promotion equals or exceeds 1 year, pay may be set in the permanent 
position based on a rate received under the temporary promotion, 
subject to the specific policies and rules established by the Head of 
the Participating Organization or Personnel Policy Board.
    (2) When Made Permanent. If a temporary promotion is made permanent 
immediately after the temporary promotion ends, the temporary promotion 
is converted to a permanent promotion without a change in basic pay. If 
there is any period of time between the end of an employee's temporary 
promotion and the beginning of a permanent promotion, the employee must 
be returned to his/her permanent position and his/her permanent 
position's rate of basic pay recomputed as if the employee had never 
been temporarily promoted. Also, at the organization's discretion and 
if eligible, pay may be set in the permanent position based on a rate 
received under the temporary promotion if that would yield a higher 
basic pay rate. However, the higher basic pay rate may not exceed the 
basic pay range of the new broadband level. Whatever method is used, 
the resulting rate is the basis for any subsequent promotion.
6. Retained Pay
    a. Calculation. Retained pay under AcqDemo is the combined basic 
pay and locality pay compared to the maximum rate of the highest 
applicable rate range that applies to the highest referenced GS grade 
included in the broadband level of an employee's new position. If the 
retained rate is greater than the maximum rate of the highest 
applicable rate range for the new position, an employee continues to be 
entitled to the existing retained rate. If the retained rate is equal 
to or less than the maximum rate of the highest applicable rate range 
for the new position, the payable rate of basic pay is converted to the 
employee's new AcqDemo basic pay rate and appropriate locality pay, and 
retained pay terminates.
    b. Pay Adjustments. Employees on retained pay in the demonstration 
project are to be treated as GS employees and will receive pay 
adjustments in accordance with 5 U.S.C. 5363 and 5 CFR part 536 except 
under the following provisions: (1) Pay retention provisions do not 
apply to conversions from General Schedule special rates to 
demonstration project pay, as long as total pay is not reduced; (2) pay 
retention provisions do not apply to movements to a lower broadband 
level as a result of not receiving the general increase due to a 
contribution assessment, either annual or interim, of ``Unacceptable'' 
for the most recent contribution appraisal cycle; and (3) provide that 
an employee on pay retention whose most recent annual or interim 
contribution assessment is ``Unacceptable'' may have the 50 percent of 
the amount of the increase in the maximum rate of basic pay payable for 
the broadband level of the employee's position reduced or denied. An 
employee receiving retained pay is not eligible for a CCAS contribution 
rating increase, since such increases are limited by the maximum basic 
pay rate for the employee's broadband level. Depending upon the 
employee's CCAS assessment, employees on retained pay may be eligible 
to receive a CCAS contribution award.
    c. Promotion from Retained Pay. When an employee on retained pay is 
promoted to a higher broadband level, the employee's basic pay upon 
promotion will be set in the higher broadband level: (1) Not to exceed 
20 percent of the maximum basic pay of the employee's existing 
broadband level as determined by AcqDemo internal policies, or (2) at 
the employee's existing retained rate, whichever is greater. The final 
basic pay should align with the position's value (its target basic pay) 
and the employee's expected contribution in the position.
    d. Adverse Action or Contribution-based Reduction in Pay to Include 
Change to Lower Broadband Level and/or Change in Career Path. An 
employee may receive an involuntary reduction in broadband level with 
or without a reduction in basic pay; an involuntary reduction in basic 
pay within his/her existing broadband level and career path; and/or an 
involuntary move to a new position in a different career path due to an 
adverse or contribution-based action. Involuntary reductions in pay 
will result in a basic pay level consistent with an employee's 
demonstrated contribution level. For involuntary change to lower 
broadband level, the employee's basic pay will be reduced by a 
percentage determined by Participating Organizations, but will be set 
no lower than the minimum basic pay of the broadband level to which 
assigned. Employees placed into a lower broadband due to an adverse or 
contribution-based action are not entitled to pay retention.
    e. Change to Lower Broadband Level/Change in Career Path, Other 
than by Adverse or Contribution-based Action. If an employee is subject 
to an involuntary change to a lower broadband level/change in career 
path by other than an adverse or contribution-based action, such as a 
reclassification of his/her position, the employee is entitled to pay 
retention if all conditions in title 5 U.S.C. 5363 and 5 CFR part 536, 
subparts A and C are met.
    f. Reduction-in-Force (RIF) Action (including Employees Who are 
Offered and Accept a Vacancy at a Lower Broadband Level or in a 
Different Career Path). The employee is entitled to pay retention in 
accordance with 5 U.S.C. 5363 and 5 CFR part 536, subpart A.
7. General Schedule (GS) Annual Base Pay Increase
    The GS base rates may be adjusted each January under the provisions 
in 5 U.S.C. 5303. Under AcqDemo, the minimum and maximum basic pay rate 
of each broadband level will be adjusted at the same time as this GPI. 
The amount of the increase calculated for an organization's AcqDemo 
employees will be based on the amount of any GPI and is allocated for 
use in that organization's pay pool fund and disbursed to

[[Page 32075]]

employees based upon their contribution assessments under the CCAS as 
described in Section II.D.2.d(2).
8. Locality Pay
    All employees will be entitled to the locality pay authorized for 
their official worksite in accordance with 5 CFR part 531, subpart F, 
if eligible. In addition, the locality-adjusted pay of any employee may 
not exceed the rate for Executive Level IV. Geographic movement within 
the demonstration project will result in the employee's locality pay 
being recomputed using the newly applicable locality pay percentage, 
which may result in a higher or lower locality pay and thus, a higher 
or lower adjusted basic pay. This adjustment is not an adverse action.
9. Hires From Outside the AcqDemo
    a. New Hires. For new hires who are receiving their first Federal 
government appointment as a civilian employee, initial basic pay will 
be set within the basic pay range for the broadband level of the 
position for which hired at a level consistent with the individual's 
qualifications and the level of work and contribution expected for the 
position at the time of hire. Other considerations in determining 
starting basic pay are available labor market conditions relative to 
special qualifications requirements, scarcity of qualified applicants, 
programmatic urgency, and education/experience of new selectees.
    b. Reinstatement Eligible Hires. For reinstatement eligibles, 
initial basic pay will be set within the basic pay range for the 
broadband level of the position for which hired giving consideration to 
the various criteria mentioned for new hires from outside the AcqDemo. 
AcqDemo Highest Previous Rate (HPR) as defined in Section II.C.13 and 
AcqDemo internal guidance may provide an appropriate tool for 
establishing basic pay in this instance. Reinstatement eligibility 
refers to the ability for those individuals who previously held a 
career or career-conditional appointment to apply for jobs in the 
competitive Federal service open to status applicants.
    c. Non-AcqDemo Federal Civilian Employees Voluntarily Joining 
AcqDemo. Federal employees entering into the AcqDemo from the GS or 
other pay systems not as the result of a conversion will be moved into 
a career path and broadband level with basic pay set in accordance with 
AcqDemo guidance and reflective of the duties and responsibilities of 
the AcqDemo position and an individual's qualifications. AcqDemo HPR 
may provide an appropriate tool for establishing basic pay in this 
instance. The move will be described using the appropriate nature of 
action, e.g., promotion, reassignment, transfer, etc., as provided by 
the OPM's Guide to Processing Personnel Actions or AcqDemo Program 
Office guidance.
(1) Lateral Transfers, Reassignments, and Realignments
    (a) GS Employees. Individual GS employees who enter the project 
voluntarily by permanent lateral transfer, reassignment, or realignment 
to an AcqDemo position in a broadband level containing a referenced GS 
grade the same as the employee's current GS grade and no greater 
promotion potential than the GS grade or level of work and promotion 
potential of the position the employee currently holds may be subject 
to the same pay setting rules as those GS employees entering the 
demonstration project upon initial conversion of their organization. 
These rules provide an adjustment to an employee's basic pay for a WGI 
and/or non-competitive career ladder promotion buy-in, if eligible. 
Eligibility criteria will be defined in implementing issuances. In any 
case, the employee's basic pay shall not exceed the basic pay range of 
the new broadband level.
    (b) Non-GS Employees. Federal employees in other pay systems, e.g., 
a Science and Technology Reinvention Laboratory Personnel Demonstration 
Project, who do not have WGI eligibility under their current pay 
system, are not eligible for a WGI Buy-in when they move into the 
AcqDemo by lateral transfer, reassignment, or realignment. A Career 
Ladder Promotion Buy-in is not authorized for movement from a pay 
system other than the GS pay system to the AcqDemo pay system by a 
permanent lateral transfer, reassignment, or realignment.
(2) Temporary Reassignments Not to Exceed (NTE)
    Current AcqDemo authorities do not contain provisions for Temporary 
Reassignments NTE to, from, or within AcqDemo. However, if a component 
or agency has established a Temporary Reassignment NTE Nature of Action 
Code, it may be used to move non-AcqDemo employees into AcqDemo, move 
AcqDemo employees out of AcqDemo to a non-AcqDemo organization, and 
move AcqDemo employees within AcqDemo, but no WGI Buy-in or Career 
Ladder Promotion Buy-in is authorized for any of these personnel 
actions.
10. Internal AcqDemo Employee Movements
    a. Movement within a Broadband Level. The movement of an employee's 
basic pay in relation to the minimum and maximum basic pay range for 
his/her position's broadband level is determined by the assessment of 
the employee's contributions through the CCAS, Section II.D, or 
Accelerated Compensation for Developmental Positions (ACDP), Section 
II.C.11.
    b. Change to Lower Broadband Level or Different Career Path. When 
an employee accepts a voluntary change to a lower broadband level or a 
different career path, basic pay may be set at any point within the 
broadband level to which assigned, except that the new basic pay will 
not exceed the employee's current basic pay or the maximum basic pay of 
the broadband level to which assigned, whichever is lower. Upon request 
for or acceptance of a change to a lower broadband level or different 
career path, the employee will be required to provide a written 
statement acknowledging voluntary acceptance and understanding of the 
influence of such a move on pay and benefits. This paragraph does not 
apply to promotion actions.
11. ACDP
    a. AcqDemo will implement ACDP to provide recognition for employees 
in DAWIA-coded positions classified to Broadband Levels I, II, and III 
of the Business and Technical Management Professional Career Path who:
    (1) Are participating in formal training programs, internships, or 
other developmental capacities; and
    (2) Have demonstrated successful or better growth and development 
in the attainment of job-related competencies; and
    (3) Have demonstrated effective accomplishment of a level of work 
higher than that represented by an AcqDemo employee's Expected Overall 
Contribution Score (set by current basic pay) under CCAS.
    b. Standards by which ACDP increases will be provided and 
development criteria by which additional basic pay increases may be 
given will be established in combination with the CCAS and documented 
in internal business rules, policies, and procedures.
    c. ACDPs may be awarded twice per CCAS appraisal cycle but not 
sooner than six months after the effective date of an ACDP for a basic 
pay increase ranging from 0% not to exceed a 10% increase and a growth 
in the employee's Overall Contribution Score. The amount

[[Page 32076]]

of the ACDP increase may not cause the employee's basic pay to exceed 
the top of the employee's broadband level, the target pay for the 
employee's maximum broadband level, or compensation strategy set by 
internal business rules, policies, or procedures for both the 
position's value and employee contributions.
    d. ACDPs will not be funded from pay pool allocations. A general 
O&M budget allocation or equivalent for civilian salaries, as 
appropriate, would be used to cover ACDP basic pay increases. Defense 
Acquisition Workforce Development Funds (DAWDF) may be an additional 
source of funds for ACDPs.
12. Supervisory and Team Leader Cash Differentials
    a. Supervisory and team leader cash differentials may be used by 
Heads of Participating Organizations as an additional tool to 
incentivize and compensate supervisors and team leaders as defined by 
the OPM General Schedule Supervisory Guide or Leader Grade Evaluation 
Guide in situations where:
    (1) Organizational level and scope, difficulty, and value of 
position warrants additional compensation;
    (2) Supervisory and/or team leader positions are extremely 
difficult to fill; or
    (3) Salary inequities may exist between the supervisor's or team 
leader's and non-supervisory/non-team leader subordinates' basic pay.
    b. A supervisory cash differential may not exceed 10 percent of 
basic pay and a team leader cash differential may not exceed 5 percent 
of basic pay. A cash differential is not paid from pay pool funds; is 
not included as part of basic pay for entitlement calculations (e.g., 
retirement and Thrift Savings Plan); and is subject to the total 
aggregate limitation on pay. Because it is not part of basic pay, 
supervisors or team leaders who are at the maximum basic pay for their 
respective broadband level may still receive a supervisory cash 
differential. It is paid on a pay period basis with a specified not to 
exceed date of one year or less; reviewed every year at the same time 
as the CCAS annual assessment and may be terminated or reduced as 
dictated by fiscal limitations, changes in assignment or scope of work, 
and/or an employee's removal from the supervisory or team leader 
position regardless of cause. Termination or reduction of a cash 
differential is not an adverse action and is not subject to appeal or 
grievance. A signed statement by an employee receiving a cash 
differential acknowledging all of the stipulations will be required.
    c. Payment criteria to be considered in determining the amount of 
the cash differential will be outlined in internal implementing 
issuances and will contain considerations such as the needs of the 
organization to attract, retain, and motivate high-quality supervisors 
and team leaders; budgetary constraints; years and quality of related 
experience and current level of compensation; length of the assignment 
and difficulty of the supervisory or team leader duties; organizational 
level of the position; and impact on the organization.
    d. The cash differentials are not automatic by virtue of holding a 
supervisory or team leader position. They will be used selectively, not 
routinely, to compensate only those supervisors and/or team leaders who 
fully meet the criteria. The contribution of supervisors and team 
leaders to the mission of their organization will be assessed 
separately under the CCAS.
13. Highest Previous Rate
    AcqDemo HPR may be considered in setting pay in placement actions 
authorized under rules that are consistent with those found in 5 CFR 
531.221 through 531.223 as described in AcqDemo internal policy and 
guidance. Use of AcqDemo HPR will be at the discretion of the Head of 
the Participating Organization and subject to policies established by 
the organization's senior leaders and/or Personnel Policy Board. 
AcqDemo HPR allows a Participating Organization to set pay for an 
AcqDemo employee at a rate above the rate that would be established 
using normal AcqDemo rules, based on a higher rate of basic pay the 
employee received previously in another Federal job. The AcqDemo HPR 
may be used for reemployment, transfer, reassignment, promotion, 
demotion, change in type of appointment, termination of a critical 
position pay authority under 5 CFR part 535, movement from a non-GS pay 
system, or termination of grade or pay retention under 5 CFR part 536.
14. Recruitment, Relocation, and Retention Incentives
    The participating AcqDemo organizations may make full use of the 
recruitment, retention, and relocation incentive payments under 5 
U.S.C. 5753 and 5754; OPM's regulations at 5 CFR part 575, subparts A-
C; and any supplemental policy guidance.
15. Awards
    To provide additional flexibility in motivating and rewarding 
individuals and groups, some portion of the performance award budget 
will be reserved for special acts and other categories as they occur. 
Awards may include, but are not limited to, special acts, patents, 
invention awards, suggestions, and on-the-spot. The funds available to 
be used for traditional title 5 U.S.C. awards are separately allocated 
within the constraints of the organization's budget. The Service 
Acquisition Executives of AcqDemo Participating Organizations will have 
the authority to grant special act awards to covered employees not to 
exceed $25,000 in accordance with the criteria established by DoD, 
Component, or Agency instructions.

D. Contribution-Based Compensation and Appraisal System

1. Overview
    The purpose of the CCAS is to provide an equitable and flexible 
method for appraising and compensating the DoD civilian acquisition 
workforce and its supporting personnel. It is central to the objectives 
of the DAWIA and Better Buying Power 3.0 which emphasize continuing 
efforts to increase the productivity, efficiency, and effectiveness of 
the Department's many acquisition, technology, and logistics efforts 
and the professionalism of the acquisition workforce. CCAS integrates 
classification, contribution, and compensation into a cohesive 
management system that recognizes level of difficulty, scope, and value 
of an employee's position; impact of contribution results on strategic 
goals, objectives, and organizational mission accomplishment; and 
appropriate compensation in recognition of the value of an employee's 
contribution and position. CCAS allows for more employee involvement in 
the contribution/performance appraisal process, increases communication 
between supervisors and employees, promotes a clear accountability of 
contribution by each employee, facilitates employee progression tied to 
organizational contribution, and provides an understandable basis for 
basic pay changes. Most of the funds previously allocated for 
performance-based awards will be reserved for distribution under the 
CCAS system based on employee contribution.
    CCAS is a contribution-based appraisal system that goes beyond a 
performance-based rating system. That is, it emphasizes and measures 
the value and effectiveness of the employee's

[[Page 32077]]

contribution to the mission and goals of the organization, rather than 
merely how well the employee performed a job as defined by a set of 
standards for the work to be accomplished. Past experience with the 
existing civilian performance appraisal system indicates that standards 
in performance plans are often tailored to the individual's level of 
previous performance. Hence, an employee may have been rewarded by 
basic pay step increases meeting standards of performance beneath those 
actually needed to achieve the expected organizational mission 
outcomes. Under CCAS, an employee's performance is a component of 
contribution that influences the employee's ultimate overall 
expectations and contribution assessment. CCAS promotes basic pay 
adjustment decisions made on the basis of an individual's overall 
annual contribution to the mission of the organization when compared to 
the classification and appraisal factors and an employee's contribution 
plan, expected results, and the scope, level of difficulty, and value 
of the employee's position. The three key components of CCAS are the 
appraisal process, the Integrated Pay Schedule as a mechanism to relate 
contribution to pay, and the compensation adjustment results.
2. CCAS Appraisal Process
    a. Annual Cycle. The annual appraisal cycle begins on October 1 and 
ends on September 30 of the following year. In the event a management 
decision is made to terminate the demonstration project or the 
management of an AcqDemo Participating Organization directs conversion 
of its employees out of AcqDemo to a different pay and/or personnel 
system, the annual appraisal cycle may be condensed so that a closeout 
appraisal or a closeout appraisal and a payout may be completed as 
determined appropriate. Section II.F.3.b provides additional operating 
details for situations of this type.
    b. Assessment Criteria. An employee's contribution is assessed by 
using the same set of three factors, descriptors, and discriminators 
used for classification of positions to appropriate broadband levels as 
discussed in Section II.A.3. Classification Level and Appraisal 
Factors. Taken together, these factors, descriptors, and discriminators 
capture the critical content of jobs in each career path that is 
relevant to the success of a DoD acquisition organization. Each factor 
has multiple levels of increasing contribution corresponding to the 
broadband levels. Each factor also contains descriptors and 
discriminators for each respective level within the relevant career 
path. The descriptors are written so that all factors are considered 
critical and are weighted equally. However, if pay pool panel members/
managers agree that some factors are more important than others to 
effectively accomplish the organization's mission, they may adjust the 
factor weights. The factors, descriptors, and discriminators may not be 
modified. The three factors with their descriptors and discriminators 
are located in Appendix E. In conjunction with the contribution factor 
assessment is an overall assessment of the quality of performance in 
achieving contribution results. A set of generic performance appraisal 
quality levels is provided in Table 2. A written Contribution Plan 
containing an employee's goals, objectives, and expected contribution 
in relation to each factor should be developed collaboratively by the 
supervisor and the employee working together to have a clear 
understanding of what is needed for the employee to satisfactorily and 
effectively contribute to the organization's mission. The supervisor is 
responsible for ensuring completion of the plan.
    c. Appraisal Eligibility. To be eligible for an appraisal, 
employees must be under CCAS on September 30 and have served under CCAS 
for 90 calendar days or more immediately preceding September 30 before 
they may receive an annual contribution assessment. If on October 1, 
the employee has served under CCAS for less than 90 calendar days prior 
to the end of the cycle, the rating official shall wait for the 
subsequent annual cycle to assess the employee. The first CCAS 
appraisal must be rendered within 15 months of when an employee enters 
the demonstration project. Employees who have served under CCAS for 
less than 90 calendar days immediately preceding the end of the rating 
cycle shall not receive contribution rating increases or contribution 
awards for that cycle. However, their basic pay shall be increased by 
the amount and at the time of the next General Schedule pay increase as 
adjusted by 5 U.S.C. 5303.
d. Beginning of Appraisal Cycle Activities
    (1) Contribution Planning Meeting. At the beginning of the annual 
appraisal period, a supervisor and an employee plan how the employee 
will contribute to the mission of the organization during the appraisal 
cycle. This contribution planning meeting typically includes discussion 
of career path and broadband level, contribution factors, 
organizational mission, expected contribution criteria, Expected OCS 
(EOCS), contribution results, assessment of the quality of performance, 
and career development. Normally, new employees who join AcqDemo during 
an appraisal cycle should have their contribution plan established 
within 30 days, but will not have a CCAS OCS until after their first 
annual CCAS assessment process. However, until their contribution plan 
is formalized, they may determine their EOCS range by using the 
Expected Contribution Range (ECR) calculator found on the AcqDemo Web 
site at http://acqdemo.hci.mil/tools.html under the Tools tab. Future 
CCAS assessments may alter an employee's ECR. At this time, employees 
will be advised that all factors are critical and of any factor weights 
that have been established. Key terms such as ``team'' and ``customer'' 
will be defined or clarified.
    (2) Pay Pool.
    (a) Composition. A pay pool is a group of employees among whom the 
funding allocated to CCAS is distributed. This might be all the 
employees in a division or directorate, or employees involved in the 
same type of work, e.g., supervisors. The pay pool structure and 
allocated funds are under the authority of the Head of a Participating 
Organization. The following minimal guidelines will apply. A pay pool:
    1--Is based on the organizational structure and should include a 
range of salaries and contribution levels;
    2--Should be large enough to constitute a reasonable size, i.e., 
not less than 35 individuals (when possible) or more than 300 
individuals when sensible;
    3--Should be large enough to include a second level of supervision, 
since the CCAS process uses a group of supervisors in the pay pool to 
determine OCS and recommended basic pay adjustments; and
    4--May have the pay pool manager as a member of the pay pool. 
However, the pay pool manager shall not directly influence or 
participate in the determination of his/her own contribution 
assessments, recommend his/her own individual basic pay levels, or 
establish the amount of his/her own individual basic pay levels. Also, 
the supervisors within the pay pool shall not directly influence or 
participate in the determination of their own contribution assessments, 
recommend their own individual basic pay levels, or establish the 
amount of their own individual basic pay levels.
    (b) Pay Pool Panel Process. The CCAS pay pool panel process is 
designed to validate the evaluation of contribution

[[Page 32078]]

and performance against the three factors among a group of peer 
managers from across an organization. This process works to achieve 
fairness and standard application of the factor descriptors, expected 
contribution criteria, and performance appraisal levels. At the onset 
of each appraisal period, a Personnel Policy Board or equivalent board 
verifies the accuracy of the pay pool structure for the organization, 
develops and/or validates pay pool business rules, and administers 
funds to pay pool managers. The pay pool panel is typically composed of 
the pay pool manager and those who report directly to him/her. Their 
purpose is to share a common view of the organization mission, goals, 
and objectives in reviewing the contribution and performance of 
employees by subordinate supervisors and bring a common perspective to 
how employees are evaluated and, therefore, compensated and appraised.
    (c) Funding. The funding allocation 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. The amount of 
funding available within a pay pool will be based on a balancing of 
appropriate factors, including the following: (1) General Pay Increase; 
(2) historical spending for WGI, quality step increases, and promotions 
between grades encompassed in the same broadband level; (3) awards 
(performance-based awards as defined in 5 U.S.C. 4505(a)); (4) labor 
market conditions and the need to recruit and retain a skilled 
workforce to meet the business needs of the organization; (5) the 
fiscal condition of the organization; and (6) guidance from the AcqDemo 
Program Office. The USD(P&R) may, at his/her discretion, adjust the 
minimum funding levels set forth in this paragraph to take into account 
factors such as the Department's fiscal condition, guidance from the 
Office of Management and Budget, and equity in circumstances when 
funding is reduced or eliminated for GS pay raises or awards. The pay 
pool funding allocation includes three forms of compensation:
    1--General Pay Increase (GPI). The GPI is the across-the-board 
basic pay increase authorized by law or the President for the GS under 
5 U.S.C. 5303. The funds allocated for the GPI that are not awarded may 
be transferred to either the CRI Fund or the Contribution Award (CA) 
Fund or divided among them barring any higher authority restrictions.
    2--CRI Fund. The CRI fund includes what are WGIs, quality step 
increases, and promotions between grades encompassed in the same 
broadband level. The maximum CRI funding allocation will be set each 
year by the DoD AcqDemo Program Manager with a minimum funding of not 
less than 2.0 percent of the activity's total basic pay budget. This 
figure will be adjusted by the DoD AcqDemo Program Manager as necessary 
to maintain cost discipline over the life of the demonstration project. 
The amount of funding available to each pay pool is determined annually 
by the Personnel Policy Board, or equivalent. CRI funds not awarded may 
be transferred to the CA fund based on DoD AcqDemo Program Office 
Guidance. In the event of an out-of-cycle payout, this funding floor 
may be suspended.
    3--CA Fund. The CA Fund includes what were formerly performance 
awards and will be used for awards given under the CCAS process. The CA 
funding allocation will be set at not less than 1.0 percent of an 
activity's total adjusted basic pay budget. A minimum of 10% of the CA 
fund is withheld to be used for other awards not related to the CCAS 
process, e.g., on-the-spot awards and group awards, which will continue 
to be encouraged by management to promote excellence in acquisition and 
attainment of organizational goals. CA funding not granted may not be 
transferred to other funding categories. In the event of an out-of-
cycle payout, this funding floor may be suspended.
    e. Feedback during the Appraisal Cycle. Ongoing supervisor (or 
designated rating official) and employee discussion during the 
appraisal cycle of specific work assignments, objectives, contribution 
expectations, strengths, weaknesses, and the employee's contribution 
results, and assessment of the quality of performance within the CCAS 
framework is essential. This must include discussion of any inadequate 
contribution and quality of performance in one or more of the factors. 
Approximately midway through each appraisal cycle, the supervisor will 
meet with the employee to discuss progress and make a notation of that 
discussion.
    f. Evaluation at the Conclusion of the Appraisal Cycle. The CCAS, 
using a holistic approach, provides a process that evaluates the scope 
of work, level of difficulty, value of position and contributions, 
performance rating levels, and quality of an employee's efforts in 
achieving contribution results. This methodology fosters consistency 
and equity in contribution assessments.
(1) Compensation Equity
    (a) Contribution Scores. Rating officials use the Integrated Pay 
Schedule design to assess the contribution level of work against the 
employee's current compensation level indicated by the employee's EOCS. 
Each factor will receive two types of scores, the categorical score 
assigned by the rating official, and a numerical score assigned during 
the pay pool panel process. At the end of the annual appraisal period, 
the rating official determines preliminary categorical scores. The 
categorical score is determined by comparing an employee's contribution 
results to the set of descriptors and discriminators for a particular 
factor and broadband level as a group and selecting the most 
appropriate categorical score level shown in Table 2 below. The 
numerical score is selected by a pay pool panel following further 
refinement and rank ordering of the categorical scores. The panel 
selects the numerical score from the range of scores associated with 
the specific categorical score selected as representative of an 
employee's overall contribution. The numerical scores that may be 
available for use in the assessment process depend upon the value of an 
employee's position as developed through the organization's position 
management structure and compensation strategy. Table 2 shows the 
structure for the broadband and very high score levels and their 
associated categorical scores and numerical score ranges for each 
career path. Very high scores are available to recognize an employee 
for exemplary contributions and overall quality of performance the 
results of which are substantially beyond what was expected and warrant 
a score exceeding the top score for the highest broadband level in the 
employee's career path. Very high scores for factors may only be 
assigned to employees holding a position in Level IV of the Business 
and Technical Management Professional Career Path, Level IV of the 
Technical Management Support Career Path, or Level III of the 
Administrative Support Career Path.

[[Page 32079]]



               Table 2--Contribution Categorical Scores and Numerical Score Ranges by Career Path
----------------------------------------------------------------------------------------------------------------
                                                                   Business and      Technical    Administrative
                                                                     technical     support (NJ)    support (NK)
                                                                   professional  -------------------------------
 Broadband and very high score levels      Categorical scores          (NH)
                                                                 ----------------    Numerical       Numerical
                                                                     Numerical      score range     score range
                                                                    score range
----------------------------------------------------------------------------------------------------------------
Very High Score.......................  High....................             115              95              70
                                        Medium..................             110              91              67
                                        Low.....................             105              87              64
IV....................................  High....................          96-100           79-83
                                        Med.....................           84-95           67-78
                                        Low.....................           79-83           61-66
III...................................  High....................           79-83           62-66           57-61
                                        Med.....................           67-78           52-61           47-56
                                        Low.....................           61-66           43-51           38-46
II....................................  High....................           62-66           47-51           42-46
                                        Med High................           51-61           41-46  ..............
                                        Med.....................           41-50           36-40           30-41
                                        Med Low.................           30-40           30-35  ..............
                                        Low.....................           22-29           22-29           22-29
I.....................................  High....................           24-29           24-29           24-29
                                        Med High................            6-23            6-23            6-23
                                        Low.....................             0-5             0-5             0-5
----------------------------------------------------------------------------------------------------------------

    (b) Contribution Scoring Process. The process for scoring a factor 
begins by assessing an employee's contributions and his/her results 
during the appraisal cycle in relation to his/her contribution plan, 
the factor descriptors, discriminators, and expected contribution 
criteria for the broadband level of the employee's position; and the 
assessment of quality of performance. At the end of the appraisal 
cycle, the rating official meets with his/her employees, requesting 
them to summarize the impact and quality of their contributions against 
the factor descriptions, expected contribution criteria, and the 
objectives and expectations described in their contribution plans. From 
employees' input, clients' feedback, his/her own knowledge, and other 
sources, the rating official assigns, from the appropriate career path 
broadband or very high score level for the employee's position, a 
preliminary categorical score. This step is repeated for each of the 
three factors.
    During the pay pool panel process, panel members will assign a 
numerical score from the numerical score range appropriate for the 
chosen categorical score for each factor by considering contributions 
(documented and addressed by panel members) against the factor level 
descriptors and discriminators, expected contribution criteria, the 
contribution plan, the quality of performance criteria, and the impact 
of the contributions on the organization. If the employee's 
contributions are awarded a very high score, the score must be one of 
the three numerical scores assigned to the very high score level for 
the employee's career path. At the discretion of the Pay Pool Manager, 
different weights may be applied to the factors to produce a weighted 
average, provided that the weights are applied uniformly across the pay 
pool and employees are advised in advance, i.e., at the beginning of 
the rating period. Weighting may not result in any factor becoming 
zero. The preliminary numeric scores assigned for each of the three 
factors are totaled and the sum averaged to obtain an OCS. The OCS will 
be rounded to the nearest whole number. An OCS average with a decimal 
of less than 0.5 will be rounded down to the nearest whole number. 
Averages with 0.5 and higher will be rounded up to the nearest whole 
number.
(2) Quality of Performance
    (a) Appraisal Criteria. 10 U.S.C. 1597(f) requires the 
determination of which DoD employees shall be separated from employment 
in a reduction in force to be made primarily on the basis of 
performance. In order to comply with 10 U.S.C. 1597(f), the CCAS has 
been modified to embrace the quality of performance an employee 
demonstrates in achieving his/her expected contribution results through 
an assessment of performance under each of the three contribution 
factors. Three performance appraisal levels are provided as shown in 
Table 3 below together with generic quality criteria. The performance 
level to be assigned to each contribution factor should reflect an 
employee's characteristic level of performance during the appraisal 
cycle as compared to the CCAS factor descriptors and discriminators, 
expected contribution criteria, an employee's contribution plan, and 
the impact of the quality of the contributions on the organization. A 
Participating Organization may supplement the generic criteria with 
additional standards that identify milestones, production, due dates, 
or other measureable aspects of success contributing to the 
accomplishment of the goals and objectives necessary to meet an 
organization's mission and are achievable during the appraisal cycle.

                                  Table 3--Performance Appraisal Quality Levels
----------------------------------------------------------------------------------------------------------------
             Performance appraisal level                      Performance appraisal level quality criteria
----------------------------------------------------------------------------------------------------------------
Level 5--Outstanding.................................  An employee's quality of performance exhibited in
                                                        achieving his/her contribution results substantially and
                                                        consistently surpasses the factor-specific expected
                                                        contribution criteria and the employee's contribution
                                                        plan goals and objectives.

[[Page 32080]]

 
Level 3--Fully Successful............................  An employee's performance consistently achieves, and
                                                        sometimes exceeds, the factor-specific expected
                                                        contribution criteria and his/her contribution plan
                                                        goals and objectives.
Level 1--Unacceptable................................  An employee's performance fails to meet the expectations
                                                        for quality of work and the required results for the
                                                        goals and objectives set forth in his/her contribution
                                                        plan for the appraisal cycle.
----------------------------------------------------------------------------------------------------------------

    (b) Performance Appraisal Process. The quality of performance 
appraisal is conducted in conjunction with the contribution scoring 
process. As the rating official considers such items as the employee's 
self-assessment, clients' feedback, and personal observations in 
preparation for assigning preliminary CCAS categorical scores, he/she 
will also assess the quality of the employee's performance in achieving 
his/her contribution results under each of the three contribution 
factors. A preliminary performance appraisal level of either Level 5--
Outstanding, Level 3--Fully Successful, or Level 1--Unacceptable from 
Table 3 will be assigned by the rating official to each of the three 
contribution factors. The three performance appraisal levels are 
averaged to calculate the annual rating of record. The resulting 
quotient will be rounded to the nearest tenth of a decimal point. If 
the hundredths and thousandths places of the decimal reflect forty-nine 
or less, they are dropped and the tenths place does not change. If the 
hundredths and thousandths places of the decimal is fifty or more, they 
are dropped and the tenths place is increased by ``.1''. The final 
average will then reflect the employee's overall job performance during 
the appraisal cycle based on the rating criteria outlined in Table 4.

                                            Table 4--Rating Criteria
----------------------------------------------------------------------------------------------------------------
                   Rating of record                                         Rating criteria
----------------------------------------------------------------------------------------------------------------
Level 5--Outstanding.................................  The average score of the three appraisal levels is 4.3 or
                                                        greater, with no contribution factor being rated a ``1''
                                                        (Unacceptable), resulting in a rating of record that is
                                                        a ``5''.
Level 3--Fully Successful............................  The average score of the three appraisal levels is less
                                                        than 4.3, with no contribution factor being rated a
                                                        ``1'' (Unacceptable), resulting in a rating of record
                                                        that is a ``3''.
Level 1--Unacceptable................................  Any contribution factor rated as ``1''.
----------------------------------------------------------------------------------------------------------------

    During the pay pool panel process, panel members will review the 
preliminary performance appraisal level justifications for the 
contribution factors and rating of record for all pay pool members for 
consistency and equity of application within the pay pool population 
before final approval. The average raw score of the three appraisal 
levels and the approved annual rating of record will be recorded in the 
Defense Civilian Personnel Data System. The annual rating of record 
will be recorded as a Level 5--Outstanding, Level 3--Fully Successful, 
or Level 1--Unacceptable.
    g. Pay Pool Panel Responsibilities. The pay pool panel meets at key 
points in the assessment process, e.g., following assignment of 
preliminary categorical scores, numeric score ranges, and quality of 
performance levels; after assignment of preliminary OCSs and ranking 
employees and their contributions; and/or following assignment of 
preliminary categorical scores and numeric score ranges; and/or 
following a final review of the OCS and the recommended compensation 
adjustments for employees of the pay pool. During the pay pool panel 
meetings, panel officials review contribution assessments to include 
employee feedback, rank order, contribution scores, compensation 
adjustments, performance appraisal levels, average raw score for the 
three levels, and performance rating of record for all employees, 
correcting any inconsistencies identified and making the appropriate 
adjustments.
    The pay pool panel members are encouraged to include initial rating 
officials in the process to ensure equity and consistency in the 
scoring, ranking, and appraisal of all employees and establish local 
policies and procedures to guide the inclusion of these officials in a 
uniform manner. Together, with the Pay Pool Manager, the pay pool panel 
members determine a consistent approach to involving initial rating 
officials in the process.
    Final approval of OCS, compensation adjustments, and ratings of 
record rests with the Pay Pool Manager, the individual within the 
organization responsible for managing the CCAS process. Rating 
officials will communicate the factor scores, OCS, quality of 
performance appraisal levels, average raw score, rating of record, and 
compensation adjustments to each employee and discuss the results after 
final approval by the Pay Pool Manager.
    h. Special Circumstances affecting a CCAS Assessment. When an 
employee cannot be evaluated readily by the normal CCAS appraisal 
process due to special circumstances that take the individual away from 
normal duties or duty station (e.g., long-term full-time training; 
active military duty; extended sick leave; qualified family and medical 
leave; full time union representation; leave without pay, etc.), the 
rating official will document the special circumstances on the 
appraisal form. The rating official will then determine which of the 
following five options to use, guided by local business rules and with 
consideration of any special legal entitlements such as the Uniformed 
Services Employment and Reemployment Rights Act (USERRA) which may 
affect that determination:
    (1) Use available observations and documentation to prepare an 
assessment and determine a recommended OCS and an appropriate CCAS 
overall assessment of the quality of performance appraisal level; or
    (2) Assign a Presumptive--Status 1: New AcqDemo hires with less 
than the necessary time to receive an actual CCAS contribution 
assessment.
    (3) Assign a Presumptive--Status 2: Presume the employee is 
contributing consistently with his/her EOCS representative of his/her 
basic pay level by recommending the EOCS for the OCS and Level 3--Fully 
Successful rating of record; or
    (4) Assign a Presumptive--Status 3: Recommend the pay pool panel 
re-

[[Page 32081]]

certify the employee's last contribution assessment OCS if greater than 
the current EOCS and the last CCAS rating of record if higher than the 
expected rating of record performance appraisal level. [Option (3) is 
not available (a) for first year AcqDemo assessments and/or (b) for 
employees who have changed broadband levels during the assessment 
period.]
    (5) Assign a Presumptive--Status 4: Prolonged Absence Due to Work-
related Injury or Full Time Union Representation Duties. A 
Presumptive--Status 4 may be used as a rating of record for purposes of 
RIF for those periods in which an employee did not receive a 
performance appraisal due to a prolonged absence resulting from a work-
related injury approved for compensation pursuant to an Office of 
Workers' Compensation Program or while performing the duties of a full 
time union representative. Presumptive--Status 4 is limited to only 
periods of time for which the employee has no rating of record under 
any performance management system within the four-year period preceding 
the ``cutoff date'' established for the RIF. A Presumptive--Status 4 
presumes the employee is contributing consistently with his/her EOCS 
representative of his/her basic pay level by recommending the EOCS for 
the OCS and an overall Level 3--Fully Successful rating of record.
    (6) Assign a Presumptive--Status 5: Employees Absent for Military 
Service. Employees who are absent for military service will receive a 
CCAS assessment and be assigned a rating of record provided they have 
performed work under an approved contribution plan for a minimum of 90 
calendar days. If an employee absent for military service has not 
performed work under an approved contribution plan for a minimum of 90 
days and has no rating of record under any performance management 
system within the previous four-year period, the employee will be 
presumed to be contributing consistently with his/her EOCS 
representative of his/her basic pay level and will receive the rating 
of record most frequently given among the actual ratings of record in 
the same competitive area. Employees performing military service who do 
not meet the 90-calendar day requirement but have a rating of record 
under any performance management system within the four-year period 
preceding the RIF ``cutoff date'' will receive a CCAS rating of record 
consistent with this previous rating of record and will be assigned 
their most recent rating of record as the new CCAS rating of record for 
the appraisal cycle.
    3. Integrated Pay Schedule. The CCAS Integrated Pay Schedule (IPS), 
Figure 2, is the foundation for the basic pay structure under the 
demonstration project. It provides a direct link between increasing 
levels of contribution and increasing basic pay. The IPS covers basic 
pay only and is the same for all AcqDemo employees, career paths, and 
positions regardless of geographical location. The appropriate locality 
pay is added following the determination of basic pay.
[GRAPHIC] [TIFF OMITTED] TN11JY17.002

    a. IPS Horizontal Axis. The horizontal axis of the IPS represents 
the OCS available through contribution appraisals. The OCS span from a 
score of zero to the maximum OCS of 100, with a notional ``very high 
score'' level

[[Page 32082]]

containing three scores to accommodate ``very high scores'' as 
appropriate for those employees in the top broadband level of their 
respective career paths. The ``very high scores'' of 105, 110, and 115 
are provided for employees in Broadband Level IV of the Business and 
Technical Management Professional career path; ``very high scores'' of 
87, 91, and 95 are provided for employees in Broadband Level IV of the 
Technical Management Support career path; and ``very high scores'' of 
64, 67, and 70 are provided for employees in Broadband Level III of the 
Administrative Support career path.
    b. IPS Vertical Axis. The vertical axis of the IPS spans from the 
dollar equivalent of the lowest basic pay under the AcqDemo, GS-1, Step 
1, to the dollar equivalent of the highest basic pay of GS-15, step 10. 
This encompasses the full basic pay range (excluding locality pay) 
available under AcqDemo.
    c. Normal Pay Region (NPR). The goal of CCAS is to make basic pay 
consistent with the scope, level, and difficulty of an employee's 
position and the value of his/her contributions to the mission of the 
organization. Within the full basic pay range embodied in the IPS 
vertical axis, an NPR was developed around a Standard Pay Line (SPL) to 
provide a mechanism to determine appropriate compensation. The NPR 
represents the area of the IPS where basic pay and value and level of 
contributions and position are assumed to be properly related and 
appropriately compensated. This relationship is represented by the 
marker where an employee's basic pay and OCS intersect in relation to 
the NPR and the SPL, the reference line for OCS.
    (1) SPL. The SPL begins at an OCS of zero and the basic pay of a 
GS-1, Step 1, and terminates at an OCS of 100 and the basic pay of a 
GS-15, Step 10. Changes in OCS correspond to a constant percentage 
change in basic pay along the SPL. The constant percentage change (or 
SPL factor) used to arrange OCS evenly along the SPL in 100 increments, 
where 100 is the range of OCS points, can be thought of as 
approximately a +2 percentage change in basic pay associated with a one 
score change in the OCS. The SPL factor for calendar year 2017 can be 
computed from the GS-15, Step 10 pay and the GS-1, Step 1 pay. The SPL 
factor for calendar year 2017 is 1.0200426. The SPL factor normally 
changes on an annual basis with any General Schedule base pay increase 
granted to the Federal civilian workforce.
    (2) NPR. Employees whose annual OCS plotted against their basic pay 
falls on or within the upper and lower rails of the NPR are considered 
to be in the ``Normal Pay'' Region for basic pay adjustments and 
eligible for either a performance rating of record of Level 5--
Outstanding or Level 3--Fully Successful. The upper and lower rails 
encompass an area of 8.0 scores, or 8.0 percent 
from the SPL in terms of basic pay or approximately 4.0 in 
terms of scores, relative to the SPL. Given these constraints, the 
formulae for the NPR SPL and upper and lower rails found in Figure 2 
are:

Basic Pay Upper Rail = (GS-1, Step 1) * (1.0800) * (SPL factor) \OCS\
Basic Pay SPL = (GS-1, Step 1) * (SPL factor) \OCS\
Basic Pay Lower Rail = (GS-1, Step 1) * (0.9200) * (SPL factor) \OCS\

An example calculation is provided below for an OCS of 50 and 51 using 
calendar year 2017 basic pay for GS-1, Step 1. It indicates an 
approximate 2% in basic pay between OCS along the SPL.
[GRAPHIC] [TIFF OMITTED] TN11JY17.003

    d. Overcompensated Region. Employees whose annual OCS when plotted 
against their basic pay falls above the upper rail of the NPR into the 
``overcompensated'' region are considered overpaid for their level of 
contribution and compensation adjustments, and ``unacceptable'' for 
their contribution assessment. Typically, employees who are scored 
above the upper rail into the overcompensated region are not meeting 
contribution and performance expectations and will be placed on a CIP.
    e. Undercompensated Region. Employees whose annual OCS when plotted 
against their basic pay falls below the lower rail of the NPR into the 
``undercompensated'' region are considered underpaid for their level of 
contribution and position, in the ``Undercompensated'' Category for

[[Page 32083]]

compensation adjustments, and have either a Level 5--Outstanding or 
Level 3--Fully Successful rating of record as part of their 
contribution assessment. These employees may expect to receive greater 
basic pay increases than those eligible employees who fall within the 
normal pay region.
    f. Relation to Career Paths. The IPS and the NPR are the same for 
all the career paths. What varies among the career paths are the 
beginnings and endings of the broadband levels. The minimum and maximum 
numerical OCS values and associated basic pay for each broadband level 
by career path are provided in Table 5. These minimum and maximum 
breakpoints represent the lowest and highest GS base pay for the grades 
banded together and, therefore, the minimum and maximum basic pay 
possible under AcqDemo for each broadband level.

                      Table 5--OCS and Basic Pay Ranges by Career Path and Broadband Level
                                              [Calendar year 2017]
----------------------------------------------------------------------------------------------------------------
    Broadband and very high score levels         GS grades          Numerical score range       Basic pay range
----------------------------------------------------------------------------------------------------------------
                         Business Management and Technical Management Professional (NH)
----------------------------------------------------------------------------------------------------------------
I..........................................                1-4  0-29.........................    $18,526-$33,164
II.........................................               5-11  22-66........................      28,545-68,025
III........................................              12-13  61-83........................      62,722-96,958
IV.........................................              14-15  79-100.......................     88,136-134,776
Very High Score............................                N/A  105, 110, or 115.............                N/A
----------------------------------------------------------------------------------------------------------------
                                        Technical Management Support (NJ)
----------------------------------------------------------------------------------------------------------------
I..........................................                1-4  0-29.........................      18,526-33,164
II.........................................                5-8  22-51........................      28,545-50,904
III........................................               9-11  43-66........................      43,251-68,025
IV.........................................              12-13  61-83........................      62,722-96,958
Very High Score............................                N/A  87, 91, or 95................                N/A
----------------------------------------------------------------------------------------------------------------
                                           Administrative Support (NK)
----------------------------------------------------------------------------------------------------------------
I..........................................                1-4  0-29.........................      18,526-33,164
II.........................................                5-7  22-46........................      28,545-45,970
III........................................               8-10  38-61........................      39,159-61,922
Very High Score............................                N/A  64, 67, and 70...............                N/A
----------------------------------------------------------------------------------------------------------------

    4. Compensation Adjustments. After the initial assignment into the 
CCAS, employees' yearly contributions and performance will be 
determined by the CCAS contribution assessment process described above, 
and their OCS versus their current rate of basic pay will be plotted on 
the IPS graph (Figure 3) to determine their compensation category. The 
marker at the intersection of the OCS vertical straight line with the 
current basic pay horizontal straight line respective to the 
Participating Organization's choice of target line, i.e., SPL, upper 
rail, or lower rail of the NPR, gives a relative measure of the 
compensation (basic pay) versus contribution (OCS) for pay adjustment 
and/or award determinations. The target line of the SPL, upper rail, or 
lower rail, or other target line is chosen by a Participating 
Organization to serve as a compensation strategy for CRI payouts and to 
determine the number of employees eligible to receive a CRI based on 
their position in the Normal Pay Region in relation to the target line. 
For instance, since the AcqDemo goal is to have employees' basic pay 
centered on the SPL, if the Lower Rail were used as the target line, 
fewer people would receive payouts, but those that did would receive 
larger payouts. Whereas, if the Upper Rail were used as the target 
line, more people would receive payouts, but each payout would be 
smaller. The SPL allows for something in between the upper and lower 
rail options.
    a. Compensation Categories. Employees fall into one of the three 
compensation categories: Overcompensated, appropriately compensated, or 
undercompensated.

[[Page 32084]]

[GRAPHIC] [TIFF OMITTED] TN11JY17.004

    Depending on the category into which an employee's marker falls, 
he/she may be eligible for one to three forms of additional 
compensation. The pay pool panel has the option of awarding the 
employee up to and including the full General Pay Increase (as 
authorized by law or the President), a CRI (an increase in basic pay 
and/or a CRI carryover lump sum payment for the CRI basic pay amount 
that exceeds a control point in or the maximum basic pay of an 
employee's broadband level) and/or a contribution award (a lump-sum 
payment that does not affect basic pay). In general, those employees 
whose marker plots in the undercompensated region of the IPS may 
receive greater percentage basic pay increases than those whose marker 
plots in the overcompensated region of the IPS. Employees on retained 
rate in the demonstration project will generally receive pay 
adjustments in accordance with 5 U.S.C. 5363 and 5 CFR part 536; 
however, the normal retained rate increase granted in connection with a 
general pay increase may be reduced or denied for an employee with an 
OCS above the upper rail and a performance appraisal of Level 1--
Unacceptable. An employee receiving a retained rate is not eligible for 
a contribution rating increase, since such increases are limited by the 
maximum salary rate for the employee's broadband level. Over time, 
people will migrate closer to the standard pay line and receive basic 
pay appropriate for their level of contribution and position. An 
outline of compensation eligibility by contribution category is given 
in Table 6.

                                     Table 6--Compensation Eligibility Chart
----------------------------------------------------------------------------------------------------------------
                                      General pay        Contribution
            Category                   increase         rating increase   Contribution award   Locality pay \7\
----------------------------------------------------------------------------------------------------------------
Overcompensated.................  Could be reduced    No................  No................  Yes.
                                   or denied \8\.
Appropriately Compensated.......  Yes...............  Yes \9\--Up to 6%.  Yes \10\..........  Yes.
Undercompensated................  Yes...............  Yes--Up to 20% 11   Yes...............  Yes.
                                                       12.
----------------------------------------------------------------------------------------------------------------


[[Page 32085]]

    b. Local Policy. Each Pay Pool Manager will set the necessary 
guidelines for pay adjustments in the pay pool based on guidance 
received from the organization's Personnel Policy Board, Head of the 
Participating Organization, and/or Component. Decisions will be 
consistent within the pay pool, reflect cost discipline over the life 
of the demonstration project, and be subject to review by Components 
and the DoD AcqDemo Project Office.
---------------------------------------------------------------------------

    \7\ Basic pay plus locality pay may not exceed the rate payable 
for level IV of the Executive Schedule.
    \8\ Also applies to employees on pay retention whose 
contribution and performance assessment is ``Unacceptable''.
    \9\ May not exceed upper rail of NPR for employee's OCS or 
maximum basic pay for current broadband level.
    \10\ Pay pool manager approves up to $10,000 for a contribution 
award. Amounts exceeding $10,000 not to exceed $25,000 for a 
contribution award require the Head of the Participating 
Organization approval.
    \11\ Over 20% requires approval of the Head of the Participating 
Organization.
    \12\ May not exceed 6% above the lower rail or the maximum basic 
pay for current broadband level.
---------------------------------------------------------------------------

    c. Documentation. Basic pay adjustments and cash awards will be 
documented by a SF-50, Notification of Personnel Action. The 
performance appraisal level is uploaded into DCPDS at the same time as 
the pay adjustments and cash awards. For historical and analytical 
purposes, the CCAS Appraisal Form, to include the contribution plan, 
employee self-assessment, supervisor annual assessment, effective date 
of CCAS assessments, annual performance appraisal level, contribution 
rating level, actual basic pay increases, amounts contributed to the 
pay pool, and applicable ``bonus'' amounts, will be maintained for each 
demonstration project employee. Each Participating Organization shall 
provide for maintenance of contribution-related records for their 
employees for a minimum of four years, as required in 5 CFR 293.402 and 
404.
    5. CIP Process.
    a. Regulatory Coverage. This section applies to reassignment, 
reduction in broadband level with or without a reduction in pay; 
reduction in pay with or without a reduction in broadband level; or 
removal of demonstration project employees based solely on inadequate 
contribution. Inadequate contribution is identified by the employee's 
annual CCAS contribution assessment resulting in an OCS falling above 
the upper rail of the NPR (which normally occurs at either a -3 or -4 
OCS or greater negative number) and an unacceptable rating of record, 
or the deterioration of an employee's contribution during the appraisal 
year such that, if rated, the employee would receive an OCS score above 
the upper rail of the NPR and an unacceptable performance appraisal 
level on at least one of the three contribution appraisal factors; or 
by a combination of these results. An inadequate contribution 
assessment in any one contribution factor at any time during the 
appraisal period is considered grounds for the initiation of a CIP that 
may result in reassignment, reduction in pay, or removal action, 
hereafter referred to as contribution-based actions. The following 
procedures replace those established in 5 U.S.C. 4303 pertaining to 
reductions in grade or removal for unacceptable contribution except 
with respect to appeals of such actions. As is currently the situation 
for contribution-based actions taken under 5 U.S.C. 4303, inadequate 
contribution-based actions shall be sustained if the decision is 
supported by substantial evidence and the Merit Systems Protection 
Board shall not have mitigation authority with respect to such actions. 
The separate statutory authority to take inadequate contribution-based 
actions under 5 U.S.C. chapter 75, as modified in the waiver section of 
this notice (Section VII), remains unchanged by these procedures.
    b. CIP. When a supervisor determines during or at the end of the 
appraisal period that an employee is not completing work assignments 
adequately, the supervisor must make a determination as to whether the 
employee is contributing inadequately in one or more of the 
contribution factors and/or quality of performance levels. All 
contribution factors are considered critical elements. A determination 
of inadequate contribution must be made by comparing the employee's 
contribution to the expected contribution criteria in the appraisal 
factors as well as the contribution expectations established in the 
employee's CCAS Contribution Plan covering the factors and fully 
successful performance.
    If an employee's annual CCAS assessment or a contribution 
assessment during the appraisal year results in the need for a CIP, the 
supervisor must inform the employee, in writing, that he/she will be 
placed on a CIP and that, unless the employee's contribution increases 
such that the OCS would be scored in the NPR, contribution would be 
considered fully successful, and this level of effort is sustained, he/
she may be subject to one of the previously listed contribution-based 
actions. If an employee is placed on a CIP near the end of the 
appraisal cycle, the CIP may not extend past October 31, with a 
decision rendered no later than November 15.
    When the rating official informs the employee of possible 
contribution-based actions that may occur, the rating official will 
afford the employee a reasonable opportunity to demonstrate acceptable 
contribution and/or performance with regard to identifiable factors. A 
CIP must provide the employee this opportunity to demonstrate adequate 
contribution. The CIP will state the preliminary factor scores above 
the upper rail, how the employee's contribution and/or performance are 
inadequate, what improvements are required, recommendations on how to 
achieve adequate contribution and/or performance, assistance that the 
agency shall offer to the employee in improving inadequate 
contribution, and consequences of failure to improve. Additionally, the 
CIP will normally include a clarification (or further clarification) of 
the meaning of terms used in the employee's specific responsibilities 
and assignments described under the appraisal factors.
    Once an employee has been afforded a reasonable CIP opportunity to 
demonstrate adequate contribution and/or performance but fails to do so 
and receives an unacceptable rating of record based on the CIP, a 
reassignment, reduction in broadband level with or without a reduction 
in pay, reduction in pay with or without a reduction in broadband 
level, or removal action may be proposed in accordance with 5 U.S.C. 
4303 and related OPM regulations under 5 CFR part 432. This 
unacceptable rating of record will be considered an official rating of 
record for RIF purposes whether it is issued during an appraisal cycle 
or as an annual rating of record. If it is an employee's most recent/
current rating of record in the four-year period preceding a RIF, the 
employee would be listed on the Master Retention List in the category 
Tenure Group I--Current Unacceptable Performance Appraisal.
    If the employee's contribution increases to an adequate level and 
is again determined to deteriorate in any factor within two years from 
the beginning of the opportunity period, actions may be initiated to 
effect a contribution-based action with no additional opportunity to 
improve. If an employee has contributed adequately for two years from 
the beginning of a CIP opportunity period, and the employee's overall 
contribution once again declines to an inadequate level, the employee 
will be afforded an additional opportunity to demonstrate

[[Page 32086]]

adequate contribution before it is determined whether or not to propose 
a contribution-based action.
    An employee who is subject to a proposed contribution-based action 
is entitled to a 30-day advance notice of the proposed action that 
identifies specific instances of inadequate contribution by the 
employee on which the action is based. The employee will be afforded a 
reasonable time to answer the notice of proposed action orally and/or 
in writing.
    A decision to pursue a contribution-based action on an employee for 
inadequate contribution may be based only on those instances of 
inadequate contribution that occurred during the two-year period ending 
on the date of issuance of the proposed action. The employee will be 
issued written notice at or before the time the action will be 
effective. Such notice will specify the instances of inadequate 
contribution by the employee on which the action is based and will 
inform the employee of any applicable appeal or grievance rights.
    c. Inadequate Contribution under 5 U.S.C. 7512. Employees may also 
be removed or reduced in broadband level based on inadequate 
contribution (which inherently addresses performance) under the 
provisions of 5 U.S.C. 7512.
    d. Procedural and Appeal Rights. All procedural and appeal rights 
set forth in the applicable statute and related OPM regulations will be 
afforded to demonstration project employees reassigned, removed, or 
reduced in level for inadequate contribution.
    e. Documentation. All relevant documentation concerning a 
contribution-based action that is based on a determination of 
inadequate contribution will be preserved and made available for review 
by the affected employee or a designated representative in accordance 
with the employee's DoD Component policy for records management. At a 
minimum, the records, in accordance with 5 CFR 432.107, will consist of 
a copy of the notice of proposed action; the written answer of the 
employee or a summary when the employee makes an oral reply; and the 
written notice of decision and the reasons thereof, along with any 
supporting material including documentation regarding the opportunity 
afforded the employee to demonstrate adequate contribution.
    6. CCAS Grievance Procedures.
    a. Bargaining Unit Employees. Bargaining unit employees who are 
covered under a collective bargaining agreement may grieve CCAS pay 
determinations and performance appraisal levels under the grievance-
arbitration provisions of the agreement. The negotiated grievance 
procedure shall be the sole and exclusive procedure for resolving such 
grivances. If an employee is in a bargaining unit in which grievances 
over appraisal scores have been excluded from the negotiated grievance 
procedure, the employee may use the administrative grievance procedure 
(5 CFR part 771) with supplemental instructions described in paragraph 
b below.
    b. Administrative Grievance Procedures. Employees not included in a 
bargaining unit may grieve the contribution assessment which includes 
the OCS and performance appraisal levels received under the CCAS using 
procedures established under the appropriate Administrative Grievance 
Procedures (5 CFR part 771). Under these procedures, the employee's 
grievance will first be considered by the rating official who reviews 
and submits a recommendation to the pay pool panel. The pay pool panel 
may accept the rating official's recommendation or reach an independent 
decision. In the event that the pay pool panel's decision is different 
from the rating official's recommendation, appropriate justification 
will be provided. The pay pool panel's decision is final unless the 
employee requests reconsideration by the next higher official to the 
Pay Pool Manager. That official would then render the final decision on 
the grievance.

E. Employee Development

1. Academic Degree and Certificate Training
    Trained and educated personnel are a critical resource in an 
acquisition organization. This demonstration supports the concept that 
well-developed training and development programs are essential to 
improving the performance of AWF individuals and those employees in 
direct support positions to the AWF, thus raising the overall level of 
performance of the AWF as well as serving as a valuable tool for 
recruiting and retaining motivated employees. AWF members have a 
continuous learning (CL) requirement to ensure maintenance of currency 
in their career field. They must earn a minimum of 80 CL points every 
two years. Some have specific education and/or statutory requirements 
depending on their career field. In addition, all acquisition positions 
have certification requirements whereby AWF members must become 
certified in their primary career field at the level required within 24 
months of assignment. Currently, DAWIA authorizes degree and 
certificate training for acquisition-coded positions. This 
demonstration extends that authority and expands its coverage to the 
acquisition direct support positions included in the project. It also 
provides authorization at the local level to administer and pay for 
these degree and certificate training programs. This authorization will 
facilitate continuous attainment of advanced, specialized knowledge 
essential to the AWF and its direct support employees. It also provides 
a capability to assist in the recruiting and retaining of personnel 
critical to the present and future requirements of the AWF.
    A Participating Organization may require an employee who 
participates in training to continue to work in that organization for 
at least three times the length of the training period. The service 
obligation begins when the training is completed. Funding for this 
training, while potentially available from numerous sources (including 
DAWDF for employees in acquisition-coded positions), is the 
responsibility of the Participating Organization.
2. Sabbaticals
    Organizations participating in the acquisition demonstration 
project will have the authority to grant sabbaticals without 
application to higher levels of authority. These sabbaticals will 
permit employees to engage in study or work experience that contributes 
to their development and effectiveness. The sabbatical provides 
opportunities for employees to acquire knowledge and expertise that 
cannot be acquired in the standard working environment. These 
opportunities should result in enhanced employee contribution. The 
spectrum of available activities under this program is limited only by 
the constraint that the activity contribute to the organization's 
mission and to the employee's development. The program can be used for 
training with industry or on-the-job work experience with public, 
private, or nonprofit organizations. It enables an employee to spend 
time in an academic or industrial environment or to take advantage of 
the opportunity to devote full-time effort to technical or managerial 
research.
    The acquisition demonstration project sabbatical program will be 
available to all demonstration project employees who have seven or more 
years of Federal service. Each sabbatical will be of three to twelve 
months' duration and must result in a product, service, report, or 
study that will benefit the acquisition community as well as increase 
the employee's individual effectiveness. Requests for a sabbatical must 
be made

[[Page 32087]]

by the employee through the chain of command to the Participating 
Organization's management official, who has final approval authority 
and who must ensure that the program benefits both the acquisition 
workforce and the individual employee. Funding for the employee's 
salary and other expenses of the sabbatical is the responsibility of 
the Participating Organization.
    Employees approved for a paid sabbatical must sign a service 
obligation agreement to continue in service in the covered 
organizations for a period of three times the length of the sabbatical. 
The service obligation begins when the training is completed. 
Sabbaticals approved prior to the effective date of this FRN are not 
subject to the service obligation requirement. If an employee 
voluntarily leaves the covered organizations before the service 
obligation is completed he/she is liable for repayment of expenses 
incurred by the covered organizations that are associated with training 
during the sabbatical. Expenses do not include salary costs. The 
delegated sabbatical approving management official of the Participating 
Organization has the authority to waive this requirement.
    3. Student Intern Relocation Incentive. Recruitment of students is 
often limited to the local commuting area of the employing organization 
as college students frequently cannot afford to relocate to accept 
student intern job offers in a commuting area different from that of 
the college/university they are attending or their permanent home 
residence. To alleviate this barrier and to further Better Buying Power 
3.0 initiatives to recruit the next generation of high performers to 
sustain and promote professionalism in the acquisition workforce, the 
Head of the Participating Organization may approve relocation 
incentives for new student interns and relocation incentives to student 
interns whose worksite is in a different geographic location than that 
of the college/university enrolled or their permanent home residence 
each time the student interns return to duty at their official 
worksites.

F. Movement Into and From AcqDemo

1. Management-Directed Conversion into the Demonstration Project
    a. Conversion from the GS Pay System. An employee who is converted 
into AcqDemo with his/her organization will have an automatic 
conversion from his/her permanent GS grade rate of pay of record at 
time of conversion into the new broadband system. Initial entry into 
the AcqDemo for covered employees will occur through a full employee 
protection approach that ensures each employee's initial placement into 
a broadband level without loss of pay.
    (1) WGI Buy-Ins. Rules governing WGIs within each Participating 
Organization will remain in effect until an employee's conversion date. 
Implementation of the AcqDemo broadbanding pay structure eliminates the 
WGI increments of the current GS pay structure. To facilitate 
conversion and employee acceptance of the new system, eligible 
employees will receive a basic pay increase for that portion of their 
next WGI corresponding to the weeks of service in-step they have 
completed up to the effective date of their conversion so that they 
will not feel they are losing pay or a pay entitlement accrued under 
the GS system.
    Employees on a Performance Improvement Plan (PIP) will remain in 
their current system until the conclusion of the PIP and a decision is 
rendered. If the PIP results in a current rating of record of 
satisfactory performance or better, the employees will be eligible for 
a WGI buy-in upon conversion. Employees will not be eligible for the 
WGI buy-in if their current rating of record is unacceptable at the 
time of conversion. Employees at step 10, or receiving retained pay at 
the time of conversion will not be eligible for a WGI buy-in.
    (2) Career-Ladder Promotion Buy-Ins. For those GS employees in 
career-ladder promotion programs who are scheduled to be promoted to a 
higher grade and whose performance is at least fully successful, basic 
pay will be increased by a prorated share of the current value of the 
next scheduled promotion increase based upon the actual number of weeks 
the employee has completed towards the next scheduled promotion as of 
the employee's conversion date. No WGI buy-in will be made if the 
employee's pay is adjusted for a promotion that would be effective 
before the next scheduled WGI.
    (3) Special salary rates. Special salary rates will no longer be 
applicable to demonstration project employees. Employees on special 
salary rates at the time of conversion will receive a new basic rate of 
pay computed by dividing their highest adjusted rate of basic pay 
(i.e., special pay rate, or if higher, the locality rate) by the 
special pay rate factor or the locality pay factor for their area. All 
employees will be eligible for the future locality pay increases of 
their geographic area. When conversion into the demonstration project 
is accompanied by a simultaneous geographic move, the employee's GS 
basic pay entitlements (including any locality or special rate) in the 
new area will be determined before converting the employee's pay to the 
demonstration project basic pay system. A full locality adjustment will 
then be added to the new basic pay rate.
    (4) Employees on Term and Temporary Appointments. (a) Employees 
serving under term appointments at the time of conversion to the 
demonstration project will be converted to a modified term appointment 
provided they were hired for their current positions under competitive 
procedures. These employees will be eligible for conversion to career 
or career-conditional appointments in the competitive service provided 
they:
    1--Have served two years of continuous service in the term 
position;
    2--Were selected for the term position under competitive 
procedures; and
    3--Are contributing at an adequate contribution level, or meeting 
fully successful performance objectives, or their equivalent, in non-
AcqDemo performance management systems.
    Converted term employees who do not meet these criteria may 
continue on their term appointment up to the not-to-exceed date 
established under their current appointment. Extensions of term 
appointments for employees who do not meet the above criteria may be 
granted after conversion in accordance with the provision of this 
regulation.
    (b) Employees serving under temporary appointments when their 
organization converts to the demonstration project will be converted 
and may continue on their temporary appointment up to their 
established, current not-to-exceed date.
    Extensions of temporary appointments after conversion may be 
granted in accordance with 5 CFR 213.104 for excepted service employees 
and 5 CFR part 316, subpart D, for competitive service employees.
    (5) Probationary Periods.
    (a) Initial Probationary Period. Employees who have completed an 
initial probationary period prior to conversion to AcqDemo will not be 
required to serve a new initial probationary period. Employees who are 
serving an initial probationary period upon conversion to AcqDemo will 
serve the time remaining on their initial probationary period and may 
have their initial probationary period extended in accordance with DoD 
and demonstration project regulations and implementing issuances.
    (b) Supervisory Probationary Periods. Employees transitioning to 
AcqDemo who are serving a supervisory

[[Page 32088]]

probationary period upon conversion to AcqDemo will serve the time 
remaining on their supervisory probationary period. Converting 
employees who have completed a supervisory probationary period in their 
current position prior to conversion to AcqDemo will not be required to 
serve a new supervisory probationary period in that position. However, 
an additional supervisory probationary period of one year may be 
required if the employee is officially assigned to a different 
supervisory position that constitutes a major change in supervisory 
responsibilities from any previously held supervisory position.
    (6) Retained Pay. If the employee's rate of basic pay exceeds the 
maximum rate of basic pay for the broadband level corresponding to the 
employee's GS grade, the employee will remain at that broadband level 
and will receive a retained rate. The retained rate will be the total 
of the employee's basic pay and locality or special pay.
    b. Conversion from Other Personnel Pay Systems. Employees who enter 
this demonstration project from other personnel pay systems (e.g., 
Defense Civilian Intelligence Personnel System or an STRL Demonstration 
Project) due to a reorganization, mandatory conversion, Defense Base 
Realignment and Closure process, or other directed action will be 
converted into the AcqDemo via movement of their positions using an 
appropriate Nature of Action Code. Employees' positions will be 
classified based upon the position classification criteria and 
broadband level definitions under the AcqDemo rules and their pay, upon 
conversion, maintained under AcqDemo pay setting rules. In addition, 
the provisions of Section II.F.1(a)(4), (5), and (6) are applicable to 
conversions from other personnel and pay systems.
    2. Non-AcqDemo Federal Employees Voluntarily Joining AcqDemo. 
Federal employees entering into the AcqDemo from the GS or other pay 
systems not as the result of a conversion will be moved into a career 
path and broadband level with basic pay set in accordance with AcqDemo 
guidance and reflective of the duties and responsibilities of the 
AcqDemo position and an individual's qualifications. Highest previous 
rate as defined in Section II.C.13 and AcqDemo internal guidance may 
provide an appropriate tool for establishing basic pay in this 
instance. The move will be described using the appropriate nature of 
action, e.g., promotion, reassignment, transfer, etc., as provided by 
the OPM's Guide to Processing Personnel Actions; the AcqDemo specified 
NOAC; and the AcqDemo Legal Authority Code Z2W, Public Law 111-383.
3. Movement From the Demonstration Project
    a. Effect of Reorganizations. 10 U.S.C. 1762(d) provides that an 
AcqDemo organization that loses, due to reorganization, the one-third, 
two-thirds personnel demographic eligibility required for continued 
inclusion in AcqDemo may continue to participate in the AcqDemo 
project. Continued participation may be contingent upon such items as 
the amount of reduction in the number and/or kinds of positions to be 
counted for the one-third, two-thirds demographic eligibility 
requirement; degree of personnel involvement in an organization with an 
acquisition mission to acquire necessary supplies, equipment, and 
services to support the warfighter and DoD support staff; scope of 
direct support to an acquisition workforce organization or closely 
related functional area; and/or the primary personnel system utilized 
by the gaining organization.
    AcqDemo organizations affected by reorganization, realignment, 
consolidation, or other organizational changes that may impact the one-
third, two-thirds personnel demographic eligibility requirement are to 
contact the AcqDemo Program Manager expeditiously to discuss the 
workforce changes in relation to continued AcqDemo participation. The 
AcqDemo Program Manager will decide the additional information that 
needs to be included in the organization's request for continued 
participation. The organization will submit a request for continued 
participation in accordance with the DoD AcqDemo Program Office's 
internal implementing guidance. The AcqDemo Program Office will review 
the rationale for and the data supplied in support of continued 
participation; conduct periodic audits of the participating 
organizations' populations as appropriate; and request additional 
details or formal documentation as needed. Based on an assessment of 
the information provided, the AcqDemo Program Manager will approve or 
disapprove the participation including any pertinent comments.
    b. Conversion to a Different Pay and/or Personnel System. Prior to 
a management directed conversion of any AcqDemo organization and its 
employees to a different pay and/or personnel system, a CCAS closeout 
appraisal may be accomplished and an out-of-cycle payout may be made. 
CCAS closeout and payout procedures would be followed except that 
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. After making the out-of-cycle payout, conversion of 
employees covered by this demonstration project to another pay and/or 
personnel system shall be accomplished in accordance with the gaining 
system's implementing issuances.
    c. Employee returns to the GS System. If a demonstration project 
employee is moving to a GS position, or if the project ends and each 
project employee must be converted back to the GS system, the following 
procedure will be used to translate the employee's project broadband 
level to an equivalent GS grade and the employee's demonstration rate 
of pay to an equivalent GS rate of pay. The equivalent GS grade and GS 
rate of pay must be determined before movement or conversion out of the 
demonstration project and any accompanying geographic movement, 
promotion, or other simultaneous action. For conversions upon 
termination of the project and for lateral assignments, the equivalent 
GS grade and rate will become the employee's actual GS grade and rate 
after leaving the demonstration project (before any other action). For 
transfers, promotions, and other actions to the GS system, the 
equivalent GS grade and pay rate will be used by the gaining personnel 
office in applying the GS pay administration rules applicable in 
connection with the employee's movement out of the project (e.g., 
promotion rules, highest previous rate rules, pay retention rules) as 
if the GS-equivalent grade and pay rate were actually in effect 
immediately before the employee left the demonstration project. The 
losing organization will document an employee's equivalent GS grade and 
pay rate in the remarks section of the official SF-50, Notification of 
Personnel Action, used to move the employee from the AcqDemo 
organization.
    d. Employee moves to a Non-GS System. An equivalent GS grade and 
pay rate is determined for an employee who leaves AcqDemo for a 
position in a non-GS system using the same calculation as when an 
employee moves to a GS position. The losing organization will ensure 
documentation of an employee's equivalent GS grade and pay rate in the 
remarks section of the official SF-50 used to move the employee from 
the AcqDemo organization. It is the responsibility of the gaining 
organization to establish the level of the employee's new position and 
the appropriate pay under the pay system for that organization. The 
equivalent GS grade and pay

[[Page 32089]]

information provided may assist in this process.
    e. Determining an Equivalent GS Grade. Each broadband level in this 
demonstration project encompasses two or more grades. An employee is 
determined to have a GS-equivalent grade corresponding to one of those 
grades according to the following rules:
    (1) The employee's adjusted rate of basic pay under the 
demonstration project, which includes any locality payment, is compared 
with the step four rate in the highest applicable GS rate range. For 
this purpose, a GS rate range includes a rate range in:
    (a) The GS base schedule;
    (b) The locality rate schedule for the locality pay area in which 
the position is located; or
    (c) The appropriate special rate schedule for the employee's 
occupational series, as applicable. If the series is a two-grade-
interval series, only odd-numbered grades are considered below GS-11.
    (2) If the employee's adjusted demonstration project rate of pay 
equals or exceeds the applicable step four rate of the highest GS grade 
in the broadband, the employee is converted to that grade.
    (3) If the employee's adjusted demonstration project rate of pay is 
lower than the applicable step four rate of the highest grade, the 
adjusted rate is compared with the step four rate of the second-highest 
grade in the employee's broadband. If the employee's adjusted rate 
equals or exceeds the step four rate of the second-highest grade, the 
employee is converted to that grade.
    (4) This process is repeated for each successively lower grade in 
the broadband until a grade is found in which the employee's adjusted 
demonstration project rate of pay equals or exceeds the applicable step 
four rate of the grade. The employee is then converted at that grade. 
If the employee's adjusted rate of pay is below the step four rate of 
the lowest grade in the broadband, the employee is converted to the 
lowest grade.
    (5) Exception: An employee will not be converted to a lower grade 
than the grade held by the employee immediately preceding a conversion, 
lateral assignment, or lateral transfer into the demonstration project, 
unless, since that time the employee has undergone a reduction in 
broadband level or reduction in pay based upon an adverse action, a 
contribution-based action, a reduction-in-force action, or a voluntary 
change to lower broadband level.
    (6) Exception: If the employee's adjusted demonstration project 
rate exceeds the maximum rate of the grade assigned under the above-
described step 4 rule but fits in the rate range for the next higher 
applicable grade (i.e., between step 1 and step 4), then the employee 
shall be converted to that next higher applicable grade.)
    f. Determining an Equivalent GS Rate of Pay. An employee's pay 
within the equivalent GS grade is set by converting the employee's 
demonstration project rate of pay to a GS rate of pay in accordance 
with the following rules:
    (1) The pay conversion is done before any geographic movement or 
other pay-related action that coincides with the employee's movement or 
conversion out of the demonstration project.
    (2) An employee's adjusted rate of basic pay under the 
demonstration project (including any locality payment) is converted to 
a GS rate on the highest applicable rate range for the converted GS 
grade. For this purpose, a GS rate range includes a rate range in:
    (a) The GS base schedule,
    (b) An applicable locality rate schedule, or
    (c) An applicable special rate schedule.
    (3) If the highest applicable GS rate range is a locality pay rate 
range, the employee's adjusted demonstration project rate is converted 
to a GS locality rate of pay. If this rate falls between two steps in 
the locality-adjusted schedule, the rate of pay must be set at the 
higher step. The converted GS unadjusted rate of basic pay would be the 
GS base rate corresponding to the converted GS locality rate (i.e., 
same step position).
    (4) If the highest applicable GS rate range is a special rate 
range, the employee's adjusted demonstration project rate is converted 
to a special rate. If this rate falls between two steps in the special 
rate schedule, the rate must be set at the higher step. The converted 
GS unadjusted rate of basic pay will be the GS rate corresponding to 
the converted special rate (i.e., same step position).
    g. Retained Pay. If an employee is receiving a retained rate under 
the demonstration project, the employee's GS-equivalent grade is the 
highest referenced grade encompassed in his/her broadband level. The 
employee's GS-equivalent rate of pay will equal the employee's retained 
rate.
    h. WGI-Equivalent Increase Determination.
    Service under the demonstration project is potentially creditable 
for WGI waiting period purposes under 5 CFR 531.405(b) upon conversion 
back to the GS pay system. An equivalent increase under 5 CFR 
531.407(b) is considered to occur at the time of an AcqDemo:
    (1) Promotion to a higher broadband level, including a zero basic 
pay increase (unless the promotion is cancelled and the employee's rate 
of basic pay is redetermined as if the promotion had not occurred), 
e.g., the termination of a temporary promotion.
    (2) CCAS basic pay increase (including a zero increase). The date 
of the last equivalent increase, based on the opportunity to receive a 
CCAS basic pay increase, is the first day of the first pay period 
beginning on or after January 1.
    (3) WGI buy-in and/or Career Ladder promotion buy-in granted 
immediately upon movement to the AcqDemo from another pay system.
    (4) ACDP basic pay adjustment.
    (5) Use of HPR when basic pay is set at a rate above the rate that 
would be established using normal AcqDemo pay setting rules.
    i. Quality of Performance. The most recent CCAS annual or interim 
rating of record will be provided for use by the gaining activity.

G. Training for AcqDemo

    1. Introduction. The key to the success or failure of the proposed 
demonstration project will be the training provided. This training 
provides not only the necessary knowledge and skills to carry out the 
proposed changes, but will also lead to participant commitment to the 
program.
    2. Roles and Responsibilities.
    a. AcqDemo Program Office. Training for new organizations wishing 
to convert to the demonstration project will be provided by the DoD 
AcqDemo Program Office to supervisors, employees, and the 
administrative staff responsible for assisting managers in effecting 
the changeover and operation of the new system. The Program Office will 
be responsible for providing policy notifications as they occur.
    b. Participating Organizations. Sustainment training will be the 
responsibility of the participating organization.
    3. Conversion Training.
    a. Subject Matter. The elements to be covered in the orientation 
portion of this training will include:
    (1) A description of the personnel system;
    (2) How employees are converted into and out of the system;
    (3) The pay adjustment and/or bonus process;
    (4) The new position requirements document;
    (5) The new classification system; and
    (6) The Contribution-based Compensation and Appraisal System.
    b. Target Audiences.

[[Page 32090]]

    (1) Supervisors. The focus of this project on management-centered 
personnel administration, with increased supervisory and managerial 
personnel management authority and accountability, demands thorough 
training of supervisors and managers in the knowledge and skills that 
will prepare them for their new responsibilities. Training will include 
detailed information on the policies and procedures of the 
demonstration project, as well as skills training in using the 
classification system, position requirements document, and contribution 
evaluation software.
    (2) Human Resources/Pay Pool Administrative Staff. Human Resources 
Specialists and Pay Pool Administrative Officers will play a key role 
in advising, training, and coaching supervisors and employees in 
implementing the demonstration project. This staff will receive 
training in the procedural and technical aspects of the project.
    (3) Employees. In the months prior to implementation, the 
demonstration project team and Participating Organization training and 
career development offices will provide workforce training through 
various media. This training is intended to inform the workforce of 
project features and to prompt the development of local procedures and 
processes to implement the changes.

III. Evaluation Plan

A. Internal Evaluation

    Demonstration-authorizing legislation (5 U.S.C. 4703) mandates 
evaluation of the demonstration project to assess the effects of 
project features and outcomes. In addition, the project will be 
evaluated to determine the feasibility of application to other Federal 
Agencies. The overall Program Management evaluation will consist of two 
components--internal and external evaluation. The internal evaluation 
will be ongoing and accomplished by the staff of the AcqDemo Program 
Office, to include contracted resources, and the results reviewed by 
the Executive Council. The main purpose of the internal evaluation is 
to determine the effectiveness of the personnel system in meeting the 
needs of the Defense Acquisition Workforce.

B. External

    External evaluations will be conducted on a regular basis as 
prescribed by the Secretary. The Secretary may designate an independent 
evaluator to conduct the external assessments with the results overseen 
by the Undersecretary of Defense (Acquisition, Technology & Logistics)/
Human Capital Initiatives; and the Deputy Assistant Secretary of 
Defense (Civilian Personnel Policy).

C. Purpose

    The evaluations are conducted to determine the effectiveness of the 
personnel system changes implemented. To the extent possible, strong 
direct or indirect relationships will be established between the 
demonstration project features, outcomes, mission-related changes, and 
personnel system effectiveness criteria. The evaluation approach uses 
an intervention impact model that specifies each personnel system 
change as an intervention, the expected effects of each intervention, 
the corresponding measures, and the data sources for obtaining the 
measures. Appendix F presents the Intervention Impact Evaluation Model 
to be used for this demonstration project for initiatives affecting 
title 5 U.S.C. and title 5 CFR.

IV. Project Duration

    The Demonstration Project has been extended by statute three times 
as indicated below:
    1. Section 813 of the Bob Stump NDAA for FY 2003 (Pub. L. 107-314, 
116 Stat. 2609) extended the authority to conduct the AcqDemo until 
September 30, 2012;
    2. Section 872 of the Ike Skelton NDAA for FY 2011 (Pub. L. 111-
383, 124 Stat. 4300, 4302) extended the authority to conduct the 
AcqDemo Program until September 30, 2017; and
    3. Section 846 of the NDAA for FY 2016 (Pub. L. 114-92) extended 
the termination date for the AcqDemo Project to December 31, 2020.

V. Demonstration Project Costs

    The AcqDemo Project requires a cost-disciplined approach to 
maintain cost control. While this approach does not require cost 
neutrality, it does require a continued comparison with the Government-
wide system to ensure an effective balance between cost, and personnel 
management benefits such as improved organizational communication, and 
greater recognition of higher contributors, leading to increased 
retention rates and savings in turnover costs and loss of skills. This 
cost-disciplined approach also requires Participating Organizations to 
consider and implement a logical and effective compensation management 
strategy, aimed at providing the appropriate level of compensation for 
the contribution expended in accomplishing work at an assigned level.
    To promote cost accountability, project and pay pool managers are 
required to consider both the short- and long-term implications of pay-
related decisions on payroll and benefit costs, including decisions 
regarding the size of pay pools and policies on developmental and 
promotion pay increases. To support decision making and evaluations, 
annual data will be collected on key cost-related matters, including 
spending on CRIs, developmental increases, and promotion pay increases 
(expressed as a percentage of total basic payroll, on both a project-
wide and individual pay pool basis).
    The funding parameters for contribution increases in the out-years 
will be determined as part of the annual project evaluation process, as 
well as giving consideration to any funding limitations impacting the 
Department. Annual funding guidance will then be reported by the 
Program Manager to the AcqDemo Executive Council. As part of the 
evaluation of the project by Participating Organizations, the AcqDemo 
Program Management Office, and DoD, the basic pay costs (including 
average basic pay, average starting salaries, overall and by employee 
subcategories) under the demonstration project will be tracked and 
compared to the basic pay costs under similar demonstration projects 
and under a simulation model that replicates GS spending. These 
evaluations will balance costs incurred against benefits gained, so 
that both fiscal responsibility and project success are given 
appropriate weight.

VI. Automation Support

    One of the major goals of the demonstration project is to 
streamline the personnel processes to increase efficiency, 
effectiveness, agility, and cost discipline. Automation must play an 
integral role in achieving that goal. Without the necessary automation 
to support the interventions proposed for the demonstration project, 
optimal benefits cannot be realized. In addition, adequate information 
to support decision making must be available to managers if line 
management is to assume greater authority and responsibility for human 
resources management. Automation to support the demonstration project 
is required at the DoD level to facilitate processing and reporting of 
demonstration project personnel actions, and may be ultimately required 
by the Participating Organizations to assist in processing a variety of 
personnel-related actions in order to facilitate management processes, 
evaluation of interventions, and decision making. The DCPDS is the 
DoD's authoritative personnel data

[[Page 32091]]

system of record and will be the primary system for personnel data used 
in dedicated electronic applications needed to process and evaluate a 
variety of actions associated with AcqDemo initiatives such as 
streamlined hiring and movement of employees; contribution-based 
appraisal compensation; accelerated compensation for developmental 
positions; supervisory and team leader cash differentials; staffing 
supplements; and sabbaticals.

VII. Required Waivers to Law and Regulations

A. General

    In addition to the authorities granted by 10 U.S.C. 1762 and 5 
U.S.C. 4703, the following are waivers of law and regulation that will 
be necessary for implementation and sustainment of the demonstration 
project. In due course, additional laws and regulations may be 
identified for a waiver request. The following waivers and adaptations 
of certain title 5 U.S.C. and title 5 CFR provisions are required only 
to the extent that these statutory and regulatory provisions limit or 
are inconsistent with the actions contemplated under this demonstration 
project. Nothing in this plan is intended to preclude the demonstration 
project from adopting or incorporating any law or regulation enacted, 
adopted, or amended after the original effective date, January 8, 1999, 
of this demonstration project.

B. Waivers to Title 5, U.S.C.

    Chapter 5, Section 552a: Records maintained on individuals. This 
section is waived only to the extent required to clarify that 
volunteers under the Voluntary Emeritus Program are considered 
employees of the Federal Government for purposes of this section.
    Chapter 31, Section 3111: Acceptance of volunteer service. This 
section is amended to allow for a Voluntary Emeritus Corps in addition 
to student volunteers.
    Chapter 33, Subchapter I--Examination, Certification, and 
Appointment: Waived except for sections 3302, 3321, and 3328 to allow 
direct hire authority for (1) qualified candidates with bachelor's or 
advanced degrees required by OPM or DoD qualification standards to 
qualify for AWF positions in a critical acquisition career field 
classified to the Business and Technical Management Professional, NH, 
career path; (2) qualified veteran candidates for AWF positions in a 
critical acquisition career field classified to either the Business and 
Technical Management Professional, NH, career path or to the Technical 
Management Support, NJ, career path; (3) candidates enrolled in a 
program of undergraduate or graduate instruction at an institution of 
higher education leading to a baccalaureate degree or an advanced 
degree in a course of study required by OPM or DoD qualification 
standards or a degree the completion of which (including any additional 
essential credit hours in an acquisition-related field as appropriate) 
provides competencies, knowledge, skills, etc., directly linked to an 
AWF position's requirements (quality ranking factors) for one of the 
critical acquisition career fields; and (4) degreed candidates with 
superior scholastic achievement with a degree in a field of study 
directly linked to the qualifications, competencies, knowledge, skills, 
abilities, and DAWIA certifications for and duties of AWF positions in 
one of the critical acquisition career fields.
    Chapter 33, Section 3308: Competitive service; examinations; 
educational requirements prohibited; exceptions to the extent necessary 
to accommodate the Scholastic Achievement Appointment's requirement for 
possession of a college degree, the completion of which provides 
qualifications, competencies, knowledge, skills, and abilities, 
directly linked to the requirements for and duties of an AWF 
professional position (quality ranking factors) in one of the 
acquisition career fields.
    Chapter 33, Section 3317(a): Competitive service; certification 
from registers. Waived insofar as ``Rule of Three'' is eliminated under 
the demonstration project.
    Chapter 33, Section 3318(a): Competitive Service, Selection from 
Certificate. Waived insofar as the ``Rule of Three'' is eliminated 
under the demonstration project and to provide a substitute selection 
process that when making final selections, qualified candidates with 
veterans' preference should be considered for appointments if they are 
found to best meet mission requirements.
    Chapter 33, Section 3319: Alternative ranking and selection 
procedures. Waived to allow the continuation of the original AcqDemo 
Delegated Examining Authority published in 64 FR 1426-1492, Friday, 
January 8, 1999, as modified by the President's 2010 Memorandum 
requiring agencies to use category rating; to replace the use of 
veterans' preference points with ``determining veterans' preference 
eligibility when the selecting official has identified the candidates 
under serious consideration for a job offer,'' and to establish a 
process that when making final selections from the serious-
consideration-for-a-job-offer group, any candidate with veterans' 
preference should be considered for appointments if they are found to 
best meet mission requirements.
    Chapter 33, Section 3341: Details. Waived as necessary to extend 
the time limits for details.
    Chapter 35, Section 3502: Order of retention. Waived as necessary 
to accommodate the reduction-in-force process described in this 
demonstration project with 3502(c) waived in its entirety.
    Chapter 41, Section 4107(a): Academic degree training. Waived to 
the extent necessary to provide academic degree training as described 
for the demonstration project.
    Chapter 41, Section 4108(a)-(c): Employee agreements; service after 
training. Waived to the extent necessary to require the employee to 
continue in the service of the covered organizations for the period of 
the required service and to the extent necessary to permit the 
organization to waive in whole or in part a right of recovery.
    Chapter 43, Sections 4301-4305 except for 4303(e) and (f): Related 
to performance appraisal are waived in entirety. In turn, 4303(e) and 
(f) are waived only to the extent necessary to (1) substitute 
``broadband'' for ``grade'' and (2) provide that moving to a lower 
broadband as a result of not receiving the full amount of a general pay 
increase because of inadequate contribution is not an action covered by 
the provisions of section 4303(a)-(d).
    Chapter 45, Sections 4502(f): General Provisions. Waived to allow 
Service Acquisition Executives to approve cash awards for superior 
accomplishments not to exceed $25,000.
    Chapter 51, Sections 5101-5113: Related to classification standards 
and grading. Waived in entirety except section 5104 to the extent 
needed to permit classification of broadband levels and factor 
descriptors and discriminators.
    Chapter 53, Sections 5301; 5302 (8) and (9); and 5303-5305 and 
5331-5336: Related to special pay and pay rates and systems. Sections 
5301, 5302 (8) and (9), and 5304 are waived only to the extent 
necessary to allow demonstration project employees to be treated as 
General Schedule employees and to allow basic rates of pay under the 
demonstration project to be treated as scheduled rates of basic pay.
    Chapter 53, Section 5362: Grade retention. Waived in its entirety. 
Not applicable in the demonstration project.

[[Page 32092]]

    Chapter 53, Section 5363: Pay retention. This waiver applies only 
to the extent necessary to: (1) Allow demonstration project employees 
to be treated as General Schedule employees; (2) provide that pay 
retention provisions do not apply to conversions from General Schedule 
special rates to demonstration project pay, as long as total pay is not 
reduced; (3) replace the term ``grade'' with ``broadband level;'' and 
(4) provide that an employee on pay retention whose contribution 
assessment is ``Unacceptable'' may have the 50 percent of the amount of 
the increase in the maximum rate of base pay payable for the pay band 
of the employee's position reduced or denied.
    Chapter 53, Section 5371: Related to health care positions. This 
waiver applies only to the extent necessary to allow demonstration 
project employees to hold positions subject to Chapter 51 of title 5.
    Chapter 55, Section 5545(d): Hazardous duty premium pay. Waived 
only to the extent necessary to allow demonstration project employees 
to be treated as General Schedule employees.
    Chapter 57, Sections 5753, 5754, and 5755: Related to recruitment, 
relocation, and retention payments, and supervisory differentials. 
Waived to the extent necessary (1) to allow employees and positions 
under the demonstration project to be treated as employees and 
positions under the General Schedule; (2) allow management to offer a 
bonus to incentivize geographic mobility to a new student intern and to 
one whose worksite is in a different geographic location than that of 
the college enrolled or permanent home residence; and (3) authorize 
supervisory and team leader cash differentials as described for this 
demonstration project.
    Chapter 59, Section 5941: Allowances based on living costs and 
conditions of environment; employees stationed outside the continental 
United States or Alaska. This waiver applies only to the extent 
necessary to provide that COLAs paid to employees under the 
demonstration project are paid in accordance with regulations 
prescribed by the President (as delegated to OPM).
    Chapter 59, Section 5948: Related to physicians comparability 
allowances (only to the extent necessary to treat employees under the 
demonstration project as General Schedule employees).
    Chapter 71, to the extent its provisions (e.g., 5 U.S.C. 
7103(a)(12) and 7116) would prohibit management or the union from 
unilaterally terminating negotiations over whether the project will 
apply to employees represented by the union.
    Chapter 71, Section 7119: To the extent it gives the Federal 
Service Impasses Panel jurisdiction to resolve impasses referred to it 
by either party or both parties during implementation of the 
demonstration project.
    Chapter 75, Section 7512(3): Adverse actions. Waived to the extent 
necessary to exclude reductions in broadband level not accompanied by a 
reduction in pay and replace ``grade'' with ``broadband level''.
    Chapter 75, Section 7512(4): Adverse actions. Waived to the extent 
necessary to exclude conversions from a General Schedule special rate 
to demonstration project pay that do not result in a reduction in the 
employee's total rate of pay.

C. Waivers to Title 5, Code of Federal Regulations

    Part 300, Sections 300.601 through 300.605: Time-in-grade 
restrictions. Waived to eliminate time-in-grade restrictions in the 
demonstration project.
    Parts 300-330 other than Subpart G of 5 CFR part 300: Employment. 
Waived to the extent necessary to allow direct hire authority for (1) 
qualified candidates with bachelor's or advanced degrees required by 
OPM or DoD qualification standards to qualify for AWF positions in a 
critical acquisition career field classified to the Business and 
Technical Management Professional, NH, career path; (2) qualified 
veteran candidates for AWF positions in a critical acquisition career 
field classified to either the Business and Technical Management 
Professional, NH, career path or to the Technical Management Support, 
NJ, career path; (3) candidates enrolled in a program of undergraduate 
or graduate instruction at an institution of higher education leading 
to a baccalaureate degree or an advanced degree in a course of study 
required by OPM or DoD qualification standards or a degree the 
completion of which (including any additional essential credit hours in 
an acquisition-related field as appropriate) provides competencies, 
knowledge, skills, etc., directly linked to an AWF position's 
requirements (quality ranking factors) for one of the critical 
acquisition career fields; and (4) degreed candidates with superior 
scholastic achievement in a field of study directly linked to the 
qualifications, competencies, knowledge, skills, abilities, and DAWIA 
certifications for and duties of AWF positions in one of the critical 
acquisition career fields.
    Part 308, Volunteer service: Waived to allow volunteer service 
under the provisions of the Voluntary Emeritus Program described in 
this FRN.
    Part 315, section 315.901: Statutory requirement. Waived to the 
extent necessary to replace ``grade'' with ``broadband.''
    Part 315, section 315.905: Length of the probationary period. 
Waived to the extent necessary to allow for an additional supervisory/
managerial probationary period of one year when an employee is 
officially assigned to a different position that constitutes a major 
change in supervisory/managerial responsibilities.
    Part 316, Section 316.301: Purpose and duration. Waived to the 
extent that modified term appointments may cover a maximum period of 
six years.
    Part 316, Section 316.303: Tenure of term employees. Waived to the 
extent necessary to allow term employees to acquire competitive status.
    Part 316, Section 316.305: Eligibility for within-grade increases. 
Waived in its entirety.
    Part 332, Sections 332.401, Section 332.402, and Section 332.404: 
Order on Registers; Regular order of certification for appointment; and 
Order of Selection from Certificates. These sections are waived to the 
extent necessary to allow: (1) No rating and ranking when there are 25 
or fewer qualified applicants; (2) the hiring and appointment 
authorities as described in this Federal Register notice; and (3) 
elimination of the ``Rule of Three.'' Veterans' preference final 
candidates are considered for appointments if they are found to best 
meet mission requirements.
    Part 332, Section 332.404: Order of selection from certificates. 
Waived to the extent necessary to eliminate the requirement for 
selection using the ``Rule of Three.''
    Part 335, Section 335.103: Agency promotion programs. Waived to the 
extent necessary to extend the length of details and temporary 
promotions without requiring competitive procedures or numerous short-
term renewals.
    Part 337, Subpart A, Section 337.101(a): Rating applicants. Waived 
to the extent necessary to allow referral without rating when there are 
25 or fewer qualified candidates, applying veterans' preference when 
final candidates considered for appointments are found to best meet 
mission requirements.
    Part 337, Subpart C, Sections 337.301 through 337.305: Alternative 
Rating and Selection Procedures. Waived to allow continuation of the 
original AcqDemo Delegated Examining Authority published in the Federal 
Register on Friday, January 8, 1999 (64 FR 1426-1492), as modified by 
the President's

[[Page 32093]]

2010 Memorandum requiring agencies to use category rating.
    Part 340, Subpart A, Subpart B, and Subpart C: Other than full-time 
career employment. These subparts are waived to the extent necessary to 
allow a Voluntary Emeritus Program.
    Part 351, Sections 351.402 through 351.404: Competitive area, 
Competitive levels, and Retention register. Waived in their entirety.
    Part 351, Section 351.501: Order of retention-competitive service. 
Waived (1) to allow no additional years of service based on 
contribution/performance; (2) to combine Tenure Groups I and II into 
one group, a new Tenure Group I for all permanent career and career-
conditional employees; and (3) separate the new Tenure Group I into 
three categories: Tenure Group I for employees who have 12 or more 
months of assessed performance; Tenure Group I for employees with less 
than 12 months of assessed performance; and Tenure Group I--Current 
Unacceptable Rating of Record.
    Part 351, Section 351.502: Order of retention-excepted service. 
Waived (1) to allow no additional years of service based on 
performance; (2) to combine Tenure Groups I and II into one group, a 
new Tenure Group I for all permanent employees; (3) separate the new 
Tenure Group I into three categories: Tenure Group I for employees with 
less than 12 months of assessed performance; and Tenure Group I--
Current Unacceptable Rating of Record.
    Part 351, Section 351.504: Credit for Performance. Waived in its 
entirety.
    Part 351, Section 351.601: Order of Release from Competitive Level. 
Waived in its entirety.
    Part 351, Section 351.701: Assignment rights involving 
displacement. Waived to the extent that the distinction between bump 
and retreat is eliminated and the placement of demonstration project 
employees is limited to an employee's current career path, current 
broadband level, and one broadband level below that is within an 
employee's current career path, except that a preference-eligible 
employee with a compensable service-connected disability of 30 percent 
or more may displace up to the two broadband levels below the 
employee's present position (or the equivalent of five General Schedule 
grades) below the employee's present level, and to limit the assignment 
rights of employees with an unacceptable performance appraisal to a 
position held by another employee with an unacceptable performance 
appraisal.
    Part 362, Subparts A, B, and C: General Provisions, Internship 
Program, and Recent Graduates Program. Waived to the extent necessary 
to allow for an AWF Scholastic Achievement Appointment Authority and an 
AWF Student Intern Hiring Authority.
    Part 410, Section 410.308(a): Training to obtain an academic 
degree. Waived to the extent necessary to allow the Head of a 
Participating Organization to provide academic degree and certificate 
training as needed for interns and employees holding positions 
allocated to acquisition career fields in order to meet AWF 
certification requirements.
    Part 410, Section 410.309: Agreements to continue in service. 
Waived to the extent necessary to allow the Head of a Participating 
Organization to determine requirements related to continued service 
agreements.
    Part 430, Subpart A and Subpart B: Performance Management and 
Performance appraisal for General Schedule, Prevailing Rate, and 
Certain Other Employees. Waived in its entirety including 430.208(a)(2) 
and (h) to accommodate CCAS and the AcqDemo RIF process.
    Part 432, Sections 432.101 through 432.107: Related to performance 
based reduction in grade and removal actions, and definitions. Waived 
to the extent necessary to (1) substitute ``broadband'' for ``grade;'' 
(2) provide that moving to a lower broadband as a result of not 
receiving the full amount of a general pay increase because of 
inadequate contribution is not an action covered by the provisions of 5 
U.S.C. 4303 and 5 CFR 432.105 and 5 CFR 432.106; (3) delete reference 
to critical element as all factors are critical; (4) waive section 
432.105(a)(2) phrase ``If an employee has performed acceptably for 1 
year'' to allow for ``performed acceptably for 2 years from the 
beginning of a CIP;'' (5) waive section 432.105(a)(3) to provide 
``within a two-year period ending on the date of the notice of proposed 
action''; and (6) modify to the extent that an employee may be removed, 
reassigned, reduced in broadband level with a reduction in pay, reduced 
in pay without a reduction in broadband level, and reduced in broadband 
level without a reduction in pay if performance does not improve to an 
adequate level during a reasonable improvement period.
    Part 451, Subpart A, Sections 451.106(b): Agency and OPM 
Responsibilities. Waived to allow Service Acquisition Executives 
authority to grant special act awards for superior achievements to 
covered employees not to exceed $25,000.
    Part 470, Subpart C, Section 470.315: Project modification and 
extension. Waived to the extent necessary to expand participation in 
the Voluntary Emeritus Program to allow former non-AcqDemo DoD civilian 
employees and former military members who served in DoD DAWIA covered 
acquisition positions to participate in the Program as well as former 
AcqDemo employees serving in DAWIA-covered acquisition positions.
    Part 511, Subpart A; Subpart B; Subpart F; and Subpart G: 
Classification within the General Schedule. Waived in its entirety.
    Part 530, Subpart C: Special Rate Schedules for Recruitment and 
Retention. Waived in its entirety. Demonstration project does not 
utilize special salary rates.
    Part 531, Subpart B: Determining Rate of Basic Pay. Waived in its 
entirety.
    Part 531, Subparts D and E: Within-grade Increases and Quality Step 
Increases. Waived in its entirety.
    Part 531, Subpart F: Locality-Based Comparability Payments. Waived 
only to the extent necessary to allow demonstration project employees 
to be treated as General Schedule employees and to allow basic rates of 
pay under the demonstration project to be treated as scheduled rates of 
basic pay.
    Part 536, Grade and Pay Retention: Waived to the extent necessary 
to provide that, for the purposes of applying pay retention provisions: 
(1) Grade retention is eliminated and there is no provision for 
broadband level retention allowed; (2) ``grade'' is replaced by 
``broadband level''; and (3) demonstration project employees are to be 
treated as General Schedule employees except under the following 
provisions: (a) Pay retention provisions do not apply to conversions 
from General Schedule special rates to demonstration project pay, as 
long as total pay is not reduced; (b) pay retention provisions do not 
apply to movements to a lower broadband level as a result of not 
receiving the general increase due to an annual contribution assessment 
of ``Unacceptable''; and (c) provide that an employee on pay retention 
whose performance appraisal is ``Unacceptable'' may have the 50 percent 
of the amount of the increase in the maximum rate of base pay payable 
for the broadband level of the employee's position reduced or denied.
    Part 550, Section 550.703: Severance Pay. Definition of 
``reasonable offer'' is waived by replacing ``two grade or pay levels'' 
with ``one broadband level'' and ``grade or pay level'' with 
``broadband level.''
    Part 550, Section 550.902: Hazard Pay. Definition of ``employee'' 
waived only to the extent necessary to allow demonstration project 
employees to be treated as General Schedule employees.

[[Page 32094]]

    Part 575, Sections 575.103(a)(1), 575.203 (a)(1), and 
575.303(a)(1), and Subpart D: Recruitment, relocation, and retention 
incentives, and supervisory differentials. Waived only to the extent 
necessary (1) to allow employees and positions under the demonstration 
project to be treated as employees and positions under the General 
Schedule; (2) allow management to offer a bonus to incentivize 
geographic mobility to a new student intern and to one whose worksite 
is in a different geographic location than that of the college enrolled 
or permanent home residence each time they return to duty at their 
official work site; and (3) to allow supervisory and team leader cash 
differentials as described for this demonstration project.
    Part 591, Subpart B: Cost-of-Living Allowances and Post 
Differential-Non-foreign Areas. This waiver applies only to the extent 
necessary to allow demonstration project employees to be treated as 
employees under the General Schedule for the purposes of these 
provisions.
    Part 752, Sections 752.401(a)(3) and 752.401(a)(4): Coverage. 
Waived to the extent necessary (1) to provide that adverse action 
provisions do not apply to reductions in broadband level not 
accompanied by a reduction in pay and (2) to replace ``grade'' with 
``broadband level.''
    Part 752.401(a)(4): Coverage. Waived to the extent necessary to 
exclude conversions from a General Schedule special rate to 
demonstration project pay that do not result in a reduction in an 
employee's total rate of pay.

Appendix A

History of Legislative Provisions and Federal Register Notices; DoD 
Civilian Acquisition Workforce Personnel Management Demonstration 
Project

A. Legislative Provisions

    This demonstration project was originally authorized under 
section 4308 of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 1996 (Public Law (Pub. L.) 104-106, 110 Stat. 669; 
10 United States Code Annotated (U.S.C.A.) 1701 note), as amended by 
section 845 of NDAA for FY 1998 (Pub. L. 105-85, 111 Stat. 1845); 
section 813 of NDAA for FY 2003 (Pub. L. 107-314, 116 Stat. 2609); 
section 1112 of NDAA for FY 2004 (Pub. L. 108-136, 117 Stat. 1634); 
and section 1113 of NDAA for FY 2010 (Pub. L. 111-84, 123 Stat. 
2190) repealed the National Security Personnel System and directed 
conversion of all NSPS employees to their previous pay system by 
January 1, 2012. All NSPS employees formerly in AcqDemo were 
transitioned back to AcqDemo during the month of May 2011. On 
January 7, 2011, the original demonstration project authority was 
repealed and codified at 10 U.S.C. 1762 pursuant to section 872 of 
the Ike Skelton NDAA for FY 2011 (Pub. L. 111-383, 124 Stat. 4300, 
4302). Through Section 867 of NDAA for FY 2017 (Pub. L. 114-328), 
Congress provided that the Secretary of Defense shall exercise the 
authorities granted to the OPM under 5 U.S.C. 4703 for purposes of 
the demonstration project.

B. Federal Register Notice and Subsequent Amendments

    OPM approved and published the final project plan for the 
AcqDemo on January 8, 1999, in 64 FR 1426-1492. Since that time, six 
amendments have been approved and published, and one notice of 
intent to amend published by OPM:
    1. 66 FR 28006-28007 (May 21, 2001): This amendment was 
published 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.
    2. 67 FR 20192-20193 (April 24, 2002): This amendment was 
published 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.
    3. 67 FR 44250-44256 (July 1, 2002): This amendment (1) 
contained a list of all organizations that are eligible to 
participate in the project and (2) made the resulting adjustments to 
the table that describes the project's workforce demographics and 
union representation.
    4. 67 FR 63948-63949 (October 16, 2002): This notice of the 
intent to amend was published to propose a change in the method for 
determining and translating retention service credit. The proposal 
was overcome by the advent of the National Security Personnel System 
(NSPS), which was projected to replace the AcqDemo.
    5. 71 FR 58638-58639 (October 4, 2006): This amendment was 
published to facilitate the transition of AcqDemo employees to NSPS 
by authorizing an out-of-cycle Contribution-based Compensation and 
Appraisal System payout and amending conversion-out procedures.
    6. 80 FR 17109-17117 (March 31, 2015): This amendment announced 
the repeal and replacement of AcqDemo's original legal authorization 
and modified the project plan to include new provisions; updated the 
project plan to address changes resulting from new General Schedule 
regulations and operational experience; announced guidelines for a 
formal process for interested DoD civilian acquisition organizations 
to use to request approval to participate in AcqDemo; and provided 
notice of expansion of coverage to new or realigned organizations.
    7. 81 FR 6902 (February 9, 2016): This document publishes three 
technical corrections to 80 FR 17109-17117 (March 31, 2015) to 
ensure access for the entirety of an organization to participate in 
AcqDemo.

Appendix B

Tables of Eligible Organizations

    As a result of the success of the AcqDemo classification, 
contribution appraisal, and compensation strategies and the desire 
of the USD (AT&L) to increase participation to more evenly balance 
the workforce among Participating Organizations for evaluation, the 
organizations listed in Table 1A either applied in calendar year 
2014 and have been approved to participate in the AcqDemo, or are 
currently in Table 1 but require an update to their listed 
organizational alignment.

                               Table 1--Eligible Organizations as of July 1, 2002
----------------------------------------------------------------------------------------------------------------
DOD component/DOD  component major  organizational
                    subdivision                       Organization/office symbol             Locations
----------------------------------------------------------------------------------------------------------------
                                           DEPARTMENT OF THE AIR FORCE
----------------------------------------------------------------------------------------------------------------
Air Force Materiel Command (AFMC).................  Aeronautical System Center     Wright-Patterson AFB, OH and
                                                     (ASC).                         all other locations.
AFMC..............................................  Air Armament Center (AAC)      Eglin AFB, FL and all other
                                                     (except comparison group at    locations.
                                                     Eglin AFB, FL).
AFMC..............................................  Air Force Flight Test Center   Edwards AFB, CA and all other
                                                     (AFFTC).                       locations.
AFMC..............................................  Arnold Engineering             Arnold AFB, TN and all other
                                                     Development Center (AEDC).     locations.
AFMC..............................................  Electronic Systems Center      Hanscom AFB, MA and all other
                                                     (ESC).                         locations.
AFMC..............................................  HQ AFMC......................  Wright-Patterson AFB, OH and
                                                                                    all other locations.
AFMC..............................................  Ogden Air Logistics Center     Hill AFB, UT and all other
                                                     (OO-ALC).                      locations.
AFMC..............................................  Oklahoma City Air Logistics    Tinker AFB, OK and all other
                                                     Center (OC-ALC).               locations.
AFMC..............................................  Warner Robins Air Logistics    Warner Robins AFB, GA and all
                                                     Center (WR-ALC).               other locations.

[[Page 32095]]

 
Air Force Space Command (AFSPC)...................  HQ AFSPC.....................  Peterson AFB, CO and all
                                                                                    other locations.
AFSPC.............................................  Space and Missile Center       Los Angeles, CA and all other
                                                     (SMC).                         locations.
Miscellaneous Air Force...........................  Contracting Organizations....  All locations in the National
                                                                                    Capital Region.
Secretary of the Air Force........................  Assistant Secretary of the     Pentagon, Arlington, VA and
                                                     Air Force (Acquisition) (SAF/  all other locations.
                                                     AQ) and Space Acquisition
                                                     Organization.
----------------------------------------------------------------------------------------------------------------
                                             DEPARTMENT OF THE ARMY
----------------------------------------------------------------------------------------------------------------
Army Acquisition Executive Support Agency (AAESA).  Headquarters, Research,        Orlando, FL; Alexandria, VA;
                                                     Development, and Acquisition   Ft. Belvoir, VA; Falls
                                                     Information Systems Activity   Church, VA; Pentagon,
                                                     (RDAISA); Army Digitization    Arlington, VA; Radford, VA;
                                                     Office (ADO); Acquisition      and all other locations.
                                                     Career Management Office;
                                                     Contract Support Agency
                                                     (CSA); Joint Simulations
                                                     (JSIMS); Leavenworth
                                                     Support; Management Support
                                                     Pentagon Support; Training
                                                     Group.
AAESA.............................................  Program Executive Office       Huntsville, AL; Pentagon,
                                                     (PEO) Air and Missile          Arlington, VA; and all other
                                                     Defense (See Note 1).          locations.
AAESA.............................................  Program Executive Office Ammo  All locations.
                                                     (See Note 1).
AAESA.............................................  Program Executive Office       Huntsville, AL; Pentagon,
                                                     Aviation (AVN) (See Note 1).   Arlington, VA; and all other
                                                                                    locations.
AAESA.............................................  Program Executive Office       All locations.
                                                     Chemical/Biological Defense
                                                     (See Note 1).
AAESA.............................................  Program Executive Office       Huntsville, AL; El Segundo,
                                                     Command, Control, and          CA; Tallahassee, FL; Ft.
                                                     Communication Systems (C3S).   Wayne, IN; Ft. Leavenworth,
                                                                                    KS; Seoul, Korea; Yong San,
                                                                                    Korea; Ft. Monmouth, NJ;
                                                                                    White Sands Missile Range,
                                                                                    NM; Ft. Sill, OK; Ft. Hood,
                                                                                    TX; Ft. Bliss, TX: Ft.
                                                                                    Belvoir, VA; McLean, VA;
                                                                                    Pentagon, Arlington, VA; and
                                                                                    all other locations.
AAESA.............................................  Program Executive Office CS/   All locations.
                                                     CSS (See Note 1).
AAESA.............................................  Program Executive Office       Picatinny Arsenal, NJ;
                                                     Ground Combat Support          Warren, MI; Pentagon,
                                                     Systems (GCSS) (See Note 1).   Arlington, VA; Washington,
                                                                                    DC; and all other locations.
AAESA.............................................  Program Executive Officer      Ft. Monmouth, NJ; Ft.
                                                     Intelligence, Electronic       Belvoir, VA; and all other
                                                     Warfare, and Sensors (IEW&S)   locations.
                                                     (See Notes 1 and 2).
AAESA.............................................  Program Executive Office/      Orlando, FL; and all other
                                                     Program Management (PM)        locations.
                                                     Joint Simulation System (See
                                                     Note 1).
AAESA.............................................  Program Executive Office       All locations.
                                                     National Missile Defense
                                                     Joint Program Office (See
                                                     Note 1).
AAESA.............................................  Program Executive Office       All locations.
                                                     Soldier (See Note 1).
AAESA.............................................  Program Executive Office       Ft. Knox, KY; Ft. Monmouth,
                                                     Standard Army Management       NJ; Ft. Belvoir, VA; Ft.
                                                     Information Systems (STAMIS)   Lee, VA; Ft. Monroe, VA; and
                                                     (See Note 1).                  all other locations.
AAESA.............................................  Program Executive Officer      Huntsville, AL; Pentagon,
                                                     Tactical Missiles (See Note    Arlington, VA; Washington,
                                                     1).                            DC; and all other locations.
AAESA.............................................  Program Management (PM)        Aberdeen Proving Ground, MD;
                                                     Chemical Demilitarization.     Pentagon, Arlington, VA;
                                                                                    Washington, DC; and all
                                                                                    locations.
AAESA.............................................  Program Management (PM) Joint  Aberdeen Proving Ground, MD;
                                                     Program for Biological         Ft. Detrick, MD; Ft.
                                                     Defense.                       Ritchie, MD; Falls Church,
                                                                                    VA; and all locations.
Army Materiel Command (AMC).......................  Headquarters--Acquisition....  Alexandra, VA and all
                                                                                    locations.
AMC...............................................  AMC Headquarters Staff         Nahbohnch, Germany; Rock
                                                     Support Activities.            Island, IL; Yong San, Korea;
                                                                                    Aberdeen Proving Ground, MD;
                                                                                    Alexandria, VA; and all
                                                                                    other locations.
AMC...............................................  Installations and Services     All locations.
                                                     Activity; Intelligence and
                                                     Technology Security
                                                     Activity; International
                                                     Cooperative Program
                                                     Activity; Logistics Support
                                                     Activity; Schools of
                                                     Engineering and Logistics;
                                                     Separate Reporting
                                                     Activities: Field Assistance
                                                     in Science and Technology;
                                                     Surety Field Activity;
                                                     Systems Analysis Activity
                                                     (See Note 2).
AMC...............................................  Aviation and Missile Command   All locations.
                                                     (AMCOM) (See Note 3).
AMC...............................................  Communications-Electronics     All locations.
                                                     Command (CECOM) (See Note 3).
AMC...............................................  Operations Support Command     All locations.
                                                     (See Note 3).
AMC...............................................  Security Assistance Command    All locations.
                                                     (See Note 2).
AMC...............................................  Simulation, Training, and      All locations.
                                                     Instrumentation Command
                                                     (STRICOM) (See Note 3).
AMC...............................................  Soldier and Biological         All locations.
                                                     Chemical Command (SBCCOM)
                                                     (See Note 3).

[[Page 32096]]

 
AMC...............................................  Tank-Automotive and Armaments  All locations.
                                                     Command (TACOM) (See Note 3).
Headquarters, Department of the Army (HQDA).......  Office of the Auditor          Pentagon, Arlington, VA.
                                                     General; Office Surgeon
                                                     General; G1; G2; G3; G4; G6;
                                                     G8.
HQDA..............................................  Army Contracting Agency......  All locations.
Office of the Assistant Secretary of the Army       Cost and Economic Analysis     Falls Church, VA; Pentagon,
 (Financial Management and Comptroller).             Center; SAFM-BUI.              Arlington, VA; and all other
                                                                                    locations.
Office of the Assistant Secretary of the Army       Director of Assessment and     Ft. Belvoir, VA; Falls
 (Acquisition, Logistics, and Technology).           Evaluation (SARD-ZD); Deputy   Church, VA; Pentagon,
                                                     Assistant Secretary of the     Arlington, VA; Radford, VA;
                                                     Army for Logistics (SARD-      and all other locations.
                                                     ZL); Deputy Assistant
                                                     Secretary for Plans/Programs/
                                                     Policy (SARD-ZR); Deputy
                                                     Assistant Secretary of the
                                                     Army for Procurement (SARD-
                                                     ZP); Deputy Assistant
                                                     Secretary for Research and
                                                     Technology (SARD-ZT); Deputy
                                                     for Systems Management (SARD-
                                                     ZS); Management Support;
                                                     SACO and associated offices.
Medical Command (MEDCOM)..........................  Healthcare Acquisition         Augusta, GA; Honolulu, HI; El
                                                     Activity, MEDCOM Acquisition   Paso, TX; San Antonio, TX;
                                                     Activity.                      Seattle, WA; Walter Reed
                                                                                    Army Medical Center,
                                                                                    Washington, DC; Landstuhl,
                                                                                    Germany.
MEDCOM............................................  Medical Research and Materiel  Ft. Rucker, AL; Natick, MA;
                                                     Command (MRMC) (See Note 3).   Aberdeen Proving Ground, MD;
                                                                                    Ft. Detrick, MD; Washington,
                                                                                    DC.
MEDCOM............................................  Medical Department Activity..  Ft. Greeley, AK; Ft.
                                                                                    Richardson, AK; Ft.
                                                                                    Wainwright, AK; Ft.
                                                                                    Huachuca, AZ; Ft. Carson,
                                                                                    CO; Heidelberg, Germany; Ft.
                                                                                    Campbell, KY; West Point,
                                                                                    NY; Ft. Jackson, SC; Ft.
                                                                                    Hood, TX.
MEDCOM............................................  Army Medical Centers.........  Honolulu, HI; Ft. Bragg, NC;
                                                                                    San Antonio, TX; Tacoma, WA;
                                                                                    Washington, DC.
MEDCOM............................................  Center for Health Promotion    Aberdeen Proving Ground, MD.
                                                     and Preventive Medicine..
US Army Eighth Army (EUSA)........................  Contracting Command Korea/     Seoul, Korea and all other
                                                     EAKC.                          locations.
EUSA..............................................  Troop Command................  Seoul, Korea and all other
                                                                                    locations.
US Army Test and Evaluation Command (ATEC)........  HQ, ATEC.....................  Alexandria, VA.
ATEC..............................................  Operational Test Command       Ft. Hood, TX and all other
                                                     (OTC).                         locations.
ATEC..............................................  Army Evaluation Center (AEC).  Alexandria, VA and all other
                                                                                    locations.
ATEC..............................................  Developmental Test Command     Aberdeen Proving Ground, MD
                                                     (DTC).                         and all other locations.
Headquarters, Department of the Army (HQDA).......  Defense Supply Services        Alexandria, VA; Ft. Belvoir,
                                                     Washington (DSSW)/Joint-DSSW.  VA; Falls Church, VA;
                                                                                    Washington, DC.
National Guard Bureau (NGB) (See Note 4)..........  Program Executive Office/      Arlington, VA.
                                                     Program Management RCAS, NGB-
                                                     RCS-RA.
Joint Activities..................................  Information Management         Pentagon, Arlington, VA and
                                                     Support Center.                all other locations.
Military Traffic Management Command (MTMC)........  HQ, MTMC.....................  Alexandria, VA.
MTMC..............................................  MTAQ.........................  Falls Church, VA and all
                                                                                    other locations.
MTMC..............................................  PM Global Freight Management   Alexandria, VA.
                                                     System.
MTMC..............................................  598th Transportation Terminal  Yokohama, Japan; Rotterdam,
                                                     Group; 599th Transportation    Netherlands; Oahu, HI; Fort
                                                     Terminal Group; 836th          Eustis, VA; and all other
                                                     Transportation Terminal        locations.
                                                     Group Deployment Support
                                                     Command.
Space and Missile Defense Command (SMDC)..........  SMDC (See Note 1)............  Huntsville, AL; Kwajalein
                                                                                    Atoll, Marshall Islands;
                                                                                    Colorado Springs, CO; White
                                                                                    Sands Missile Range, NM;
                                                                                    Arlington, VA; Fairfax, VA;
                                                                                    all other locations.
Training and Doctrine Command (TRADOC)............  Headquarters, TRADOC           Ft. Monroe, VA.
                                                     Acquisition Directorate and
                                                     Small and Disadvantaged
                                                     Business Utilization Office.
TRADOC............................................  Directorate of Contracting     Ft. Eustis, VA.
                                                     and TRADOC Contracting
                                                     Activity.
TRADOC............................................  Directorate of Contracting     Ft. Leavenworth, KS.
                                                     and Mission Contracting
                                                     Activity.
TRADOC............................................  Directorate of Contracting     Ft. Lee, VA.
                                                     and Mission Contracting
                                                     Activity.
TRADOC............................................  Directorates of Contracting..  McClellan, AL; Rucker, AL;
                                                                                    Ft. Huachuca, AZ; Presidio
                                                                                    at Monterey, CA; Ft.
                                                                                    Benning, GA; Ft. Gordon, GA;
                                                                                    Ft. Knox, KY; Ft. Leonard
                                                                                    Wood, MO; Ft. Sill, OK;
                                                                                    Carlisle Barracks, PA; Ft.
                                                                                    Jackson, SC; Ft. Bliss, TX;
                                                                                    Ft. Lee, VA.
Corps of Engineers (COE)..........................  Headquarters.................  Washington, DC.
COE...............................................  Regional Headquarters........  All locations.

[[Page 32097]]

 
COE...............................................  Division, Directorates of      All locations.
                                                     Contracting.
COE...............................................  District Contracting Offices.  All locations.
COE...............................................  Transatlantic Programs         All locations.
                                                     Center, Directorate of
                                                     Contracting.
COE...............................................  Humphreys Engineering Center   All locations.
                                                     Support Activity,
                                                     Contracting Office.
COE...............................................  Marine Design Center.........  All locations.
Intelligence and Security Command.................  704 Military Brigade,          All locations.
                                                     Headquarters and
                                                     Headquarters Company; 718th
                                                     Military Group; HQ, U.S.
                                                     Army (USA) Intelligence
                                                     Security Command; USA
                                                     Element National Security
                                                     Agency (NSA); USA Foreign
                                                     Counter Intelligence (CI)
                                                     Activity; USA Land
                                                     Information Warfare; USA
                                                     National Ground Intelligence
                                                     Center (See Note 2).
Criminal Investigation Command....................  Headquarters.................  Ft. Belvoir, VA and all other
                                                                                    locations.
U.S. Army Europe and 7th Army (USAREUR)...........  Wiesbaden Contracting Center.  Wiesbaden, Germany.
USAREUR...........................................  USA Contracting Command        Brussels, Belgium; Bad
                                                     Europe.                        Kreuznach, Germany;
                                                                                    Grafenwohr, Germany;
                                                                                    Seckenheim, Germany;
                                                                                    Wiesbaden, Germany;
                                                                                    Wuerzburg, Germany; Vicenza,
                                                                                    Italy; and all other
                                                                                    locations.
USAREUR...........................................  USA Transportation Management  Grafenwoehr, Germany.
                                                     Center.
Command...........................................  Organization/Office Symbol...  Locations.
USAREUR...........................................  Southern European Task Force.  Vicenza, Italy.
USAREUR...........................................  21st Theater Army Area         Kaiserslautern, Germany.
                                                     Command.
USAREUR...........................................  V Corps......................  Heidelberg, Germany.
USAREUR...........................................  7th Army Training Command....  Grafenwoehr, Germany.
USAREUR...........................................  26th Support Group...........  Heidelberg, Germany.
Forces Command (FORSCOM)..........................  U.S. Army Garrisons (USAGs)..  Ft. Carson, CO; Ft.
                                                                                    McPherson, GA; Ft. Stewart,
                                                                                    GA; Ft. Riley, KS; Ft.
                                                                                    Campbell, KY; Ft.Polk, LA;
                                                                                    Ft. Bragg, NC; Ft. Hood, TX;
                                                                                    Ft. Dix, NJ; Ft. Drum, NY;
                                                                                    Ft. Lewis, WA; Ft. McCoy,
                                                                                    WI.
FORSCOM...........................................  Reserve Command..............  All locations.
FORSCOM...........................................  Signal Command...............  Ft. Huachuca, Arizona and all
                                                                                    other locations.
FORSCOM...........................................  First Army; Third Army; Fifth  All locations.
                                                     Army.
US Military Academy...............................  West Point (See Note 5)......  West Point, NY.
Military District of Washington...................  3rd U.S. Infantry; 12th        All locations.
                                                     Aviation Battalion; Army
                                                     Signal Activity; Arlington
                                                     National Cemetery; Joint
                                                     Personal Property Shipping
                                                     Office; U.S. Army Band;
                                                     White House Transportation
                                                     Agency.
U.S. Army National Guard Bureau (ANGB)............  USPFO Activity (See Note 3)..  All locations.
ANGB..............................................  State Area Command (See Note   All locations.
                                                     3).
Southern Command..................................  U.S. Army Element,             Miami, FL and all other
                                                     Headquarters Southern          locations.
                                                     Command.
Recruiting Command................................  USA Recruiting Support         Fort Knox, KY and all other
                                                     Battalions.                    locations.
Military Entrance Processing Command (MEPCOM).....  Headquarters, USA, MEPCOM....  North Chicago, IL.
Total Army Personnel Command......................  Information System Agency,     St. Louis, MO.
                                                     Army Reserve Personnel
                                                     Center.
U.S. Army Pacific (USARPAC).......................  HQ, USARPAC; and subordinate   All locations.
                                                     command/installations.
Office of the Secretary of the Army...............  Immediate Office of the        Pentagon, Arlington, VA and
                                                     Secretary of the Army.         all other locations.
Office of the Secretary of the Army...............  Office of the Administrative   Pentagon, Arlington, VA and
                                                     Assistant to the Secretary     all other locations.
                                                     of the Army.
Office of the Secretary of the Army...............  Office of the Chief of         Pentagon, Arlington, VA and
                                                     Legislative Liaison.           all other locations.
Office of the Secretary of the Army...............  Office of Small and            Pentagon, Arlington, VA and
                                                     Disadvantaged Business         all other locations.
                                                     Utilization.
Office of the Secretary of the Army...............  Office of Director,            Pentagon, Arlington, VA and
                                                     Information Systems for        all other locations.
                                                     Command Control,
                                                     Communications, and
                                                     Computers.
Field Operating Offices of the Office of the        Army Broadcasting Service....  Alexandria, VA.
 Secretary of the Army.
Field Operating Offices of the Office of the        Cost and Economic Analysis     Arlington, VA and all other
 Secretary of the Army.                              Agency.                        locations.

[[Page 32098]]

 
Field Operating Offices of the Office of the        Army Safety Center...........  Ft. Rucker, AL and all other
 Secretary of the Army.                                                             locations.
Field Operating Offices of the Office of the        USA War College (See Note 5).  Carlisle Barracks, PA and all
 Secretary of the Army.                                                             other locations.
Field Operating Offices of the Office of the        Communication Electronic       Alexandria, VA and all other
 Secretary of the Army.                              Service Office.                locations.
Special Operations Command........................  Office of the Acquisition      All locations.
                                                     Executive and all associated
                                                     PEOs and PMs.
Joint Activities..................................  Army Visual Information        Pentagon, Arlington, VA and
                                                     Center.                        all other locations.
Joint Activities..................................  Defense Acquisition            Ft. Belvoir, VA.
                                                     University (DUA) (See Note
                                                     5).
----------------------------------------------------------------------------------------------------------------
                                             DEPARTMENT OF THE NAVY
----------------------------------------------------------------------------------------------------------------
                                                      Navy
----------------------------------------------------------------------------------------------------------------
Assistant Secretary of the Navy (Research,          (ASN(RD&A))..................  Arlington, VA.
 Development, and Acquisition).
Navy International Program Office (NIPO)..........  NIPO.........................  Arlington, VA.
Naval Supply Systems Command (NAVSUP).............  Fleet and Industrial Supply    Bremerton, WA.
                                                     Center, Puget Sound.
NAVSUP............................................  Fleet and Industrial Supply    San Diego, CA
                                                     Center.
Naval Sea Systems Command (NAVSEA)................  TEAM CX (Surface Ship          Arlington, VA.
                                                     Directorate (SEA 91),
                                                     Program Executive Office
                                                     Aircraft Carriers, and
                                                     Program Executive Office
                                                     Expeditionary Warfare).
----------------------------------------------------------------------------------------------------------------
                                                  Marine Corps
----------------------------------------------------------------------------------------------------------------
Marine Corps Systems Command (MARCORSYSCOM).......  Amphibious Vehicle Test Bed    Camp Pendleton, CA.
                                                     (AVTB); Marine Corps
                                                     Tactical Systems Support
                                                     Activity (MCTSSA).
MARCORSYSCOM......................................  Headquarters, Marine Corps     Albany, GA; Rock Island, IL;
                                                     Systems Command                Picatinny Arsenal, NJ;
                                                     (MARCORSYSCOM); CSLE;          Warren, MI; Quantico, VA.
                                                     Program Support Section.
----------------------------------------------------------------------------------------------------------------
                                              DEPARTMENT OF DEFENSE
----------------------------------------------------------------------------------------------------------------
Office of the Secretary of Defense Office of the    ATSD (NCB); DIR, Admin; DIR,   Pentagon, Arlington, VA.
 Under Secretary of Defense for Acquisition,         API; DDR&E DIR, DP; DSB;
 Logistics, and Technology (USD(AT&L)).              DUSD (ES); DUSD (AR); DUSD
                                                     (AT); DUSD (IA&I); DUSD
                                                     (I&CP); DUSD (L); DIR, S&TS
                                                     DIR, TSE&E Spec Prog; SADBU.
Defense Advanced Research Projects Agency (DARPA).  All (See Note 5).............  Arlington, VA.
Defense Logistics Agency..........................  All..........................  All locations.
Missile Defense Agency............................  All..........................  Arlington, VA.
Defense Contract Management Agency (DCMA).........  All..........................  All locations.
Defense Threat Reduction Agency (DTRA)............  All..........................  Arlington, VA; Ft. Belvoir,
                                                                                    VA.
Defense Information Systems Agency................  PM DISN System Integration     Falls Church, VA.
                                                     Project.
----------------------------------------------------------------------------------------------------------------
Note 1: Includes all associated PMs and liaison representatives.
Note 2: Excludes Defense Civilian Intelligence Personnel System positions.
Note 3: Excludes positions covered by another demonstration project that is operating or under development
  within DoD.
Note 4: Only title 5 National Guard Bureau positions are eligible to be included in this demonstration.
Note 5: Excludes Administratively Determined pay plan employees.


[[Page 32099]]


                   Table 1A--Eligible Organizations Updated and Approved in Calendar Year 2015
----------------------------------------------------------------------------------------------------------------
DOD component/DOD  component major  organizational
                    subdivision                       Organization/office symbol             Locations
----------------------------------------------------------------------------------------------------------------
                                                    AIR FORCE
----------------------------------------------------------------------------------------------------------------
Air Force Materiel Command (AFMC).................  Air Armament Complex (AAC)...  Eglin AFB, FL and all other
                                                                                    locations.
AFMC..............................................  Air Force Life Cycle           All locations.
                                                     Management Center.
AFMC..............................................  Air Force Test Center (AFTC).  Edwards AFB, CA and all other
                                                                                    locations.
AFMC..............................................  Air Force Nuclear Weapons      Kirtland AFB, NM.
                                                     Center.
AFMC..............................................  Air Force Sustainment Center.  All locations.
Air Force Operational Test and Evaluation Center    All..........................  Kirtland AFB, NM and all
 (AFOTEC).                                                                          other locations.
Miscellaneous Air Force...........................  Contracting Organizations....  All locations.
----------------------------------------------------------------------------------------------------------------
                                                      NAVY
----------------------------------------------------------------------------------------------------------------
Naval Sea Systems Command (NAVSEA)................  Headquarters, Program          All locations.
                                                     Executive Office (PEO)
                                                     Ships, PEO Subs, PEO LCS,
                                                     PEO IWS and PEO Carriers.
Naval Air Systems Command (NAVAIR)................  NAVAIR Headquarters and        All locations.
                                                     associated PEO workforce.
Space and Naval Warfare Systems Command...........  Headquarters and PEOs........  All locations.
Strategic Systems Programs (SSP)..................  SSP..........................  Washington, DC (WNY) and all
                                                                                    locations.
----------------------------------------------------------------------------------------------------------------
                                              DEPARTMENT OF DEFENSE
----------------------------------------------------------------------------------------------------------------
Defense Acquisition University (DAU)..............  Defense Acquisition            All locations.
                                                     University (DAU) \13\.
Missile Defense Agency (MDA)......................  All..........................  All locations.
Defense Test Resource Management Center (DTRMC)...  All..........................  Arlington, VA.
Washington Headquarters Services (WHS)............  Acquisition Directorate......  Arlington, VA.
----------------------------------------------------------------------------------------------------------------
                                                 JOINT SERVICES
----------------------------------------------------------------------------------------------------------------
U.S. Special Operations Command...................  Office of the Acquisition      All locations.
                                                     Executive and all associated
                                                     PEOs and PMs.
U.S. Transportation Command.......................  Office of the Acquisition      All locations.
                                                     Executive and all associated
                                                     PEOs and PMs.
----------------------------------------------------------------------------------------------------------------

     
---------------------------------------------------------------------------

    \13\ Excludes administratively determined pay plan employees.

---------------------------------------------------------------------------

[[Page 32100]]

Appendix C

Information as of August 25, 2016

Series Included in the DoD Acquisition Workforce Personnel Demonstration
                                 Project
------------------------------------------------------------------------
                                                     Occupational series
              Occupational series No.                       title
------------------------------------------------------------------------
      BUSINESS MANAGEMENT & TECHNICAL MANAGEMENT PROFESSIONAL (NH)
------------------------------------------------------------------------
0011..............................................  BOND SALES
                                                     PROMOTION.
0017..............................................  EXPLOSIVES SAFETY.
0018..............................................  SAFETY AND
                                                     OCCUPATIONAL HEALTH
                                                     MANAGEMENT.
0020..............................................  COMMUNITY PLANNING.
0023..............................................  OUTDOOR RECREATION
                                                     PLANNING.
0025..............................................  PARK RANGER.
0028..............................................  ENVIRONMENTAL
                                                     PROTECTION
                                                     SPECIALIST.
0030..............................................  SPORTS SPECIALIST.
0050..............................................  FUNERAL DIRECTING.
0062..............................................  CLOTHING DESIGN.
0072..............................................  FINGERPRINT
                                                     IDENTIFICATION.
0080..............................................  SECURITY
                                                     ADMINISTRATION.
0089..............................................  EMERGENCY
                                                     MANAGEMENT.
0095..............................................  FOREIGN LAW
                                                     SPECIALIST.
0099..............................................  GENERAL STUDENT
                                                     TRAINEE.
0101..............................................  SOCIAL SCIENCE.
0106..............................................  UNEMPLOYMENT
                                                     INSURANCE.
0110..............................................  ECONOMIST.
0130..............................................  FOREIGN AFFAIRS.
0131..............................................  INTERNATIONAL
                                                     RELATIONS.
0135..............................................  FOREIGN AGRICULTURAL
                                                     AFFAIRS.
0136..............................................  INTERNATIONAL
                                                     COOPERATION.
0140..............................................  WORKFORCE RESEARCH
                                                     AND ANALYSIS.
0142..............................................  WORKFORCE
                                                     DEVELOPMENT.
0150..............................................  GEOGRAPHY.
0160..............................................  CIVIL RIGHTS
                                                     ANALYSIS.
0170..............................................  HISTORY.
0180..............................................  PSYCHOLOGY.
0184..............................................  SOCIOLOGY.
0185..............................................  SOCIAL WORK.
0188..............................................  RECREATION
                                                     SPECIALIST.
0190..............................................  GENERAL
                                                     ANTHROPOLOGY.
0193..............................................  ARCHEOLOGY.
0199..............................................  SOCIAL SCIENCE
                                                     STUDENT TRAINEE.
0201..............................................  HUMAN RESOURCES
                                                     MANAGEMENT.
0241..............................................  MEDIATION.
0243..............................................  APPRENTICESHIP AND
                                                     TRAINING.
0244..............................................  LABOR MANAGEMENT
                                                     RELATIONS
                                                     EXAMINING.
0260..............................................  EQUAL EMPLOYMENT
                                                     OPPORTUNITY.
0299..............................................  HUMAN RESOURCES
                                                     MANAGEMENT STUDENT
                                                     TRAINEE.
0301..............................................  MISCELLANEOUS
                                                     ADMINISTRATION AND
                                                     PROGRAM.
0306..............................................  GOVERNMENT
                                                     INFORMATION.
0308..............................................  RECORDS AND
                                                     INFORMATION
                                                     MANAGEMENT.
0340..............................................  PROGRAM MANAGEMENT.
0341..............................................  ADMINISTRATIVE
                                                     OFFICER.
0343..............................................  MANAGEMENT AND
                                                     PROGRAM ANALYSIS.
0346..............................................  LOGISTICS
                                                     MANAGEMENT.
0360..............................................  EQUAL OPPORTUNITY
                                                     COMPLIANCE.
0391..............................................  TELECOMMUNICATIONS.
0399..............................................  ADMINISTRATION AND
                                                     OFFICE SUPPORT
                                                     STUDENT TRAINEE.
0401..............................................  GENERAL NATURAL
                                                     RESOURCES MANAGMENT
                                                     AND BIOLOGICAL
                                                     SCIENCES.
0403..............................................  MICROBIOLOGY.
0405..............................................  PHARMACOLOGY.
0408..............................................  ECOLOGY.
0410..............................................  ZOOLOGY.
0413..............................................  PHYSIOLOGY.
0414..............................................  ENTOMOLOGY.
0415..............................................  TOXICOLOGY.
0430..............................................  BOTANY.
0434..............................................  PLANT PATHOLOGY.
0435..............................................  PLANT PHYSIOLOGY.
0437..............................................  HORTICULTURE.
0440..............................................  GENETICS.
0454..............................................  RANGELAND
                                                     MANAGEMENT.
0457..............................................  SOIL CONSERVATION.
0460..............................................  FORESTRY.
0470..............................................  SOIL SCIENCE.

[[Page 32101]]

 
0471..............................................  AGRONOMY.
0480..............................................  FISH AND WILDLIFE
                                                     ADMINISTRATION.
0482..............................................  FISH BIOLOGY.
0485..............................................  WILDLIFE REFUGE
                                                     MANAGEMENT.
0486..............................................  WILDLIFE BIOLOGY.
0487..............................................  ANIMAL SCIENCE.
0499..............................................  BIOLOGICAL SCIENCE
                                                     STUDENT TRAINEE.
0501..............................................  FINANCIAL
                                                     ADMINISTRATION AND
                                                     PROGRAM.
0505..............................................  FINANICIAL
                                                     MANAGEMENT.
0510..............................................  ACCOUNTING.
0511..............................................  AUDITING.
0512..............................................  INTERNAL REVENUE
                                                     AGENT.
0526..............................................  TAX SPECIALIST.
0560..............................................  BUDGET ANALYSIS.
0599..............................................  FINANCIAL MANAGEMENT
                                                     STUDENT TRAINEE.
0601..............................................  GENERAL HEALTH
                                                     SCIENCE.
0602..............................................  MEDICAL OFFICER.
0603..............................................  PHYSICIAN ASSISTANT.
0610..............................................  NURSE.
0630..............................................  DIETICIAN AND
                                                     NUTRITIONIST.
0631..............................................  OCCUPATIONAL
                                                     THERAPIST.
0633..............................................  PHYSICAL THERAPIST.
0635..............................................  KINESIOTHERAPY
                                                     THERAPIST.
0637..............................................  MANUAL ARTS
                                                     THERAPIST.
0639..............................................  EDUCATIONAL
                                                     THERAPIST.
0644..............................................  MEDICAL
                                                     TECHNOLOGIST.
0660..............................................  PHARMACIST.
0662..............................................  OPTOMETRIST.
0665..............................................  SPEECH PATHOLOGY AND
                                                     AUDIOLOGY.
0668..............................................  PODIATRIST.
0669..............................................  MEDICAL RECORDS
                                                     ADMINISTRATION.
0671..............................................  HEALTH SYSTEMS
                                                     SPECIALIST.
0680..............................................  DENTAL OFFICER.
0690..............................................  INDUSTRIAL HYGIENE.
0699..............................................  MEDICAL AND HEALTH
                                                     STUDENT TRAINEE.
0701..............................................  VETERINARY MEDICAL
                                                     SCIENCE.
0799..............................................  VETERINARY STUDENT
                                                     TRAINEE.
0801..............................................  GENERAL ENGINEERING.
0803..............................................  SAFETY ENGINEERING.
0804..............................................  FIRE PROTECTION
                                                     ENGINEERING.
0806..............................................  MATERIALS
                                                     ENGINEERING.
0807..............................................  LANDSCAPE
                                                     ARCHITECTURE.
0808..............................................  ARCHITECTURE.
0810..............................................  CIVIL ENGINEERING.
0819..............................................  ENVIRONMENTAL
                                                     ENGINEERING.
0830..............................................  MECHANICAL
                                                     ENGINEERING.
0840..............................................  NUCLEAR ENGINEERING.
0850..............................................  ELECTRICAL
                                                     ENGINEERING.
0854..............................................  COMPUTER
                                                     ENGINEERING.
0855..............................................  ELECTRONICS
                                                     ENGINEERING.
0858..............................................  BIOMEDICAL
                                                     ENGINEERING.
0861..............................................  AEROSPACE
                                                     ENGINEERING.
0871..............................................  NAVAL ARCHITECTURE.
0880..............................................  MINING ENGINEERING.
0881..............................................  PETROLEUM
                                                     ENGINEERING.
0890..............................................  AGRICULTURAL
                                                     ENGINEERING.
0893..............................................  CHEMICAL
                                                     ENGINEERING.
0896..............................................  INDUSTRIAL ENGINEER.
0899..............................................  ENGINEERING AND
                                                     ARCHITECTURE
                                                     STUDENT TRAINEE.
0901..............................................  GENERAL LEGAL AND
                                                     KINDRED
                                                     ADMINISTRATION.
0904..............................................  LAW CLERK.
0905..............................................  GENERAL ATTORNEY.
0950..............................................  PARALEGAL
                                                     SPECIALIST.
0958..............................................  EMPLOYEE BENEFITS
                                                     LAW.
0965..............................................  LAND LAW EXAMINING.
0967..............................................  PASSPORT AND VISA
                                                     EXAMINING.
0987..............................................  TAX LAW SPECIALIST.
0991..............................................  WORKERS'
                                                     COMPENSATION CLAIMS
                                                     EXAMINING.
0993..............................................  RAILROAD RETIREMENT
                                                     CLAIMS EXAMINING.
0996..............................................  VETERANS CLAIMS
                                                     EXAMINING.
0999..............................................  LEGAL OCCUPATIONS
                                                     STUDENT TRAINEE.
1001..............................................  GENERAL ARTS AND
                                                     INFORMATION.

[[Page 32102]]

 
1008..............................................  INTERIOR DESIGN.
1010..............................................  EXHIBITS SPECIALIST.
1015..............................................  MUSEUM CURATOR.
1016..............................................  MUSEUM SPECIALIST.
1020..............................................  ILLUSTRATOR.
1035..............................................  PUBLIC AFFAIRS.
1040..............................................  LANGUAGE SPECIALIST.
1056..............................................  ART SPECIALIST.
1060..............................................  PHOTOGRAPHY.
1071..............................................  AUDIOVISUAL
                                                     PRODUCTION.
1082..............................................  WRITING AND EDITING.
1083..............................................  TECHNICAL WRITING
                                                     AND EDITING.
1084..............................................  VISUAL INFORMATION.
1099..............................................  INFORMATION AND ARTS
                                                     STUDENT TRAINEE.
1101..............................................  GENERAL BUSINESS AND
                                                     INDUSTRY.
1102..............................................  CONTRACTING.
1103..............................................  INDUSTRIAL PROPERTY
                                                     MANAGEMENT.
1104..............................................  PROPERTY DISPOSAL.
1109..............................................  GRANTS MANAGEMENT.
1130..............................................  PUBLIC UTILITIES
                                                     SPECIALIST.
1140..............................................  TRADE SPECIALIST.
1144..............................................  COMMISSARY
                                                     MANAGEMENT.
1145..............................................  AGRICULTURE PROGRAM
                                                     SPECIALIST.
1146..............................................  AGRICULTURAL
                                                     MARKETING.
1147..............................................  AGRICULTURAL MARKET
                                                     REPORTING.
1150..............................................  INDUSTRIAL
                                                     SPECIALIST.
1160..............................................  FINANCIAL ANALYSIS.
1163..............................................  INSURANCE EXAMINING.
1165..............................................  LOAN SPECIALIST.
1169..............................................  INTERNAL REVENUE
                                                     OFFICER.
1170..............................................  REALTY.
1171..............................................  APPRAISING.
1173..............................................  HOUSING MANAGEMENT.
1176..............................................  BUILDING MANAGEMENT.
1199..............................................  BUSINESS AND
                                                     INDUSTRY STUDENT
                                                     TRAINEE.
1210..............................................  COPYRIGHT.
1220..............................................  PATENT
                                                     ADMINISTRATION.
1221..............................................  PATENT ADVISER.
1222..............................................  PATENT ATTORNEY.
1223..............................................  PATENT CLASSIFYING.
1224..............................................  PATENT EXAMINING.
1226..............................................  DESIGN PATENT
                                                     EXAMINING.
1299..............................................  COPYRIGHT AND PATENT
                                                     STUDENT TRAINEE.
1301..............................................  GENERAL PHYSICAL
                                                     SCIENCE.
1306..............................................  HEALTH PHYSICS.
1310..............................................  PHYSICS.
1313..............................................  GEOPHYSICS.
1315..............................................  HYDROLOGY.
1320..............................................  CHEMISTRY.
1321..............................................  METALLURGY.
1330..............................................  ASTRONOMY AND SPACE
                                                     SCIENCE.
1340..............................................  METEOROLOGY.
1350..............................................  GEOLOGY.
1360..............................................  OCEANOGRAPHY.
1370..............................................  CARTOGRAPHY.
1372..............................................  GEODESY.
1373..............................................  LAND SURVEYING.
1380..............................................  FOREST PRODUCTS
                                                     TECHNOLOGY.
1382..............................................  FOOD TECHNOLOGY.
1384..............................................  TEXTILE TECHNOLOGY.
1386..............................................  PHOTOGRAPHIC
                                                     TECHNOLOGY.
1397..............................................  DOCUMENT ANALYSIS.
1399..............................................  PHYSICAL SCIENCE
                                                     STUDENT TRAINEE.
1410..............................................  LIBRARIAN.
1412..............................................  TECHNICAL
                                                     INFORMATION
                                                     SERVICES.
1420..............................................  ARCHIVIST.
1499..............................................  LIBRARY AND ARCHIVES
                                                     STUDENT TRAINEE.
1501..............................................  GENERAL MATHEMATICS.
1510..............................................  ACTUARIAL SCIENCE.
1515..............................................  OPERATIONS RESEARCH.
1520..............................................  MATHEMATICS.
1529..............................................  MATHEMATICAL
                                                     STATISTICS.

[[Page 32103]]

 
1530..............................................  STATISTICS.
1540..............................................  CRYPTOGRAPHY.
1541..............................................  CRYPTANALYSIS.
1550..............................................  COMPUTER SCIENCE.
1599..............................................  MATHEMATICS AND
                                                     STATISTICS STUDENT
                                                     TRAINEE.
1601..............................................  EQUIPMENT,
                                                     FACILITIES, AND
                                                     SERVICES.
1630..............................................  CEMETARY
                                                     ADMINISTRATION
                                                     SERVICES.
1640..............................................  FACILITY OPERATIONS
                                                     SERVICES.
1654..............................................  PRINTING SERVICES.
1667..............................................  FOOD SERVICES.
1670..............................................  EQUIPMENT SERVICES.
1699..............................................  EQUIPMENT,
                                                     FACILITIES, AND
                                                     SERVICES STUDENT
                                                     TRAINEE.
1701..............................................  GENERAL EDUCATION
                                                     AND TRAINING.
1702..............................................  EDUCATION AND
                                                     TRAINING.
1710..............................................  EDUCATION AND
                                                     VOCATIONAL
                                                     TRAINING.
1712..............................................  TRAINING
                                                     INSTRUCTION.
1715..............................................  VOCATIONAL
                                                     REHABILITATION.
1720..............................................  EDUCATION PROGRAM.
1725..............................................  PUBLIC HEALTH
                                                     EDUCATOR.
1730..............................................  EDUCATION RESEARCH.
1740..............................................  EDUCATION SERVICES.
1750..............................................  INSTRUCTIONAL
                                                     SYSTEMS.
1799..............................................  EDUCATION STUDENT
                                                     TRAINEE.
1801..............................................  GENERAL INSPECTION,
                                                     INVESTIGATION,
                                                     ENFORCEMENT, AND
                                                     COMPLIANCE.
1802..............................................  COMPLIANCE
                                                     INSPECTION AND
                                                     SUPPORT.
1810..............................................  GENERAL
                                                     INVESTIGATION.
1822..............................................  MINE SAFETY AND
                                                     HEALTH INSPECTION.
1825..............................................  AVIATION SAFETY.
1849..............................................  WAGE AND HOUR
                                                     INVESTIGATION.
1862..............................................  CONSUMER SAFETY
                                                     INSPECTION.
1863..............................................  FOOD INSPECTION.
1889..............................................  IMPORT COMPLIANCE.
1895..............................................  CUSTOMS AND BORDER
                                                     PROTECTION.
1899..............................................  INVESTIGATION
                                                     STUDENT TRAINEE.
1910..............................................  QUALITY ASSURANCE.
1980..............................................  AGRICULTURAL
                                                     COMMODITY GRADING.
1999..............................................  QUALITY INSPECTION
                                                     STUDENT TRAINEE.
2001..............................................  GENERAL SUPPLY.
2003..............................................  SUPPLY PROGRAM
                                                     MANAGEMENT.
2010..............................................  INVENTORY
                                                     MANAGEMENT.
2030..............................................  DISTRIBUTION
                                                     FACILITIES AND
                                                     STORAGE MANAGEMENT.
2032..............................................  PACKAGING.
2099..............................................  SUPPLY STUDENT
                                                     TRAINEE.
2101..............................................  TRANSPORTATION
                                                     SPECIALIST.
2110..............................................  TRANSPORTATION
                                                     INDUSTRY ANALYSIS.
2121..............................................  RAILROAD SAFETY.
2123..............................................  MOTOR CARRIER
                                                     SAFETY.
2125..............................................  HIGHWAY SAFETY.
2130..............................................  TRAFFIC MANAGEMENT.
2150..............................................  TRANSPORTATION
                                                     OPERATIONS.
2152..............................................  AIR TRAFFIC CONTROL.
2161..............................................  MARINE CARGO.
2181..............................................  AIRCRAFT OPERATIONS.
2183..............................................  AIR NAVIGATION.
2199..............................................  TRANSPORTATION
                                                     STUDENT TRAINEE.
2210..............................................  INFORMATION
                                                     TECHNOLOGY
                                                     MANAGEMENT.
2299..............................................  INFORMATION
                                                     TECHNOLOGY STUDENT
                                                     TRAINEE.
------------------------------------------------------------------------
                    TECHNICAL MANAGEMENT SUPPORT (NJ)
------------------------------------------------------------------------
0019..............................................  SAFETY TECHNICIAN.
0021..............................................  COMMUNITY PLANNING
                                                     TECHNICIAN.
0102..............................................  SOCIAL SCIENCE AID
                                                     AND TECHNICIAN.
0181..............................................  PSYCHOLOGY AID AND
                                                     TECHNICIAN.
0187..............................................  SOCIAL SERVICES.
0332..............................................  COMPUTER OPERATION.
0342..............................................  SUPPORT SERVICES
                                                     ADMINISTRATION.
0390..............................................  TELECOMMUNICATIONS
                                                     PROCESSING.
0392..............................................  GENERAL
                                                     TELECOMMUNICATIONS.
0404..............................................  BIOLOGICAL SCIENCE
                                                     TECHNICIAN.
0421..............................................  PLANT PROTECTION
                                                     TECHNICIAN.
0455..............................................  RANGE TECHNICIAN.

[[Page 32104]]

 
0458..............................................  SOIL CONSERVATION
                                                     TECHNICIAN.
0459..............................................  IRRIGATION SYSTEM
                                                     OPERATION.
0462..............................................  FORESTRY TECHNICIAN.
0592..............................................  TAX EXAMINING.
0620..............................................  PRACTICAL NURSE.
0621..............................................  NURSING ASSISTANT.
0622..............................................  MEDICAL SUPPLY AIDE
                                                     AND TECHNICIAN.
0625..............................................  AUTOPSY ASSISTANT.
0646..............................................  PATHOLOGY
                                                     TECHNICIAN.
0647..............................................  DIAGNOSTIC
                                                     RADIOLOGIC
                                                     TECHNOLOGIST.
0648..............................................  THERAPEUTIC
                                                     RADIOLOGIC
                                                     TECHNOLOGIST.
0649..............................................  MEDICAL INSTRUMENT
                                                     TECHNICIAN.
0650..............................................  MEDICAL TECHNICAL
                                                     ASSISTANT.
0664..............................................  RESTORATION
                                                     TECHNICIAN.
0667..............................................  ORTHOTIST AND
                                                     PROSTHETIST.
0672..............................................  PROSTHETIC
                                                     REPRESENTATIVE.
0675..............................................  MEDICAL RECORDS
                                                     TECHNICIAN.
0679..............................................  MEDICAL SUPPORT
                                                     ASSISTANCE.
0681..............................................  DENTAL ASSISTANT.
0698..............................................  ENVIRONMENTAL HEALTH
                                                     TECHNICIAN.
0802..............................................  ENGINEERING
                                                     TECHNICAL.
0809..............................................  CONSTRUCTION CONTROL
                                                     TECHNICAL.
0817..............................................  SURVEY TECHNICAL.
0818..............................................  ENGINEERING
                                                     DRAFTING.
0856..............................................  ELECTRONICS
                                                     TECHNICAL.
0873..............................................  MARINE SURVEY
                                                     TECHNICAL.
0895..............................................  INDUSTRIAL
                                                     ENGINEERING
                                                     TECHNICAL.
0962..............................................  CONTACT
                                                     REPRESENTATIVE.
0963..............................................  LEGAL INSTRUMENTS
                                                     EXAMINING.
0990..............................................  GENERAL CLAIMS
                                                     EXAMINING.
0992..............................................  LOSS AND DAMAGE
                                                     CLAIMS EXAMINING.
0995..............................................  DEPENDENT AND
                                                     ESTATES CLAIMS
                                                     EXAMINING.
1016..............................................  MUSEUM AID AND
                                                     TECHNICIAN.
1152..............................................  PRODUCTION CONTROL.
1202..............................................  PATENT TECHNICIAN.
1211..............................................  COPYRIGHT
                                                     TECHNICIAN.
1311..............................................  PHYSICAL SCIENCE
                                                     TECHNICIAN.
1316..............................................  HYDROLOGIC
                                                     TECHNICIAN.
1341..............................................  METEOROLOGICAL
                                                     TECHNICIAN.
1371..............................................  CARTOGRAPHIC
                                                     TECHNICIAN.
1374..............................................  GEODETIC TECHNICIAN.
1411..............................................  LIBRARY TECHNICIAN.
1421..............................................  ARCHIVES TECHNICIAN.
1521..............................................  MATHEMATICS
                                                     TECHNICIAN.
1531..............................................  STATISTICAL
                                                     ASSISTANT.
1658..............................................  LAUNDRY OPERATIONS.
1702..............................................  EDUCATION AND
                                                     TRAINING
                                                     TECHNICIAN.
2005..............................................  SUPPLY CLERICAL AND
                                                     TECHNICIAN.
2185..............................................  AIRCREW TECHNICIAN.
------------------------------------------------------------------------
                       ADMINISTRATIVE SUPPORT (NK)
------------------------------------------------------------------------
0029..............................................  ENVIRONMENTAL
                                                     PROTECTION
                                                     ASSISTANT.
0085..............................................  SECURITY GUARD.
0086..............................................  SECURITY CLERICAL
                                                     AND ASSISTANCE.
0105..............................................  SOCIAL INSURANCE
                                                     ADMINISTRATION.
0107..............................................  HEALTH INSURANCE
                                                     ADMINISTRATION.
0119..............................................  ECONOMICS ASSISTANT.
0186..............................................  SOCIAL SERVICES AID
                                                     AND ASSISTANCE.
0189..............................................  RECREATION AID AND
                                                     ASSISTANCE.
0203..............................................  HUMAN RESOURCES
                                                     ASSISTANCE.
0204..............................................  MILITARY PERSONNEL
                                                     CLERICAL AND
                                                     TECHNICIAN.
0303..............................................  MISCELLANEOUS CLERK
                                                     AND ASSISTANT.
0304..............................................  INFORMATION
                                                     RECEPTIONIST.
0305..............................................  MAIL AND FILE.
0309..............................................  CORRESPONDENCE
                                                     CLERK.
0313..............................................  WORK UNIT
                                                     SUPERVISING.
0318..............................................  SECRETARY.
0319..............................................  CLOSED MICROPHONE
                                                     REPORTING.
0322..............................................  CLERK-TYPIST.
0326..............................................  OFFICE AUTOMATION
                                                     CLERICAL AND
                                                     ASSISTANCE.
0335..............................................  COMPUTER CLERK AND
                                                     ASSISTANCE.

[[Page 32105]]

 
0344..............................................  MANAGEMENT AND
                                                     PROGRAM CLERICAL
                                                     AND ASSISTANCE.
0350..............................................  EQUIPMENT OPERATOR.
0356..............................................  DATA TRANSCRIBER.
0357..............................................  CODING.
0361..............................................  EQUAL OPPORTUNITY
                                                     ASSISTANCE.
0382..............................................  TELEPHONE OPERATING.
0394..............................................  COMMUNICATIONS
                                                     CLERICAL.
0503..............................................  FINANICIAL CLERICAL
                                                     AND TECHNICIAN.
0525..............................................  ACCOUNTING
                                                     TECHNICIAN.
0530..............................................  CASH PROCESSING.
0540..............................................  VOUCHER EXAMINING.
0544..............................................  CIVILIAN PAY.
0545..............................................  MILITARY PAY.
0561..............................................  BUDGET CLERICAL AND
                                                     ASSISTANCE.
0986..............................................  LEGAL ASSISTANCE.
0998..............................................  CLAIMS ASSISTANCE
                                                     AND EXAMINING.
1016..............................................  MUSEUM AID.
1087..............................................  EDITORIAL
                                                     ASSISTANCE.
1105..............................................  PURCHASING.
1106..............................................  PROCUREMENT CLERICAL
                                                     AND TECHNICIAN.
1107..............................................  PROPERTY DISPOSAL
                                                     CLERICAL AND
                                                     TECHNICIAN.
1603..............................................  EQUIPMENT,
                                                     FACILITIES, AND
                                                     SERVICES
                                                     ASSISTANCE.
2091..............................................  SALES STORE
                                                     CLERICAL.
2102..............................................  TRANSPORTATION CLERK
                                                     AND ASSISTANT.
2131..............................................  FREIGHT RATE.
2135..............................................  TRANSPORTATION LOSS
                                                     AND DAMAGE CLAIMS
                                                     EXAMINING.
2144..............................................  CARGO SCHEDULING.
2151..............................................  DISPATCHING.
2154..............................................  AIR TRAFFIC
                                                     ASSISTANCE.
------------------------------------------------------------------------

Appendix D

Definitions of Career Paths and Corresponding Broadband Levels

Career Path: Business Management and Technical Management Professional

    Includes professional and management positions in science, 
engineering, medicine, and business management. These positions 
often have positive degree requirements.
    Level I. Includes student trainees. Education and employment 
must be part of a formal student employment program. Specific, clear 
and detailed instructions and supervision are given. The level of 
education and experience completed is a major consideration in 
establishing the level of on-the-job training and work assignments.
    Level II. This is the entry or developmental stage, preparing 
employees for the full and independent performance of their work. 
Specific, clear, and detailed instructions and supervision are given 
upon entry; recurring assignments are carried out independently. 
Conducts successive activities with objectives and priorities 
identified by supervisor or team leader; assistance given on new or 
unusual projects or situations. Finished work is reviewed to ensure 
accuracy and technical soundness.
    Level III. This is the advanced developmental/target career 
level of this career path. Employee plans and carries out 
assignments independently; conceives and defines solutions to highly 
complex problems; analyzes, interprets, and reports findings of 
projects; and guides technical and programmatic work of team members 
in comparable junior grades. Completed work and reports are reviewed 
for feasibility, compatibility with other work or effectiveness in 
meeting requirements or expected results.
    Level IV. Professionals at this level are experts within their 
functional areas; heads of branches or divisions; or key program 
administrators. Conducts or directs activities or assists higher 
levels on challenging and innovative program development with only 
general guidance on policy, resources and planning; develops 
solutions to highly complex problems requiring various disciplines; 
responsible for fulfilling program objectives. Results are 
authoritative and impact programs or the well-being of substantial 
numbers of people.

Career Path: Technical Management Support

    Includes nonprofessional positions that support science and 
engineering activities through application of various skills in 
areas such as the following: Engineering, physical, chemical, 
biological, medical, and mathematical sciences.
    Level I. This includes trainees who develop technical support 
knowledge through actual work experience. Performs repetitive tasks 
using knowledge of standardized procedures and operations. Receives 
specific, clear and detailed instruction and supervision. Completed 
work is reviewed for technical soundness.
    Level II. Technicians at this level require a practical 
knowledge of standard procedures in a technical field. Skill in 
applying knowledge of basic principles, concepts, and methodology of 
occupational and/or technical methods is required. Carries out 
prescribed procedures and relies heavily on precedent methods. Work 
is reviewed for technical adequacy and accuracy, and adherence to 
instructions.
    Level III. This is the advanced developmental level of this 
career path, requiring extensive training or experience. Work 
requires some adapting of existing precedents or techniques. 
Receives outline of objectives desired and description of operating 
characteristics and theory involved. Completed assignments are 
reviewed for compliance with instructions, adequacy, judgment, and 
satisfaction of requirements.
    Level IV. Technicians at this level are considered to have 
professional level knowledge of a specific field. Receives general 
guidance on overall objectives and resources. Conceives, recommends, 
and tests new techniques or methods. Completed work is reviewed for 
overall soundness and compliance with overall project objectives.

Career Path: Administrative Support

    Includes clerical, secretarial and assistant work in 
nonscientific/engineering occupations.
    Level I. This entry level, which includes student trainees as 
well as others with some experience, requires a fundamental 
knowledge of clerical/administrative field. Developmental 
assignments may be given which lead to duties at a higher group 
level. Performs repetitive tasks; specific, clear, and detailed 
instruction and supervision; with more experience utilizes knowledge 
of standardized procedures and operations. Assistance is given on 
new or unusual projects. Completed work is reviewed for technical 
soundness.

[[Page 32106]]

    Level II. This is the journey level that requires knowledge of 
standardized rules, procedures or operations requiring considerable 
training. General guidance is received on overall objectives and 
resources. Completed assignments may be reviewed for overall 
soundness or meeting expected results.
    Level III. This is the senior level that requires knowledge of 
extensive procedures and operations requiring extensive training. 
Receives general guidance on overall resources and objectives. 
Skilled in applying knowledge of basic principles, concepts and 
methodology of administrative occupation and/or technical methods. 
Results are accepted as authoritative and normally without 
significant change.
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Appendix F

Intervention Impact Evaluation Model

DoD Civilian Acquisition Workforce Personnel Management 
Demonstration Project

----------------------------------------------------------------------------------------------------------------
             Intervention                  Expected effects             Measures               Data sources
----------------------------------------------------------------------------------------------------------------
                                                 1. COMPENSATION
----------------------------------------------------------------------------------------------------------------
a. Broadbanding......................  Increased                Perceived flexibility..   Attitude
                                        organizational                                    survey.
                                        flexibility, i.e.,                                Focus groups.
                                        simplified assignment,
                                        pay setting.
                                       Reduced administrative   Actual/perceived time    Personnel office data,
                                        workload, paperwork      savings.                 program management
                                        reduction.                                        evaluation (PME)
                                                                                          results, attitude
                                                                                          survey.
b. Maximum Broadband Level...........  Higher starting basic    Starting basic pay of    Workforce data.
                                        pay.                     banded v. non-banded
                                                                 employees.
c. Accelerated Compensation for        More gradual basic pay   Progression of new       Workforce data.
 Developmental Positions.               progression at entry     hires over time by
                                        levels.                  broadband, career
                                                                 path, scores, deltas.
                                       Increased basic pay       Mean salaries    Workforce
                                        potential.               by broadband, career     data.
                                                                 path and demographics.
                                                                 Total payroll    Personnel
                                                                 costs.                   office data.
                                       Increased satisfaction   Employee perceptions of  Attitude survey.
                                        with advancement.        advancement.
                                       Increased basic pay      Basic pay satisfaction,  Attitude survey.
                                        satisfaction.            internal/external
                                                                 equity.
                                       Improved recruitment of  Offer, acceptance,       Personnel office data.
                                        interns and recent       declination, retention
                                        graduates.               ratios.
d. Student Intern Relocation           Greater ability to hire   Offer/          Personnel office data.
 Incentive.                             students attending       acceptance ratios.
                                        colleges in different    Percent
                                        geographical locations.  declinations..
                                       Elevated quality of       Perceived        Attitude
                                        hires.                   quality of candidates/   survey, focus groups,
                                                                 hire, i.e.,              selecting official
                                                                 experience, skills,      interviews.
                                                                 education.
                                                                 First offer      Personnel
                                                                 accepted.                office data.
                                                                 Grade point      Personnel
                                                                 averages.                office data.
                                                                 Educational      Personnel
                                                                 levels.                  office data.
e. Conversion Buy-ins................  Employee acceptance....   Employee         Attitude
                                                                 perceptions of equity,   survey.
                                                                 fairness.
                                                                 Cost as a        Workforce
                                                                 percent of payroll.      data.
f. Supervisory and Team Leader Cash     Increased        Perceived        Attitude
 Differentials.                         incentive to accept      motivational power.      survey.
                                        supervisory or team
                                        leader positions.
                                        Improved         Offer,           Personnel
                                        recruitment and          acceptance, retention    office data.
                                        retention of             ratios.
                                        supervisors and team
                                        leaders.
                                        Flatter          Supervisory/     Workforce
                                        organization.            non-supervisory ratios.  data.
                                        Improved         Employee         Attitude
                                        quality of supervisory   perceptions of quality   survey, focus groups.
                                        staff.                   of supervisory and
                                                                 team leader staff.
----------------------------------------------------------------------------------------------------------------
                                     2. CONTRIBUTION/PERFORMANCE MANAGEMENT
----------------------------------------------------------------------------------------------------------------
a. AcqDemo Contribution Rating         Reward/motivate          Perceived motivational   Attitude survey.
 Awards; Title 5 Special Act Awards,    contribution.            power.                   Workforce
 Honorary Awards, and Other Title 5    To support fair and       Amount and       data.
 Awards, e.g., Time-Off.                appropriate              number of awards by
                                        distribution of awards.  type, demographics.
                                                                 Perceived        Attitude
                                                                 fairness of awards.      survey.
                                                                 Satisfaction     Attitude
                                                                 with monetary and non-   survey.
                                                                 monetary awards.
b. Contribution-based Basic Pay        Increased basic pay/      Perceived        Attitude
 Progression.                           contribution-            basic pay/contribution-  survey.
                                        performance link.        performance link.
                                                                 Perceived        Attitude
                                                                 fairness of scoring.     survey.
                                       Improved contribution/    Satisfaction     Attitude
                                        performance feedback.    with scoring.            survey.
                                                                 Employee trust   Attitude
                                                                 in supervisors/pay       survey.
                                                                 pool panels.
                                                                 Adequacy of      Attitude
                                                                 contribution/            survey.
                                                                 performance feedback.

[[Page 32118]]

 
                                       Decreased turnover of    Turnover by integrated   Workforce data.
                                        employees scoring in     pay schedule
                                        normal or                compensation
                                        undercompensated         categories.
                                        categories/Increased
                                        turnover of employees
                                        scoring in
                                        overcompensated
                                        category.
                                       Alignment of             Linkage of contribution   Contribution
                                        organizational and       expectations and         plans.
                                        individual               objectives to            Strategic
                                        contribution             strategic plans' goals.  Plans.
                                        expectations,
                                        objectives, and
                                        results.
                                       Increased employee        Perceived        Attitude
                                        involvement in           involvement.             survey/focus groups.
                                        contribution planning    Contribution     Personnel/Demo
                                        and assessment.          management.              regulations.
c. New Appraisal Process:              Reduce administrative    Employee and supervisor  Attitude survey.
 Contribution-based Compensation and    burden.                  perceptions of revised
 Appraisal System (CCAS).                                        procedures.
                                       Improved communication.  Perceived fairness of    Focus groups.
                                                                 process.
d. Contribution Plan Development.....  Better communication of  Feedback and coaching     Focus groups.
                                        contribution             procedures used.         Personnel
                                        expectations,                                     office data.
                                        performance
                                        requirements, and
                                        objectives.
                                       Improved satisfaction    Perceived workforce       Attitude
                                        and quality of           quality.                 survey.
                                        workforce.                                        Focus groups.
----------------------------------------------------------------------------------------------------------------
                                           3. POSITION CLASSIFICATION
----------------------------------------------------------------------------------------------------------------
a. Improved Classification System      Reduction in amount of    Time spent on    Personnel
 with Generic Standards.                time and paperwork       classification           office data.
                                        spent on                 procedures.              Personnel
                                        classification.          Reduction of     office data.
                                                                 paperwork/number of
                                                                 personnel actions
                                                                 (classification--promo
                                                                 tion, change to lower
                                                                 broadband level).
                                       Simplified, automated     Adaptable to     Personnel
                                        classification           changes; number of       office data.
                                        applications and         system change requests.  Focus groups,
                                        procedures.              Ready access;    surveys.
                                                                 number and length of     Personnel
                                                                 down times.              office data.
                                                                 Easy to use;     AcqDemo
                                                                 number of user           Program Office data.
                                                                 inquiries.
                                       Ease of Use............   Factors,         Attitude
                                                                 descriptors, and         survey.
                                                                 discriminators easy to   Focus groups.
                                                                 decipher and apply to
                                                                 various positions at
                                                                 different
                                                                 organizational levels.
                                                                 Perception of    Attitude
                                                                 managers, supervisors,   survey.
                                                                 administrative           Focus groups.
                                                                 personnel, and HR
                                                                 specialists of time
                                                                 savings, ease of use.
                                                                 Number of        Personnel
                                                                 employee                 office data.
                                                                 classification appeals.
b. Delegation of Classification        Increased supervisory    Perceived authority....  Attitude survey.
 Authority.                             authority and
                                        accountability.
                                       Decreased conflict        Number of        Personnel
                                        between management and   classification           records.
                                        human resources staff.   disputes/appeals pre-
                                                                 and post-conversion.
                                                                 Management       Attitude.
                                                                 satisfaction with
                                                                 service provided by
                                                                 the HR Office.
                                       No negative impact on    Internal pay equity....   Personnel
                                        internal pay equity.                              records.
                                                                                          Attitude
                                                                                          survey.
----------------------------------------------------------------------------------------------------------------
                                     4. REDUCTION-IN-FORCE (RIF) PROCEDURES
----------------------------------------------------------------------------------------------------------------
a. Modified RIF......................  Minimize loss of high     Separated        Workforce
                                        contributing employees.  employees by             data.
                                                                 demographics, overall    Attitude
                                                                 contribution score       survey and focus
                                                                 deltas, and integrated   groups.
                                                                 pay schedule
                                                                 compensation regions.
                                                                 Satisfaction     Attitude
                                                                 with RIF process.        survey and focus
                                                                                          groups.
                                       Contain cost and          Cost             Personnel/
                                        disruption.              comparisons of           Budget Office data.
                                                                 traditional vs.
                                                                 modified RIF.
                                                                 Number and       Personnel
                                                                 cost of separation       office data.
                                                                 incentives.
                                                                 Time to          Personnel
                                                                 conduct RIF.             office data.
                                                                 Number of        Personnel
                                                                 employees affected.      office data.

[[Page 32119]]

 
                                                                 Number of        Personnel
                                                                 employees outplaced.     office data.
                                                                 Number of        Personnel
                                                                 appeals/reinstatements.  office data.
----------------------------------------------------------------------------------------------------------------
                                              5. HIRING AUTHORITIES
----------------------------------------------------------------------------------------------------------------
a. Direct Hire for the Business and    Improved ease and         Perceived        Attitude
 Technical Management Professional      timeliness of hiring     flexibility in           survey.
 Career Path positions.                 process.                 authority to hire.       Personnel
                                                                 Shortened        office data.
                                                                 timeline from
                                                                 initiation of action
                                                                 to firm offer letter/
                                                                 EOD.
b. Veteran Direct Hire Appointments    Improved recruitment of   Offer/           Personnel
 for the Business and Technical         employees for shortage   acceptance ratios.       office data.
 Management Professional Career Path    category positions.      Percent          Personnel
 and Technical Management Support                                declinations.            office data.
 Career.                                                         Timeliness of    Personnel
                                                                 job offers.              office data.
                                       Elevated quality of       Perceived        Attitude
                                        hires.                   quality of candidates/   survey, focus groups,
                                                                 hire, i.e.,              selecting official
                                                                 experience, skills,      interviews.
                                                                 education.
                                                                 First offer      Personnel
                                                                 accepted.                office data.
                                                                 Grade point      Personnel
                                                                 averages.                office data.
                                                                 Educational      Personnel
                                                                 levels.                  office data.
                                       Reduced administrative    Actual           Personnel
                                        workload/paperwork       efficiencies and         office data.
                                        reduction.               perceived skills.        Attitude
                                                                                          survey, focus groups.
c. Acquisition Student Intern Hiring   Improved recruitment of   Offer/           Personnel
 Authority.                             employees for AWF        acceptance ratios.       office data.
d. Scholastic Achievement Appointment   positions.               Percent          Personnel
                                                                 declinations.            office data.
                                                                 Timeliness of    Personnel
                                                                 job offers.              office data.
                                       Elevated quality of       Perceived        Attitude
                                        hires.                   quality of candidates/   survey, focus groups,
                                                                 hire, i.e.,              selecting official
                                                                 experience, skills,      interviews.
                                                                 education.
                                                                 First offer      Personnel
                                                                 accepted.                office data.
                                                                 Grade point      Personnel
                                                                 averages.                office data.
                                                                 Educational      Personnel
                                                                 levels.                  office data.
e. Simplified Accelerated Processes:   Improved ease and         Perceived        Attitude
 Name Request, Rule of Many, and List   timeliness of hiring     flexibility in           survey.
 or Certificate of Eligibles..          process.                 authority to hire.       Personnel
                                                                 Shortened        office data.
                                                                 timeline from
                                                                 initiation of action
                                                                 to firm offer letter/
                                                                 EOD.
                                       Improved recruitment of   Offer/           Personnel
                                        employees for AWF and    acceptance ratios.       office data.
                                        direct support           Percent          Personnel
                                        positions.               declinations.            office data.
                                                                 Timeliness of    Personnel
                                                                 job offers.              office data.
                                       Elevated quality of       Perceived        Attitude
                                        hires.                   quality of candidates/   survey, focus groups,
                                                                 hire, i.e.,              selecting official
                                                                 experience, skills,      interviews.
                                                                 education.
                                                                 First offer      Personnel
                                                                 accepted.                office data.
                                                                 Grade point      Personnel
                                                                 averages.                office data.
                                                                 Educational      Personnel
                                                                 levels.                  office data.
                                       Reduced administrative    Actual           Personnel
                                        workload/paperwork       efficiencies and         office data.
                                        reduction.               perceived skills.        Attitude
                                                                                          survey, focus groups.
f. Term Appointment Authority........  Increased capability to   Number and       Workforce
                                        expand and contract      length of appointments   data.
                                        workforce.               by type of position.     Personnel
                                                                                          office data.
                                                                 Number/          Personnel
                                                                 percentage of            office data.
                                                                 conversions from
                                                                 modified term to
                                                                 permanent.
----------------------------------------------------------------------------------------------------------------
                                                   6. STAFFING
----------------------------------------------------------------------------------------------------------------
a. Expanded Detail and Temporary       Increased capability to   Number and       Workforce
 Promotion to Higher Broadband Level.   expand and contract      length of details and    data.
                                        workforce.               temporary promotions
                                                                 by type of position.
                                                                 Number of        Personnel
                                                                 recipients receiving     office data.
                                                                 permanent promotions.
                                                                 Demographics     Personnel
                                                                 of recipients.           office data.
                                       Increased ability to      Number and       Workforce
                                        provide extended         length of details and    data.
                                        developmental            temporary promotions     Personnel
                                        assignments.             by developmental         office data.
                                                                 assignment.
                                                                 Demographics     Personnel
                                                                 of recipients.           office data.
                                                                 Realized         Personnel
                                                                 career growth.           office data.

[[Page 32120]]

 
b. Voluntary Emeritus Program........  Encourages retirees to    Frequency of     Personnel
                                        mentor junior            use, length of           office data.
                                        professionals or serve   assignment, type and
                                        as consultants.          level of position,
                                                                 hours/days worked,
                                                                 typical salary for
                                                                 position.
                                                                 Cost savings     Personnel
                                                                 by virtue of volunteer   office data.
                                                                 service.
                                                                 Volunteer and    Attitude
                                                                 management               survey, focus group,
                                                                 satisfaction.            interviews.
                                                                 Participation
                                                                 by non-AcqDemo
                                                                 participants.
----------------------------------------------------------------------------------------------------------------
                                      7. EXPANDED DEVELOPMENT OPPORTUNITIES
----------------------------------------------------------------------------------------------------------------
a. Sabbaticals.......................  Expanded range of         Number and       Workforce
                                        professional growth      type of opportunities    data.
                                        and development.         taken.
                                                                 Demographics     Personnel
                                                                 of participants.         office data.
                                                                 Increased        Workforce
                                                                 employee career          data.
                                                                 progression.             Personnel
                                                                 Employee and     office data.
                                                                 management               Attitude
                                                                 satisfaction.            survey.
                                       Application of enhanced  Employee and supervisor  Focus groups,
                                        knowledge and skills     perceptions.             interviews, attitude
                                        to work product,                                  survey.
                                        contribution
                                        expectations.
----------------------------------------------------------------------------------------------------------------
                                       8. COMBINATION OF ALL INTERVENTIONS
----------------------------------------------------------------------------------------------------------------
a. All...............................  Improved organizational  Combination of           All data sources.
                                        effectiveness.           personnel measures.
                                       Improved management of   Employee/Management job  Attitude survey.
                                        workforce.               satisfaction
                                                                 (intrinsic/extrinsic).
                                       Improved planning......   Planning         Strategic
                                                                 procedures.              planning documents.
                                                                 Perceived        Attitude
                                                                 effectiveness of         survey.
                                                                 planning procedures.
                                       Improved cross           Actual/perceived         Organizational charts.
                                        functional               coordination.
                                        coordination.
                                       Increased product        Customer satisfaction..  Customer satisfaction
                                        success.                                          surveys.
                                       Cost of demonstration    Project training/         Demo Program
                                        project innovation.      developmental costs      Office records.
                                                                 (staff salaries,         Contract
                                                                 contract cost,           documents.
                                                                 training hours per
                                                                 employee).
----------------------------------------------------------------------------------------------------------------

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