[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43339-43343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19576]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Department of Defense Science and Technology Reinvention 
Laboratory (STRL) Personnel Management Demonstration (Demo) Project 
Program

AGENCY: Assistant Secretary of Defense for Research and Engineering, 
DoD.

ACTION: Amendment of existing STRL Personnel Management Demonstration 
Project Programs.

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SUMMARY: STRLs may implement a new workforce shaping pilot program 
which provides the STRL lab directors the authority to dynamically 
shape the mix of technical skills and expertise in the workforces of 
such laboratories to achieve one or more of the objectives in section 
1109(a) of the NDAA for FY2016. The suite of workforce shaping tools 
available to STRL lab directors includes flexible length and renewable 
term technical appointments, modified re-employed annuitant authority, 
and modified voluntary early retirement and separation incentive 
authorities.

DATES: This notice may be implemented beginning on September 15, 2017.

FOR FURTHER INFORMATION CONTACT: 

Department of the Army

     ARL: Ms. Dianne Hawkins, Program Manager, ARL Personnel 
Demonstration Project, AMSRD-ARL-O-HR, 2800 Powder Mill Road, Adelphi, 
MD 20783-1197;
     AMRDEC: Mr. Chad Marshall, Demonstration Project Manager, 
AMRDEC, 5400 Fowler Road, Redstone Arsenal, AL 35898-5000;
     CERDEC: Mr. Christopher Tahaney, CERDEC Personnel 
Demonstration Project Administrator, C4ISR Campus Building 6002, Room 
D3126D, ATTN: RDER-DOS-WE, Aberdeen Proving Ground, MD 21005;
     ECBC: Ms. Patricia Milwicz, Management and Program 
Analyst, ECBC, Office of the Technical Director, Workforce Management 
Office, Department of the Army, ATTN: RDCB-DPC-W, 5183 Blackhawk Road, 
Building 3330, Aberdeen Proving Ground, MD 21010-5424;
     ERDC: Ms. Patricia Sullivan, Personnel Demonstration 
Project Manager, U.S. Army ERDC, 3909 Halls Ferry Road, Vicksburg, MS 
39180-6199;
     MRMC: Ms. Linda Krout, Personnel Demonstration Project 
Manager, 505 Scott St., Fort Detrick, MD 21702-5000;
     NSRDEC: Ms. Joelle Montecalvo, Demonstration Project 
Manager, NSRDEC, Kansas Street, (AMSRD-NSR-BO-W), Natick, MA 01760;
     TARDEC: Ms. Jennifer Davis, TARDEC, ATTN: RDTA-CS/MS 204, 
Warren, MI 48397-5000; and
     ARDEC: Mr. Mike Nicotra, U.S. Army ARDEC, Human Capital 
Management Office, Building 1, 3rd Floor, RDAR-EIH, Picatinny Arsenal, 
NJ 07806-5000. ARI: (Pending draft FRN).

Department of the Air Force

     AFRL: Ms. Rosalyn Jones-Byrd, Personnel Demonstration 
Project Manager, AFRL, 1864 4th Street, Wright-Patterson Air Force 
Base, OH 45433-5209.

Department of the Navy

     ONR: Ms. Margaret J. Mitchell, Director, Civilian Human 
Resources, ONR, 875 North Randolph Street, Code BD, Arlington, VA 
22203;
     NRL: Ms. Ginger Kisamore, Human Resources Officer, NRL, 
4555 Overlook Avenue SW., Washington, DC 20375-5320;
     NAVSEA Warfare Centers: Ms. Diane Brown, NAVSEA Warfare 
Centers

[[Page 43340]]

Personnel Demonstration Project Manager, Naval Surface Warfare Center, 
Philadelphia Division, 5001 South Broad Street, Philadelphia, PA 19112-
5083;
     NAVAIR, Weapons Division and Aircraft Division: Mr. 
Richard Cracraft, Naval Air Warfare Center, Weapons Division (NAWCWD), 
Code 730000D, 1 Administration Circle, Building 00464, China Lake, CA 
93555-6100; and
     Space and Naval Warfare Systems Command, Space and Naval 
Warfare Systems Center (SSC):
    [cir] SSC Atlantic: Ms. Veronica Truesdale, SSC Atlantic STRL 
Project Lead, SSC Atlantic, P.O. Box 190022, North Charleston, SC 
29419-9022; and
    [cir] SSC Pacific: Ms. Angela Hanson, SSC Pacific STRL Project 
Lead, SSC Pacific, 53560 Hull Street, San Diego, CA 92152-5001.

DoD

    Dr. Jagadeesh Pamulapati, Director, DoD Laboratories Office, 4800 
Mark Center Drive, Alexandria, VA 22350, (571) 372-6372, 
[email protected].

SUPPLEMENTARY INFORMATION:

1. Background

    Section 342(b) of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 1995, Public Law (Pub. L.) 103-337, as amended by 
section 1109 of the NDAA for FY 2000, Public Law 106-65, section 1114 
of the NDAA for FY 2001, Public Law 106-398, and section 211 of the 
NDAA for FY 2017, Public Law 114.328, authorizes the Secretary of 
Defense (SECDEF), through the Assistant Secretary of Defense for 
Research and Engineering (ASD (R&E)), to conduct personnel 
demonstration projects at DoD laboratories designated as science and 
technology reinvention laboratories (STRLs). All STRLs authorized by 
section 1105 of the NDAA for FY 2010, Public Law 111-84, as well as any 
newly designated STRLs authorized by SECDEF or future legislation may 
use the provisions described in this Federal Register Notice (FRN). 
STRLs implementing this flexibility must have an approved personnel 
management demonstration project plan published in a FRN and shall 
fulfill any collective bargaining obligations. Each STRL shall 
establish internal operating procedures as appropriate. The 15 current 
STRLs are:

 Army Research Institute (ARI)
 Army Research Laboratory (ARL)
 Aviation and Missile Research, Development, and Engineering 
Center (AMRDEC)
 Communications-Electronics Research, Development, and 
Engineering Center (CERDEC)
 Edgewood Chemical Biological Center (ECBC)
 Engineer Research and Development Center (ERDC)
 Medical Research and Materiel Command (MRMC)
 Natick Soldier Research, Development and Engineering Center 
(NSRDEC)
 Tank Automotive Research, Development and Engineering Center 
(TARDEC)
 Armament Research, Development and Engineering Center (ARDEC)
 Space and Missile Defense Command (SMDC) Technical Center
 Air Force Research Laboratory (AFRL)
 Office of Naval Research (ONR)
 Naval Research Laboratory (NRL)
 Naval Sea Systems Command (NAVSEA) Warfare Centers
 Naval Air Systems Command (NAVAIR) Warfare Centers, Weapons 
Division and Aircraft Division
 Space and Naval Warfare Systems Command, Space and Naval 
Warfare Systems Center (SSC), Atlantic and Pacific

2. Overview

I. Introduction

A. Purpose

    Section 1109 of the NDAA for FY 2016 establishes a workforce 
shaping pilot program for the STRLs. The purpose of the pilot program 
authority is to provide a suite of dynamic workforce shaping tools that 
allow the STRL lab directors to shape the mix of technical skills and 
expertise in the workforce to achieve one or more of the following 
strategic goals:
    (1) To meet organizational and Department-designated missions in 
the most cost-effective and efficient manner.
    (2) To upgrade and enhance the scientific quality of the workforces 
of such laboratories.
    (3) To shape such workforces to better respond to such missions.
    (4) To reduce the average unit cost of such workforces.

B. Required Waivers to Law and Regulation

    Section 1109 of the NDAA for FY 2016 waived Sections 8336(d)(2)(D), 
8414(b)(1)(B), clause (iv) and (v), 3522, 3523(b)(1) and (3) of title 
5, United States Code (U.S.C.). Appendix A lists the laws, rules, and 
regulations that require waivers to implement this workforce shaping 
pilot program.

C. Expected Benefits

    The workforce shaping pilot program is expected to streamline and 
enhance the STRLs' ability to manage, plan, and structure their 
workforces, in accordance with the goals of the pilot program. Pilot 
program flexibilities will allow lab directors to enhance and align the 
technical capabilities of the laboratories with organizational and 
Departmental missions, and to best respond to missions in a cost-
efficient manner.

D. Participating Organizations and Employees

    All DoD laboratories designated as STRLs under section 1105(a) of 
the NDAA for FY 2010 and section 1103 of the NDAA for FY 2015 
(including any newly designated STRLs authorized by SECDEF or by future 
legislation) with approved personnel management demonstration project 
plans published in FRNs may use the provisions described in this FRN.

II. Personnel System Changes

    All current and future STRL demonstration project plans are hereby 
amended to add the following:

A. Flexible Length and Renewable Term Technical Appointments

1. Authorized Positions
    a. STRLs may use the Flexible Length and Renewable Term Technical 
Appointments workforce shaping tool authorized by section 1109(b)(1) of 
the NDAA for FY 2016 to appoint qualified candidates who are not 
currently Department of Defense civilian employees into any scientific, 
technical, engineering, and mathematic positions, including 
technicians, for a period of more than one year but not more than six 
years. The appointment of any individual under this authority may be 
extended without limit in up to six year increments at any time during 
any term of service under conditions set forth by the STRL Director.
    b. Civilian Personnel Management. As prescribed by Section 
1109(b)(1)(D) of the NDAA for FY 2016, for the purposes of determining 
the workforce size of a laboratory for compliance with section 955 of 
the NDAA for FY 2013, any individual serving in an appointment under 
this paragraph will be considered a fractional employee of the 
laboratory, which the fraction is:
     The current term of the appointment of the individual 
under this paragraph; divided by:
     The average length of tenure of a career employee at the 
laboratory, as calculated at the end of the last fiscal year before the 
date of the most recent appointment or extension of the individual 
under this paragraph.

[[Page 43341]]

2. Definitions
    a. Qualified candidates are defined as individuals who meet the 
minimum qualification standards for the position as published in the 
OPM Qualification Standard or the STRLs' demonstration project 
qualification standards specific to the position to be filled.
    b. Scientific, engineering, technical, mathematic, and technician 
(STEM) positions are those positions described in the STRL FRN 
(Appendix B) or Internal Operating Procedures in the Scientist and 
Engineer and/or Technician/Technical Career Paths, or positions not 
classified under the broad-banding structure as defined in the 
applicable FRN utilized by the STRLs, that directly support science and 
engineering activities. Non-broad-banded positions will be identified 
in individual STRL internal operating procedures.
    c. Term appointments, for the purposes of this authority, are non-
status appointments to a position in the competitive service for a 
specific period of more than one year; however, incumbents may compete 
as ``status candidates'' for the purpose of eligibility for positions 
in the Federal service.
3. Provisions
    a. Use of the Flexible Length and Renewable Term Technical 
Appointment authority must be consistent with merit system principles.
    b. Current DoD employees may not be appointed to positions under 
this authority.
    c. Initial appointments must be more than one year, but not to 
exceed six years in duration.
    d. Individuals appointed under this authority may be eligible for 
noncompetitive conversion to a permanent appointment if the job 
opportunity announcement clearly stated the possibility of being made 
permanent in addition to any other provision in the STRL's existing 
modified term appointment authority.
    e. Unless otherwise eligible for a noncompetitive hiring authority, 
positions filled under this authority must be competed. Job opportunity 
announcements must clearly identify the type of appointment and the 
expected duration of initial appointment (up to six years). It is 
advisable to include a statement that the position may be extended, 
without limit, in up to six year increments, to enable extensions 
beyond the initial term of appointment.
    f. Appointees will be afforded equal eligibility for employee 
programs and benefits comparable to those provided to similar employees 
on Term appointments at each STRL, to include opportunities for 
professional development and eligibility for award programs.
    g. In accordance with Section 1109(b)(1)(B) of the NDAA for FY 2016 
and part 1.3, Subpart A, of title 5 CFR, appointees will be afforded 
the opportunity to apply for vacancies that are otherwise limited to 
``status'' candidates. Appointees applying to other Federal service 
positions utilizing this authority must submit a copy of their Flexible 
Length and Renewable Term Technical appointment SF-50, Notification of 
Personnel Action, which will contain a remark identifying this 
provision, with their application/resume for the vacancy to which they 
are applying. The SF-50 will serve as notification to the servicing 
Human Resources Office for the vacancy that the individual is eligible 
for consideration as a status candidate.
    h. Promotions. Individuals appointed under this hiring authority 
may be promoted while serving on a term appointment provided they meet 
the qualifications and eligibility requirements for the higher level to 
which they will be promoted.
    i. Extension of appointments. The appointment of an individual 
appointed to a term appointment under this authority may be extended, 
without limit, in up to six year increments. Job opportunity 
announcements must have identified the opportunity for extension beyond 
the initial term of appointment. Extensions will be documented via a 
personnel action using nature of action code 765/Extension of Term Appt 
NTE and the same legal authority code used for the appointment that is 
being extended.
    j. Expiration. Term appointments expire upon the not-to-exceed 
date, unless extended.
    k. Reduction in Force (RIF). Appointees under 2.II.A. are covered 
by the RIF rules outlined in each STRL's FRN. Tenure for term 
appointments will be in accordance with the STRL's FRN. If STRL RIF 
procedures do not comport with 10 U.S.C. 1597(f), RIF will be conducted 
in accordance with DEPSECDEF Memo, Policies and Procedures for 
Reductions in Force in the Civilian Workforce, dated January 19, 2017, 
until the STRL develops USD (P&R) approved policies and procedures that 
comport with 10 U.S.C. 1597(f).
    l. Documenting Personnel Actions. Personnel actions for the 
appointments under 2.II.A. are documented citing the first legal 
authority code (LAC)/legal authority as Z2U/Public Law 103-337, if 
appointed to a broad-banded position. Public Law 114.92 (with 
appropriate LAC, once assigned) will also be cited on all personnel 
actions. The personnel action will also contain the following remark: 
This appointment is designated as a ``status'' appointment for the 
purposes of eligibility for applying for positions in the federal 
service in accordance with section 1109(b)(1)(B) of the NDAA for FY 
2016.

B. Reemployment of Annuitants

1. Authorities
    STRLs will use the authorities provided by 9902(g) of title 5, 
U.S.C. to appoint reemployed annuitants, as appropriate and in keeping 
with the goals of the workforce shaping pilot program stated in 2.I.A., 
except that section 1109(b)(2) of the NDAA for FY 2016 authorizes the 
director of any STRL to:
    a. Approve the appointment of reemployed annuitants; and
    b. Determine the salary of an annuitant reemployed under this 
authority, to include whether or not the annuitant's salary will be 
reduced by any portion of the annuity received, up to the amount of the 
full annuity, as a condition of reemployment.
2. Definitions
    a. Reemployed annuitant is defined as an individual who is 
receiving an annuity from a federal retirement system based on 
creditable federal civilian service or who meets all requirements for 
entitlement to an annuity based upon creditable federal civilian 
service and has submitted a claim for retirement, and is subsequently 
reappointed as a federal civilian employee.
    b. Period of actual employment is defined as the duration of an 
appointment under this authority, as determined by the initial 
appointment date and continuing until the date the appointment 
terminates or expires, and prorated based on the assigned work 
schedule. An annuitant so reemployed under this authority serves at the 
will of the appointing authority.
3. Provisions
    a. STRL lab directors will apply the authority to appoint 
annuitants in accordance with 9902(g) of title 5, U.S.C. and Department 
of Defense Instruction (DoDI) 1400.25-V300, except as stated in 
2.II.B.1. Use of the authority must be consistent with merit system 
principles.
    b. Documenting Personnel Actions. Personnel actions for the 
appointments under 2.II.B. are documented citing the first legal 
authority code (LAC)/legal

[[Page 43342]]

authority as Z2U/Public Law 103-337 if appointed to a broad-banded 
position. Public Law 114.92 (with appropriate LAC, once assigned) will 
also be cited on all personnel actions.
    c. STRL lab directors, or their delegate, will establish 
implementing guidance and procedures on the use of this reemployed 
annuitant flexibility.
    d. Annuitants retired under Section 8336(d)(1) or Section 
8414(b)(1)(A) of title 5, U.S.C. who are reemployed will retain the 
rights provided in accordance with Section 9902(g)(2)(A) of title 5, 
U.S.C.

C. Voluntary Early Retirement (VERA) and Voluntary Separation Incentive 
Pay (VSIP)

1. Authorities
    a. Section 1109(b)(3) and (4) of the NDAA for FY 2016 pilots the 
use of VERA and VSIP whenever such incentives will help the STRLs to 
achieve one or more of the objectives in Section 1109(a). STRLs will 
use the authorities provided by 9902(f) of title 5, U.S.C. to offer 
VERA and VSIP, as appropriate, except that section 1109 of the NDAA for 
FY 2016 authorizes the director of any STRL to:
    i. Approve the use of voluntary early retirement and separation pay 
incentives;
    ii. Determine which employees should be offered such incentives; 
and
    iii. Determine the amount of voluntary separation incentive 
payments.
    b. STRL will validate and document that VSIP is fully warranted and 
will judiciously ensure that eligibility factors specified in DoDI 
1400.25, Volume 1702, other than those waived in this FRN, are applied.
2. Definitions
    a. Voluntary early retirement (VERA) is defined as a reduction in 
the age and service requirements for retirement as an incentive for 
employees to voluntarily retire and thereby facilitate workforce 
downsizing or restructuring.
    b. Voluntary separation incentive pay (VSIP) is defined as a cash 
incentive for employees to voluntarily resign or to retire, via either 
optional or early retirement or resignation, in order to facilitate 
workforce downsizing or restructuring.
    c. Reduction in force (RIF) is defined as a force shaping or 
reduction mechanism used for releasing STRL employees assigned to 
positions in designated competitive areas in order of their retention 
standing.
3. Provisions
    a. VERA and VSIP may be used upon a written determination by the 
STRL director that such incentives are necessary to shape the 
laboratory workforce to better fulfill mission requirements and achieve 
the optimum workforce balance. If the laboratory workforce is being 
downsized, incentives may be used to minimize the need for involuntary 
separations under reduction in force (RIF) procedures. In this 
downsizing scenario, early retirement and/or separation incentive pay 
may be offered to surplus employees who would otherwise be separated 
through RIF or to non-surplus employees whose positions could then be 
used to avert the involuntary RIF separation of surplus employees.
    b. VERA and VSIP may also be used to restructure the laboratory 
workforce without reducing the number of assigned personnel. In this 
restructuring scenario, incentives may be offered for the purpose of 
creating vacancies that will be reshaped to align with mission 
objectives. Restructuring incentives are helpful in situations such as 
correcting an imbalance of skills or for delayering an organization.
    c. For the purposes of this pilot, STRL Directors will administer 
VERA and VSIP in accordance with DoD Instruction 1400.25, Volume 1702, 
``DoD Civilian Personnel Management System: Voluntary Separation 
Programs'' with the following exceptions to Enclosure 3, ``Guidance and 
Procedures:''
    i. Par. 2.a.(6)(b) is waived to the extent that the STRL director 
may utilize the vacancy to correct a skills mismatch without 
restructuring the position.
    ii. Par. 2.a.(7) is waived to the extent that the STRL director may 
offer VSIP in amounts not to exceed $40,000 without regard to the 
amount of severance pay employees would receive under section 5595(c) 
of title 5 U.S.C. if the employees were entitled to severance pay. 
STRLs will document their rationale for determining payment amounts.
    iii. Par. 2.g.(1) is waived to the extent that STRLs may pay up to 
$40,000 for VSIP from appropriations or accounts available for such 
purposes to avoid an involuntary separation or to effect a 
restructuring action.
    iv. Par. 2.b.(3)(d) is waived to the extent that a waiver is not 
required for employees occupying positions defined as ``hard to fill.''

D. Sunset Date and Conditions of Use

    a. The workforce shaping pilot program authorities established by 
Section 1109 of the NDAA for FY 2016 will expire on December 31, 2023. 
Appointments/renewal of appointments made prior to December 31, 2023 
may continue to expiration even if the expiration date is beyond 
December 31, 2023.
    b. These authorities may be amended by future legislation.
    c. STRL lab directors, or their delegate, will establish 
implementing guidance and procedures on the use of the workforce 
shaping pilot program authorities.

E. Evaluation and Reporting

    STRLs will provide information and data on the use of the workforce 
shaping pilot program authorities including, but not limited to, hires 
made, declinations, veterans hired, separation incentives paid, VERAs 
approved, difficulties encountered, and/or recognized efficiencies, 
when requested by the SECDEF, head of the Military Department, 
DASD(R&E), or DASD(CPP).

  Appendix A--United States Code and Code of Federal Regulations Waived
             Science and Technology Reinvention Laboratories
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                                             Title 5, Code of Federal
      Title 5, United States Code                  Regulations
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                                         5 CFR 316.301 waived to the
                                          extent necessary to allow
                                          provisions of the flexible
                                          length and renewable term
                                          technical appointments
                                          described herein.

[[Page 43343]]

 
5 U.S.C. 3523(b)(3) waived to remove     5 CFR parts 332 and 335 waived
 the prescribed method of incentive       to the extent necessary to
 payment calculation and the $25,000      allow employees appointed on a
 incentive limit; allows the STRL         Flexible Length and Renewable
 director to determine amount of          Term Technical Appointment to
 incentive paid to employees under the    apply for federal positions as
 workforce shaping pilot program          status candidates.
 voluntary early retirement and
 separation incentive payment
 authorities, within the limit
 prescribed herein.
Subchapter 1 of Chapter 33 of title 5
 U.S.C., waived to the extent necessary
 to allow employees appointed on a
 Flexible Length and Renewable Term
 Technical Appointment to apply for
 federal positions as status candidates.
5 U.S.C 9902(f) waived to the extent
 necessary to allow the authorities
 described herein.
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Appendix B--STRLs Federal Register Notice of Approval of a Demonstration
                              Project Plan
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                  STRL                       Federal Register notice
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      Part 1--STRLs Authorized by Director of Defense Research and
  Engineering, Memo 30 Aug 1994 and Section 342 of FY 1995 NDAA, Public
                               Law 103-337
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Air Force Research Laboratory..........  61 FR 60400 amended by 75 FR
                                          53076.
Army Research Laboratory...............  63 FR 10680.
Aviation and Missile Research,           62 FR 34906 and 62 FR 34876
 Development, and Engineering Center.     amended by 65 FR 53142 (AVRDEC
                                          and AMRDEC merged together).
Communications-Electronics Research,     66 FR 54872.
 Development, and Engineering Center.
Engineer Research and Development        63 FR 14580.
 Center.
Medical Research and Material Command..  63 FR 10440.
Naval Research Laboratory..............  64 FR 33970.
Naval Sea Systems Command Warfare        62 FR 64050.
 Centers.
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Part 2--STRLs Authorized by Section 1105 of FY 2010 NDAA, Public Law 111-
                                   84
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Armament Research, Development and       76 FR 3744.
 Engineering Center.
Edgewood Chemical Biological Center....  74 FR 68936.
Natick Soldier Research, Development     74 FR 68448.
 and Engineering Center.
Naval Air Systems Command Warfare        76 FR 8530.
 Centers, Weapons and Aircraft
 Divisions.
Office of Naval Research...............  75 FR 77380.
Space and Naval Warfare Systems          76 FR 1924.
 Command, Space and Naval Warfare
 Systems Center, Atlantic and Pacific.
Tank Automotive Research, Development    76 FR 12508.
 and Engineering Center.
------------------------------------------------------------------------


    Dated: September 11, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2017-19576 Filed 9-14-17; 8:45 am]
 BILLING CODE 5001-06-P