[Federal Register Volume 86, Number 47 (Friday, March 12, 2021)]
[Notices]
[Pages 14084-14108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05172]
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DEPARTMENT OF DEFENSE
Office of the Secretary
Department of Defense Science and Technology Reinvention
Laboratory Personnel Demonstration Project in the Naval Facilities
Engineering Command, Engineering and Expeditionary Warfare Center
(NAVFAC EXWC)
AGENCY: Under Secretary of Defense for Research and Engineering
(USD(R&E)), Department of Defense (DoD).
ACTION: Personnel demonstration project notice.
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SUMMARY: This Federal Register Notice (FRN) serves as notice of the
adoption of an existing STRL Personnel Management Demonstration Project
by the Naval Facilities Engineering Command, Engineering and
Expeditionary Warfare Center (NAVFAC EXWC). NAVFAC EXWC adopts, with
some modifications, the STRL Personnel Demonstration Project
implemented at the: Naval Air Systems Command (NAVAIR) Naval Warfare
Center, Aircraft Division, Naval Air Warfare Center, Weapons Division;
Naval Information Warfare Centers Atlantic and Pacific (NIWC Atlantic
and Pacific) (previously designated as the Space and Naval Warfare
Systems Command, Space and Naval Warfare Systems Centers Atlantic and
Pacific), Naval Sea Systems Command Warfare Centers (NAVSEA), and the
Combat Capabilities Development Command (CCDC) Army Research Laboratory
(ARL) (previously designated as ARL).
DATES: Implementation of this demonstration project will begin no
earlier than March 12, 2021.
FOR FURTHER INFORMATION CONTACT:
NAVFAC EXWC: Ms. Carol Frash, 1000 23rd Avenue, Port Hueneme, CA
93043 (805) 982-2422, or [email protected].
DoD: Dr. Jagadeesh Pamulapati, Director, Laboratories and Personnel
Office, 4800 Mark Center Drive, Alexandria, VA 22350, (571) 372-6372,
[email protected].
SUPPLEMENTARY INFORMATION: Section 342(b) of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 1995, Public Law (Pub.
L.) 103-337; as amended, authorizes the Secretary of Defense (SECDEF),
through the USD(R&E), to conduct personnel demonstration projects at
DoD laboratories designated as STRLs. All STRLs authorized by section
1105(a) of the NDAA for FY 2010, Public Law 111-84, as well as any
newly designated STRLs authorized by SECDEF, or future
[[Page 14085]]
legislation, may use the provisions described in this FRN.
1. Background
Many studies have been conducted since 1966 on the quality of the
laboratories and personnel. Most of the studies recommended
improvements in civilian personnel policy, organization, and
management. Pursuant to the authority provided in section 342(b) of
Public Law 103-337, as amended, a number of DoD STRL personnel
demonstration projects were approved. The demonstration projects are
``generally similar in nature'' to the Department of Navy's China Lake
Personnel Demonstration Project. The terminology, ``generally similar
in nature,'' does not imply an emulation of various features, but
rather implies a similar opportunity and authority to develop personnel
flexibilities that significantly increase the decision authority of
laboratory commanders and/or directors.
2. Overview
DoD published notice on November 22, 2019 in 84 FR 64495 that
NAVFAC EXWC will implement an STRL Personnel Demonstration Project.
NAVFAC EXWC will adopt, with some modifications, flexibilities from the
following approved STRL personnel demonstration projects:
(1) Department of the Navy, NAVAIR--76 FR 8530, February 14, 2011;
(2) Department of the Navy, NIWC Atlantic and Pacific--76 FR 1924,
January 11, 2011;
(3) Department of the Navy, NAVSEA--62 FR 64050, December 3, 1997;
and
(4) Department of the Army, CCDC ARL--63 FR 10679, March 4, 1998.
3. Access to Flexibilities of Other STRLs
Flexibilities published in this FRN will be available for use by
the STRLs enumerated in section 1105(a) of the NDAA for FY 2010, Public
Law 111-84 as amended, if they wish to adopt them in accordance with
DoD Instruction 1400.37, ``Science and Technology Reinvention
Laboratory (STRL) Personnel Demonstration Projects'' (available at
https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/140037p.pdf) (including revised or superseded instructions) and after
the fulfillment of any collective bargaining obligations.
4. Summary of Comments
Eight commenters provided comments electronically via the Federal
eRulemaking Portal regarding the Science and Technology Reinvention
Laboratory (STRL) Personnel Demonstration Project in the Naval
Facilities Engineering Command, Engineering and Expeditionary Warfare
Center (NAVFAC EXWC), 84 FR 64495, dated November 22, 2019.
(A) Editorial and General Comments
Comment: A commenter noted inconsistencies throughout the document
in the use of the term Technical Director (i.e., Technical Director,
Laboratory Director, NAVFAC EXWC Director, Director, and NAVFAC EXWC
Technical Director).
Response: Concur with commenter. The terms ``Laboratory Director''
and ``NAVFAC EXWC Director'' have been changed to ``NAVFAC EXWC
Technical Director'' or ``Technical Director''.
Comment: A commenter noted inconsistencies throughout the document
referring to NAVFAC EXWC as the ``Center'' and the ``Technical
Center''.
Response: Concur with commenter. The terms ``Center'' and
``Technical Center'' have been changed to NAVFAC EXWC.
Comment: A commenter noted inconsistencies throughout the document
referring to ``salary points'' and ``control points''.
Response: Concur with commenter. The term ``salary points'' has
been changed to ``control points.''
(B) Introduction
1. Purpose
Comment: One commenter requested clarification as to who can be the
NAVFAC EXWC Technical Director's designee and must they be within EXWC.
Response: To clarify the sentence under Purpose (section II.A) the
following sentence has been added: ``Unless specifically stated
otherwise, the NAVFAC EXWC Technical Director may delegate authority
within NAVFAC EXWC to effectively implement the provisions of this
notice.''
Comment: Three commenters requested clarification on the
authorities granted to the NAVFAC EXWC Technical Director and one
commenter recommended rewording the entire section of II.A paragraph
two to clarify.
Response: Concur with commenters and have amended section II.A to
adopt the following revision: ``The NAVFAC EXWC Technical Director
(hereinafter referred to as the ``Technical Director'') has overall
oversight and management of these authorities and any other authorities
granted to an STRL, which includes but is not limited to, managing the
workforce strength, structure, positions, and compensation (including
pay pools) without regard to any limitation on appointment, positions,
or funding with respect to STRL, and will be carried out in a manner
consistent within the STRL budget. Also, NAVFAC EXWC's Technical
Director has those authorities equivalent to a Technical Director
Senior Executive Service (SES) position within a STRL. Unless
specifically stated otherwise, the Technical Director of NAVFAC EXWC
may delegate authority within NAVFAC EXWC to effectively implement the
provisions of this notice.'' NAVFAC EXWC Internal Operating Procedures
(IOPs) will document any delegation, including details of
implementation.'' In addition, section III.C.8 has been revised to
state that ``The Technical Director is specifically authorized to use
recruitment, retention, and relocation incentives which are further
described in NAVFAC EXWC IOPs. The authority in 5 CFR part 575, is
further expanded to allow NAVFAC EXWC to offer retention counteroffers
to high performing employees with critical scientific or technical
skills who present evidence of an alternate employment opportunity with
higher compensation. Such employees may be provided increased base pay
(up to ceiling of the pay band) and/or a one-time cash payment that
does not exceed 50 percent of one year of base pay. Retention
counteroffers, either in the form of a base pay increase and/or a
bonus, count toward the aggregate limitation on pay consistent with 5
U.S.C. 5307 and 5 CFR part 530, subpart B, except as waived in section
IX of this plan.''
(C) Personnel System Changes
1. Qualifications
Comment: Three comments were received asking if there are any
further qualification standards and/or applicable waivers other than
those stated in the FRN?
Response: The verbiage for Qualifications under section III.A.1
`Personnel System Changes' identifies the minimum qualification
standards. No additional applicable waivers are necessary.
2. Science and Engineering Direct Hiring Authorities
Comment: One commenter requested clarification in regard to the use
of STRL Direct Hiring Authorities for current federal employees and
employees already employed at NAVFAC EXWC.
Response: NAVFAC EXWC may utilize all available direct hiring
[[Page 14086]]
authorities to consider and appoint qualified candidates, which may
include current federal employees. Section III.A.2.a has been revised
as follows: ``NAVFAC EXWC may utilize all available direct hiring
authorities to consider and appoint qualified candidates, which may
include current federal employees. This applies to all STRL direct hire
authorities, including but not limited to, those listed under Section
III. 2.a (including sections 1106 and 1121 of the NDAA FY2017) and any
other applicable direct hire authorities enacted under the Office of
Personnel Management (OPM), DoD, or Department of Navy (DoN) or amended
after the effective date of this demonstration project, except as
waived in Section IX of this plan.''
3. Delegation of Classification Authority
Comment: Two commenters requested clarification on delegated
classification authority and recommended rewording the entire section
of III.B.1 to clarify.
Response: Concur with commenters and have amended section III.B.1
as follows: ``The Technical Director has overall oversight, management,
and delegated classification and position management authority for all
STRL positions covered under the NAVFAC EXWC Personnel Demonstration
Project. Classification authority will be delegated as follows: The
NAVFAC EXWC Technical Director may delegate classification authority to
the NAVFAC EXWC Human Resources Office (HRO) Director. The NAVFAC EXWC
HRO Director may further delegate classification authority to the
NAVFAC EXWC Human Resource professionals. If so delegated, the NAVFAC
EXWC HRO Director will exercise oversight to ensure consistency
throughout NAVFAC EXWC. Managers will provide input to classification
requests as a means of increasing managerial effectiveness and
expediting the classification function. Administration and management
of Delegated Classification Authority will be outlined in the NAVFAC
EXWC IOPs.''
4. Classification
Comment: One commenter asked if a modified version of the Position
Designation Record (PDR) and a modified version of the Defense
Acquisition Workforce Improvement Act (DAWIA) Coding Sheet could be
utilized to streamline the classification process and allow for
automated classification systems.
Response: We will not be using a modified version of the Position
Designation Record or the Defense Acquisition Workforce Improvement Act
(DAWIA) coding sheet.
5. Pay Band Structure
Comments: Two comments expressed concern that categories 1 and 2
contained in the NT-III and NT-IV pay bands are confusing, especially
as to the proper placement of employees within the pay band, and
recommended using control points to manage positions within these pay
bands that do not support movement to the top of the pay band.
Response: To avoid confusion and difficulty differentiating between
the proper placement of employees within a pay band, categories 1 and 2
have been eliminated from the NT-III and NT-IV pay bands. The NT-II pay
band has been expanded to encompass the GS-05 to GS-11 grade equivalent
and the NT-III pay band has been modified to include the GS-12 to GS-13
grade equivalent. The following language was inserted to explain the
new configuration: ``A key feature is the overlap in Science and
Engineering (ND) career path between bands III and IV. ND-III begins at
GS-12, step 1, and ends at GS-14, step 10. ND-IV begins at GS-14, step
1, and ends at GS-15, step 10. Control points will be applied as
outlined in the NAVFAC EXWC IOPs.'' Additionally, Figure 1, ``Career
Paths and Pay Band Structure'' was updated.
6. Senior Scientific Technical Managers (SSTM)
Comment: One commenter questioned whether SSTM positions would be
evaluated by a performance management system versus a contribution
management system as stated in the FRN.
Response: Section III.B.7 has been revised to read: ``All SSTM
positions within NAVFAC EXWC will report to and be evaluated by the
NAVFAC EXWC Technical Director (non-delegable). SSTMs will be evaluated
by the STRL Performance Management System as outlined in NAVFAC EXWC's
IOPs.''
7. Professional Licensure Designations for Architectural and
Engineering Positions
Comment: One commenter expressed concern regarding the professional
engineering license policy and requested that the process further
explained.
Response: The description of the professional engineering license
policy was reviewed and determined to be appropriate.
8. Pay Setting for Appointment
Comment: One commenter expressed concern about the absence of
specified pay setting provisions and recommended waiving pay rounding
rules in accordance with 5 CFR part 531 subpart F.
Response: Pay setting is appropriately addressed in the FRN.
Additional procedures will be provided in supporting IOPs. As stated in
section III.C.1, initial pay setting is based on base pay, not total
adjusted salary. To allow for more streamlined pay setting
calculations, we have added a waiver of the rounding rules found in 5
CFR 531.604(b)(4).
Comment: One commenter asked if 5 CFR part 531 subpart F was waived
in its entirety.
Response: No. A waiver of 5 CFR part 531, subpart F is made to
allow for the provisions of the demonstration project as described in
this FRN. This waiver has been updated to also waive the section of 5
CFR part 531 subpart F [5 CFR 531.604(b)(4)] that pertains to the
rounding rules.
9. Promotion
Comment: One commenter raised a concern that 6% or the minimum base
pay of the new pay band was insufficient for promotions.
Response: Upon review, we removed the 6% or the minimum base pay of
the new pay band and replaced it with language stating that ``a
promotion may be accompanied by a pay increase.'' Specific guidelines
regarding promotions will be documented in NAVFAC EXWC IOPs.
Comment: One commenter asked to clarify the definition of ``mission
success'' for the rating of record under the promotion section.
Response: To clarify this section, ``mission success'' was removed
and the sentence was revised as follows: ``To be promoted competitively
or non-competitively, from one pay band to the next, an employee must
meet the minimum qualifications for the job and have a current rating
of record of 2 or above (acceptable performance rating) or an
equivalent under a different appraisal system. Other specific
guidelines regarding promotions will be documented in NAVFAC EXWC IOPs.
An additional clarification was also added under III.E.4, which now
states: ``Employees with an acceptable rating of record, two or above,
for each mission aligned objective will receive the equivalent of the
authorized GS general pay increase (GPI).''
[[Page 14087]]
10. Staffing Supplements
Comment: One commenter suggested that a special salary rate under
the Staffing Supplements section was inconsistent with the provisions
outlined under the Conversion section and questioned whether NAVFAC
EXWC would be using special salary rates, staffing supplements, or
both. Additionally, the commenter asked whether additional waivers of
Chapter 53, section 5305 and 5 CFR part 530, subpart C were needed.
Response: Upon review, we found no inconsistencies concerning
special salary rates and staffing supplements. Under the demonstration
project, special salary rates do not apply. Upon conversion into the
demonstration project, employees who are receiving a special salary
rate will be provided a staffing supplement. Retained pay provisions
apply. Upon further review, the FRN was updated to waive 5 U.S.C. 5305
in its entirety because special pay provisions no longer apply. 5 CFR
part 530, subpart C was already waived in its entirety.
11. Pay Differential for Supervisory Positions
Comment: One commenter expressed concern that supervisory pay
differentials could not be applied to official limited and team lead
positions.
Response: The commenter's concern was considered and NAVFAC EXWC
expanded eligibility for supervisory pay differentials by adding at
III.C.10: ``NAVFAC EXWC will establish a pay differential to be
provided at the discretion of the Technical Director (or designee) to
incentivize and reward personnel in a Supervisory, Supervisor Civil
Service Reform Act (CSRA) position, [(position that meets the
definition of Supervisor in 5 U.S.C. section 7301(a)(10)], but does not
constitute a major duty occupying at least 25% of the position's time)
and Team Leader positions (position is titled with the prefix ``Lead''
and meets the minimum requirements for application of the General
Schedule Team Leader Grade-Evaluation Guide).''
12. Expanded Development Opportunities Program
Comment: One commenter suggested that the Technical Director have
the ability to delegate final selection/approval for participation in
the Expanded Development Opportunities Program.
Response: The Technical Director can delegate this responsibility
based on the provision as noted in II.A.2.
13. Performance Management
Comments: Two commentors expressed concern regarding the need for a
90-day minimum rating period and requested clarification concerning the
following: Why is 90-days the minimum rating period? Why is there a
presumptive rating for employees who do not meet the 90-day minimum
requirement? What is a presumptive rating and why is it needed? What is
a normal rating?
Response: NAVFAC EXWC has previously used and is currently using a
90-day minimum rating period, which has been determined to be an
appropriate period of time to evaluate an employee's performance. A
normal rating is a rating of record based on an employee's actual
performance over at least a 90 calendar day period, within the current
annual appraisal period. After further review, and in recognition of
the demonstration project's foundation for providing performance
ratings based on an evaluation of an employee's accomplishments and
performance, presumptive ratings will not be provided to employees who
do not meet the 90 day minimum requirement. However, specially situated
employees (as described below), who do not meet the 90-day minimum
requirement, may receive the same performance rating as the employee's
last performance rating of record or a modal performance rating,
whichever is most advantageous to the employee, as documented in NAVFAC
EXWC's IOPs. However, when the most recent rating of record is
unacceptable, only that rating of record will be considered for
purposes of a performance rating. Section III.E.1 has been updated to
state the following: ``The minimum rating period is 90-days. Employees
who do not meet the 90-day minimum requirement will not be eligible for
a STRL performance rating of record. However, specially situated
employees, who do not meet the 90-day minimum requirement, may receive
the same performance rating as the employee's last performance rating
of record or a modal performance rating, whichever is most advantageous
to the employee, as documented in NAVFAC EXWC's IOPs. However, when the
most recent rating of record is unacceptable, only that rating of
record will be considered for purposes of a performance rating. A modal
performance rating is the most frequently received rating of record
assigned to employees within a particular pay pool for a particular
rating cycle. Specially situated employees include those employees who
are absent from a STRL position for military service, employees on a
prolonged absence resulting from a work-related injury approved for
workers compensation pursuant to an Office of Worker's Compensation
Program, and those employees in a STRL position, who have less than 90
calendar days under a STRL performance plan due to being temporarily
assigned to a non-STRL position. Those employees who do not meet the
90-day minimum requirement, except for specifically situated employees,
may receive only the general pay increase and they may also receive
Title 5 cash awards, if appropriate.''
Comment: One commenter expressed concern about the ability to
assign 10 individual mission objectives and recommended modifying it to
5-7 objectives.
Response: Upon review, 3-10 mission objectives, as stated, provides
maximum flexibility for supervisors.
14. Rating Benchmarks
Comment: One commenter requested that Appendix B remove example
benchmarks and include actual NAVFAC EXWC established benchmarks.
Response: The comment has been considered; however, an actual
NAVFAC EXWC benchmark has not been included to allow for the ability to
revise benchmarks in the future; Appendix B has been updated to include
an example of a notional NAVFAC EXWC benchmark.
15. Performance Feedback and Formal Ratings
Comment: One commenter requested clarification as to who appoints
pay pool managers and pay pool panel members.
Response: The comment has been considered and to provide
clarification, Section III.E.5 has been revised as follows: ``The
Technical Director (or designee) of NAVFAC EXWC will establish pay
pools, and appoint pay pool panels and Pay Pool Managers.''
16. Transition Equity
Comment: One commenter expressed concern about the transition
allowance of 12 months to adjust pay upon conversion, which would
negatively impact employees on career ladder positions.
Response: The concern about the transition equity of current
employees under career ladder positions has been resolved by adding
section IV.A.3: ``An employee on a career ladder position at the time
of conversion may maintain the same salary trajectory and full
[[Page 14088]]
performance level as covered under the general schedule pay system.
Additionally, they may be considered for accelerated compensation
identified under the Accelerated Compensation for Developmental
Positions (ACDP) of this FRN. Once an employee reaches the full
performance pay band, control points will apply as outlined in NAVFAC
EXWC IOPs.'' Clarifying language was added in section III.D.3: ``The
Technical Director may authorize an increase to basic pay for employees
participating in training programs, internships, or other development
capacities. This may include positions that cross bands within a career
path (formally known as career ladder positions), or developmental
positions within a band. ACDP will be used to recognize development of
job related competencies as evidenced by successful performance within
NAVFAC EXWC. Additional guidance will be published in an IOP''.
17. Initial Probationary Period
Comment: One commenter recommended removing ``DoD'' from
``Employees who are still serving an initial probationary period upon
conversion to the demonstration plan will receive credit for
probationary service to date; however, they must serve any remaining
probationary time to complete the full two-year DoD probationary
period'' in order to maintain the two-year probationary period
independent of DoD policy.
Response: Concur with Commenter. Section IV.A.6 has been revised to
the following: ``Employees who have completed an initial probationary
period prior to conversion to the NAVFAC EXWC personnel demonstration
project plan will not be required to serve another probationary period.
NAVFAC EXWC will have a two-year probationary period. Employees who are
still serving an initial probationary period upon conversion from GS to
the demonstration project will receive credit for probationary service
to date; however, they must serve any remaining probationary time to
complete a full two-year probationary period.''
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems with the Present System
C. Expected Benefits
D. Participating Organizations, Employees and Union
Representation
E. Project Design
F. Executive STRL Policy Board
G. Funding Level
III. Personnel System Changes
A. Hiring, Appointment, and Related Authorities
B. Classification, Career Paths and Pay Banding
C. Pay and Compensation
D. Employee Development and Awards
E. Performance Management
F. Workforce Shaping
IV. Conversion
A. Initial Conversion or Movement Into the Demonstration Project
B. Movement Out of the Demonstration Project
C. Implementation Training
V. Project Duration
VI. Evaluation Plan
A. Overview
B. Data Collection To Support Evaluation
VII. Demonstration Project Costs
VIII. Management and Oversight
A. Project Management With Automation
B. Oversight
IX. Required Waivers to Laws and Regulations
A. Waivers to Title 5, United States Code
B. Waivers to Title 5, Code of Federal Regulations
Appendix A: Career Paths and Occupational Series
Appendix B: Rating Benchmark Examples
I. Executive Summary
NAVFAC EXWC is a Warfare Center and distinguished DoD Laboratory
established in 2012. NAVFAC EXWC's dedicated workforce provides
specialized facilities engineering, technology solutions, and life-
cycle management of expeditionary equipment to the Navy, Marine Corps,
Federal agencies, and other DoD customers. A majority of NAVFAC EXWC's
civilian employees were hired in the General Schedule (GS)
classification and pay system. The GS classification and pay system
does not offer the same flexibilities and tools to attract, retain,
motivate and fully compensate staff as the NAVFAC EXWC personnel
demonstration project.
Through this project, NAVFAC EXWC competes with the private sector
for the best talent by making timely job offers with attractive
compensation packages that land high-quality employees. Once these
employees are hired, NAVFAC EXWC incentivizes performance and rewards
innovation and motivation through compensation directly linked to
individual performance. Linking compensation to performance increases
job satisfaction and retention of high performing employees and
encourages continued performance because reduced performance will draw
less reward.
NAVFAC EXWC's personnel demonstration project takes advantage of
flexibilities to simplify and speed classification and staffing actions
for employees, such as direct hire authorities, expanded details,
temporary promotions, and modified/flexible term appointments.
II. Introduction
A. Purpose
The purpose of the project is to demonstrate that the effectiveness
of DoD laboratories can be enhanced by greater managerial control over
personnel functions and to expand the opportunities available to
employees through a more responsive and flexible personnel system.
The NAVFAC EXWC personnel demonstration project will incorporate
legal authorities and adopt practices from other STRLs to meet the
specific needs of this Command. These tools will enable NAVFAC EXWC to
dynamically shape the mix of technical skills and expertise in the
laboratory workforce. As the Navy's leader in specialized facilities
engineering, technology solutions, and life-cycle management of
expeditionary equipment, NAVFAC EXWC must have the flexibility needed
to quickly respond to changes in mission, organizational constraints,
workload, and market conditions.
The NAVFAC EXWC Technical Director (hereinafter referred to as the
(``Technical Director'') has overall oversight and management of these
authorities and any other authorities granted to a STRL, which includes
but is not limited to, managing the workforce strength, structure,
positions, and compensation (including pay pools) without regard to any
limitation on appointment, positions, or funding with respect to STRL,
and will be carried out in a manner consistent within the STRL budget.
Also, NAVFAC EXWC's Technical Director has those authorities equivalent
to a Technical Director SES position within a STRL. Unless specifically
stated otherwise, the NAVFAC EXWC Technical Director may delegate
authority within NAVFAC EXWC to effectively implement the provisions of
this notice. NAVFAC EXWC IOPs will document any delegation, including
details of implementation.
Many aspects of a demonstration project are experimental.
Modifications may be made from time to time as experience is gained,
results analyzed r, and conclusions reached on how the system is
working. The provisions of Department of Defense Instruction (``DoDI'')
1400.37, ``Science and Technology Reinvention Laboratory (STRL)
Personnel Demonstration Projects'' (including subsequently issued or
superseding instructions) will be followed to modify, supplement
[[Page 14089]]
through adoption, or otherwise change this demonstration project plan.
B. Problems With the Present System
The current Federal personnel system is incompatible with NAVFAC
EXWC's need for a highly specialized, quality workforce to support the
DoD and the Department of the Navy's overall strategic objectives. The
characteristics of the current GS system have remained unchanged since
its inception many years ago. Under the current GS system, work is
classified into 15 grades with 10 interim steps within each grade. The
GS system is rigidly defined by occupational series and grades with
precise qualifications for each position. The GS system does not enable
management to respond quickly to new ways of designing work or changes
in the work itself. It does not offer flexibilities to accurately
capture employee performance or to quickly adjust management
expectations for critical scientific, engineering, acquisition support
and other professional positions, including skilled technicians. The
current GS hiring system's inability to provide job offers in a timely
manner also hampers the NAVFAC EXWC's ability to attract high quality
candidates.
C. Expected Benefits
To remain the Department of the Navy's leader in supporting
combatant capabilities and sustainable facilities, NAVFAC EXWC must
compete with the private sector for the most talented, technically
proficient candidates. NAVFAC EXWC must have a human resource system
that fosters employee development, enhances performance and experience,
and provides a strong retention incentive. This personnel demonstration
project is expected to enable and enhance:
(1) Recruitment of highly qualified scientific, technical,
business, and support employees in today's competitive environment;
(2) Selection of candidates and extension of job offers in a timely
and efficient manner, with compensation sufficient to attract high
quality, in-demand employees;
(3) Employee satisfaction with pay setting and adjustment,
recognition, and career advancement opportunities;
(4) A quality workforce that rapidly adjusts to evolving
requirements for the future;
(5) Retention of high-level performers; and
(6) Simple and cost-effective HR management processes.
To effectively meet the above expectations, this notice identifies
and establishes those features and flexibilities this demonstration
project will use to achieve these objectives. The demonstration project
primarily emphasizes streamlined hiring, a more flexible performance-
based compensation system, talent acquisition and retention, and
professional human capital planning and execution. Those features and
flexibilities alone, however, will not ensure success. Delivering that
vision requires a human resources service model that is highly
proactive, expertly skilled in analytical tools, and fully engaged as a
strategic partner and a trusted agent of this modern multi-faceted
defense laboratory.
D. Participating Organizations, Employees and Union Representation
NAVFAC EXWC has major facilities in three geographic locations:
Port Hueneme, California, Gulfport, Mississippi, and Washington, DC.
Additionally, the organization employs personnel at more than ten sites
worldwide. These sites are diverse in employment profiles and size and
have bargaining unit populations. The organization operates throughout
the full spectrum of research, development, test and evaluation,
engineering and fleet support delivered by five business lines and six
support lines. Wage Grade positions will not be included in this
personnel demonstration project; however, NAVFAC EXWC will continue to
evaluate possible future inclusion. Prior to including bargaining unit
employees in the personnel demonstration project, NAVFAC EXWC will
fulfill its obligation to consult and/or negotiate with the labor
organizations in accordance with 5 U.S.C. 4703(f) and 7117, as
appropriate.
NAVFAC EXWC is predominantly a Navy Working Capital Fund (NWCF)
activity. Over 60 percent of the employees to be initially included in
the personnel demonstration project are funded by NWCF. Under NWCF, the
cost of business and operations is built into the Stabilized Billing
Rate (SBR) paid by customers for work performed; by maximizing
management flexibility, NAVFAC EXWC can remain cost competitive.
E. Project Design
There are four fundamental elements of this personnel demonstration
project:
(1) Hiring and staffing flexibilities;
(2) Simplified classification;
(3) Pay Banding; and
(4) Performance-based compensation and assessment.
The hiring and staffing flexibilities will help to better recruit,
hire, and retain the most capable, qualified, and competent workforce
in the job market today. Simplified classification will streamline the
job classification process, reduce the effect of administrative
processes on personnel, and allow for more flexibility in making job
reassignments. The pay banding structure will create four career paths
with multiple pay bands within each career path representing the phases
of career progression that are typical for the respective career paths.
This banding structure will enable managers to more appropriately
reward and retain a diverse workforce using principles of pay equity
and career progression. The performance-based compensation system is
characterized by an assessment of an employee's performance and an
appropriate pay allocation predicated on the assessed level of
performance.
F. Executive STRL Policy Board
The Executive STRL Policy Board (ESPB) will oversee and monitor the
fair, equitable, and consistent implementation of the provisions of the
demonstration project to include establishment of internal controls and
accountability. Members of the ESPB will be appointed by the Technical
Director. Ad hoc members may serve in an advisory capacity to the ESPB.
The ESPB duties will include the following:
(1) Establish policies and issue guidance on composition of pay
pools in accordance with the guidelines of this proposal and internal
procedures;
(2) Review pay pool operation and resolve pay pool disputes;
(3) Establish policies and issue guidance concerning the civilian
pay budget, pay administration, awards and performance-based pay
increases;
(4) Establish policies and issue guidance to ensure in-house budget
discipline and implement workforce staffing and budget plans; and
(5) Develop policies and procedures for administering Developmental
Opportunity Programs; ensure all employees are treated in a fair,
equitable manner.
G. Funding Level
The Under Secretary of Defense (Personnel & Readiness) may, at his/
her discretion, adjust the minimum funding levels 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.
[[Page 14090]]
III. Personnel System Changes
A. Hiring, Appointment, and Related Authorities
1. Qualifications
OPM ``Qualification Standards for General Schedule Positions,''
with minor modifications to address application of OPM qualifications
in a pay banding environment, are used to determine qualifications for
personnel demonstration project positions. ``Band'' is substituted for
``Grade'' where appropriate and time in grade requirements are
eliminated.
Since the pay bands are anchored to the GS grade levels, the
minimum qualification requirements for a position will be the
requirements corresponding to the lowest GS grade incorporated into
that pay band. For example, for a position in the Science and
Engineering (S&E) career path Pay Band II, individuals must meet the
basic requirements for a GS-5 as specified in the OPM ``Qualification
Standard for Professional and Scientific Positions.''
Selective factors may be established for a position in accordance
with the OPM's ``Operating Manual: Qualifications Standards for General
Schedule Positions,'' when determined to be critical to successful job
performance. These factors may become part of the minimum requirements
for the position, and applicants must meet them in order to be
eligible. If used, selective factors will be stated as part of the
qualification requirements in vacancy announcements and recruiting
bulletins.
2. Science and Engineering Direct Hire Authorities
A. NAVFAC EXWC, will use the direct hire authorities authorized in
section 1108 of the NDAA for FY 2009, as amended by section 1103 of the
NDAA FY 2012 and the direct hire authorities authorized in 10 U.S.C.
2358a and published in 79 FR 43722 and 82 FR 29280, as modified, to
appoint the following:
Candidates with advanced degrees to scientific and engineering
positions;
(1) Candidates with bachelor's degrees to scientific and
engineering positions; Veteran candidates to Scientific, Technical,
Engineering, and Mathematics positions (STEM), including technician
positions;
Student candidates enrolled in a program of instruction leading to
a bachelors or advanced degree in a STEM discipline; and
(2) STEM Student Employment Program (SSEP).
B. NAVFAC EXWC will use this direct hire authority for students in
a STEM course of study at an accredited institution of higher
education. The purpose of this direct hire authority is to provide a
streamlined and accelerated hiring process that allows NAVFAC EXWC to
compete successfully with private industry for high quality scientific,
technical, engineering, or mathematics students for filling scientific
and engineering positions. Students appointed under the SSEP are
afforded an opportunity for non-competitive conversion to a permanent
scientific or engineering position upon graduation from an accredited
institution of higher education. Use of this authority will be
consistent with the merit system principles. The SSEP student
employment standards will be similar to the Pathways qualification
standards, which will allow students appointed under this authority to
be aligned to a pay band commensurate with the highest level of
education completed and/or prior experience. SSEP students will remain
on a term appointment until the completion of their educational
program.
C. NAVFAC EXWC may utilize all available direct hiring authorities
to consider and appoint qualified candidates, which may include current
federal employees. This applies to all STRL direct hire authorities
including but not limited to those listed under Section III.2.a
(including 82 FR 29280 and sections 1106 and 1121 of the NDAA FY2017)
and any other applicable direct hire authorities enacted under OPM,
DoD, or DoN or amended after the effective date of this demonstration
project, except as waived in Section IX of this plan.
3. Distinguished Scholastic Achievement Appointments (DSAA)
NAVFAC EXWC will use the Distinguished Scholastic Achievement
Appointment Authority (DSAA) for pay banded positions. The DSAA uses an
alternative examining process which provides the authority to appoint
candidates possessing a bachelor's degree or higher to positions up to
the equivalent of GS-12 for positions in the Science and Engineering
(S&E) pay bands. This enables NAVFAC EXWC to respond quickly to hiring
needs for eminently qualified candidates possessing distinguished
scholastic achievements.
The alternative examining process specifies that candidates may be
appointed provided they meet the minimum standards for the position as
published in OPM's operating manual, ``Qualification Standards for
General Schedule Positions,'' plus any selective placement factors
stated in the vacancy announcement; the occupation has a positive
education requirement; and the candidate has a cumulative grade point
average (GPA) of 3.5 (on a 4.0 scale) or better in their field of study
(or other equivalent score) or are within the top 10 percent in their
field of study in a graduate program.
4. Reemployment of Annuitants
NAVFAC EXWC will use the authorities provided by 5 U.S.C. 9902(g)
and 82 FR 43339 to appoint reemployed annuitants, as appropriate. The
Technical Director may approve the appointment of reemployed annuitants
and determine the salary, to include whether 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 employment. Use of this
authority will be consistent with merit system principles.
5. Volunteer Emeritus Program (VEP)
The Technical Director will have the authority to offer former
Federal employees who have retired or separated from the Federal
service, voluntary assignments in NAVFAC EXWC. Volunteer Emeritus
Program assignments are not considered ``employment'' by the Federal
government. Thus, such assignments do not affect an employee's
entitlement to buyouts or severance payments based on an earlier
separation from Federal service. The Volunteer Emeritus Program will
ensure continued quality research while reducing the overall salary
line by allowing higher paid individuals to accept retirement
incentives with the opportunity to retain a presence in the scientific
community. The program will be of most benefit during manpower
reductions as senior employees could accept retirement and return to
provide valuable on-the-job training or mentoring to less experienced
employees. Volunteer service will not be used to replace any employee,
or interfere with career opportunities of employees. The Volunteer
Emeritus Program may not be used to replace or substitute for work
performed by civilian employees occupying regular positions required to
perform the NAVFAC EXWC mission.
To be accepted into the Volunteer Emeritus Program, a candidate
must be recommended by a NAVFAC EXWC manager to the Technical Director.
Everyone who applies is not entitled to participate in the program. The
Technical Director will document the decision process for each
candidate and retain selection and non-selection documentation for the
duration of the
[[Page 14091]]
assignment or two years, whichever is longer.
To ensure success and encourage participation, the volunteer's
federal retirement pay (whether military or civilian) will not be
affected while serving in a volunteer capacity. Retired or separated
federal employees may accept an emeritus position without a break or
mandatory waiting period.
Volunteers will not be permitted to monitor contracts on behalf of
the government or to participate on any contracts or solicitations
where a conflict of interest exists. The same rules that currently
apply to source selection members will apply to volunteers.
An agreement will be established between the volunteer and the
Technical Director. The agreement will be reviewed by the servicing
legal office. The agreement must be finalized before the assumption of
duties and will include:
(A) A statement that the service provided is gratuitous, that the
volunteer assignment does not constitute an appointment in the civil
service and 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 (stemming from or in connection with the
volunteer assignment) are waived by the volunteer.
(B) A statement that the volunteer will be considered a federal
employee for the purpose of:
(1) 18 U.S.C. 201, 203, 205, 207, 208, 209, 603, 606, 607, 643,
654, 1905, and 1913;
(2) 31 U.S.C. 1343, 1344, and 1349(b);
(3) 5 U.S.C. chapters 73 and 81;
(4) The Ethics in Government Act of 1978;
(5) 41 U.S.C. chapter 21;
(6) 28 U.S.C. chapter 171 (tort claims procedure), and any other
Federal tort liability statute;
(7) 5 U.S.C. 552a (records maintained on individuals);
(8) The volunteer's work schedule; and
(9) The length of agreement (defined by length of project or time
defined by weeks, months, or years).
(C) The support to be provided by the NAVFAC EXWC (travel,
administrative, office space, supplies).
(1) The volunteer's duties.
(D) A provision that states 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 participant in the Volunteer
Emeritus Program.
(1) A provision allowing either party to void the agreement with 10
working days written notice;
(2) The level of security access required (any security clearance
required by the assignment will be managed by the NAVFAC EXWC while the
volunteer is a participant in the Volunteer Emeritus Program);
(3) A provision that any written products prepared for publication
that are related to Volunteer Emeritus Program participation will be
submitted to the Technical Director for review and must be approved
prior to publication;
(4) A statement that the volunteer accepts accountability for loss
or damage to Government property occasioned by the volunteer's
negligence or willful action;
(5) A statement that the volunteer's activities on the premises
will conform to the NAVFAC EXWC regulations and requirements;
(6) A statement that the volunteer will not improperly use or
disclose any non-public information, to include any pre-decisional or
draft deliberative information related to DoD programming, budgeting,
resourcing, acquisition, procurement or other matter, for the benefit
or advantage of the Volunteer Emeritus Program participant or any non-
Federal entities. Volunteer Emeritus Program participants will handle
all non-public information in a manner that reduces the possibility of
improper disclosure.
(7) A statement that the volunteer agrees to disclose any
inventions made in the course of work performed at NAVFAC EXWC. The
Technical Director will have the option to obtain title to any such
invention on behalf of the U.S. Government. Should the Technical
Director elect not to take title, NAVFAC EXWC will retain a non-
exclusive, irrevocable, paid up, royalty-free license to practice or
have practiced the invention worldwide on behalf of the U.S.
Government.
(8) A statement that the Volunteer Emeritus Program participant
must complete either a Confidential or Public Financial Disclosure
Report, whichever applies, and ethics training in accordance with
office of Government Ethics regulations prior to implementation of the
agreement.
(9) A statement that the Volunteer Emeritus Program participant
must receive post-government employment advice from a DoD ethics
counselor at the conclusion of program participation. Volunteer
Emeritus Program participants are deemed Federal employees for purposes
of post-government employment restrictions.
6. Expanded Detail Authority and Temporary Promotions
NAVFAC EXWC will have an Expanded Detail and Temporary Promotion
Authority providing the ability to:
(1) Effect details for up to one year to specified positions at the
same or similar level (positions in a pay band with the same maximum
salary) without the current 120-day renewal requirement specified at 5
U.S.C. 3341.
(2) Effect details or temporary promotions to a higher-level
position up to 1 year within a 24-month period without competition.
Details to higher-level positions beyond one year in a 24-month period
require approval of the Technical Director and are subject to
competitive procedures. The specifics of these authorities will be
stipulated by NAVFAC EXWC IOPs.
7. Flexible Length and Renewable Term Technical Appointments
NAVFAC EXWC may use the Flexible Length and Renewable Term
Technical Appointments workforce shaping tool temporarily authorized by
section 1109(b) of the NDAA for FY 2016, as amended by section 1112(b)
of the NDAA for FY 2019. Further details on the implementation of this
authority are contained in 82 FR 43339. Until this authority expires or
is rescinded, it may be used to appoint qualified candidates who are
not currently DoD civilian employees, or DoD employees on term
appointments into any STEM 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 Technical Director. The
Technical Director, or designee, will establish implementing guidance
and procedures on the use of this authority.
B. Classification, Career Paths and Pay Banding
1. Delegation of Classification Authority
The Technical Director has overall oversight, management, and
delegated classification and position management authority for all STRL
positions covered under the NAVFAC EXWC Personnel Demonstration
Project. Classification authority will be delegated as follows: The
NAVFAC EXWC Technical Director may delegate classification authority to
the NAVFAC EXWC Human Resources Office (HRO) Director. The NAVFAC EXWC
HRO Director may further delegate classification authority to the
NAVFAC EXWC Human Resource
[[Page 14092]]
professionals. If so delegated, the NAVFAC EXWC HRO Director will
exercise oversight to ensure consistency throughout NAVFAC EXWC.
Managers will provide input to classification requests as a means of
increasing managerial effectiveness and expediting the classification
function. Administration and management of Delegated Classification
Authority will be outlined in the NAVFAC EXWC IOPs.
2. Classification
The present system of OPM classification standards will be used for
the identification of the proper occupational series of positions and
certain occupational titles within the NAVFAC EXWC demonstration
project. Current OPM position classification standards will not be used
to grade positions in this project. However, the grading criteria in
those standards will be used as a framework to develop new and
simplified standards for the purpose of pay band determinations. The
classification standard for each pay band will serve as an important
component in the creation of Standard Level Descriptors (SLDs) that
record the essential criteria for each pay band within each career path
by stating the characteristics of the work, the responsibilities of the
position, and the competencies required. SLDs will replace current
position descriptions. SLDs combined with the Position Requirements
Document will include position specific information such as Fair Labor
Standards Act (FLSA) coverage; selective placement factors or
specialized knowledge, skills and abilities; degree requirements or
other professional certification requirements; staffing requirements;
and other data element information pertinent to the position.
3. Simplified Assignment Process
Today's environment of rapid technology development and workforce
transition mandates that the organization have maximum flexibility to
assign individuals. Pay banding may be used to address these needs. As
a result of the assignment to a particular pay band descriptor, the
organization will have maximum flexibility to assign an employee within
pay band descriptors consistent with the needs of the organization, the
individual's qualifications and rank, and pay band. Subsequent
assignments to projects, tasks, or functions anywhere within the
organization requiring the same area of expertise and qualifications
would not constitute an assignment outside the scope or coverage of the
employee's pay band descriptor.
4. Career Paths
A fundamental element of the NAVFAC EXWC personnel demonstration
project is a simplified classification and pay component. Like other
STRL demonstration projects, the proposed pay banding approach is tied
to the 15 GS grade levels and the above GS-15 grade level. Career paths
at NAVFAC EXWC are grouped by four career paths based on similarities
in the type of work and customary requirements for formal education,
training and credentials. Common patterns of advancement within the
occupations as practiced at NAVFAC EXWC were considered. Current
occupations and grades were examined and their characteristics and
distribution were used to develop the career paths described below:
(1) Science and Engineering (ND Pay Plan): This career path
includes technical professional positions, such as engineers,
physicists, chemists, mathematicians, operations analysts, and computer
scientists. Specific course work or educational degrees are required
for these occupations.
(2) Science and Engineering Technician (NR Pay Plan): This career
path includes technician positions such as engineering technicians,
electronics technicians, and physical science technicians. These
occupations require practical expertise in scientific or engineering
support but specific course work or educational degrees are not
required for these occupations.
(3) Administrative/Professional (NT Pay Plan): This career path
includes positions such as attorneys, IT specialists, paralegals,
program managers, accountants, budget analysts, administrative
officers, human resources specialists, and management analysts.
Employees in these positions may or may not require specific course
work or educational degrees.
(4) General Support (NG Pay Plan): This career path includes the
clerical and administrative support positions providing support in such
fields as finance, supply, and human resources; positions applying
typing, clerical or secretarial knowledge and skills; and student
positions for training in these disciplines.
Each career path is composed of discrete pay bands (levels)
corresponding to recognized advancement within these occupations. These
pay bands replace grades and are not the same for all career paths.
Each career path is divided into three to five pay bands; each pay band
covering the same pay range formerly covered by one or more GS grades.
The salary range of each band begins with step 1 of the lowest grade in
that pay band and ends with step 10 of the highest grade in the pay
band. The grouping of GS grades into a particular band was based on a
careful examination of NAVFAC EXWC's occupations, grade levels, and
career development practices. Career paths and the associated
classification occupational series for each are provided in Appendix A.
The distribution of the occupational series to career paths reflects
only those occupational series that currently exist within NAVFAC EXWC.
Additional occupational series may be added as a result of changes in
mission requirements or OPM-recognized occupations. These additional
occupational series will be placed in the appropriate career path
consistent with the established career path definitions.
5. Pay Band Structure
The pay bands and their relation to the current GS framework are
shown in Figure 1. This pay band structure allows significant
flexibility to define and classify work assignments and to reward
performance. A key feature is the overlap in (ND) career path between
bands III and IV. ND-III begins at GS-12, step 1, and ends at GS-14,
step 10. ND-IV begins at GS-14, step 1, and ends at GS-15, step 10.
Control points will be applied as outlined in the NAVFAC EXWC IOPs.
[[Page 14093]]
[GRAPHIC] [TIFF OMITTED] TN12MR21.000
6. Fair Labor Standards Act
Fair Labor Standards Act (FLSA) exemption and nonexempt
determinations will be made consistent with criteria found in 5 CFR
part 551. Generally, employees will be converted to the demonstration
project with the same FLSA status they had previously. All employees
are covered by the FLSA unless they meet the criteria for exemption.
The duties and responsibilities outlined in the classification
standards for each pay band will be compared to the FLSA criteria.
7. Senior Scientific Technical Managers (SSTM)
The SSTM program will be managed and administered by the Technical
Director, consistent with the provisions 10 U.S.C. 2358a, 79 FR 43722,
and NAVFAC EXWC IOPs. The primary function of these positions is to
engage in research and development in the physical, biological,
medical, or engineering sciences, or another field closely related to
the NAVFAC EXWC mission and to carry out technical supervisory
responsibilities. The number of such positions may not exceed 2 percent
of the number of scientists and engineers employed at NAVFAC EXWC,
unless changed by future legislation, as of the close of the last
fiscal year before the fiscal year in which any appointments subject to
the numerical limitation are made. This authority is expected to
provide an opportunity for career development and expansion of a pool
of experienced, prominent technical candidates meeting the levels of
proficiency and leadership essential to create and maintain a DoD
state-of-the-art scientific, engineering and technological facility.
The minimum basic pay for SSTM positions is 120 percent of the minimum
rate of basic pay for GS-15. Maximum SSTM basic pay with locality pay
is limited to Executive Level III (EX-III), and maximum salary without
locality pay may not exceed EX-IV. All SSTM positions within NAVFAC
EXWC will report to and be evaluated by the NAVFAC EXWC Technical
Director (non-delegable). SSTMs will be evaluated by the STRL
Performance Management System as outlined in NAVFAC EXWC's IOPs. Pay
retention may be provided to SSTM, under criteria required by NAVFAC
EXWC IOPs for those impacted by a reduction in force, work realignment
or other planned management action that would necessitate moving the
incumbent to a position in a lower pay band within the STRL for other
than cause (performance or conduct).
8. Professional Licensure Designations for Architectural and
Engineering Positions
The Technical Director and the NAVFAC EXWC Chief Engineer have non-
delegable authority to designate those positions within NAVFAC EXWC
requiring professional licensure. Engineering and Architectural
positions requiring professional licensure will be monitored by the
NAVFAC EXWC Chief Engineer. It is the policy of NAVFAC EXWC to recruit,
hire, professionally develop, and maintain a professional workforce of
the highest caliber. Professional licensing is required for any
position, regardless of pay band, in responsible charge of engineering/
architectural work, whether performed in-house or by contract. The
specific guidelines will be documented in NAVFAC EXWC's IOPs. However,
the Technical Director has final authority regarding professional
licensure requirements.
9. Classification Appeals
Employees have the right to appeal the classification of their
position at any time. A classification complaint is an employee's
request for a review, at the activity level, of the pay plan,
occupational series, position title and pay band of their position. The
employee must formally make a complaint to their immediate supervisor
to initiate the classification complaint review process. The HRO will
review the complaint and issue a determination. If the employee is
dissatisfied with the outcome of the classification complaint review,
the employee may appeal the classification of the position to the
Technical Director. If the employee is dissatisfied with the decision
rendered by the Technical Director, the employee may initiate a formal
classification appeal to the DoD appellate level. Appeal decisions
rendered by DoD will be final and binding on all administrative,
certifying, payroll, disbursing, and accounting officials of the
government. Classification appeals are not accepted on positions that
exceed the equivalent of a GS-15 level. An employee may not appeal the
accuracy of the position description, the demonstration project
classification criteria, or the pay-setting criteria; the assignment of
occupational series to the career path; the propriety of a pay
schedule; command developed position titles; or matters covered by an
administrative or negotiated grievance procedure or an alternative
dispute resolution procedure. The evaluations of classification appeal
are based upon the demonstration project classification criteria.
Additional guidance will be documented in NAVFAC EXWC IOPs.
[[Page 14094]]
C. Pay and Compensation
Pay administration policies are established by the ESPB. The
following definitions and policies will apply to the pay setting of new
hires, movement of employees within the demonstration project from one
career path or pay band to another, as well as any other pay action
outside the performance-based assessment system.
1. Pay Setting for Appointment
For initial appointments to the Federal service, base pay may be
set anywhere within the pay band consistent with the special
qualifications of the individual and the unique requirements of the
position. These special qualifications may be in the form of education,
training, and/or experience. Unique position requirements may include
scarcity of qualified candidates, labor market considerations,
programmatic urgency, or any combination thereof that is pertinent to
the position in which the employee is being placed. Initial pay setting
is based on base pay, not total adjusted salary. Specific guidelines
for application of pay setting for appointments will be contained in
NAVFAC EXWC IOPs.
2. Promotion
A promotion is the movement of an employee to a higher pay band in
the same career path or to a higher pay band in a different career
path. It also includes movement of an employee currently covered by a
non-demonstration project personnel system to a demonstration project
position in a pay band with a higher level of work. Positions with a
known promotion potential to a specific band will be identified when
they are filled. Not all positions in a career path will have promotion
potential to the same band. Promotion may be accompanied by a pay
increase. Movement from one career path to another will depend upon
individual competencies, and qualifications. Specific guidelines
regarding promotions will be documented in NAVFAC EXWC IOPs.
Progression within a pay band is based upon performance-based pay
increases and as such, these actions are not considered promotions and
are not subject to provisions of this section. Promotions will follow
Merit System Principles and basic Federal Merit Staffing policy that
provides for competitive and non-competitive promotions. To be promoted
competitively or non-competitively, from one pay band to the next, an
employee must meet the minimum qualifications for the job and have a
current rating of record of 2 or above (acceptable performance rating)
or an equivalent under a different appraisal system. Other specific
guidelines regarding promotions will be documented in NAVFAC EXWC IOPs.
3. Reassignment
A reassignment occurs when an employee moves, voluntarily or
involuntarily, to a different position or set of duties within their
pay band or to a position in a comparable pay band at a comparable
level of work, or from a non-demonstration project position to a
demonstration project position at a comparable level of work, on either
a temporary or permanent basis. Under this system, employees may be
eligible for an increase to base pay upon temporary or permanent
reassignment. Such an increase is subject to the specific guidelines
established by the ESPB and documented in NAVFAC EXWC IOPs.
4. Demotion or Change To Lower Pay Band
A demotion is the placement of an employee into a lower pay band or
movement from a non-demonstration project position to a demonstration
project position at a lower level of work. Demotions may be for cause
(performance or conduct) or for reasons other than cause (e.g., erosion
of duties, reclassification of duties to a lower pay band, application
under competitive announcements, at the employee's request, or
placement actions resulting from Reduction-in-Force (RIF) procedures).
In cases where change to a lower pay band is involuntary and
accompanied by a reduction in pay, procedures under 5 CFR part 752 and
432 remain unchanged.
5. Locality Pay
Employees will be entitled to the locality pay authorized for their
official duty station in accordance with 5 CFR part 531 subpart F,
except as waived in Section IX of this plan. 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
payment.
6. Staffing Supplements
Employees assigned to occupational categories and geographic areas
where GS special rates apply may be entitled to a staffing supplement
if the maximum adjusted base pay rate for the demonstration band to
which the employee is assigned is exceeded by a GS special rate for the
employee's occupational category and geographic area. Employees
receiving a staffing supplement remain entitled to an underlying
locality rate, which may over time supersede the need for a staffing
supplement. If OPM discontinues or decreases a special rate schedule,
retained pay provisions will be applied. If at any time after
establishment of the demonstration project, special salary rates (SSRs)
are deemed necessary by NAVFAC EXWC leadership, they will be
implemented via a staffing supplement, and also documented in NAVFAC
EXWC IOPs.
7. Grade and Pay Retention
The project will eliminate retained grade under 5 CFR part 536. Pay
retention will follow current law and regulations at 5 U.S.C. 5362 and
5363 and 5 CFR part 536, except as modified in the Staffing Supplements
section and waived in Section IX of this plan. If an employee is
receiving retained pay under the personnel demonstration project, the
employee's GS-equivalent grade is the highest grade encompassed in
their pay band level.
8. Recruitment, Retention, and Relocation Incentives
The project will continue to employ recruitment, retention, and
relocation incentives as described in 5 CFR part 575, except as waived
in section IX under this plan. The Technical Director is specifically
authorized to use recruitment, retention, and relocation incentives,
which are further described in NAVFAC EXWC IOPs. The authority in 5 CFR
part 575, is further expanded to allow NAVFAC EXWC to offer retention
counteroffers to high performing employees with critical scientific or
technical skills who present evidence of an alternate employment
opportunity with higher compensation. Such employees may be provided
increased base pay (up to ceiling of the pay band) and/or a one-time
cash payment that does not exceed 50 percent of one year of base pay.
Retention counteroffers, either in the form of a base pay increase and/
or a bonus, count toward the aggregate limitation on pay consistent
with 5 U.S.C. 5307 and 5 CFR part 530, subpart B, except as waived in
section IX of this plan.
9. Extraordinary Achievement Allowance (EAA)
NAVFAC EXWC will employ an Extraordinary Achievement Allowance
[[Page 14095]]
(EAA) designed to optimize organizational effectiveness. An EAA is
defined as a temporary monetary allowance up to 25 percent of base pay,
provided that an employee's total compensation does not exceed the rate
of basic pay for Executive Level IV in effect at the end of such
calendar year. It is paid on either a bi-weekly basis concurrent with
normal pay days, or as a lump sum following completion of a designated
contribution period, or combination of these, at the discretion of the
Technical Director (or designee). It is not base pay for any purpose,
e.g., retirement, life insurance, severance pay, promotion, or any
other payment or benefit calculated as a percentage of base pay. The
EAA will be available to certain employees whose present contributions
are worthy of a higher career level and whose level of achievement is
expected to continue at the higher career level for at least one year
as specified by the ESPB and outlined in NAVFAC EXWC IOPs.
10. Pay Differential for Supervisory, Supervisor (CSRA), and Team
Leader Positions
NAVFAC EXWC will establish a pay differential to be provided at the
discretion of the Technical Director (or designee) to incentivize and
reward personnel in Supervisory positions, Supervisor Civil Service
Reform Act (CSRA) positions (position meets definition of Supervisor in
5 U.S.C. 7301(a)(10) but does not constitute a major duty occupying at
least 25 percent of the position's time), and Team Leader positions
(position is titled with the prefix ``Lead'' and meets the minimum
requirements for application of the General Schedule Team Leader Grade-
Evaluation Guide). A pay differential is a cash incentive that may
range up to 10 percent of the employee's base rate of pay. It is paid
on a pay period basis and is not included as part of the employee's
base rate of pay. The pay differential must be terminated if the
employee is removed from the supervisory or team leader position (and
is not placed in another supervisory or team leader position),
regardless of cause. All personnel actions involving a pay differential
will require a statement signed by the employee acknowledging that the
differential is not part of base pay for any purpose and may be
terminated or reduced as dictated by fiscal limitations, changes in
assignment or scope of work, or by the Technical Director. Positions,
titles, duties and responsibilities that are eligible for supervisory
differential, as well as standards for differential awards, will be
defined in an NAVFAC EXWC IOP. Any adjustment or termination of a
supervisory pay differential will be in accordance with NAVFAC EXWC's
IOPs and all applicable laws and regulations. The termination or
reduction of the differential is not an adverse action and is not
subject to appeal or grievance.
11. Educational Base Pay Adjustment
NAVFAC EXWC will establish an educational base pay adjustment that
is separate from other incentive pay and may not exceed the top of the
employee's assigned pay band. The educational base pay adjustment may
be used to adjust the base pay of individuals who have acquired a level
of mission-related education that would otherwise make the employee
qualified for an appointment at a higher level and would be used in
lieu of a new appointment. For example, this authority may be used to
adjust the base pay of employees who are participating in a graduate
level Student Educational Employment Program, or employees who have
obtained an advanced degree, such as a Ph.D., in a field related to the
work of their position or the mission of their organization.
D. Employee Development and Awards
1. Expanded Development Opportunities Program
NAVFAC EXWC will establish an Expanded Development Opportunities
Program that will cover all demonstration project employees. Expanded
development opportunities include:
(1) Long term training;
(2) One-year work experiences in an industrial setting via the
Relations With Industry Program;
(3) One-year work experiences in laboratories of allied nations via
the Science and Engineer Exchange Program;
(4) Rotational job assignments within NAVFAC EXWC;
(5) Developmental assignments in higher headquarters within the DoN
and DoD;
(6) Self-directed study via correspondence courses and at colleges
and universities;
(7) Details within NAVFAC EXWC and to other Federal agencies;
(8) Intergovernmental Personnel Act Program Agreements; and
(9) Sabbaticals.
Each developmental opportunity period should benefit the
organization and increase the employee's individual effectiveness as
well. Various learning or developmental work experiences may be
considered, such as advanced academic teaching or research and
sabbaticals. An expanded developmental opportunity period will not
result in loss of or reduction in base pay, loss of leave to which the
employee is otherwise entitled, or any loss of credit for time or
service.
Program openings will be announced as opportunities arise.
Instructions for application and the selection criteria will be
included in the announcement. Final selection/approval for
participation in the program will be made by the Technical Director.
The Technical Director can delegate this responsibility based on the
provision as noted in II.A.2. The position of an employee participating
in an expanded development opportunity may be backfilled by temporary
assignment of other employee or temporary redistribution of work.
However, that position or its equivalent must be made available to the
employee upon return from the expanded developmental opportunity. An
employee accepting an Expanded Developmental Opportunity must sign a
continuing service agreement up to three times the length of the
assignment, with the service obligation to NAVFAC EXWC. If the employee
voluntarily leaves the organization before the service obligation is
completed, the employee is liable for repayment unless the service
agreement or the repayment is waived by the Technical Director.
Conditions for waiver of service agreements or repayments will be
established in the NAVFAC EXWC IOP.
2. Skills Training
Training is essential for an organization that requires continuous
development of advanced and specialized knowledge. Degree studies are
also critical tools for recruiting and retaining employees with skills
essential to the NAVFAC EXWC mission. The Technical Director has the
authority to approve training.
Individual training programs may be approved based upon a complete
individual study program plan. Such training programs will ensure
continuous development of advanced specialized knowledge essential to
the organization and enhance the ability to recruit and retain
personnel critical to the present and future requirements of the
organization. Tuition payment may not be authorized where it would
result in a tax liability for the employee without the employee's
express and written consent. Any variance from this policy must be
rigorously determined and documented. Guidelines will be developed to
ensure competitive approval of training and those decisions will be
fully documented. Employees
[[Page 14096]]
approved for training must sign a service obligation agreement to
continue service at NAVFAC EXWC for a period three times the length of
the training period commencing after the completion of the entire
training program. If an employee voluntarily leaves NAVFAC EXWC before
the service obligation is completed, he/she is liable for repayment of
expenses incurred by NAVFAC EXWC that are related to the training.
Expenses do not include salary costs. The Technical Director has the
authority to waive this requirement. Criteria for such waivers will be
addressed in NAVFAC EXWC IOPs.
3. Accelerated Compensation for Developmental Positions (ACDP)
The Technical Director may authorize an increase to basic pay for
employees participating in training programs, internships, or other
development capacities. This may include employees in positions that
cross bands within a career path (formally known as career ladder
positions) or developmental positions within a band. ACDP will be used
to recognize development of job related competencies as evidenced by
successful performance within NAVFAC EXWC. Additional guidance will be
published in an IOP.
4. Awards
To provide additional flexibility to motivate and reward
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, recognition for special or
extraordinary achievements, patents, inventions, suggestions, and on-
the-spot awards. The funds available for awards are separately funded
within the constraints of the organization's overall award budget.
While not directly linked to the mission aligned objectives and
performance compensation system, this additional flexibility is
important to encourage outstanding accomplishments and innovation in
accomplishing NAVFAC EXWC's diverse missions. Additionally, group
awards may be given to foster and encourage teamwork. The Technical
Director will have the authority to grant special act or achievement
awards to covered employees of up to $10,000.
E. Performance Management
1. Mission Aligned Objectives and Performance Compensation
The purpose of mission aligned objectives and performance
compensation is to link the work of the employee to the mission of the
organization and to provide a mechanism for recognizing the impact of
the employee's accomplishments and performance to help achieve that
mission. It provides an effective, efficient, and flexible method for
assessing, compensating, and managing NAVFAC EXWC's workforce. This
performance management system better aligns with developing a highly
productive workforce and for providing the authority, control, and
flexibility to achieve a quality organization and meet mission
requirements. Mission aligned objectives and performance compensation
encourages more employee involvement in the assessment process, strives
to increase communication between supervisor and employee and promotes
performance accountability. By linking mission directly to both annual
evaluations and compensation outcomes, objectives facilitate employee
career progression and provide an understandable and rational basis for
pay changes. The normal rating period will be one year.
Objectives, developed jointly by employees and their supervisors,
must be in place within 30 days from the beginning of each rating
period. The minimum rating period is 90-days. Employees who do not meet
the 90-day minimum requirement will not be eligible for a STRL
performance rating of record. However, specially situated employees,
who do not meet the 90-day minimum requirement, may receive the same
performance rating as the employee's last performance rating of record
or a modal performance rating, whichever is most advantageous to the
employee, as documented in NAVFAC EXWC's IOPs. However, when the most
recent rating of record is unacceptable, only that rating of record
will be considered for purposes of a performance rating. A modal
performance rating is the most frequently received rating of record
assigned to employees within a particular pay pool for a particular
rating cycle. Specially situated employees include those employees who
are absent from a STRL position for military service, employees on a
prolonged absence resulting from a work-related injury approved for
workers compensation pursuant to an Office of Worker's Compensation
Program, and those employees in a STRL position, who have less than 90
calendar days under a STRL performance plan due to being temporarily
assigned to a non-STRL position. Those employees who do not meet the
90-day minimum requirement, except for specifically situated employees,
may receive only the general pay increase and they may also receive
Title 5 cash awards, if appropriate. First-time hires must have
performance plans in place within 30 days of their demonstration
project entry effective date. Current demonstration project employees
who change positions during the performance year should have their
plans updated with new objectives no later than 30 days after
assignment to their new position.
Mission aligned objective and performance compensation can be in
the form of increases to base pay and/or lump sum cash bonuses that are
not added to base pay. The system can be modified, if necessary, as
more experience is gained under the project. The flexibilities in this
mission aligned objectives and performance compensation section are
similar in nature to the authority granted to:
(1) The Naval Ocean Systems Center and the Naval Weapons Center,
China Lake, 45 FR 26504;
(2) The CCDC ARL, 65 FR 3500; and
(3) NAVAIR Aircraft and Weapons Divisions, 76 FR 8529.
2. Individual Mission Objectives
Individual mission objectives are directly related to achieving the
NAVFAC EXWC mission. Objectives identify expectations and typically
consist of 3 to 10 results-oriented statements. Objectives are tangible
and measurable so that achievements can be identified. These objectives
incorporate important behavioral practices such as teamwork and
cooperation where they are key to a successful outcome. One supervisory
objective, including adherence to EEO principles, is mandatory for all
managers/supervisors. The employee and their supervisor will jointly
develop the employee's individual mission objectives at the beginning
of the rating period. The supervisor has final approval authority of
the objectives. Objectives will reflect the employee's duties/
responsibilities, pay band and pay level in the pay band as well as
support the NAVFAC EXWC mission, organizational goals and priorities.
Objectives will be reviewed annually and revised to reflect increased
responsibilities commensurate with pay increases. Generic one-size-
fits-all objectives are to be avoided, so that individual mission
objectives define an individual's specific responsibilities and
expected accomplishments for the performance year. Supervisors and
employees should focus on overall organizational objectives and develop
supporting individual mission objectives.
[[Page 14097]]
Individual mission objectives may be jointly modified, changed, or
deleted as appropriate during the rating cycle. As a general rule,
objectives should only be changed when circumstances outside the
employee's control prevent or hamper the accomplishment of the original
objectives. It is also appropriate to change objectives when mission or
workload shifts occur.
All objectives are critical. A critical mission objective is
defined as an attribute of job performance that is of sufficient
importance that achievement below the minimally acceptable level
requires remedial action and may be the basis for removing an employee
from his/her position. Each objective may be assigned a weight, which
reflects its importance in accomplishing an individual's mission
objectives. The minimum weight that can be assigned is 10 percent. The
sum of the weights for all of the objectives must equal 100 percent. At
the beginning of the rating period, higher-level managers will review
the objectives and weights assigned to employees within the pay pool to
verify consistency and appropriateness.
3. Rating Benchmarks
Rating benchmarks define characteristics that will be used to
evaluate the employee's success in accomplishing their individual
mission objectives. Scoring characteristics help to ensure comparable
scores are assigned while accommodating diverse individual objectives.
A single set of rating benchmarks for each band or career stage may be
used for evaluating the annual performance of all NAVFAC EXWC personnel
covered by this plan. An example of rating benchmarks is shown in
Appendix B. The set of benchmarks used may evolve over time, based on
experience gained during each rating cycle. Critical characteristics
evolve as our workforce actively moves toward meeting their individual
and organizational objectives. This is particularly true in an
environment where technology and work processes are changing at an
increasingly rapid pace. The ESPB will annually review the set of
benchmarks and set them for the entire organization before the
beginning of the rating period.
4. Performance Feedback and Formal Ratings
Employees and supervisors are expected to actively discuss
expectations and identify potential obstacles to meeting goals.
Employees should explain (to the extent possible) what is needed from
their supervisor to support goal accomplishments. The timing of these
discussions will vary based on the nature of work performed, but will
occur at least 30 days from the beginning of each rating period, at the
mid-point and at the end of the rating period. The supervisor and
employee will discuss job performance and accomplishments in relation
to the expectations in the mission aligned objectives. At least one
review, normally the mid-point review, will be documented as a formal
progress review. More frequent, task specific, discussions may be
appropriate in some organizations. In cases where work is accomplished
by a team, team discussions regarding goals and expectations will be
appropriate. The employee may provide a statement of their
accomplishments to the supervisor at both the mid-point and end of the
rating period. However, this provision does not preclude an employee
from providing a statement of their accomplishments to their supervisor
that are outside the mid-year and year-end evaluations and rating
period.
Following a review of the employee's accomplishments at the end of
the rating period, the supervisor will rate each of the individual
mission objectives. Benchmark performance standards, set before the
beginning of each rating period, describe the level of performance
associated with a score that will be used to determine ratings of
record. The supervisor decides where each employee's achievements and
performance most closely match the benchmarks and assigns an
appropriate score. These scores are not discussed with the employee or
considered final until all scores are reconciled and approved by the
Pay Pool Manager. The scores will then be multiplied by the objective-
weighting factor to determine the weighted score expressed to two
decimal points. The weighted scores for each objective will then be
totaled to determine the employee's overall appraisal score and rounded
to a whole number as follows: If the first two digits to the right of
the decimal are 0.51 or higher, it will be rounded to the next higher
whole number; if the first two digits to the right of the decimal are
0.50 or lower, then the decimal value is truncated. The resulting score
determines the rating.
NAVFAC EXWC will use a five-level rating methodology with
associated payout point ranges in which level five signifies the
highest level of performance. The supervisor will prepare and recommend
the rating, number of payout points, and the distribution of the payout
between base pay increase and bonus, as applicable, for each employee.
These recommendations will then be reviewed by next level supervisors
and then the pay pool panel to ensure equitable rating criteria and
methodologies have been applied to all pay pool employees. The final
determination of the rating, number of payout points, and payout
distribution will be a function of the pay pool panel process and will
be approved by the Pay Pool Manager. The criteria used to determine the
number and distribution of payout points to assign an employee may
include: Assessment of the employee's contribution towards achieving
the mission, the employee's type and level of work, the employee's
current compensation and the criticality of their contribution to
mission success, consideration of specific achievements, or other job-
related significant accomplishments or contributions.
The rating and payout point schema is:
------------------------------------------------------------------------
Performance level description Rating Payout points
------------------------------------------------------------------------
Exceptional............................. 5 5, 6.
Exceeds Mission Expectations............ 4 3, 4.
Full Mission Success.................... 3 0, 1, 2.
Marginal Mission Success................ 2 0.
Unacceptable............................ 1 0.
------------------------------------------------------------------------
Employees with an acceptable rating of record, two or above, for
each mission aligned objective will receive the equivalent of the
authorized GS general pay increase (GPI). An employee receiving an
``Unacceptable'' rating of one for any mission-aligned objective will
not receive the GPI and will require administrative action to address
the performance deficiency. A rating of ``1'' on a single objective
will also result in a rating of ``Unacceptable.'' Supervisors of
employees who are assessed to be at the ``Unacceptable'' level, will
take appropriate action as soon as practicable. However, at the end of
the performance year, employees who are assessed to be at the
``Unacceptable'' level will have their rating deferred until the end of
a performance improvement period. If the employee's performance is
found to be unacceptable following a performance improvement period a
rating of record will be ``1'' and administrative action will be taken.
If the employee's performance is found to be acceptable at the end of
the improvement period, rating of record, and its associated payouts,
to include GPI, will be applicable to the end of the appraisal period.
If an employee's performance deteriorates again in any objective within
two years from the beginning of the performance improvement period,
actions may be
[[Page 14098]]
initiated to effect a performance based action with no additional
opportunity to improve.
5. Pay Pools
The NAVFAC EXWC Technical Director (or designee) will establish pay
pools, and appoint pay pool panels and the Pay Pool Managers.
Typically, pay pools will have between 35 and 300 employees. A pay pool
should be large enough to encompass a reasonable distribution of
ratings but not so large as to compromise rating consistency. Large pay
pools may use sub pay pools subordinate to the pay pool due to the size
of the pay pool population, the complexity of the mission, or other
similar criteria. The covered organizations' employees will be placed
into pay pools. Neither the Pay Pool Manager, supervisors, or pay pool
panel members within a pay pool will in any way recommend or
participate in setting their own rating or individual payout except for
the normal employee self-assessment process.
Each employee is initially scored by their supervisor. Next, the
rating officials in an organizational unit (Directorates, Divisions,
Branches, Teams, etc.), along with their next level of supervision,
will review and compare recommended ratings to ensure consistency and
equity of the ratings. In this step, each employee's individual mission
objectives, accomplishments, preliminary scores, and pay are compared
to benchmark performance standards. Through discussion and consensus
building, consistent and equitable ratings are reached. Managers will
not prescribe a distribution of ratings. The Pay Pool Manager will then
chair a final review with the rating officials who report directly to
him or her to validate these ratings and resolve any scoring issues. If
consensus cannot be reached in this process, the Pay Pool Manager makes
all final decisions. Ratings are finalized after this reconciliation
process is complete. Decisions regarding the amount and distribution of
the payouts are based on the employee's most recent rating of record
for the performance year, the criteria listed above under performance
feedback, the type and nature of the funding available to the pay pool,
and the number of payout points assigned by the pay pool. In the case
of NAVFAC EXWC attorneys, special consideration must be made relative
to assigned score. To avoid conflict with state bar rules, the pay pool
panel may not alter the mission aligned objective performance ratings
or the overall score that NAVFAC HQ counsel assigns to an attorney;
however, the pay pool panel may make independent judgments, such as pay
adjustments after considering that score. A reconsideration from a
NAVFAC EXWC attorney will be handled in accordance with the Office of
General Counsel's grievance procedures after NAVFAC HQ counsel and the
pay pool panel recommends a resolution.
Funds within a pay pool available for performance payouts are
divided into two components, base pay and bonus. The funds within a pay
pool used for base pay increases are those that would have been
available for within-grade increases, quality step increases and
promotions under the GS system (excluding the costs of promotions still
provided under the pay banding system). The funds available to be used
for bonus payouts are funded separately within the constraints of the
organization's overall award budget. Both amounts will be defined based
on historical data and will initially be set at no less than one
percent of total base pay annually. As changes in the demographics of
the workforce or other exigencies occur, adjustments may be made to
these two factors. The sum of these two factors is referred to as the
pay pool percentage factor. The ESPB will annually review the pay pool
funding and recommend adjustments to the Technical Director (or
designee) to ensure cost discipline over the life of the demonstration
project. Additional guidance on pay pool design and composition will be
included in NAVFAC EXWC IOPs.
6. Performance Payout Determination
The payout an employee will receive is based on the total
performance rating from the mission aligned objectives and performance
compensation assessment process. An employee will receive a payout as a
percentage of base pay. This percentage is based on the number of
payout points that equates to their final appraisal score. The value of
a payout point cannot be determined until the rating and reconciliation
process is completed and all scores are finalized. The payout point
value is expressed as a percentage.
The formula that computes the value of each payout point uses base
pay rates and is based on:
(1) The sum of the base pay of all the employees in the pay pool
times the pay pool percentage factor;
(2) The employee's base pay;
(3) The number of payout points awarded to each employee in the pay
pool; and
(4) The total number of payout points awarded in the pay pool.
This formula assures that each employee within the pool receives a
payout point amount equal to all others in the same pool who are at the
same rate of base pay and receiving the same score. The formula is
shown in Figure 2.
[GRAPHIC] [TIFF OMITTED] TN12MR21.001
An individual payout is calculated by first multiplying the payout
points earned by the payout point value and multiplying that product by
base pay. An adjustment is then made to account for locality pay or
staffing supplement. A Pay Pool Manager is accountable for staying
within pay pool limits and final decisions on base pay increases and/or
bonuses to individuals based on rater recommendations, the final score,
the pay pool funds available, and the employee's base pay.
7. Base Pay Increases and Bonuses
The amount of money available for the performance payouts is
divided into two components: Base pay increases and bonuses. The base
pay and bonus funds are based on the pay pool funding formula
established annually. Once the individual performance amounts have been
determined, the next step is to determine what portion of each payout
will be in the form of a base pay increase as opposed to a bonus
payment. The payouts made to employees from the pay pool may be a mix
of base pay and bonus, such that all of the allocated funds are
disbursed. To continue to provide performance incentives while also
ensuring cost discipline, base pay increases may be
[[Page 14099]]
limited or capped. Certain employees will not be able to receive the
projected base pay increase due to base pay caps. Base pay is capped
when an employee reaches the maximum rate of base pay in an assigned
pay band or when a control point applies. Also, for employees receiving
retained rates above the applicable pay band maximum, the entire
performance payout will be in the form of a bonus payment.
When capped, the total payout an employee receives will be in the
form of a bonus versus the combination of base pay and bonus. Bonuses
are cash payments and are not part of the base pay for any purpose
(e.g., lump sum payments of annual leave on separation, life insurance,
and retirement). The maximum base pay rate under this demonstration
project will be the unadjusted base pay rate of GS-15, Step 10, except
for employees in ND Pay Band V.
8. Pay Band Progression
As a compensation management tool, NAVFAC EXWC will use control
points to manage position and pay progression within each band. Control
points may be set within each band and may be used in the pay pool
process to manage performance salary increases. Taking an employee's
salary across a control point will require review of both the position
and performance of the employee. Advancement across a control point may
not occur without approval of the NAVFAC EXWC Technical Director.
Employees who display continuous exemplary performance may be
candidates for pay band movement to the next higher pay band. The
request must be made by a Pay Pool Manager and must demonstrate that an
employee's high-level of performance is commensurate with the
complexities and responsibilities of a position in the next higher pay
band and will continue into the future. Movement to a higher pay band
level is not guaranteed. Approval of requests for movement to the next
higher level pay band based on employee performance resides with the
NAVFAC EXWC Technical Director. Criteria for crossing control points
and movement to a higher pay band based on high-level performance will
be contained in NAVFAC EXWC IOPs.
9. Requests for Reconsideration
An employee may request reconsideration of the rating-of-record
received under the mission aligned objectives and performance
compensation system. A rating of record or job objective rating may be
reconsidered by request of an employee only through the reconsideration
process specified in an NAVFAC EXWC IOP (except for NAVFAC EXWC's
attorneys, see section III.E.5). This process will be the sole and
exclusive agency administrative process for employees to request
reconsideration of a rating of record and is not subject to the agency
administrative grievance system, or any negotiated grievance
procedures.
Consistent with this part, a Designated Management Official (DMO)
will make the decision on reconsiderations of rating of record. The
DMOs' decisions are final. The DMO is a senior NAVFAC EXWC manager who
is appointed by the Technical Director to make this final
determination. The DMO will not be the pay pool manager who made the
decision on the subject rating. The payout point determination, payout
distribution determination, or any other payout matter will not be
subject to the reconsideration process, any other agency administrative
grievance system or any negotiated grievance procedures.
In the event of a reconsideration that results in an adjusted
rating of record, the revised rating will be referred to the Pay Pool
Manager for recalculation of the employee's performance payout amount
and distribution. Any adjustment to base pay will be retroactive to the
effective date of the performance payout. Base pay adjustments will be
based on the payout point range appropriate for the adjusted rating of
record. Payout point values for the adjusted rating of record will
reflect the payout point value paid to other members across the pay
pool for that rating cycle. Decisions made through the reconsideration
process will not result in recalculation of the payout made to other
employees in the pay pool.
Appeals that contain allegations that a performance rating was
based on prohibited actions that are subject to formal review and
adjudication by a third party may not be processed through the
reconsideration process, but instead may be processed by the employee
through an applicable third party process. Such third parties include,
but are not limited to: The Merit Systems Protection Board (MSPB), the
Office of Special Counsel (OSC), the OPM, the Federal Labor Relations
Authority (FLRA) and the Equal Employment Opportunity Commission
(EEOC).
F. Workforce Shaping
1. Modified Voluntary Early Retirement (VERA) and Voluntary Separation
Incentive Pay (VSIP)
NAVFAC EXWC will use the modified VERA and VSIP authorities
authorized by sections 1109(b)(3) and (4) of the NDAA for FY 2016. The
Technical Director may use VERA and VSIP whenever such incentives will
help the STRL to achieve one or more of the objectives in section
1109(a). This authority may not be delegated further. DoD has
published, at 82 FR 43339, specific direction and authorization for the
use of VERA and VSIP authorities by STRLs for workforce shaping. If the
laboratory workforce is being downsized, VERA and VSIP incentives may
be used to minimize the need for involuntary separations. 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.
Details on the specific use of this authority are contained in 82 FR
43339.
IV. Conversion
A. Initial Conversion or Movement Into the Demonstration Project
1. Placement Into Career Paths and Pay Bands
Employees will be converted automatically from their current GS
series and grade to the appropriate career paths and pay band levels.
It is essential to the success of the project that employees, upon
entering the project, know that they are not losing a pay entitlement
accrued under the GS system. Employees that were covered by local or
national special salary rates will no longer be considered a special
salary employee under the demonstration project and thus will gain
eligibility for full locality pay. To control conversion costs and to
avoid a salary increase windfall for these employees, the adjusted
salaries will not change. Rather, the employees will receive a new
basic pay rate computed by the locality pay factor for their area. A
full locality adjustment will then be added to the new basic pay rate.
Adverse action provisions will not apply to the conversion process, as
there will be no change to total salary. New hires, including employees
transferring from other Federal activities, will be converted into the
demonstration project in the career path and at the level and pay
consistent with the duties
[[Page 14100]]
and responsibilities of the position and individual qualifications.
2. Within-Grade Increase (WGI) Buy-In
On the date that employees are converted to the project pay plans,
they will be given a prorated permanent increase in pay equal to the
earned (time spent in step) portion of their next Within Grade Increase
(WGI) based on the value of the WGI at the time of conversion.
Employees at step 10 or receiving a retained rate will not be eligible
for the increase.
3. Career Ladder Positions
An employee on a career ladder position at the time of conversion
may maintain the same salary trajectory and full performance level as
covered under the general schedule pay system. Additionally, they may
be considered for accelerated compensation identified under the ACDP of
this FRN. Once an employee reaches the full performance pay band,
control points will apply as outlined in NAVFAC EXWC IOPs.
4. Transition Equity
During the first 12 months following conversion, employees may
receive pay increases for non-competitive promotion equivalents when
the grade level of the promotion is encompassed within the same pay
band, the employee's performance warrants the promotion and promotions
would have otherwise occurred during that period. Employees who receive
an in-pay band level promotion at the time of conversion will not
receive a prorated step increase equivalent. Employees will not be
eligible for a basic pay increase if their current rating of record is
unacceptable at the time of conversion. The decision to grant a pay
equity adjustment is at the sole discretion of management and is not
subject to employee appeal procedures.
5. Conversion From Other Personnel Systems
Employees who enter this demonstration project from other personnel
systems (e.g., Defense Civilian Intelligence Personnel System, DoD
Civilian Acquisition Workforce Demonstration Project, or other STRLs)
due to a reorganization, mandatory conversion, Base Closure and
Realignment Commission decision, or other directed action will be
converted into the NAVFAC EXWC personnel demonstration project via
movement of their positions using the appropriate Nature of Action
Code. If applicable, a WGI buy-in may also be applied. The employee's
position will be classified based upon the position classification
criteria under the NAVFAC EXWC IOP and their pay upon conversion,
maintained under applicable pay setting rules.
6. Initial Probationary Period
Employees who have completed an initial probationary period prior
to conversion to the NAVFAC EXWC personnel demonstration project plan
will not be required to serve another probationary period. NAVFAC EXWC
will have a two-year probationary period. Employees who are still
serving an initial probationary period upon conversion from GS to the
demonstration project will receive credit for probationary service to
date; however, they must serve any remaining probationary time to
complete a full two-year probationary period.
7. Supervisory Probationary Period
NAVFAC EXWC will implement an extended supervisory probationary
period. The probationary period for new supervisors will be two years,
rather than the normal one-year probationary period specified by 5 CFR
part 315. Except for the increased length, supervisory probationary
periods will be made consistent with 5 CFR part 315. Employees who have
already successfully completed an initial one-year probationary period
for supervisory positions will not be required to complete a two-year
probationary period for initial appointment to a supervisory position.
Employees who are serving an initial supervisory probationary period
upon conversion into this demonstration project will serve the time
remaining on their one-year supervisory probationary period. If the
decision is made to return the employee to a non-supervisory position
for reasons related to supervisory performance and/or conduct, the
employee will be returned to a comparable position of no lower base pay
that the position from which promoted or reassigned immediately prior
to the supervisory assignment.
B. Movement Out of the Demonstration Project
1. Termination of Coverage Under the Demonstration Project Pay Plans
In the event employees' coverage under the NAVFAC EXWC STRL
personnel demonstration project pay plans is terminated, employees move
with their position to another system applicable to NAVFAC EXWC STRL
employees. The grade of their demonstration project position in the new
system will be based upon the position classification criteria of the
gaining system. Employees may be eligible for pay retention under 5 CFR
part 536 when converted to their positions classified under the new
system, if applicable.
2. Determining GS Equivalent Grade and Pay When an Employee Exits the
Demonstration Project
If a demonstration project employee is moving to a GS or other pay
system position, the following procedures will be used to translate the
employee's personnel demonstration project pay band to a GS-equivalent
grade and the employee's project base pay to the GS-equivalent rate of
pay for pay setting purposes. The equivalent GS grade and GS rate of
pay must be determined before movement out of the personnel
demonstration project and any accompanying geographic movement,
promotion, or other simultaneous action. For lateral reassignments, the
equivalent GS grade and rate will become the employee's converted GS
grade and rate after leaving the demonstration project (before any
other action). For transfers, promotions, and other actions, the
converted GS grade and rate will be used in applying any 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 converted grade and rate
were actually in effect immediately before the employee left the
demonstration project.
3. Equivalent GS-Grade-Setting Provisions
An employee in a pay band corresponding to a single GS grade is
provided that grade as the GS equivalent grade. An employee in a pay
band corresponding to two or more grades is determined to have a GS
equivalent grade corresponding to one of those grades according to the
following rules:
The employee's adjusted base pay under the demonstration project
(including any locality payment or staffing supplement) is compared
with step four rates in the highest applicable GS rate range. For this
purpose, a GS rate range includes a rate in:
(1) The GS base schedule;
(2) The locality rate schedule for the locality pay area in which
the position is located
(3) 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:
(1) If the employee's adjusted base pay under the demonstration
project
[[Page 14101]]
equals or exceeds the applicable step four adjusted base pay rate of
the highest GS grade in the band, the employee is converted to that
grade;
(2) If the employee's adjusted base pay under the demonstration
project is lower than the applicable step four adjusted base pay rate
of the highest grade, the adjusted base pay under the demonstration
project is compared with the step four adjusted base pay rate of the
second highest grade in the employee's pay band. If the employee's
adjusted base pay under the demonstration project equals or exceeds the
step four adjusted base pay rate of the second highest grade, the
employee is converted to that grade;
(3) This process is repeated for each successively lower grade in
the band until a grade is found in which the employee's adjusted base
pay under the demonstration project rate equals or exceeds the
applicable step four adjusted base pay rate of the grade. The employee
is then converted at that grade. If the employee's adjusted base pay is
below the step four adjusted base pay rate of the lowest grade in the
band, the employee is converted to the lowest grade; and
(4) An exception whereby an employee will not be provided a lower
grade than the grade held by the employee immediately preceding a
conversion, lateral reassignment, or lateral transfer into the project,
unless since that time the employee has either undergone a reduction in
pay band or a reduction within the same pay band due to unacceptable
performance. This provision does not apply to voluntary movement out of
the demonstration project.
4. Equivalent GS-Rate-of-Pay-Setting Provisions
An employee's pay within the converted GS grade is set by
converting the employee's personnel demonstration project rates of pay
to GS rates of pay in accordance with the following rules:
(A) 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.
(B) An employee's adjusted base pay under the demonstration project
(i.e., including any locality payment or staffing supplement) is
converted to a GS adjusted base pay rate on the highest applicable GS
rate range for the converted GS grade. For this purpose, a GS rate
range includes a rate range in:
(1) The GS base schedule.
(2) An applicable locality rate schedule.
(3) An applicable special rate schedule.
(C) If the highest applicable GS rate range is a locality pay rate
range, the employee's adjusted base pay under the demonstration project
is converted to a GS locality rate of pay. If this rate falls between
two steps in the locality-adjusted schedule, the rate must be set at
the higher step. The converted GS unadjusted rate of base pay would be
the GS base rate corresponding to the converted GS locality rate (i.e.,
same step position).
(D) If the highest applicable GS rate range is a special rate
range, the employee's adjusted base pay under the demonstration project
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 base pay will be the GS rate
corresponding to the converted special rate (i.e., same step position).
C. Implementation Training
Training to promote understanding of the broad concepts and finer
details is critical to successfully implement and execute this project.
A new pay banding schema and performance management system both
represent significant cultural change to the organization.
Training is tailored to address employee concerns and encourage
comprehensive understanding of the demonstration project. Training is
required prior to implementation and at various times during the life
of the demonstration project. The training program includes modules
tailored for employees, supervisors, senior managers, and
administrative staff. Typical modules are:
(1) An overview of the demonstration project personnel system;
(2) How employees are converted into and out of the system;
(3) Pay banding;
(4) The mission aligned objectives and performance compensation
system;
(5) Defining mission aligned performance objectives;
(6) How weights may be used with the mission aligned performance
objectives;
(7) Assessing performance--giving feedback;
(8) New position descriptions; and
(9) Demonstration project administration and formal evaluation.
Various types of training including videos, on-line tutorials, and
train-the-trainer concepts will be used.
V. Project Duration
Section 342 of the NDAA for FY 1995 (Pub. L. 103-337) does not
require a mandatory expiration date for this demonstration project. The
project evaluation plan addresses how each flexibility will be
comprehensively evaluated for at least the first five years of the
demonstration project. Changes and modifications to the interventions
will be made using the provisions of DoDI 1400.37, or applicable
superseding instructions.
VI. Evaluation Plan
A. Overview
Chapter 47 of 5 U.S.C. requires that an evaluation be performed to
measure the effectiveness of the demonstration project and its impact
on improving public management. A comprehensive evaluation plan for the
entire demonstration program, originally covering 24 DoD laboratories,
was developed by a joint OPM/DoD Evaluation Committee in 1995. This
plan was submitted to the Office of Defense Research & Engineering and
was subsequently approved. The main purpose of the evaluation is to
determine whether the waivers granted result in a more effective
personnel system and improvements in ultimate outcomes (i.e.,
organizational effectiveness, mission accomplishment, and customer
satisfaction). That plan, while useful, is dated and does not fully
afford the laboratories the ability to evaluate all aspects of the
demonstration project in a way that fully facilitates assessment and
effective modification based on actionable data. Therefore, the STRL
Technical Director will conduct an internal evaluation of the STRL
Personnel Demonstration Program and will ensure USD(R&E) evaluation
requirements are met in addition to applying knowledge gained from
other DoD laboratories and their evaluations to ensure a timely, useful
evaluation of the demonstration project.
B. Data Collection To Support Evaluation
The ultimate outcomes sought are improved organizational
effectiveness, mission accomplishment and customer satisfaction.
However, the main focus of the evaluation will be on intermediate
outcomes, i.e., the results of the authorized personnel system changes,
which are expected to contribute to the desired goals and benefits
identified Sections II.A and II.C. Data from several sources will be
used in the evaluation. Information from existing management
information systems and from personnel office records will be
supplemented with perceptual survey data from employees to assess the
effectiveness and perception of the project. The multiple sources of
data collection will
[[Page 14102]]
provide a more complete picture as to how the flexibilities are
working. The information gathered from one source will serve to
validate information obtained through another source. The confidence of
overall findings will be strengthened as the different collection
methods substantiate each other. Both quantitative and qualitative data
will be used when evaluating outcomes. The following data will be
collected:
(1) Workforce data (advanced degrees, etc.);
(2) Personnel office data (hiring actions, time to hire, retention,
etc.);
(3) Employee attitude surveys;
(4) Structured interviews and focus group data;
(5) Comparison of desired results from the flexibilities
implemented with actual results achieved;
(6) Customer satisfaction surveys;
(7) Core measures of laboratory effectiveness; and
(8) Any additional data requested by Director, Laboratories and
Personnel Office.
The evaluation effort will consist of two phases, formative and
summative evaluation, covering at least five years to permit inter- and
intra-organizational estimates of effectiveness. The formative
evaluation phase will include baseline data collection and analysis,
implementation evaluation and interim assessments. The formal reports
and interim assessments will provide information on the accuracy of
project operation and current information on impact of the project on
veterans and protected groups, Merit System Principles, and Prohibited
Personnel Practices. The summative evaluation will focus on an overall
assessment of project outcomes after five years. The final report will
provide information on how well the HR system changes have achieved the
desired goals, which flexibilities were most effective and whether the
results can be generalized to other Federal installations.
VII. Demonstration Project Costs
NAVFAC EXWC will model its demonstration project on existing
demonstration projects but must assume some expanded project costs.
Current cost estimates associated with implementing the demonstration
project are shown in Figure 3. These include possible automation of
training and project evaluation systems. The automation and training
costs are startup costs. Transition costs are one-time costs. Costs for
project evaluation will be ongoing for at least five years.
[GRAPHIC] [TIFF OMITTED] TN12MR21.002
VIII. Management and Oversight
A. Project Management With Automation
One of the major goals of the demonstration project is to
streamline the personnel processes to increase cost effectiveness.
Automation should play an integral role in achieving that goal. Without
the necessary automation to support the flexibilities proposed for the
demonstration project, optimal cost benefit may not 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 DoN and DoD level
(in the form of changes to the Defense Civilian Personnel Data System
(DCPDS) or successor DoD personnel system) to facilitate processing and
reporting of demonstration project personnel actions and may be
ultimately required by the command to assist in processing a variety of
personnel-related actions in order to facilitate management processes
and decision making.
DCPDS is the DoD's authoritative personnel data system and program
of record and as such, DCPDS or its successor system will be the system
of choice for the STRL labs. The detailed specifications for required
system changes will be provided in the System Change Request (SCR),
Form 804, concurrent with submission of this document.
B. Oversight
Oversight will be carried out by the command's Senior Leadership,
composed of the Technical Director and Commanding Officer. The
Technical Director and Commanding Officer will be assisted initially by
the NAVFAC EXWC STRL Demonstration Project Implementation Team, and
once established, by the NAVFAC EXWC STRL Policy Board (ESPB).
1. Personnel Administration
All personnel laws, regulations, and guidelines not waived by this
plan will remain in effect. Basic employee rights will be safeguarded
and merit system principles will be maintained. Except where
specifically waived or modified in this plan, adverse action procedures
under 5 CFR part 752 remain unchanged.
[[Page 14103]]
2. Modifications
Many aspects of a demonstration project are experimental.
Modifications may be made from time to time as experience is gained,
results are analyzed and conclusions are reached on how the new system
is working. Modifications will be made in accordance with the
provisions of DoDI 1400.37, or applicable superseding instructions.
IX. Required Waivers to Laws and Regulations
Public Law 106-398 gave the DoD the authority to experiment with
several personnel management innovations. In addition to the
authorities granted by the law, the following are waivers of law and
regulation that will be necessary for implementation of the
demonstration project. In due course, additional laws and regulations
may be identified for waiver request. The following waivers and
adaptations of certain Title 5 U.S.C. and 5 CFR provisions are required
only to the extent that these statutory 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 applying, adopting or incorporating any law or OPM, DoD,
or DoN regulation enacted, adopted, or amended after the effective date
of this demonstration project.
A. Waivers to Title 5, United States Code
Chapter 5, section 552a: Records. Waived 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 3104: Employment of Specially Qualified
Scientific and Professional Personnel. Waived to allow SSTM authority
as described in this FRN and 79 FR 43722;
Chapter 31, section 3132: The Senior Executive Service: Definitions
and Exclusions. Waived to allow SSTMs.
Chapter 33, Subchapter I: Examination, Certification, and
Appointment;
Waived except for sections 3302 and 3328 to allow for direct hire
authority for scientists and engineers with advanced degrees for
professional positions, and bachelor degree candidates for scientific
and engineering positions.
Waived for veteran candidates for scientific, technical,
engineering and mathematics positions, including technician positions.
Also waived to the extent to allow employees appointed on a Flexible
Length or Renewable Term Technical Appointment to apply for federal
positions as status candidates.
Chapter 33, section 3308: Competitive Service; Examinations;
Educational Requirements Prohibited. This section is waived with
respect to the scholastic achievement appointment authority.
Chapter 33, section 3321: Competitive Service; Probationary Period.
This section is waived only to the extent necessary to replace
``grade'' with ``pay band'' and to allow for probationary periods of
two years.
Chapter 33, section 3324: Appointments to Positions Classified
Above GS-15; and 5 U.S.C. 3325, Appointments to Scientific and
Professional Positions. Waived in its entirety.
Chapter 33, section 3327: Civil service employment information.
Waived to the extent necessary to allow public notice other than
USAJobs for the Distinguished Scholastic Appointment Authority
described in this FRN.
Chapter 33, section 3330: Government-wide List of Vacant Positions.
Waived to the extent necessary to allow public notice other than
USAJobs for the Distinguished Scholastic Appointment Authority
described in this FRN.
Chapter 33, section 3341: Details. Waived in its entirety, to
extend the time limits for details.
Chapter 35, section 3522: Agency VSIP Plans; Approval. Waived to
remove the requirement to submit a plan to OPM prior to obligating any
resources for voluntary separation incentive payments.
Chapter 35, section 3523(b)(3): Authority to Provide Voluntary
Separation Incentive Payments. As provided for in 82 FR 43339,
September 15, 2017, waived to remove the prescribed method of incentive
payment calculation and the $25,000 incentive limit. Allows Technical
Director to determine amount of incentive paid to employees under the
workforce shaping pilot program voluntary early retirement and
separation incentive payment authorities within the limit prescribed
herein.
Chapter 41, section 4107(a)(2): Academic Degree Training. Waived in
its entirety.
Chapter 41, section 4108: Employee Agreements; Service After
Training. Waived to the extent necessary to:
(1) Provide that the employee's service obligation is to NAVFAC
EXWC for the period of the required service;
(2) Permit the Technical Director to waive in whole or in part a
right of recovery; and
Require an employee in the student educational employment program
who has received tuition assistance to sign a service agreement up to
three times the length of the training.
Chapter 43, section 4301-4305: Related to Performance Appraisal.
Waived to the extent necessary to allow provisions of the performance
compensation system as described in this FRN. Replace ``grade'' with
``pay band''; does not apply to employees reduced in pay band without a
reduction in pay; allows for removal for unacceptable performance
within two years from the beginning of the performance improvement
period; OPM responsibilities to the demonstration project are waived.
Chapter 45, section 4502: Limitation of Cash Awards to Ten-Thousand
Dollars. Waived to allow Technical Director to award up to $25,000 with
the same level of authority as the Secretary of Defense to grant cash
awards. The requirement for certification and approval of the cash
awards by OPM is not required. All other provisions of section 4502
apply.
Chapter 51, section 5101-5112: Purpose, Definitions, Basis,
Classification of Positions, Review, Authority. Waived to the extent
that:
(1) White collar employees will be covered by broad banding;
(2) Allow classification provisions described in this FRN and to
allow for SSTM positions;
(3) Classification appeals will be decided by the Technical
Director with final appeal to the DoD Appellate level.
Chapter 53, sections 5301-5304 and 5306-5307: Related to Pay
Comparability System and General Schedule Pay Rates. Waived to the
extent necessary to allow demonstration project employees, including
SSTM employees, to be treated as GS employees, and to allow base rates
of pay under the demonstration project to be treated as scheduled rates
of pay. SSTM pay will not exceed EX-IV and locality adjusted SSTM rates
will not exceed EX III.
Chapter 53, section 5305: Special Pay Authority. Waived in its
entirety to allow for staffing supplements.
Chapter 53, section 5331-5336: General Schedule Pay Rates. Waived
in entirety.
Chapter 53, sections 5361-5366: Grade and Pay Retention. Waived to
the extent necessary to:
(1) Replace ``grade'' with ``pay band;''
(2) Allow demonstration project employees to be treated as GS
employees;
(3) Provide that an employee on pay retention whose rating of
record is
[[Page 14104]]
``Unacceptable'' is not entitled to 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.
(4) Provided that pay retention does not apply to reduction in base
pay due solely to the reallocation of demonstration project pay rates
in the implementation of a staffing supplement;
(5) Allow no provision of grade/pay band retention under this
demonstration project; and
(6) Allow demonstration project employees receiving a staffing
supplement to retain.
the adjusted base pay if the staffing supplement is discontinued or
reduced. This waiver may apply to Scientific and Professional (ST),
Senior Level (SL) and SSTM employees only if they move to a GS-
equivalent position within the demonstration project under conditions
that trigger entitlement to pay retention.
Chapter 55, section 5542(a)(1) and (2): Overtime Rates;
Computation. These sections are adapted only to the extent necessary to
provide that the GS-10 minimum special rate (if any) for the special
rate category to which a project employee belongs is deemed to be the
``applicable special rate'' in applying the pay cap provisions in 5
U.S.C. 5542.
Chapter 55, section 5545(d): Related to Hazardous Duty Premium Pay.
Waived only to the extent necessary to allow demonstration project
employees to be treated as GS employees.
Chapter 55, section 5547(a) and (b): Limitation on Premium Pay.
These sections are adapted only to the extent necessary to provide that
the GS-15 maximum special rate (if any) for the special rate category
to which a project employee belongs is deemed to be the ``applicable
special rate'' in applying the pay cap provisions in 5 U.S.C. 5547.
Chapter 57, sections 5753, 5754, and 5755: Related to Recruitment,
Relocation, Retention Payments, and Supervisory Differential. These
sections waived to the extent necessary to allow:
(1) Employees and positions under the demonstration project to be
treated as employees and positions under the GS;
(2) That management may offer a bonus to incentivize geographic
mobility to employees in a student educational employment program; and
(3) To allow provisions of the retention counteroffer and
incentives as described in this FRN. Also to the extent necessary, to
allow SSTMs to receive pay retention and supervisory differentials as
described in this FRN and 79 FR 43722.
Chapter 59, section 5941: Allowances Based on Living Costs and
Conditions of Environment; employees stationed outside continental
United States or Alaska. Waived to the extent necessary to provide that
cost-of-living-adjustment (COLA)'s paid to employees under the
demonstration project are paid in accordance with regulations
prescribed by the President (as delegated to OPM).
Chapter 75, section 7512(3) and (4): Adverse Actions. Waived to the
extent necessary to:
Replace ``grade'' with ``pay band;''
(1) Exclude reductions in pay band that are not accompanied by a
reduction in pay;
(2) Exclude conversions from GS special rates to demonstration
project pay and reallocations of demonstration project pay rates within
special rate extensions to locality adjusted pay rates due to
promotions of general or locality pay increases, as long as the
employee's total rate of pay is not reduced; and
(3) Exclude reductions in base pay due solely to the operations of
the pay setting rules for geographic movement within the demonstration
project; and
(4) Exclude reduction in pay due to the removal of a supervisory or
team leader pay adjustment upon voluntary movement to a non-
supervisory, or non-team leader position.
Chapter 99, section 9902(f): Related to Voluntary Separation
Incentive Payments. Waived to the extent necessary to utilize the
authorities authorized by Public Law 114-92 and detailed in 82 FR
43339.
B. Waivers to Title 5, Code of Federal Regulations
Part 210, section 210.102(b)(12): Definitions, Reassignment. Waived
to the extent necessary to allow assigning an employee, without a
position change, to any work falling within their general level
descriptor. Waived to the extent necessary to allow tracking of such
assignments as a ``realignment.''
Part 300-330: Employment (General). Other than Subpart G of 300.
Waived to the extent necessary to allow provisions of the direct hire
authorities as described in 79 FR 43722 and 82 FR 29280.
Part 300, section 300.601-300.605: Time-in-Grade Requirements.
Waived to eliminate time-in-grade restrictions.
Part 315, section 315.901 and 315.907: Related to Supervisory
Probationary Periods. This waiver applies to the extent necessary to:
(1) Replace ``grade'' with ``pay band'' or ``broad band;''
(2) Allow NAVFAC EXWC to establish the length of supervisory
probationary period; and
(3) Allow time spent in a temporary position to be creditable
toward completion of a supervisory probationary period.
Part 316, sections 316.301, 316.303, and 316.304: Term Employment.
These sections are waived to the extent necessary to allow modified
term appointments and Flexible Length and Renewable Term Technical
Appointments as described in this FRN.
Part 330, section 330.103-330.105: Requirement to Notify OPM.
Waived to the extent necessary to allow the STRL to publish competitive
announcements outside of USAJobs.
Part 332 and 335: Related to Competitive Examination. 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.
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 338, section 338.301: Competitive Service Appointment. Waived
to allow for Distinguished Scholastic Achievement Appointment grade
point average requirements as described in this FRN.
Part 359, section 359.705: Related to SES Pay. Waived to allow
demonstration project rules governing pay retention to apply to a
former SES placed on an SSTM position.
Part 410, section 410.308(a) and (c): Related to Degree Programs.
Waived to allow the command to pay for all courses related to an
academic degree program approved by the Technical Director.
Part 410, section 410.309: Agreements to Continue in Service.
Waived to the extent necessary to allow the Technical Director to
determine requirements related to continued service agreements,
including employees under the Student Educational Employment Program
who have received tuition assistance.
Part 430, Subpart B: Performance Appraisal for General Schedule,
Prevailing Rate and Certain Other Employees. Waived to the extent
necessary to allow the performance appraisal program as described in
this FRN. Section 430.208(a) (1) and (2), waived to allow presumptive
ratings for new employees hired less than 90 days before the end of the
appraisal cycle, or for other situations not providing adequate time
for an appraisal.
Part 432: Performance Based Reduction-in-grade and Removal
[[Page 14105]]
Actions. Replace ``grade'' with ``pay band.'' Modified to the extent
that an employee may be removed, reduced in pay band level with a
reduction in pay, reduced in pay without a reduction in pay band level
and reduced in pay band level without a reduction in pay based on
unacceptable performance. Also, modified to delete reference to
critical element and to allow removal for unacceptable performance with
two years from the beginning of a performance improvement period. For
employees who are reduced in pay band level without a reduction in pay,
sections 432.105 and 432.106(a) do not apply.
Part 451, section 451.106(b): Agency Responsibilities. Waived to
allow the Technical Director to award up to $25,000 with the same level
of authority as the Secretary of Defense to grant a cash award. The
requirement for certification and approval of cash awards by OPM is not
required. All other provisions of 5 CFR 451.106 apply.
Part 511, Subpart A, B and F: Classification Under the General
Schedule. Waived to the extent necessary to allow classification
provisions outlined in this FRN to include the list of issues that are
neither appealable nor reviewable, the assignment of series under the
project plan to appropriate career paths; and to allow classification
appeals to be decided by the Technical Director with final appeal to
the DoD Appellate level.
Part 530, Subpart C: Special Rate Schedules for Recruitment and
Retention. Waived in its entirety to allow for staffing supplements.
Part 531, Subparts B, D, and E: Determining the Rate of Basic Pay,
Within-Grade Increases and Quality Step Increases. Waived in its
entirety.
Part 531, Subpart F: Locality-Based Comparability Adjustments. This
waiver applies only to the extent necessary to allow:
(1) Demonstration project employees covered by broad banding to be
treated as GS employees;
(2) Basic rates of pay under the demonstration project to be
treated as scheduled annual rates of pay; and
(3) SSTM employees to be treated as GS employees and basic rates of
pay under the SSTM to be treated as scheduled annual rates of pay. This
waiver does not apply to FWS employees.
Part 531, section 531.604(b)(4): Determining an employee's locality
rate: Waived (rounding rule) in its entirety.
Part 536: Grade and Pay Retention: Waived to the extent necessary
to:
(1) Replace ``grade'' with ``pay band;''
(2) Provide that pay retention provisions do not apply to
conversions from GS special rates to demonstration project pay, as long
as total pay is not reduced, and to movement from a supervisory
position to a non-supervisory position, as long as total pay is not
reduced;
(3) Allow demonstration project employees to be treated as GS
employees;
(4) Provide that pay retention provisions do not apply to movements
to a lower pay band as a result of not receiving the general increase
due to an annual performance rating of ``Unacceptable;''
(5) Provide that an employee on pay retention whose rating of
record is ``Unacceptable'' is not entitled to 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;
(6) Allow no provision of grade/pay band retention under this
demonstration project;
(7) Provide that pay retention does not apply to reduction in base
pay due solely to the reallocation of demonstration project pay rates
in the implementation of a staffing supplement; and
(8) Allow demonstration project employees receiving a staffing
supplement to retain the adjusted base pay if the staffing supplement
is discontinued or reduced. This waiver may apply to Scientific and
Professional (ST), Senior Level (SL) and SSTM employees only if they
move to a GS-equivalent position within the demonstration project under
conditions that trigger entitlement to pay retention.
Part 550, section 550.113(a): Computation of Overtime Pay. This
section is adapted only to the extent necessary to provide that the GS-
10 minimum special rate (if any) for the special rate category to which
a project employee belongs is deemed to be the ``applicable special
rate'' in applying the pay cap provisions in 5 U.S.C. 5542.
Part 550, section 550.703: Severance Pay, Definitions. Definition
of ``reasonable offer'' waived by replacing ``two grade or pay levels''
with ``one pay band'' and ``grade or pay level'' with ``pay band.''
Part 550, section 550.902: Definition of ``Employee'' Hazardous
Duty Pay Differential. Waived to the extent necessary to treat
demonstration project employees covered by broad banding as GS
employees.
Part 575, Subparts A, B, C, and D: Recruitment Bonuses, Relocation
Bonuses, Retention Allowances, and Supervisory Differentials. Waived
only to the extent necessary to allow:
(1) Employees and positions under the demonstration project covered
by broad banding to be treated as employees and positions under the GS;
(2) Relocation incentives to new employees in the student
educational employment program whose worksite is in a different
geographic location than that of the college enrolled;
(3) SSTMs to receive supervisory pay differentials as described in
this FRN and 79 FR 43726; and
(4) To allow provisions of the retention counteroffer and
incentives as described in this FRN.
Part 591, Subpart B: Cost-of-Living Allowances and Post
Differential-Non Foreign Areas. Waived to the extent necessary to allow
demonstration project employees covered by broad banding to be treated
as employees under the GS.
Part 752, sections 752.201, 752.301 and 752.401: Principal
Statutory Requirements and Coverage. Waived to the extent necessary to:
(1) Exclude reductions in pay band not accompanied by a reduction
in pay;
(2) Replace ``grade'' with ``pay band;''
(3) The extent necessary to exclude conversions from a GS special
rate to demonstration project pay that do not result in a reduction in
the employee's total rate of pay; and
(4) The extent necessary to provide that adverse action provisions
do not apply to: (a) Conversions from GS special rates to demonstration
project pay; (b) reallocations of demonstration project pay rates
within special rate extensions to locality adjusted pay rates due to
promotions or general or locality pay increases, as long as the
employee's total rate of pay is not reduced; and (c) reductions in base
pay due solely to the operation of the pay setting rules for geographic
movement within the demonstration project.
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Dated: March 9, 2021.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2021-05172 Filed 3-11-21; 8:45 am]
BILLING CODE 5001-06-C