[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Notices]
[Pages 72462-72465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25690]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Department of Defense (DoD) Science and Technology Reinvention 
Laboratory (STRL) Personnel Demonstration Project

AGENCY: Office of the Under Secretary of Defense for Research and 
Engineering (OUSD(R&E)), DoD.

ACTION: This notice provides a new authority to all STRL Personnel 
Demonstration Projects.

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SUMMARY: STRLs with published demonstration project plans may implement 
the flexibility of a supplemental pay provision based on criteria as 
defined by the STRL director.

DATES: Implementation of this Federal Register notice will begin no 
earlier than November 25, 2022.

FOR FURTHER INFORMATION CONTACT: 
    Department of Defense:
     Office of Under Secretary of Defense (Research and 
Engineering), DoD Laboratories, Federally Funded Research and 
Development Centers, and University-Affiliated Research Centers Office: 
Dr. James Petro, 571-286-6265, [email protected].
    Department of the Air Force:
     Air Force Research Laboratory: Ms. Rosalyn Jones-Byrd, 
937-656-9747, [email protected].
     Joint Warfare Analysis Center: Ms. Amy Balmaz, 540-653-
8598, [email protected].
    Department of the Army:
     Army Futures Command: Ms. Marlowe Richmond, 512-726-4397, 
[email protected].
     Army Research Institute for the Behavioral and Social 
Sciences: Dr. Scott Shadrick, 254-288-3800, 
[email protected].
     Combat Capabilities Development Command's Armaments 
Center: Mr. Mike Nicotra, 973-724-7764, [email protected].
     Combat Capabilities Development Command's Army Research 
Laboratory: Mr. Christopher Tahaney, 410-278-9069, 
[email protected].
     Combat Capabilities Development Command's Aviation and 
Missile Center: Ms. Nancy Salmon, 256-876-9647, 
[email protected].
     Combat Capabilities Development Command's Chemical 
Biological Center: Ms. Patricia Milwicz, 410-417-2343, 
[email protected].
     Combat Capabilities Development Command's Command, 
Control, Communications, Computers, Cyber, Intelligence, Surveillance, 
and Reconnaissance Center: Ms. Angela Clybourn, 443-395-2110, 
[email protected].
     Combat Capabilities Development Command's Ground Vehicle 
Systems Center: Ms. Jennifer Davis, 586-306-4166, 
[email protected].
     Combat Capabilities Development Command's Soldier Center: 
Ms. Joelle Montecalvo, 508-206-3421, [email protected].
     Engineer Research and Development Center: Ms. Patricia 
Sullivan, 601-634-3065, [email protected].
     Medical Research and Development Command: Ms. Linda Krout, 
301-619-7276, [email protected].
     Technical Center, Space, and Missile Defense Command: Dr. 
Chad Marshall, 256-955-5697, [email protected].
    Department of the Navy:
     Naval Air Warfare Center, Weapons Division and Aircraft 
Division: Mr. Richard Cracraft, 760-939-8115, 
[email protected].
     Naval Facilities Engineering Command Engineering and 
Expeditionary Warfare Center: Ms. Lori Leigh, 805-901-5917, 
[email protected].
     Naval Information Warfare Centers:
    [cir] Naval Information Warfare Center Atlantic: Mr. Michael 
Gagnon, 843-218-3871, [email protected].
    [cir] Naval Information Warfare Center Pacific: Ms. Angela Hanson, 
619-553-0833, [email protected].
     Naval Medical Research Center: Dr. Jill Phan, 301-319-
7645, [email protected].
     Naval Research Laboratory: Ms. Ginger Kisamore, 202-767-
3792, [email protected].
     Naval Sea Systems Command Warfare Centers: Ms. Diane 
Brown, 215-897-1619, [email protected].
     Office of Naval Research: Ms. Margaret J. Mitchell, 703-
588-2364, [email protected].

SUPPLEMENTARY INFORMATION:

1. Background

    Title 10 United States Code (U.S.C.) 4121 authorizes the Secretary 
of Defense, through the Office of the Under Secretary of Defense for 
Research and Engineering (OUSD(R&E)), to exercise the authorities 
granted to the Office of Personnel Management (OPM) under 5 U.S.C. 4703 
to conduct personnel demonstration projects at DoD laboratories 
designated as Science and Technology Reinvention Laboratories (STRLs). 
All STRLs authorized pursuant to 10 U.S.C. 4121 may use the provisions 
described in this Federal Register Notice (FRN). STRLs implementing 
these flexibilities must have an approved personnel demonstration 
project plan published in an FRN and fulfill any collective bargaining 
obligations. Each STRL will establish internal operating procedures as 
appropriate.
    The 21 current STRLs are:

 Air Force Research Laboratory
 Joint Warfare Analysis Center
 Army Futures Command
 Army Research Institute for the Behavioral and Social Sciences
 U.S. Army Combat Capabilities Development Command's Armaments 
Center
 U.S. Army Combat Capabilities Development Command's Army 
Research Laboratory
 U.S. Army Combat Capabilities Development Command's Aviation 
and Missile Center
 U.S. Army Combat Capabilities Development Command's Chemical 
Biological Center
 U.S. Army Combat Capabilities Development Command's Command,

[[Page 72463]]

Control, Communications, Computers, Cyber, Intelligence, Surveillance, 
and Reconnaissance Center
 U.S. Army Combat Capabilities Development Command's Ground 
Vehicle Systems Center
 U.S. Army Combat Capabilities Development Command's Soldier 
Center
 U.S. Army Engineer Research and Development Center
 U.S. Army Medical Research and Development Command
 U.S. Army Space and Missile Defense Command's Technical Center
 Naval Air Systems Command Warfare Centers
 Naval Facilities Engineering Command Systems Engineering and 
Expeditionary Warfare Center
 Naval Information Warfare Centers, Atlantic and Pacific
 Naval Medical Research Center
 Naval Research Laboratory
 Naval Sea Systems Command Warfare Centers
 Office of Naval Research

2. Summary of Comments

    On May 12, 2022, the Department of Defense published a notice (87 
FR 29134-29137) concerning this new flexibility, for a 30-day public 
comment period. The public comment period ended on June 13, 2022. One 
commenter posed several questions concerning safeguards to ensure 
equitable administration of the supplemental pay authority. 
Specifically, the commenter inquired about how supplemental pay 
determinations will be made, how employees will be notified about 
opportunities to receive such pay, and who will review and evaluate the 
appropriateness of the determinations. In addition, the commenter 
inquired about whether and how a disparate impact analysis would be 
conducted to determine whether the supplemental pay flexibility results 
in unintentional discrimination based on race, gender, age, or another 
protected category.
    In response, the Department notes that the criteria in Section 
II.A. concerning supplemental pay rate determinations are based on the 
criteria in 5 Code of Federal Regulations (CFR) 530.304. STRL directors 
will evaluate the need for establishing, increasing, decreasing, or 
discontinuing supplemental pay rate schedules, using these factors. The 
frequency and results of such evaluations will be documented in 
Internal Operating Procedures. As provided in the individual STRL 
personnel demonstration project plans and DoD instructions, STRL 
personnel demonstration projects are continually evaluated by external 
offices. Along with information about other STRL flexibilities, 
information about the supplemental pay flexibility will be collected 
and analyzed to determine whether it is a model personnel practice. In 
addition, each STRL may conduct internal evaluations to ensure its 
flexibilities are appropriately administered.
    Additional changes were made to clarify which positions within the 
STRL are eligible for use of this flexibility. Finally, the provision 
concerning treatment of supplemental pay as locality pay for purposes 
of determining basic pay was removed.

3. Overview

I. Introduction

A. Purpose

    Some STRLs have adopted supplemental pay flexibilities that are 
based on the OPM special salary rate tables that provide for higher 
salaries than the General Schedule (GS) tables. This supplemental pay 
flexibility permits STRLs to independently establish supplemental pay 
rates based on market conditions to help STRLs attract, recruit, and 
retain a high caliber workforce. Competing with private sector 
compensation is particularly challenging, especially in emerging 
mission areas such as hypersonics, autonomy, cybersecurity, and data 
science.

B. Required Waivers to Law and Regulation

    Waivers and adaptations of certain title 5 U.S.C. and title 5 CFR 
provisions are required only to the extent that these statutory and 
regulatory provisions limit or are inconsistent with the actions 
authorized under these demonstration projects. Title 10 U.S.C. 
4121(a)(5) states that the limitations on pay fixed by administrative 
action in 5 U.S.C. 5373 do not apply to the STRL demonstration project 
authority to prescribe salary schedules and other related benefits. 
Appendix A lists waivers needed to enact authorities described in this 
FRN. Nothing in this plan is intended to preclude the STRLs from 
adopting or incorporating any law or regulation enacted, adopted, or 
amended after the effective date of this FRN.

C. Participating Organizations and Employees

    All DoD laboratories designated as STRLs pursuant to 10 U.S.C. 
4121(b), as well as any additional laboratories designated as STRLs by 
the Secretary of Defense, through the USD(R&E), with approved personnel 
demonstration project plans published in FRNs may use the supplemental 
pay rate provisions described in this FRN. The supplemental pay 
flexibility may be applied to all STRL employees included within the 
personnel demonstration project pursuant to subsection (c) of 10 U.S.C. 
4121. It may be necessary to review written agreements with respect to 
the project, between the STRL and a labor organization which is 
accorded exclusive recognition under 5 U.S.C. 7101 et seq., to 
determine whether certain STRL employees (e.g., employees whose pay is 
set in accordance with 5 U.S.C. 5332 or the ``General Schedule'') are 
included in the project and are therefore eligible for supplemental pay 
using this authority. Prevailing rate employees (as defined by section 
5342(a)(2) of title 5 U.S.C. and senior executives (as defined by 
section 3132(a)(3) of such title) are not included within personnel 
demonstration projects and may not receive supplemental pay pursuant to 
this FRN.

II. Personnel System Changes

A. Description and Implementation

    STRL directors may establish supplemental pay rates to be paid bi-
weekly, as other pay, for those positions which warrant higher 
compensation than that provided by the established broadband salary 
ranges, STRL staffing supplements or differentials, or other 
recruitment or retention authorities. The STRL director may establish 
supplemental pay rates by occupational series, specialty, competency, 
broadband level, and/or geographical area. In establishing such rates, 
the STRL director may consider: rates of pay offered by non-Federal or 
other alternative pay system employers that are considerably higher 
than rates payable by the STRL; the remoteness of the area or location 
involved; the undesirability of the working conditions or nature of the 
work involved; evidence that the position is of such a specialized 
nature that very few candidates exist; numbers of existing vacant 
positions and the length of time vacant; numbers of employees who have 
voluntarily left positions; evidence to support a conclusion that 
recruitment or retention problems likely will develop (if such problems 
do not already exist) or will worsen; consideration of use of other pay 
flexibilities as well as the use of non-pay solutions; or any other 
circumstances the STRL director considers appropriate. Documentation of 
the determination will be maintained by the STRL.
    This supplemental pay is in addition to any other pay, such as 
locality-based comparability payments authorized

[[Page 72464]]

under 5 U.S.C. 5304 and may result in maximum salary above Level IV of 
the Executive Schedule but may not exceed Level I of the Executive 
Schedule.
    The STRL director has an ongoing responsibility to evaluate the 
need for continuing payment of the supplemental pay and shall terminate 
or reduce the amount if conditions warrant. Conditions to be considered 
include: changes in labor-market factors; whether the need for the 
services or skills of the employee has decreased such that it is no 
longer necessary to incentivize employee recruitment or retention; and 
budgetary considerations. The reduction or termination of the payment 
is not considered an adverse action and may not be appealed or grieved. 
The applicant or employee will sign a statement of understanding 
outlining that the supplement may be reduced or terminated at any time 
based on conditions as determined by the STRL director. The 
documentation of the determination will be maintained by the STRL.

B. Evaluation

    Procedures for evaluating this authority will be incorporated into 
the STRL demonstration project evaluation processes conducted by the 
STRLs, OUSD(R&E), or Component headquarters, as appropriate.

C. Reports

    STRLs will track and provide information and data on the use of 
this authority when requested by the Component headquarters or 
OUSD(R&E).

III. Required Waivers to Law and Regulations

                 Appendix A--Waivers to Title 5, U.S.C.
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                                             Title 5, Code of Federal
      Title 5, United States Code                  Regulations
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5 U.S.C. 5303(f)--Annual Adjustments to  5 CFR Part 530, subpart B--
 pay schedules. Waived to allow pay       Aggregate Limitation on Pay.
 (disregarding comparability pay) to      Waived in its entirety to
 exceed level V of the Executive          allow STRL director to
 Schedule.                                authorize supplemental pay as
                                          defined in this FRN.
5 U.S.C. 5304(g)(1)--Locality-based      5 CFR Part 530.203--
 comparability payments. Waived to        Administration of aggregate
 allow pay in excess of level IV of the   limitation on pay. Waived to
 Executive Schedule.                      allow pay and allowances,
                                          differentials, bonuses,
                                          awards, or other similar cash
                                          payments, including
                                          supplemental pay in excess of
                                          level I of the Executive
                                          Schedule.
5 U.S.C. 5304(h)(1)(D)--Locality-based   5 CFR Part 531.606(a)--Maximum
 comparability payments. Waived to        limits on locality rates.
 allow pay in excess of level IV of the   Waived to allow pay in excess
 Executive Schedule.                      of level IV of the Executive
                                          Schedule.
5 U.S.C. 5305--Special Pay Authority.    5 CFR Part 531.606(b)(3)--
 Waived in its entirety as to allow the   Maximum limits on locality
 STRL director to establish               rates. Waived to allow pay in
 supplemental pay and to allow pay in     excess of level IV of the
 excess of level IV of the Executive      Executive Schedule.
 Schedule.
5 U.S.C. 5307--Limitation on certain     5 CFR Part 531.608--
 payments. Waived to allow pay and        Relationship of locality rates
 allowances,\, differentials, bonuses,    to other pay rates. Waived to
 awards, or other similar cash            apply the provisions of this
 payments, including supplemental pay     FRN.
 in excess of Level I of the Executive
 Schedule.
5 U.S.C 5373--Limitation on pay fixed    ...............................
 by administrative action. Waived to
 the extent necessary to allow basic
 pay and supplemental pay to exceed
 level IV of the Executive Schedule.
5 U.S.C. 5547--Limitation on premium     5 CFR Part 550.105--Premium Pay
 pay. Waived to the extent necessary to   Biweekly maximum earnings
 allow basic pay and supplemental pay     limitation. Waived to the
 to exceed level IV of the Executive      extent necessary to allow
 Schedule.                                basic pay and supplemental pay
                                          to exceed level IV of the
                                          Executive Schedule.
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        Appendix B--Authorized STRLs and Federal Register Notices
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                  STRL                       Federal Register notice
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Air Force Research Laboratory..........  61 FR 60400 amended by 75 FR
                                          53076.
Joint Warfare Analysis Center..........  85 FR 29414.
Army Futures Command...................  Not yet published.
Army Research Institute for Behavioral   85 FR 76038.
 and Social Sciences.
U.S. Army Combat Capabilities            76 FR 3744.
 Development Command's Armaments Center.
U.S. Army Combat Capabilities            63 FR 10680.
 Development Command's Army Research
 Laboratory.
U.S. Army Combat Capabilities            62 FR 34906 and 62 FR 34876
 Development Command's Aviation and       amended by 65 FR 53142 (AVRDEC
 Missile Center.                          and AMRDEC merged).
U.S. Army Combat Capabilities            74 FR 68936.
 Development Command's Chemical
 Biological Center.
U.S. Army Combat Capabilities            66 FR 54872.
 Development Command's Command,
 Control, Communications, Cyber,
 Intelligence, Surveillance, and
 Reconnaissance Center.
U.S. Army Combat Capabilities            76 FR 12508.
 Development Command's Ground Vehicle
 Systems Center.
U.S. Army Combat Capabilities            74 FR 68448.
 Development Command's Soldier Center.
U.S. Army Engineer Research and          63 FR 14580 amended by 65 FR
 Development Center.                      32135.
U.S. Army Medical Research and           63 FR 10440.
 Development Command.
U.S. Army Space and Missile Defense      85 FR 3339.
 Command's Technical Center.
Naval Air Systems Command Warfare        76 FR 8530.
 Centers.
Naval Facilities Engineering Command     86 FR 14084.
 Systems Engineering and Expeditionary
 Warfare Center.

[[Page 72465]]

 
Naval Information Warfare Centers,       76 FR 1924.
 Atlantic and Pacific.
Naval Medical Research Center..........  Not yet published.
Naval Research Laboratory..............  64 FR 33970.
Naval Sea Systems Command Warfare        62 FR 64050.
 Centers.
Office of Naval Research...............  75 FR 77380.
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    Dated: November 18, 2022.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2022-25690 Filed 11-23-22; 8:45 am]
BILLING CODE 5001-06-P