[Federal Register Volume 89, Number 52 (Friday, March 15, 2024)]
[Notices]
[Pages 18914-18921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05588]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DoD-2024-OS-0020]


Science and Technology Reinvention Laboratory (STRL) Personnel 
Demonstration Project Program

AGENCY: Under Secretary of Defense for Research and Engineering 
(USD(R&E)), Department of Defense (DoD).

ACTION: This notice provides new authorities to all Science and 
Technology Reinvention Laboratory (STRL) personnel demonstration (demo) 
projects.

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SUMMARY: STRLs may implement innovative approaches to attract and 
retain exceptional talent who are participating in Demo projects. The 
flexibilities described herein allow the STRLs to better manage their 
workforce by authorizing flexible extended temporary promotion and 
temporary reassignment for supervisory and team leader positions; a 
recruitment incentive in the form of time-off awards (time off from 
duty without loss of pay or charge to leave); retention counter-offers 
for high performing employees in scientific, technical or 
administrative positions; and certain awards management authorities for 
STRL directors. The flexibilities and procedures described herein are 
in addition to and do not supersede or cancel flexibilities described 
in previously published STRL FRNs.

DATES: This proposal may not be implemented until a 30-day comment 
period is provided, comments addressed, and a final Federal Register 
notice published. To be considered, written comments must be submitted 
on or before April 15, 2024.

ADDRESSES: You may submit comments, identified by docket number and 
title, by any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments. Comments should be sent 
electronically to the docket listed above.
    Mail: Department of Defense, Office of the Assistant to the 
Secretary of Defense for Privacy, Civil Liberties, and Transparency, 
Regulatory Directorate, 4800 Mark Center Drive, Attn: Mailbox 24, Suite 
08D09, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency 
name, docket number and title for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
internet at http://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: 
    Department of Defense:
     Office of the Under Secretary of Defense (Research and 
Engineering), Defense Research Enterprise 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 Armaments Center: 
Mr. Mike Nicotra, 973-724-7764, [email protected].
     Combat Capabilities Development Command Army Research 
Laboratory: Mr. Christopher Tahaney, 410-278-9069, 
[email protected].
     Combat Capabilities Development Command Aviation and 
Missile Center: Ms. Nancy Salmon, 256-876-9647, 
[email protected].
     Combat Capabilities Development Command Chemical 
Biological Center: Ms. Patricia Milwicz, 410-417-2343, 
[email protected].
     Combat Capabilities Development Command Command, Control,

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Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center: Ms. Angela Clybourn, 443-395-2110, 
[email protected].
     Combat Capabilities Development Command Ground Vehicle 
Systems Center: Ms. Jennifer Davis, 586-306-4166, 
[email protected].
     Combat Capabilities Development Command Soldier Center: 
Ms. Joelle Montecalvo, 508-206-3421, [email protected]
     Engineer Research and Development Center: Dr. Lucy Priddy, 
601-415-7845, [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, 202-731-
8100, [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].
    Marine Corps:
     Marine Corps Tactical Systems Support Activity: Lissa 
Henriksen, 760-587-6893, [email protected].

SUPPLEMENTARY INFORMATION: 

1. Background

    Through the USD(R&E), the Secretary exercises the authorities 
granted to the Office of Personnel Management (OPM) under 5 United 
States Code (U.S.C.) 4703 to conduct personnel demonstration projects 
at DoD laboratories designated as STRLs. All STRLs authorized pursuant 
to 10 U.S.C. 4121 may use the provisions described in this FRN for 
employees participating in the Demo Project. STRLs implementing these 
flexibilities must have an approved personnel demonstration project 
plan published in an FRN and must fulfill any collective bargaining 
obligations. Each STRL will establish internal operating procedures 
(IOPs) as appropriate.
    The 22 current STRLs are:
     Air Force Research Laboratory
     Joint Warfare Analysis Center
     Army Futures Command
     Army Research Institute for the Behavioral and Social 
Sciences
     Combat Capabilities Development Command Armaments Center
     Combat Capabilities Development Command Army Research 
Laboratory
     Combat Capabilities Development Command Aviation and 
Missile Center
     Combat Capabilities Development Command Chemical 
Biological Center
     Combat Capabilities Development Command Command, Control, 
Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center
     Combat Capabilities Development Command Ground Vehicle 
Systems Center
     Combat Capabilities Development Command Soldier Center
     Engineer Research and Development Center
     Medical Research and Development Command
     Technical Center, US Army Space and Missile Defense 
Command
     Naval Air Systems Command Warfare Centers
     Naval Facilities Engineering Command 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
     Marine Corps Tactical Systems Support Activity

2. Overview

I. Introduction

A. Purpose

    This FRN provides new personnel management flexibilities designed 
to enable the STRL Directors to be more agile and competitive in 
attracting, hiring, and retaining world-class candidates in science, 
technology, engineering and mathematics (STEM) career fields and in 
career fields that directly support the STRL mission. Specifically, 
this notice provides a new approach to assigning employees to 
supervisory and team leader positions within the STRL Demo project by 
authorizing a time-limited, renewable temporary promotion and a 
renewable temporary reassignment authority; time-off awards as a 
recruitment incentive for employees to accept positions in the Demo 
project; retention counter-offers for high performing employees in 
scientific, technical or administrative positions within the STRL Demo 
project; and awards management authority for STRL Directors.
    The authority to offer time-limited supervisory and team leader 
positions to employees participating in the Demo project will enable 
STRL Directors to better manage their workforce by (1) taking 
individual career preferences into consideration; (2) increasing 
efforts in succession planning; (3) allowing for periodic assessments 
of the supervisory talent pool; (4) allowing for better utilization of 
supervisory and leadership skills and experience; (5) enhancing 
organizational planning; and (6) synchronizing timelines for 
supervisory and leadership continuity. Additionally, it provides 
greater flexibilities to employees by increasing flexibility in 
individual development and providing more pathways to developmental 
assignments to broaden and deepen their experiential base.
    The authority to provide time-off awards as a recruitment incentive 
to employees participating in the Demo project enables the STRLs to 
better compete with industry where time-off is often part of 
recruitment packages. Such an incentive may be especially attractive to 
candidates from outside of government who value time off and typically 
would not accumulate a significant balance of paid leave for some time.
    The authority to provide retention counteroffers to high performing 
employees participating in the Demo project in any career field, who 
have critical skills and present evidence of alternative employment 
opportunities with higher compensation, will enable the STRLs to 
continue to meet mission requirements by retaining key employees.
    The authority for STRL Directors to manage award funding for 
employees participating in the Demo project, consistent with the STRL's 
budget, will enable STRLs to fully utilize their contribution- or 
performance-based pay systems by providing timely award funding for pay 
pools which are often administered on different cycles than

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those applicable to employees who are not participating in a Demo 
project.

B. Required Waivers to Law and Regulation

    Waivers and adaptations of certain title 5, U.S.C. and title 5, 
Code of Federal Regulations (CFR) provisions are required only to the 
extent that these statutory and regulatory provisions limit or are 
inconsistent with the actions authorized under an approved STRL 
demonstration project. Appendix A lists waivers needed to enact 
authorities described in this FRN. Nothing in this plan is intended to 
preclude STRLs from adopting or incorporating any law or regulation 
enacted, adopted, or amended after the effective date of this FRN.

C. Problems With Present System

    Despite the authorities already available to STRLs, some 
laboratories still have difficulty recruiting and retaining supervisors 
or team leaders within the organization. STRLs need the ability to 
shape the mix of skills and expertise in order to position the most 
qualified personnel in a given position to meet new research and 
development missions. The problem with the traditional system is that 
it does not support flexibility in organizational and succession 
planning. Time-limited supervisory and team leader positions will 
enable management to periodically evaluate these positions, taking into 
consideration mission needs, as well as employee career development, 
and organizational succession planning. It will also offer experiential 
opportunities for employees interested in becoming supervisors and team 
leaders. This dynamic will support individual development, 
organizational planning, synchronizing timelines for supervisory/
leadership continuity, and calibrating career expectations vs. mission 
needs. Similar to the Flexible Extended Temporary Promotion Authority 
for ST and SSTM positions documented in the Air Force Research 
Laboratory FRN, 82 FR 38896, STRLs need the flexibility to offer 
temporary promotions and temporary reassignments not to exceed 5 years, 
with the ability to extend in not longer than 5-year increments, for 
all supervisory and team leader positions.
    STRLs need numerous flexible tools to use in their battle for 
talent. Current recruitment incentives involve monetary payments only 
and offer no means to provide additional paid time off from duty as a 
recruitment incentive. Providing a time-off award, instead of or in 
addition to other incentives, will enable STRLs to better compete for 
critical talent.
    Retaining critical talent is also a priority for STRLs. The 
retention incentive available under 5 CFR part 575 subpart C is limited 
to 25% of an employee's basic pay and requires documented analysis of 
employment trends and labor market factors; quality and availability of 
potential sources of employees; the success of recent efforts to 
recruit candidates; retention of similar employees; and other factors. 
This monetary limit and time-consuming process prevents STRLs from 
effectively countering recruitment offers from the private sector. 
Similar to the retention counteroffer for employees with critical 
scientific or technical skills documented in the Technical Center of 
the U.S. Army Space and Missile Defense Command (USASMDC) FRN, 84 FR 
49255, this retention counteroffer for all STRL employees participating 
in the Demo project, regardless of career field, will allow the STRLs 
to retain critical talent by quickly approving an increase to basic pay 
and/or an incentive up to 50% of an employee's basic pay in 
circumstances where employees with critical skills receive an offer of 
employment with higher compensation.
    Finally, the timing of DoD awards guidance is generally consistent 
with the Defense Performance Management and Appraisal Program which 
uses an assessment cycle that ends in the March/April timeframe. 
Because STRL performance and contribution-based systems often use 
different assessment cycles and issue special act and notable 
achievement awards during the first quarter of the fiscal year, 
independent authority to issue awards will promote greater efficiency 
in the administration of STRL Demo projects.

D. 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 (SECDEF), through the USD(R&E), with approved 
personnel demonstration project plans published in FRNs may use the 
provisions described in this FRN. Absent another statutory authority to 
provide these flexibilities, the provisions do not apply to employees 
who are not candidates for or incumbents of positions participating in 
the Demo projects authorized by 10 U.S.C. 4121, to include prevailing 
rate employees (as defined by 5 U.S.C. 5342(a)(2)) and senior 
executives (as defined by section 3132(a)(3) of such title). STRLs 
implementing these flexibilities must first fulfill any collective 
bargaining obligations.

II. Personnel System Changes

A. Description and Implementation

1. Flexible Temporary Assignments
    An STRL Director may approve flexible temporary promotions or 
reassignments to supervisory and team leader positions for not more 
than five years, with the ability to extend without limit in not more 
than five-year increments for candidates who are current Federal 
employees participating in the Demo project. The candidates must meet 
the OPM Qualification Standard for the position. The initial flexible 
temporary promotion must be made using competitive procedures. Prior to 
extending a temporary promotion or reassignment or making the action 
permanent, management will make a determination based on mission needs, 
employee career development, and organizational succession planning on 
whether the employee should continue in the position on a temporary or 
permanent basis. If not extended on a temporary basis or made 
permanent, the employee will return to the position held prior to the 
temporary assignment or to a position within the STRL comparable in 
duties and pay band to the position held before the assignment. Upon 
termination of the temporary promotion or reassignment, pay will be set 
in accordance with the STRL's applicable pay setting rules and internal 
operating procedures. To be converted to a permanent supervisory or 
team leader position, the employee must: (1) have been notified in 
writing at the time of the initial action of the possibility of the 
temporary assignment being made permanent at a later date; (2) served a 
minimum of one year of continuous service in the temporary position; 
and (3) have at least a successful or equivalent performance rating in 
any applicable supervisory/leadership performance element. STRLs will 
document their plans and processes in IOPs.
2. Authority To Provide Time-Off as a Recruitment Incentive
    An STRL Director may provide a newly hired or newly converted 
participant in the Demo project up to 80 hours of time-off from duty, 
without loss of pay or charge to leave, as a recruitment incentive, to 
be used within one year. This recruitment incentive will be processed 
in the same manner as a time-off award available under the authority in 
5 U.S.C. chapter 45, but it is not provided pursuant to that authority 
and is not subject to otherwise

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applicable limits on the use of that authority. The time-off provided 
as a recruitment incentive may not be converted to cash payment and is 
forfeited if not used within twelve months after it is posted to the 
employee's leave account. STRLs may require a service agreement when 
offering this recruitment incentive. STRLs will document in IOPs the 
criteria for determining the amount of paid time off that may be 
provided as a recruitment incentive.
3. Retention Counteroffers
    STRL Directors may offer a retention counteroffer to high 
performing employees participating in the Demo project, with critical 
scientific, technical or administrative skills, in any career field, 
who present credible evidence of an alternative employment opportunity 
with higher compensation. Such employees may be provided increased 
basic pay (up to the top of the pay band/cap within a 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 lump sum payment, count toward the Executive Level I 
aggregate limitation on pay consistent with 5 U.S.C. 5307 and 5 CFR 
part 530, subpart B. STRLs may require a service agreement when 
offering this retention counteroffer. Further details will be published 
in STRL IOPs.
4. STRL Award Management Authority
    STRL compensation strategies develop and foster a culture of 
recognition. Strategic use of awards and recognition throughout the 
year adds value to the STRLs and supports retention of high performing/
contributing employees. STRL Directors manage the workforce strength, 
structure, positions, and compensation without regard to any limitation 
on appointments, positions, or funding in a manner consistent with the 
budget available. STRL Directors will execute contribution/performance-
based payouts, awards and bonuses, and non-ratings-based awards and 
bonuses for the Demo workforce consistent with Demo project plans and 
available funds budgeted for that purpose. Unless directed or 
authorized by the USD(R&E), in coordination with the Under Secretary of 
Defense for Personnel and Readiness, DoD Components will not impose 
additional management limitations on the payments of contribution/
performance-based payouts, awards and bonuses, and non-ratings based 
awards and bonuses.

B. Evaluation

    Procedures for evaluating these authorities 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 
these authorities when requested by the Component headquarters or 
OUSD(R&E).

Appendix A: Required Waivers to Laws and Regulations

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Appendix B. Authorized STRLs and Federal Register Notices

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    Dated: March 12, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2024-05588 Filed 3-14-24; 8:45 am]
BILLING CODE 6001-FR-C