[Federal Register Volume 89, Number 99 (Tuesday, May 21, 2024)]
[Notices]
[Pages 44648-44652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11142]


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DEPARTMENT OF DEFENSE

Office of the Secretary

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


Science and Technology Reinvention Laboratory 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 Federal Register Notices (FRNs).

DATES: Implementation of this Federal Register notice will begin no 
earlier than May 21, 2024.

FOR FURTHER INFORMATION CONTACT: 
    Department of Defense:
     Office of the Under Secretary of Defense for Research and 
Engineering, Defense Research Enterprise: Dr. Jagadeesh Pamulapati, 
571-372-6372, [email protected].

[[Page 44649]]

    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: 
Ms. Pota Kripotos, 973-724-9165, [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, 
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. Sarah Palmer, 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. Kelly Mitchell, 508-206-3430, 
[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: Sharmeka Speights, 
619-553-6282, [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 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. Summary of Comments

    On March 15, 2024, the DoD published a notice (89 FR 18914-18921) 
concerning four new flexibilities, for a 30-day public comment period. 
The public comment period ended on April 15, 2024. One commenter 
commented on the flexibility to allow time-off awards as a recruitment 
incentive. Specifically, the commenter suggested that time-off awards 
be used as a retention incentive as well, allowing the STRL Director to 
use time-off in lieu of a bonus as part of the assessment system.
    In response, the Department notes that some STRLs currently allow 
for time-off as part of their assessment process and other STRLs could 
adopt that process if interested.

3. 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 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

[[Page 44650]]

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 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 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 Senior Scientific Technical Manager 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 five years, with the ability to extend in no longer then 
five-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 percent 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 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 percent 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, 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 no more 
than five-year increments for candidates who are current Federal 
employees participating

[[Page 44651]]

in the demo project. The candidates must meet the Office of Personnel 
Management 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 decide 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 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 12 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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                                             Title 5, Code of Federal
      Title 5, United States Code                  Regulations
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5 U.S.C. 45, subchapter 1--Awards for    5 CFR part 335, section
 Superior Accomplishments. Waived to      335.102(f)--Agency authority
 the extent necessary to allow the STRL   to promote, demote, or
 Director to implement the                reassign. Waived to the extent
 flexibilities in this Federal Register   necessary to allow extensions
 and provide paid time-off as a           of temporary promotions and
 recruitment incentive, provide           reassignments as described in
 retention and other incentive awards,    this Federal Register Notice.
 and provide contribution- and           5 CFR part 451, subpart A--
 performance-based payouts, as            Agency Awards. Waived to the
 described in this FRN.                   extent necessary to allow the
                                          STRL Director to implement the
                                          flexibilities in this Federal
                                          Register and provide paid time-
                                          off as a retention incentive,
                                          provide retention incentives
                                          and other incentive awards,
                                          and execute contribution and
                                          performance-based payouts, as
                                          described in this FRN.
                                         5 CFR part 575, subpart A and
                                          subpart C--Recruitment and
                                          Retention Incentives. Waived
                                          to the extent necessary to
                                          allow the STRL Director to
                                          implement the recruitment and
                                          retention flexibilities as
                                          described in this Federal
                                          Register notice, to include
                                          paying a retention
                                          counteroffer up to 50 percent
                                          of basic pay to retain high
                                          performing employees and to
                                          determine whether a service
                                          agreement is required.
                                          Criteria for these
                                          determinations will be as
                                          prescribed in 5 U.S.C. 5754
                                          unless otherwise specified in
                                          this FRN.
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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...................  89 FR 13548.
Army Research Institute for Behavioral   85 FR 76038.
 and Social Sciences.
Combat Capabilities Development Command  76 FR 3744.
 Armaments Center.
Combat Capabilities Development Command  63 FR 10680.
 Army Research Laboratory.
Combat Capabilities Development Command  62 FR 34906 and 62 FR 34876
 Aviation and Missile Center.             amended by 65 FR 53142.
Combat Capabilities Development Command  74 FR 68936.
 Chemical Biological Center.
Command, Control, Communications,        66 FR 54872.
 Cyber, Intelligence, Surveillance, and
 Reconnaissance Center.
Combat Capabilities Development Command  76 FR 12508.
 Ground Vehicle Systems Center.
Combat Capabilities Development Command  74 FR 68448.
 Soldier Center.
Engineer Research and Development        63 FR 14580 amended by 65 FR
 Center.                                  32135.
Medical Research and Development         63 FR 10440.
 Command.
Technical Center, US Army Space and      85 FR 3339.
 Missile Defense Command.
Naval Air Systems Command Warfare        76 FR 8530.
 Centers.
Naval Facilities Engineering Command     86 FR 14084.
 Engineering and Expeditionary Warfare
 Center.
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.
Marine Corps Tactical Systems Support    Not yet published.
 Activity.
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    Dated: May 16, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2024-11142 Filed 5-20-24; 8:45 am]
BILLING CODE 6001-FR-P