# Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Army, Army Research, Development and Engineering Command, Tank Automotive Research, Development and Engineering Center (TARDEC) > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2011-4932 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** March 7, 2011 - **Citation:** 76 FR 12508 ## Text DEPARTMENT OF DEFENSE Office of the Secretary Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of the Army, Army Research, Development and Engineering Command, Tank Automotive Research, Development and Engineering Center (TARDEC) AGENCY: Office of the Deputy Under Secretary of Defense (Civilian Personnel Policy) (DUSD (CPP)), DoD. ACTION: Notice. SUMMARY: Section 342(b) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 1995, Public Law (Pub. L.) 103-337, (10 U.S.C. 2358 note), as amended by section 1109 of NDAA for FY 2000, Public Law 106-65, and section 1114 of NDAA for FY 2001, Public Law 106-398, authorizes the Secretary of Defense to conduct personnel demonstration projects at DoD laboratories designated as Science and Technology Reinvention Laboratories (STRLs). The above-cited legislation authorizes DoD to conduct demonstration projects to determine whether a specified change in personnel management policies or procedures would result in improved Federal personnel management. Section 1105 of the NDAA for FY 2010, Public Law 111-84, 123 Stat. 2486, October 28, 2009, designates additional DoD laboratories as STRLs for the purpose of designing and implementing personnel management demonstration projects for conversion of employees from the personnel system which applied on October 28, 2009. The TARDEC is listed in subsection 1105(a) of NDAA for FY 2010 as one of the newly designated STRLs. DATES: Implementation of this demonstration project will begin no earlier than March 9, 2010. FOR FURTHER INFORMATION CONTACT: TARDEC: U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC), 6501 East 11 Mile Road, Warren, MI 48397-5000, ATTN: RDTA-COS/MS 204 Mr. Gregory L. Berry, Warren, MI 48397-5000. DoD: Ms. Betty Duffield, CPMS-PSSC, Suite B-200, 1400 Key Boulevard, Arlington, VA 22209-5144. SUPPLEMENTARY INFORMATION: 1. Background Since 1966, many studies of DoD laboratories have been conducted on laboratory quality and personnel. Almost all of these studies have 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. These 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. This demonstration project involves: (1) Two appointment authorities (permanent and modified term); (2) extended probationary period for newly hired engineering and science employees; (3) pay banding; (4) streamlined delegated examining; (5) modified reduction-in-force (RIF) procedures; (6) simplified job classification; (7) the Contribution-based Compensation and Appraisal System (CCAS); (8) academic degree and certificate training; (9) sabbaticals; (10) a Voluntary Emeritus Corps; (11) direct hire authority for candidates with advanced degrees for scientific and engineering positions; and (12) Distinguished Scholastic Achievement Appointment Authority. 2. Overview The NDAA for FY 2010 not only designated new STRLs but also repealed the National Security Personnel System (NSPS) mandating conversion of NSPS covered employees to their former personnel system or one that would have applied absent the NSPS. A number of TARDEC employees are covered by the NSPS and must be converted to another personnel system. Section 1105 of NDAA for FY 2010 stipulates the STRLs designated in subsection (a) of section 1105 may not implement any personnel system, other than a personnel system under an appropriate demonstration project as defined in section 342(b) of Public Law 103-337, as amended, without prior congressional authorization. In addition, any conversion under the provisions of section 1105 shall not adversely affect any employee with respect to pay or any other term or condition of employment; shall be consistent with section 4703(f) of title 5 United States Code (U.S.C.); and shall be completed within 18 months after enactment of NDAA for FY 2010. Therefore, since TARDEC is both designated an STRL by section 1105 of NDAA for FY 2010 and has NSPS covered employees, it must convert, at a minimum, its NSPS covered employees to a personnel management demonstration project before the end of April 2011. On September 9, 2010, DoD published the proposed STRL Demonstration Project for TARDEC in 75 FR 55109-55157. During the public comment period ending October 12, 2010, DoD received comments from five individuals. All comments were carefully considered. The following summary addresses all the comments received, provides responses, and note resultant changes to the original project plan in the first Federal Register notice. Most commenters addressed several topics, which were counted separately. A total of 39 comments were received from the five commenters. The following summary addresses all comments received, provides responses, and notes resultant changes to the original project plan in the first Federal Register notice. A. General Overview of Comments None of the comments received gave an overall opinion supporting or not supporting the demonstration project. The comments received are categorized as desiring further clarification or offering constructive recommendations on improving the details of the demonstration project. Generally, the comments were very helpful in pointing out areas that needed refinement or correction and were directed to a specific topic. In order to maintain the greatest flexibilities additional detailed instructions will be contained in the TAREC Demonstration Project Internal Operating Instructions. B. Personnel Management Board One (1) comment was received under this section. Comment: What does “ensure in-house budget discipline” mean? Is this the “Control Gates” or “Swim Lanes” as TARDEC currently calls it under acquisition demonstration where maximum pay in a given band is being limited to less than the band allows and what the position is advertised to encompass? Response: The TARDEC Personnel Management Board has the responsibility to ensure that expenses associated with the demonstration project are maintained within proper funding levels. The use of “control gates” for the demonstration project, if used, will be contained in the Demonstration Project Operating Instructions. No changes were made as a result of this comment. C. Pay Banding One (1) comment was received under this section. Comment: Within the Engineering and Science DB pay band at the II level, it is identified as a developmental track covering GS-5, step 1, through GS-11, step 10. TARDEC has Chemists whose full performance grade (GS-9/11) falls in this band. As written, this is misleading as it implies that these people are in a developmental position when in fact they are not. Response: Concur with comment. The DB Pay Band Level II covers positions that may be either developmental in nature or at the full performance level. Federal Register notice Section III.A.1.b is modified to read: “Band II is developmental/full performance track covering GS-5, step 1, through GS-11, step 10. D. Classification One (1) comment was received under this section. Comment: The Federal Register notice does not talk about how supervisory and/or team leader positions will be determined from the standpoint of meeting some type of established criteria. Recommend a review of the language with the possibility of adding that Office of Personnel Management (OPM) Functional Classification Standards could be used to form applicability determinations for positions. Response: Concur with the comment. The OPM Functional Classification Standards such as the General Schedule Team Leader Guide, General Schedule Supervisory Guide, Research Grade Evaluation Guide, Equipment Development Grade Evaluation Guide, etc., will be used as foundation guides in making proper classification applicability determinations. Federal Register notice Section III.B.2 is modified to read: “Current OPM functional classification standards may be used to aid in position applicability and the framework for pay band level determinations.” E. Contribution-Based Compensation and Appraisal System (CCAS) A total of eleven (11) comments were received under this category relating to four subtopics as follows: 1. Pay Pools Comments: Two similar comments addressed the guidelines for sizing of pay pools and that in the past TARDEC had exceeded the size guidelines for pay pools under the DoD Civilian Acquisition Workforce Personnel Demonstration Project. Does TARDEC intend to continue having a single pay pool with upwards of 700 employees in it? Response: It is projected that the makeup of demonstration project pay pools will typically be constructed within normal pay pool size guidelines. However, to provide additional flexibility, some specific language in Section III.C.3. Pay Pools was deleted with the actual construct of pay pools to be further defined in the Demonstration Project Internal Operating Instructions. Comment: One comment addressed whether it will be a requirement that supervisory personnel be in a separate pay pool from non-supervisory personnel. Response: To maintain flexibility the construct of pay pools will be further defined in the Demonstration Project Internal Operating Instructions. Federal Register notice Section III.C.3 was modified to delete the sentence: “Supervisory personnel typically will be placed in a pay pool separate from subordinate non-supervisory personnel.” Comment: One comment addressed the amount of the performance payouts; whether they are based on an established pay calculation such as the DoD Civilian Acquisition Workforce Personnel Demonstration Project's CAS2NET system; and if the formulas will be made available. Response: The final decision for the amounts given for performance pay outs rests with the TARDEC Director with a recommendation by a Pay Pool Manager. While an automated tool may perform generalized calculations, the amounts to be given for continuing pay increases and bonus awards are the Pay Pool Manager's determination. No changes in the Federal Register notice have been made in response to this comment. Comment: One comment addressed the funding levels and the fact that TARDEC has a number of employees that are co-located with other offices such as Program Executive Offices which complicates the pay pool funding situation since these offices may fund at different levels. Response: The decisions on funding levels for the Demonstration Project are at the sole discretion of the TARDEC Director with recommendations provided by the TARDEC Personnel Management Board. Consultation with other organizations is desirable, but will not be required by the Demonstration Project. No changes in the Federal Register notice have been made in response to this comment. 2. Annual Rating Cycle and Rating Process Comment: One comment addressed that all Overall Contribution Scores (OCS) will be rounded up to the nearest whole number. For clarification purposes, an OCS of 70.1 would be rounded up to 71. Is that correct? Response: This comment has been carefully considered; and it is agreed that it needs clarification. Federal Register notice Section III.C.4 is modified to read: “All OCS's will be rounded to the nearest whole number.” Comment: One comment addressed when the expected OCS for an individual would be established and set for the appraisal year in order for the employee to perform throughout the year to a level associated with the expected OCS. Response: The expected OCS is directly tied to an employee's base pay. Therefore, it is the base pay the employee has at the end of the rating cycle that will determine the final expected OCS. This does not preclude the employee and the rating official from discussing performance at the beginning and mid-point of the rating cycle. The demonstration project encourages employees and supervisors to actively participate in on-going performance discussions. The demonstration project has established six performance factors with each factor having multiple levels of increasing contribution corresponding to the pay band levels; this will allow meaningful discussions without the final expected OCS being determined until the end of the rating cycle. No changes in the Federal Register notice have been made in response to this comment. Comment: One comment addressed Table 4 with respect to the OCS point ranges for the Business and Technical (DE) Occupational Family. It was suggested the table may need further review and refinement to allow for the possibility of higher scores. Response: This comment was carefully considered. It was agreed that Table 4 needs to be modified to revise the point ranges of the Business and Technical (DE) occupational family. This will allow for and maintain proper growth potential within this occupational family. Federal Register notice Table 4 was modified accordingly. 3. Base Pay Increases and Bonuses Comment: One comment pointed out that base pay increases may be limited and that base pay is capped when an employee reaches the maximum rate of base pay in an assigned pay band. The commenter asked if these are one in the same or if they refer to “control gates.” Compensation should not be limited to something lower than what the pay band allows, otherwise a return to General Schedule may be appropriate. Response: The demonstration project gives final authority to the TARDEC Director in the distribution of the amount of individual pay increases and bonuses as recommended by a Pay Pool Manager. No changes in the Federal Register notice have been made in response to this comment. 4. Awards Comment: One commenter requested clarification as to whether the $25,000 ceiling applies only to group awards or if it may also apply to individual awards. Response: The delegation of awards authority is an internal Army decision and will be considered as such. Comment: One commenter recommended expanding the TARDEC Director's awards authority to provide final approval authority for two Army civilian honorary achievement medals. Response: The delegation of awards authority is an internal Army decision and will be considered as such. F. Hiring Authority A total of nine comments were received under this category relating to five subtopics as follows: 1. Delegated Examining Comment: In regard to rating and ranking being required only when the number of qualified candidates exceed 15 or there is a mix of preference and non-preference applicants, one commenter wanted to know who determines the number of qualified candidates. The question was posed as to whether this was left to the selecting official as the commenter wanted to make sure the integrity of the qualified determinations were maintained under the demonstration project. Response: The servicing Civilian Personnel Advisory Center will determine the number of qualified candidates based on the number of applications received and the number of applicants determined to fully meet the prescribed OPM qualification standards. This is a function of the servicing Civilian Personnel Advisory Center and not the selecting official. No changes in the Federal Register notice have been made in response to this comment. Comment: One comment addressed that there was no mention of positions covered by the Administrative Careers With America (ACWA) at the proposed Business and Technical Lab Demo Pay Band DE-II, GS-5 through GS-11 level equivalent. Since the demonstration project will recruit at the lowest GS equivalent of the band, so the DE-II positions would be recruited at the GS-5 equivalent, and many, if not all, positions in that occupational family would be covered by ACWA, therefore they recommended that we modified our language to include the use of the OPM ACWA Assessment Tool for these positions. Response: This comment has been carefully reviewed resulting in the addition of the following clarifying information to the Federal Register notice Section III.D.2: “The Demonstration Project will utilize the current OPM Administrative Careers With America (ACWA) or successor procedures for occupational series which have been designated as having a testing requirement. This will allow for the recruitment of positions covered by the Business and Technical Occupational Family at the DE-II pay band level.” Comment: One comment recommended identifying an upper and lower level within the DE-II pay band for recruitment purposes only in order to qualify candidates at the higher level of the pay band say at the GS-9 level. They recognized that many positions require work at the full performance level (GS-9/11 equivalent), which cannot be met with the standard as written. Plus they said many positions within the laboratory are covered under the Luevano Decree, and must meet the ACWA requirements if recruited using GS-5 Level standards. Response: This comment has been carefully considered. While adding an upper and lower qualifications determination within a pay band may appear to be desirable, we have retained our DE-II pay band structure and the minimum qualification requirements. Selective placement factors may still be used to distinguish higher level experience, skills, competencies. No changes in the Federal Register notice have been made in response to this comment. Comment: One comment recommended modification to say that if delegated examining authority has been granted for the GS equivalent position, that delegated examining authority also applies to positions covered under this demonstration project. Absent this language, additional delegated authority must be requested from OPM to fill positions covered by this project. Response: This comment has been carefully considered. It was concluded that the current language in Section D. II covers projected authorities. No changes in the Federal Register notice have been made in response to this comment. 2. Distinguished Scholastic Achievement Appointment Comment: One comment recommended the needed flexibility to make “on the spot” appointments at job fairs, college visits, etc., and that a public announcement should not be required for this hiring authority. Response: This comment has been carefully considered. While the notion of making “on the spot” appointments is highly desirable, no changes in the Federal Register notice have been made in response to this comment. Comment: One comment addressed the current labor market conditions being extremely competitive with industry and academia for the small supply of highly-qualified and security clearable candidates with Masters Degrees or Ph.D.'s. in science or engineering. This might have been the case four years ago, but not today in southeast Michigan. If TARDEC believes this, why have people been told TARDEC doesn't participate in the tuition reimbursement program since we don't have trouble finding and keeping qualified people? Response: The Distinguished Scholastic Achievement Appointment authority coupled with the Federal Register notice language in Section III.G.1.b, Critical Skills Training (Training for Degrees) provides enough flexibility for the ever changing labor markets. No changes in the Federal Register notice have been made in response to this comment. 3. Initial Probationary Period Comment: One commenter recommended changing the language in this section to clarify authority of the TARDEC Director with respect to extending the three-year probationary period and to customizing the probationary period. Response: The initial probationary period will not exceed three years for all newly hired employees. The TARDEC Director cannot extend this period of time but may limit it. To maintain flexibility, the construct of Initial Probationary Periods will be further defined in the Demonstration Project Internal Operating Instructions. No changes in the Federal Register notice have been made in response to this comment. 4. Supervisory Probationary Periods Comment. One comment was received recommending that an existing supervisor should only be subject to an additional one-year probationary period if the change of assignment was initiated/requested by the employee. Response: This comment has been carefully considered. The determination as to when a new supervisory probationary period is to be applicable will be a management decision and not initiated by an employee's request. No change in the Federal Register notice have been made in response to this comment. 5. Voluntary Emeritus Corps Comment: One comment was received recommending deleting the sentences that state that voluntary emeritus assignments are not considered employee assignments and replace with, Voluntary Emeritus Corps service is gratuitous if the intent is to extend the Voluntary Emeritus individuals additional benefits of employees, such as the ability to go TDY and represent the government in non-contractual matters. Response: This comment has been carefully considered. The intent of this new authority is to develop a mechanism to allow retired or separated employees to volunteer their services. They are not taking the place of government workers. To maintain consistency Section III.D.k, m, and n are modified to remove the word “employee” and replace with the word “volunteer.” G. Internal Placement A total of two comments were received under this category relating to two subtopics as follows: 1. Promotion Comment: One comment identified that promotion actions may not result in an increase in employees' base pay since there is an overlap of salaries in different pay bands. The recommendation was to delete the sentence: “The move from one band to another must result in an increase in the employee's base pay to be considered a promotion.” Response: This comment has been carefully reviewed. It is agreed that the identified sentence should be deleted. The following sentence is deleted from the Federal Register notice Section III.E.1: “The move from one band to another must result in an increase in the employee's base pay to be considered a promotion.” Since base pay dollars can overlap, the movement from a lower pay band to a higher pay band ( e.g., DE-III to DE-IV) using the word “must” was incorrect. 2. Reassignment Comment: One comment recommended all of Section III.(E)(6) beyond the first paragraph be moved to the pay setting Section III.F.6. Response: The current sections are considered to be in a proper placement within the Federal Register notice. No changes in the Federal Register notice have been made in response to this comment. H. Pay Administration A total of four comments were received under this category relating to four subtopics as follows: 1. Pay and Compensation Ceilings Comment: One comment mentioned base pay will be limited to the maximum base pay payable for each band. The commenter wanted to know if “control gates” are being eliminated under the demonstration project. Response: The use of “control gates,” for the demonstration project, if used, will be described in the Demonstration Project Internal Operating Instructions. No changes in the Federal Register notice have been made in response to this comment. 2. Pay Setting for Appointment Comment: One comment contained the recommendation that the Pay Setting for Appointments section be modified to specifically state that pay setting for initial entrance into the demonstration project from another personnel system is considered the same as an initial appointment. Response: This comment has been carefully considered. It has been determined the current language provides the necessary flexibilities. No changes in the Federal Register notice have been made in response to this comment. 3. Pay Setting for Promotion Comment: One comment contained the recommendation that the $10,000 limit on promotions be replaced by a percentage of base pay to create a system that can adapt as the General Schedule salary tables change. Over time, a fixed $10,000 amount will constitute a smaller and smaller percentage of base pay. Response: The following sentence has been deleted from the Federal Register notice, Section III.F.5: “The maximum amount of a base pay increase for a promotion will not exceed $10,000, or other such amounts as established by the Personnel Management Board.” This sentence had an unintended limiting effect. 4. Supervisory and Team Leader Pay Differentials Comment: One comment requested clarification on whether a supervisory/leader is eligible for a supervisory/leader pay adjustment and a supervisory/leader differential, or if the supervisor/leader is ineligible for one if another is received. Response: Additional guidance on the Supervisory and Team Leader Pay Adjustments will be contained in the Demonstration Project Internal Operating Instructions. No changes in the Federal Register notice have been made in response to this comment. I. Employee Development One (1) comment was received under this section. Comment: A commenter requested clarification on how the service obligation period will be computed. Will one academic year of training (30 semester hours or equivalent) require one year of service, or will the service obligation be computed based on actual classroom hours, which is a much shorter period of time? Response: Additional guidance on critical skills training obligations will be contained in the Demonstration Project Internal Operating Instructions. No changes in the Federal Register notice have been made in response to this comment. J. Reduction-In-Force A total of four comments were received under this category relating to three subtopics as follows: 1. Retention Standing for Modified Term Appointments Comment: Two comments requested clarification of the retention standing for employees on either a modified term appointment or a temporary appointment. Normally these two categories of appointments are not listed in Tenure Group. Both commenters suggested a review of Tenure Group determinations with a recommendation that both groups be identified as Tenure Group 0, and, therefore, not eligible to compete within a Reduction-In-Force (RIF). Response: This suggestion has been fully reviewed; and it is agreed that employees in these two appointment groups should not receive Tenure Group III status for RIF purposes. The following sentence is deleted from the Federal Register notice Section III. H: “Modified term appointment and temporary employees are in tenure group III for RIF for purposes.” The following sentence is added to Section III.H: “Modified term appointment and temporary employees are in Tenure Group 0 and are not eligible to compete in a RIF.” 2. RIF Service Credit for Performance Comment: One comment addressed the use of seven and four years with specific percentage of service credit based upon the OCS. A recommendation was provided for a review to determine if the seven and four years could be replaced with a mechanism by which 20, 16, and 12 years of additional RIF service credit could be used relating to the OCS similar to the traditional RIF procedures. Response: After a careful review, there is agreement that additional RIF service credit for performance would be better defined using a three tiered credit system relating to the traditional format found in most General Schedule procedures. The last three OCS scores will still be used plus a percentage of the expected OCS. Federal Register notice Sections III.H.a and b are removed and replaced with the following: “a. 20 years of credit for each year the OCS is equal to or greater than 94 percent of the expected OCS. b. 16 years of credit for each year the OCS is less than 94 percent but greater than 92 percent of the expected OCS. c. 12 years of credit for each year the OCS is less than 92 percent but greater than 90 percent of the expected OCS. d. Zero (0) years of credit for each year the employee's OCS is less than 90 percent of the expected 0CS.” 3. Contribution Improvement Plan Assignment Rights Comment: One comment called attention to granting assignment rights to any employee currently serving on a Contribution Improvement Plan (CIP) for RIF purposes and suggested it was not in the interest of the mission to place a nonperforming employee in a different position that has been identified as critical in a period of downsizing. Response: The Federal Register notice language contained in Section III. H. has been reconsidered; and it has been concluded it appropriately addresses assignment rights for employees on a CIP. No changes in the Federal Register notice have been made in response to this comment. K. Conversion From NSPS to the Demonstration Project One (1) comment was received under this section. Comment: A commenter recommended providing additional details addressing when and why conversions from NSPS to Lab Demo may not be at the current NSPS bands. Response: The current Federal Register notice language contained in Section V.A.b. sets forth a conversion procedure that best fits the applicability of the TARDEC conversion situation. No changes have been made as a result of this comment. L. Conversion From a Non-NSPS System to the Demonstration Project Two (2) comments were received under this section. Comment: One comment drew attention to the provision that employees who are on retained grade would not receive prorated Within Grade Increases if they are on a retained rate. Absent conversion to the demonstration project these employees would continue to receive Within Grade Increases for the duration of the period of retained grade as if they were never demoted. Response: This comment has been carefully considered. General Schedule (GS) employees on retained Grade at the time of conversion into Lab Demo Project will be afforded the prorated Within-Grade Increase equity provisions as outlined in Section V.B. No changes in the Federal Register notice have been made in response to this comment. Comment: One comment recommended deleting the sentence: “Employees who enter the demonstration project from other pay systems (DCIPS, ACQ Demo, or other STRLs) after initial implementation by lateral transfer, promotion, reassignment, reduction in band, or realignment will be subject to the pay rules that govern conversion out of their respective systems.” The commenter believes that it limits the ability to set pay in the lab demo. Response: This comment has been carefully considered. This sentence refers to the losing activity providing pay equivalencies for use by the Lab Demo in setting pay under Lab Demo rules. Employees are placed into the Lab Demo using the Lab Demo pay setting provisions. No changes in the Federal Register notice have been made in response to this comment. M. Conversion Out of the Demonstration Project One (1) comment was received under this section. Comment: This comment recommended deletion of the sentence, “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).” This sentence assumes that the lateral action is determined prior to identification of the conversion grade. In place of this sentence, recommend rewording the following sentence to include reassignment as well as promotion, transfers, etc. The conversion grade must first be identified in order to determine if the subsequent action is a promotion, reassignment or downgrade. Response: This comment has been carefully considered. The detailed information contained in this sentence helps the receiving/gaining Human Resource Office to better understand how the Lab Demo system works. No changes in the Federal Register notice have been made in response to this comment. N. Demonstration Project Costs One (1) comment was received under this section. Comment: It was recommended a review of the Design and Transition to NSPS expenses also be documented in addition to the three categories already identified in the Federal Register notice for Fiscal Years 2010 and 2011 in order to properly account for the actual and projected expenses made in conjunction of with the demonstration project. Response: Table 9—Projected Development Costs has been modified to include related NSPS expenses. A line to cover Design and Transition from NSPS expenditures for FY 10 and FY 11 was added, plus the projected expenditures for the remaining categories were updated. 3. Access to Flexibilities of Other STRLs Flexibilities published in this Federal Register notice shall be available for use by the STRLs previously enumerated in section 9902(c)(2) of title 5, United States Code, which are now redesignated in section 1105 of the NDAA for FY 2010, Public Law 111-84, 123 Stat. 2486, October 28, 2009, if they wish to adopt them in accordance with DoD Instruction 1400.37; pages 73248 to 73252 of volume 73, Federal Register ; and after the fulfilling of any collective bargaining obligations. Dated: March 1, 2011. Morgan F. Park, Alternate OSD Federal Register Liaison Office, Department of Defense. Table of Contents I. Executive Summary II. Introduction A. Purpose B. Problems with the Present System C. Changes Required/Expected Benefits D. Participating Organizations E. Participating Employees and Union Representation F. Project Design G. Personnel Management Board III. Personnel System Changes A. Pay Banding B. Classification C. Contribution-based Compensation and Appraisal System (CCAS) D. Hiring Authority E. Internal Placement F. Pay Administration G. Employee Development H. Reduction-in-Force (RIF) Procedures IV. Implementation Training V. Conversion Into the Demonstration Project A. Conversion from NSPS to the Demonstration Project B. Conversion from Non-NSPS System to the Demonstration Project C. Movement Out of the Demonstration Project D. Personnel Administration E. Automation F. Experimentation and Revision VI. Project Duration VII. Evaluation Plan A. Overview B. Evaluation Model C. Evaluation D. Method of Data Collection VIII. Demonstration Project Costs A. Cost Discipline B. Developmental Costs IX. Required Waivers to Law and Regulation Appendix A: TARDEC Employees by Duty Location Appendix B: Occupational Series by Occupational Family Appendix C: Contribution-Based Compensation and Appraisal System (CCAS) Factors Appendix D: Intervention Model I. Executive Summary TARDEC is a subordinate organization of the U.S. Army Research, Development and Engineering Command (RDECOM). TARDEC is the U.S. Army's Ground Vehicle Center of Excellence and the ground systems integration domain owner for RDECOM. TARDEC provides engineering and scientific expertise for DoD manned and unmanned ground systems and ground support systems. It is the Nation's laboratory for advanced military automotive technology and the Army's lead for advanced science and technology research, demonstration, development, and full Life Cycle engineering for ground vehicle electronics and architecture, power and mobility, intelligent ground systems, maneuver support and sustainment, and survivability. At TARDEC, the top priority is to deliver the most advanced technology solutions to improve the Nation's ground vehicle fleet. To do this effectively requires more than just hard work and dedication. It takes leadership, vision, and the determination to execute that vision. To be truly successful, the workforce needs to be able to lead, innovate, integrate, and deliver. To achieve this goal, TARDEC must be able to hire, retain, and continually motivate enthusiastic, innovative, and highly-educated scientists and engineers, supported by accomplished business management and administrative professionals as well as a skilled administrative and technical support staff. The goal of the project is to enhance the quality and professionalism of the TARDEC workforce through improvements in the efficiency and effectiveness of the human resource system. The project interventions will strive to achieve the best workforce for the TARDEC mission, adjust the workforce for change, and improve workforce satisfaction. The TARDEC proposed demonstration project is similar to the Department of Defense Civilian Acquisition Workforce Personnel Demonstration Project, commonly known as the “Acq Demo.” TARDEC has been using the Acq Demo's Contribution-Based Compensation and Appraisal System (CCAS) and its pay banding structure for a number of years. The TARDEC Project also uses concepts from the U.S. Army Communications-Electronics Research, Development and Engineering Center (CERDEC) demonstration project and the Naval Research Laboratory demonstration project. The results of the project will be evaluated within five years of implementation. II. Introduction A. Purpose The purpose of the project is to demonstrate that the effectiveness of DoD STRLs can be enhanced by expanding opportunities available to employees and by allowing greater managerial control over personnel functions through a more responsive and flexible personnel system. Federal laboratories need more efficient, cost-effective, and timely processes and methods to acquire and retain a highly creative, productive, educated, and trained workforce. This project, in its entirety, attempts to improve employees' opportunities and provide managers, at the lowest practical level, the authority, control, and flexibility needed to achieve the highest quality organization and hold them accountable for the proper exercise of this authority within the framework of an improved personnel management system. 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 system is working. The provisions of this project plan will not be modified, or extended to individuals or groups of employees not included in the project plan, without the approval of the ODUSD(CPP). The provisions of DoDI 1400.37 are to be followed for any modifications, adoptions, or changes to this demonstration project plan. B. Problems With the Present System TARDEC has participated in a number of personnel systems and personnel demonstrations over the past 25 years. These include the current Civil Service General Schedule (GS) system, the Acq Demo Project, and the NSPS. In October 2009, as part of the NDAA for FY 2010, TARDEC was designated as a STRL for the purpose of designing and implementing a personnel management demonstration project for conversion of employees from the personnel system(s) which applied to them on October 28, 2009. TARDEC's experience with each of these prior personnel systems was that, although each had positive features, each also had negative aspects. As a result of TARDEC's experience, it was determined that certain features from the earlier systems were worthwhile to carry forward and any shortcomings/limitations corrected or alleviated. The current GS system has existed in essentially the same form since 1949. Work is classified into one of fifteen overlapping pay ranges that correspond with the fifteen grades. Base pay is set at one of those fifteen grades and the ten interim steps within each grade. The Classification Act of 1949 rigidly defines types of work by occupational series and grade, with very precise qualifications for each job. This system does not quickly or easily respond to new ways of designing work and changes in the work itself. The performance management model that has existed since the passage of the Civil Service Reform Act in 1980 has come under extreme criticism. Employees frequently report there is inadequate communication of performance expectations and feedback on performance. There are perceived inaccuracies in performance ratings with general agreement that the ratings are inflated and often unevenly distributed by grade, occupation, and geographic location. The need to change the current hiring system is essential as TARDEC must be able to recruit and retain scientific, engineering, acquisition support and other professionals, and skilled technicians. TARDEC must be able to compete with the private sector for the best talent and be able to make job offers in a timely manner with the attendant bonuses and incentives to attract high quality employees and be in compliance with public law. Finally, current limitations on training, retraining and otherwise developing employees make it difficult to correct skill imbalances and to prepare current employees for new lines of work to meet changing missions and emerging technologies. TARDEC's proposed personnel management demonstration project, by building on previous strengths and addressing shortcomings, is intended to provide the highest potential for movement to a single system that will meet the needs of TARDEC and all its employees. C. Changes Required/Expected Benefits The primary benefit expected from this demonstration project is greater organizational effectiveness through increased employee satisfaction. The long-standing Department of the Navy's “China Lake” and the National Institute of Standards and Technology (NIST) demonstration projects have produced impressive statistics on increased job satisfaction and quality of work versus that for the Federal workforce in general. This project will demonstrate that a human resource system tailored to the mission and needs of the TARDEC workforce will facilitate increased: 1. Quality in the workforce and resultant products; 2. Timeliness of key personnel processes; 3. Retention of “excellent performers;” 4. Success in recruitment of personnel with critical skills; 5. Management authority and accountability; 6. Satisfaction of customers; and 7. Workforce satisfaction with the personnel management system. An evaluation model was developed for the Director, Defense, Research and Engineering (DDR&E) in conjunction with STRL service representatives and the Office of Personnel Management (OPM). The model will measure the effectiveness of this demonstration project and will be used to measure the results of specific personnel system changes. D. Participating Organizations TARDEC is comprised of employees located at the main site in Warren, MI, with others geographically dispersed at the locations shown in Appendix A. TARDEC has employees matrixed to Program Executive Office Combat Support and Combat Service Support; Program Executive Office Ground Combat Systems; Program Executive Office Integration; and Tank Automotive Command (TACOM) Life Cycle Management Command (LCMC) Joint Project Office. Successor organizations will continue coverage in the demonstration project. E. Participating Employees and Union Representation This demonstration project will cover approximately 1,427 TARDEC civilian employees under title 5, U.S.C. in the occupations listed in Appendix B. The project plan does not cover members of the Senior Executive Service (SES), Scientific and Professional (ST) employees, Federal Wage System (FWS) employees, employees covered by the Defense Civilian Intelligence Personnel System (DCIPS), Department of Army (DA) and Army Command centrally funded interns, or students employed under the Summer Hire Program. Department of Army and Army Material Command centrally funded interns will not be converted to the demonstration project until they reach their full performance level. They will continue to be covered under the Total Army Performance Evaluation System (TAPES). The American Federation of Government Employees (AFGE) Local 1658 represents approximately 90% of TARDEC's professional and non-professional workforce. To foster union acceptance of TARDEC's proposed personnel demonstration project, initial discussions with the Union officials began in December 2009. Negotiations will begin in earnest after publication of this Federal Register notice (FRN). TARDEC will continue to fulfill its obligation to consult and/or negotiate with all labor organizations in accordance with 5 U.S.C. 4703(f) and 7117, as applicable. F. Project Design In October 2009, section 1105 of NDAA for FY 2010 directed TARDEC to transition to a laboratory demonstration project. TARDEC senior leadership decided to move toward adopting many aspects of both the Acq Demo and the CERDEC laboratory personnel demonstration project as modified by this FRN. The Acq Demo project was approved in 1999 and the CERDEC project was approved in 2001. TARDEC hopes to benefit from using the best practices from these demonstration projects. G. Personnel Management Board 1. TARDEC is creating a Personnel Management Board to 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 board will be senior leaders appointed by the TARDEC Director. As needed, ad hoc members (such as labor counsel, human resource representatives, etc. ) will serve as advisory members to the board. 2. The board will execute the following: a. Determine the composition of the CCAS pay pools in accordance with the guidelines of this proposal and internal procedures; b. Review operation of pay pools and provide guidance to pay pool managers; c. Oversee disputes in pay pool issues; d. Formulate and execute the civilian pay budget; e. Manage the awards pools; f. Determine hiring and promotion-based pay as well as exceptions to CCAS base pay increases; g. Conduct classification review and oversight, monitor and adjust classification practices, and decide board classification issues; h. Approve major changes in position structure; i. Address issues associated with multiple pay systems during the demonstration project; j. Establish contribution goals and other evaluation descriptors; k. Assess the need for changes to demonstration project procedures and policies; l. Review requests for Supervisory/Team Leader Base Pay Adjustments and provide recommendations to the appropriate Center Director; m. Ensure in-house budget discipline; n. Manage the number of employees by occupational family and pay band; o. Develop policies and procedures for administering Developmental Opportunity Programs; p. Ensure that all employees are treated in a fair and equitable manner in accordance with the policies, regulations and guidelines covering this demonstration project; and, q. Monitor the evaluation of the project. III. Personnel System Changes A. Pay Banding The design of the TARDEC pay banding system takes advantage of the many reviews performed by OPM, DoD, and DA. The design has the benefit of being preceded by exhaustive studies of pay banding systems currently practiced in the Federal sector, to include those practiced by the Navy's “China Lake” experiment and NIST. The pay band system is designed to facilitate conversion, when and if appropriate, of GS, Acq Demo, and NSPS employees into the TARDEC demo. 1. Occupational Families, Career Paths, and Pay Band Levels Occupations with similar characteristics will be grouped together into one of three occupational families with career paths and pay band levels designed to facilitate pay progression. These occupational families are Engineering and Science (E&S), Business and Technical (B&T), and General Support (GEN). Each occupational family's career path will be composed of pay bands corresponding to recognized advancement and career progression expected within the occupations. These career paths and their pay bands will not be the same for each occupational family. Each career path will be divided into three to five pay bands. Employees track into an occupational family based on their current OPM classification series as provided in Appendix B. The current occupations have been examined, and their characteristics and distribution have served as guidelines in the development of the following three occupational families: Engineering and Science (E&S) (Pay Plan DB): This occupational family includes technical professional positions such as engineers, physicists, chemists, mathematicians, operations research analysts, and computer scientists. Specific course work or educational degrees are required for these occupations. Five pay bands have been established for the E&S occupational family: a. Band I is a student trainee track covering GS-1, step 1, through GS-4, step 10. b. Band II is a developmental/full performance level track covering GS-5, step 1, through GS-11, step 10. c. Band III is a full-performance technical track covering GS-12, step 1, through GS-13, step 10. Some first-level supervisory positions may also be included in this band. d. Band IV includes both senior technical positions along with supervisors-managers covering GS-14, step 1, through GS-15, step 10. e. Band V provides the ability to accommodate science and engineering positions having duties and responsibilities that exceed the GS-15 classification criteria. The DoD is developing classification, compensation, and performance management policy, guidance, and implementation processes for this pay band level that will be published in a separate FRN. TARDEC will supplement this information through internal operating guidance. Business & Technical (B&T) (Pay Plan DE): This occupational family includes such positions as program acquisition specialists, equipment specialists, engineering and electronics technicians, finance, accounting, administrative, and management analysts. Employees in these positions may or may not require specific course work or educational degrees. Four pay bands have been established for the B&T occupational family: a. Band I is a student trainee track covering GS-1, step 1, through GS-4, step 10. b. Band II is a developmental/full performance track covering GS-5, step 1, through GS-11, step 10. c. Band III is a full performance track covering GS-12, step 1, through GS-13, step 10. d. Band IV is a senior technical/manager track covering GS-14, step 1, through GS-15, step 10. General Support (GEN) (Pay Plan DK): This occupational family is composed of positions for which specific course work or educational degrees are not required. Clerical work usually involves the processing and maintenance of records. Assistant work requires knowledge of methods and procedures within a specific administrative area. This family includes such positions as secretaries, office automation clerks, and budget/program/computer assistants. Three pay bands have been established for the GEN occupational family: a. Band I includes entry-level positions covering GS-1, step 1, through GS-4, step 10. b. Band II includes full-performance positions covering GS-5, step 1, through GS-7, step 10. c. Band III includes senior technicians/assistants/secretaries covering GS-8, step 1, through GS-10, step 10. 2. Pay Band Design The pay bands for the TARDEC Lab Demo occupational families and how they relate to the current GS framework are shown in Table 1. Table 1—TARDEC Lab Demo Pay Bands With Equivalent GS Grades Occupational family Lab demo pay bands with equivalent GS grades I II III IV V DB, Engineering & Science GS1-4 GS 5-11 GS 12-13 GS 14-15 > GS-15 DE, Business & Technical GS 1-4 GS 5-11 GS-12-13 GS-14-15 DK, General Support GS 1-4 GS 5-7 GS 8-10 The pay bands for the TARDEC Lab Demo occupational families and how they relate to the current Department of Defense Civilian Acquisition Workforce Personnel Demonstration Project framework are shown in Table 2. Table 2—TARDEC Lab Demo Pay Bands With Equivalent Acq Demo Pay Bands Occupational family Lab demo pay bands with equivalent Acq demo pay bands I II III IV V DB, Engineering & Science NH-I NH-II NH-III NH-IV DE, Business & Technical NH-I, NJ-I NH-II, NJ-II, NJ-III NH-III, NJ-IV NH-IV DK, General Support NK-I NK-II NK-III The pay bands for the TARDEC Lab Demo occupational families and how they relate to the NSPS conversion framework are shown in Table 3. Table 3—TARDEC Lab Demo Pay Bands With Equivalent NSPS Pay Bands Occupational family Lab demo pay bands with equivalent NSPS pay bands* I II III IV V DB, E&S YP-1 YD-1, YP-1 YD-2, YF-2 YD-3, YF-2, YF-3 DE, Business & Technical YP-1, YB-1, YE-1 YA-1, YA-2, YB-1, YB-2, YB-3, YE-1, YE-2, YE-3, YP-1 YA-2, YB-3, YC-2, YE-3, YE-4 YA-3, YC-2, YC-3 DK, General Support YB-1, YE-1, YP-1 YB-1, YB-2, YE-1, YE-2, YP-1 YB-2, YE-2, YP-1 *NSPS Pay Bands overlap Lab Demo bands and Occupational Families 3. Science and Engineering Positions Classified Above GS-15 (Pay Band V) The career path pay banding plan for the E&S occupational family includes a pay band V to provide the ability to accommodate positions having duties and responsibilities that exceed the GS-15 classification criteria. This pay band is based on the Above GS-15 Position concept found in other STRL personnel management demonstration projects that was created to solve a critical classification problem. The STRLs have positions warranting classification above GS-15 because of their technical expertise requirements including inherent supervisory and managerial responsibilities. However, these positions are not considered to be appropriately classified as Scientific and Professional Positions (STs) because of the degree of supervision and level of managerial responsibilities. Neither are these positions appropriately classified as Senior Executive Service (SES) positions because of their requirement for advanced specialized scientific or engineering expertise and because the positions are not at the level of general managerial authority and impact required for an SES position. The original Above GS-15 Position concept was to be tested for a five-year period. The number of trial positions was set at 40 with periodic reviews to determine appropriate position requirements. The Above GS-15 Position concept is currently being evaluated by DoD management for its effectiveness; continued applicability to the current STRL scientific, engineering, and technology workforce needs; and appropriate allocation of billets based on mission requirements. The degree to which the laboratory plans to participate in this concept and develop classification, compensation, and performance management policy, guidance, and implementation processes will be based on the final outcome of the DoD evaluation ( see Section III.A.1.e). B. Classification 1. Occupational Series The GS classification system has over 400 occupational series, which are divided into 23 occupational groupings. TARDEC currently has positions in approximately 65 occupational series that fall into approximately three occupational groupings. All positions listed in Appendix B will be in the classification structure. Provisions will be made for including other occupations in response to changing missions. 2. Classification Standards and Position Descriptions TARDEC will use an automated classification system. The present system of OPM classification standards will be used for the identification of proper series and occupational titles of positions within the demonstration project. Current OPM Functional Guides for Within White Collar Work will be used to aid in position classification suitability and form the framework for pay band level determinations. 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 pay band factor level descriptors for each pay band determination. The objective is to record the essential criteria for each pay band within each occupational family career path by stating the characteristics of the work, the responsibilities of the position, the competencies required, and the expected contributions. The pay band factor level descriptors will serve as both classification criteria and assessment criteria and may be found in Appendix C New position descriptions will replace the current position/job descriptions. The pay band factor level descriptors for each pay band will serve as an important component in the new position description, which will also include position-specific information, and provide data element information pertinent to the job. The computer-assisted process will produce information necessary for position descriptions. The new descriptions will be easier to prepare, minimize the amount of writing time, and make the position description a more useful and accurate tool for other personnel management functions. Specialty work codes (narrative descriptions) may be used to further differentiate types of work and the competencies required for particular positions within an occupational family and pay band. Each code represents a specialization or type of work within the occupation. 3. Fair Labor Standards Act Fair Labor Standards Act (FLSA) exemption and non-exemption determinations will be consistent with criteria found in 5 CFR part 551. All demonstration project positions are covered by the FLSA unless they meet the criteria for exemption. Classification Specialists will evaluate positions on a case-by-case basis comparing the duties and responsibilities assigned, the pay band factor level descriptors for each pay band level, and the FLSA criteria in accordance with 5 CFR part 551. Additionally, the advice and assistance of the servicing Civilian Personnel Advisory Center will be obtained in making determinations. The benchmark position descriptions will not be the sole basis for the determination. Basis for exemption will be documented and attached to each position description. Exemption criteria will be narrowly construed and applied only to those employees who clearly meet the spirit of the exemption. Changes will be documented and provided to the Civilian Personnel Advisory Center. 4. Classification Authority The TARDEC Director will have delegated classification authority and may, in turn, re-delegate this authority to appropriate levels. Position descriptions will be developed to assist managers in exercising delegated position classification authority. Managers will identify the occupational family, job series, functional code, specialty work code, pay band level, and the appropriate acquisition codes. Personnel specialists will provide ongoing consultation and guidance to managers and supervisors throughout the classification process. These decisions will be documented on the position description. 5. Classification Appeals Classification appeals under this demonstration project will be processed using the following procedures: An employee may appeal the determination of occupational family, occupational series, position title, and pay band level of his/her position at any time. An employee must formally raise the area of concern to supervisors in the immediate chain of command, either verbally or in writing. If an employee is not satisfied with the DoD response, he or she may then appeal to OPM only after DoD has rendered a decision on all the provisions of the demonstration project. Appellate decisions from OPM are final and binding on all administrative, certifying, payroll, dispersing, and accounting officials of the Government. Time periods for cases processed under 5 CFR part 511 apply. 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 occupational family; the propriety of a pay schedule; or matters grievable under an administrative or negotiated grievance procedure. The evaluations of classification appeals under this demonstration project are based upon the demonstration project classification criteria. Case files will be forwarded for adjudication through the CPAC/CHRA providing personnel service and will include copies of appropriate demonstration project criteria. C. Contribution-Based Compensation and Appraisal System (CCAS) 1. Overview The purpose of CCAS is to provide an effective, efficient, and flexible method for assessing, compensating, and managing the TARDEC workforce. CCAS is essential for the development and continued growth of the high quality, extremely productive, and innovative workforce needed to achieve a quality, agile and innovative organization and meet mission requirements. The CCAS allows for more employee involvement in the assessment process, fosters increased communication between supervisor and employee, promotes a clear accountability of performance, facilitates employee career progression, and provides an understandable and rational basis for pay changes by linking pay, performance, and contribution. The CCAS process described herein applies to all career paths and pay band levels I through IV. The assessment process for E&S Pay Band V positions will be based on the final outcome of the DoD evaluation and documented in TARDEC Internal Operating Instructions ( see Section III.A.1. e. for additional information). CCAS is an assessment system that measures the employee's level of contribution to the organization's mission and how well the employee performed a job. Contribution is simply defined as the measure of the demonstrated value of what an employee did in terms of accomplishing or advancing the organizational objectives and mission impact. CCAS promotes base pay adjustment decisions made on the basis of an individual's overall annual contribution and current base pay, in relation to the other contributions and their level of base pay in the pay pool. The measurement of overall contribution is through a rating process which determines the Overall Contribution Score (OCS). An employee's performance is a component of contribution that influences the ultimate OCS. Contribution is measured by using a set of factors, discriminators, and descriptors, each of which is relevant to the success of the TARDEC mission. Taken together, these factors, discriminators, and descriptors capture the critical content of jobs in each career path. These factors, discriminators, and descriptors may be modified or supplemented if experience or changing mission requirements indicates a need to do so. These factors, discriminators, and descriptors are the same as those to classify a position at the appropriate pay band level. The six (6) factors are: 1. Problem Solving, 2. Teamwork/Cooperation, 3. Customer Relations, 4. Leadership/Supervision, 5. Communication, and 6. Resource Management. Each factor has multiple levels of increasing contribution corresponding to the pay band levels. Each factor contains descriptors for each respective level within the relevant career path. See Appendix C for CCAS Factor Descriptions, Level Descriptors, and Discriminators. The appropriate occupational family career path pay band level performance factor descriptors are used by the rating official to determine the employee's actual contribution score. Employees can score within, above, or below their pay band level. For example, a pay band level II employee could score in the pay band level I, II, III, or IV range. Therefore, for the CCAS process, descriptors for all pay band levels of the occupational family performance factors are presented to better assist the supervisor with the employee assessment. Normally, the rating period will be one year. The minimum rating period will be 90 days. CCAS payouts can be in the form of increases to base pay and/or in the form of bonuses that are not added to base pay but rather are given as a lump sum payment. Other awards such as special acts, time-off awards, etc., will be retained separately from the CCAS payouts. The system will have the flexibility to be modified, if necessary, as more experience is gained under the project. 3. Pay Pools TARDEC employees will be placed into pay pools that are defined for the purpose of determining performance payouts under the CCAS system. The TARDEC Director will establish pay pools. 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. Neither the pay pool manager nor supervisors within a pay pool will recommend or set their own individual pay. Decisions regarding the amount of the performance payout are based on the established formal payout calculations. Funds within a pay pool available for performance payouts are divided into two components, base pay and bonus. These funds will be defined based on historical data. Base pay increase fund will be set at no less than two percent of total base pay. The bonus amount will be set at no less than one percent of total base pay. The TARDEC Personnel Management Board will annually review the pay pool funding and recommend adjustments to the TARDEC Director to ensure cost discipline over the life of the demonstration project. 4. Annual Appraisal Cycle and Rating Process Typically, the annual appraisal cycle begins on October 1 and ends on September 30 of the following year. At the beginning of the annual appraisal period, the pay band level descriptors for each factor will be provided to employees so that they know the basis on which their performance will be assessed. At the discretion of the pay pool manager, weights will be applied to the factors. A weight of zero may not be applied to any factor and the sum of all weights must equal 100. Employees will be informed of the weights at the beginning of the rating cycle. Supervisor and employee discussion of specific work assignments and established contribution goals for the rating period for each of the six factors should be conducted on an ongoing basis. These goals can be modified during the rating period and form the foundation of the contributions expected to be achieved. Typically, the rating official is the first-level supervisor. If the current first-level supervisor has been in place for less than 90 days during the rating cycle, the second-level supervisor serves as the initial rating official. If the second-level supervisor is in place for less than 90 days during the rating cycle, the next higher level supervisor in the employee's rating chain conducts the assessment. Employees and supervisors alike are expected to actively participate in on-going formal and informal performance discussions regarding expectations. The timing of these discussions will vary based on the nature of work performed, but will occur at least at the mid-point and end of the rating period. At least one review, normally the mid-point review, will be documented as a progress review. More frequent, task specific, discussions may be appropriate in some organizations. The employee will provide a list of his/her accomplishments to the supervisor at both the mid-point and end of the rating period using the six Contribution Factors described in Section III.C.1. An employee may elect to provide self-ratings on the contribution/performance factors and/or solicit input from team members, customers, peers, supervisors in other units, subordinates, and other sources which will assist the supervisor in fully evaluating contributions. At the end of the annual appraisal period, the immediate supervisor (rating official), from employees' inputs and his/her own knowledge, identifies for each employee the appropriate contribution level and recommends the OCS. To determine the OCS, numerical values are assigned based on the contribution levels of individuals, using the ranges shown in Table 4. Generally, the OCS is calculated by averaging the numerical values (as weighted) assigned for each of the six performance/contribution factors. (All OCS's will be rounded to the nearest whole number). The rating official in conjunction with the second-level supervisor reviews the OCS for all employees, correcting any inconsistencies identified and making the appropriate adjustments in the factor ratings. Table 4—Contribution Score Ranges by Occupational Family Pay band levels Engineering & science (DB) Point range Business & technical (DE) Point range General support (DK) Point range Very High 115 115 70 V Range 100-114 High 96-100 96-100 IV Med 84-95 84-95 Low 79-83 79-83 High 79-83 79-83 57-61 III Med 67-78 67-78 47-56 Low 61-66 61-66 38-46 High 62-66 62-66 42-46 II MH 51-61 51-61 Med 41-50 41-50 30-41 ML 30-40 30-40 Low 22-29 22-29 22-29 High 24-29 24-29 24-29 I Med 06-23 06-23 06-23 Low 0-5 0-5 0-5 The pay pool panel conducts a final review of the OCS for each employee in the pay pool. The pay pool panel has the authority to make OCS adjustments, after discussion with the initial rating officials, to ensure equity and consistency. Final approval of OCS rests with the pay pool manager, the individual within the organization responsible for managing the CCAS process. The OCS, as approved by the pay pool manager, becomes the rating of record. Rating officials will communicate the factor scores and OCS to each employee and discuss the results. If on October 1, the employee has served under CCAS for less than ninety (90) consecutive calendar days, the rating official shall wait for the subsequent annual cycle to assess the employee. Employees who have served under CCAS for less than 90 consecutive calendar days shall not receive contribution rating increases or contribution awards for that cycle. 5. Linking OCS to Base Pay Adjustment a. The Normal Pay Range (NPR) The CCAS integrated pay schedule provides a direct link between contribution, performance, and base pay. This is shown by the graph in Table 5. The horizontal axis spans from 0 to the maximum OCS of 115 for positions in pay band levels I through V. Employees who are performing above the defined criteria of the top pay band level may not exceed the OCS score of 115. The vertical axis spans from zero dollars to the dollar equivalent of the highest positions authorized under this lab demonstration. This encompasses the full base pay range (excluding locality pay and staffing supplements) under this demonstration for the given calendar year (note: Table 5 currently depicts Calendar Year 2010). Each year the rails for the NPR are adjusted based on the GS general pay increase under 5 U.S.C. 5303. The area between the upper and lower rails is considered the normal pay range; when an annual overall contribution score (OCS) plotted against a base pay rate falls on or within the NPR rails, the base pay rate is considered to be appropriate. While there may be rates of base pay that fall above or below the NPR that could be considered not appropriate, there may be circumstances to account for these rates of base pay outside the NPR. Such circumstances as saved pay or minimal contributions/performance could account for base pay rates above the NPR. For base pay rates below the NPR, such situations as exceptional contributions or growth in position responsibilities may warrant higher base pay. Employees whose annual OCS plotted against their base pay falls on or within the rails are considered appropriately compensated. Employees whose current base pay falls above or below the NPR for their assessed contribution score are considered inappropriately compensated. b. The NPR was established using the following parameters: (1) The lowest possible score is an OCS of 0, which equates to the lowest base pay under this demonstration project, GS-1, step 1, (2) The OCS of 115 equates to the maximum base pay of Pay Band V. The upper and lower rails are determined by the formulae below, encompass an area of +/- 8.0 percent in terms of base pay which correlates to approximately +/- 4.0 OCS points. Table 5—Normal Pay EN07MR11.000 c. Formulae: Given these constraints, the formulae for the upper and lower rails found in Table 5 are: Base pay upper rail = (GS-1, Step 1) * (1.0800) * (1.020043) OCS Base pay lower rail = (GS-1, Step 1) * (0.9200) * (1.020043) OCS d. The NPR is the same for all the occupational families. What varies among the occupational families are the beginnings and endings of the pay band levels. The minimum and maximum numerical OCS values and associated base pay for each pay band level by occupational family are provided in Table 5. These minimum and maximum breakpoints represent the lowest and highest base pay for the bands; and the minimum and maximum base pay possible for each pay band level. Locality pay or staffing supplements are not included in the NPR but are added to base pay as appropriate. Table 6—OCS and Pay Band Base Pay Ranges Occupational family $ (CY10 OCS salaries) I II III IV V * E&S (DB) $17,803-$31,871 $27,431-$65,731 $60,283-$93,175 $84,697-$129,517 TBD 0-29 22-66 61-83 79-100 100-115 Business & Technical (DE) $17,803-$31,871 0-29 $27,431-$65,731 22-66 $60,283-$93,175 61-83 $84,697-$129,517 79-100 General Support (DK) $17,803-$31,871 $27,431-$44,176 $37,631-$59,505 0-29 22-51 38-61 * Pay Band V is above GS-15. Base pay amounts to be determined. e. OCS Base Pay Adjustment Guidelines After the pay pool manager approves the OCS for all employees in the pay pool, the current base pay versus OCS is plotted for all employees on a chart similar to Table 7. This plot relates contribution to base pay, and identifies the placement of each employee into one of three regions: Inappropriately Compensated (A Region—above the NPR), Appropriately Compensated (C Region—within the NPR), or Inappropriately Compensated (B Region—below the NPR). In Table 7, employee C is in the Appropriately Compensated Region (falls on or within the NPR). Employee B is in the Inappropriately Compensated Region (falls below the lower NPR) for his/her contribution to the organization. Employee A is in the Inappropriately Compensated Region above the NPR ( i.e., receives high base pay due to such circumstances such as saved pay or contributions do not justify the base pay). EN07MR11.001 f. Table 8 illustrates the additional pay categories available for the three groupings of employees. The employees whose base pay falls within the NPR must receive the full General Pay Increase (GPI), may receive a contribution rating increase of up to 6 percent, and may receive a contribution award. The contribution rating increase is included as a permanent increase in base pay, but the contribution award is a lump-sum payment that does not affect base pay. The employees whose base pay falls above the NPR could be denied part or all of the GPI and may receive no contribution rating increase or contribution bonus. The intent of the demonstration project is to allow managers to retain the ability to determine how much, if any, of the general pay increase would be authorized on a case-by-case basis. The employees whose base pay falls below the NPR must receive the full general pay increase, may receive up to a 20 percent permanent increase in pay, and also may receive a contribution award. Employees on retained rate in the demonstration plan will receive base pay adjustments in accordance with 5 U.S.C. 5363 and 5 CFR Part 536. An employee receiving a retained rate is not eligible for a contribution rating increase, but may receive a contribution award. In general, those employees whose base pay falls below the NPR should expect to receive greater percentage base pay increases than those whose base pay is above the NPR. Over time, people will migrate closer to the normal pay range and receive base pay appropriate for their level of contribution. Employees whose OCS would result in awarding a contribution rating increase such that the base pay exceeds the maximum base pay for their current pay band level may receive a contribution award equaling the difference. Table 8—Compensation Eligibility Chart Category General pay increase Contribution base pay increase Contribution bonus Locality pay 1 Staffing supplement Above the NPR Could be reduced or denied NO NO YES Could be reduced or denied. Within the NPR YES YES 2 —Up to 6 percent YES 5 YES YES. Below the NPR YES YES 3,4 —Up to 20 percent YES 5 YES YES. 1 Base pay plus locality pay may not exceed Executive Level IV adjusted base pay. S&E pay band level V cap to be determined. 2 May not exceed upper rail of NPR for employee's OCS or maximum base pay for current pay band level. 3 Over 20 percent requires Director's approval. 4 May not exceed 6 percent above the lower rail or the maximum base pay for current pay band level. 5 Pay pool manager approves up to $10,000. Amounts exceeding $10,000 require Director's approval. 6. Accelerated Compensation for Developmental Positions (ACDP) (a) Accelerated Compensation for Developmental Positions (ACDP) is a pay-setting provision that may be used to recognize the development and attainment of job-related competencies for TARDEC employees participating in training programs, internships, or other developmental capacities as determined by the TARDEC Director. The ACDP includes TARDEC employees serving under the Student Career Experience Program (SCEP) and Student Temporary Employment Program (STEP). ACDP is an increase to base salary. It provides management the opportunity to increase the base pay of employees in developmental positions at rates which match or exceed career ladder promotion rates under the GS system or other labor market forces. (b) An ACDP increase to base salary may be awarded at anytime throughout the rating year. In order to receive an ACDP, the employee must be in a pay and duty status, have been on an approved CCAS standard for 90 consecutive days and have successfully met the Contribution Goal Objectives of the CCAS standard as determined by a management official. (c) ACDP is payment in addition to the annual contribution rating increase and contribution award. It generally will not exceed 20 percent of the employee's base pay; however, a higher increase may be provided on a case-by-case basis if approved by an official who is at a higher level than the official who made the initial decision. (d) ACDP base pay increase is separate funding from the pay pool process. 7. Inadequate CCAS Contribution Inadequate performance at any time during the appraisal period is considered grounds for initiation of a reduction-in-pay or removal action. The following procedures replace those established in 5 U.S.C. 4303 pertaining to reductions in grade or removal for unacceptable performance except with respect to appeals of such actions. 5 U.S.C. 4303(e) provides the statutory authority for appeals of contribution-based actions. As is currently the situation for performance-based actions taken under 5 U.S.C. 4303, contribution-based actions shall be sustained if the decision is supported by substantial evidence and the Merit Systems Protection Board shall not have mitigation authority with respect to such actions. The separate statutory authority to take contribution-based actions under chapter 75 of title 5, U.S.C., as modified in the waiver section of this notice (section IX), remains unchanged by these procedures. When an employee's OCS plots above the upper rail of the NPR and the employee is considered to be contributing inadequately the supervisor has two options. The first is to take no action but to document this decision in a memorandum for the record. A copy of this memorandum will be provided to the employee and to higher levels of management. The second option is to inform the employee, in writing, that unless the contribution increases to, and is sustained at, a higher level, the employee may be reduced in pay, reduced in pay band level, or removed. The second option will include a Contribution Improvement Plan (CIP). The CIP will state how the employee's contribution is inadequate, what improvements/results are required, recommendations on how to achieve adequate contribution, assistance that the laboratory may offer to the employee to assist in improving contribution, and consequences of failure to improve. Additionally, the CIP must include standards for adequate contribution, actions required of the employee, and time in which they must be accomplished to increase and sustain the employee's contribution at an adequate level. When an employee is placed on a CIP, the rating official will afford the employee a reasonable opportunity (a minimum of 60 days) to demonstrate acceptable contribution. These provisions also apply to an employee whose contribution deteriorates during the year. Employees who are on a CIP at the time pay determinations are made do not receive performance payouts or the annual GPI. An employee who receives an unacceptable OCS rating of record will not receive any portion of the GPI or RIF service credit until such time as his/her performance improves to the acceptable level and remains acceptable for at least 90 days. When the employee has performed acceptably for at least 90 days, the GPI will not be retroactive but will be granted at the beginning of the next pay period after the supervisor authorizes its payment. Once an employee has been afforded a reasonable opportunity to demonstrate adequate contribution but fails to do so, a reduction-in-pay (which may include a change to a lower pay band level and/or reassignment), or removal action may be proposed. If the employee's contribution increases to an acceptable level and is again determined to deteriorate in any factor within two years from the beginning of the opportunity period, actions may be initiated to effect reduction in pay or removal with no additional opportunity to improve. If an employee has contributed acceptably for two years from the beginning of an opportunity period, and the employee's overall contribution once again declines to an inadequate level, the employee will be afforded an additional opportunity to demonstrate adequate contribution before it is determined whether or not to propose a reduction in pay or removal. An employee whose reduction in pay or removal is proposed is entitled to a 30-day advance notice of the proposed action that identifies specific instances of inadequate contribution by the employee on which the action is based. The employee will be afforded a reasonable time to answer the notice of proposed action orally and/or in writing. A decision to reduce pay or remove an employee for inadequate contribution may be based only on those instances of inadequate contribution that occurred during the two-year period ending on the date of issuance of the proposed action. The employee will be issued written notice at or before the time the action will be effective. Such notice will specify the instances of inadequate contribution by the employee on which the action is based and will inform the employee of any applicable appeal or grievance rights. All relevant documentation concerning a reduction in pay or removal that is based on inadequate contribution will be preserved and made available for review by the affected employee or a designated representative. At a minimum, the records will consist of a copy of the notice of proposed action; the written answer of the employee or a summary when the employee makes an oral reply; and the written notice of decision and the reasons thereof, along with any supporting material including documentation regarding the opportunity afforded the employee to demonstrate adequate contribution. 8. Base Pay Increases and Bonuses The payouts made to employees from the pay pool may be a mix of base pay increases and/or one-time bonuses, such that all of the allocated funds are disbursed as intended. To continue to provide performance incentives while also ensuring cost discipline, base pay increases may be limited. 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. 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. In addition, a pay pool manager may request approval from the TARDEC Director for use of an Extraordinary Achievement Recognition. Such recognition grants a base pay increase and/or bonus to an employee. The funds available for an Extraordinary Achievement Recognition are separately funded within the constraints of the budget. 9. Awards To provide additional flexibility in motivating and rewarding individuals and groups, some portion of the award budget will be reserved for special acts and other categories as they occur. Awards may include, but are not limited to, special acts, patents, suggestions, on-the-spot, and time-off. The funds available to be used for traditional 5 U.S.C. awards are separately funded within the constraints of the laboratory's budget. While not directly linked to the CCAS system, this additional flexibility is important to encourage outstanding accomplishments and innovation in accomplishing the diverse mission of TARDEC. Additionally, to foster and encourage teamwork among its employees, organizations may give group awards. The delegation of awards authority is an internal Army decision and will be considered as such. 10. Reverse Feedback Employee feedback to supervisors is considered essential for the success of the TARDEC CCAS system. A feedback instrument for subordinates to anonymously evaluate the effectiveness of their supervisors is being developed and shall be implemented as part of the demonstration project. Supervisors and their managers will be provided the results of that feedback in a format that does not identify individual raters or ratings. The data will be aggregated into a summary and used to establish both personal and organizational performance development goals. The use of this type of instrument will help focus attention on desired leadership behaviors, structure the feedback in a constructive manner, and offset the power imbalance that often prevents supervisors from getting useful feedback from their employees. 11. Adverse Actions Except where specifically waived or modified in this plan, adverse action procedures under 5 CFR part 752 remain unchanged. 12. Grievance of Overall Contribution Score An employee may grieve the OCS received under the CCAS system. Non-bargaining unit employees, and bargaining unit employees covered by a negotiated grievance procedure that does not permit grievances over performance ratings, must file under administrative grievance procedures. Bargaining unit employees whose negotiated grievance procedures cover performance rating grievances must file under those negotiated procedures. Contribution payout amounts resulting from OCS cannot be grieved. D. Hiring Authority 1. Qualifications The qualifications required for placement into a position in a pay band within an occupational family career path will be determined using the OPM Operating Manual for Qualification Standards for GS Positions. Since the pay bands are anchored to the GS grade levels, the minimum qualification requirements for a position will be those corresponding to the lowest GS grade incorporated into that pay band. For example, for a position in the E&S occupational family 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 Operating Manual for Qualification Standards for GS Positions, when determined to be critical to successful job performance. These factors will 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. Delegated Examining Competitive service positions will be filled through Merit Staffing, direct-hire authority, Delegated Examining, or other sources. Where delegated to the laboratory level, hiring authority will be exercised in accordance with the requirements of the delegation of authority. The Rule of Three will be eliminated. When there are no more than 15 qualified, eligible applicants and all are either preference eligibles or there are no preference eligibles, all will be immediately referred to the selecting official without rating and ranking. Rating and ranking will be required only when the number of qualified candidates exceeds 15 or there is a mix of preference and non-preference applicants. Statutes and regulations covering veterans' preference will be observed in the selection process and when rating and ranking are required. This project includes the authority to utilize the OPM Administrative Careers With America (ACWA) or successor procedures for occupational series which have been designated as having a testing requirement. This allows for the recruitment of entry level positions covered by the Business and Technical Occupational Family at the DE-II pay band. 3. Distinguished Scholastic Achievement Appointment This demonstration project establishes a Distinguished Scholastic Achievement Appointment using an alternative examining process which provides the authority to appoint undergraduates and graduates through the doctoral level to professional positions at the equivalent of GS-7 through GS-11, and GS-12 positions. At the undergraduate level, candidates may be appointed to positions at a base pay level no greater than the equivalent of GS-7, step 10, provided that: (1) They meet minimum standards for the positions as published in OPM's Operating Manual “Qualification Standards for General Schedule Positions” plus any selective factors stated in the vacancy announcement; (2) The occupation has a positive education requirement; and (3) The candidate has a cumulative grade point average (GPA) of 3.5 or better (on a 4.0 scale) in those courses in those fields of study that are specified in the Qualifications Standards for the occupational series. Appointments may also be made at the equivalent of GS-9 through GS-12 on the basis of graduate education and/or experience for those candidates with a GPA of 3.5 or better (on a scale of 4.0) for graduate level courses in the field of study required for the occupation. Veterans' preference procedures will apply when selecting candidates under this authority. Preference eligibles who meet the above criteria will be considered ahead of nonpreference eligibles. In making selections, to pass over any preference eligible(s) to select a nonpreference eligible requires approval under current pass-over or objection procedures. Priority must also be given to displaced employees as may be specified in OPM and DoD regulations. 4. Direct Hire Authority for Candidates With Advanced Degrees for Scientific and Engineering Positions a. Background: The TARDEC has an urgent need for direct hire authority to appoint qualified candidates possessing an advanced degree to scientific and engineering positions. The market is extremely competitive with industry and academia for the small supply of highly-qualified and security clearable candidates with a Masters Degree or Ph.D. in science or engineering. There are 35,000 scientists and engineers employed in the DoD laboratories; 27% hold Masters Degrees, while 10% are in possession of a Ph.D. The TARDEC employs around 1,427 scientists and engineers; 21% holding Masters Degrees, while 2% percent are in possession of a Ph.D. Over the next five years, the TARDEC plans to hire approximately 500 of the country's best and brightest scientists and engineers (S&Es) just to keep pace with attrition. This number does not include the impact that actions such as Base Realignment and Closure may have on the attrition of S&Es from the TARDEC. Statistics indicate that the available pool of advanced degree, clearable candidates is substantially diminished by the number of non-U.S. citizens granted degrees by U.S. institutions. For instance, in 2006, 20% of Masters Degrees in science and over 35% of Ph.D.s in science were awarded to temporary residents. It is expected that this hiring authority, together with streamlined recruitment processes, will be very effective in hiring candidates possessing a Masters or Ph.D. and accelerating the hiring process. For instance, under a similar authority found in the NDAA for FY 2009, section 1108, Public Law 110-417, October 28, 2009, one STRL had fifteen Ph.D. selectees in 2009 for the sixteen vacancies for which they were using this hiring authority. Another STRL, using this expedited hiring authority in calendar year 2009, made thirty firm hiring offers in an average of thirteen days from receipt of paper work in the Human Resources Office. Of these thirty selectees, twenty-three possessed Ph.D.s. b. Definitions: (1) Scientific and engineering positions are defined as all professional positions in scientific and engineering occupations (with a positive education requirement) utilized by the laboratory. (2) An advanced degree is a Master's or higher degree from an accredited college or university in a field of scientific or engineering study directly related to the duties of the position to be filled. (3) Qualified candidates are defined as candidates who: (a) Meet the minimum standards for the position as published in OPM's operating manual, “Qualification Standards for General Schedule Positions,” or the laboratory's demonstration project qualification standards specific to the position to be filled; (b) Possess an advanced degree; and (c) Meet any selective factors. (4) “Employee” is defined by section 2105 of title 5, U.S.C. c. Provisions: (1) Use of this appointing authority must comply with merit system principles when recruiting and appointing candidates with advanced degrees to covered occupations. (2) Qualified candidates possessing an advanced degree may be appointed without regard to the provisions of subchapter 1 of chapter 33 of title 5, United States Code, other than sections 3303, 3321, and 3328 of such title. (3) The hiring threshold for this authority shall be consistent with DoD policy and legislative language as expressed in any National Defense Authorization Act addressing such. (4) Positions and candidates must be counted on a full-time equivalent basis. (5) Science and engineering positions that are filled as of the close of the fiscal year are those positions encumbered on the last day of the fiscal year. (6) When completing the personnel action, the following will be given as the authority for the Career-Conditional, Career, Term, Temporary, or special demonstration project appointment authority: Section 1108, NDAA for FY 09. (7) Evaluation of this hiring authority will include information and data on its use, such as numerical limitation, hires made, how many veterans hired, declinations, difficulties encountered, and/or recognized efficiencies. 5. Legal Authority For actions taken under the auspices of this demonstration project, the legal authorities, Public Law 103-337, as amended, and Public Law 111-84 will be used. For all other actions, the nature of action codes and legal authority codes prescribed by OPM, DoD, or DA will continue to be used. 6. Modified Term Appointments TARDEC conducts a variety of projects that range from three to six years. The current four-year limitation on term appointments for competitive service employees often forces the termination of these employees prior to completion of projects they were hired to support. This disrupts the research and development process and affects the organization's ability to accomplish the mission and serve its customers. TARDEC will continue to have career and career-conditional appointments and temporary appointments not-to-exceed one year. These appointments will use existing authorities and entitlements. Under the demonstration project, TARDEC will have the added authority to hire individuals under a modified term appointment. These appointments will be used to fill positions for a period of more than one year, but not more than a total of five years when the need for an employee's services is not permanent. The modified term appointments differ from term employment as described in 5 CFR 316 in that they may be made for a period not to exceed five, rather than four years. The TARDEC Director is authorized to extend a term appointment one additional year. Employees hired under the modified term appointment authority are in a non-permanent status, but may be eligible for non-competitive conversion to career or career-conditional appointments. To be converted, the employee must: a. Have been selected for the term position under competitive procedures, with the announcement specifically stating that the individual(s) selected for the term position may be eligible for conversion to a career or career-conditional appointment at a later date; b. Have served two years of continuous service in the term position; and c. Have not been placed on a CIP. Employees serving under term appointments at the time of conversion to the demonstration project will be converted to the new modified term appointments provided they were hired for their current positions under competitive procedures. These employees will be eligible for conversion to career-conditional or career appointments if they: (1) Have served two years of continuous service in the term position; (2) Are selected under merit promotion procedures for the permanent position; and (3) Have not been placed on a CIP. Time served in term positions prior to conversion to the modified term appointment is creditable, provided the service was continuous. 7. Initial Probationary Period The initial probationary period will not be less than one year and will not exceed three years for all newly hired employees as defined in 5 CFR 315. The specific probationary period will be defined and controlled by the TARDEC Director. The purpose of the probationary period is to allow supervisors an adequate period of time to fully evaluate an employee's ability to complete a cycle of work and to fully assess an employee's contribution and conduct. All other features of the current probationary period are retained including the potential to remove an employee without providing the full substantive and procedural rights afforded a non-probationary employee. These provisions only apply to those employees who have been appointed under the authority of this demonstration project. 8. Termination of Initial Probationary Period Employees The probationary or trial period is designed to give supervisors the opportunity to assess how well an employee can perform the duties of a job and if the employee is otherwise well suited for the position. Probationary employees may be terminated for any lawful reason including, but not limited to, failure to demonstrate proper conduct, technical competency, and/or acceptable contribution for continued employment. They may also be terminated for conditions arising before employment. When a supervisor decides to terminate an employee during the probationary period, the supervisor shall terminate the employee's services by written notification stating the reasons for termination and the effective date of the action. The information in the notice shall, at a minimum, outline the supervisor's reasons for termination. 9. Supervisory Probationary Periods New supervisors, that is, those who have not previously completed a supervisory probationary period, will be required to complete a one-year probationary period for the initial appointment to a supervisory position. An additional supervisory probationary period of one year may be required when an employee is officially assigned to a different supervisory position that constitutes a major change in supervisory responsibilities from any previously held supervisory position. If, during a supervisory probationary period, the decision is made to return the employee to a non-supervisory position for reasons related to supervisory performance, the employee will be returned to a comparable position of no lower base pay than the position from which promoted or reassigned. 10. Voluntary Emeritus Corps Under the demonstration project, the Director will have the authority to offer retired or separated employees voluntary positions. The Director may redelegate this authority. Voluntary Emeritus Corps assignments are not considered employment by the Federal government (except for purposes of injury compensation). Thus, such assignments do not affect an employee's entitlement to buyouts or severance payments based on an earlier separation from Federal service. The Voluntary Emeritus Corps will ensure continued quality services while reducing the overall salary line by allowing higher paid employees to accept retirement incentives with the opportunity to retain a presence in the TARDEC community. The program will be beneficial during manpower reductions, as employees accept retirement and return to provide a continuing source of corporate knowledge and valuable on-the-job training or mentoring to less experienced employees. To be accepted into the Volunteer Emeritus Corps, a volunteer must be recommended by a TARDEC manager to the TARDEC Director or delegated authority. Not everyone who applies is entitled to an emeritus position. The responsible official will document acceptance or rejection of the applicant. For acceptance, documentation must be retained throughout the assignment. For rejection, documentation will be maintained for two years. To ensure success and encourage participation, the volunteer's Federal retirement pay (whether military or civilian) will not be affected while serving in a voluntary capacity. Retired or separated Federal employees may accept an emeritus position without a break or mandatory waiting period. Voluntary Emeritus Corps 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 volunteers may be required to submit a financial disclosure form annually. The same rules that currently apply to source selection members will apply to volunteers. An agreement will be established among the volunteer, the responsible official, and the Civilian Personnel Advisory Center. The agreement must be finalized before the assumption of duties and shall include the following: a. Statement that the voluntary assignment does not constitute an appointment in the Civil Service, is without compensation, and the volunteer waives any claims against the Government based on the voluntary assignment; b. Statement that the volunteer will be considered a Federal employee only for the purpose of injury compensation; c. Volunteer's work schedule; d. Length of agreement (defined by length of project or time defined by weeks, months, or years); e. Support provided by the organization (travel, administrative support, office space, and supplies); f. Statement of duties; g. Statement providing that 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 volunteer; h. Provision allowing either party to void the agreement with two working days written notice; i. Level of security access required by the volunteer (any security clearance required by the position will be managed by the employing organization); j. Provision that any publication(s) resulting from his/her work will be submitted to the Director for review and approval; k. Statement that the volunteer accepts accountability for loss or damage to Government property occasioned by his/her negligence or willful action; l. Statement that his/her activities on the premises will conform to the regulations and requirements of the organization; m. Statement that the volunteer will not release any sensitive or proprietary information without the written approval of the employing organization and further agrees to execute additional non-disclosure agreements as appropriate, if required, by the nature of the anticipated services; n. Statement that the volunteer will not disclose any inventions made in the course of work performed at the TARDEC. The Director has the option to obtain title to any such invention on behalf of the U.S. Government. Should the Director elect not to take title, the TARDEC shall at a minimum 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; and o. Statement that he/she agrees to comply with designated mandatory training. Exceptions to the provisions in this procedure may be granted by the Director on a case-by-case basis. E. Internal Placement 1. Promotion A promotion is the movement of an employee to a higher pay band in the same occupational family career path or to another pay band in a different occupational family career path, wherein the pay band in the new occupational family has a higher maximum base pay than the band from which the employee is moving. Positions with known promotion potential to a higher band within an occupational family career path will be identified when they are filled. Movement from one occupational family to another will depend upon individual competencies, qualifications, and the needs of the organization. Supervisors may consider promoting employees at any time, since promotions are not tied to the CCAS system. Progression within a pay band is based upon contribution/performance base pay increases; as such, these actions are not considered promotions and are not subject to the provisions of this section. Except as specified below, promotions will be processed under competitive procedures in accordance with Merit System Principles and requirements of the local merit promotion plan. 2. Reassignment A reassignment is the movement of an employee from one position to a different position within the same occupational family and pay band or to another occupational family and pay band wherein the pay band in the new family has the same maximum base pay. The employee must meet the qualifications requirements for the occupational family and pay band. Employees may be eligible for an increase to base salary upon temporary or permanent reassignment as described in this section. A decision to increase an employee's pay under this section will be based upon business rules that will define criteria necessary to justify a base pay increase. Examples of criteria may include, but are not limited to, one or more of the following factors: a. A determination that an employee's responsibilities will significantly increase; b. Critical mission or business requirements; c. Need to advance multi-functional competencies; d. Labor market conditions, e.g., availability of candidates and labor market rates; e. Reassignment from a nonsupervisory to a supervisory position; f. Employee's past and anticipated performance and contribution; g. Physical location of position; h. Specialized skills, knowledge, or education possessed by the employee in relation to those required by the position; and i. Salaries of other employees in the organization performing similar work. When an employee is reassigned within his/her current pay band or to a comparable pay band, an authorized management official will set base pay at an amount no less than the employee's current base pay and may increase the employee's current base pay by up to 6 percent. If the employee's current base pay exceeds the maximum of the new pay band, no increase is provided, and the employee's rate will be set at that maximum rate. There is no limit to the number of times an employee can be reassigned, but local business rules will be established to monitor and control all cases that receive a reassignment base pay change to ensure fairness and consistency across the workforce. Reassignment base pay thresholds may be modified or increased by internal business rules, policies, or procedures as organizational experience dictates. 3. Demotion or Placement in a Lower Pay Band A demotion is a placement of an employee into a lower pay band within the same occupational family or placement into a pay band in a different occupational family with a lower maximum base pay. 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 RIF procedures). 4. Simplified Assignment Process Today's environment of downsizing and workforce fluctuations mandates that the organization have maximum flexibility to assign duties and responsibilities to individuals. Pay banding can be used to address this need, as it enables the organization to have maximum flexibility to assign an employee with either no change or an increase in base pay within broad descriptions consistent with the needs of the organization and the individual's qualifications and level. Subsequent assignments to projects, tasks, or functions anywhere within the organization requiring the same level, area of expertise, and qualifications would not constitute an assignment outside the scope or coverage of the current position description. For instance, a technical expert could be assigned to any project, task, or function requiring similar technical expertise. Likewise, a manager could be assigned to manage any similar function or organization consistent with that individual's qualifications. This flexibility allows broader latitude in assignments and further streamlines the administrative process and system while providing management the option of granting additional base pay in recognition of more complex work or broader scope of responsibility. 5. Details The temporary assignment of an employee to a different demonstration project position for a specific period when the employee is expected to return to his or her regular duties at the end of an assignment. (An employee who is on detail is considered for pay and strength purposes to be permanently occupying his or her regular position.) 6. Exceptions to Competitive Procedures The following actions are excepted from competitive procedures: a. Re-promotion to a position which is in the same pay band or GS equivalent and occupational family as the employee previously held on a permanent basis within the competitive service. b. Promotion, reassignment, demotion, transfer, or reinstatement to a position having promotion potential no greater than the potential of a position an employee currently holds or previously held on a permanent basis in the competitive service. c. A position change permitted by reduction-in-force procedures. d. Promotion without current competition when the employee was appointed through competitive procedures to a position with a documented career ladder. e. A temporary promotion or detail to a position in a higher pay band of 180 days or less. f. A promotion due to the reclassification of positions based on accretion (addition) of duties. g. A promotion resulting from the correction of an initial classification error or the issuance of a new classification standard. h. Consideration of a candidate who did not receive proper consideration in a competitive promotion action. i. Impact of person in the job and Factor IV process (application of the Research Grade Evaluation Guide, Equipment Development Grade Evaluation Guide, Part III, or similar guides) promotions. F. Pay Administration 1. General Pay administration policies will be established by the Personnel Management Board. These policies will be exempt from Army Regulations or RDECOM local pay fixing policies, but will conform to basic governmental pay fixing policy. Employees whose performance is acceptable may be eligible for the full annual general pay increase and the full locality pay. TARDEC may make full use of recruitment, retention, and relocation payments as provided for by OPM under 5 U.S.C. and 5 CFR pay flexibilities unless waived by this FRN. 2. Pay and Compensation Ceilings An employee's total monetary compensation paid in a calendar year may not exceed the rate of pay for Level I of the Executive Schedule to be consistent with 5 CFR 530.201 and consistent with 5 U.S.C. 5307 and 5 CFR 530, subpart B. In addition, each pay band will have its own base pay ceiling. Base pay rates for the various pay bands will be linked to the OCS of the CCAS system. Other than where a retained rate applies, base pay will be limited to the maximum base pay payable for each pay band. 3. Pay Setting for Appointment Upon initial appointment, the individual's base pay may be set at the lowest base pay in the pay band or anywhere within the pay band level 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, experience, or any combination thereof that is pertinent to the position in which the employee is being placed. Guidance on pay setting for new hires will be established by the Personnel Management Board. 4. Highest Previous Rate (HPR) HPR will be considered in placement actions authorized under rules similar to the HPR rules in 5 CFR 531.221. Use of HPR will be at the supervisor's discretion; but if used, HPR is subject to policies established by the Personnel Management Board. 5. Pay Setting for Promotion The minimum base pay increase upon promotion to a higher pay band will be six percent or the minimum base pay rate of the new pay band, whichever is greater. In no case will the increase exceed the maximum base pay for the pay band. The maximum base pay increase for promotion may be exceeded when necessary to allow for the minimum base pay increase. When a temporary promotion is terminated, the employee's pay entitlements will be re-determined based on the employee's position of record, with appropriate adjustments to reflect pay events during the temporary promotion, subject to the specific policies and rules established by the Personnel Management Board. In no case may those adjustments increase the base pay for the position of record beyond the applicable pay range maximum base pay rate. 6. Pay Setting for Reassignment A reassignment may be effected without a change in base pay. However, a base pay increase may be granted where a reassignment significantly increases the complexity, responsibility, and authority or for other compelling reasons. Such an increase is subject to the specific guidelines established by the Personnel Management Board. 7. Pay Setting for Demotion or Placement in a Lower Pay Band Employees demoted for cause (performance or conduct) are not entitled to pay retention and will receive a minimum of a five percent decrease in base pay. Employees demoted for reasons other than cause ( e.g., erosion of duties, reclassification of duties to a lower pay band, application under competitive announcements or at the employee's request, or placement actions resulting from RIF procedures) may be entitled to pay retention in accordance with the provisions of 5 U.S.C. 5363 and 5 CFR 536, except as waived or modified in section IX of this plan. Employees who are on a CIP at the time base pay determinations are made do not receive contribution payouts or the general pay increase. This action may result in a base pay that is identified in a lower pay band. This occurs because the minimum rate of base pay in a pay band increases as the result of the general pay increase (5 U.S.C. 5303). 8. Supervisory and Team Leader Pay Adjustments a. Supervisory and team leader pay adjustments may be approved by the TARDEC Director based on the recommendation of the Personnel Management Board to compensate employees with supervisory or team leader responsibilities. Only employees in supervisory or team leader positions as defined by the OPM GS Supervisory Guide or GS Leader Grade Evaluation Guide may be considered for the pay adjustment. These pay adjustments are funded separately from performance pay pools. These pay adjustments are increases to base pay, ranging up to ten percent of that pay rate for supervisors and up to five percent of that pay rate for team leaders. Pay adjustments are subject to the constraint that the adjustment may not cause the employee's base pay to exceed the pay band maximum base pay. Criteria to be considered in determining the base pay increase percentage include: (1) Needs of the organization to attract, retain, and motivate high quality supervisors/team leaders; (2) Budgetary constraints; (3) Years and quality of related experience; (4) Relevant training; (5) Performance appraisals and experience as a supervisor/team leader; (6) Organizational level of position; and (7) Impact on the organization. a. The pay adjustment will not apply to employees in Pay Band V of the E&S occupational family. b. After the date of conversion into the demonstration project, a pay adjustment may be considered under the following conditions: (1) New hires into supervisory/team leader positions will have their initial rate of base pay set at the supervisor's discretion within the pay range of the applicable pay band. This rate of pay may include a pay adjustment determined by using the ranges and criteria outlined above. (2) An employee selected for a supervisory/team leader position that is within the employee's current pay band may also be considered for a base pay adjustment. If a supervisor/team leader is already authorized a base pay adjustment and is subsequently selected for another supervisor/team leader position within the same pay band, then the base pay adjustment will be re-determined. (3) Existing Supervisors/Team Leaders will be converted at their existing base rate of pay and may be eligible for a base pay adjustment upon review of the Personnel Management Board following the conversion. c. The supervisor/team leader pay adjustment will be reviewed annually, with possible increases or decreases based on the appraisal scores for the performance element, Team/Project Leadership or Supervision/EEO. The initial dollar amount of a base pay adjustment will be removed when the employee voluntarily leaves the position. The cancellation of the adjustment under these circumstances is not an adverse action and is not subject to appeal. If an employee is involuntarily removed from a non-probationary supervisory/team leader position for unacceptable performance or conduct, the base pay adjustment will be removed under adverse action procedures. However, if an employee is involuntarily removed from a non-probationary supervisory/team leader position for conditions other than unacceptable performance or conduct, then pay retention will follow current law and regulations at 5 U.S.C. 5362 and 5363 and 5 CFR part 536, except as waived or modified in section IX. 9. Supervisory and Team Leader Pay Differentials Super [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2011-4932. Public record. Not legal advice.