Proposed Laboratory Personnel Management Demonstration Project; Department of the Army, U.S. Army Medical Research and Materiel Command, Fort Detrick, Frederick, Maryland

SUMMARY: Title VI of the Civil Service Reform Act, 5 U.S.C. 4703,

authorizes the Office of Personnel Management (OPM) to conduct

demonstration projects that experiment with new and different personnel

management concepts to determine whether such changes in personnel

policy or procedures would result in improved Federal personnel

management.

Public Law 103-337, October 5, 1994, permits the Department of

Defense (DOD), with the approval of the OPM, to carry out personnel

demonstration projects generally similar in nature to the China Lake

demonstration project at DOD Science and Technology (S&T) Reinvention

Laboratory sites. The Army is proposing demonstration projects

initially to cover five of its S&T Reinvention Laboratories: the Army

Research Laboratory; the Missile Research, Development, and Engineering

Center; the Aviation Research, Development, and Engineering Center; the

Medical Research and Materiel Command; and the Waterways Experiment

Station. This proposal is for the Medical Research and Materiel Command

(MRMC).

DATES: To be considered, written comments must be submitted on or

before May 20, 1997; two public hearings will be scheduled as follows:

(1) April 21, 1997, at 10:00 a.m., at Fort Detrick, Maryland. (2) April

21, 1997, at 1:00 p.m by Video Teleconference (VTC) and/or conference

calls from Fort Detrick, Maryland covering all MRMC sites

geographically located outside of the Fort Detrick, Maryland commuting

area. At the time of the hearings, interested persons or organizations

may present their written or oral comments for the April 21, 1997

hearing or oral comments for the VTC/conference call hearing on the

proposed demonstration project. The hearings will be informal.

Anyone wishing to testify should contact the person listed under

FOR FURTHER INFORMATION CONTACT, and state the hearing location and

date, so that OPM can plan the hearings and provide sufficient time for

all interested persons and organizations to be heard. Priority will be

given to those on the schedule, with others speaking in any remaining

available time. Each speaker's presentation will be limited to 10

minutes. Written comments may be submitted to supplement oral testimony

during the public comment period.

ADDRESSES: Comments may be mailed to Fidelma A. Donahue, U.S. Office of

Personnel Management, 1900 E Street, NW, Room 7460, Washington, DC

20415; the public hearings will be held at the U.S. Army Research and

Material Command, Strough Auditorium, 504 Scott Street, Building 611,

Fort Detrick, Maryland; and, the VTC/conference call hearings will be

conducted at the U.S. Army Research and Material Command, Strough

Auditorium, 504 Scott Street, in Building 810, Conference Rooms 1 and

2, Fort Detrick, Maryland.

FOR FURTHER INFORMATION CONTACT: (1) On proposed demonstration project:

Ms. Carol Gartrell, U.S. Army Medical Research and Materiel Command,

ATTN: MCMR-RMP, 504 Scott Street, Fort Detrick, Maryland 21702-5012,

phone 301-619-7255.

(2) On proposed demonstration project and public hearings: Fidelma

A. Donahue, U.S. Office of Personnel Management, 1900 E Street, NW,

Room 7460, Washington, DC 20415, phone 202-606-1138.

SUPPLEMENTARY INFORMATION: Since 1966, numerous 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. The proposed project

involves simplified job classification, pay banding, pay-for-

performance management system, streamlined hiring processes, expanded

employee developmental opportunities, and modified Reduction-in-Force

(RIF) procedures.

Office of Personnel Management

James B. King,

Director

Table of Contents

I. Executive Summary

ll. Introduction

A. Purpose

B. Problems with the Present System

C. Changes Required/Expected Benefits

D. Participating Organization

E. Participating Employees

F. Labor Participation

G. Project Design

H. Personnel Management Board

Ill. Personnel System Changes

A. Broadbanding

B. Classification

C. Pay-for-Performance Management System

D. Hiring and Appointment Authorities

E. Expanded Developmental Opportunities Program

F. Revised Reduction-In-Force (RIF) Procedures

IV. Training

V. Conversion

VI. Project Duration

VII. Evaluation Plan

VIII. Demonstration Project Costs

IX. Required Waivers to Law and Regulation

Appendix A: Occupational Series by Occupational Family

Appendix B: Project Evaluation and Oversight

Appendix C: Performance Elements

Appendix D: Benchmark Performance Standards

I. Executive Summary

This project was designed by the Department of the Army (DA), with

participation of and review by the Department of Defense (DOD) and the

Office of Personnel Management (OPM). The purpose of the project is to

achieve the best workforce for the Medical Research & Materiel Command

(MRMC) mission, adjust the workforce for change, and improve workforce

quality.

The foundations of this project are based on the concept of linking

performance to pay for all covered positions; simplifying paperwork and

the processing of classification and other personnel actions;

emphasizing partnerships among management, employees and unions

representing covered employees; and delegating classification and other

authorities to line managers. Additionally, the research intellect of

the MRMC workforce will be revitalized through the use of expanded

developmental opportunities. The use of these expanded opportunities

will reinvigorate the creative intellect of the research and

development community.

Development and execution of this project will be in-house budget

neutral, based on a baseline of September 1995 in-house costs and

consistent with the DA plan to downsize laboratories. Army managers at

the DOD S&T Reinvention Laboratory sites will manage and control their

personnel costs to remain within established in-house budgets. An in-

house budget is a compilation of costs of the many diverse components

required to fund the day-to-day operations of a laboratory. These

components generally include pay of people (labor, benefits, overtime,

awards), training, travel, supplies, non-capital equipment, and other

costs depending on the specific function of the activity.

This project will be under the joint sponsorship of the Assistant

Secretary of the Army for Research, Development

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and Acquisition and the Assistant Secretary of the Army for Manpower

and Reserve Affairs. The Commander , U.S. Army Medical Command

(MEDCOM), will execute and manage the project. Project oversight within

the Army will be achieved by an executive steering committee made up of

top-level executives, co-chaired by the Deputy Assistant Secretary of

the Army for Research and Technology and the Deputy Assistant Secretary

of the Army (Civilian Personnel Policy)/Director, Civilian Personnel.

Oversight external to the Army will be provided by DOD and OPM.

II. Introduction

A. Purpose

The purpose of the project is to demonstrate that the effectiveness

of DOD laboratories can be enhanced by allowing greater managerial

control over personnel functions and, at the same time, expanding the

opportunities available to employees through a more responsive and

flexible personnel system. The quality of DOD laboratories, their

people, and products has been under intense scrutiny in recent years.

The perceived deterioration of quality is due, in substantial part, to

the erosion of control which line managers have over their human

resources. This demonstration, in its entirety, attempts to provide

managers, at the lowest practical level, the authority, control, and

flexibility needed to achieve quality laboratories and quality

products.

B. Problems with the Present System

The MRMC provides medical solutions for military requirements to

protect and sustain the force. To do this, its management must acquire

and retain an enthusiastic, innovative, and highly educated/trained

workforce. The MRMC 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.

Today, industry laboratories can make an offer of employment to a

promising new hire before the government can prepare the paperwork

necessary to begin the recruitment process.

Currently, jobs are described using a cumbersome classification

system that is overly complex and specialized. This hampers a manager's

ability to shape the workforce and match the positions while making

best use of the employees. Managers must be given local control of

positions and their classification to move both their employees and

vacancies freely within their organization to other lines of the

business activities to match the life cycle needs of supported

customers.

These issues work together to hamper supervisors in all areas of

human resource management. Hiring restrictions and overly complex job

classifications, coupled with poor tools for rewarding and motivating

employees and a system that does not assist managers in removing poor

performers, builds stagnation in the workforce and wastes valuable

time.

C. Changes Required/Expected Benefits

This project is expected to demonstrate that a human resource

system tailored to the mission and requirements of the MRMC will result

in: (a) Increased quality in the total workforce and the products they

produce; (b) increased timeliness of key personnel processes; (c)

increased retention of high quality employees and increased non-

retention of poor quality employees; and (d) increased satisfaction

with the MRMC and its products by all customers served.

The MRMC demonstration project builds on the successful features of

demonstration projects at China Lake and the National Institute of

Standards and Technology (NIST). These demonstration projects have

produced impressive statistics on the job satisfaction for their

employees versus that for the federal workforce in general. Therefore,

in addition to expected benefits mentioned above, the MRMC

demonstration project expects to find more satisfied employees on many

aspects of the demonstration project including pay equity,

classification accuracy, and fairness of performance management. A full

range of measures will be collected during Project Evaluation (Section

VII).

D. Participating Organization

This demonstration project will cover approximately 1250 MRMC

civilian employees at all geographic sites within the United States. It

should be noted that many sites currently employ fewer than 10 people

and that the sites may change as the MRMC reorganizes, realigns, and

complies with Base Realignment and Closure Act requirements. Successor

organizations will continue coverage in the demonstration project.

Approximately 46 percent of covered employees are located at Fort

Detrick, Frederick, Maryland. The remaining employees are located at

the following sites: Aberdeen Proving Ground, Maryland; Falls Church,

Virginia; Fort Rucker, Alabama; Fort Sam Houston, Texas; Natick,

Massachusetts; Washington, DC; Tobyhanna Army Depot, Pennsylvania; Fort

Lee, Virginia; Tracy, California; Ogden, Utah; Brooks Air Force Base,

Texas; Dayton, Ohio; Tripler Army Medical Center, Hawaii; and Fort

Bragg, North Carolina. Additionally, the MRMC has some employees

participating in the Flexiplace Program who are geographically located

at Fort Collins, Colorado; Clarksville, Tennessee; and Jefferson,

Maryland.

E. Participating Employees

The demonstration project includes appropriated funded civilian

employees in the competitive and excepted service (to include non-

citizens hired in the absence of qualified citizens) paid under the

General Schedule (GS) and Scientific and Professional (ST) pay systems,

and DA Interns. Senior Executive Service (SES) employees, Federal Wage

System employees, and employees assigned to the GS-080 series and

presently covered by the Civilian Intelligence Personnel Management

System (CIPMS), will not be covered in the demonstration project.

Personnel added to the MRMC in like positions, either through

appointment, promotion, reassignment, change to lower grade or where

their functions and positions have been transferred into the MRMC, will

be converted to the demonstration project.

The personnel systems for 5 U.S.C. 3104 (ST) positions will change

only to the extent that 3104 positions are in the same performance

appraisal and awards systems as other positions. Classification,

staffing, compensation and reduction-in-force procedures, however, will

not change. 5 U.S.C. 3104 employees will not receive the pro rata share

payout upon completion of one year of coverage in the demonstration

project. Pay adjustments for their positions under the project will be

carried out in accordance with existing Federal rules pertaining to

3104 pay adjustments. (See 5 U.S.C. 5376)

F. Labor Participation

The National Federation of Federal Employees (NFFE) and the

American Federation of Government Employees (AFGE), represent

professional and nonprofessional GS employees at some sites within the

MRMC. The MRMC is continuing to fulfill its obligations to consult and/

or negotiate with the NFFE and AFGE, as appropriate, in accordance with

5 U.S.C. 4703 (F) and 7117. The participation with the NFFE, and AFGE

is within the spirit and intent of Executive Order 12871. The

bargaining units of MRMC not endorsing the demonstration project will

not participate.

[[Page 11678]]

G. Project Design

In October 1994, the MRMC began development of the specifics of

this personnel demonstration proposal. A Personnel Demonstration

Project Office was established and administrative support added in

April 1995. Briefings of the proposal were initially conducted for the

workforce at every participating subordinate activity with subsequent

briefings provided upon request by Commanders/Directors.

Status of the project is provided to subordinate activity

Commanders/Directors, usually on a weekly basis for dissemination to

all employees. An electronic mail address was established in the Fall

of 1994 and made available to all employees and managers for the

purpose of expressing opinions and/or obtaining specific information

about the project.

Review of the proposal and input by the MEDCOM, as well as critical

and extensive reviews by Headquarters DA, the Office of the Secretary

of Defense, and OPM since April 1995, have led to the current

configuration of the proposal.

H. Personnel Management Board

The MRMC intends to establish an appropriate balance between the

personnel management authority/accountability delegated to subordinate

activity Commanders/ Directors and MRMC management/oversight

responsibilities by establishing a Personnel Management Board (PMB).

The Chairperson and members will be appointed by the Commander MRMC,

and oversee/provide policy, guidelines and corrective action as

appropriate as subordinate activity Commanders/Directors execute the

following:

1. formulate and execute the civilian pay budget;

2. determine the composition of the pay-for-performance pay pools

in accordance with the guidelines of this proposal and internal

procedures;

3. administer funds allocation to pay pool managers;

4. determine hiring and promotion salaries as well as exceptions to

pay-for-performance salary increases;

5. provide guidance to pay pool managers;

6. manage the awards pools;

7. select participants for the Expanded Developmental Opportunities

Program, long term training, and any special developmental assignments;

8. adhere to guidelines concerning the promotion of employees into

salary ranges designated ``high grades'';

9. ensure in-house budget neutrality to include tracking of average

salaries, FTEs, etc.

10. contact the PMB designee for problem resolution, recommending

changes in policy/procedure, etc.

11. ensure that all employees are treated in a fair and equitable

manner in accordance with all policies, regulations, and guidelines

covering this demonstration project.

III. Personnel System Changes

A. Broadbanding

Occupational Families

Occupations at the MRMC will be grouped into occupational families.

Occupations will be grouped according to similarities in type of work

and customary requirements for formal training or credentials. The

common patterns of advancement within the occupations as practiced at

DOD Laboratories and in the private sector will also be considered. The

current occupations and grades have been examined, and their

characteristics and distribution have served as guidelines in the

development of the four occupational families described below.

Positions included in each occupational family are listed in Appendix

A.

1. Engineers and Scientists. This occupational family includes all

technical professional positions, such as positions in the biological,

physical and social sciences, medical, veterinary, mathematical, and

engineering fields. Ordinarily, specific course work or educational

degrees are required for these occupations.

2. E&S Technicians. This occupational family contains specialized

functions in fields that provide direct technical support to the

scientific/engineering effort. Positions in these occupations may or

may not require completion of formal college course work. However,

training and skills in the various specialties are generally required.

3. Administrative. This occupational family contains specialized

functions in such fields as management analysis, accounting, budgeting,

contracting, purchasing, legal, business and industry, library, quality

assurance, and supply. Special skills in administrative fields or

special degrees are required.

4. General Support. This occupational family is composed of

positions requiring special skills and knowledge, such as typing,

shorthand, or office automation skills, and job related experience.

Clerical work usually involves the processing and maintenance of

records. Assistant work requires knowledge of methods and procedures

within a specific administrative area. Support functions include

positions such as secretary, mail clerk, medical clerk, accounting

technician and supply technician.

Pay Bands

Each occupational family will be composed of discrete pay bands

(levels) corresponding to recognized advancement within the

occupations. These pay bands will replace grades. They will not be the

same for all occupational families. Each occupational family will be

divided into three to five pay bands, each pay band covering the same

pay range now covered by one or more grades. A salary overlap, similar

to the current overlap between GS grades, will be maintained.

Ordinarily, an individual will be hired at the lowest salary in a

pay band. Exceptional qualifications, specific organizational

requirements, or other compelling reasons may lead to a higher entrance

level within a band.

The MRMC broadbanding plan expands the broadbanding concept used at

China Lake and NIST by creating Pay Band V of the Engineers and

Scientists occupational family. This pay band is designed for senior

technical managers and senior scientists/engineers.

Current OPM guidelines covering the Senior Executive Service and

Scientific and Professional (ST) positions do not fully meet the needs

of MRMC. The SES designation is appropriate for executive level

managerial positions whose classification exceeds the GS-15 grade

level. The primary knowledges and abilities of SES positions relate to

supervisory and managerial responsibilities. Positions classified as ST

are designed for bench research scientists and engineers. OPM

guidelines state that the duties and responsibilities of ST positions

may only include minimal managerial or supervisory responsibility.

MRMC currently has many division/directorate chief positions that

have characteristics of both SES and ST classifications. Most division/

directorate chiefs in MRMC are responsible for supervising other GS-15

positions, such as branch chiefs, non-supervisory researcher scientists

and engineers. Most of these senior positions are classified at the GS-

15 level. MRMC management considers the primary requirement for

division/directorate chiefs to have knowledge of and expertise in the

specific scientific and technology areas related to their mission. The

ability to manage, while important, is considered secondary.

Historically, these positions have been filled by employees who possess

primarily scientific/engineering credentials and who are considered

experts in their field by the scientific

[[Page 11679]]

community. While it is clear these positions warrant classification

beyond the GS-15 level, attempts to classify most of the positions as

SES have been difficult because of the organizational structure of

MRMC. Classification of the positions as ST is also not an option

because the supervisory responsibilities inherent in division/

directorate chief positions cannot be ignored. MRMC has positions that

do not strictly conform to OPM definitions of either the SES or ST.

The purpose of Pay Band V is to overcome the difficulties

identified above by creating a category for two types of positions--the

senior technical manager (with full supervisory authority) and the

senior scientist engineer (less than full supervisory authority).

Current GS-15 division/directorate chiefs will convert into the

demonstration project at Pay Band IV. After conversion, they will be

reviewed against established criteria to determine if they should be

reclassified to Pay Band V. The proposed salary range is the same as

currently exists for ST positions (minimum of 120% of the minimum rate

of basic pay for GS-15 with a maximum of the basic rate of pay

established for level IV of the Executive Schedule). Vacant positions

in Pay Band V will be competitively filled to ensure that selections

are made from among the world's preeminent researchers and technical

leaders in the specialty fields. Panels of experts from the discipline

or an allied discipline that the recruitment action seeks to fill will

be created to assist in filling Pay Band V positions. Panel members

will be selected from senior military and civilian employees of the

MRMC, and an equal number of individuals of equivalent stature from

outside the activity to ensure impartiality, breadth of technical

expertise, and a rigorous and demanding review. The panel will apply

criteria developed largely from the current OPM Research Grade

Evaluation Guide for positions exceeding the GS-15 level. The same

procedure will be used for evaluating senior technical manager

positions however, the rating criteria will be adjusted to account for

the differences in the positions, such as greater emphasis on technical

program management and supervisory abilities.

The final component of Pay Band V is the management of all Pay Band

V assets. Specifically, this includes authority to classify, create,

abolish positions as circumstances warrant; recruit and reassign

employees in this pay band; set pay and to have their performance

appraised under this project's Pay for Performance System. This

authority will be executed within parameters to be established at the

DA level, to include controls on the numbers of Pay Band V positions

and recruitment/promotion criteria. The specific details regarding the

control and management of Pay Band V assets will be included in the

demonstration's operating procedures. The laboratory wants to

demonstrate increased effectiveness by gaining greater managerial

control and authority, consistent with merit, affirmative action, and

equal employment opportunity principles.

High-grade controls within the agency currently restrict movement

into high grade positions (GS-14/15). OPM definition for broadbanding

purposes is a position where the base pay exceeds that of a GS-13, Step

10. Until the high-grade controls are lifted, demonstration employees

will not be able to advance into the currently defined pay level of a

high-grade, unless a high-grade authorization is available. To

accommodate this, employees whose salary adjustment would place them

above the high-grade pay limit in activities where high-grade

authorizations are unavailable will receive permanent adjustments to

basic salary up to an amount equivalent to one dollar less than the

base of the defined high-grade pay structure. Any additional amount

granted under pay-for-performance will be paid as a one-time bonus

payment from pay-pool funds. This pattern of payout will continue until

high-grade authorizations become available.

The proposed pay bands for the occupational families and how they

relate to the current GS grades are shown in Figure 1. Application of

the Fair Labor Standards Act (FLSA) within each pay band is also shown

in Figure 1. This pay band concept has the following advantages:

1. It reduces the number of classification decisions required

during an employee's career.

2. It simplifies the classification decision-making process and

paperwork. A pay band covers a larger scope of work than a grade, and

thus will be defined in shorter and simpler language.

3. It supports delegation of classification authority to line

managers.

4. It provides a broader range of performance-related pay for each

level. In many cases, employees whose pay would have been frozen at the

top step of a grade will now have more potential for upward movement in

the broader pay band.

5. It prevents the progression of low performers through a pay band

by mere longevity, since job performance serves as the basis for

determining pay.

BILLING CODE 6325-01-P

[[Page 11680]]

[GRAPHIC] [TIFF OMITTED] TN12MR97.069

BILLING CODE 6325-01-C

Fair Labor Standards Act

The FLSA exemption and nonexemption determinations will be made

consistent with criteria found in 5 CFR part 551. Supervisors with

classification authority will make the determinations on a case-by-case

basis with reference to documentation in the operating procedures

manual and the advice and assistance of the Civilian Personnel Offices

(CPO)/Civilian Personnel Advisory Centers (CPAC)/Civilian Personnel

Operations Centers (CPOC). The generic position descriptions will not

be the sole basis for the determination. The basis for exemption/non-

exemption will be documented and attached to each description.

Exemption criteria will be narrowly construed and applied only to those

employees who clearly meet the spirit of the exemption. The basis for

determinations will be reviewed as a part of the performance review

process and when salary adjustments are warranted. Changes will be

documented and provided to the CPO/CPAC/CPOC, as appropriate.

Simplified Assignment Process

Today's environment of rightsizing and workforce transition

mandates that the MRMC have maximum flexibility to assign duties and

responsibilities to individuals. Broadbanding can be used to address

this need. As a result of the assignment to a particular level

descriptor, the organization will have maximum flexibility to assign an

employee with no change in pay, within broad descriptions consistent

with the needs of the organization, and the individual's qualifications

and rank or level. Subsequent assignments to projects, tasks, or

functions anywhere within the organization requiring the same level and

area of expertise, and qualifications would not constitute an

assignment outside the scope or coverage of the current level

descriptor, or benchmark position description.

Such assignments within the coverage of the generic descriptors are

accomplished without the need to process a personnel action. For

instance, a technical expert can 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 a broader latitude in assignments and further streamlines the

administrative process and system.

Promotions

A promotion is the movement of an employee to a higher pay band

within the same occupational family or to a pay band in a different

occupational family which results in an increase in the employee's

salary. Progression within a pay band is based upon performance pay

increases; as such, these actions are not considered promotions and are

not subject to the provisions of this section.

Promotions will be processed under competitive procedures in

accordance with merit principles and requirements. The following

actions are excepted from competitive procedures:

(a) Re-promotion to a position which is in the same pay band 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) Impact of person on the job, accretion of duties, and Factor IV

process (application of the Research Grade Evaluation Guide, Equipment

Development Grade Evaluation Guide or similar guides) promotions.

(g) A promotion resulting from the correction of an initial

classification error or the issuance of a new classification standard.

[[Page 11681]]

Link Between Promotion and Performance

To be promoted competitively or noncompetitively from one band to

the next, an employee must meet the minimum qualifications for the job

and have a current performance rating of ``B'' or better (see

Performance Evaluation) or equivalent under a different performance

management system.

B. Classification

Introduction

The objectives of the new classification system are to simplify the

classification process, make the process more serviceable and

understandable, and place more decision-making authority and

accountability with line managers. All positions listed in Appendix A

will be in the classification structure. Provisions will be made for

including other occupations as employment requirements change in

response to changing missions and technical programs.

Occupational Series

The present GS classification system has over 400 occupations (also

called series), which are divided into 22 groups. The occupational

series will be maintained. New series, established by OPM, may be added

as needed to reflect new occupations in the workforce. Appendix A lists

the occupational series currently represented at the MRMC by

occupational family.

Classification Standards

MRMC will use a classification system that is a modification of the

system now in use at the US Navy, Naval Command, Control and Ocean

Surveillance Center, San Diego, California. The present classification

standards will be used to create local benchmark position descriptions

for each pay band, reflecting duties and responsibilities comparable to

those described in present classification standards for the span of

grades represented by each pay band. There will be at least one

benchmark position description for each pay band. A supervisory

benchmark position description will be added to those pay bands that

include supervisory employees. Present titles and series will continue

to be used in order to recognize the types of work being performed and

educational backgrounds and requirements of incumbents. Locally

developed speciality codes and OPM functional codes will be used to

facilitate titling, making qualification determinations, and assigning

competitive levels to determine retention status.

Position Descriptions and Classification Process

The MRMC Commander will have delegated classification authority and

will redelegate this authority to subordinate activity Commanders/

Directors for redelegation to activity managers as appropriate. New

position descriptions will be developed to assist managers in

exercising delegated position classification authority. Managers will

identify the occupational family, job series, the functional code, the

speciality code, pay band level, and the appropriate acquisition codes.

The manager will document these decisions on a cover sheet similar to

the present DA Form 374. Speciality codes will be developed by Subject

Matter Experts (SMEs) to identify the special nature of work performed.

Functional codes are those currently found in the OPM Introduction to

the Classification Standards which defines certain kinds of activities,

e.g., Research, Development, Test and Evaluation, etc., and covers

Engineers & Scientists (E&S).

Classification Appeals

An employee may appeal the occupational family, occupational

series, or pay band of his or her position at any time. The employee

may accomplish this by exercising any of the following options: (a) The

employee must formally raise the areas of concern to supervisors in the

immediate chain of command, either verbally or in writing, (b) If the

employee is not satisfied with the supervisory response, the employee

may appeal to the appellate level within DoD or may appeal directly to

OPM, (c) If the employee elects to first appeal to DoD but is not

satisfied with this response, he/she may appeal to the Office of

Personnel Management. Appellate decisions from OPM are final.

The evaluation of a classification appeal is based on the MRMC

Personnel Demonstration Project Classification Standards.

C. Pay-for-Performance Management System

Performance Evaluation

Introduction

The performance appraisal system will link compensation to

performance through annual performance evaluations and performance

ratings. The performance appraisal system will allow optional use of

peer evaluation input and/or input from subordinates whenever

appropriate. The system will have the flexibility to be modified, if

necessary, as more experience is gained under the project. Details of

the system may be found in the implementing instructions.

Performance Objectives

Performance objectives are statements of job responsibilities based

on the work unit's mission, goals, and supplemental benchmark position

descriptions. Employees and supervisors will jointly develop

performance objectives which will reflect the types of duties and

responsibilities expected at the respective pay level. The performance

objectives, representing joint efforts of employees and their rating

chains, should be in place within 30 days from the beginning of each

rating period.

Performance Elements

New performance elements and rating forms will be designed to

implement a new scoring and rating system. The new performance

evaluation system will be based on critical performance elements

defined in Appendix C. All elements in the new performance evaluation

system are critical. Non-critical elements will not be used. Each

performance element is assigned a weight between a specified range. The

total weight of all elements in a performance plan is 100 points. The

supervisor assigns each element some portion of the 100 points in

accordance with its importance for mission attainment. These weights

will be developed along with employee performance objectives.

Mid-Year Review

A mid-year review between a supervisor and employee will be held to

determine whether objectives are being met and whether performance

objectives should be modified to reflect changes in planning, workload,

and resource allocation. Additional reviews may be held as deemed

necessary by the supervisor. The weights assigned to performance

elements will be changed, if necessary.

Performance Appraisal

A performance appraisal is scheduled for the final weeks of the

annual performance cycle, although an individual performance appraisal

may be conducted at any time after 60 days on approved standards. The

performance appraisal process brings supervisors and employees together

for formal discussions on performance and results in (1) written

appraisals, (2) performance ratings, (3) performance pay increases and/

or bonuses, (4) cash awards, and (5) other individual performance-

related actions, as appropriate. A performance appraisal

[[Page 11682]]

may consist of two meetings held between employee and supervisor: the

performance review meeting and the evaluation feedback meeting.

Performance Review Meeting Between Employee and Supervisor

The review meeting is to discuss job performance and

accomplishments. Supervisors do not assign scores, ratings, pay

increases, or awards at this meeting. The supervisor notifies the

employee of the review meeting in time to allow the employee to prepare

a list of accomplishments. Employees will be given an opportunity at

the meeting to give a personal performance assessment and describe

accomplishments. The supervisor and employee discuss job performance

and accomplishments in relation to the performance elements,

objectives, and planned activities established in the performance plan.

Evaluation Feedback Meeting Between Employee and Supervisor

In this second meeting between employee and supervisor, the

supervisor informs the employee of management's appraisal of the

employee's performance, the employee's performance score and rating,

and any recommended related pay increase, bonus, award, or other

personnel action. During this second meeting, the supervisor and

employee will discuss and document performance objectives for the next

rating period.

Performance Scores

Selection of the weighted points to assign to an employee's

performance is assisted by use of benchmark performance standards

(appendix D). Each benchmark performance standard describes the level

of performance associated with a particular point on a rating scale.

Supervisors may add supplemental standards to the performance plans of

the employees they supervise to further elaborate the benchmark

performance standards.

The overall score is the sum of the individual element scores.

Employees will receive an academic-type rating of ``A'', ``B'', ``C'',

or ``F'' depending upon the percentage of goal attainment. These

summary ratings are representative of Pattern E in Summary Level Chart

in 5 CFR 430.208(d)(1). This rating will become the rating of record,

and only those employees rated ``C'' or higher (any element rated less

than 50 percent is unacceptable performance) will be eligible to

receive performance-based pay increases and/or bonuses or retention

years credit for RIF. A rating of ``A'' will be assigned for scores of

85 to 100 points, ``B'' for scores of 70 through 84, ``C'' for scores

of 50 through 69, and ``F'' for scores of 0 through 49

[Note: An ``F'' constitutes an unacceptable rating]. The

academic-type ratings will be used to determine pay or bonus values

and to award additional RIF retention years as follows:

------------------------------------------------------------------------

RIF retention

Rating Compensation years added

------------------------------------------------------------------------

``A''.......................... 4 shares........... 10.

``B''.......................... 2 shares........... 7.

``C''.......................... 1 share............ 3 (SEE NOTE).

``F''.......................... 0.................. 0.

------------------------------------------------------------------------

Note: Only those employees rated ``C'' or higher (with no

element rated less than 50 percent) will be eligible to receive

performance-based pay increases and/or bonuses or retention years

credit for RIF retention.

Performance Based Actions

MRMC will implement a two step process to deal with poor

performers. This process may lead to involuntary separations with

grievance or appeal rights if the overall level of performance is below

that of a ``C'' rating or the employee receives less than 50 percent of

the assigned benchmark score in any element.

The process will begin with the recognition that an employee's

performance is unacceptable (any element rated less than 50 percent of

the assigned benchmark score), or that an employee receives an annual

rating of ``F''. The two steps are as follows: (1) performance

improvement plan (PIP), and (2) separation.

When the employee is determined to be performing below the ``C''

level, or below 50% of the assigned benchmark score in any element, the

supervisor and employee will develop a structured PIP that will be

monitored for a reasonable period of time.

If the employee fails to improve after this structured plan, the

employee will be given notice of proposed appropriate action. The

activity may consider a change in assignment or reduction in pay as

opposed to removal if the mission, organizational structure and

available resources warrant such action. The separated employee will

have subsequent due process recourse as a former employee. (Note:

Performance based adverse actions may be taken under 5 U.S.C., Chapter

75, rather than Chapter 43).

If, as a result of the PIP, an employee's performance improves to

the ``C'' or above level, or the 50% or above level in all assigned

benchmark level elements, prior to the end of the annual performance

cycle, the employee is appraised again at the end of the annual

performance cycle. If the employee attains an annual rating of ``C'' or

higher, an increase to base pay and/or bonus and RIF retention years

credit will be earned.

If, as a result of the PIP, an employee's performance improves to

the ``C'' or above level, or the 50% or above level in all assigned

benchmark level elements, after the end of the annual performance

cycle, employment continues but no increase to base pay and/or bonus or

RIF retention years credit are granted.

Employee Relations

Employees covered by the project will be evaluated under a

performance evaluation system that affords grievance rights comparable

to those provided currently. The MRMC will maintain the substantive and

procedural appeal rights currently afforded when taking action for

misconduct and poor performance.

Senior Executive Service and 5 U.S.C. 3104 (ST) Employees

Members of the SES will remain under the current SES performance

appraisal system. 5 U.S.C. 3104 (ST) employees will be included in the

project performance evaluation system, but will not be in the project

pay-for-performance system.

Awards

The MRMC currently has an extensive awards program consisting of

both internal and external awards. While not linked to the pay-for-

performance system, awards will continue to be given 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, and may be modified or expanded as appropriate. Major Army Command

(MACOM) and DOD awards and other honorary noncash awards will be

retained.

In an effort to foster and encourage team work among its employees,

a Commander/Director may allocate a sum of money to a team for

outstanding completion of a special task or significant achievement,

and the team may decide the individual distribution of the total

dollars among themselves.

Members of the SES will remain under their current awards system

and will not participate in the project performance recognition bonus

awards program. 5 U.S.C. 3104 (ST) employees will be eligible for cash

awards.

[[Page 11683]]

Pay Administration

Introduction

The objective is to establish a pay system that will improve the

ability of the MRMC to attract and retain quality employees. The new

system will be a pay-for-performance system and, when implemented, will

result in a redistribution of pay resources based upon individual

performance.

Pay-for-Performance

MRMC will use a simplified performance appraisal system that will

permit both the supervisor and the employee to focus on quality of the

work. The proposed system will permit the manager/supervisor to base

compensation on performance or value added to the goal of the

organization rather than on longevity and risk aversion. This system

will allow managers to withhold pay increases from nonperformers,

thereby giving the nonperformer the incentive to improve performance or

leave government service.

Pay-for-performance has two components: performance pay increases

(i.e. base pay increases) and/or bonuses. All covered employees will be

given the full amount of locality pay adjustments when they occur,

regardless of performance. The funding for performance pay increases

and/or bonuses is composed of money previously available for the annual

general increase, within-grade increases, quality step increases, and

promotions from one grade to another when the grades are now in the

same pay band. Additionally, funds will be obtained from salary

increases withheld for poor performance (see Performance Evaluation).

Performance Pay Pool

The funding in the performance pay pool will be used for base pay

increases and performance bonus pay. The payouts made to employees from

the performance pay pool may be a mix of base pay increases and bonus

payments, subject to the pay ceiling in the pay bands.

The Headquarters, MRMC Comptroller, in conjunction with each

subordinate activity Commander/Director, will calculate the total

performance pay pool and allocate pay pools to subordinate activities.

Each subordinate activity Commander/Director will allocate pay pools to

organizational units or teams as appropriate.

Performance Pay Increases and/or Performance Bonuses

A pay pool manager is accountable for staying within pay pool

limits. The pay pool manager assigns pay increases and/or bonuses to

individuals on the basis of an academic-type rating, the value of the

performance pay pool resources available, and the individual's current

basic rate of pay within a given pay band. A pay pool manager may

request approval from the Commander/Director or his/her designee to

grant a performance pay increase/performance bonus to an employee that

is higher than the compensation formula for that employee to recognize

extraordinary achievement or to provide accelerated compensation for

local interns.

A share value will be initially calculated for each individual

based upon a pay pool assignment that will be composed of monies

outlined previously. For illustration purposes, approximately 3 percent

of the value of the combined basic rates of pay of the assigned

employees will be used. A share will be calculated so that a pay pool

manager will not exceed the resources that are available in the pay

pool. The share value for an individual will be determined by a

relationship that considers the individual's current basic rate of pay

with respect to the maximum pay rate in the respective pay band. This

relationship is as follows:

[GRAPHIC] [TIFF OMITTED] TN12MR97.068

where:

Pool Value = 0.03 * SUM (SALk); K = 1 to n

n= number of employees in pay pool

N = Number of Shares (0-4) earned by an employee based on their

performance rating

SAL = An individual's basic rate of pay

SUM = The summation of the entities in parenthesis over the range

indicated

To illustrate the formula, the basic rates of pay of the 10

employees in a pay pool, who each earn $50,000 per year, total to

$500,000. The employees earned a total of 30 shares based on their

ratings (5 individuals earned an ``A'' rating, and 5 individuals earned

a ``B'' rating). The pay pool value is then 3 percent of the sum of

$500,000, or $15,000. The individual performance pay increase being

determined is for an individual who earns $50,000 per year and receives

a ``B'' on the appraisal, thus earning 2 shares. Using the formula, the

individual performance pay increase is calculated by multiplying the

pay pool value, $15,000, by the individual basic rate of pay, $50,000,

by the number of shares earned, 2. This product is divided by the sum

of the products of the individual basic rates of pay times the number

of shares earned, or 1,750,000. The resulting individual performance

pay increase is $1,000.00 for the year.

An annual performance pay increase could range between all of the

performance pay increase formula or none of it, depending on the

current pay of the employee. For example, a mid-point principle will be

used to determine performance pay increases. This principle requires

that employees in all pay bands must receive a B rating or higher to

advance their basic rate of pay beyond the mid-point dollar threshold

of their respective pay bands. If the performance pay increase formula

yields a dollar value for a C-rated employee that would increase their

basic rate of pay beyond the mid-point dollar threshold, then their

basic rate of pay will be adjusted to the mid-point dollar threshold

and the balance converted to a performance bonus. Once an employee has

progressed beyond the mid-point dollar threshold, future performance

pay increases will require a ``B'' rating or greater. If an employee

attains a ``C'' rating and is beyond the mid-point dollar threshold,

performance pay increases will be restricted to performance bonuses

only.

An annual performance pay increase could be all the compensation

formula or none of it, depending on the current basic rate of pay of

the employee. Annual performance pay increases will be limited to the

difference between the particular band pay cap and the employee's

current basic rate of pay, or total dollar value of shares, whichever

is less, with the balance converted to a performance bonus. This means

that employees whose basic rates of pay have reached the upper limits

of a particular pay band will receive most performance compensation as

a performance bonus. Cash bonuses will not become a part of the

employee's basic rate of pay. Employees receiving

[[Page 11684]]

retained rates are subject to special rules governing basic pay

adjustments. They may receive pay increases ranging from 0 to 50

percent of the amount of the increase in the maximum rate of basic pay

payable for the pay band of the employee's position.

Supervisory Bonus

Supervisory bonuses of up to 10% of the basic rate of pay may be

paid at the discretion of Commanders/Directors to supervisors with

employees in the same pay band. In exceptional cases (approved by HQ,

MRMC), supervisors who do not have employees in the same pay band may

be compensated up to 5% of basic rate of pay. Supervisory bonuses are

not part of the basic rate of pay. The bonus will not apply to 5 U.S.C.

3104 (ST) positions. Employees who qualify for the bonus include

supervisors in all occupational families with formal supervisory

authority meeting that required for coverage under the OPM GS

Supervisory Guide. The bonus may be paid at the beginning of a

performance period.

Because the bonus is paid at the beginning of the appraisal period,

if the individual leaves a supervisory position or is removed from

supervisory responsibilities (unless effected through RIF action), the

prorated portion of the bonus for the non-supervisory portion of the

performance year will be recovered as a debt due the Government. Before

any supervisory bonus is paid, the supervisor will sign an agreement to

make any required repayment.

Pay and Compensation Ceilings

An employee's total monetary compensation paid in a calendar year

may not exceed the basic pay of level I of the Executive Schedule,

consistent with 5 USC 5307, and 5 CFR part 530, Subpart B, except for

employees in Pay Band V of the Engineers and Scientists Occupational

Family. In this case, the maximum rate of basic pay will be that which

is established for level IV of the Executive Schedule.

In addition, each pay band will have its own pay ceiling, just as

grades do in the current system. The maximum basic pay rates for the

various pay bands will be directly keyed to the maximum rate of basic

pay for the highest grade (as in the current system) in the band or

level IV of the Executive Schedule for Pay Band V of the Engineers and

Scientists Occupational Family. Except for retained rates, basic pay

will be limited to the maximum rates payable for each pay band.

Pay Setting for Promotion

The minimum basic pay increase upon promotion to a higher pay band

will be 6 percent. The maximum amount of pay increase upon promotion

will not exceed $10,000.

When a temporary promotion is terminated, the employee's pay

entitlements will be redetermined 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 MRMC. In no case may those adjustments increase the pay

for the position of record beyond the applicable pay range maximum

rate.

Placement in a Lower Pay Band

Employees with ratings of ``F'' or those who receive 50 percent or

less of an assigned benchmark score in any element will receive no pay

increase and/or bonus. This action may result in a base salary that is

identified in a lower pay band. This occurs because the minimum rates

of basic pay in a pay band increase as the result of the general

increase (5 U.S.C. 5303). This situation, (a reduction in band level

with no reduction in pay) will not be considered an adverse action, nor

will band retention provisions apply.

D. Hiring and Appointment Authorities

Hiring Authority

A candidate's basic eligibility will be determined using Office of

Personnel Management's (OPM) Qualification Standards Handbook of

General Schedule Positions. Candidates must meet the minimum standards

for entry into the payband. For example if the payband includes

positions in grades GS-5 and GS-7, the candidates must meet the

qualifications for positions at GS-5 level. Specific experience/

education required will be determined based on whether a position to be

filled is at the lower or higher end of the band. Under the

demonstration authority, the MRMC is authorized to modify by increasing

QSH qualifications and/or experience or substitutable education

requirements. Substitutable education can be modified; however, no

changes can be made to standards with positive education requirements

or minimum education requirements. In some cases, MRMC will update

these standards to reflect current practices in the occupational

families and modern curricula in recognized degree programs. Selective

placement factors may be established when judged to be critical to

successful job performance. These factors must be communicated to all

candidates for specific vacancies and must be met for basic

eligibility.

In the proposed system, as with the current system, the individual

manager will decide whether to fill a position from among internal

candidates or to recruit from outside.

The MRMC is committed to positive affirmative action and equal

employment opportunity goals. Line managers will be accountable for

understanding and implementing policies designed to meet these goals.

Appointment Authority

Under the demonstration project, there will continue to be career

and career conditional appointments and temporary appointments not to

exceed one year. These appointments will use existing authorities and

entitlements. Non-permanent positions (exceeding one year) needed to

meet fluctuating or uncertain workload requirements will be filled

using a Contingent Employee appointment authority.

Employees hired for more than one year, under the contingent

employee appointment authority are given term appointments in the

competitive service for no longer than five years. The MRMC Commander

is authorized to extend a contingent appointment one additional year.

These employees are entitled to the same rights and benefits as term

employees and will serve a one year trial period. The Pay-for

Performance Management System outlined in this Plan applies to

contingent employees.

Appointment will be made under the same appointment authorities and

processes as regular term appointments, but recruitment bulletins must

indicate that there is a potential for conversion to permanent

employment.

Employees hired under the contingent employee authority may be

eligible for conversion to career-conditional appointments. To be

converted, the employee must (1) have been selected for the term

position under competitive procedures, with the announcement

specifically stating that the individual(s) selected for the term

position(s) may be eligible for conversion to career-conditional

appointment at a later date; (2) served two years of substantially

continuous service in the term position; (3) be selected under merit

promotion procedures for the permanent position; and (4) have a current

rating of ``B'' or better.

Employees serving under regular term appointments at the time of

conversion to the Demonstration Project will be converted to the new

contingent employee appointments provided they were hired for their

current positions

[[Page 11685]]

under competitive procedures. These employees will be eligible for

conversion to career-conditional appointment if they have a current

rating of ``B'' or better (or the equivalent of ``B'' in their current

evaluation system), and are selected under merit promotion procedures

for their permanent position after having completed two years of

continuous service. Time served in temporary or term positions prior to

conversion to the contingent employee appointment is creditable,

provided the service was continuous.

Extended Probationary Period

The current one-year probationary period will be extended to ``up

to three years'' for all newly hired employees in all pay bands. The

purpose of extending the probationary period is to allow supervisors an

adequate period of time to fully evaluate an employee's ability to

complete a research cycle and/or to fully evaluate an employee's

contribution and conduct. The length of the probationary period for the

Engineer and Scientist Occupational Family will be three years. The

probationary period for all other occupational families will be two

years.

Aside from extending the time period, 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. Any employee

subject to serving a probationary period that was appointed prior to

the implementation date will not be affected. The ``up to three year''

probation will apply to new hires or those who do not have reemployment

rights or reinstatement privileges.

Probationary employees will be terminated when the employee fails

to demonstrate proper conduct, technical competency, and/or adequate

contribution for continued employment. When the MRMC decides to

terminate an employee serving a probationary period because his/her

work performance or conduct during this period fails to demonstrate

his/her fitness or qualifications for continued employment, it shall

terminate his/her services by written notification of the reasons for

separation and the effective date of the action. The information in the

notice as to why the employee is being terminated shall, as a minimum,

consist of the manager's conclusions as to the inadequacies of his/her

performance or conduct.

Supervisory Probationary Periods

Supervisory probationary periods will be made consistent with 5 CFR

part 315, Subchapter 315.901. Employees that have successfully

completed the initial probationary period will be required to complete

an additional one-year probationary period for the initial appointment

to a supervisory position. If, during the probationary period, the

decision is made to return the employee to a non-supervisory position

for reasons solely related to supervisory performance, the employee

will be returned to a comparable position of no lower pay band and pay

than the position from which he/she was promoted.

Voluntary Emeritus Program

Under the demonstration project, Commanders/Directors will have the

authority to offer retired or separated individuals voluntary

assignments in their activities. This authority will include

individuals who have retired or separated from Federal service.

Voluntary Emeritus Program assignments are not considered

``employment'' by the Federal Government (except for the purposes of

injury compensation). Thus, such assignments do not affect an

employee's entitlement to buy-outs or severance payments based on an

earlier separation from Federal service. The Voluntary Emeritus Program

will ensure continued quality research while reducing the overall

salary line by allowing individuals to accept retirement incentive with

the opportunity to retain a presence within their community. The

program will be of most benefit during manpower reductions as

individuals could accept retirement and return to provide valuable on-

the-job training or mentoring to less experienced individuals.

To be accepted into the emeritus program, a volunteer must be

approved by the subordinate activity Commander/Director. Everyone who

applies is not entitled to a voluntary assignment. The laboratory

Commander/Director must clearly document the decision process for each

applicant (whether accepted or rejected) and retain the documentation

throughout the assignment. Documentation of rejections will be

maintained for two years.

To ensure success and encourage participation, the individual's

Federal retirement pay (whether military or civilian) will not be

affected while serving in a voluntary capacity. Retired or separated

Federal individuals may accept an emeritus position without a break or

mandatory waiting period.

Volunteers will not be permitted to monitor contracts on behalf of

the government or to participate on any contracts where a conflict of

interest exists. The same rules that currently apply to source

selection members will apply to volunteers.

An agreement will be established between the volunteer, the

subordinate activity Commander/Director, and the servicing CPO/CPAC/

CPOC. The agreement will be reviewed by the Headquarters, MRMC legal

office for ethics determinations under the Joint Ethics Regulations.

The agreement must be finalized before the assumption of duties and

shall include:

(a) A statement that the voluntary assignment does not constitute

an appointment in the civil service and is without compensation, and

any and all claims against the Government because of the voluntary

assignment are waived by the volunteer,

(b) A statement that the volunteer will be considered a Federal

employee 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 subordinate activity (travel,

administrative, office space, supplies),

(f) A one-page or less Statement of Duties and Experience,

(g) A provision that states no additional time will be added to a

volunteer's service credit for such purposes as retirement, severance

pay and leave as a result of being a member of the Voluntary Emeritus

Program,

(h) A provision allowing either party to void the agreement with 10

working days written notice, and

(i) The level of security access required (any security clearance

required by the position will be managed by the subordinate activity

while the volunteer is a member of the Voluntary Emeritus Program).

E. Expanded Developmental Opportunities Program

The MRMC Expanded Developmental Opportunities Program will cover

all permanent demonstration project employees. An expanded

developmental opportunity complements existing developmental

opportunities such as (1) long-term training, (2) one-year work

experiences in an industrial setting via the Relations With Industry

Program, (3) one-year work experiences in laboratories of allied

nations via the Science and Engineer Exchange Program, (4) rotational

job assignments within the MRMC, (5) developmental assignments

[[Page 11686]]

in higher headquarters within the Army and DOD, (6) self-directed study

via correspondence courses and local colleges and universities, (7)

details within MRMC and to other Federal Agencies, and (8)

Intergovernmental Personnel Act Agreements.

A developmental opportunity period will not result in loss of (or

reduction in) pay or leave to which the employee is otherwise entitled,

or credit for time or service. Input for performance rating purposes

will be obtained from the gaining organization to ensure a rating of

record is on file and, if warranted, a performance award and/or bonus

and retention years credit for RIF purposes is documented. Each

developmental opportunity period should benefit the MRMC, as well as

increase the employee's individual effectiveness. Various learning or

uncompensated developmental work experiences may be considered, such as

advanced academic teaching or research, sabbaticals, or on-the-job work

experience with public or non-profit organizations. Final approval

authority will rest with the activity Commander/Director.

The opportunity to participate in the Expanded Developmental

Opportunities Program will be announced as opportunities arise.

Instructions for application and the selection criteria will be

included in the announcement. Final selection for participation in the

program will be made by activity Commanders/Directors. The position of

employees on an expanded developmental opportunity may be backfilled by

temporary promotion, or temporary/contingent employees. However, that

position or its equivalent must be made available to the employee

returning from the expanded developmental opportunity.

In the event the employee fails to carry out the intent/conditions

of the developmental opportunity (except for good and sufficient reason

as determined by the activity Commander/Director), the employee shall

be liable to the United States for payment of all expenses. The amount

shall be treated as a debt due the United States. Employees accepting

an Expanded Developmental Opportunity do not have to sign a continuing

service agreement as sited in 5 USC 4108(a)(1).

F. Revised Reduction-in-Force (RIF) Procedures

Introduction

When an employee in the MRMC Demonstration Project is faced with

separation or downgrading due to lack of work, shortage of funds,

reorganization, insufficient personnel ceiling, the exercise of

reemployment or restoration rights, or furlough for more than 30

calendar days or more than 22 discontinuous days, RIF procedures will

be used.

The procedures in 5 CFR part 351 and OPM RIF regulations will be

followed with the modifications specified below pertaining to

competitive areas, assignment rights, credit for performance ratings

and service computation date.

Competitive Areas

The Headquarters and each subordinate activity of the MRMC will be

in a separate competitive area for RIF purposes. Further, within each

subordinate activity, detachments located at different geographic sites

will be in a separate competitive area for RIF purposes. Each of the

four occupational families will be a separate competitive area within

each activity. DA Interns will continue to be part of the ACTEDS

competitive area.

Retention

Within each competitive area, competitive levels will be

established consisting of all positions in the same occupational family

and pay band which are similar enough in duties, qualifications, and

working conditions that the incumbent of one position can perform

successfully the duties of any other position in the competitive level

without unduly interrupting the work program.

Current RIF regulations will be modified to restrict bumping and

retreating to positions within the employee's current occupational

family. This feature will minimize the disruption associated with the

RIF process. An employee may displace another employee within the same

occupational family by bump or retreat to one band below the employee's

existing band. A preference eligible veteran with a compensable

service-connected disability of 30% or more may retreat to positions

two bands (or the equivalent of five (5) grades) below his/her current

band.

Reductions-in-force are accomplished using the retention factors of

tenure, veterans preference, credit for performance ratings, and length

of service, in that order.

Contingent employees are in Tenure Group III for reduction-in-force

purposes. Reduction-in-force procedures are not required when

separating these employees when their appointments expire.

Link Between Performance and Retention

Credit for performance based on the last three (3) ratings of

record during the preceding four (4) years will be applied as follows:

a rating of ``A'' equals 10 years; a rating of ``B'' equals 7 years; a

rating of ``C'' equals 3 years, and a rating of ``F'' adds no credit

for retention. Credit for performance is cumulative, not averaged.

Ratings given under non-demonstration systems will be converted to the

demonstration rating scheme and provided the equivalent performance

rating credit.

In some cases, an employee may not have three (3) annual

performance ratings of record. In these situations, performance credit

will be given on the basis of assumed ratings of ``C''.

An employee who has received a written decision to demote him/her

to a lower pay band because of unacceptable performance, competes in

RIF from the position to which he/she will be/has been demoted.

Employees who have been demoted for unacceptable performance, and as of

the date of the issuance of the RIF notice have not received a

performance rating in the position to which demoted, will receive a

presumed rating of ``C'' for purposes of RIF credit.

An employee with a current annual performance rating of ``F'' has

assignment rights only to a position held by another employee who has

an ``F'' rating. An employee who has been given a written decision of

removal because of unacceptable performance will be placed at the

bottom of the retention register for their competitive level.

Notice Period

The RIF notice period will follow OPM guidelines.

Grade and Pay Retention

Except where waived or modified in the waiver section of this plan,

grade and pay retention will follow current law and regulations (e.g.

occupational family pay bands will substitute for grade.)

Use of Voluntary Incentives

Subordinate activity Commanders/Directors currently have delegated

authority to grant payments under the VSIP. This authority will

continue under this project.

IV. Training

Introduction

The key to the success or failure of the proposed demonstration

project will be the training provided for all involved.

[[Page 11687]]

This training will not only provide the necessary knowledge and skills

to carry out the proposed changes, but will also lead to commitment to

the program on the part of participants.

Training at the beginning of implementation and throughout the

demonstration will be provided to supervisors, employees, and the

administrative staff responsible for assisting managers in effecting

the changeover and operation of the new system.

The elements to be covered in the orientation portion of this

training will include:

(1) A description of the personnel system, (2) how employees are

converted into and out of the system, (3) the pay adjustment and/or

bonus process, (4) familiarization with the new position descriptions

and performance objectives, (5) the performance evaluation management

system, (6) the reconsideration process, and (7) the demonstration

project administrative and formal evaluation process.

Supervisors

The focus of this project on management-centered personnel

administration, with increased supervisory and managerial personnel

management authority and accountability, demands thorough training of

supervisors and mangers in the knowledge and skills that will prepare

them for their new responsibilities. Training will include detailed

information on the policies and procedures of the demonstration

project, training in using the classification system, position

description preparation, and performance evaluation. Additional

training may focus on non-project procedural techniques such as

interpersonal and communication skills.

Administrative Staff

The administrative staff, including personnel specialists,

subordinate activity administrative officers, and personnel points of

contact will play a key role in advising, training, and coaching

supervisors and employees in implementing the demonstration project.

This staff will need training in the procedural and technical aspects

of the project.

Employees

The MRMC Demonstration Project Office will make and coordinate all

arrangements necessary to train employees covered under the

demonstration project. In the months leading up to the implementation

date, meetings will be held for employees to fully inform them of all

project decisions, procedures, and processes.

V. Conversion

Conversion to the Demonstration Project

Initial entry into the demonstration project for covered employees

will be accomplished through a full employee protection approach that

ensures each employee an initial place in the appropriate occupational

family and pay band without loss of pay. Covered employees will be

initially converted to appropriate pay bands with respect to type of

work performed in accordance with the steps below. If conversion into

the demonstration project is accompanied by a geographic move, the

employee's GS pay entitlement in the new area must be determined before

performing the pay conversion.

a. All employees will be converted at their current base pay at the

time of conversion. [Not applicable to special rate employees.]

b. Employees who are on temporary promotions at the time of

conversion will be converted to a pay band commensurate with the grade

of the position to which temporarily promoted. At the conclusion of the

temporary promotion, the employee will revert to the pay band and

salary which corresponds to the prior grade of record, plus any

adjustments to base pay realized as a result of performance while on

the temporary promotion. The only exception will be if the original

competitive promotion announcement stipulated that the promotion could

be made permanent.

c. All employees in a pay grade corresponding to a pay band will be

converted to that pay band.

d. Employees who are covered by special salary rates, prior to the

demonstration project, will no longer be considered special rate

employees under the demonstration project. These employees will,

therefore, be eligible for full locality pay. The total salaries of

these employees will not change upon conversion. Rather, the employees

will receive a new base pay rate computed by dividing their adjusted

basic pay by the locality pay factor (e.g., 1.0711 in the Washington-

Baltimore locality pay area) for their area. Employees whose base pay

upon conversion does not fit in the applicable pay range and would

otherwise be subject to a reduction in pay, will be entitled to retain

their converted base rate. A full locality adjustment will then be

added to the new base pay rate. Since no employee's total pay will be

reduced through the conversion process, adverse action and pay

retention provisions (except as noted above) will not be applicable.

e. Upon conversion to the project, time served toward Within-Grade

Increases (WIGs) will be documented and paid to the employee on a

prorated basis (number of weeks completed in the waiting period divided

by the number of weeks in the waiting period, adjusted using credit for

service rules). This payment will be paid to those individuals employed

at the one-year anniversary of the demonstration project. Payment will

be lump-sum in nature and not a part of basic pay, providing the

employee is performing at a ``C'' level or above.

Conversion or Movement from a Project Position to a General Schedule

Position

If a demonstration project employee is moving to a General Schedule

(GS) position not under the demonstration project, or if the project

ends and each project employee must be converted back to the GS system,

the following procedures will be used to convert the employee's project

pay band to a GS-equivalent grade and the employee's project rates of

pay to GS-equivalent rates of pay. The converted GS grade and GS rates

of pay must be determined before movement or conversion out of the

demonstration project and any accompanying geographic movement,

promotion, or other simultaneous action. For conversions upon

termination of the project and for lateral reassignments, the converted

GS grade and rates will become the employee's actual GS grade and rates

after leaving the demonstration project (before any other action). For

transfers, promotions, and other actions, the converted GS grade and

rates will be used in applying any GS pay administration rules

applicable in connection with the employee's movement out of the

project (e.g., promotion rules, highest previous rate rules, pay

retention rules), as if the GS converted grade and rates were actually

in effect immediately before the employee left the demonstration

project.

Grade-Setting Provisions

An employee in a pay band corresponding to a single GS grade is

converted to that grade. An employee in a pay band corresponding to two

or more grades is converted to one of those grades according to the

following rules:

(a) The employee's adjusted rate of basic pay under the

demonstration project (including any locality payment) is compared with

step 4 rates in the highest applicable GS rate range. (For this

purpose, a ``GS rate range'' includes a rate range in (1) the GS base

schedule, (2) the locality rate schedule for the

[[Page 11688]]

locality pay area in which the position is located, or (3) the

appropriate special rate schedule for the employee's occupational

series, as applicable.) If the series is a two-grade interval series,

only odd-numbered grades are considered below GS-11.

(b) If the employee's adjusted project rate equals or exceeds the

applicable step 4 rate of the highest GS grade in the band, the

employee is converted to that grade.

(c) If the employee's adjusted project rate is lower than the

applicable step 4 rate of the highest grade, the adjusted rate is

compared with the step 4 rate of the second highest grade in the

employee's pay band. If the employee's adjusted rate equals or exceeds

step 4 of the second highest grade, the employee is converted to that

grade.

(d) This process is repeated for each successively lower grade in

the band until a grade is found in which the employee's adjusted

project rate equals or exceeds the applicable step 4 rate of the grade.

The employee is then converted at that grade. If the employee's

adjusted rate is below the step 4 rate of the lowest grade in the band,

the employee is converted to the lowest grade.

(e) Exception: If the employee's adjusted project rate exceeds the

maximum rate of the grade assigned under the above-described ``step 4''

rule, but fits in the rate range for the next higher applicable grade

(i.e., between step 1 and step 4), then the employee shall be converted

to that next higher applicable grade.

(f) Exception: An employee will not be converted to a lower grade

than the grade held by the employee immediately preceding a conversion,

lateral reassignment, or lateral transfer into the project, unless

since that time, the employee has undergone a reduction in band.

Pay-Setting Provisions

An employee's pay within the converted GS grade is set by

converting the employee's demonstration project rates of pay to GS

rates of pay in accordance with the following rules:

(a) The pay conversion is done before any geographic movement or

other pay-related action that coincides with the employee's movement or

conversion out of the demonstration project.

(b) An employee's adjusted rate of basic pay under the project

(including any locality payment) is converted to a GS adjusted rate on

the highest applicable GS rate range for the converted GS grade. (For

this purpose, a ``GS rate range'' includes a rate range in (1) the GS

base schedule, (2) an applicable locality rate schedule, or (3) an

applicable special rate schedule.)

(c) If the highest applicable GS rate range is a locality pay rate

range, the employee's adjusted project rate is converted to a GS

locality rate of pay. If this rate falls between two steps in the

locality-adjusted schedule, the rate must be set at the higher step.

The converted GS unadjusted rate of basic pay would be the GS base rate

corresponding to the converted GS locality rate (i.e., same step

position). (If this employee is also covered by a special rate schedule

as a GS employee, the converted special rate will be determined based

on the GS step position. This underlying special rate will be basic pay

for certain purposes for which the employee's higher locality rate is

not basic pay.)

(d) If the highest applicable GS rate range is a special rate

range, the employee's adjusted project rate is converted to a special

rate. If this rate falls between two steps in the special rate

schedule, the rate must be set at the higher step. The converted GS

unadjusted rate of basic pay will be the GS rate corresponding to the

converted special rate (i.e., same step position).

Within-Grade Increase--Equivalent Increase Determinations

Service under the demonstration project is creditable for within-

grade increase purposes upon conversion back to the GS pay system.

Performance pay increases (including a zero increase) under the

demonstration project are equivalent increases for the purpose of

determining the commencement of a within-grade increase waiting period

under 5 CFR 531.405(b).

Personnel Administration

All personnel laws, regulations, and guidelines not waived by this

plan will remain in effect. Basic employee rights will be safeguarded

and merit principles will be maintained. Supporting personnel

specialists in CPOs/CPACs/CPOCs will continue to process personnel-

related actions and provide consultative and other appropriate

services.

Automation

The MRMC will continue to use the Defense Civilian Personnel Data

System (DCPDS) for the processing of personnel-related data. Payroll

servicing will continue from the respective payroll offices.

Local automated systems will be developed to support computation of

performance-related pay increases and awards and other personnel

processes and systems associated with this project.

Experimentation and Revision

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 MRMC will make minor modifications, such as changes in the

occupational series in a occupational family without further notice.

Major changes, such as a change in the number of occupational families,

will be published in the Federal Register.

VI. Project Duration

Public Law 103-337 removed any mandatory expiration date for this

demonstration. The project evaluation plan adequately addresses how

each intervention will be comprehensively evaluated for at least the

first 5 years of the demonstration (Proposed Plan for Evaluation of the

DOD Laboratory Demonstration Program, OPM, 1995). Major changes and

modifications to the interventions can be made through announcement in

the Federal Register and would be made if formative evaluation data

warranted. At the 5-year point, the entire demonstration will be

reexamined for either: (a) permanent implementation, (b) a continuing

test period, or (c) expiration.

VII. Evaluation Plan

Introduction

In response to the Reinvention Project legislation, OPM will

evaluate the project annually and provide briefings and written reports

of the findings. The Evaluation Plan stipulates both internal and

external evaluation efforts. The phases of the plan are outlined below.

Evaluation Phases

The evaluation effort will be carried out in three phases:

implementation, formative, and summative evaluation. Monitoring of the

project will be concurrent with the implementation phase. An evaluation

of this phase is necessary to determine whether the project is

implemented as designed and to ascertain when the monitored processes

become stable and fully operational. The formative phase evaluation

will extend for the duration of the project. Data will be collected

annually and periodic reports will be issued by OPM. The summative

evaluation phase will assess overall impact of the project during

appropriate time intervals and/or after 5 years of operation.

[[Page 11689]]

Evaluation Methodology

The evaluation will focus on the continuum of personnel issues and

will be based on before-and-after comparison of the personnel data,

using both quantitative and qualitative criteria. Personnel records and

reports, as well as previously validated survey instruments, will be

used to develop appropriate measures. New data collection methods and

measures, or modifications to existing instruments, may be required for

some criteria. Baseline data will be collected before the demonstration

project implementation. The baseline survey was administered in the

Summer of 1996.

Evaluation Criteria

While it is not possible to prove a direct causal link between

intermediate and ultimate outcomes (personnel system changes and

improved organizational performance), indirect cause and effect

relationships can be evidenced through the establishment of relevant

effectiveness measures. An intervention impact model (Appendix B) will

be used to measure the effectiveness of the various personnel system

changes or interventions. Additional measures will be developed as new

interventions are introduced or existing interventions modified

consistent with expected effects. Measures may also be deleted when

appropriate. Activity specific measures may also be developed to

accommodate specific needs or interests which are locally unique. The

evaluation model for the Demonstration Project identifies elements

critical to an evaluation of the effectiveness of the interventions.

The overall evaluation approach will also include consideration of

context variables that are likely to have an impact on project

outcomes: e.g., HRM regionalization, rightsizing, cross-service

integration, and the general state of the economy. However, the main

focus of the evaluation will be on intermediate outcomes, i.e., the

results of specific personnel system changes which are expected to

improve human resources management. The ultimate outcomes are defined

as improved organizational effectiveness, mission accomplishment and

customer satisfaction.

Data from a variety of different sources will be used in the

evaluation. Information from existing management information systems

supplemented with perceptual data will be used to assess variables

related to effectiveness. Multiple methods provide more than one

perspective on how the demonstration project is working. Information

gathered through one method will be used to validate information

gathered through another. Confidence in the findings will increase as

they are substantiated by the different collection methods. The

following types of data will be collected as part of the evaluation:

(1) Workforce data; (2) personnel office data; (3) employee attitudes

and feedback using surveys, structured interviews and focus groups; (4)

local activity histories, and (5) core measures of subordinate activity

performance.

VIII. Demonstration Project Costs

Costs associated with the development of the personnel

demonstration system include software automation, training, and project

evaluation. All funding will be provided through the MEDCOM/MRMC

budget. The projected annual expenses are as summarized in Table 1.

Project evaluation costs are not expected to continue beyond the first

5 years unless the results warrant further evaluation. Projected

developmental costs do not include potential contractor fees.

Table 1.--Projected Developmental Costs (Current Year Dollars)

----------------------------------------------------------------------------------------------------------------

Baseline FY97 FY98 FY99 FY00 FY01

----------------------------------------------------------------------------------------------------------------

Training.................... ............ $99K $19K $19K $19K $19K

Project Eval................ $17K $28K $28K $28K $28K $28K

Automation.................. $80K $10K $10K $10K $10K $10K

Totals...................... $97K $137K $57K $57K $57K $57K

----------------------------------------------------------------------------------------------------------------

IX. Required Waivers to Law and Regulation

Public Law 103-337 gave the DoD the authority to experiment with

several personnel management innovations. In addition to the

authorities granted by the law, the following are the waivers of law

and regulation that will be necessary for implementation of the

Demonstration Project. In due course, additional laws and regulations

may be identified for waiver request.

1. Waivers to Title 5, U.S. Code

Chapter 31, section 3111: Acceptance of volunteer service--To the

extent that the acceptance of retired or separated civilian and

military are included as volunteers under current statute.

Chapter 31, Section 3324: Appointments to Positions Classified

Above GS-15.

Chapter 33, Section 3341: Details; within Executive or military

departments--Increasing 120-Day Increments for Details to 180 days.

Chapter 35, Section 3502: Order of Retention--Applies only to the

extent that performance score is placed before length of service.

Chapter 41, Section 4107: Pay for Degrees.

Chapter 41, Section 4108: Employee Agreements, Service after

training; to the extent that employees who accept an expanded

developmental opportunity do not have to sign a continuing service

agreement.

Chapter 43, Section 4301: Definitions.

Chapter 43, Section 4302: Establishment of Performance Appraisal

Systems.

Chapter 43, Section 4303: Actions based on Unacceptable

Performance.

Chapter 51, Sections 5101-5111: Purpose, definitions, basis,

classification of positions, review, authority--Applies to the extent

that white collar employees will be covered by broadbanding. Pay

category determination criteria for federal wage system positions

remain unchanged.

Chapter 53, Sections 5301, 5302 (8) and (9), 5303 and 5304: Pay

Comparability System--Sections 5301, 5302, and 5304 are waived only to

the extent necessary to allow (1) demonstration project employees

except employees in Pay Band V of the Engineers and Scientists

Occupational Family, to be treated as General Schedule employees, (2)

basic rates of pay under the demonstration project to be treated as

scheduled rates of pay, and (3) employees in Pay Band V of the

Engineers and Scientists Occupational Family to be treated as SES and

ST employees for the purposes of these provisions.

Chapter 53, Section 5305: Special Salary rates.

Chapter 53, Sections 5331-5336: General Schedule Pay Rates.

[[Page 11690]]

Chapter 53, Sections 5361-5366: Grade and pay retention--This

waiver applies only to the extent necessary to (1) replace ``grade''

with ``pay band'; (2) allow demonstration project employees to be

treated as General Schedule employees; (3) provide that pay band

retention provisions do not apply to movements to a lower pay band as a

result of receiving a performance pay increase that is less than the

amount of general pay increase; (4) provide that pay retention

provisions do not apply to conversions from General Schedule special

rates to demonstration project pay, as long as total pay is not

reduced; (5) provide that an employee on pay retention may receive

between 0 and 50 percent of the amount of the increase in the maximum

rate of basic pay payable for the pay band of the employee's position.

This waiver does not apply to ST employees unless they move to a GS-

equivalent position under the demonstration project under conditions

that trigger entitlement to pay retention.

Chapter 53, Section 5371: Health Care Positions--This waiver

applies only to the extent necessary to allow demonstration project

employees to hold positions subject to Chapter 51 of title 5.

Chapter 55, Section 5545 (d): Hazardous Duty Differential--This

waiver applies only to the extent necessary to allow demonstration

project employees to be treated as General Schedule employees. This

waiver does not apply to employees in Pay Band V of the Engineers and

Scientists Occupational Family or ST employees.

Chapter 57, Sections 5753, 5754, and 5755: Recruitment and

Relocation Bonuses; Retention Allowances and Supervisory Bonuses--This

waiver applies only to the extent necessary to allow (1) employees and

positions under the demonstration project to be treated as employees

and positions under the General Schedule and (2) employees in Pay Band

V of the Engineers and Scientists Occupational Family to be treated as

ST employees. This waiver does not apply to ST employees who continue

to be covered by these provisions as appropriate.

Chapter 59, Section 5941: Allowances based on living costs and

conditions of environment; employees stationed outside continental U.S.

or Alaska. This waiver applies only to the extent necessary to provide

that COLA's paid to employees under the demonstration project are paid

in accordance with regulations prescribed by the President (as

delegated to OPM).

Chapter 75, Section 7512(3): Adverse actions--This provision is

waived only to the extent necessary to (1) replace ``grade'' with ``pay

band'' and (2) provide that a reduction in band level is not an adverse

action if it results from the employee's pay being exceeded by the

minimum rate of his or her pay band.

Chapter 75, Section 7512(4): Adverse actions--This provision is

waived only to the extent that adverse action provisions do not apply

to conversions from General Schedule special rates to demonstration

project pay, as long as total pay is not reduced.

2. Title 5, Code of Federal Regulations:

Part 300.601-605: Time-In-Grade Restrictions--Restrictions

eliminated under the demonstration.

Part 308.101-103: Volunteer Service--To the extent that retired/

separated civilians and military can perform voluntary services.

Part 315.801 and 315.802: Probation on Initial Appointment to a

Competitive Position--Demonstration project employees in some

occupational families will have extended probationary period.

Part 316.301: Term Employment--Adding years to exceed 4 and

establishment of Contingent appointments.

Part 316.303: Tenure of term employees--Demonstration allows for

conversion.

Part 316.305: Eligibility for within-grade increases--Demonstration

employees no longer received WIGs.

Part 334, section 334.102: Temporary Assignment of Employees

Outside the Agency.

Part 335.103: Covering the length of details and temporary

promotions.

Part 351.402(b): Competitive Area--To the extent that occupational

family is the competitive area.

Part 351.403: Competitive Level--To the extent that pay band is

substituted for grade.

Part 351.504: Credit for Performance--Retention standing to the

extent that service credit will not be modified based on performance

rating.

Part 351.701: Assignment Involving Displacement--To the extent that

bumping and retreating will be limited to no more than one pay band

except for 30 percent compensable veterans who can retreat to the

equivalent of 5 GS grades.

Part 430: Subpart B, Performance Appraisal for General Schedule,

Prevailing Rate, and Certain Other Employees--Employees under the

demonstration project will not be subject to the requirements of this

subpart.

Part 432: Performance Based Reduction In Grade and Removal

Actions--Modified to the extent that an employee may be removed,

reduced in band level with a reduction in pay, reduced in pay without a

reduction in band level and reduced in band level without a reduction

in pay based on unacceptable performance. Also modified to delete

reference to critical element (all elements are critical). For

employees who are reduced in band level without a reduction in pay,

sections 432.105 and 432.106(a) do not apply.

Part 432, sections 104 and 105: Addressing unacceptable performance

and proposing and taking action based on unacceptable performance--In

so far as references to ``critical elements'' are deleted (all elements

are critical), and adding that the employee may be ``reduced in grade,

or pay, or removed'' if performance does not improve to acceptable

levels after a reasonable opportunity. In addition, requirements waived

to the extent that a reduction in band level is taken based on skill

utilization criteria when there is not a reduction in pay.

Part 511: Classification Under the General Schedule--To the extent

that grades are changed to broadbands, and that white collar positions

are covered by broadbanding.

Part 530, subpart C: Special Salary Rate Schedules for Recruitment

and Retention.

Part 531, subparts B, D, and E: Pay Under the General Schedule--

Determining rate of basic pay, within-grade increases, and quality step

increases.

Part 531, subpart F: Locality Based Comparability Payments--This

waiver applies only to the extent necessary to allow (1) demonstration

project employees, except employees in Pay Band V of the Engineers and

Scientists Occupational Family to be treated as General Schedule

employees, (2) basic rates of pay under the demonstration project to be

treated as scheduled annual rates of pay, and (3) employees in Pay Band

V of the Engineers and Scientists Occupational Family to be treated as

ST employees for the purposes of these provisions. This waiver does not

apply to ST employees who continue to be covered by these provisions,

as appropriate.

Part 536: Grade and pay retention--This waiver applies only to the

extent necessary to (1) replace ``grade'' with ``pay band''; (2)

provide that pay band retention provisions do not apply to movements to

a lower pay band as result of receiving a performance pay increase that

is less than the amount of the general pay increase; (3) provide that

pay retention provisions do not

[[Page 11691]]

apply to conversions from General Schedule special rates to

demonstration project pay, as long as total pay is not reduced; (4)

provide that an employee on pay retention may receive between 0 and 50

percent of the amount of the increase in the maximum rate of basic pay

payable for the pay band of the employee's position. This waiver does

not apply to ST employees unless they move to a GS-equivalent position

under the demonstration project under conditions that trigger

entitlement to pay retention.

Part 550.703: Severance Pay--This waiver applies only to the extent

necessary to modify the definition of ``reasonable offer'' by replacing

``two grade or pay levels'' with ``one band level'' and ``grade or pay

level'' with ``band level''.

Part 550.902: Hazardous Duty Differential--This waiver applies only

to the extent necessary to allow demonstration project employees to be

treated as General Schedule employees. This waiver does not apply to

employees in Pay Band V of the Engineers and Scientists Occupational

Family or ST employees.

Part 575, subparts A, B, C and D: Recruitment and Relocation

Bonuses; Retention Allowances; Supervisory Differentials--This waiver

applies only to the extent necessary to allow (1) employees and

positions under the demonstration project to be treated as employees

and positions under the General Schedule and (2) employees in Pay Band

V of the Engineers and Scientists Occupational Family to be treated as

ST employees for the purposes of these provisions. This waiver does not

apply to ST employees who continue to be covered by these provisions,

as appropriate.

Part 591, subpart B: Cost-of-Living Allowances and Post

Differential-Nonforeign Areas--This waiver applies to the extent

necessary to allow (1) demonstration project employees to be treated as

employees under the General Schedule and (2) employees in Pay Band V of

the Engineers and Scientists Occupational Family to be treated as ST

employees for the purposes of these provisions. This waiver does not

apply to ST employees who continue to be covered by these provisions,

as appropriate.

Part 752.401(a)(3): Adverse Actions--This waiver applies only to

the extent necessary to (1) replace ``grade'' with ``pay band'' and (2)

provide that a reduction in pay band level is not an adverse action if

it results from the employee's pay being exceeded by the minimum rate

of his or her pay band.

Part 752.401(a)(4): Adverse Actions--This waiver applies only to

the extent that adverse action provisions do not apply to conversions

from General Schedule special rates to demonstration project pay, as

long as total pay is not reduced.

Appendix A: Occupational Series by Occupational Family

I. Engineers and Scientists

0101 Social Science

0180 Psychology

0190 Anthropology

0401 Biology

0403 Microbiology

0405 Pharmacology

0408 Ecology

0410 Zoology

0413 Physiology

0414 Entomology

0415 Toxicology

0440 Genetics

0601 General Health Science

0602 Medical Officer

0610 Nurse

0630 Dietitian & Nutritionist

0644 Medical Technologist

0662 Optometrist

0701 Veterinary Medical Science

0801 General Engineering

0808 Architecture

0830 Mechanical Engineering

0855 Electronics Engineering

0858 Biomedical Engineering

1301 General Physical Science

1306 Health Physics

1310 Physics

1320 Chemistry

1520 Mathematics

1529 Mathematical Stat

1530 Statistician

II. E&S Technicians

0181 Psychology Aid/Technician

0404 Biological Science Technician

0499 Biological Science Student Trainee

0620 Practical Nurse

0640 Health Aid & Technician

0645 Medical Technician

0646 Pathology Technician

0647 Diagnostic Radiologic Technologist

0649 Medical Instrument Technician

0802 Engineer Technician

0809 Construction Control

0818 Engineering Drafting

0856 Electronics Technician

1311 Physical Sciences Technician

1521 Mathematics Technician

III. Administrative

0018 Safety & Occupational Health Management

0028 Environmental Protection Spec

0080 Security Administration

0201 Civilian Personnel Management

0205 Military Personnel Management

0301 Misc Administration & Program

0332 Computer Operation

0334 Computer Specialist

0340 Program Management

0341 Administrative Officer

0342 Support Services Administration

0343 Management/Program Analysis

0346 Logistics Management

0391 Telecommunications

0501 Financial Administration & Program

0510 Accounting

0511 Auditing

0560 Budget Analysis

0905 General Attorney

1020 Illustrating

1035 Public Affairs

1040 Language Specialist

1071 Audiovisual Production

1082 Writing & Editing

1083 Technical Writing & Editing

1084 Visual Information

1102 Contracting

1105 Purchasing

1152 Production Control

1222 Patent Attorney

1410 Librarian

1412 Technical Information Services

1601 General Facilities & Equipment

1640 Facility Management

1670 Equipment Specialist

1710 Educational & Vocational Training

1801 General Inspection, Investigation and Compliance

1910 Quality Assurance

2001 General Supply

2003 Supply Program Management

2010 Inventory Management

2050 Supply Cataloging

2181 Aircraft Operation

IV. General Support

0086 Security Clerical & Asst

0302 Messenger

0303 Misc Clerk and Asst

0304 Information Receptionist

0305 Mail and File

0312 Clerk-Stenographer/Reporter

0318 Secretary

0322 Clerk-Typist

0326 Office Automation Clerical/Asst

0335 Computer Clerk/Asst

0344 Management Clerical/Asst

0525 Accounting Technician

0561 Budget Clerical/Asst

0675 Medical Records Technician

0679 Medical Clerk

1016 Museum Specialist & Technician

1060 Photography

1087 Editorial Asst

1106 Procurement Clerical/Tech

1411 Library Technician

1499 Library and Archives Student Trainee

1531 Statistical Asst

2005 Supply Clerical/ Tech

2102 Transportation Clerk/Asst

[[Page 11692]]

Appendix B: Project Evaluation and Oversight

Intervention Impact Model--DoD Lab Demonstration Program

1. Compensation

BILLING CODE 6325-01-P

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BILLING CODE 6325-01-C

Appendix C. Performance Elements.

Each performance element is assigned a weight between a specified

range. The total weight of all elements in a performance plan is 100

points. The supervisor assigns each element some portion of the 100

points in accordance with its importance for mission attainment.

All employees will be rated against at least the five generic

performance elements listed through ``e'' below. However, only those

employees whose duties require supervisor or manager/leader

responsibilities will be rated on element ``f''. Supervisors will be

rated against an additional performance element, listed at ``g'' below:

a. Technical Competence. Exhibits and maintains current technical

knowledge, skills, and abilities to produce timely and quality work

with the appropriate level of supervision. Makes prompt, technically

sound decisions and recommendations that add value to mission

priorities and needs. For appropriate career paths, seeks and accepts

developmental and/or special assignments. Adaptive to technological

change. (Weight Range: 15 to 50)

b. Working Relationships. Accepts personal responsibility for

assigned tasks. Considerate of others views and open to compromise on

areas of difference, if allowed by technology, scope, budget, or

direction. Exercises tact and diplomacy and maintains effective

relationships, particularly in immediate work environment and teaming

situations. Always willing to give assistance. Shows appropriate

respect and courtesy. (Weight Range: 5 to 15)

c. Communications. Provides or exchanges oral/written ideas and

information in a manner that is timely, accurate and cogent. Listens

effectively so that resultant actions show understanding of what was

said. Coordinates so that all relevant individuals and functions are

included in, and informed of, decisions and actions. (Weight Range: 5

to 15)

d. Resource Management. Meets schedules and deadlines, and

accomplishes work in order of priority; generates and accepts new ideas

and methods for increasing work efficiency; effectively utilizes and

properly controls available resources; support organization's resource

development and conservation goals. (Weight Range: 15 to 50)

e. Customer Relations. Demonstrates care for customers through

respectful, courteous, reliable and conscientious actions. Seeks out

and develops solid working relationships with customers to identify

their needs, quantifies those needs, and develops practical solutions.

Keeps customers informed and prevents surprises. Within the scope of

job responsibility, seeks out and develops new programs and /or

reimbursable customer work. (Weight Range: 10 to 50)

f. Management/Leadership. Actively furthers the mission of the

organization. As appropriate, participates in the development and

implementation of strategic and operational plans of the organization.

Develops and implements tactical plans. Exercises leadership skill

within the environment. Mentors junior personnel in career development,

technical competence, and interpersonal skills. Exercises due

responsibility to oversee technical/acquisition/organizational

positions assigned to them. (Weight Range: 0 to 50)

g. Supervision/EEO. Works toward recruiting, developing,

motivating, and retaining quality team members; takes timely/

appropriate personnel actions, applies EEO/merit principles;

communicates mission and organizational goals; by example, creates a

positive, safe, and challenging work environment; distributes work and

empowers team members. (Weight Range: 15 to 50)

BILLING CODE 6325-01-P

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[GRAPHIC] [TIFF OMITTED] TN12MR97.075

[FR Doc. 97-6167 Filed 3-10-97; 8:45 am]

BILLING CODE 6325-01-C