Proposed Civilian Acquisition Workforce Personnel Demonstration Project; Department of Defense (DoD)

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.

Section 4308 of the National Defense Authorization Act for Fiscal

Year 1996 (Pub. L. 104-106; 10 U.S.C.A. Sec. 1701 note), as amended by

section 845 of the National Defense Authorization Act for Fiscal Year

1998 (Pub. L. 105-85), permits the Department of Defense (DoD), with

the approval of OPM, to conduct a personnel demonstration project

within the Department's civilian acquisition workforce and those

supporting personnel assigned to work directly with the acquisition

workforce. DoD is proposing a demonstration project to cover the

civilian acquisition workforce and teams of personnel, more than half

of which consist of members of the acquisition workforce and the

remainder of which consist of supporting personnel assigned to work

directly with the acquisition workforce, throughout DoD. The total

number of participants is limited to 95,000.

DATES: Comment date: To be considered, written comments must be

submitted on or before public hearings will be scheduled as follows:

1. 23 April 1998, 10 A.M.; at Essayons Theater Bldg 219, 19th St.,

Ft. Belvoir, VA 22060.

2. 30 April 1998, 10 A.M.; at 100 N. Sepulveda Blvd., Conference

Room Plaza Level, El Segundo, CA 90245.

3. 5 May 1998, 10 A.M.; at Air Force Museum Auditorium, 1100 Spaatz

St., Wright-Patterson AFB, OH 45433-7102.

At the time of the hearings, interested persons or organizations

may present their written or oral comments on the proposed

demonstration project. The hearings will be informal. However, anyone

wishing to testify should contact the person listed under FOR FURTHER

INFORMATION CONTACT and state the hearing location, 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 five minutes. Written

comments may be submitted to supplement oral testimony during the

public comment period.

ADDRESSES: Comments may be mailed to Helen C. Onufrak, U.S. Office of

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

20415.

FOR FURTHER INFORMATION CONTACT: On proposed demonstration project: OSD

Greg Giddens, Acquisition Workforce Personnel Demonstration, 5203

Leesburg Pike, Suite 1404, Falls Church, VA 22041, 703-602-8652; on

proposed demonstration project and public hearings: OPM Helen C.

Onufrak, U.S. Office of Personnel Management, 1900 E Street NW., Room

7460, Washington, DC 20415, 202-606-1506.

SUPPLEMENTARY INFORMATION: The Department of Defense (DoD) has

submitted a proposed demonstration project entitled ``Department of

Defense Acquisition Workforce Personnel Demonstration Project'' for

consideration under chapter 47 of title 5, United States Code.

The purpose of this project is to demonstrate a flexible and

responsive personnel system that will enhance the Department's ability

to attract, retain, and motivate a high-quality workforce. To this end,

the proposed project involves: (1) Expansion of the candidate selection

process; (2) establishment of three appointment authorities (permanent,

modified term, and temporary limited); (3) extended probationary period

for new employees in certain circumstances; (4) modified reduction-in-

force (RIF) procedures; (5) broadbanding; (6) simplified job

classification; (7) a contribution-based compensation and appraisal

system; (8) academic degree and certificate training; (9) sabbaticals;

and (10) a voluntary emeritus program.

Dated: March 18, 1998.

Office of Personnel Management.

Janice R. Lachance,

Director.

Table of Contents

I. Executive Summary

II. Introduction

A. Purpose

B. Problems with the Present System

C. Changes Required/Expected Benefits

D. Bargaining Requirements

E. Participating Organizations

F. Participating Employees

G. Project Design

III. Personnel System Changes

A. Hiring and Appointment Authorities

B. Broadbanding

C. Classification

D. Contribution-based Compensation and Appraisal System

E. Special Situations Related to Pay

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

G. Academic Degree and Certificate Training

H. Sabbaticals

IV. Training

A. Supervisors

B. Administrative Staff

C. Employees

V. Conversion

A. Conversion to the Demonstration Project

B. Conversion Back to the Former System

VI. Project Duration

VII. Evaluation Plan

VIII. Demonstration Project Costs

A. Step and Promotion Buy-Ins

B. Out-Year Project Costs

C. Personnel Policy Boards

D. Developmental Costs

IX. Required Waivers to Law and Regulations

A. Waivers to title 5, United States Code

B. Waivers to title 5, Code of Federal Regulations

I. Executive Summary

The project was designed by a Process Action Team (PAT) under the

uthority of the Under Secretary of Defense for Acquisition and

Technology, with the participation of and review by DoD and the Office

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

the quality, professionalism, and management of the DoD acquisition

workforce through improvements in the efficiency and effectiveness of

the human resources management system. The project interventions will

strive to achieve the best workforce for the acquisition mission,

adjust the workforce for change, and improve workforce quality. The

project framework addresses all aspects of the human resources life-

cycle model.

II. Introduction

A. Purpose

The purpose of the project is to demonstrate that the effectiveness

of DoD acquisition can be enhanced by allowing greater managerial

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

expand the opportunities available to employees through a more

responsive and flexible personnel system. The quality of DoD

acquisition activities, people, and products has been under intense

scrutiny in recent years. The perceived deterioration of quality is

believed to be due, in substantial part, to the erosion of control that

line managers have over their human resources. This demonstration

project will provide managers, at the lowest practical level, the

authority, control, and flexibility

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they need to achieve quality acquisition processes and quality

products. This project not only provides a system that retains,

recognizes, and rewards employees for their contribution, but also

supports their personal and professional growth.

B. Problems With the Present System

One of the goals of the Defense Acquisition Workforce Improvement

Act (DAWIA) is to create well-trained, multi-skilled professionals who

can completely and effectively manage multi-million-dollar programs.

Additionally, Integrated Product Teams (IPTs) require multi-skilled

personnel who can function in a dynamic team environment. The

acquisition professional who thinks ``outside the box,'' can operate

effectively in more than one functional area, and is willing to take

managed risks, will be the individual most likely to be a high

contributor to the team. Because of this, the current personnel system

must be re-engineered to provide incentives and rewards to employees

who exhibit these characteristics and who increase their contribution

to the acquisition mission accordingly. Hiring restrictions and overly

complex job classifications unduly exhaust valuable resources and

unnecessarily detract attention from the acquisition mission. Managers

must be able to compete with the private sector for the best talent and

be able to make timely job offers to potential employees. Those same

managers need the tools to reward employees for excellence, so that the

acquisition systems produced reflect the quality of such a workforce. A

contribution-based compensation system will help managers acquire these

tools and provide a forum in which to apply them. The acquisition

process is continually changing and is moving more toward a team

environment; therefore, managers must be given local control of

positions and their classification in order to move employees freely

within their organization when demanded by the mission, and to provide

developmental opportunities for employees. Additionally, managers have

only limited tools to shape the workforce to ensure continued growth of

new ideas, perspectives, and state-of-the art skills for the 21st

century. In summary, today's acquisition workforce management problems

appear to be largely outside the control of the acquisition managers.

The inflexibility of many of today's personnel processes and the

diffused authority, accountability, and approval chains throughout the

organizations, result in a workforce that cannot posture itself for the

rapidly changing technological and business environment. Also, the

current personnel system does not provide an environment that motivates

employees to continue to increase their contribution to the

organization and the mission. This demonstration is designed to provide

an encouraging environment that promotes the growth of all employees

and to improve the local acquisition managers' ability and authority to

manage the acquisition workforce effectively.

C. Changes Required/Expected Benefits

This project will demonstrate that a human resource system tailored

to the mission and needs of the DoD acquisition workforce will result

in: (a) Increased quality in the acquisition workforce and the products

it acquires; (b) increased timeliness of key personnel processes; (c)

workforce data trends toward higher retention rates of ``excellent

contributors'' and separation rates of ``poor contributors''; (d)

increased satisfaction of serviced DoD customers with the acquisition

process and its products; and (e) increased workforce satisfaction with

the personnel management system.

The DoD acquisition workforce demonstration program builds on the

features of demonstration projects at the Air Force Research

Laboratory, Department of the Navy (China Lake), and National Institute

of Standards and Technology (NIST). The long-standing Department of the

Navy (China Lake) and NIST demonstration projects have produced

impressive statistics on job satisfaction for their employees versus

that for the Federal workforce in general. Therefore, in addition to

the expected benefits mentioned above, it is anticipated that the DoD

acquisition workforce demonstration project will result in more

satisfied employees as a consequence of the demonstration's pay equity,

classification accuracy, and fairness of performance management. A full

range of measures will be collected during project evaluation (sections

VII and VIII.B).

D. Bargaining Requirements

Employees within a unit to which a labor organization is accorded

exclusive recognition under Chapter 71 of title 5, United States Code,

shall not be included as part of the demonstration project unless the

exclusive representative and the agency have entered into a written

agreement covering participation in and implementation of this project.

The parties may use mediation or any other mutually acceptable means to

resolve disputes over the implementation of the project with respect to

unit employees. Neither party may request the assistance of the Federal

Service Impasses Panel to resolve such disputes.

Either labor or management may unilaterally withdraw from

negotiations over the application of this demonstration project to

bargaining unit members at any time up until final agreement approval,

without such action being considered an unfair labor practice under

Section 7116 of title 5, United States Code for refusing to negotiate

in good faith.

Written agreements addressing the initial implementation of the

demonstration project to bargaining unit members are subject to higher-

level review and approval within DoD prior to implementation. This

review is to ensure local agreements comply with the requirements of

the demonstration project and any Service-wide implementing directives.

The decision of the higher-level review is not subject to third-party

intervention or review. Written agreements established under this

paragraph shall be considered ``local agreements subject to a national

or controlling agreement at a higher level'' as provided in 5 U.S.C.

7114(c)(4), and the approved demonstration project shall be considered

a ``national agreement'' under that section.

Once a written agreement is reached and approved allowing for the

local implementation of the project, all subsequent negotiations during

the life of the project shall be subject to binding impasse procedures

under Section 7119 of title 5, United States Code, or to alternative

impasse procedures agreed to by the parties.

E. Participating Organizations

The DoD Acquisition Workforce Personnel Demonstration Project will

include various organizational elements of the Air Force, Army, Navy,

Marine Corps, Defense Information Systems Agency, and Defense Logistics

Agency. Participating organizations are shown in Table 1.

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F. Participating Employees

In determining the scope of the demonstration project, primary

consideration was given to the number and diversity of occupations with

the DoD acquisition workforce and the teams of personnel, more than

half of which consist of members of the acquisition workforce and the

remainder of which consist of supporting personnel assigned to work

directly with the acquisition workforce, as well as the need for

adequate development and testing of the Contribution-based Compensation

and Appraisal System (CCAS). Additionally, current DoD human resource

management design goals and priorities for the entire civilian

workforce were considered. While the intent of this project is to

provide DoD activities with increased control and accountability for

their covered workforces, the decision was made to restrict development

efforts initially to covered General Schedule (GS) positions. Employees

covered under the Performance Management and Recognition System

Termination Act (pay plan code GM) are General Schedule employees and

are covered under the demonstration project.

Interns assigned to an organization participating in this

demonstration are included. Employees in the Student Temporary

Employment Program (summer hire and stay in school), all positions

designated as primary or secondary law enforcement officer (LEO)

positions (5 U.S.C. Secs. 5541(3)), and all positions in the Defense

Civilian Intelligence Personnel System (DCIPS) (10 U.S.C. Chapter 83)

are excluded from the Demonstration Project, even if their series and

organizations are listed in Tables 1 and 2. Additionally, this

demonstration project does not cover those positions that have

previously been identified for coverage by a science and technology

reinvention laboratory demonstration project, the U.S. Army Europe

(USAREUR) demonstration project, or the permanent demonstration project

at the Naval Command, Control, and Ocean Surveillance Center, San

Diego, CA and the Naval Air Warfare Center, Weapons Division, China

Lake, CA.

The job series included in the project are identified in Table 2.

To determine if your series and organization are included, locate your

organization in Table 1 and then find your job series in Table 2.

Additional questions, if any, regarding your specific position should

be addressed to OSD, Acquisition Workforce Personnel Demonstration

Project Office, or refer to the Web Site at www.crfpst.wpafb.af.mil/

Demo/.

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Qualifying positions in other job series, located in participating

organizations, may be phased in during the course of the project, up to

the statutory maximum. However, prior OSD and OPM approval would be

required.

Current demographics and union representation for the positions

covered by this demonstration project are shown in Table 3.

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Of the 71,453 personnel assigned to this project, 46,477 are

represented by labor unions. Union representatives have been separately

notified about the project and participated in its development. DoD is

proceeding to fulfill its obligation to consult or negotiate with the

unions, as appropriate, in accordance with 5 U.S.C. 4703(f).

G. Project Design

In September 1996, a Process Action Team (PAT) was formed by the

Secretary of Defense in response to Section 4308 of the National

Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106; 10

U.S.C. Sec. 1701 note). The PAT was chartered to take full opportunity

of this legislation and to develop solutions for many DoD acquisition

workforce personnel issues. The team included managers from each of the

Military Services and DoD Components, as well as subject-matter experts

from civilian personnel and manpower. This team developed 13

initiatives that together represent sweeping changes to the entire

spectrum of human resource management for the DoD acquisition

workforce. Several initiatives were designed to assist DoD acquisition

activities in hiring and placing the best people to fulfill mission

requirements. Others focused on developing, motivating, and equitably

compensating employees based on their contribution to the mission.

Initiatives to manage workforce realignment effectively and maintain

organizational excellence were also developed. These initiatives were

endorsed and accepted in total by the acquisition leadership.

After thorough study, the original 13 initiatives were refined.

Those appearing herein constitute the demonstration project for

purposes of 5 U.S.C. Sec. 4703. The remainder are subject to policies

established by OMB and DoD; waivers are being sought at those levels.

III. Personnel System Changes

A. Hiring and Appointment Authorities

1. Simplified, Accelerated Hiring

The complexity of the current system and various hiring

restrictions create delays; hamper management's ability to hire,

develop, realign, and retain a quality workforce that is reflective of

our nation's diversity; and inhibit a

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quick response to economic and population changes. Line managers find

the complexity limiting as they attempt to accomplish timely

recruitment of needed skills. To compete with the private sector for

the best talent available and be able to make expeditious job offers,

managers need a process that is streamlined, easy to administer, and

allows for timely job offers. In order to create a human resource

management system that facilitates mission execution and organization

excellence, this demonstration project will respond to today's dynamic

environment of downsizing, restructuring, and installation closures by

obtaining, developing, utilizing, incentivizing, and retaining high-

performing employees. The project will provide a flexible system that

can reduce, restructure, or renew the workforce quickly to meet diverse

mission needs, respond to workload exigencies, and contribute to

quality products, people and workplaces.

Specifically, this part of the demonstration project will provide

simplified, accelerated hiring that allows participating organizations

to more rapidly appoint individuals to positions. Appropriate

recruitment methods and sources will include those that are likely to

yield quality candidates with the knowledge, skills, and abilities

necessary to perform the duties of the position.

(a) Delegated Examining Process

This demonstration project proposes a streamlined examining

process. An applicant's basic eligibility will be determined using

OPM's Operating Manual ``Qualifications Standards for General Schedule

Positions'' and DAWIA requirements as needed. Minimum eligibility

requirements will be those at the lowest equivalent GS grade of the

appropriate broadband level. Selective placement factors may be

established in accordance with OPM's Operating Manual ``Qualifications

Standards for General Schedule Positions'' when judged to be critical

to successful job performance. These factors will be communicated to

applicants and must be met for basic eligibility.

Candidates who meet the basic ``minimum'' qualifications will be

further evaluated based on knowledge, skills, and abilities which are

directly linked to the position(s) to be filled. Based on this

assessment, candidates will receive numerical scores of 70, 80, or 90.

No intermediate scores will be granted except for those eligibles who

are entitled to veterans' preference. Preference eligibles meeting

basic (minimum) qualifications will receive an additional five or ten

points (depending on their preference eligibility), added to the

minimum scores identified above. Candidates will be placed in one of

the quality groups based on their numerical score, including any

veterans' preference points: Basically Qualified (score of 70 and

above); Highly Qualified (score of 80 and above); or Superior (score of

90 and above). The names of preference eligibles will be entered ahead

of others having the same numerical score.

For scientific/engineering and professional positions at the basic

rate of pay equivalent to GS-9 and above, candidates will be referred

by quality groups in the order of the numerical ratings, including any

veterans' preference points. For all other positions, (i.e., other than

scientific/engineering and professional positions at the equivalent of

GS-9 and above), preference eligibles with a compensable service-

connected disability of ten percent or more who meet basic (minimum)

eligibility will be listed at the top of the highest group certified.

Selecting officials should be provided with a reasonable number of

qualified candidates from which to choose. All candidates in the

highest group will be certified. If there is an insufficient number of

candidates in the highest group, candidates in the next lower group may

be certified in rank order. When two or more groups are certified,

candidates will be identified by quality group (i.e., Superior, Highly

Qualified, Basically Qualified) in the order of their numerical scores.

Passing over any preference eligible(s) to select a nonpreference

eligible requires approval under current pass-over or objection

procedures.

(b) Scholastic Achievement Appointment

This project proposes to establish a Scholastic Achievement

Appointment that provides the authority to appoint candidates with

degrees to positions with positive education requirements. Candidates

may be appointed under this procedure if: (1) They meet the minimum

standards for the positions as published in OPM's Operating Manual

``Qualification Standards for General Schedule Positions,'' plus any

selective factors stated in the vacancy announcement; (2) the

occupation has a positive education requirement; (3) the candidate has

a cumulative grade point average (GPA) of 3.5 or better (on a 4.0

scale) in those courses in those fields of study that are specified in

the Qualification Standards for the occupational series and an overall

undergraduate GPA of at least 3.0 on a 4.0 scale; and (4) the

appointment is into a position at a pay level lower than the top step

of GS-7. Appointments may also be made at the equivalent of GS-9

through GS-11 on the basis of graduate education and experience, but

with the requirement of a GPA of at least 3.7 on a scale of 4.0 for

graduate courses in the field of study required for the occupation.

Veterans' preference procedures will apply when selecting candidates

under this authority. Preference eligibles who meet the above criteria

will be considered ahead of nonpreference eligibles. Passing over any

preference eligible(s) to select a nonpreference eligible requires OPM

approval under current objection procedures. This authority allows for

competitive appointment to positions at the broadband level II.

2. Appointment Authority

The DoD acquisition environment is seriously affected by variable

workload and mission changes that require flexibility not only in

workforce numbers but required skills and knowledge. The current

personnel system is unable to rapidly adapt the workforce to these

changes. This demonstration project will provide a method to expand and

contract the workforce as needed. Under this demonstration project

there will be three appointment options: permanent, temporary limited,

and modified term appointments. The permanent option will be the

existing career and career-conditional appointments. The temporary

limited option will be the existing temporary-authority-not-to-exceed-

one-year appointments. The modified term option will be a new

appointment authority that is based on the existing term appointment,

but may extend up to five years with a one-year locally approved

extension. Benefits and appeal rights are the same as those currently

afforded term employees.

Agencies may make a modified term appointment for a period that is

expected to last longer than one year, but not to exceed five years

with an option for one additional year, when the need for an employee's

service is not permanent.

Reasons for making a modified term appointment include, but are not

limited to, carrying out special project work; staffing new or existing

programs of limited duration; filling a position in activities

undergoing review for reduction or closure; and replacing permanent

employees who have been temporarily assigned to another

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position, are on extended leave, or have entered military service.

Selections for modified term appointments will be made under

competitive examining processes. An agency may make a modified term

appointment without regard to the existence of an appropriate

certificate if there are insufficient eligibles on the appropriate

register and the selectee is:

(a) A person with eligibility for reinstatement;

(b) Any veteran who meets the qualifications for a veterans

readjustment appointment;

(c) A person eligible for career or career-conditional employment

under Secs. 315.601, 315.605, 315.606, 315.607,

315.609, 315.703, or 316.608;

(d) A former term employee of the agency who left prior to the

expiration of his/her appointment. Reappointment must be to a position

covered by the same term authority under which the individual

previously served, and service under such reappointment may not exceed

the expiration date of the original term appointment;

(e) A disabled veteran who has been retired from active military

service with a disability rating of 30 percent or more, or has been

rated by the Department of Veterans Affairs within the preceding year

as having a compensable, service-connected disability of 30 percent or

more;

(f) A person eligible for acquisition of competitive status for

career appointment under 5 U.S.C. 3304(c). (However, a term employee

does not acquire a competitive status on the basis of this term

appointment; nor does this term appointment extend or terminate the

employee's eligibility under 5 U.S.C. 3304(c)); or

(g) A temporary employee who is within reach for term appointment

to the same position from an appropriate register at the time of his/

her temporary appointment, or during subsequent service in the

position, provided that the register was being used for term

appointments at the time the employee was reached and he/she has been

continuously employed in the position since being reached.

An agency may place a modified term employee in any other modified

term position provided the employee meets the qualifying requirements

of that position. However, such reassignment will not serve to extend

the appointment beyond the original term appointment time period. The

qualifications of modified term employees will be determined according

to OPM's Operating Manual ``Qualifications Standards for General

Schedule Positions'' and applicable DAWIA requirements.

Employees hired under the modified term appointment authority are

in a temporary status but 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 positions(s) may be eligible for conversion to career-

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

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

merit promotion procedures for the permanent position.

Service under a modified term appointment immediately prior to a

permanent appointment shall count toward the probationary period

requirements provided contribution is adequate and the permanent

position is in the same career path as the modified term appointment.

3. Voluntary Emeritus Program

Under the demonstration project, Commanders/Directors will have the

authority to offer retired or separated individuals voluntary

assignments in their activities and to accept the gratuitous services

of those individuals. Voluntary emeritus program assignments are not

considered employment by the Federal Government (except as indicated

below). Thus, such assignments do not affect an employee's entitlement

to buy-outs or severance payments based on earlier separation from

Federal Service. This program may not be used to replace or substitute

for work performed by civilian employees occupying regular positions

required to perform the mission of the command.

The Voluntary Emeritus Corps will ensure continued quality

acquisition by allowing higher paid employees to accept retirement

incentives with the opportunity to retain a presence in the acquisition

community. The program will be beneficial during manpower reductions as

program managers, engineers, and other skilled acquisition

professionals accept retirement and return to provide a continuing

source of corporate knowledge and valuable on-the-job training or

mentoring to less experienced employees.

To be accepted into the Voluntary Emeritus Corps, a volunteer must

be recommended to the decision-making authority by one or more

acquisition managers. No one who applies is entitled to an emeritus

position. The decision-making authority must 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 volunteer's

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

affected while the volunteer is serving in emeritus status. Retired or

separated Federal employees may accept an emeritus position without a

``break in service'' or mandatory waiting period.

Voluntary Emeritus Corps volunteers will not be permitted to

monitor contracts on behalf of the Government but may participate on

any contract if no conflict of interest exists. The volunteer may be

required to submit a financial disclosure form annually and will not be

permitted 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 among the volunteer, the decision-

making authority, and the Civilian Personnel Office. The agreement must

be finalized before the assumption of duties and shall include:

(a) a statement that the service provided is gratuitous, does not

constitute an appointment in the Civil Service, is without compensation

or other benefits except as provided for in the agreement itself, and

that, except as provided in the agreement regarding work-related injury

compensation, any and all claims against the Government because of the

service are waived by the volunteer;

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

employee for the purposes of:

(i) Subchapter I of Chapter 81 of title 5, U.S.C. (using the

formula established in 10 U.S.C. Secs. 1588 for determination of

compensation) (work-related injury compensation);

(ii) Chapter 171 of title 28, U.S.C. (tort claims procedure);

(iii) Section 552a of title 5, U.S.C. (records maintained on

individuals); and

(iv) Chapter 11 of title 18, U.S.C. (conflicts of interest).

(c) The 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 activity (travel, administrative,

office space, supplies, etc.);

(f) A one-page statement of duties and experience;

(g) A statement specifying that no additional time will be added to

a volunteer's service credit for such

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purposes as retirement, severance pay, and leave as a result of being a

member of the Voluntary Emeritus Corps;

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

ten days' written notice; and

(i) The level of security access required.

4. Extended Probationary Period

For employees in the professional career path, the current one-year

probationary period does not always provide managers the time needed to

properly assess the contribution and conduct of new hires in the

acquisition environment. Often, new hires are required to attend

extensive training and/or educational assignments away from their

normal work site and outside the review of their supervisors. A means

of extending the opportunity for management to review and evaluate the

contribution and potential of new hires so assigned is needed.

Expansion of the current one-year probationary period will afford

management better control over the quality of employees required to

meet mission needs and provide sufficient opportunity to evaluate

contribution during the beginning of an acquisition career.

All newly hired permanent career-conditional employees in the

professional career path may be subject to an extension of their

probationary period equal to the length of any educational/training

assignment that places the employee outside normal supervisory review.

The extended probationary period could apply to non-status hires, i.e.,

new hires or those who do not have reemployment or reinstatement

eligibility. An employee appointed prior to the implementation date of

the demonstration project will not be affected. Aside from extending

the probationary period, all other features of the current probationary

period are retained.

Probationary employees will be terminated when they fail to

demonstrate proper conduct, technical competency, and/or adequate

contribution for continued employment. When a supervisor decides to

terminate an employee serving a probationary period because his/her

work contribution or conduct during that period fails to demonstrate

fitness or qualifications for continued employment, the supervisor

shall terminate the employee's 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 supervisor's conclusions as to the

inadequacies of the employee's contribution or conduct.

Service under modified term appointment with no break in service

before a permanent appointment made under this demonstration project

shall count toward the probationary period requirements, provided that

the contribution is adequate and the permanent position is in the same

career path as the modified term appointment.

B. Broadbanding

1. Broadband Levels

The broadbanding system will replace the current General Schedule

(GS) structure. Currently, the 15 grades of the General Schedule are

used to classify positions and, therefore, to set pay. The General

Schedule covers all ``white-collar'' work--administrative, technical,

clerical, and professional. The system will initially cover only those

positions designated by the Defense Acquisition Workforce Improvement

Act (DAWIA) in the Department of Defense acquisition workforce and

those positions that support the acquisition workforce.

Occupations with similar characteristics will be grouped together

into three career paths with broadband levels designed to facilitate

pay progression and to allow for more competitive recruitment of

quality candidates at differing rates. Competitive promotions will be

less frequent and movement through the broadband levels will be a more

seamless process than under current procedures. Like the previous

broadband systems used at the Department of the Navy (China Lake) and

the National Institute of Standards and Technology (NIST) permanent

demonstration projects, advancement within the system is contingent on

merit.

There will be four broadband levels in the demonstration project,

labeled I, II, III, and IV. Levels I through IV will include the

current grades of GS-01 through GS-15. These are the grades in which

the DoD acquisition workforce employees are currently found. Comparison

to the GS grades was used in setting the upper and lower dollar limits

of the broadband levels; however, once the employees are moved into the

demonstration project, GS grades will no longer apply.

The three career paths and their associated broadband levels are as

follows:

[[Page 14284]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.052

[[Page 14285]]

Generally, employees will be converted into the broadband level

that includes their permanent GS grade of record. Each employee is

assured an initial place in the system without loss of pay. As the

rates of the General Schedule are increased due to General Schedule pay

increases, the minimum and maximum rates of the broadband levels will

also move up. Individual employees receive pay increases based on their

appraisals under the Contribution-based Compensation and Appraisal

System (CCAS). Since pay progression through the levels depends on

contribution, there will be no scheduled within-grade increases (WGIs)

or scheduled General Schedule increases for employees once the

broadbanding system is in place. Special salary rates will no longer be

applicable to demonstration project employees. Employees will be

eligible for the locality pay of their geographical area (see section

V, paragraph A, ``Conversion to the Demonstration Project'') with the

exception of those employees stationed at an overseas location.

Newly hired personnel entering the system will be employed at a

level consistent with the expected basic qualifications for the level,

as determined by rating against qualifications standards. The hiring

official will determine the starting salary based upon available labor

market considerations relative to special qualifications requirements,

scarcity of qualified applicants, programmatic urgency, and education/

experience of the new candidates.

The use of broadbanding provides a stronger link between pay and

contribution to the mission of the organization. It is simpler, less

time consuming, and less costly to maintain. In addition, such a system

is more easily understood by managers and employees, is easily

delegated to managers, coincides with recognized career paths, and

complements the other personnel management aspects of the demonstration

project.

2. Simplified Assignment Process

Today's environment of downsizing and workforce transition mandates

that the organization have maximum flexibility to assign individuals.

Broadbanding enables the organization to have the maximum flexibility

to assign an employee within broad descriptions, consistent with the

needs of the organization and the individual's qualifications.

Assignments may be accomplished as realignments and do not constitute a

position change. 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 broader latitude in assignments and further

streamlines the administrative process and system.

C. Classification

1. Occupational Series

The present General Schedule classification system has 434

occupational series that are divided into 22 occupational families.

The acquisition personnel demonstration project currently covers

numerous series in the 22 occupational families. The occupational

series, which frequently provide well-recognized disciplines with which

employees wish to be identified, will be maintained. This will

facilitate movement of personnel into and out of the demonstration

project.

2. Classification Standards

The present system of OPM classification standards will be used for

identification of proper series and occupational titles of positions

within the demonstration project. References in the position

classification standards to grade criteria will not be used as part of

the demonstration project. Rather, the CCAS broadband level

descriptors, as aligned in the three career paths, will be used for the

purpose of broadband level determination. These descriptors are derived

from the OPM Primary Classification Standard. Under the demonstration

project, each broadband level is represented by a set of descriptors.

This eliminates the need for the use of grading criteria in OPM

classification standards. The broadband level descriptors can be found

in section D.

3. Classification Authority

Under the demonstration, commanders (or equivalent) will have

delegated classification authority and may re-delegate this authority

to subordinate management levels. Re-delegated classification approval

must be exercised at least one management level above the first-line

supervisor of the employee or position under review. First-line

supervisors will provide classification recommendations. Personnel

specialists will provide on-going consultation and guidance to managers

and supervisors throughout the classification process.

4. Position Requirements Document

Under the demonstration project's classification system, a new

position requirements document (PRD) will replace the current agency-

developed position description form. The PRD will combine the position

information, staffing requirements, and contribution expectations into

a one- or two-page document. The new PRD will include a description of

job-specific information, reference the CCAS broadband level

descriptors for the assigned broadband level, and provide other

information pertinent to the job. Supervisors will use a computer-

assisted process to produce the PRD. The objectives in developing the

new PRD are to: (a) simplify the descriptions and the preparation

process through automation; (b) provide more flexibility in work

assignments; and (c) provide a more useful tool for other functions of

personnel management, e.g., recruitment, assessment of contribution,

employee development, and reduction in force.

5. Fair Labor Standards Act

Fair Labor Standards Act (FLSA) exemption or non-exemption

determinations will be made consistent with criteria found in 5 CFR

(Code of Federal Regulations) Part 551.

All employees are covered by the FLSA unless they meet criteria for

exemption. The duties and responsibilities outlined in the broadband

level descriptors for each pay band will be compared to the FLSA

criteria and the tentative conclusions programmed into the automated

classification system so that the system will be able to generate the

FLSA coverage based upon the user's selection of occupational family,

pay band, and supervisory responsibility. Each position will be

evaluated on a case-by-case basis by comparing the duties and

responsibilities assigned, the broadband level descriptors for each

broadband level, and the 5 CFR Part 551 FLSA criteria.

6. Classification Appeals

An employee may appeal the occupational series, title, or broadband

level of his or her own position at any time. An employee must formally

raise the areas of concern to supervisors in the immediate chain of

command, either verbally or in writing. If an employee is not satisfied

with the supervisory response, he or she may then appeal to the DoD

appellate level. If an employee is not satisfied with the DoD response,

he or she may appeal to the Office of Personnel Management only after

DoD

[[Page 14286]]

has rendered a decision under the provisions of the demonstration

project. Appellate decisions from OPM are final and binding on all

administrative, certifying, payroll, disbursing, and accounting

officials of the Government. Time periods for case processing under

title 5 apply.

An employee may not appeal the accuracy of the position

requirements document, the demonstration project classification

criteria, or the pay-setting criteria; the propriety of a salary

schedule; or matters grievable under an administrative or negotiated

grievance procedure or an alternative dispute resolution procedure.

The evaluation of classification appeals under this demonstration

project is based upon the demonstration project classification

criteria. Case files will be forwarded for adjudication through the

Civilian Personnel Office/Human Resources Office (CPO/HRO) providing

personnel service and will include copies of appropriate demonstration

project criteria.

D. Contribution-based Compensation and Appraisal System

1. Overview

The purpose of the Contribution-based Compensation and Appraisal

System (CCAS) is to provide an equitable and flexible method for

appraising and compensating the DoD acquisition workforce. It is

central to the objectives of the Defense Acquisition Workforce

Improvement Act (DAWIA) and the National Performance Review, and will

correlate individual compensation to organizational mission

contribution. CCAS allows for more employee involvement in the

performance appraisal process, increases communication between

supervisors and employees, promotes a clear accountability of

contribution by each employee, facilitates employee progression tied to

organizational contribution, and provides an understandable basis for

salary changes. Most of the funds previously allocated for performance-

based awards will be reserved for distribution under the CCAS system,

based on employee contribution.

CCAS is a contribution-based appraisal system that goes beyond a

performance-based rating system. That is, it measures the employee's

contribution to the goals of the organization, rather than how well the

employee performed a job as defined by a performance plan. Past

experience with the existing civilian performance appraisal system

indicates that performance plans are often tailored to the individual's

level of previous performance. Hence, an employee may have been

rewarded by salary step increases for accomplishing a satisfactory

level of performance against a diminishing set of responsibilities.

CCAS promotes salary adjustment decisions made on the basis of an

individual's overall annual contribution when compared to all other

employees and level of compensation. Therefore, larger than average

salary increases are possible for employees who are determined to be

``under-compensated,'' and smaller than average increases are permitted

for employees who are deemed to be ``over-compensated'' in relation to

their organizational contributions.

An employee's performance is a component of contribution that

influences the ultimate Overall Contribution Score (OCS). Contribution

is measured by using a set of factors, discriminators, and descriptors,

each of which is relevant to the success of a DoD acquisition center or

unit. Taken together, these factors, discriminators, and descriptors

capture the critical content of jobs in each career path. The factors,

discriminators, and descriptors may not be modified or supplemented.

These factors, discriminators, and descriptors are the same as those

used to classify a position at the appropriate broadband level.

The six (6) factors are: (1) Problem Solving, (2) Teamwork/

Cooperation, (3) Customer Relations, (4) Leadership/Supervision, (5)

Communication, and (6) Resource Management. These factors were chosen

for evaluating the yearly contribution of DoD acquisition personnel in

the three career paths: (1) Business Management & Technical Management

Professional, (2) Technical Management Support, and (3) Administrative

Support. Each factor has multiple levels of increasing contribution

corresponding to the broadband levels. Each factor contains descriptors

for each respective level within the relevant career path.

CAREER PATH: (1) BUSINESS MANAGEMENT & TECHNICAL MANAGEMENT

PROFESSIONAL

FACTOR: 1.--PROBLEM SOLVING

FACTOR DESCRIPTION

This factor describes/captures personal and organizational problem-

solving results. EXPECTED PERFORMANCE CRITERIA (Applicable to all

contributions at all levels): Work is timely, efficient, and of

acceptable quality. Completed work meets project/program objectives.

Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14287]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.053

[[Page 14288]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.054

FACTOR: 2.--TEAMWORK/COOPERATION

FACTOR DESCRIPTION

This factor, applicable to all teams, describes/captures individual

and organizational teamwork and cooperation.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Personal and organizational interactions exhibit and foster cooperation

and teamwork. Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14289]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.055

[[Page 14290]]

FACTOR: 3.--CUSTOMER RELATIONS

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of personal and

organizational interactions with customers (anyone to whom services or

products are provided), both internal (within an assigned organization)

and external (outside an assigned organization).

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Personal and organizational interactions enhance customer relations and

actively promote rapport with customers. Flexibility, adaptability, and

decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.056

[[Page 14291]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.057

FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION

This factor describes/captures individual and organizational

leadership and/or supervision.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Leadership and/or supervision effectively promotes commitment to

mission accomplishment. Flexibility, adaptability, and decisiveness are

exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.058

[[Page 14292]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.059

[[Page 14293]]

FACTOR: 5.--COMMUNICATION

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of oral/written

communications.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Communications are clear, concise, and at appropriate level.

Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.060

[GRAPHIC] [TIFF OMITTED] TN24MR98.061

[[Page 14294]]

FACTOR: 6.--RESOURCE MANAGEMENT

FACTOR DESCRIPTION

This factor describes/captures personal and organizational

utilization of resources to accomplish the mission. (Resources include,

but are not limited to, personal time, equipment and facilities, human

resources, and funds.)

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Resources are utilized effectively to accomplish mission. Flexibility,

adaptability, and decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.062

[[Page 14295]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.063

CAREER PATH: (2) TECHNICAL MANAGEMENT SUPPORT

FACTOR: 1.--PROBLEM SOLVING

FACTOR DESCRIPTION

This factor describes/captures personal and organizational problem-

solving.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Completed work meets project/program objectives. Flexibility,

adaptability, and decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14296]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.064

[[Page 14297]]

FACTOR: 2.--TEAMWORK/COOPERATION

FACTOR DESCRIPTION

This factor describes/captures individual and organizational

teamwork and cooperation.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Personal and organizational interactions exhibit and foster cooperation

and teamwork. Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.065

[GRAPHIC] [TIFF OMITTED] TN24MR98.066

FACTOR: 3.--CUSTOMER RELATIONS

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of personal and

organizational interactions with customers (anyone to whom services or

products are provided), both internal (within an assigned organization)

and external (outside an assigned organization).

[[Page 14298]]

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Personal and organizational interactions enhance customer relations and

actively promote rapport with customers. Flexibility, adaptability, and

decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[GRAPHIC] [TIFF OMITTED] TN24MR98.067

[[Page 14299]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.068

FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION

This factor describes/captures individual and organizational

leadership and/or supervision.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Leadership and/or supervision effectively promotes commitment to

mission accomplishment. Flexibility, adaptability, and decisiveness are

exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14300]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.069

FACTOR: 5.--COMMUNICATION

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of oral/written

communications.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality.

Communications are clear, concise, and at appropriate level.

Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14301]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.070

[GRAPHIC] [TIFF OMITTED] TN24MR98.071

FACTOR: 6.--RESOURCE MANAGEMENT

FACTOR DESCRIPTION

This factor describes/captures personal and organizational

utilization of resources to accomplish the mission.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality. Resources are

utilized effectively to accomplish mission. Flexibility, adaptability,

and decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14302]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.072

[GRAPHIC] [TIFF OMITTED] TN24MR98.073

CAREER PATH: (3) ADMINISTRATIVE SUPPORT

FACTOR: 1.--PROBLEM SOLVING

FACTOR DESCRIPTION

This factor describes/captures personal and organizational problem

solving.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality. Completed

work meets project/program objectives. Flexibility, adaptability, and

decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14303]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.074

[GRAPHIC] [TIFF OMITTED] TN24MR98.075

FACTOR: 2.--TEAMWORK/COOPERATION

FACTOR DESCRIPTION

This factor describes/captures individual and organizational

teamwork and cooperation.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality. Personal and

organizational interactions exhibit and foster cooperation and

teamwork. Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14304]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.076

FACTOR: 3.--CUSTOMER RELATIONS

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of personal and

organizational interactions with customers (anyone to whom services or

products are provided), both internal (within an assigned organization)

and external (outside an assigned organization).

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality. Personal and

organizational interactions enhance customer relations and actively

promote rapport with customers. Flexibility, adaptability, and

decisiveness are exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14305]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.077

FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION

This factor describes/captures individual and organizational

leadership and/or supervision.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Leadership and/or supervision effectively promotes commitment to

mission accomplishment. Flexibility, adaptability, and decisiveness are

exercised appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14306]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.078

FACTOR: 5.--COMMUNICATION

FACTOR DESCRIPTION

This factor describes/captures the effectiveness of oral/written

communications.

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels):

Work is timely, efficient, and of acceptable quality.

Communications are clear, concise, and at appropriate level.

Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14307]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.079

FACTOR: 6.--RESOURCE MANAGEMENT

FACTOR DESCRIPTION

This factor describes/captures personal and organizational

utilization of resources to accomplish the mission. (Resources include,

but are not limited to, personal time, equipment and facilities, human

resources, and funds.)

EXPECTED PERFORMANCE CRITERIA (Applicable to all contributions at

all levels): Work is timely, efficient, and of acceptable quality.

Available resources are utilized effectively to accomplish mission.

Flexibility, adaptability, and decisiveness are exercised

appropriately.

Descriptors indicate the type of contribution appropriate for the

high end of each level. Descriptors are not to be used individually to

assess contributions, but rather are to be taken as a group to derive a

single evaluation of the factor.

[[Page 14308]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.080

2. Normal Pay Range (NPR)

The Contribution-based Compensation and Appraisal System (CCAS)

integrated pay schedule provides a direct link between increasing

levels of contribution and increasing salary. This is shown by the

graph in Figure 1. The horizontal axis spans from 0 to the maximum

contribution score of 100. The vertical axis spans from zero dollars to

the dollar equivalent of GS-15, step 10. This encompasses the full

salary range paid under this demonstration; GS-1, step 1 through GS-15,

step 10 for Calendar Year 1998 (CY98). (Note: Figure 1 currently

depicts CY98. Each year the rails for the NPR are adjusted based on the

General Schedule pay increase under 5 U.S.C. 5303.) The area between

the upper and lower rail is considered the normal pay range; employees

whose annual overall contribution score (OCS) plotted against their

base salary falls on or within the rails are considered ``appropriately

compensated.'' Employees whose salaries fall below the NPR for their

assessed contribution score are considered ``under-compensated,'' and

those falling above the NPR are considered ``over-compensated.'' The

goal of CCAS is to make pay consistent with employees' contributions to

the mission of the organization.

[[Page 14309]]

Figure 1. Normal Pay Range

[GRAPHIC] [TIFF OMITTED] TN24MR98.081

The NPR was established using the following parameters:

1. The lowest possible score is an OCS of 0, which equates to the

lowest salary paid under this demonstration, GS-1, step 1.

2. The highest possible score is an OCS of 100, which equates to

the highest salary paid under this demonstrations, GS-15, step 10.

3. Changes in OCS correspond to a constant percentage change in

salary along the rails.

4. The upper and lower rails encompass an area of +/-4.0 OCS

points, or +/-8.0 percent in terms of salary, relative to the points

established in parameters 1 and 2, above.

FORMULAE

Given these constraints, the formulae for the rails found in Figure

1 are:

Salary upper rail = 13997* (1.020043) OCS

Salary lower rail = 11923* (1.020043) OCS

The integrated pay schedule and the NPR are the same for all the

career paths. What vary among the career paths are the beginnings and

endings of the broadband levels. The minimum and maximum numerical OCS

values and associated base salaries for each broadband level by career

path are provided in Table 4. These minimum and maximum breakpoints

represent the lowest and highest General Schedule (GS) salary rate for

the grades banded together and, therefore, the minimum and maximum

salaries possible for each level. Each year, the rails for the NPR are

adjusted based on the General Schedule pay increase granted to the

Federal workforce. Locality salary adjustments are not included in the

NPR but are incorporated in the demonstration participants' pay.

Employees will enter the demonstration project without a loss of

pay (see section V) and without a CCAS score. The first CCAS score will

result from the first annual CCAS assessment process. Until then, no

employee is either under-compensated or over-compensated. Employees,

however, may determine their expected contribution range by locating

the intersection of their salary with the rails of the NPR. Future CCAS

assessments may alter an employee's position relative to these rails.

[[Page 14310]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.082

3. CCAS Appraisal Process

The annual appraisal cycle begins on October 1 and ends on

September 30 of the following year. At the beginning of the annual

appraisal period, the broadband level descriptors will be provided to

employees so that they know the basis on which their contribution will

be assessed for their pay pool. (A pay pool is a group of employees

among whom the CCAS dollars are distributed. This might be all the

employees in a division or directorate. The local commander determines

the pay pool structure.) At that time, employees will be advised that

all factors are critical. Key terms such as ``team'' and ``customer''

will be defined or clarified. Supervisor and employee discussion of

specific work assignments, standards, objectives, and the employee's

contributions within the CCAS framework should be conducted on an

ongoing basis.

At the end of the annual appraisal period, the immediate supervisor

(rating official) meets with his/her employees, requesting them to

summarize their contributions for each factor. From employees' inputs

and his/her own knowledge, the rating official identifies for each

employee the appropriate contribution level (1, 2, 3, or 4) for each

factor. The rating officials (including second-level supervisor) meet

to ensure consistency and equity of the contribution ratings. Then the

rating officials calculate the overall contribution scores (OCS).

To determine the OCS, numerical values are assigned based on the

contribution levels of individuals, using the ranges shown in Table 5.

Generally, the OCS is calculated by averaging the numerical values

assigned for each of the six factors. (All OCSs will be rounded to the

nearest whole number.) However, at the discretion of the pay pool

manager, different weights may be applied to the factors to produce a

weighted average, provided that the weights are applied uniformly

across the pay pool and employees are advised in advance, i.e., at the

beginning of the

[[Page 14311]]

rating period. Weighting may not result in any factor becoming zero.

The rating officials (including second-level supervisor) meet again

to review the OCS for all employees, correcting any inconsistencies

identified and making the appropriate adjustments in the factor

ratings, and placing the employees in rank order.

[GRAPHIC] [TIFF OMITTED] TN24MR98.083

The pay pool panel (pay pool manager and the rating officials in

the pay pool who report directly to him/her) conducts a final review of

the OCS and the recommended compensation adjustments for the pay pool

members. The pay pool panel has the authority to make OCS adjustments,

after discussion with the initial rating officials, to ensure equity

and consistency in the ranking of all employees.

Final approval of OCS rests with the pay pool manager, the

individual within the organization responsible for managing the CCAS

process. The OCS, as approved by the pay pool manager, becomes the

rating of record. Rating officials will communicate the factor scores

and OCS to each employee and discuss the results.

If on October 1, the employee has served under CCAS for less than

six months, the rating official will wait for the subsequent annual

cycle to assess the employee. The first CCAS appraisal must be rendered

within 18 months after entering the demonstration project.

When an employee cannot be evaluated readily by the normal CCAS

appraisal process due to special circumstances that take the individual

away from normal duties or duty station (e.g., long-term full-time

training, active

[[Page 14312]]

military duty, extended sick leave, leave without pay, etc.), the

rating official will document the special circumstances on the

appraisal form. The rating official will then determine which of the

following options to use:

(a) Re-certify the employee's last contribution appraisal; or

(b) Presume the employee is contributing consistently with his/her

pay level and will be given the full general increase.

Pay adjustments will be made on the basis of the CCAS appraisal or

substitute determination and the employee's rate of basic pay. Pay

adjustments are subject to pay-out rules discussed in section III D 5.

Final pay determinations will be made at the pay pool manager's level.

CCAS scores can only be adjusted after discussion with the rating

official.

Pay adjustments will be documented by SF-50, Notification of

Personnel Action. For historical and analytical purposes, the effective

date of CCAS assessments, actual appraisal scores, actual salary

increases, amounts contributed to the pay pool, and applicable

``bonus'' amounts will be maintained for each demonstration project

employee.

4. Pay Pools

The pay pool structure and allocated funds are under the authority

of the local commander or equivalent. The following minimal guidelines

will apply: (a) a pay pool is based on the organizational structure and

should include a range of salaries and contribution levels; (b) a pay

pool should be large enough to constitute a reasonable statistical

sample, i.e., not less than 35 individuals (when possible) or more than

300 individuals; (c) a pay pool must be large enough to include a

second level of supervision, since the CCAS process uses a group of

supervisors in the pay pool to determine OCS and recommended salary

adjustments; and (d) neither the pay pool manager nor the supervisors

within a pay pool will recommend or set their own individual pay

levels.

The amount of money available within a pay pool is determined by

the general pay increase and the money that would have been available

for quality step increases, within-grade increases, awards

(performance-based awards as defined in 5 U.S.C. 4505(a)), promotions

between grades encompassed in the same broadband level, and other

appropriate factors (reference section VIII B). However, the awards

money portion cannot be used for increments to salary. The dollars to

be included in the pay pool will be computed based on the salaries of

the employees in the pay pool as of September 30 each year.

5. Salary Adjustment Guidelines

After the initial assignment into the CCAS, employees' yearly

contributions will be determined by the CCAS process described above,

and their overall contribution scores versus their current rate of

basic pay will be plotted on a graph along with the NPR (see Figure 2).

The position of those points relative to the upper and lower rails of

the NPR gives a relative measure of the compensation (salary) versus

contribution (OCS). Employees fall into one of three categories: under-

compensated (Employee A), appropriately compensated (Employee B), or

over-compensated (Employee C). Depending on the category into which

each employee falls, he/she is eligible for up to three forms of

additional compensation. The pay pool panel has the option of awarding

the employee up to the full General Schedule pay increase (as

authorized by Congress and the President), a contribution rating

increase (an increase in base salary), and/or a contribution award (a

lump-sum payment that does not affect base salary). Employees on

retained rate in the demonstration plan will receive pay adjustments in

accordance with 5 U.S.C. 5363 and 5 CFR 536.101. An employee receiving

a retained rate is not eligible for a contribution rating increase,

since such increases are limited by the maximum salary rate for the

employee's broadband level. An outline of compensation eligibility by

contribution category is given in Table 6.

[[Page 14313]]

Figure 2. CCAS COMPENSATION CATEGORIES

[GRAPHIC] [TIFF OMITTED] TN24MR98.084

[[Page 14314]]

In general, those employees who fall in the under-compensated

category of the NPR should expect to receive greater percentage salary

increases than those who fall in the over-compensated category. Over

time, people will migrate closer to the normal pay range and receive a

salary appropriate for their level of contribution.

Employees whose OCS would result in awarding a contribution rating

increase such that the salary exceeds the maximum salary for their

current broadband level may receive a contribution award equaling the

difference.

The contribution rating increase fund includes what are now within-

grade increases, quality step increases, and promotions between grades

encompassed in the same broadband level. The fund will be set at not

less than two percent of the activity's total salary budget (2.4

percent for the first year). This figure will be adjusted as necessary

to maintain cost discipline over the life of the demonstration project.

The amount of money available to each pay pool is determined annually

by the local commander. The general pay increase fund and the

contribution rating increase fund may be transferred to another

category, but the contribution award fund may not be transferred.

The contribution award fund includes what were formerly performance

awards and will be used for awards given under the CCAS process. The

fund will be set at not less than one percent of the activity's total

salary budget. This fund will not exceed 90 percent of the total awards

budget so as to allow for other awards not related to the CCAS process,

e.g., on-the-spot awards and group awards, which will continue to be

encouraged by management to promote excellence in acquisition and

attainment of organizational goals. For the first year this fund will

be set at 1.3 percent.

Each pay pool manager will set the necessary guidelines for pay

adjustments in the pay pool. Decisions will be consistent within the

pay pool, reflect cost discipline over the life of the demonstration

project, and be subject to command review. The maximum available pay

rate under this demonstration project will be the rate for a GS-15,

step 10.

6. Movement Between Broadband Levels

It is the intent of the demonstration project to have career growth

accomplished through the broadband levels. Movement within a broadband

level will be determined by contribution and salary following the CCAS

pay-out calculation. Movement to a higher broadband level is normally a

competitive action, based on Office of Personnel Management

qualifications standards. Movement to a lower broadband level may be

voluntary or involuntary.

Broadband levels were derived from salaries of the banded GS

grades. The lowest salary of any given broadband level is that for step

1 of the lowest GS grade in that broadband level. Likewise, the highest

salary of any given broadband level is that for step 10 of the highest

GS grade in that broadband level. There is a natural overlap in

salaries in the GS grades that also occurs in the broadband system.

Since the OCS is directly related to salaries, there is also an overlap

between OCS across broadband levels.

Under the demonstration project, managers are provided greater

flexibility in assigning duties by moving employees between positions

within their broadband level. If there are vacancies at higher levels,

employees may be considered for promotion to those positions in

accordance with competitive selection procedures. Noncompetitive

promotion capabilities in the current system will remain viable in the

demonstration.

Under the approved competitive selection procedures, the selecting

official may consider candidates from any source based on viable and

supportable job-related, merit-based methodology. Similarly, if there

is sufficient cause, an employee may be demoted to a lower broadband

level position according to the contribution-based reduction-in-pay or

removal procedures discussed in section III E 2.

7. Implementation Schedule

The 1998 employee annual appraisal will be done according to

Component performance plan rules in effect at the time of the 1998

close-out. Employees will be moved by personnel action into the

demonstration project and into the appropriate broadband level between

October 1998 and February 1999 following an implementation plan

approved by DoD and OPM. Employees will receive base pay adjustments

for accrued within-grade increases and career ladder promotions at the

time they are moved. All employees under the demonstration project will

receive the January 1999 general pay increase.

8. CCAS Grievance Procedures

An employee may not grieve the pay received under CCAS except where

the employee is covered by a negotiated grievance procedure that

includes grievances over CCAS pay.

An employee may grieve the OCS (rating of record). If an employee

is covered by a negotiated grievance procedure that includes grievances

over appraisal scores, then the employee must resolve a grievance over

an appraisal score under that procedure (i.e., that procedure is the

sole and exclusive procedure for resolving such grievances). If an

employee is not in a bargaining unit, or is in a bargaining unit but

grievances over appraisal scores are not covered under a negotiated

grievance procedure, then the employee may use the administrative

grievance procedure (5 CFR Part 771) with supplemental instructions

described in the following paragraph.

The employee will submit the grievance first to the rating

official, who will submit a recommendation to the pay pool panel. The

pay pool panel may accept the rating official's recommendation or reach

an independent decision. In the event that the pay pool panel's

decision is different from the rating official's recommendation,

appropriate justification will be provided. The pay pool panel's

decision is final unless the employee requests reconsideration by the

next higher official to the pay pool manager. That official would then

render the final decision on the grievance.

9. Using the CCAS Rating as Additional Service Credit During Reduction

in Force

Table 7 illustrates the years of retention service credit

associated with appraisal results:

[[Page 14315]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.085

[[Page 14316]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.086

E. Special Situations Related to Pay

1. Change in Assignment

[[Page 14317]]

The CCAS concept, using the broadbanding structure, provides

flexibility in making assignments. In many cases an employee can be

assigned, without change in their rate of basic pay, within broad

descriptions, and, at the same time, consistent with the needs of the

organization and commensurate with the individual's qualifications.

Subsequent organizational assignments to projects, tasks, or functions

requiring the same level and area of expertise and the same

qualifications would not constitute an assignment outside the scope or

coverage of the current level descriptors. In most cases, such

assignments would be within the factor descriptors and could be

accomplished without the need to process a personnel action. Assignment

resulting in series change or competitive level change shall be

accomplished by official personnel action. Thus, this approach allows

for broader latitude in organizational assignments and streamlines the

administrative process. Rules for specific types of assignments under

CCAS follow.

(a) Competitive, Noncompetitive, and Temporary Promotions. When an

employee is promoted to a higher broadband level, the salary upon

promotion will be at least six percent, but not more than 20 percent,

greater than the employee's current salary. However, if the minimum

rate of the new broadband level is more than 20 percent greater than

the employee's current salary, then the minimum rate of the new

broadband level is the new salary. The employee's salary may not exceed

the salary range of the new broadband level.

(b) Competitive Selection for a Position with Higher Potential

Salary. When an employee is competitively selected for a position with

a higher target broadband level than previously held (e.g., Upward

Mobility), upon movement to the new position the employee will receive

the salary corresponding to the minimum of the new broadband level or

the existing salary, whichever is greater.

(c) Voluntary Change to Lower Broadband Level/Change in Career Path

(except RIF). When an employee accepts a voluntary change to lower

broadband level or different career path, salary may be set at any

point within the broadband level to which appointed, except that the

new salary will not exceed the employee's current salary or the maximum

salary of the broadband level to which assigned, whichever is lower.

(d) Involuntary Change to Lower Broadband Level Without Reduction

in Pay Due to Contribution-based Action. Due to inadequate

contribution, an employee's salary may fall below the minimum rate of

basic pay for the broadband level to which he/she is assigned. When an

employee is changed to a lower broadband level due to such a situation,

this movement is not considered an adverse action.

(e) Involuntary Reduction in Pay, to Include Change to Lower

Broadband Level and/or Change in Career Path Due to Adverse Action. An

employee may receive a reduction in pay within his/her existing

broadband level and career path, be changed to a lower broadband level,

and/or be moved to a new position in a different career path due to an

adverse action. In these situations, the employee's salary will be

reduced by at least 6 percent, but will be set no lower than the

minimum salary of the broadband level to which assigned. Employees

placed into a lower broadband due to adverse action are not entitled to

pay retention.

(f) Reduction-in-Force (RIF) Action (including employees who are

offered and accept a vacancy at a lower broadband level or in a

different career path). The employee is entitled to pay retention if

all title 5 conditions are met.

(g) Return to Limited or Light Duty from a Disability as a Result

of Occupational Injury to a Position in a Lower Broadband Level or to a

Career Path with Lower Salary Potential than Held Prior to the Injury.

The employee is entitled indefinitely to the salary held prior to the

injury and will receive full general and locality pay increases.

2. Contribution-based Reduction-in-Pay or Removal Actions

CCAS is a contribution-based appraisal system that goes beyond a

performance-based rating system. Contribution is measured against six

critical factors corresponding to the three career paths, each having

multiple levels of increasing contribution. (For the purposes of this

section, critical factors are synonymous with critical elements as

referenced in 5 U.S.C. Chapter 43.) This section applies to reduction

in pay or removal of demonstration project employees based solely on

inadequate contribution. Inadequate contribution in any one factor at

any time during the appraisal period is considered grounds for

initiation of reduction-in-pay or removal action. The following

procedures replace those established in 5 U.S.C. 4303 pertaining to

reductions in grade or removal for unacceptable performance except with

respect to appeals of such actions. 5 U.S.C. 4303(e) provides the

statutory authority for appeals of contribution-based actions. As is

currently the situation for performance-based actions taken under 5

U.S.C. 4303, contribution-based actions shall be sustained if the

decision is supported by substantial evidence and the Merit Systems

Protection Board shall not have mitigation authority with respect to

such actions. The separate statutory authority to take contribution-

based actions under 5 U.S.C. 75, as modified in the waiver section of

this notice (section IX), remains unchanged by these procedures.

When an employee's contribution in any factor is at or less than

the mid-point of the next lower broadband level (or a factor score of

zero for broadband level 1 employees), the employee is considered to be

contributing inadequately. In this case, the supervisor must inform the

employee, in writing, that unless the contribution increases to a score

above the midpoint of this next lower broadband level, and is sustained

at this level, the employee may be reduced in pay or removed. For

broadband level 1 employees, a factor score that increases to and is

sustained above zero is determined to be adequate.

This written notification will include a contribution improvement

plan (CIP) which outlines specific areas in which the employee is

inadequately contributing. Additionally, the CIP must include actions

required of the employee, and the time in which they must be

accomplished, to increase and sustain the employee's contribution at an

adequate level.

Additionally, when an employee's contribution plots in the area

above the upper rail of the normal pay range, the employee is

considered to be contributing inadequately. In this case, the

supervisor has two options. The first is to take no action but to

document this decision in a memorandum for the record. A copy of this

memorandum will be provided to the employee and to higher levels of

management. The second option is to inform the employee, in writing,

that unless the contribution increases to, and is sustained at, a

higher level, the employee may be reduced in pay or removed.

These provisions also apply to an employee whose contribution

deteriorates during the year. In such instances, the group of

supervisors who meet during the CCAS assessment process may reconvene

any time during the year to review the circumstances warranting the

recommendation to take further action on the employee.

When the rating official informs the employee that the employee may

be reduced in pay or removed, the rating official will afford the

employee a

[[Page 14318]]

reasonable opportunity (a minimum of 60 days) to demonstrate acceptable

contribution with regard to identifiable factors. As part of the

employee's opportunity to demonstrate adequate contribution, he or she

will be placed on a contribution improvement plan (CIP). The CIP will

state how the employee's contribution is inadequate, what improvements

are required, recommendations on how to achieve adequate contribution,

assistance that the agency shall offer to the employee in improving

inadequate contribution, and consequences of failure to improve.

Once an employee has been afforded a reasonable opportunity to

demonstrate adequate contribution but fails to do so, a reduction-in-

pay (which may include a change to a lower broadband level and/or

reassignment) or removal action may be proposed. If the employee's

contribution increases to an acceptable level and is again determined

to deteriorate in any factor within two years from the beginning of the

opportunity period, actions may be initiated to effect reduction in pay

or removal with no additional opportunity to improve. If an employee

has contributed acceptably for two years from the beginning of an

opportunity period, and the employee's overall contribution once again

declines to an inadequate level, the employee will be afforded an

additional opportunity to demonstrate adequate contribution before it

is determined whether or not to propose a reduction in pay or removal.

An employee whose reduction in pay or removal is proposed is

entitled to a 30-day advance notice of the proposed action that

identifies specific instances of inadequate contribution by the

employee on which the action is based. The employee will be afforded a

reasonable time to answer the notice of proposed action orally and/or

in writing.

A decision to reduce in pay or remove an employee for inadequate

contribution may be based only on those instances of inadequate

contribution that occurred during the two-year period ending on the

date of issuance of the proposed action. The employee will be issued

written notice at or before the time the action will be effective. Such

notice will specify the instances of inadequate contribution by the

employee on which the action is based and will inform the employee of

any applicable appeal or grievance rights.

All relevant documentation concerning a reduction in pay or removal

that is based on inadequate contribution will be preserved and made

available for review by the affected employee or a designated

representative. As a minimum, the records will consist of a copy of the

notice of proposed action; the written answer of the employee or a

summary when the employee makes an oral reply; and the written notice

of decision and the reasons therefor, along with any supporting

material including documentation regarding the opportunity afforded the

employee to demonstrate adequate contribution.

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

The proposed RIF system will have a single round of competition to

replace the current two-round process. Once the position to be

abolished has been identified, the incumbent of that position may

displace another employee when the incumbent has a higher retention

standing and is fully qualified for the position occupied by the

employee with lower standing. Retention standing is based on tenure,

veterans' preference, length of service, and contribution, preserving

the same weights as today's system. The ``undue disruption'' standard

currently utilized will serve as the criterion to determine if an

employee is fully qualified. In addition, to be fully qualified, the

employee must meet DAWIA statutory requirements for the position, if

applicable. The displaced individual may similarly displace other

employees. Displacement is normally limited to one broadband level

below the employee's present level. However, a preference-eligible

employee with a compensable service-connected disability of 30 percent

or more may displace up to the equivalent of five General Schedule

grades below the employee's present level. If/when there is no position

in which an employee can either be placed by this process or be

assigned to a vacant position, that employee will be separated.

An employee's entitlement to additional service credit associated

with appraisal results will be based on the employee's three most

recent annual overall contribution scores (OCSs) of record received

during the four-year period prior to the issuance of reduction-in-force

notices (see Table 7). However, if at that time three CCAS cycles have

not yet been completed, the annual performance rating of record under

the previous performance management system will be substituted for one

or more OCSs, as appropriate. The value(s) of the actual OCS(s) or

performance rating(s) of record will be divided by the number of actual

rating(s) received. In cases where an individual employee has no annual

OCS or performance rating of record, a modal OCS or performance rating

will be assigned and used to determine the additional service credit

for that individual.

The new system will eliminate current provisions for retained

grade, but will keep retained pay provisions as outlined in 5 U.S.C.

5363 and 5 CFR 536.101 as modified in the waiver section of this notice

(section IX). All positions within commands participating in the

demonstration project and located within the same commuting area may be

considered a separate competitive area.

G. Academic Degree and Certificate Training

Trained and educated personnel are a critical resource in an

acquisition organization. This demonstration recognizes that training

and development programs are essential to improving the performance of

individuals in the acquisition workforce, and thereby raising the

overall level of performance of the acquisition workforce, and that a

well-developed training program is also a valuable tool for recruiting

and retaining motivated employees. Currently, DAWIA authorizes degree

and certificate training for acquisition-coded positions through the

year 2001. This demonstration extends that authority for the duration

of this demonstration and expands its coverage to the acquisition

support positions identified in this demonstration project. It also

provides authorization at the local level to administer and pay for

these degree and certificate training programs. This authorization will

facilitate continuous acquisition of advanced, specialized knowledge

essential to the acquisition workforce and provide a capability to

assist in the recruiting and retaining of personnel critical to the

present and future requirements of the acquisition workforce. Funding

for this training, while potentially available from numerous sources

(including DAWIA for employees in acquisition-coded positions), is the

responsibility of the participating organization.

H. Sabbaticals

Organizations participating in the Acquisition Demonstration will

have the authority to grant sabbaticals without application to higher

levels of authority. These sabbaticals will permit employees to engage

in study or work experience that contributes to their development and

effectiveness. The sabbatical provides opportunities for employees to

acquire knowledge and expertise that cannot be acquired in the

[[Page 14319]]

standard working environment. These opportunities should result in

enhanced employee contribution. The spectrum of available activities

under this program is limited only by the constraint that the activity

contribute to the organization's mission and to the employee's

development. The program can be used for training with industry or on-

the-job work experience with public, private, or nonprofit

organizations. It enables an employee to spend time in an academic or

industrial environment or to take advantage of the opportunity to

devote full-time effort to technical or managerial research.

The Acquisition Demonstration sabbatical program will be available

to all demonstration project employees who have seven or more years of

Federal service. Each sabbatical will be of three to twelve months'

duration and must result in a product, service, report, or study that

will benefit the acquisition community as well as increase the

employee's individual effectiveness. Requests for a sabbatical must be

made by the employee through the chain of command to the employee's

installation Executive Director or equivalent, who has final approval

authority and who must ensure that the program benefits both the

acquisition workforce and the individual employee. Funding for the

employee's salary and other expenses of the sabbatical is the

responsibility of the participating organization.

IV. Training

The key to the success or failure of the proposed demonstration

project will be the training provided for all involved. This training

will provide not only the necessary knowledge and skills to carry out

the proposed changes, but will also lead to participant commitment to

the program.

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) the new position requirements

document; (5) the new classification system; and (6) the contribution-

based compensation and appraisal system.

In conjunction with the education, training, and career development

assets of the Military Services and DoD Agencies, the demonstration

project team will train, orient, and keep informed all supervisors and

employees covered by the demonstration project and administrative staff

responsible for implementing and administering the human resource

program changes.

A. 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 managers 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, as well as skills training in using the classification system,

position requirements document, and contribution evaluation.

B. Administrative Staff

The administrative staff, general personnel specialists,

technicians, and administrative officers will play a key role in

advising, training, and coaching supervisors and employees in

implementing the demonstration project. This staff will receive

training in the procedural and technical aspects of the project.

C. Employees

In the months prior to implementation, the demonstration project

team and Military Service and DoD Agency training and career

development offices will provide all employees covered under the

demonstration project training through various media. This training is

intended to fully inform all affected employees of all significant

project decisions, procedures, and processes.

V. Conversion

A. 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's initial placement into a broadband level

without loss of pay. Automatic conversion from the permanent GS grade

and step of record at time of conversion into the new broadband system

will be accomplished. Adjustments to the employee's base salary for

step increase and non-competitive career ladder promotion will be

computed based on the current value of the step or promotion increase

and a prorated share based upon the number of weeks an employee has

completed towards the next higher step or grade, per paragraph VIII A.

This conversion process, i.e. ``buy-in,'' is applicable to employees

only at the initiation of the demonstration project.

Special salary rates will no longer be applicable to demonstration

project employees. Employees on special salary rates at the time of

conversion will receive a new basic rate of pay computed by dividing

their highest adjusted rate of basic pay (i.e., special pay rate, or if

higher, the locality rate) by the locality pay factor for their area.

All employees will be eligible for the future locality pay increases of

their geographic area.

When conversion into the demonstration project is accompanied by a

simultaneous geographic move, the employee's GS pay entitlements

(including any locality or special rate) in the new area will be

determined before converting the employee's pay to the demonstration

project pay system. A full locality adjustment will then be added to

the new basic pay rate.

Adverse action and pay retention provisions will not apply to the

conversion process, as there will be no change in total salary. If the

employee's rate of basic pay exceeds the maximum rate of basic pay for

the broadband level corresponding to the employee's GS grade, the

employee will remain at that broadband level and will receive a

retained rate. Employees who enter the demonstration project later by

lateral reassignment or transfer will enter at their current basic pay

with no loss or gain due to transfer.

B. Conversion Back to the Former System

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 procedure will be used to convert the employee's project

pay band to a GS grade and the employee's demonstration rate of pay to

a GS rate of pay. The converted GS grade and GS rate 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 assignments, the converted GS grade and rate will

become the employee's actual GS grade and rate after leaving the

demonstration project (before any other action). For transfers,

promotions, and other actions,

[[Page 14320]]

the converted GS grade and rate 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 rate

were actually in effect immediately before the employee left the

demonstration project.

1. Grade-Setting Provisions

An employee is converted to one of the grades in their current

broadband level according to the following rules:

(i) The employee's adjusted rate of pay under the demonstration

project (including any locality payment) is compared with the step 4

rate 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 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.

(ii) 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.

(iii) 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

the step 4 rate of the second-highest grade, the employee is converted

to that grade.

(iv) 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.

(v) 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.

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

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

lateral assignment, or lateral transfer into the project, unless since

that time the employee has undergone a reduction in broadband level or

reduction in pay based upon an adverse action.

2. Pay-Setting Provisions

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

converting the employee's demonstration project rate of pay to a GS

rate of pay in accordance with the following rules:

(i) 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.

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

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

highest applicable 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.)

(iii) 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.)

(iv) 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).

3. Employees Receiving a Retained Rate Under the Project

If an employee is receiving a retained rate under the demonstration

project, the employee's GS-equivalent grade is the highest grade

encompassed in his or her broadband level. The DUSD (AR) and the DASD

(CPP) will coordinate with OPM to prescribe a procedure for determining

GS-equivalent pay rates for employees receiving retained rates.

4. Years of Retention Service Credit and Appraisal Rating Provisions

Employees leaving the demonstration project will be assigned

ratings of record that conform with pattern E of 5 CFR 430.208(d) based

on the years of credit accumulated for the 3 most recent years during

the last 4 years while under the demonstration project. Since the

demonstration project does not make use of summary level designators

(e.g., Exceptional, Level 5; Highly Successful, Level 4; Fully

Successful, Level 3; or Unacceptable, Level 1) used in the appraisal

system and programs constructed under 5 U.S.C. Chapter 43 and 5 CFR

Part 430, the retention service credit that is based on the employee's

OCS as shown in Table 7 will be translated to summary level designators

as shown in Table 8 for use by the gaining agency.

[GRAPHIC] [TIFF OMITTED] TN24MR98.087

[[Page 14321]]

5. 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. CCAS

base salary 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).

VI. Project Duration

The project evaluation plan addresses how each intervention will be

comprehensively evaluated for at least the first five years of the

demonstration project. Major changes and modifications to the

interventions can be made through announcement in the Federal Register,

with OPM approval. At the five-year point, the entire demonstration

project will be reexamined for: (a) permanent implementation; (b)

modification and additional testing; (c) extension of the test period;

or (d) termination.

VII. Evaluation Plan

Demonstration-authorizing legislation (5 U.S.C. Chapter 47)

mandates evaluation of the demonstration project to assess the effects

of project features and outcomes. In addition, the project will be

evaluated for the feasibility of application to other Federal Agencies.

The overall evaluation will consist of three phases--baseline,

formative, and summative evaluations. The evaluation for the

participating agencies will be overseen by the Office of Merit Systems

Oversight and Effectiveness, OPM; the Office of the Secretary of

Defense (Acquisition & Technology); and the Office of the Deputy

Assistant Secretary of Defense (Civilian Personnel Policy), DoD.

The main purpose of the evaluation is to determine the

effectiveness of the personnel system changes to be undertaken. To the

extent possible, strong direct or indirect relationships will be

established between the project features, outcomes, and mission-related

changes and personnel system effectiveness criteria. The evaluation

approach uses an intervention impact model that specifies each

personnel system change as an intervention, the expected effects of

each intervention, the corresponding measures, and the data sources for

obtaining the measures. Table 9 presents the intervention impact model

to be used for this demonstration for initiatives affecting title 5.

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[[Page 14322]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.089

[[Page 14323]]

[GRAPHIC] [TIFF OMITTED] TN24MR98.090

[[Page 14324]]

The specific measures to be collected using the different methods

are determined from the goals and objectives stated for each

intervention. Both qualitative and quantitative measures will be

obtained. Most of the potential measures can be grouped around three

major effectiveness criteria: speed, cost, and quality. Collectively,

the outcomes of the interventions are hypothesized to lead to agency

personnel management improvements, as reflected by timeliness, cost

effectiveness, and quality.

Baseline measures will be taken prior to project implementation.

Then, repeated post-implementation measurements will be taken to allow

longitudinal comparisons by intervention within and across DoD

Components. A comparison group will be selected and compared to the

demonstration project group to determine the effects and outcomes of

the project.

The effectiveness of each intervention and of the project as a

whole in meeting stated objectives will be addressed using a multi-

approach method. Some methods will be unobtrusive in that they do not

require reactions to inputs from employees or managers. These methods

include analysis of archival workforce data and personnel office data,

review of logs maintained by site historians documenting contextual

events, and assessments of external economic and legislative changes.

Other methods such as periodic attitude surveys, structured interviews,

and focus groups will be used to assess the perceptions of employees,

managers, supervisors, and personnel regarding the personnel system

changes and the performance of their organizations in general.

Evaluation activities will also take into account the unique nature of

this project in terms of geographic and organizational diversity.

In addition to the intervention impact model, a general context

model will be used to determine the effects of potential intervening

variables (e.g., downsizing, regionalization of the personnel function,

and the state of the economy in general). Potential unintended outcomes

will also be monitored, and an attempt will be made by the evaluation

team to link the outcomes or project interventions to organizational

effectiveness. In addition to assessing the impact of the individual

project features, the evaluation will also assess the impact of the

project as a whole, along with possible context effects and effects of

intervening variables. The evaluation will also monitor adherence to

the merit systems principles and avoidance of prohibited personnel

practices. In addition, the evaluation will attempt to link the project

effects and outcomes to organizational outcomes such as mission

accomplishment and productivity.

The initial evaluation effort will consist of three main phases--

baseline, formative, and summative evaluation covering five (5) years.

Baseline will collect workforce data to determine the ``as-is'' state.

The formative evaluation phase will include baseline data collection

and analyses, implementation evaluation, and interim assessments.

Periodic reports and annual summaries will be prepared to document the

findings. The summative evaluation phase will focus on an overall

assessment of the project outcomes, looking initially at the first four

(4) years, with a follow-on report covering the first five (5) years.

The rationale for summative evaluation after the first four years is to

assess whether the demonstration will continue after the fifth year. If

the analysis indicates that the interventions show a positive effect

towards meeting the goals of the demonstration, then documentation will

be generated to support a request that the demonstration progress

further. If the analysis indicates that the interventions do not meet

the stated objectives, or if the participating organizations do not

wish to continue in the demonstration, then documentation and planning

for conversion back to the existing personnel system must be prepared.

The fifth-year summative evaluation, used in reporting to Congress,

will provide overall assessment of all initiatives individually and as

a whole. It will also provide recommendations on broader Federal

Government application.

VIII. Demonstration Project Costs

A. Step and Promotion Buy-Ins

Under this demonstration project, implementation of the

broadbanding pay structure eliminates the step increments of the

current pay structure. To facilitate conversion to this system without

loss of pay, employees will receive a basic pay increase for that

portion of the next step corresponding to the time in-step they have

completed up to the effective date of the employee conversion. As under

the current system, supervisors will be able to withhold these partial

increases (step) if the employee's performance has fallen below fully

successful.

Rules governing within-grade increases (WGI) within each

participating Military Service/DoD agency will remain in effect until

the employee conversion date. Adjustments to employees' base salary for

WGI equity will be computed effective the first pay period in FY99

(October 1998). WGI equity shall be acknowledged by increasing base

salaries by a prorated share based upon the actual number of weeks an

employee has completed towards the next higher step. Employees at step

10, or receiving retained pay at the time of conversion will not be

eligible for this equity adjustment. For those employees in career-

ladder promotion programs who are scheduled to be promoted to a higher

grade and whose performance is at least fully successful, base pay will

be increased by a prorated share of the current value of the next

scheduled promotion increase based upon the actual number of weeks the

employee has completed towards the next scheduled promotion. No WGI

equity adjustment will be made if the employee's pay is adjusted for a

promotion that would be effective before the next scheduled WGI.

For purposes of conversion into the demonstration, the January 1999

General Schedule increase to base pay will be given to all employees.

B. Out-Year Project Costs

The overall demonstration cost strategy will be to balance

projected costs with benefits of the demonstration to bring about the

projected improvements to the DoD Acquisition Workforce. The project

evaluation results will be used to ensure that out-year project costs

will not outweigh the derived benefits to the demonstration. A baseline

will be established at the start of the project, and salary

expenditures will be tracked yearly. Implementation costs, including

the step and grade buy-in costs detailed above, will not be included in

the cost evaluations, but will be accounted for separately.

The amount of money available for contribution increases in the

out-years will be determined as part of the annual project evaluation

process, starting with a review of the prior year's data for each

individual participating site by the Personnel Policy Boards for that

site, and then will be reported to the DoD Acquisition Workforce

Demonstration Project Executive Steering Committee. The funds

determination will be based on a balancing of appropriate factors,

including the following: (1) Historical spending for WGI, quality step

increases, and in-level career promotions; (2) labor market conditions

and the need to recruit and retain a skilled workforce to meet the

business needs of the organization; and (3) the fiscal condition of the

organization.

[[Page 14325]]

Given the implications of base pay increases for long-term pay and

benefit costs, the compensation levels will be determined after cost

analysis with documentation of the mission-driven rationale for the

amount. As part of the evaluation of the project by Military Services,

participating Defense Agencies, DoD, and OPM, the base pay costs

(including average salaries) under the demonstration project will be

tracked and compared to the base pay costs under similar demonstration

projects and under a simulation model that replicates General Schedule

spending. These evaluations will balance costs incurred against

benefits gained, so that both fiscal responsibility and project success

are given appropriate weight.

C. Personnel Policy Boards

It is envisioned that each participating DoD Component shall either

establish a Personnel Policy Board for the demonstration project that

will consist of the senior civilian in each Program Management Office

and Directorate within the Component and be chaired by the Executive

Director or modify the charter of an existing group. In either case,

the board is tasked with the following:

(a) Overseeing the civilian pay budget;

(b) Addressing issues associated with two separate pay systems

(CCAS and GS) during the first phase of the demonstration;

(c) Determining the composition of the CCAS pay pool in accordance

with the established guidelines; and statutory constraints;

(d) Reviewing operation of the Component's CCAS pay pools;

(e) Providing guidance to pay pool managers;

(f) Administering funds to CCAS pay pool managers;

(g) Reviewing hiring and promotion salaries;

(h) Monitoring award pool distribution by organization and DAWIA

vs. non-DAWIA; and

(i) Assessing the need for changes to demonstration project

procedures and policies.

Should any participating Component elect not to establish a

Personnel Policy Board, the charter of an existing group within that

Component must be modified to include the duties detailed above.

D. Developmental Costs

Costs associated with the development of the demonstration system

include software automation, training, and project evaluation. These

costs are considered shared costs and will be funded by the Deputy

Undersecretary of Defense for Acquisition Reform (DUSD (AR)) for the

demonstration period. Site-specific costs for follow-on training,

employee salary conversion, and any in-house software automation will

be borne by the individual participating sites. The projected annual

expenses for each area are summarized in Table 10. Project evaluation

costs will continue for at least the first five (5) years and may

continue beyond that point.

[GRAPHIC] [TIFF OMITTED] TN24MR98.091

IX. Required Waivers to Law and Regulations

A. Waivers to Title 5, United States Code

Chapter 5, Section 552a: Records maintained on individuals. This

section is waived only to the extent required to clarify that

volunteers under the Voluntary Emeritus Program are considered

employees of the Federal Government for purposes of this section.

Chapter 31, Section 3111: Acceptance of volunteer service. This

section is waived only to the extent required to allow volunteer

service under provisions of the voluntary emeritus program.

Chapter 33, Section 3308: Competitive service; examinations;

educational requirements prohibited; exceptions (to the extent

necessary to accommodate the Scholastic Achievement Appointment's

requirement for a college degree).

Chapter 33, Section 3317(a): Competitive service; certification

from registers (insofar as ``rule of three'' is eliminated under the

demonstration project).

Chapter 33, Section 3318(a): Insofar as ``rule of three'' is

eliminated under the demonstration project. Veterans' preference

provisions remain unchanged.

Chapter 41, Section 4107(a).

Chapter 43, Sections 4301-4305 except for 4303(e) and (f): Related

to performance appraisal. In turn, 4303(e) and (f) are waived only to

the extent necessary to: (1) Substitute ``broadband'' for ``grade'',

and (2) provide that moving

[[Page 14326]]

to a lower broadband as a result of not receiving the full amount of a

general pay increase because of inadequate contribution is not an

action covered by the provisions of section 4303.

Chapter 45, Sections 4502(a) and 4502(b).

Chapter 51, Sections 5101-5102 and Sections 5104-5107: Related to

classification standards and grading.

Chapter 53, Sections 5301; 5302 (8) and (9); and 5303-5305 and

5331-5336: Related to special pay and pay rates and systems (Sections

5301, 5302 (8) and (9), and 5304 are waived only to the extent

necessary to allow demonstration project employees to be treated as

General Schedule employees and to allow basic rates of pay under the

demonstration project to be treated as scheduled rates of basic pay).

Chapter 53, Section 5362: Grade retention.

Chapter 53, Section 5363: Pay retention. This waiver applies only

to the extent necessary to: (1) allow demonstration project employees

to be treated as General Schedule employees; (2) 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; and (3) replace the term ``grade'' with ``broadband level.''

Chapter 53, Section 5371: Related to 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): Related to hazardous duty premium pay

(only to the extent necessary to allow demonstration project employees

to be treated as General Schedule employees).

Chapter 57, Sections 5753, 5754, and 5755: Related to recruitment,

relocation, and retention payments, and supervisory differentials (only

to the extent necessary to allow employees and positions under the

demonstration project to be treated as employees and positions under

the General Schedule).

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

conditions of environment; employees stationed outside the continental

United States or Alaska. (This waiver applies only to the extent

necessary to provide that COLAs paid to employees under the

demonstration project are paid in accordance with regulations

prescribed by the President (as delegated to OPM)).

Chapter 59, Section 5948: Related to physicians comparability

allowances (only to the extent necessary to treat employees under the

demonstration project as General Schedule employees).

Chapter 71, to the extent its provisions (e.g., 5 U.S.C.

7103(a)(12) and 7116) would prohibit management or the union from

unilaterally terminating negotiations over whether the project will

apply to employees represented by the union.

Chapter 71, Section 7119: To the extent it gives the Federal

Service Impasses Panel jurisdiction to resolve impasses referred to it

by either party or both parties during or after implementation of the

demonstration project.

Chapter 75, Sections 7512 (3): Related to adverse action (but only

to the extent necessary to exclude reductions in broadband level not

accompanied by a reduction in pay and replace ``grade'' with

``broadband level'') and 7512 (4): Related to adverse action (but only

to the extent necessary to exclude conversions from a General Schedule

special rate to demonstration project pay that do not result in a

reduction in the employee's total rate of pay).

B. Waivers to Title 5, Code of Federal Regulations

Part 300, Sections 300.601 through 300.605: Time-in-grade

restrictions.

Part 308, Volunteer service: Waived to allow volunteer service

under the provisions of the voluntary emeritus program.

Part 315, Sections 315.801 and 315.802: Probationary period.

Part 316, Section 316.301: Term appointment (to the extent that

modified term appointments may cover a maximum period of 6 years).

Part 316, Section 316.303: Tenure of term employees (to the extent

that term employees may compete for permanent status through local

merit promotion plans).

Part 316, Section 316.305: Eligibility for within-grade increases.

Part 332, Section 332.402: ``Rule of three'' will not be used in

the demonstration project.

Part 332, Section 332.404: Order of selection is not limited to

highest three eligibles.

Part 351, Sections 351.402 through 351.403: Competitive Area and

Competitive Levels; Section 351.504(a): Credit for Performance; and

Section 351.601: Order of Release from Competitive Level.

Part 351, Section 351.701 (b) and (c): Assignment rights (bump and

retreat): To the extent that the distinction between bump and retreat

is eliminated and the placement of demonstration project employees is

limited to one broadband level below the employee's present level,

except that a preference-eligible employee with a compensable service-

connected disability of 30 percent or more may displace up to the

equivalent of five General Schedule grades below the employee's present

level.

Part 410, Section 410.308(a).

Part 430, Subpart A and Subpart B: Performance management;

performance appraisal.

Part 432, Sections 432.101, 432.102, 432.106 and 432.107: (only to

the extent necessary to (1) substitute ``broadband'' for ``grade'' and

(2) provide that moving to a lower broadband as a result of not

receiving the full amount of a general pay increase because of

inadequate contribution is not an action covered by the provisions of

section 4303).

Part 432, Sections 432.103 through 432.105: Performance-based

reduction-in-grade and removal actions.

Part 451, Sections 451.106(b) and 451.107(b): Awards.

Part 511, Subpart A; Subpart B; Subpart F, Sections 511.601 through

511.612: Classification within the General Schedule; and Subpart G:

Effective Dates of Position Classification Actions or Decisions.

Part 530, Subpart C: Special salary rates.

Part 531, Subpart B, Subpart D, Subpart E: Determining rate of pay;

within-grade increases and quality step increases.

Part 531, Subpart F: Locality Payments (only to the extent

necessary to allow demonstration project employees to be treated as

General Schedule employees and to allow basic rates of pay under the

demonstration project to be treated as scheduled rates of basic pay).

Part 536, Grade and Pay Retention (only to the extent necessary to

eliminate grade retention and to provide that, for the purposes of

applying pay retention provisions: (1) demonstration project employees

are to be treated as General Schedule employees; (2) ``grade'' is

replaced by ``broadband level''; and (3) 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).

Part 550, Sections 550.703: Severance Pay, definition of

``reasonable offer'' (by replacing ``two grade or pay levels'' with

``one broadband level'' and ``grade or pay level'' with ``broadband

level'') and 550.902: Hazard Pay, definition of ``employee'' (only to

the extent necessary to allow demonstration project employees to be

treated as General Schedule employees).

Part 575, Sections 575.102 (a)(1), 575.202 (a)(1), 575.302 (a)(1),

and Subpart D: Recruitment and relocation

[[Page 14327]]

bonuses, and retention allowances, and supervisory differentials (only

to the extent necessary to allow employees and positions under the

demonstration project to be treated as employees and positions under

the General Schedule positions).

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

Differential-Nonforeign Areas. (This waiver applies only to the extent

necessary to allow demonstration project employees to be treated as

employees under the General Schedule for the purposes of these

provisions.)

Part 752, Sections 752.401 (a)(3): Reduction in grade and pay (but

only to the extent necessary to exclude reductions in broadband level

not accompanied by a reduction in pay and to replace `grade'' with

``broadband level'') and 752.401 (a)(4) (but only to the extent

necessary to exclude conversions from a General Schedule special rate

to demonstration project pay that do not result in a reduction in the

employee's total rate of pay).

[FR Doc. 98-7486 Filed 43-23-98; 8:45 am]

BILLING CODE 6325-01-M