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

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A99-79

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 8, 1999
- **Citation:** 64 FR 1426

## Text

SUMMARY: Title VI of the Civil Service Reform Act, title 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.
This demonstration project covers 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: Implementation of this demonstration project will begin by
February 9, 1999, or earlier. Participating organizations will be
phased into the project in accordance with the timetable approved by
DoD and OPM in the project's implementation plan.

FOR FURTHER INFORMATION CONTACT: DoD: Richard M. Childress, Civilian
Acquisition Workforce Personnel Demonstration, 5203 Leesburg Pike,
Suite 1404, Falls Church, VA 22041, 703-681-6658. OPM: Gail W. Redd,
U.S. Office of Personnel Management, 1900 E Street NW, Room 7460,
Washington, DC 20415, 202-606-1521.

SUPPLEMENTARY INFORMATION:

1. Background

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 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. This demonstration
project covers 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 Civilian Acquisition Workforce Personnel
Demonstration Project 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. This demonstration involves streamlined hiring
processes, broadbanding, simplified job classification, a contribution-
based compensation and appraisal system, revised reduction-in-force
procedures, expanded training opportunities, and sabbaticals.

2. Overview

On March 24, 1998, OPM published this proposed demonstration
project in the Federal Register (63 FR 14253). During the 60-day public
comment period ending May 26, 1998, OPM received comments from 182
individuals, including 37 who presented oral comments at one of the
three public hearings. All comments were carefully considered.
Some commentors suggested changes to areas that lie outside the
project's scope or the demonstration project authority of 5 U.S.C.
chapter 47. These comments are not included in the summary below.
A number of commentors highlighted many instances of
miscommunication and misunderstanding with the present system, as well
as the project interventions. Others provided insight and encouragement
to project developers. Still others emphasized the importance of
training for all project participants.
The following summary addresses the comments received, provides
responses, and notes resultant changes to the original project plan in
the first Federal Register notice. Most commentors addressed several
topics, which were counted separately. Thus, the total number of
comments exceeds the number of individuals cited above.

A. General Positive Comments

Thirty-nine commentors were totally supportive of the demonstration
and saw it as beneficial to employees, managers, the acquisition
workforce, and the Federal civil service. One commentor thanked DoD,
OPM, and Congress for making this project possible, saying it would
greatly benefit workers at field-level installations. Several
commentors said it would provide much-needed reform of workforce
management. Others complimented the project's streamlined personnel
management systems and application of good business practices to
Government. Finally, several commentors simply said they looked forward
to the project's implementation and welcomed the opportunity to
contribute to its success.

B. Contribution-based Compensation and Appraisal System (CCAS)

A number of positive comments were received. Three commentors
welcomed pay adjustments based on their contributions. One said that
pay pool panels will serve to ensure even-handed assessments and that
poor performers ``can no longer milk the system.'' Two commentors
viewed CCAS's varied contribution factors as a way to satisfy the
increasing need for a multi-skilled workforce in a downsized
environment. One commentor thought CCAS should be implemented
immediately.
A total of 105 comments were received about CCAS, relating to seven
subtopics, as follows.
(1) CCAS Process
Comments: Thirty-eight commentors thought the CCAS process was too
complicated. Another said the Customer Relations factor seemed to
emphasize customer satisfaction over statutory compliance, yet contract
specialists must achieve both.
Response: At first reading, the CCAS process may seem complicated.
However, feedback from numerous CCAS orientation and training sessions
throughout DoD showed that participants readily grasped the new
system's concepts.

[[Page 1427]]

Project developers have conducted and will continue to give
briefings for management and the workforce across the country.
Additionally, ``train-the-trainer'' courses have been completed so that
the next lower echelon of trainers can spread the word. Evaluation of
this training indicated that an understanding of the CCAS process and
its benefits can easily be achieved.
Each participating manager will be fully trained on the CCAS
process and supporting software well before the end of the first
appraisal cycle. Additionally, training materials, videotapes, and
briefing charts are available to participating organizations, as well
as an Internet-based tutorial.
With respect to the Customer Relations factor, it is important to
note that all six CCAS factors are critical factors. Accordingly, an
employee would not be expected to violate controlling laws or
regulations in an effort to fulfill this factor.
(2) Funds Availability and General Pay Increase
Comments: Eight commentors inquired about funds availability for
contribution rating increases and awards. They also believed the cost
of living increase should be excluded from the pay pool. Nine
commentors believed that CCAS would harm teamwork and lead to excessive
competition among employees (or between managers and employees) for a
finite amount of funds within a pay pool. Several others asked what
effect achieving comparability under the Federal Employees
Comparability Act of 1990 (FEPCA) might have on CCAS.
Response: Regarding funds availability, the project establishes
mandatory funding floors for pay pools, with which participating
organizations must comply.
As a point of clarification, the annual GS pay adjustment
authorized under 5 U.S.C. 5303 is based on the cost of labor, not the
cost of living. This pay increment is linked to changes in a component
of the Employment Cost Index (ECI) that measures the overall rate of
change in employers' wage and salary costs in the private sector. Thus,
this pay increment is appropriately included in the pay pools.
As to CCAS's effect on teamwork, ``Teamwork/Cooperation'' is one of
the six CCAS factors on which participants will be rated. Employees in
matrix-managed organizations, as well as those in functional
organizations, will have the opportunity to work as a team to
accomplish the mission of the organization.
Regarding FEPCA, notwithstanding any other provision of this
demonstration project, if General Schedule employees receive an
increase under 5 U.S.C. 5303 that exceeds the amount otherwise required
by that section on the date of this notice, the excess portion of such
increase shall be paid to demonstration project employees in the same
manner as to General Schedule employees. The excess portion of such
increase shall not be distributed through the pay pool process.
(3) Locality Pay
Comments: Several commentors disagreed with including locality pay
in the pay pools.
Response: The commentors were apparently misinformed; locality pay
is not included in pay pool funding. Demonstration project employees
will continue to receive locality pay as they do now.
(4) CCAS Implementation
Comments: Three commentors suggested that overall contribution
scores be related to the current system with an adjective rating. One
commentor said special rates should continue in effect to attract
quality personnel. Another said that all employees rated ``above the
rails'' (i.e., in the ``A'' region) would be reduced in basic pay,
which in turn would reduce their retirement annuities. Several objected
to the terms ``overcompensated'' and ``undercompensated'' for employees
rated above and below the rails, respectively.
Response: The project itself does not incorporate adjective
ratings, but it does provide an adjective rating that corresponds to
the current system for use when employees leave the demonstration
project.
The project does not use special rates. However, increased
opportunities for pay progression under broadbanding should more than
offset this. Additionally, former special rate employees will now
receive locality pay, for which they previously were ineligible.
Managers will also have greater flexibility to set pay above the
minimum rate of the range upon initial appointment and promotion under
the demonstration's broadbanding system.
A fundamental purpose of CCAS is to compensate employees
appropriately. However, employees rated in the ``A'' region are not
automatically reduced in pay. Rather, the supervisor decides whether
corrective action is needed. If so, as under the current system, the
supervisor informs the employee in writing, and the employee is placed
on an improvement plan that provides a reasonable opportunity to
demonstrate acceptable contribution for the identified factors.
Reduction in pay can occur only if the employee fails to complete the
plan successfully.
Finally, CCAS terminology was changed to ``inappropriately
compensated'' above or below the rails.
(5) Pay Pool Process
Comments: One commentor suggested that the project plan set forth
criteria for establishing pay pools. One commentor thought the
recommended upper limit for the number of employees in a pay pool (300)
should be made mandatory. Four believed panels should include union
representation. Three said that only the immediate supervisor should
determine an employee's overall contribution score (OCS). Several
commentors said pay pool results should be made available to employees.
Response: Pay pools will be established as determined by the
participating DoD Components. The suggested size of pay pools ranges
from 35 to 300 employees. Components have flexibility in this area in
order to be able to tailor the pay pool process to meet their varied
organizational needs.
Activities whose employees are represented by a union are
encouraged to invite that union to participate in the pay pool process.
The project plan and operating procedures have been modified to
incorporate this feature.
Rather than relying on a single individual (the immediate
supervisor), CCAS uses the pay pool panel process to ensure fairness
and consistency in determining each employee's OCS.
Finally, pay pool managers are encouraged to convey the outcomes of
the CCAS assessment process, in the aggregate, to employees within
their pay pool. This may be done, for example, by providing to
individual employees a scattergram depicting the OCS plot of the pay
pool, both before and after salary adjustment, with only the
individual's name shown on the scattergram. The software developed to
support CCAS can provide this information.
(6) Overall Contribution Scores
Comments: Eight commentors believed CCAS would disadvantage current
GS-15 employees at step 7 and above. Such employees would have to
achieve near-perfect scores in all factors in order for their OCSs to
fall between the rails (i.e., in the ``C'' region). These commentors
believed the OCS methodology should be changed to

[[Page 1428]]

permit such employees' high achievement to be documented.
Response: The PAT adopted this comment and changed the scoring. A
new score category of ``very high'' has been established for those at
the top range of broadband level IV in the Business Management and
Technical Management Professional career path. For consistency and as
an outgrowth of this comment, scoring was similarly changed for the
other two career paths.
(7) Appraisal Cycle
Comments: One commentor suggested that pay adjustments take effect
the first pay period of September. Another thought the cutoff date for
appraisals should be changed to August to allow more time for pay pool
panel meetings.
Response: These comments were not adopted. Processing the CCAS and
locality pay increases simultaneously in January will streamline
administrative processes. The operating procedures set forth the steps
necessary for pay pool panels to perform their tasks timely.

C. Management Issues

A number of positive comments were received. Seven commentors
supported the demonstration because it gives management necessary
flexibility, reduces administrative costs, enhances employees' career
advancement, and improves personnel administration. Many commentors
advocated the demonstration because it offers increased opportunity for
them personally. Others viewed the project's compensation and hiring
features as a way to attract and retain highly qualified personnel.
Additional comments on the management aspect of the demonstration
may be divided into eight subtopics, as follows.
(1) Fairness
Comments: Thirty-eight commentors thought favoritism and the ``good
old boy'' system would drive the demonstration and lead to inequitable
treatment of employees. Several employees said managers would now
determine their pay increases and, ultimately, their retirement
annuities. Others said that monetary awards would be given to employees
who do not challenge authority and are part of a favored clique.
Response: The demonstration establishes a structured, group review
process to assess employees' contributions to the mission. This process
is designed to reduce favoritism and promote fairness.
Specifically, the use of pay pool panels ensures that individual
supervisors' ratings are reviewed by their peers (i.e., by other raters
in the same pay pool) and by the supervisor of all raters in that pool.
In addition, rated employees are rank-ordered by the entire pay pool
panel. The intent here is not so much to require ranking per se as to
ensure that inflation or deflation by any rater will be identified and
corrected via the normal operation of the panel process. Finally, the
pay pool manager (who is generally at a higher organizational level
than all the above-mentioned supervisors) oversees and approves the
results of the group review process.
A focused training session has been developed to teach supervisors
and managers how to administer CCAS correctly. Additionally, a third-
party evaluator continually collects data on project operation and
monitors compensation trends, among other areas.
In summary, the pay pool panel process, managerial training, and
continuing evaluation all guard against favoritism and promote fairness
for employees under the demonstration.
(2) Managerial Preparedness
Comments: Three commentors thought current acquisition managers
need preparation for the challenge of administering CCAS.
Response: A very robust training program will be provided for all
supervisors and managers of demonstration participants so that they may
gain confidence and competence in performing their duties.
(3) Waivers of Federal Civil Service Laws and Regulations
Comments: A number of commentors thought the Federal Register
notice's list of waivers would diminish or eliminate employee
protections.
Response: Waivers are an integral part of any Federal personnel
demonstration project. Their purpose is to permit innovation, not to
diminish employees' rights. A demonstration project is defined as--

a project conducted by the Office of Personnel Management, or under
its supervision, to determine whether a specified change in
personnel management policies or procedures would result in improved
Federal personnel management (5 U.S.C. 4701(a)(4)).

Under 5 U.S.C. chapter 47, OPM is permitted to waive civil service
laws and regulations to enable an agency, such as DoD, to conduct
demonstration projects by experimenting with new and innovative
personnel systems. Examples of laws and regulations that may be waived
for demonstration purposes include methods of: appointment to
positions; classification and compensation; assignment, reassignment,
or promotion; and providing incentives. However, no waivers of law are
permitted in the areas of employee leave, employee benefits, equal
employment opportunity, political activity, merit system principles, or
other prohibited personnel practices.
To sum up, the Civilian Acquisition Workforce Personnel
Demonstration is conducted jointly by DoD and OPM. Its innovations
require waivers of various civil service laws and regulations.
(4) Work Assignments
Comments: Thirty-two commentors raised the possibility of
favoritism in work assignments. They said managers could assign high-
visibility tasks to certain employees and lower-level work to others,
with predictable results when employees were compensated for their
contributions. However, another commentor said this was possible under
the current compensation system; it would remain so regardless of what
system was implemented.
Response: Management will continue to determine work assignments.
However, under the demonstration, work assignments will increasingly
focus on supporting mission requirements, enhancing employees'
capabilities, and providing employees with opportunities for career
broadening and training.
Employees are responsible to ensure that management understands
their capabilities and their desire to increase their contributions to
the organization's mission. Employees should respond to work assignment
opportunities in a proactive, rather than reactive, manner. Under the
project, managers and employees can arrive at mutually agreeable
opportunities to increase contributions to the organization's mission.
(5) Exercise of Managerial Authority
Comments: Seven commentors said managers could abuse their
authority regarding employees' pay raises. For instance, managers who
are engineers might view only other engineers as high contributors.
Response: Several project features help ensure visibility for all
employees and fair assessment of both technical and functional
contributions. In this regard, each of the six CCAS factors has
multiple levels of increasing contribution corresponding to the
broadband levels. Each factor contains descriptors for each respective
level within the relevant career path. The

[[Page 1429]]

descriptors state what is important to the mission of the organization
and describe employees' contributions at different broadband levels.
Thus, work performed by individuals in a particular career path is
evaluated against the same descriptors, and contribution is determined
by a group consensus through the pay pool panel process.
(6) Dual Personnel Systems
Comments: Five commentors projected additional workload for
supervisors and civilian personnel/human resources staffs as a result
of maintaining two personnel systems.
Response: The FY 96 National Defense Authorization Act encouraged
DoD to conduct a demonstration project for the acquisition workforce.
In an effort to minimize the need for two personnel systems within this
workforce, project developers made every effort to encourage eligible
organizations and unions to participate.
There is precedent for operating dual personnel systems. Seven
science and technology laboratory demonstration projects are already in
operation within the Military Services. Most of these projects do not
include all employees within a demonstration organization.
(7) Leadership/Supervision Factor
Comments: Seven commentors thought this factor did not emphasize
safety and health, equal employment opportunity (EEO), etc. Some asked
how employees' movement through the broadbands related to existing
affirmative action (AA) goals.
Response: Nothing in this project waives safety, health, or equal
employment opportunity principles. Managers will apply existing
principles appropriately in determining employees' overall contribution
scores for this factor. A statement which specifically addresses these
concerns has been added to all career paths for the Leadership/
Supervision factor.
The demonstration is not intended to alter existing equal
employment opportunity or affirmative action programs. Part of the
project's intended cultural change, however, is to think in terms of
broadband levels in lieu of GS grades. As a result, participating DoD
components and activities may adjust their affirmative action plans and
goals to accommodate broadband levels.
Finally, through the project's evaluation process, trends will be
identified. Any adverse trends may result in modifications to the
ongoing demonstration project in those areas.
(8) Participation in the Project
Comments: Twelve commentors questioned their own participation in
the project. Some engineers wanted to be included, while several
interns did not.
Response: The respective DoD Components decided whether or not to
participate. Each Component determined which organizations--and which
positions within those organizations--would participate.

D. Broadbanding

A number of positive comments were received. Many commentors said
broadbanding, with its seamless progression through the rate range,
would be very beneficial to employees.
Additional comments received on this aspect of the personnel
demonstration project were related to three subtopics, as follows.
(1) Broadband Structure
Comments: A number of commentors asked why particular grades were
grouped into a given broadband and recommended changes. Two commentors
wanted one broadband for all 15 GS grades, while others said they did
not want to be placed in the same broadband with lower graded
employees. One commentor suggested that broadbands be adjustable
locally to suit a particular workforce. Additionally, several
commentors said employees at the top of a broadband would lack
potential for basic pay progression. Finally, two commentors raised an
issue about promotions under broadbanding.
Response: When grouping GS grades into broadbands, project
developers sought input from various sources, including other
demonstrations, DoD, and OPM. Developers then identified natural
breakpoints within a grouping of similar duties and responsibilities
and used the breakpoints to determine broadband structure. (For
instance, in most participating organizations, the journeyman level
lies at GS-12 and 13 for the Business Management and Technical
Management Professional career path. Hence, these two grades were
combined into one broadband. Similarly, since GS-14s and 15s are
generally the management core of an organization, it was logical to
group these two grades into one broadband.) A standard broadband
structure throughout the demonstration will ensure project integrity
and facilitate project evaluation.
Some employees in the project will be paid at the maximum rate for
a broadband level, just as some are now at step 10 of a GS grade. Most
such employees will be able to compete for promotion to a higher
broadband and be eligible for contribution awards. A significant
advantage of the project for all employees is that it sets aggregate
funding thresholds for these awards, whereas under the current system,
no similar funds are guaranteed.
Under broadbanding, employees have greater advancement
opportunities across a broad range of salary rates. Competitive
promotion will continue to be required between broadbands, but most
salary advancement will take the form of contribution rating increases.
(2) Occupational Series
Comments: Some commentors thought it was important to maintain the
integrity of career fields, given that different occupational series
are being combined into a given career path. Some commentors said the
project included too many series, but others pointed out that it did
not include all series in the acquisition and support workforce.
Response: Occupational series will remain in effect, and existing
requirements for education and experience will be maintained. Degree or
other specific requirements (including DAWIA certification) that now
exist for certain occupations will be unchanged. Table 2 was amended to
include all occupational series involved in the acquisition process, to
include the support workforce.
(3) Contribution-Based Actions
Comments: Several commentors sought to ensure that contribution-
based actions would be well-founded and reviewable by the Merit Systems
Promotion Board.
Response: Contribution-based actions must meet the same standard of
evidence as performance-based actions under the current system and are
reviewable by the Board.

E. Academic Degree and Certificate Training

Eleven comments were received about this initiative, nine of them
positive.
Comments: Commentors appreciated the new ability for Administrative
Support and Technical Management Support employees to pursue
educational opportunities. They also supported extending the time for
degree and certificate training throughout the project's duration. This
initiative will help attract the next-generation worker, they said.
Two commentors criticized DoD's paying for employees' education and
then not capitalizing on its investment.

[[Page 1430]]

Response: Management and employees must work together to structure
work assignments that take advantage of employees' skills and
education.

F. Classification

Twenty-two comments regarding two subtopics were received about
this initiative.
(1) Classification Process
Comments: Under the demonstration, position requirements documents
(PRDs) combine position information, staffing requirements, and
contribution expectations into a single document that replaces current
agency-developed position description forms. Several commentors sought
accurate PRDs that can capture unique position characteristics. While
one commentor thought writing PRDs was burdensome, two others differed,
saying they saw the value in a simplified process that reduces
administrative costs and processing times. Two commentors asked how PRD
factors relate to broadband levels, and two others asked who would
approve PRDs. Several commentors wanted assurance that line managers
will be prepared to assume classification authority.
Response: COREDOC, an interactive software program designed for
development of PRDs, will be available to assist managers, along with
training on classification. Unique position characteristics may be
annotated in the PRDs' remarks section. Classification authority rests
with the local commander and may be re-delegated no lower than one
management level above the first-line supervisor of the employee or
position under review. Personnel specialists will provide on-going
consultation and guidance to managers and supervisors throughout the
classification process.
(2) Classification Appeals
Comments: One commentor suggested setting time frames to process
classification appeals. Several said the accuracy of PRDs should be
appealable.
Response: The project does not change existing time frames for
classification appeals. As under the current system, employees may not
appeal the accuracy of a PRD, but instead may raise the issue under an
applicable grievance procedure.

G. Reduction-in-Force (RIF)

The 38 comments about this initiative centered on four items.
(1) Definition of Competitive Area
Comments: Eighteen commentors wanted the same competitive area to
cover project and non-project employees.
Response: Project developers seriously reconsidered the matter of
competitive areas, and two mock RIFs were subsequently run. This
exercise compared a scenario with an entire workforce in the same
competitive area against a second scenario with separate competitive
areas for project and non-project employees. The overall difference in
outcome between the two mock RIFs was negligible. However, the
demonstration and the standard title 5 personnel systems are very
different with respect to their classification, compensation, and
performance management/contribution programs. The same-area scenario
proved inadequate to accommodate those differences when employees were
moved via RIF between the two systems. Additionally, project developers
sought input from other demonstration projects, DoD, and OPM. All of
these supported the separate-areas concept. Accordingly, the project
plan was amended to specify that employees under this demonstration
shall be placed in a different competitive area from those who are not
covered.
(2) Retention Rights
Comments: Other commentors said the project should not diminish
retention of employees.
Response: The project's procedures are not intended to diminish
retention. Under the current system, employees may only retreat to
positions they have previously held. The project eliminates this
restriction. If qualified for the position in question, a project
employee may displace any other project employee with a lower retention
standing.
(3) DoD Downsizing; Base Re-alignment and Closure (BRAC)
Comments: Five commentors raised the issue of conducting a
demonstration in times of downsizing and BRAC.
Response: The project has no influence over downsizing or BRAC
determinations. However, it does represent a valuable opportunity to
enhance the quality, professionalism, and management of the DoD
acquisition workforce through an improved human resources management
system. The FY 96 and 98 National Defense Authorization Acts encouraged
DoD to conduct this demonstration and established a 1999 time frame to
commence implementation.
(4) Years of Retention Service Credit
Comments: Several commentors noted that the years of retention
service credit in Table 7 were not consistent with OCS scores in the
``inappropriately compensated-below the rails'' (B) region.
Response: Table 7 was constructed in relation to the OCS normal
range. Generally, employees whose OCSs fall within or above the top
third of the OCS normal range for their career path and broadband level
receive 20 years of retention service credit; those in the middle
third, 16 years; and those in the lower third, 12 years. However, this
breakout varies somewhat for broadband level I of each career path in
order to accommodate the fact that the bottom of the OCS normal range
for level I is zero.

H. Veterans' Issues

Ten commentors said that veterans' entitlements were being eroded.
Comments: Most of these commentors thought veterans were not
treated fairly under this project. Specifically, they said, disabled
veterans are at a disadvantage in scientific, engineering, and
professional positions; veterans serving during peacetime are not
treated fairly; and reduction-in-force rights for 5-point veterans are
not specifically addressed when they are in the same broadband level
with non-veterans. One commentor wanted to eliminate veterans'
preference entirely during the hiring process, and another recommended
a tie-breaking method or statement regarding current pass-over
procedures.
Response: All current veterans' preference entitlements have been
and will be protected throughout the duration of this demonstration
project; none have been eroded. DoD operating procedures give specific
instructions about honoring veterans' preference during hiring and
reduction in force.

I. Sabbaticals

Seven comments were received on this initiative; six were positive.
Comments: One commentor saw no real change from the current system,
but the remainder supported this initiative's availability to all
project participants, saying it especially benefits those who have
never been in a manufacturing or industrial environment. One commentor
asked whether academia, industry, or the parent organization was
responsible for funding sabbaticals.
Response: Under the current system, sabbaticals are available only
to members of the Senior Executive Service. The demonstration expands
this feature to all project employees.

[[Page 1431]]

The parent organization is responsible for funding this initiative.

J. Voluntary Emeritus Program

Nine comments were received regarding this initiative, addressing
three subtopics.
(1) Positive Response
Comments: The commentor saw this program as an opportunity for the
Government to benefit from highly qualified personnel who would provide
their experience, judgment, and expertise on a voluntary basis.
(2) Effect on Permanent Employment
Comments: Four commentors said this initiative would reduce
permanent employment. One saw it as a way to induce senior employees to
retire and then return to work without appropriate compensation.
Response: The intent of this initiative is to afford retirees
(primarily professionals in the Business Management and Technical
Management Professional career path) an opportunity to return as a
volunteer mentor. The project plan very clearly states that, ``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.''
(3) Unfair Labor Practice
Comments: Four commentors said this program could be used
inappropriately to obtain free labor and constitutes an unfair labor
practice.
Response: A personnel policy and legal review of the project plan
during the coordination process determined that this initiative is
lawful and appropriately administered.

K. Factors and Weights

Three comments were received in this area.
Comments: Some commentors said that the factors, discriminators,
and descriptors used to evaluate employees' contributions were too
general and not meaningful. Another thought technical competency should
be addressed in the Business Management and Technical Management
Professional career path.
Response: The six factors are inherent in every job and form the
framework for evaluating employees' contributions. Technical
competency, while not a separate factor, is encompassed in the Problem
Solving factor. The descriptors for the four broadband levels identify
increases in scope, complexity, independence, and creativity. Employees
must have a sufficient degree of technical competency at all broadband
levels in order to solve the problems presented to them. Thus, the
level at which they solve problems permits an assessment of their
technical competency.

Dated: December 28, 1998.
Janice R. Lachance,
Director, Office of Personnel Management.

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
authority 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 This demonstration project
will provide managers, at the lowest practical level, the authority,
control, and flexibility 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 effectively manage multi-million-dollar programs. Additionally,
Integrated Product Teams (IPTs) require multi-skilled personnel who can
function in a dynamic team environment. 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

[[Page 1432]]

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 manager's ability and authority to
manage the acquisition workforce effectively.

C. Changes Required/Expected Benefits

This project will demonstrate that a human resources 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.

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, and the Office of the Under Secretary of Defense
(Acquisition and Technology). Participating organizations are shown in
Table 1.

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Note:
AFMC/SMC/DET11/Peterson AFB: DET 11 was realigned from HQ
AFMC, June 98
AFMC/SMC/Washington DC: Based on a realignment, deleted
SMC/AX and changed to SMC/XR
AFMC/SMC/Schriever AFB: Realigned from HQ AFMC, Jun 98
AFMC/SMC/Los Angeles AFB: TE (newly established
organization); 61SFS realigned/established Aug 98; change 66 ABG to 61
ABG (was a typo)

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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
within 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 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 resources management design
goals and priorities for the entire civilian workforce were considered.

[[Page 1438]]

While the intent of this project is to provide DoD activities with
increased control and accountability for their covered workforce, 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 may be included, as determined by their organizations or
components. 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.
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 organizations and series 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, 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 organization and series 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 the OSD Acquisition Workforce Personnel Demonstration
Project Office.

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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 will be
required.
Current demographics and union representation for the positions
covered by this demonstration project are shown in Table 3.

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Table 3--DoD Acquisition Workforce Demographics and Union
Representation
[GRAPHIC] [TIFF OMITTED] TN08JA99.036

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Of the 14,766 personnel assigned to this project, 5,161 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. 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 resources 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. 4703. The remainder is subject to policies
established by DoD; waivers were approved at that level.

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 quick response to economic and
population changes. Line managers find

[[Page 1448]]

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 resources
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
more rapidly to 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
establishes a streamlined examining process. This process may be used
to fill positions covered by this demonstration project, with the
following exceptions: positions in the Senior Executive Service or the
Executive Assignment System; Senior Level (ST/SL) positions;
Administrative Law Judge positions; and positions subject to any
examining process covered by court order.
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 positions(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 to 79);
Highly Qualified (score of 80 to 89); 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
then be certified; should this process not yield a sufficient number,
groups will be certified sequentially until a selection is made or the
qualified pool is exhausted. 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 demonstration project
establishes 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 adapt the workforce rapidly to these
changes. This demonstration project provides a method to expand and
contract the workforce as needed. Under this demonstration project
there are three appointment options: permanent, temporary limited, and
modified term appointments. The permanent option is the existing career
and career-conditional appointments. The temporary limited option is
the existing temporary-authority-not-to-exceed-one-year appointment.
The modified term option is 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.

[[Page 1449]]

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 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 from the appropriate register or if 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 through 315.610 inclusive, or under Sec. 315.703;
(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));
(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; or
(h) A person eligible under OPM interchange agreements.
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 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 Program 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 Program, 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 Program 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/Human Resources 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;

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(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 purposes as retirement, severance
pay, and leave as a result of being a member of the Voluntary Emeritus
Program;
(h) a provision allowing either party to void the agreement with
ten days' written notice; and
(i) the level of security access required.
4. Extended Probationary Period
For employees in the Business Management and Technical Management
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
Business Management and Technical Management 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 applies 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 a 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 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. Career paths are designated by
NH, NJ, or NK; see chart below. Competitive promotions will be less
frequent, and movement through the broadband levels will be a more
seamless process than under current procedures. Like the 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:

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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 groups. The
acquisition personnel demonstration project currently covers numerous
series in the 22 occupational groups, and these occupational series
will be maintained throughout 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 position under review, except in the case of those
employees reporting directly to the commander or equivalent. First-line
supervisors will provide classification recommendations. Personnel
specialists will provide on-going consultation and guidance to

[[Page 1452]]

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 single 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 may 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. Positions will be evaluated as needed 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 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 5
CFR 511.605 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/human resources office 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 mission and 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
``inappropriately compensated--below the rails (B)'' and smaller than
average increases are permitted for employees who are deemed to be
``inappropriately compensated--above the rails (A)'' 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
organization. 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

[[Page 1453]]

work meets projects/programs 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.

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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.

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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.

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FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision to include that leaders/supervisors will
recruit, develop, motivate, and retain quality team members in
accordance with EEO/AA and merit principles. Takes timely/appropriate
personnel actions, communicates mission and organizational goals; by
example, creates a positive, safe, and challenging work environment;
distributes work and empowers team members.
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.

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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.

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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.

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[[Page 1459]]

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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 projects/programs 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.

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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.

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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.

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[[Page 1463]]

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FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision to include that leaders/supervisors will
recruit, develop, motivate, and retain quality team members in
accordance with EEO/AA and merit principles. Takes timely/appropriate
personnel actions, communicates mission and organizational goals; by
example, creates a positive, safe, and challenging work environment;
distributes work and empowers team members.
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.

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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.

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[[Page 1466]]

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.

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[[Page 1467]]

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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 projects/programs 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.

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[[Page 1468]]

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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.

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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.

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FACTOR: 4.--LEADERSHIP/SUPERVISION

FACTOR DESCRIPTION
This factor describes/captures individual and organizational
leadership and/or supervision to include that leaders/supervisors will
recruit, develop, motivate, and retain quality team members in
accordance with EEO/AA and merit principles. Takes timely/appropriate
personnel actions, communicates mission and organizational goals; by
example, creates a positive, safe, and challenging work environment;
distributes work and empowers team members.
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.

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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.

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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.

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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, with a notional ``very high'' score of 115
for those employees who are capped at the top of their broadband level.
The vertical axis spans from zero dollars to the dollar equivalent of
GS-15, step 10. This encompasses the full salary range (excluding
locality pay) 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 ``inappropriately
compensated--below the rail (B),'' and those falling above the NPR are
considered ``inappropriately compensated--above the rails (A).'' The
goal of CCAS is to make pay consistent with employees' contributions to
the mission of the organization.

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Figure 1. Normal Pay Range
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The NPR was established using the following parameters:
1. The lowest possible score is an OCS of 0, which equates to the
lowest base salary paid under this demonstration, GS-1, step 1.
2. The OCS of 100 equates to the highest base salary paid under
this demonstration, GS-15, step 10. A ``very high'' score of 115 may be
awarded for employees in the Business Management and Technical
Management Professional career path. When a level IV individual in this
career path is performing above the high level (79-100) in a specific

[[Page 1474]]

factor, 115 points may be awarded. There is not a point range in the
``very high'' category; 115 points are awarded or the individual is not
rated ``very high''. The same is true for the other two career paths:
Technical Support with a ``very high'' score of 95, Administrative
Support with a ``very high'' score of 70.
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 = (GS-1 Step 1) * (1.0800)* (1.020043) OCS
Salary lower rail = (GS-1 Step 1) * (0.9200)* (1.020043) OCS

The integrated pay schedule and the NPR are the same for all the
career paths. What varies 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 inappropriately 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.

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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 and weights will be established, if
appropriate. 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 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.

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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 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

[[Page 1477]]

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).

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Figure 2. CCAS Compensation Categories

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:
inappropriately compensated--above the rails (A), appropriately
compensated (C), or inappropriately compensated--below the rails (B).
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 Part
536. 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.

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TABLE 6.--COMPENSATION ELIGIBILITY CHART
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\1\ Basic pay plus locality pay may not exceed Executive Level
IV basic pay.
\2\ May not exceed upper rail of NPR for employee's OCS or
maximum salary for current broadband level.
\3\ Over 20% requires local commander's approval.
\4\ May not exceed 6% above the lower rail or the maximum salary
for current broadband level.
\5\ Pay pool manager approves up to $10,000. Amounts exceeding
$10,000 require local commander's approval.

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In general, those employees who fall in the inappropriately
compensated--B (below the rails) category of the NPR should expect to
receive greater percentage salary increases than those who fall in the
inappropriately compensated--A (above the rails) 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. Notwithstanding any other provision of this demonstration
project, if General Schedule employees receive an increase under 5
U.S.C. 5303 that exceeds the amount otherwise required by that section
on the date of this notice, the excess portion of such increase shall
be paid to demonstration project employees in the same manner as to
General Schedule employees. The excess portion of such increase shall
not be distributed through the pay pool process.
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 by

[[Page 1479]]

February 9, 1999, or as specified in the organization's implementation
plan approved by DoD and OPM. It is acknowledged that implementation
will be staggered and organizations will join as they successfully
finalize negotiated agreements. Employees will receive base pay
adjustments for accrued within-grade increases and/or career ladder
promotions at the time they are reassigned into the demonstration
project. All employees under the demonstration project will receive the
January 1999 general pay increase.
8. CCAS Grievance Procedures
Bargaining unit employees who are covered under a collective
bargaining agreement may grieve CCAS pay determinations under the
grievance-arbitration provisions of the agreement. Other employees not
included in a bargaining unit may utilize the appropriate
administrative grievance procedures to raise a grievance against CCAS
pay (5 CFR Part 771), with supplemental instructions as described
below.
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 Years of Retention Service
Credit During Reduction in Force
Table 7 illustrates the years of retention service credit
associated with appraisal results:

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TABLE 7.--RETENTION SERVICE CREDIT ASSOCIATED WITH APPRAISAL
RESULTS

BUSINESS MANAGEMENT AND TECHNICAL MANAGEMENT PROFESSIONAL
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E. Special Situations Related to Pay

1. Change in Assignment
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, broadband level change, or change to KSAs
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. When an employee receiving
a retained rate is promoted to a higher broadband level, at a minimum,
the employee's salary upon promotion will be set in the higher
broadband level (1) at six percent higher than the maximum rate of the
employee's existing broadband level; or (2) at the employee's existing
retained rate, whichever is greater.
(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) Volun

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-79. Public record. Not legal advice.