Notice2026-00277

Science and Technology Reinvention Laboratory Personnel Demonstration Project Program

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
January 9, 2026

Issuing agencies

Defense Department

Abstract

STRLs will implement Senior Business Technical Manager (SBTM) positions, which are defined as senior business and technical positions comparable to positions classified above the General Schedule (GS)-15 level. SBTMs are senior business and operations leaders within the STRL, serving as primary advisors to the STRL's Commanding Officers and/or members of the Senior Executive Service (SES). SBTMs oversee and operationalize the STRL's business operations, administration, and technology functions. SBTM positions may only be established at authorized STRLs with personnel demonstration projects.

Full Text

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<title>Federal Register, Volume 91 Issue 6 (Friday, January 9, 2026)</title>
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[Federal Register Volume 91, Number 6 (Friday, January 9, 2026)]
[Notices]
[Pages 985-990]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00277]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DOD-2025-OS-0903]


Science and Technology Reinvention Laboratory Personnel 
Demonstration Project Program

AGENCY: Under Secretary of Defense for Research and Engineering 
(USD(R&E)), Department of Defense (DoD).

ACTION: This notice provides new authorities to all Science and 
Technology Reinvention Laboratory (STRL) Personnel Demonstration (Demo) 
Projects.

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SUMMARY: STRLs will implement Senior Business Technical Manager (SBTM) 
positions, which are defined as senior business and technical positions 
comparable to positions classified above the General Schedule (GS)-15 
level. SBTMs are senior business and operations leaders within the 
STRL, serving as primary advisors to the STRL's Commanding Officers 
and/or members of the Senior Executive Service (SES). SBTMs oversee and 
operationalize the STRL's business operations, administration, and 
technology functions. SBTM positions may only be established at 
authorized STRLs with personnel demonstration projects.

DATES: This proposal may not be implemented until a 30-day comment 
period is provided, comments addressed, and a final Federal Register 
notice published. To be considered, written comments must be submitted 
on or before February 9, 2026.

ADDRESSES: You may submit comments, identified by docket number and 
title, by any of the following methods:
    Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the 
instructions for submitting comments.
    Mail: Department of Defense, Office of the Director of 
Administration and Management, Privacy, Civil Liberties, and 
Transparency Directorate, Regulatory Division, 4800 Mark Center Drive, 
Mailbox #24, Suite 05F16, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency 
name, docket number and title for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
internet at <a href="http://www.regulations.gov">http://www.regulations.gov</a> as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: 
    Department of Defense:
    <bullet> Office of the Under Secretary of Defense for Research and 
Engineering, Science and Technology Foundations: Dr. Jagadeesh 
Pamulapati, 571-372-6372, <a href="/cdn-cgi/l/email-protection#2369424442474646504b0d73424e564f425342574a0d404a55634e424a4f0d4e4a4f"><span class="__cf_email__" data-cfemail="155f747274717070667d3b4574786079746574617c3b767c635578747c793b787c79">[email&#160;protected]</span></a>.
    Defense Health Agency:
    <bullet> Defense Health Agency Research and Development: Ms. Lyn 
Krout, 301-619-7276, <a href="/cdn-cgi/l/email-protection#2c404542484d024602475e435958024f455a6c44494d40584402414540"><span class="__cf_email__" data-cfemail="dab6b3b4bebbf4b0f4b1a8b5afaef4b9b3ac9ab2bfbbb6aeb2f4b7b3b6">[email&#160;protected]</span></a>.
    Department of the Air Force:
    <bullet> Air Force Research Laboratory: Ms. Rosalyn Jones-Byrd, 
937-656-9747, <a href="/cdn-cgi/l/email-protection#24764b5745485d4a0a6e4b4a415709665d56406451570a45420a494d48"><span class="__cf_email__" data-cfemail="a3f1ccd0c2cfdacd8de9cccdc6d08ee1dad1c7e3d6d08dc2c58dcecacf">[email&#160;protected]</span></a>.
    <bullet> Joint Warfare Analysis Center: Ms. Amy Balmaz, 540-653-
8598, <a href="/cdn-cgi/l/email-protection#e6a78b9fc8b2c8a4878a8b879cc8858f90a68b878f8ac88b8f8a"><span class="__cf_email__" data-cfemail="adecc0d483f983efccc1c0ccd783cec4dbedc0ccc4c183c0c4c1">[email&#160;protected]</span></a>.
    Department of the Army:
    <bullet> Transformation and Training Command: Ms. Marlowe Richmond, 
571-588-1219, <a href="/cdn-cgi/l/email-protection#0b466a7967647c6e25596268636664656f2568627d4b6a79667225666267"><span class="__cf_email__" data-cfemail="1e537f6c7271697b304c777d767371707a307d77685e7f6c736730737772">[email&#160;protected]</span></a>.
    <bullet> Army Research Institute for the Behavioral and Social 
Sciences: Dr. Scott Shadrick, 254-288-3800, 
<a href="/cdn-cgi/l/email-protection#efbc8c809b9b868ac1adc1bc878e8b9d868c84c18c8699af8e9d8296c1828683"><span class="__cf_email__" data-cfemail="0655656972726f63284428556e6762746f656d28656f704667746b7f286b6f6a">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Armaments Center: 
Ms. Pota Kripotos, 973-724-9165, <a href="/cdn-cgi/l/email-protection#70201f04115e3b0219001f041f035e1319063011021d095e1d191c"><span class="__cf_email__" data-cfemail="5a0a352e3b741128332a352e35297439332c1a3b28372374373336">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Army Research 
Laboratory: Mr. Christopher Tahaney, 410-845-7834, 
<a href="/cdn-cgi/l/email-protection#d695bea4bfa5a2b9a6beb3a4f885f882b7beb7b8b3aff8b5bfa096b7a4bbaff8bbbfba"><span class="__cf_email__" data-cfemail="86c5eef4eff5f2e9f6eee3f4a8d5a8d2e7eee7e8e3ffa8e5eff0c6e7f4ebffa8ebefea">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Aviation and 
Missile Center: Mr. Justin Page, <a href="/cdn-cgi/l/email-protection#87edf2f4f3eee9a9e3a9f7e6e0e2b3a9e4eef1c7e6f5eafea9eaeeeb"><span class="__cf_email__" data-cfemail="610b141215080f4f054f11000604554f0208172100130c184f0c080d">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Chemical 
Biological Center: Ms. Patricia Knuckey, 410-417-2343, 
<a href="/cdn-cgi/l/email-protection#c494a5b0b6ada7ada5ea88ea8faab1a7afa1bdeaa7adb284a5b6a9bdeaa9ada8"><span class="__cf_email__" data-cfemail="92c2f3e6e0fbf1fbf3bcdebcd9fce7f1f9f7ebbcf1fbe4d2f3e0ffebbcfffbfe">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command--Command, Control, 
Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center: Mr. Gregory Peck, <a href="/cdn-cgi/l/email-protection#8aedf8efede5f8f3a4eba4faefe9e1bbbca4e9e3fccaebf8e7f3a4e7e3e6"><span class="__cf_email__" data-cfemail="385f4a5d5f574a41165916485d5b53090e165b514e78594a554116555154">[email&#160;protected]</span></a>.

[[Page 986]]

    <bullet> Combat Capabilities Development Command Ground Vehicle 
Systems Center: Ms. Erin Stein, <a href="/cdn-cgi/l/email-protection#f0b582999ede9dde838495999ede939986b091829d89de9d999c"><span class="__cf_email__" data-cfemail="5613243f38783b782522333f3878353f201637243b2f783b3f3a">[email&#160;protected]</span></a>.
    <bullet> Combat Capabilities Development Command Soldier Center: 
Ms. Sarah Palmer, 508-206-3421, <a href="/cdn-cgi/l/email-protection#1b487a697a733559354b7a77767e693578726d5b7a69766235767277"><span class="__cf_email__" data-cfemail="b8ebd9cad9d096fa96e8d9d4d5ddca96dbd1cef8d9cad5c196d5d1d4">[email&#160;protected]</span></a>.
    <bullet> Communications--Electronics Command Software Engineering 
Center: Ms. Teresa Manganaro, 443-861-8149, 
<a href="/cdn-cgi/l/email-protection#b1e5d4c3d4c2d09ff09ffcd0dfd6d0dfd0c3de9fd2d8c7f1d0c3dcc89fdcd8dd"><span class="__cf_email__" data-cfemail="b6e2d3c4d3c5d798f798fbd7d8d1d7d8d7c4d998d5dfc0f6d7c4dbcf98dbdfda">[email&#160;protected]</span></a>.
    <bullet> Engineer Research and Development Center: Dr. Lucy Priddy, 
601-634-2282, <a href="/cdn-cgi/l/email-protection#fab68f9983d4aad4aa88939e9e83ba8f899b999fd49b889783d4979396"><span class="__cf_email__" data-cfemail="0b477e6872255b255b79626f6f724b7e786a686e256a79667225666267">[email&#160;protected]</span></a>.
    <bullet> Medical Research and Development Command: Ms. Linda Krout, 
301-619-7276, <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="5f1336313b3e711571142d302a2b713c36291f373a3e332b3771323633">[email&#160;protected]</a>.
    <bullet> Technical Center, Space and Missile Defense Command: Dr. 
Chad Marshall, 256-955-5697, <a href="/cdn-cgi/l/email-protection#ecaf848d88c2a6c2a18d9e9f848d8080c28f859aac8d9e8195c2818580"><span class="__cf_email__" data-cfemail="47042f2623690d690a2635342f262b2b69242e310726352a3e692a2e2b">[email&#160;protected]</span></a>.
    Department of the Navy:
    <bullet> Marine Corp Tactical Systems Support Activity: Ms. Lissa 
Henriksen, 760-587-6893, <a href="/cdn-cgi/l/email-protection#2c60455f5f4d02604d40434248496c595f414f02414540"><span class="__cf_email__" data-cfemail="8cc0e5ffffeda2c0ede0e3e2e8e9ccf9ffe1efa2e1e5e0">[email&#160;protected]</span></a>.
    <bullet> Naval Air Warfare Center, Weapons Division and Aircraft 
Division: Mr. Dustin Kirby, 760-608-9248, 
<a href="/cdn-cgi/l/email-protection#8fcbfafcfbe6e1a1e4a1e4e6fdedf6a1ece6f9cffafca1e1eef9f6a1e2e6e3"><span class="__cf_email__" data-cfemail="47033234332e29692c692c2e35253e69242e31073234692926313e692a2e2b">[email&#160;protected]</span></a>.
    <bullet> Naval Facilities Engineering Command Engineering and 
Expeditionary Warfare Center: Ms. Kelly Mitchell, 564-226-0476, 
<a href="/cdn-cgi/l/email-protection#703b151c1c095e3c5e3d19041318151c1c41465e1319063005035e1e1106095e1d191c"><span class="__cf_email__" data-cfemail="d69db3babaaff89af89bbfa2b5beb3babae7e0f8b5bfa096a3a5f8b8b7a0aff8bbbfba">[email&#160;protected]</span></a>.
    <bullet> Naval Information Warfare Centers:
    [cir] Naval Information Warfare Center Atlantic: Ms. Alissa Lopez, 
843-218-3871, <a href="/cdn-cgi/l/email-protection#b6f7dadfc5c5d798db98dad9c6d3cc8298d5dfc0f6c3c598d8d7c0cf98dbdfda"><span class="__cf_email__" data-cfemail="06476a6f757567286b286a6976637c3228656f70467375286867707f286b6f6a">[email&#160;protected]</span></a>.
    [cir] Naval Information Warfare Center Pacific: Ms. Sharmeka 
Speights, 619-553-6282, <a href="/cdn-cgi/l/email-protection#83d0ebe2f1eee6e8e2adeeadf0f3e6eae4ebf7f0ade0eaf5c3f6f0adede2f5faadeeeaef"><span class="__cf_email__" data-cfemail="b9ead1d8cbd4dcd2d897d497cac9dcd0ded1cdca97dad0cff9ccca97d7d8cfc097d4d0d5">[email&#160;protected]</span></a>.
    <bullet> Naval Medical Research Center: Dr. Jill Phan, 301-319-
7645, <a href="/cdn-cgi/l/email-protection#5b113237377518750b333a357538322d1b363a323775363237"><span class="__cf_email__" data-cfemail="115b787d7d3f523f4179707f3f727867517c70787d3f7c787d">[email&#160;protected]</span></a>.
    <bullet> Naval Research Laboratory: Ms. Jennifer Hartman, 771-216-
7567, <a href="/cdn-cgi/l/email-protection#fd97989393949b988fd391d3959c8f89909c93c9d39e948bbd888ed3939c8b84d3909491"><span class="__cf_email__" data-cfemail="6309060d0d0a0506114d0f4d0b0211170e020d574d000a152316104d0d02151a4d0e0a0f">[email&#160;protected]</span></a>.
    <bullet> Naval Sea Systems Command Warfare Centers: Ms. Emily 
Grauwiler, 301-312-1185, <a href="/cdn-cgi/l/email-protection#c9aca4a0a5b0e7bbe7aebba8bcbea0a5acbbe7aaa0bf89bcbae7a7a8bfb0e7a4a0a5"><span class="__cf_email__" data-cfemail="88ede5e1e4f1a6faa6effae9fdffe1e4edfaa6ebe1fec8fdfba6e6e9fef1a6e5e1e4">[email&#160;protected]</span></a>.
    <bullet> Office of Naval Research: Mr. Damien Raphael, 703-696-
0383, <a href="/cdn-cgi/l/email-protection#b7c2c5dbded9c499d399c5d6c7dfd6d2db99d4dec1f7c2c499d9d6c1ce99dadedb"><span class="__cf_email__" data-cfemail="deabacb2b7b0adf0baf0acbfaeb6bfbbb2f0bdb7a89eabadf0b0bfa8a7f0b3b7b2">[email&#160;protected]</span></a>.
    Marine Corps:
    <bullet> Marine Corp Tactical Systems Support Activity: Ms. Lissa 
Henriksen, 760-587-6893, <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="4e22273d3d2f60222f2221202a2b0e3b3d232d60232722">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

1. Background

    Through the USD(R&E), the Secretary of Defense exercises the 
authorities granted to the Office of Personnel Management under title 5 
of United States Code (U.S.C.) section 4703 to conduct personnel 
demonstration projects at DoD laboratories designated as STRLs. All 
STRLs authorized pursuant to 10 U.S.C. 4121(a) and (b) may use the 
provisions described in this FRN. STRLs implementing these 
flexibilities must have an approved personnel demonstration project 
plan published in an FRN. Each STRL will establish internal operating 
procedures (IOPs) as appropriate.
    The 24 current STRLs are:

<bullet> Defense Health Agency Research and Development
<bullet> Air Force Research Laboratory
<bullet> Joint Warfare Analysis Center
<bullet> Transformation and Training Command
<bullet> Army Research Institute for the Behavioral and Social Sciences
<bullet> Combat Capabilities Development Command Armaments Center
<bullet> Combat Capabilities Development Command Army Research 
Laboratory
<bullet> Combat Capabilities Development Command Aviation and Missile 
Center
<bullet> Combat Capabilities Development Command Chemical Biological 
Center
<bullet> Combat Capabilities Development Command--Command, Control, 
Communications, Computers, Cyber, Intelligence, Surveillance, and 
Reconnaissance Center
<bullet> Combat Capabilities Development Command Ground Vehicle Systems 
Center
<bullet> Combat Capabilities Development Command Soldier Center
<bullet> Communications--Electronics Command Software Engineering 
Center
<bullet> Engineer Research and Development Center
<bullet> Medical Research and Development Command
<bullet> Technical Center, U.S. Army Space and Missile Defense Command
<bullet> Marine Corp Tactical Systems Support Activity
<bullet> Naval Air Systems Command Warfare Centers
<bullet> Naval Facilities Engineering Command Engineering and 
Expeditionary Warfare Center
<bullet> Naval Information Warfare Centers, Atlantic and Pacific
<bullet> Naval Medical Research Center
<bullet> Naval Research Laboratory
<bullet> Naval Sea Systems Command Warfare Centers
<bullet> Office of Naval Research

2. Overview

I. Introduction

A. Purpose
    This FRN grants a new authority to establish SBTM positions, above 
the GS-15 level, for STRL senior business administration, operations, 
and technology functions that support and enable the laboratories' 
research and development missions. A strong business and operations 
support framework and staff are essential to ensuring the STRLs are 
prepared and able to advance military technology and capability in 
accordance with the National Defense Strategy.
    The SBTM category encompasses positions that would exceed the GS-15 
classification criteria of the General Schedule and contain 
characteristics of SES and Senior Leader (SL).
    The SL classification designation would not be appropriate because 
SBTM positions may direct the work of an organizational unit; be held 
accountable for the success of one or more specific programs; monitor 
the progress toward organizational goals and objectives and 
periodically evaluate and make appropriate adjustments to such goals; 
supervise the work of employees other than personal assistants; or 
otherwise exercise important policy-development and implementation, or 
other executive level functions. SES classification designation would 
also not be appropriate because SBTMs do not exercise the full scope of 
managerial authority and impact required of SES positions. The SBTMs 
establish a separate pay band level or career track. This notice 
implements the SBTM authority.
B. Required Waivers to Law and Regulation
    Waivers and adaptations of certain 5 U.S.C. and title 5, Code of 
Federal Regulations (CFR) provisions are required only to the extent 
that these statutory and regulatory provisions limit or are 
inconsistent with the actions authorized under this demonstration 
project.
    Appendix A lists waivers needed to enact authorities described in 
this FRN. Nothing in this plan is intended to preclude the 
demonstration project from adopting or incorporating any law or 
regulation enacted, adopted, or amended after the effective date of 
this FRN.
C. Expected Benefits
    The SBTM authority is expected to:
    (1) Allow proper classification of positions that are engaged in 
operationalizing laboratory management functions, recognizing the 
exceptionally high level of expertise required to oversee enterprise-
wide business and technical operations, such as financial management, 
information technology and information assurance, contract

[[Page 987]]

management, facilities and infrastructure management, and human capital 
management.
    (2) Attract, retain, and appropriately compensate highly qualified 
business and technology professionals with significant experience and 
expertise managing the supporting business elements of highly complex 
and technology-focused organizations.
    (3) Provide the opportunity for career development and expand the 
pool of experienced, prominent business and technical candidates 
meeting the levels of proficiency and leadership essential for enabling 
the operation of world-class DoD laboratories.

II. Personnel System Changes

    All current STRL demonstration project plans are hereby amended to 
add the following:
A. Description and Implementation of SBTM Positions
1. Authorized Positions
    The number of authorized SBTM positions in each STRL shall not 
exceed one percent of the number of civilian and military positions 
employed at such laboratory, inclusive of positions both within and 
outside the STRL's personnel demonstration project, which are filled as 
of the close of the preceding fiscal year. If one percent of authorized 
positions does not equate to a whole number, the STRL shall round down 
to the next lower number; however, each STRL shall be authorized at 
least one SBTM position regardless of the number of positions employed 
at such laboratory. Though the authorized number of SBTM positions may 
increase or decrease as the overall civilian and military workforce 
increases or decreases, no SBTM employee will have their classification 
as a SBTM changed or their pay reduced, because the size of the STRL's 
civilian and military workforce has decreased. In such circumstances, 
an STRL may temporarily exceed its new SBTM authorized number until 
attrition occurs.
2. Position Classification
(a) Position Requirements
    At a minimum, all SBTM positions require senior manager up to 
executive level knowledge, skills, and abilities in competencies 
related to STRL business and operations of highly complex technical 
organizations or business units. SBTMs have a crucial role in driving 
strategic direction, supporting research and development in defense 
planning, ensuring operational excellence, and fostering a culture of 
integrity and innovation to achieve sustainable success. Incumbents 
will typically possess extensive knowledge and experience in one or 
more business or technical requirements below or another area 
determined by the STRL director:
    <bullet> Implementing and managing major policies and programs and 
advising senior officials on programs such as human capital, 
contracting, financial management, operations, facility management, or 
environmental policy and their impact on research programs.
    <bullet> Managing defense acquisition policy and familiarity with 
policies concerning contracting for services.
    <bullet> Managing information technology, including policy 
formulation and technical expertise across all aspects of information 
management at the STRL, with a special focus on creating visionary 
plans for future mission and business information systems.
    <bullet> Managing defense cyber competencies that support science 
and technology initiatives to contribute to the development of cyber 
resilient transformation and readiness technologies.
    Examples of other requirements may include strategic and 
operational leadership, configuration management, quality assurance, 
stakeholder engagement, laboratory governance, leadership development, 
strategic partnership, regulatory compliance, crisis management, and 
innovation and adaption.
    SBTMs typically report to an SES or an SES equivalent-level 
position. Since all SBTM positions will typically be administrative 
supervisors, they may be eligible for a supervisory pay differential at 
the discretion of the STRL director.
(b) Pay Bands/Career Track
    This FRN authorizes STRLs to either establish a separate or modify 
an existing pay band or career track level(s) to accommodate the SBTM 
category. Specific details regarding SBTM pay band or career track 
levels will be included in STRL IOPs.
3. Designated Classification Officials for SBTM Positions
    STRL directors, or their designees, are designated as the 
classification officials for SBTM positions. Each STRL's IOP will 
provide specific details on each STRL's classification process, 
control, and management of these positions.
4. Staffing and Recruitment
    (a) Positions may be filled on a temporary, flexible term, or 
permanent basis utilizing appropriate internal or external competitive 
recruitment procedures, direct hire authority, or through accretion-of-
duties promotions. Positions may also be filled temporarily using 
noncompetitive procedures (e.g., detail and temporary promotions).
    (b) In addition to permanent appointments, the following 
appointment types may be used:
(1) Flexible-Length and Renewable Term Appointments
    This appointment authority may be used to fill SBTM positions for a 
period of more than one year but not more than five years. The flexible 
term appointment may be made for a period up to five years, and the 
STRL director may extend the appointment in up to five-year increments. 
Prior to extending a term appointment, management will determine if the 
work or services continue to be temporary in nature, or if they should 
be made permanent. Candidates selected from outside the Federal 
government may be hired using the flexible term appointment authority 
and may be eligible for extension or conversion to career or career-
conditional appointment if services are deemed permanent. To be 
converted, the employee must: (1) have been notified in writing at the 
time of the initial appointment of the possibility for conversion to a 
permanent SBTM position at a later date; (2) served a minimum of one 
year of continuous service; and (3) have at least a fully successful or 
equivalent SBTM performance rating applicable to the STRLs 
demonstration project. Additionally, to be eligible for conversion, 
when positions being filled using the flexible term appointment 
authority are announced, whether via competitive or merit promotion 
procedures, the vacancy announcement must contain a statement notifying 
applicants that the position may be eligible for extension or 
conversion to a permanent appointment. The probationary or trial period 
specified in each STRL's FRN in Appendix B will apply to individuals 
appointed under the Flexible Term Appointment. Personnel appointed 
under the Flexible-Length and Renewable Term authority described in 
this section shall be provided with benefits comparable to those 
provided to status or permanent employees at the STRL concerned, 
including professional development opportunities, eligibility for all 
awards programs, and designation as ``status applicants'' for the 
purposes of eligibility for positions in the Federal service.

[[Page 988]]

(2) Flexible Temporary Promotions
    STRLs may use flexible temporary promotions to SBTM positions for 
not more than five years, with the ability to extend in five-year 
increments for candidates who are current Federal employees. Prior to 
extending a temporary promotion, management will determine if the work 
or services continue to be temporary in nature or should be made 
permanent. If not extended or made permanent, the employee will return 
to a position for which they are qualified that is the same grade as 
previously held before the assignment. Upon termination of temporary 
promotion, pay will be set in accordance with the STRLs' IOPs. 
Candidates may be eligible for conversion to a permanent SBTM position 
if the position requirements are deemed permanent by the STRL director. 
To be converted, the employee must: (1) have been notified in writing 
at the time of the initial action of the possibility for conversion to 
permanent SBTM position at a later date; (2) served a minimum of one 
year of continuous service in the temporary assignment; and (3) have at 
least a fully successful or equivalent SBTM performance rating 
applicable to the STRLs demonstration project.
    (c) STRL directors have the discretion to select the recruitment 
and staffing method most appropriate based on the specialized position 
requirements and available candidate pool. Each STRL will further 
describe recruitment and staffing methodologies in their respective 
IOPs.
    STRLs must establish recruitment and staffing methodologies that 
include:
    (1) An internal process that incorporates an impartial, rigorous, 
and demanding assessment of candidates to evaluate the breadth of their 
expertise;
    (2) an external recruitment process which incorporates an 
impartial, rigorous, and demanding assessment of candidates to evaluate 
the breadth of their expertise; or
    (3) creation of panels to assist in filling positions or other 
comparable recruitment or staffing mechanisms.
5. Basic Pay Range
    The minimum basic pay for SBTM positions is 115 percent of the 
minimum rate of basic pay for GS-15. Maximum SBTM basic pay with 
locality pay is limited to Executive Level III (EX-III), and maximum 
salary without locality pay may not exceed EX-IV.
6. Performance Management
    Each STRL will determine the appropriate performance or 
contribution management system, non-SES/SL/ST or SES/SL/ST program, to 
be used to evaluate an SBTM employee's performance or contribution. The 
selected method will be documented in each STRL's IOPs.
7. Pay Retention
    Pay retention may be provided to SBTM members under criteria 
established by each STRL if they are impacted by a reduction in force, 
work realignment, or other planned management action that would 
necessitate moving the incumbent to a position in a lower pay band 
within the STRL. Pay retention may also be provided under criteria 
established by each STRL when an SES/ST/SL employee is placed in a SBTM 
position as a result of a reduction in force or other management 
action. Grade retention is not authorized for SBTM positions.
8. SBTM Supervisory Pay Differential
    A supervisory pay differential may be used by STRL directors to 
provide an incentive to appropriately compensate SBTM personnel. This 
pay differential is a pay incentive that may range up to 5 percent of 
basic pay (excludes locality pay) for SBTM personnel. It is paid on a 
pay period basis and must be reviewed annually. This pay differential 
is not included as part of basic pay for any purpose. Criteria to be 
considered in determining the amount of the pay differential are:
    (a) needs of the organization;
    (b) budgetary constraints;
    (c) years and quality of related experience;
    (d) relevant training;
    (e) performance appraisals;
    (f) experience as a supervisor or manager;
    (g) organizational level of the position; and
    (h) impact on the organization.
    The pay differential may be terminated or reduced at the discretion 
of the STRL director based on legitimate business reasons; however, the 
pay differential must be terminated if the employee is removed from a 
position for which a pay differential is approved, regardless of cause. 
Each STRL will document in their IOPs the method used for determining 
payment, reduction, or discontinuation of the pay differential. All 
personnel actions involving a supervisory pay differential will require 
a statement signed by the employee acknowledging that the pay 
differential may be terminated or reduced at the discretion of the STRL 
director or his or her designee. The termination or reduction of the 
pay differential is not an adverse action and is not subject to appeal. 
The total pay (including locality pay) may not exceed the midpoint 
between the maximum rate of basic pay of EX-III and the maximum rate of 
basic pay of EX-II, (e.g., $213,000; (calculation is rounded up to the 
next thousand) for calendar year 2024). SBTM employees are subject to 
the aggregate limitation on pay pursuant to 5 U.S.C. 5307 and 5 CFR 
subpart 530.203.
9. SBTM Program Oversight
    The program shall be managed and administered by the STRL director 
or their designee in compliance with the provisions of this FRN and 
IOPs developed by each STRL.
10. Evaluation
    Procedures for evaluating this authority will be incorporated into 
the STRL personnel demonstration project evaluation process conducted 
by the STRLs in conjunction with the USD(R&E) Defense Research 
Enterprise Office.

Appendix A: Required Waivers to Laws and Regulations

[[Page 989]]



------------------------------------------------------------------------
                                             Title 5, Code of Federal
      Title 5, United States Code                  Regulations
------------------------------------------------------------------------
5 U.S.C. 3104--Employment of Specially   5 CFR part 316--Waived to the
 Qualified Scientific and Professional    extent necessary to allow
 Personnel. Waive to allow scientific     flexible term appointments as
 or professional positions for this       described in this Federal
 authority.                               Register Notice.
5 U.S.C. 3324--Appointments to           5 CFR part 330, section
 Positions Classified Above GS-15;        330.707(h): Exceptions to
 Waived in entirety.                      Interagency Career Transition
5 U.S.C. 3304 & 3304a--Waived to the      Assistance Plan (ICTAP)
 extent necessary to allow flexible       selection priority.--Waived to
 term appointments as described in this   the extent necessary to allow
 Federal Register Notice.                 conversion to permanent
5 U.S.C. 5301--Policy; 5 U.S.C. 5302(8)   positions without clearing
 and (9)--Definitions; 5 U.S.C. 5303--    ICTAP.
 Annual Adjustments to Pay Schedules; 5  5 CFR 335.102(f) Agency
 U.S.C. 5304--Locality-based              authority to promote, demote,
 Comparability Payments; and 5 U.S.C.     or reassign--Waived to the
 5306--Pay Fixed by Administrative        extent necessary to allow
 Action. Waived to the extent necessary   temporary promotions as
 to allow SBTM employees to be treated    described in this Federal
 as GS employees and basic rates of pay   Register Notice.
 under the demonstration project to be   5 CFR 359.705--Waived to allow
 treated as scheduled rates of basic      demonstration project rules
 pay and to permit SBTM pay not to        governing pay retention to
 exceed EX-IV and locality adjusted       apply to a former SES placed
 SBTM rates not to exceed EX--III.        on an SBTM position.
5 U.S.C. 5363--Waived to the extent      5 CFR part 531, subpart F
 necessary to allow SBTMs to receive      Locality-based Comparability
 pay retention as described in this       Payments.--Waived to the
 Federal Register Notice.                 extent necessary to allow SBTM
5 U.S.C. 5755--Waived to the extent       employees to be treated as GS
 necessary to allow SBTMs to receive      employees and basic rates of
 supervisory pay differentials as         pay under the SBTM to be
 described in this Federal Register       treated as scheduled annual
 Notice.                                  rates of pay.
                                         5 CFR 536.306(a)--Waived to the
                                          extent necessary to allow
                                          SBTMs to receive pay retention
                                          as described in this Federal
                                          Register Notice.
                                         5 CFR part 575, subpart D--
                                          Waived to the extent necessary
                                          to allow SBTMs to receive
                                          supervisory pay differentials
                                          as described in this Federal
                                          Register Notice.
------------------------------------------------------------------------

Appendix B: Authorized STRLs and Federal Register Notices

------------------------------------------------------------------------
                  STRL                       Federal Register notice
------------------------------------------------------------------------
Air Force Research Laboratory..........  61 FR 60400 amended by 75 FR
                                          53076.
Joint Warfare Analysis Center..........  85 FR 29414.
Transformation and Training Command....  89 FR 13548.
Army Research Institute for Behavioral   85 FR 76038.
 and Social Sciences.
Combat Capabilities Development Command  76 FR 3744.
 Armaments Center.
Combat Capabilities Development Command  63 FR 10680.
 Army Research Laboratory.
Combat Capabilities Development Command  62 FR 34906 and 62 FR 34876
 Aviation and Missile Center.             amended by 65 FR 53142
                                          (Aviation Research,
                                          Development, and Engineering
                                          Center and Aviation and
                                          Missile Research, Development
                                          and Engineering Center
                                          merged).
Combat Capabilities Development Command  74 FR 68936.
 Chemical Biological Center.
Combat Capabilities Development          66 FR 54872.
 Command--Command, Control,
 Communications, Cyber, Intelligence,
 Surveillance, and Reconnaissance
 Center.
Combat Capabilities Development Command  76 FR 12508.
 Ground Vehicle Systems Center.
Combat Capabilities Development Command  74 FR 68448.
 Soldier Center.
Engineer Research and Development        63 FR 14580 amended by 65 FR
 Center.                                  32135.
Medical Research and Development         63 FR 10440.
 Command.
Technical Center, US Army Space and      85 FR 3339.
 Missile Defense Command.
Naval Air Systems Command Warfare        76 FR 8530.
 Centers.
Naval Facilities Engineering Command     86 FR 14084.
 Engineering and Expeditionary Warfare
 Center.
Naval Information Warfare Centers,       76 FR 1924.
 Atlantic and Pacific.
Naval Research Laboratory..............  64 FR 33970.
Naval Sea Systems Command Warfare        62 FR 64050.
 Centers.
Office of Naval Research...............  75 FR 77380.
------------------------------------------------------------------------



[[Page 990]]

    Dated: January 7, 2026.
Stephanie J. Bost,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2026-00277 Filed 1-8-26; 8:45 am]
BILLING CODE 6001-FR-P


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